The Press.
London, England, 1858-10-16 00:00:00

qincl 11:lariat anb (Sttg puttugence.

FRIDAY EVENING.
THE return of the Bank of England for the week
ending Wednesday last, the 13th inst., shows the
following changes compared with that for the week
preceding:—

Increase in Circulation .
Decrease in Public Deposits 9,084,552
Dimas.. in Other Deposits
Decrease in Uoverntnent Secuitios 322,202
Decrease in Other Securities
Decrease in Bullion
Decrease in Rest
Decrease in Reserve
Bullion in both Departments 19,496,991
Circulation, including Bank Post
Bills 22,028,392
The effect of the payment of the dividends, though
the process had only run one day, is shown by the
reduced amount of the Public Deposits, and the
addition to the " ether deposits." The payment of
the Bank dividends has aiso largely reduced the
Rest. Mainly in consequence of these payments
there is a large falling off in the Reserve, and a
trifling diminution in the Bullion; but, on the other
hand, it appears that although the Bank has received
considerable repayments, as shown by the " other
securities," it has been found necessary to effect
rather considerable sales of Stock. On the whole,
the return is not particularly satisfactory, especially
in the present state of the Continental Exchanges.
The monthly debtor and creditor account of the
Bank of France, made up to yesterday, was pub-
lished in the Moniteur of this morning. It is, gene-
rally, of a favourable character, inasmuch as it bears
unquestionable evidence of a revival of activity in
commerce and a return of general confidence. The
circulation has increased 1,800,530/., and it now
amounts to 27,619,6951., the whole of the increase
having been caused by loans and advances. The
discounts are 15,128,7031., being an increase of
344,158/. The Bullion has been reduced no less
than 1,775,142/., owing to the demand from Austria
and Germany, but the aggregate stock is still
21,975,0171., or 2,478,026/. more than in the Bank
of England on the evening of Wednesday last. There
is also a decrease in the private deposits, and the
public deposits have fallen off. In fact, the whole
return is indicative of a demand for money and of
increased commercial activity.
Notwithstanding the payment of the dividends,
which commenced on Wednesday, and the consequent
enlargement of the supplies of capital, the Bank
Directors have, as we anticipated, maintained their
minimum rate of discount at three per cent. At the
present moment money is a complete drug. In the
open market the best bills have been done as low as
two per cent ; and the highest terms are only about
two and a quarter. Yet the Bank, with a very large
reserve, and an enormous stock of bullion, and a
gradual decline in the amount of its discounts and
advances, adheres to a rate which, in the present
state of the market, is practically prohibitory•. This
policy has excited amazement in some quarters, and,
as may be expected, a good deal of disappointment
to many parties, who were preparing for the opening
of a period of speculative inflation. It is obvious,
however, that the course of the Directors is founded
upon sound principle ; and already events are par-
tially justifying their policy. With an enormously
increased abundance of capital, until, literally, the
banks and the discounters do not know what to do
with it, it is obvious that some warning or regulating
power is needed to prevent in time, or to retard, the
approach of the evil which all profess to dread.
This is the position of the Bank. While they affix a
certain value to money, and after all not an unnatural
value, it is certain that their policy will regulate the
transactions of most houses that are safe and steady ;
and it will require persons of th►s character to depart
from their reserve before any dangerous inflation
can occur. Then, have no circumstances occurred
even this very week to justify the refusal to reduce?
Certainly there have, and very important ones too.
The Continental E xchanges, in consequence of a