The Express.
London, England, 1853-08-30 00:00:00

TO CORRESPONDENTS.

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HIGH WAIER AT LONDON BRIDOR.
T,llO DAT —4lorrani. Ibb. Ntm.. Afterroon. iI b. Pm.
T*.roasow—llormag. 41s. Om.. Afteroms. Oa. tot.

LONDON, TUESDAY, AUGUST 30.

AN attempt has been made to explain away the !
important fact, mentioned in our journal on the :20th
inst., that a rise in the rate of interest had taken,
place in New York as in London, in the face of a i
large increase in the supply of gold. Some men
entertain a prejudiced aversion to believe that the
rate of interest can rise as the quantity of gold in-
creases, and they are continually telling the public
that the arrival of more gold will make the money
market easy, or that the delay in the expected arrival
of some is the cause of a want of accommodation in
Lombard-street. In the days of protection the money
market was closely dependent on the import and
export of gold. Then the limited quantity of gold
we could command was removed in a hurry, as an
unpropitious season made food scarce, and made a
large importation of corn necessary; or was in an
equal hurry restored as • reduction of price caused
an extra export. of our manufactures, and restored
the equilibrium in the diffusion of the precious metals.
The increase or diminution in the stock of gold then
was a sure indication of an abundance or scarcity
of capital, but now that gold is regularly im.
ported and exported, to the extent of more
than 2,000,004)1. a month, it has ceased to be, any
more than the importation or exportation of coffee
or wool, an indication of the want or supply of
capital. We must, therefore, show by this example
of the money market of New York which has been
questioned, that the increase of gold such as is now
taking place, being far less a change in the distri-
bution of an existing stock of the precious metals
than a great addition to the stock already in exist-
ence, is a better explanation of the rise of the rate of
interest there than either a new law for the banks
of New York, or an accumulation of gold in the
vaults of the Treasury.
It is admitted that the late arrivals from the States
to the 10th inst. brought information of a sudden
rise in the rate of discount, even on the best com-
mercial paper, and such a decline in the state of
exchange on England as to check the remittance of
specie, accompanied by a sudden fall of from 5 to 15
per cent. in all except the best established securities.
And these important effects are attributed to a recent
law of the State of New York, which compels the
banks to publish their accounts weekly instead of
monthly, and to a sum of 4,500,000!. or 5,000,0001.
having been accumulated in the public Treasury.
Such an argument entirely ignores the effect
which an extensive trade with California, and Aur
trulia, and with Europe generally, has had in in-
creasing the demand for capital in New York.
and cannot be reconciled with facts. The New
York banks have long been subjected to a law re-
quiring them to publish their accounts quarterly; and
within the last nine or twelve mouths there has been
no such disturbance in the money market at the re-
turn of the quarterly publication of their accounts.
If such a publication, therefore, or the preparations
for it, made by the banks, could disturb the money
market, the disturbance should have been as conspi-
cuous in the beginning of June, the date of the
previous return, and in the beginning of March, as in
the beginning of August. The Treasury of the United
States has been gradually accumulating the money
in its vaults; it is the mere excess of the receipts of
the customs duties over the expenditure, which has
only increased as the trade has extended, and its
effects on the money market far from being sudden
in the beginning of August should have been gradual
week after week through many previous months, and
should have been beneficial rather than otherwise, by
interposing a slow and gradual check according to
the theory of oar opponents on the extension of
undue speculation. But we are not obliged to rely
exclusively on general reasoning to show the error
of ascribing the recent derangement in the New York
money market to a new law concerning the banks
and to the accumulation of two or three additional
millions of pounds in the Treasury of the States.
Every person who reads the City articles of our own
journal, or consults any American papers, must be
well aware that the trade of New York and of the
whole United States has been extended in the pre-
sent year in a most unexampled manner. It has
been considerably greater than ever before known at
periods of the greatest unsound speculation. Both
the facts and the true theory of the present condition
of the New York money market are well explained
by the Sew York Courier and Inquirer of the 13th
instant :

The leading cause of the pressure (it reiterates) is the ex-
troordinnry demand for remittances to Europe, in payment
of foreign imported goods. This, we melt bear in mind,
cannot be remedied promptly. The iccrease of imports is
still going on us a forge ratio, and orders are out to the
same extent, which will cramp oar market for months to
tome. In support of this, it is only necessary to recur to
the statistics of importations for the first seven months of
18.52 and 18,53, at New York:
Importations at New York, from January to July, in-
clusive.
1862. 1853.
Dollars. Dollars.
Seven months 74.237,000 117,915,000
July alone
Exports for same months.

