The Express.
London, England, 1853-09-02 00:00:00

TO CORIMSPONDENTS.

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meet be at the Wiese 10. Dearene-street, by Tito o'ttcak as the
day Cd imblisstate.

lIIGH WATBR AT LONDON BRIDGE.
TM, MT—Xenia& lb. % . Altmann, lb. 110.
Tuetanow —Yonne& tb. es Attersece, 2k. Um.

LONDON, FRIDAY, SEPTEMBER 2.

YESTERDAY the Bank of Engle:W-1Y Stated in our
City column—raised its rate to Four Per Cent., and day
by day monetary discussions become more and more in..
tt resting. If we now recur to the state 4.4 the money
market in New York, it is because that shaves in the
changes of the money market of Europe, aszd the
phenomena which occur there throw light on phvnc •
mena here. The journals there are careful N
republish all our bank returns, and to record with as
much minuteness as we record all the variations in

--.... ....--___
our money market. What affects us affects them,
and American securities follow at a certain distance
tho changes in European securities. The step taken
yesterday is the Bank Parlour will have its influence
across the Atlantic, as well u in Lombard-street.

They feel in America as we feel—if not quite
so intensely, and at secondhand, as it were, the
disturbances in trade and the depreciation in the
value of paper now, caused by the disputes
between Russia and Turkey. The harvests of En-

rope affect them, and they are looking with anxiety
almost equal to our own to the produce of the fields
.of Europe, as determinin3 the purchase and selling
ewer of Europe, the wages of its industry, and the
ma Doer in which the precious metals will be for the
ram lent diffused. Their markets sympathise with
ours • they obey the same impulses; and we can
warm ly comprehend all the movements of the money
market at home without knowing something of the
wawetaw Sits abroad.
New k 'ork papers of the 20th ult. refer to the dis-
puta, hat went Russia and Turkey u affecting
Amerman securities in our market, and as keeping
tb, price of them down in New York. At the same
time they m •atioe, we arc happy to say, a considera-
ble improve, ent in their money market. On the
18th alt., the r eport runs, "a better feeling prevailed
at
the tnat bo srd and in the street to-day. It is
believed that ta to banks have reached the minimum
of their discount line, and that no further reduction
will take piece.' "There is a better supply of
money, but the rate •on business paper and on mil
loans are still exor, .)itanto ranging from 8 to IL°
When we referred t *o this subject on Tunis,. tars
showed, on the undo% hted authority of the Irk sit•
it to the tith ult. thump MI turns of New York, the
been no reduction in ti 'le amount of the Bask
counts; there was at most only a preparation for
reducing the discounts, mid since then there has
been a reduction, bat with that- reduction the money
market has become easier. "T.he late law," says the
Courier and New York Inquirer of the 17th, " has
already had its effect on the money market in causing
a slight reduction of the banking accommodation.
although the capital of the city banks has increased
more than a million and a half since Jane last." The
returns to the 13th in continuation of those to the
6th, which we published on Tuesday, are as ham
We copy the paragraph entire, because in the hams,
return there was an omission. The following km
summary of the returns of 54 banks, August
and of 55 banks, August 13:
Loses. Specie. Circulation. Deralb.
dui,
Aug. 6 .. 97,899,617 9,746,452 9,510,465 68,410,756
Aug. 13 .. 95,562,277 10,654,618 9,451,945 68,166,712

Isere's° 908,188
Dams* .. 2,337,340 58,820 244,044
.The reduction of loans, therefore, which is not
likely to be continued with an increase of specie, and
an insignificant reduction of deposits, was lees than
a fortieth part of the whole advance, and, though
enough to make • tight money market, wholly in-
sufficient to account for the great rise in the rate of
interest, and the great want of money which some
persons experienced.
.To explain the comparatively easy money market
of New York after the banks had lessened their ac-
commodation, we must quote some other facts. On
the 12th ult. one of the usual packets from California
arrived at New York, and she brought on freight
537,337 dole. gold dust, and in the hands of passen-
gers 500,000 dole. The remittances on freight—
whatever might have been the destination of the
sums in the hands of the passengers—were intended

either to purchase more goods or to pay for goods
already purchased, and is either cue would relieve
the class of traders already straitened for money
by their large dealings. In fact, the stores of the
banks were swelled by 900,000 dole., and they
exercised a beneficial influence on the mar-
ket, less u being so much gold than as
being payments for successful adventures or re-
mittances to purchase some portions of the goods
which the importers had introduced so largely. Ao-
oordingly it is stated of the foreign dry goods market
at New York of the week ending August 18, " trade
is regular and satisfactory to the importers generally ;
the sales are constant notwithstanding the situation
of the money market, the returns at the Custom-
house, or the foreign news. Prices are Win good, and
despite the croakers and panic-makers the dry goods
dealers go straight forward without fear or
trembling." . .

