The Press.
London, England, 1858-08-28 00:00:00

THE PRESS, AUGUST 28, IssB.

report. It is, if there he any change at all, a shade easier,
inasmuch as the rates, which then averaged two and a half
per cent., are now practically at not more than from two
and a quart-r to two end a half, although there have been
more bills in the market than for some time past. 'llia is
owing to the increasing magnitude of the supplies, or
perhaps it would be more correct to say to the increasing
desire on the part of the banks and other establishments
to employ their reserves in discounts, seeing that the
commercial paper now afloat represents a bona-file, safe,
and improving trade, and that merely speculative enter-
prizes meet with no countenance whatever from any class
of commercial men. Yesterday and to-day the applications
for discounts twain ialieatial a gradually increasing
number of transactions, but not sufficient to influence the
terms stated above.

The supplies in the market during the early part of the
week were not affected by the payment, on Monday, of the
instalment of twenty per cent. upon the issue of the residue
of the 8,000,0001. India Loan, nor by the fact that nearly
400,000/. are due to-morrow as calls upon one of the
lnilian railways. Indeed, with regard to the loan, a con•
siderable amount was fully paid up in anticipation, the dia.
count of three per cent. being an ample inducement to many
parties to part at once with their capital ; and with regard
to the railway call a portion of it has long since been paid
up from similar motives. In this way, at such a time as
the present, Indian euterprizes of a remunerative descrip-
tion command an amount of support that guarantees the
public against any interruption of the works from financial
impedimenta. The Company, too, are adequately supplied
with resources from the loan already paid up, indepen•
dently of the porti nis falling due, to meet the charges
upon them, whether arising from measures necessary to
prosecute further hostile operations or to liquidate arrears,
assuming that the war is, as we believe, practically at an
end. In the course of the present week an arrangement
has been made with the Bank of England whereby the
loan of 1,000,0001., made a year ago upon the security of
India Bonds, has been renewed for another year instead
of being paid off; and it has been renewed at the moderate
rate, for such a period, of three and a quarter per cent.
The resources of the Company are thereby increased pro
tanto ; and the Directors will hand over to their successors

a treasury amply furnished, and with a small aggregate of
liabilities considering the fearful crisis from which Liar is
just emerging.
It follows therefore, from present appearances, that,
beyond the calls now maturing, India is not likely to create
any further pressure upon the Money Market. The
demands upon it from this source having practically ceased,
are there any others, of an extraneous character, likely to
affect the value of capital ? We cannot foresee any, unless
Turkey again appears in the market; and in her case the
terms are sure to be hard and onerous. Assuming this
view to be correct, as it lifulariitiOnlibiy is at the present
moment, it is tolerably clear that the only remaining
means of finding employment for capital will be in the pro-
motion and extension of commerce, of electric telegraphs,
of steam navigation, and in other analogous means of in-
creasing oil: communications with the world, and opening
up markets for the consumption of our manufactures.
The demand for capital for such purposes cannot make
much immediate impression upon the supplies. It can
only come gradually. Capital, therefore, is not likely to be
increased in value for some time from these causes. But,
on the other hand, it must be rc collected that we are now
approaching a period of the year when special and inci-
dental circumstances create local inquiries for motley ; and
that within that period there are usually less additional
resources from dividend and other regular payments. The
tendency therefore in the next and preceding months
previously to Christmas will naturally be to somewhat
stiffer terms; and it is not at all improbable that before
November the liank may deem it expedient to add one-
half per cent. to the existing minimum. But meanwhile
not enough of employment can be found for money at
three per cent. ' • and there is a strong probability feat before
our next the Bank of France will have reduced its rate
from three and a half to three per cent.
Rather less than 80,1)001. in gold has arrived since our
last. But from the supplies received previously, princi-
pally from Australia, about 330,0001. have been sent into
the Bank. The exports have been under 4,0001. The
Bullion movements during the week have consequently
been unimportant. With regard to the supplies of gold
for some time to come, the prospects are as favourable as
they could well be. The Continental Exchanges have risen
to a point which renders it probable that we shall retain all
that we receive, although it is quite possible an exceptional
demand may be maintained from France, and for Austria
through France. Moderate amounts frequently arrive
from Russia, and the Persia, due to-morrow from New
York, is expected to bring a large amount. it was ex-
pected that a considerable proportion of the United States
Government Five per Cent. Loan of 2,000,0001. would have
been taken on English acconnt, in which case there would
have been an interruption of specie shipments. But it so
happened that the bidding* on English account were not
successful. Specie therefore must, in the present state of
exchanges, continue to be shipped. Ere long we shall feel
the influence of the supplies from Frazer River. Large
supplies are now overdue from Australia. At least 1100,0001.
is en route and now due. we are in daily expecta-
tion of hearing of the arrival of the Australian mail steamer
at Suez, with a large remittance, and with advice:: of
further consignments by sailing vessels. Under all these
circumstances it is only to be repeated !fist the stock in the
Bank will probably be considerably enlarged during the
ensuing mouth of September.
The members of the Stock Exchange are slowly return.
ing to business, but hitherto they have not shown much
spirit in contracting engagements. The Funds, however,
notwithstanding the limited number of transactions, have
improved, although the highest prices of the week were not
quite maintained to-day. Railway Shares have, with here and
there an exception, obtained a decided rise, which appears at
present to be safely established. The improvement c,oin•