The Express.
London, England, 1865-09-25 00:00:00

JOUR BROOD/N.

GI:NAL GOLD ORLIN MANIIPAOTORY,
ILENZIZITA-BTILUT. 03VINT-GAZDZA.

JOHN BROGDKWI3 GOLD CHAINS.

JOHN BROGDEWS GOLD GU ARD MULES.

JOll2l lIROGDEN'SGOLD ALBERT CRAIN&

JORNBROGIDENSGOLDBROOCHOHAUNS.

LONDON must him • GENTLibiLN'S
SOPPEit and MIMIC SOCOL—"IVANS." attar Allred
Bier 'a Oceania.

Witt Orpreins.

TO COIII.IO3PONDIZIIS.
otvortleamonmutt be ta Intended tor The Rowan • London
at
, at the Moo, 10, Boavotbiabrost, by Two
=lc o slat dy of publication.

PRINCENNS.
!O IV TIL NIART4ffILINOS AND ITDDLI6TRININE.
.-ARRAII NA POCEUL Yaws. D. Bo Naoaa J. Smuglwo,
IL VaadisbotT, D. Mar. D. Marty,Ea% : rs. D.
lIGNEINiaIt rad Mis Cliver.—And AN APOLOGY.

BRITANNIA.
Too Immo% JEANNIE AND ETTIt DEANS. MI S.
Mhos aad Mao E. Masarthy —The Youthful Atttlataa—Dou
rattea—tad TR6 RESCIM OE OB.PRANti.

NIGH WATIII AT LONDON-311DM
TM DAT Moen $. et. 49m.....A1toraeas, 61. bal.
TOMOLIOIII lloeulag, 6b. Tl6a.....Altaboas. laz. 4066.

LONDON. MONDAY. SEPTEMBER 25.

~;

Avrwouon our receipts of foreign gold con-
tinue on an increasing scale, and hardly a day
passes without the announcement that a further
sum has been taken to the Bank, the bullion at
that establishment shows but a moderate addition.
Last week the total known to have been sent in

was 262,0001., while by the account published on
Friday the metallic stock had in fact augmented by
not more than 64,2631. Thus while the Bank is
receiving bullion with one hand it is paying it
away with the other, the withdrawals having
latterly predominated. In the week ending the
30th August the total stood at 14,489,6121,
in a fortnight it was reduced to 14,155,579/,
while a partial recovery has now taken place to
14,219,8421. It is unnecessary to repeat in detail
the causes of these changes, but it may be useful to
examine them in a broader point of view than is
offered by their mere temporary results.
A year of steady prosperity and of advancing
wealth has naturally both disposed and enabled

the nation to incur afar larger expenditure than
usual in the pursuit of pleasure. Seldom or never
has the City been _so comparatively deserted for

the time by men of business. But as each of these
on leaving town takes with him a more or less
considerable number of sovereigns, the drain
upon the bullion at the Bank has been
proportionably heavy. But for one or two
unlooked-for incidents it would in all proba-
bility have led to a rise in the rate of discount.
Fortunately, however, the stagnation in the &Meru
markets has diverted the large shipments
of Australian gold once more from India
to England, a change of which the full
effect has nevertheless yet to he felt. Secondly,
we have received moderate but steady sup-
plies from thej United States ; and lastly, there
being no demand for exportation, whatever has
been sent here has been retained. The present
state of affairs might easily have been reversed.
A foreign loan, purchases of silver for the
But, or a deficient harvest, would necessarily
have been followed by an export of gold
fully equal to our receipts from abroad. And
the withdrawals of sovereigns from the Bank would
then have told with full force. It would have
been of little use to point out—as, indeed, has
been done now—that the decline in the metallic
retarve could at the worst only be temporary,
every pound taken out being certain to come back
in the course of a few weeks. The mere fact that
there was &decline would be the only thing looked
to, the discount market would get tighter, the rate
of discount be raised, and commerce generally be
disturbed, simply because people chose to spend
rather more than usual in holiday•making.
This result adds one more illustration, if any
were needed, of the ill-working of our currency
system. The effect of an expenditure which the
country can very well afford is attended by exactly
the same consequences as an exceptional outlay to
meet a national loss. Some hundreds of thou-
sands of sovereigns are put into temporary
circulation, and the money market becomes as
tight as if they had been sent away altogether.
It is evident that in the ono case the pressure is
entirely artificial, but that does not make it the
less easy to bear. A trader receives no particular
consolation when he is told that if be experiences
a loss now, it arises solely from the effect of
the prosperity of the country. But the case
becomes still harder when it is really the
effect of the maintenance of a set of old-world
restrictions, as ill adapted for the working of
modern commerce as would be a return to protec-
tion. It is not quite clear that the two are not ini
some way or other mutually dependent. At all
events, it is a singular coincidence that the first sue-
pension, in 1847, of the Bank Act of 1844 fol-
lowed very closely upon the opening of the ports.
Leaving this point aside, however, it is undeniable
that regulations which suited our trade (though
this is at least doubtful) twenty years ago are
entirely out of date now.
It seems to be in some quarters a settled
canon that although laws may be improved,
modified, or altered to snit the changing
situation of the community, one exception
must be made. The Act regulating the internal
circulation of the country is to be considered as
fixed and infallible, notwithstanding that its in-
fallibility has been effectually disproved on two
occasions, and is likely to be again upset, if it
lasts long enough, on many more. Last year the
Act received some severe shocks, and got through
the crisis with considerable difficulty. Even in
ordinary times like the present some little con-
tingency is continually arising which effectually
shows how entirely unsuited the legislation of 1844
is for 1865. If commerce alters and increases,
the machinery of commerce must also be modified
to meet the new position of affairs.
The only class that benefits by the maintenance
of the present law is the banking interest. Capi-
talists profit, while the mercantile community in
general suffer. Of course when money is abun-
dant a permanent rise in the rate of interest is im-
possible, but it is easy to obtain increased charges
for discount on the occurrence of some unexpected
movement of bullion, although the effect it pro-
duce,' can only be temporary. In the early part of
the year the withdrawal of two or three hundred