The packet from California brought intelligence of
very active markets at San Francisco, which, backed
as it was by the remittances, had as much influence
on the money market as the gold itself. " Business,"
said the last report of July 14, " of all kinds has
been quite brisk to-day, and the appearance of our
principal thoroughfares remind us of the good old
times of '49 and '50." All the late reports from San
Francisco show a great revival of trade after a tem-
porary depression. Rising prices and slenderly sup-
plied markets were the rule. The weekly review by
the Alta California of the 10th of July begins :

The importations of the week have been moderate, and of
some leading articles in large demand, light, which has en-
abled receivtn to obtain beggar prices than had before been
ruling. The last advises received from the Atlantic coast
and South America were of mach a character as to have a
good etTect upon our markets, which hat already been
shown in the manifestation of more confidence than has pre-
viously characterised operations.

All that must have been very encouraging and
assuring to the trade of New York, which has ex.
ported largely to California, to the bankers, and the
monied intereet of that city, and accounts for
the case of the money market, notwithstanding
the prudent reduction of accommodation by the banks.
Another fact, not without a momentary influence, was
a reduction in the amount of deposits in the sub.
treasury at New York. On August 6, the amount
in the sub-treasury was 8,406,000 dollars, on August
12 it was 8,607,773 dollars, and on August 13,
8,000,000 dollars. On the 13th, then, the payments
out of the treasury had exceeded the payments into
it, and this fund, as we have already described it,
like the deposits of our Government in the Bank,
varies with the Custom-house receipts, and the pay-
ments on account of public services. As the revenue
of the States, however, exceeds the expenditure, the
fund has latterly accumulated rather feet, and the
law will only allow of the accumulation be-
ing in the precious metals. We explained,

on Tuesday, that it was the large demands
of the mercantile classes—the vast amount of busi-
ness in New York as in London which occasioned the
rise in the rate of interest there, as a similar demand
occasioned a rise here, and we have now explained
that the market has been relieved by the arrivals
from California, replacing with a profit a consider-
able portion of the capital employed in supplying the
inhabitants of the gold-producing region, and by the
generally improved prospects of that trade. There
is, from the great demand for capital, a permanent
tendency to a rise in the rate of interest, but it is
continually checked by the returns for successful ad-
ventures—a healthy trade, though subject occasionally
to be overdone by individuals who get temporarily in
difficulties. Over the permanent tendency, and the
temporary difficulties, the laws of the State of New
York for publishing the bank accounts weekly or
quarterly, and the gradual accumulation of money in
the public Treasury, can have only very slight in-
fluence. The demand for capital and the compara-
tive scarcity of money, whether in London or New
York, is the consequence of the prodigious activity
of trade.

Premising that the figures above given are copied
correctly from the Nero York Courier and Inquirer
of the 17th, we shall now lay before our readers the
account which the Tomes' City correspondent of yester-
day gives of the change in the New York money
market :

The advice* from New York this week confirm the cor-
rectness of the anticipations that an improvement in the
stock and moneymarket would occur immediately after
the new law regarding the publication of weekly returns
by the banks should have come into operation. Although
the pressure (or accommodation was still great, there bad

been a marked restoration of confidence, and in many de-
scriptions of speculative securities a recovery of about 3 or
4 per cent. is observable. The returns just issued
of the 35 New York banks show a total airman-
don of 11,500,0001., end specie to the amount of
2,150,0001. The contraction effected within the week pre-
ceding their publication was equal to 6.50,0001, and
the fact that in the face of this sudden movement not a
single failure has been announced, either among com-
mercial firms or at the board of brokers, is referred to as
furnishing strong evidence of the general soundness of the
trade of the country, of which also there is another indic►-
tion in the excess of the imports of specie over exports
since the commencement of the year. With regard to the

deposits of bullion in the sub•treuories throughout the
Union, a statement just made up to the 26th of July
showed the amount at that (late to have been 22,896,306
dela., or about 4,580,0001., and a steady inereue hue sub-
sequently taken place.

_ .
1 From this we apprehend our readers will discover
that there is little reliance to be placed on the money
article of the Times.