The Express.
London, England, 1865-10-16 00:00:00

IMMO, MONDAY EVENING, OCTOBER 16, 1865.

TIN

We ass assured that, supposing mar extra.--
wore to take place in the present limit of the Bank
note issue, it would defeat Dealt simply be-
anies further extensioes would be certain to be
demsaded, and thus the movement would go on
until the circulation were hopelessly depreciated.
It is extraordinary that any argument of this sort
should be seriously put forth. In the fiat place,
the entire distinction between legal tender notes
issued at • forced currency and of notes which are
actually in demand by the nation at large, and
equally valued with gold itself, is entirely over
looked. A Government compelling a trader or
oontractor to take payment in paper pub; a
certain amount of so-celled money in per-
manent circulation, and if the process be
repeated long enough, of course causes the
note to be seriously, and in the majority of in-
stances permanently, depreciated. As regerds the
issue by the Bank, the nese is totally altered.
Every note lent out must be returned ; it pausal
into temporary circulation only, and when once the
need that has caused its issue goes by, it ammo-
rily comes back to the Bank. To revert to the
crisis of 1857, the harrowed number of notes issued
served the purpose for the time of allaying the
panic, but ultimately, when the end was served, I
were readily withdrawn from circulation. The I
case would be similar now, supposing that the
Bank bad the discretionary power of in-11
creasing its issues. After a few months
the notes would come back, their use in
the meantime having enabled our merchants to
sake large profits. If they did not come beck
it would simply prove that both the business and
the profits were continuing. Let trade become
dull, then, instead of renewing loans or dis-
lanais, the surplus lame of notes would be rapidly
paid in. In these points the experience of the
Bank of France is decisive. With uniformly a
lower rate of discount than in England, it is able
to give assistance to commerce which is impossible
here, and the currency is no more depreciated
one country than the other. Even after the es-1
oeptionally heavy drain upon the resources of the
Bank of France during the put week, its reserve
of bullion against notes is little out of proportion
with that of the Bank of England—the totals being
in the former case 17,500,0001. against
35,740,0001., and in the latter 12,736,3461.
against 22,861,769!.
There is one point in the present pressure to
which less attention has been paid than it deserved,
and that is, the certainty that the recent demand
for money is not attributable to • desire for over
accommodation owing to alarm, but arises solely
from the legitimate requirements of trade. That
the latter is really the canoe is proved by the compa-
ratively stationary position of the " other deposits."
If money has been taken from the Bank by way
of precaution only, it almost invariably returns in
the shape of increased balances from bankers.
There is no doubt that the increased circulation
hes been, and is really needed, and that any at-
tempt to atop the current must be futile for good
and certain to cause harm. It has been urged I
with truth that no Government can create capital; 1
but it is not additional capital that is in question
now, but improved machinery to use existing
capital to the best advantage. In monetary mat-
ters our policy very much resembles that of • pro-
tectionist Government, which in time of famine
keeps the porta closed in order that the high price
of oorn may check consumption.

LATNST INTELLIGENCJM

THE OVERLAND MAIL.

This morning we have received advioes in antici-
pation of the overland maiL The dates are Bom-
bay, Sept. 15 ; Hong Kong, Aug. 18 ; Sydney,
Aug. 25 ; Melbourne, Aug. 26 [by telegraph] ; Ade-
laide, Aug. 26 ; and Auckland, Aug. 18.
INDIA.
His Excellency the Governor, after a short visit
to Bombay to meet the Hon. Mr. Maine, member
of the Legislative Council of India, on his arrival
from England, returned to Poona on the 14th ult.
Another of the leaders of the Indian mutiny,
Rajah Drig Bejai Sing, has been tried in Cide, and
sentenced to transportation for life.
The peace negotiations with the Bhootan envoys
have been unsuccessful, and there is every prospect
of hostilities being resumed when the cold weather
sets in.
Mr. Janardhun Wassoodewjee, one of the acting
judges of the Bombay Court of Small Causes, as
been appointed a Judge of the High Court of
Bombay, as successor to the late Mr. Justice

Forbes.
Distressing accounts of the sufferings caused by
the famine at Aden have been received at Bombay ;
and the arrival of the vessels laden with grain was
anxiously looked for at the former place.
An official inquiry into the conduct of Mr. Vardy,
the pilot in charge of the coolie emigrant ship Eagle
Speed, which was wrecked, and upwards of 300
coolies drowned, shortly after leaving the Mutlak
on the 20th ult., has resulted in his being dismissed
the service.
Obituary.—Assistant-Surgeon Montague J. S.
Perreau ; Lieut. Francis J. Hnasard, 94th Regi-
ment. —_

CHINA AND JAPAN.
There is little or no news of interest from China.
The China Mai/ states that Sir Harry Parkes Chime
commenced diplomatic operations in Japan with his
usual firmness. On arriving in Yokohama he sur-
veyed the state of affairs, and being resolved that
all the treaty privileges should be observed, and the
interests as well as the dignity of Britain cared for,
he soon intimated his intention of re-establishing
the English Legation at Yeddo, a poet which has
always proved one of hononr, because of danger.
There was some opposition, but the thing was in-
sisted upon and carried.
So far (says the Mail) this Is what is sometimes
called a stop in the right direction ; dangerous, indeed far
UN immediate 'Mars, bet, we venture to think, still more
dangerous to the Japanese rulers, ehosH any attempt at
assassination or incendiarion again recur. The Japanese
will spend a little time in " taking the measure" of the new
minister ; and on the results of their inspection will de-
peed the next move on the board. Fortunately, we have a
fares in the neighbourhood, and the Japanese know it right
well. We bear that the Royal Marines wart to have left, oa
the 24th instant, for England. Two companies of the 2nd
battalion 11th Regiment will premed very shortly to
Japan in her Majesty's ship Adventure, to reinforce the
garrison in Yokohama. So much for the prospective se.
rarity of life and property is Japan. There was no other
way than this, save abandon/mg the coantry altogether, or
living like the Dutch at Deeima. To the letter alternative
a nation like England could not listen for a moment.
Altogether, we expect to see rapid improvement in oar
commercial and istamatiooal relations with Japan.