Goods. Ike.
Specie
43,994,000 48,384,000
When we add to this the fact that the amount of duties
collected at this port during the last fiscal year were
38,783,000 dole., against 28,910,000 dole. for the year pre-
vious, it will be seen that the pressure on the money market
is mainly for specie in payment of our foreign indebted-
ness, or for payment of bills on Europe in discharge of this

enormous debt. An increased debt of voirrr•ruiza siti•
Liov in seven months of 1853, as compered with the same
period of 1852, will, in dug, draw very largely, between
this and January next, upon the strong boxes of our city
and country banks.
The same journal had previously mentioned that
340,000 dole. had been paid in 000 day for Cue- WANTON OUTRAGES IN CLEHKENWELL.—The most
tome duties in New York, and 1,300,000 in one week. ionftecnisee:xcitement has been created in the extensive parish
wpmellpearly its vicinity, i7,7,:mguerenowf
.•
tloal/e
It had previously shown, too, that the importation amounti 07
in the other States in proportion had been as great destroyed within this fortnight ; the outrages are not con-
yfiandd
wt;sdeany pAareetientadrera
those into this port. Thus the duties paid in i; locality, a nbuttitapopfearlto e
ass Lstentefir
Philadelphia in the first six months of 1853 exceeded destroyed at St. John's Church ; and the gehurchwardens
the offence.
aTrewdairal trtteheoisalrltiies :to
those of 1832 by 805,000 dole., on a total of have
kcommitLest
2,410,000, or one-fourth. It had, in consequence, considerably damaged under ver7r:imrlrayr rcruurnswartances
i n I t
ni s acti p pox:odw thato r
stohme e
remarked that e overtrading prevails not onlymissilesote are propelled from an air
one city, but in all quarters of the country." Not !Tetanus the glass has been rmPgleyrpeu engine,rated unotinhavinn:
aufbcrukse t or stars, which would be the case if not impelled
the mere publication of the Bank's accounts, there-
fore, but a great increase of beelines, is the bottom I usedw `,:eacomwa violence.
Inlidiairruriterroturrolhetrh:lrastemmatierritlrs
Of the scarcity of money in New York, as in in consequence of small balls of such substance having
been found. Every endeavour has been made by the police
London. of the 0 division to discover the offenders i for it is consi-
The complaint made by some solemnly pretentious clued that there is more than one person engaged in these
writers amongst us is, that the limitations imposed by "refill proceeding''
the New York hanks on the accommodation they a
frievalduavfvaatilw•rmho.
iaThaLtEGlLittrerllcia—mLZdTeit2iiitterhowneeghkt
afford to the trading interest, in consequence of being himself that he wanted a hundred pounds. He walked to
obliged to submit their accounts to the public once a
wet.ceLecruc tteoletreapfhorawnadrdfdavteolitsivemresar tlitatweffecati
week, is the cause of the derangement of the money twelve o'clock. At six, when he was lionlng at his hotel, a
market there. For this theory it happens most un- gentle tap at the doer introduced a gentleman,d who bowed
fortunately that air banks have not curtailed their roattaeidlin's'eneravn Ltl,l'''' ho repli honour oefd;rd'' 1 .7ely ealled Lt.
accommodation. The p.:?er already quoted, which consequence of a message from our London correspondent
stated on the f+th that they hat: slightly limited their to leaves reallywittt yx:aurvtlesiiroutieltliume
rfort oziletlieunaidreder
of this
i
accommodation, corrected that statement on the 13th ' mare elloue age.—Lincolnshire Tinos.