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

THE EXPRESS, TUESDAY EVENING, JANUARY 5, 1847,

MONEY MARKET.

MONDAY EVENINO.
There is no longer any doubt that the bases of n
loan operation have been laid, if not the contract absolutely
signed, between the Banks of England and France. The
report of negotiations having commenced to that end, on the
arrival of Baron James Rothschild in this city some week or
more since, wu referred to at the time under this head. The
ropositions of that capitalist, however, do not appear to
have been considered acceptable, and, it is understood, they
were not made on account of, or in connexion with, the
Bank of France, but were founded on a separate
scheme of his own for affording assistance to that
establishment, in which his house and family relations
in various parts should be the chief agents. The
mission of M. Hottinguer, direct from the Bank of France,
of which he is a director, and independently a great
merchant-capitalist, has, like the intronna,ion of the house
of Borings on a former occasion for the Bank of England,
brought the affair to a successful cooclueinn. It may be ob-
served, as an honourable particularity for the Baring, and
Hottinguers, who have serirately been entrusted as princi-
pals with, and conjointly will hare to work out, the present
uwell as the former combination, that they are correspond.
ing houses, long in intimate mercantile relationship with
each other.
An opinion is current in some generally well-informed
quarters that the financial operation now in question is in
reality a loan for the service of the French govern-
ment, and one of certain other similar measures for
retrieving the present deeply-embarrassed situation of the
French exchequer. In support of this view it is shown
that, despite the urgent representations of the directors
of the Bonk of France of the alarming drain of metallic
values outwards, and the penury of its treasury, the govern-
ment, driven to extreme shifts, has not the less imisted on
withdrawing the whole of its deposit fund in hard money,
or the equivalent, from that bank, and of demanding more
extensive I, lmodation in advances besides. The premises
'. for such indeed the facts of the ease •

may beponcetted,
nevertheless the correctness of the deduction may be doubted:
The mere amount, as stated in respectable quarters, of the
present loin accommodation is sufficient to negative the
idea that, except collaterally, the government could derive
from it any effectual assistance in its necessities. Such has
been the prodigality of expenditure of that government, as
we have shown on occasion heretofore, that notwithstanding
fallacious indications of increasing revenue, the real resources 1
of the country could not keep pace with it. It is not a bags- it
tele of a few millions, as in the present cage, that can re- r
establish French finance, but loans of aomeftitng like half a 11
score or a score of millions sterling, if the present extrava-
' Font wide of expenditure is to be kept up, or if it cannot, se
it cannot be, cut down at once by that surplus extent over
the expenditure, then not improperly denounced as exces-
sive, of the reckless times of quasi alaolutism preceding the
revolution in 1830. France has been made to pay a tremen-
dous price for the aggrandisement of the dynasty of tho
Orleans Bourbons.
It is understood that the loan operation, for which the
Bank of England undertakes for the accommodation of the
Bank of France, is totbe amount of about 80 millions of francs,
say 3,200,0301. It is not an amount to create any inconve-
nience to the bank, and the transaction can be viewei no
otherwise than with satisfaction, es another demonstration
of friendly feeling and well-understood brotherhood of in-
terests between the two great financial establishments
of two great nations, who, whatever the diversi
and the contradictory tendencies of their
motions, or supposed interests, are not insensible Is dam
fact that the material interests of both are connected with
and dependent to a large extent on each other. The feet et
such operations is of inelf no small guarantee for the pease
of the world, which must countervail and constrain in a
great measure the disorganising propensities of ambitions
politicians, and the greedy nepotism of dynastic !aspirations.
We shall have occasion, with better information sad eau•
sideration, of estimating here after the probable inflame sf
this new financial combination on monetary affairs, hers sod
elsewhere.
The funds, after inconsiderable fluctu►tions settled down
the same as before. Console 931 to 4. Reduced Threes, 94
to 4. Three-and-a-Quarter per Cents., 951 to I• Long
Annuities, 91 to 16-IG. Exchequer Bills, 7s. to lls. pre-
mium. Indi♦ Bondt, 17s. to 21s. premium. Bank Stock,
205 to G. Prices, as will be seen, remain steady, but the
market was without ac•ivity.
Mexican Bonds made a further advance this afternoon,
' and may now be quoted 251 to 4. The improvement is
based upon the report that a dividend may shortly be ex-
pected. The Second Edition of the Daily News Boon after
midday, with intelligence from Lisbon exclusively of the
victory of Saldanha at Torres Vedras, led to some trans-
, actions in Portuguese at the advanced price of 38, the buying
and selling rates being now 37 to 38. Spanish Fives, 261 to 1;
the 'Threes, 361 to 1; the Deferred, 17 to ; Passive, 41 to
5. Brazilian, 87 to 8. Chilian, 9.5 to 7. Ecuador, 31 to 4.
Venezuela, 39 to It. Buenos Ayres, 42 to 4. Russian, 11l
to 12. Dutch Two-and.a-Half per Cents., 591 to GO; the
Fours, 921 to 31.