The Express.
London, England, 1847-01-05 00:00:00

MONEY MARKET & CITY INTELLIGENCE,.

The amount of the loan operation concerted be-
tween the Banks of England and France, is understood to
be in the whole for eighty millions of francs, or about
3,200,0001., as stated in the Daily Sew this morn-
ing. The amount in the Times is, that "800,0001.,
(40,000,000 francs)" is to be advanced for three months,
In this reduction of French into English values,
there is a clear error, either in one set of figures or the other.
The equivalent of 40 millions of francs in sterling would
be in round numbers 1,600,1:001.; and the equivalent
of 800,0001. sterling would, on the other band, be 20
millions of francs only. Supposing the first operation
to be for 40 millions of francs, we have one-half
of the whole loan put into movement at once. But
we arc inclined to think the operation is to commence, in the
first instance, with the lesser sum, which would represent
one-fourth of the whole loan, in order cautiously to test how
the money and bill market, on both sides of the channel,
may be effected by the operation, and to avoid any un-
necessary disturbance of, or interference with, the
course of values and financial transactions for mei,

cantile account. The discrepancy between the statements
of the two morning papers referred to, is probably more ap-
parent than real, for the Times may be, indeed evidently is,
treating of the first portion, or instalment, of the loan to be
dealt with, the remainder of the loan, to the amount given
in the Daily News, to be called for, or drawn against, as wanted
by a series of periodical operations at convenient seasons.
It will be found that such well tho mode of action on the
former occasion of the advances made by the Bank of France
to the Bank of England. The full amount of the loan agreed
for was not drawn against at once by the latter through its
agents, but at successive intervals, as resources were wanted,
and as money markets here, at Paris, and in other countries,
were in a favourable position for operating upon.
The coniparatively small sum of 20 millions of francs
(800,0001.), supposing that were the entire sum to pus, could
scarcely be of essential service in covering the present ex-
posed state of the exchequer of the Paris Bank, with, accord-
ing to the last accounts, no more than 65 millions of francs
of specie in hand, instead of the 150 to 200 millions usually
held, and a drain still in progress besides.
The factor so small a balance of coin and bullimi as sixty-flu
miOlions is of itself a provocation to a further drain, from the
want of eon fi dence,or unasi nese, which it is calculated to excite
in the public mind. The bank cannot, moreover, restrict its
discounts to any material extent withont inflicting great
damage upon the commercial and trading interests of Paris,
and even of France, if not absolutely creating a panic, which
at the outset would result iu throwing back all its
outstanding note circulation upon it, and so carry-
ing off all its remaining stock of silver and
gold. A restriction of discounts would moreover end
in disabling • large portion of its small customers (the
petit commerce) from meeting their engagements, and thus
a masa of discounted bill values would be returned dis-
honoured into its bill-box. For, unlike the Bank here,
which deals with commercial paper of large calibre only, the
Bank of France admits paper, we believe (writing froin
me mory) as low in amount as 200 fr. (80 to discount, which is
aeounted to be a vast secommodieion to the retail trade of
Paris. There would seem, therefore, to be no reason for
doubting that the loan, in its totality, is for the larger
amount of 80 millions of franca, so as to place the Bank in a
position to face all the inconveniences, if net perils, of its
present position, without deranging the usual course of its
Matinee*' and thus reassuring that public confidence which
its weakness may hese somewhat impaired.
Half-past Two.—The funds were heavy this morning, and
so continue. Consols opened at 931 to I, but subsequently
turaed sellers at 1. They have since been alternately buy-
ers and sellers at that rate, and are now quoted exactly at
931, neither decided sellers nor buyers. Exchequer Bills are
a shilling higher, at Bs. to 12s. premium.
Mexican, which yesterday had improved to 251 to I, on
the report of the appruching payment of a dividend, either
in whole or in part, receded to-day, on its non-c mfirmatien,
to 211 to 51. Portu3uese hero advanced to .33 to 40, on
fuller details of the news of Saldanha's victory, fir,t made