The Express.
London, England, 1866-05-21 00:00:00

HAYMARKILT.

'PHI! EFntnea, TIIEIIALINCE OF COMFORT. Masan
Howe. Rogers, Braid, Ac.; Mat Ada Cavendish—THE FAVORITE
OF FORTUNE Manna Buckatone, Chippendale, and Both=;
Yea Chippendale, Ac.—And THE WOLF AND THE LAMB.

PRINCISM

THIS Erwin°. A LUCK fITIT7Aiter which HENRY VIM
Cardinal Wohwy. Mr. Charles Kean Queen Katherine, Mrs.
Charles Kean.—Concluding with QUIET LODGING&

BRITANNIA

Ten PviamiO,RlCH AND POOR: OR, TIM YOUR SEASONS.
—The Hungarian Dancers, from the Oxford and Alhambra.—To
conclude with THE CORPORAL'S DAI'OIITRR. Mews. Rey-
nolds, Cranford, & lligwoud „ KlNClaradt. Cease &Kra & Lane.

HIGH-WATER AT LONDON BRIDGE.

Tuts DAY;iormi'ng, Th. lm ---Afternoon, 711. 30m.
TO-110140W—Horning, Bh. lm Afternoon, Bh. 30m.

LONDON, MONDAY, MAY 21.

THE recent crisis has effectually opened the eyes
even of the most obstinate defenders of our pre-
sent currency regulations, to the defects of their
favourite system. On no occasion has greater
unanimity been shown than in the general ap-
proval of the course taken by the Government.
The commendation is well deserved, for their wise
and resolute policy has emphatically saved the
nation. If, on that memorable Friday night, the
CHANCELLOR of the EXCHEQUER had said nothing
beyond the few remarks he pronounced early in
the evening, England would have experienced a
crisis incomparably inure severe than any that has
occurred within living memory. One simple mea-
sure stamped out the evil, almost in its birth.
The instinct of the commercial world is rarely
wrong. Traders and capitalists judge for them-
selves, and are far too much interested in the
practical conduct of affairs to be captivated by
mere theoretical perfection. For many years they
had seen the prejudicial working of our law, and
had contrasted it with that prevailing in France,
and the assimilation of the two, practically
effected by the Government letter, was, therefore,
received with a feeling of inteuse relief. The
weight that prt:A.sed upon commerce, to the de-
struction of all individual credit, was removed, and
business began once more to resume its ordinary
CORM.

No idea can be more fallacious than that of
attributing to the general action of the Bank
Act the advantage derived from its abrogation.
It is argued that under the present regulations a
kind of reserve fund of credit is accumulated
which in case of need can be put to effectual use.
The hypothesis is not very intelligible, but what is
meant appears to be that, unless some sort of
restraint were imposed in ordinary times, the
Bank would be found in periods of difficulty to be
hampered by an over-extension credit, and the
holding of a T11:153 .f inconvertible securities which
would so far imperil its position that it could give
no material amistance to trade generally. It seems
for some unknown reason to be assumed that any
modification of the Act would at once be seized
upon by the Directors of the Bank as a capital
opportunity for investing their funds in the worst
paper that can he offered. It is right, however,
that the fact should be known, that the manage-
ment of the Bank is conductedonprecisely the same
principles as that of any other conunercial institu-
tion. As a rule the Directors show, indeed,

more

than ordinary strictness. A bad debt, or an in-
convertible security, is fully as much avoided
by the Bank of England as by any other
banking or monetary establishment in the
kingdom. The fault is committed of an excess of
caution, rather than that of imprudence. In the pre-
sent state of affairs the Directors have, on unfor-
tunately good grounds, exposed themselves to the
imputation of considering too much the necessity
of adequately protecting the Bank, at the cost of
depriving commerce of the relief which the action
of the Government expressly permits them to
afford. Can anything, in fact, be more contrary to
the judicious upholding of credit than the refusal
to grant loans on Consols, or the enforcing of con-
ditions which amount to a virtual prohibition,
which, in some cases at least, has certainly hap-
pened ? It is an unfortunate consequence of the
law of 1844, that in a contingency of unparalleled
pressure, an adherence to a system manifestly un-
fit for the altered circumstances of the day should
practically tend to make the best security in the
world inconvertible. Bankers are accustomed to
hold large reserves in Government funds, from the
conviction that, if necessary, these investments
could instantaneously be turned into cash. During
a crisis, however, even Consols cannot be sold for
money, as was proved last Friday week, although
for the account, that is, a month hence, they might
be disposed of without material difficulty. It is
the duty of the Bank to meet a contingency of this
sort, and to prevent a dead-lock, which may arise
simply from the impracticability of realising
securities of the intrinsic value of which
there can be no question. By an ill-timed hesi-
tation the Directors have exposed themselves to
the reproach, we are ready to believe undeserved,
of yielding to a blind reverence for a practically
repealed regulation without counting the cost to
the community at large. What is worse, hints
are freely thrown out that their apparent anxiety
to avoid overstepping the limits of the Act is due
to the desire of making the largest possible gain
out of the present crisis. The profit that may be
realised out of the increased issue of notes goes to
the Government, not to the Bank. Hence, pro-
tected by the unlimited reserve sanctioned by the
letter of the CHANCELLOR of the EXCHEQUER, the
Directors of the Bank can with safety and advan-
tage to their shareholders lend out the whole of
their own funds at usurious rates. It may be
admitted that these assertions are in all likelihood
unwarranted, but still no cause should have been
given for their being made at all. To adopt the
fairest and most reasonable conclusion, there
appears no doubt that the management of the
Bank is conducted, and especially on this occa-
sion, with too treat rather than too little regard

to prudence. Contingencies am; kowevere.
easily arise when even caution a b•larrio
too far.
The panic that has just taken place has
been with great justice described as one of credit,
in contradistinction to one proceeding from over
expenditure of capital or export of bullion ;
and this is exactly one of the cases with which the
Act of 1844 is utterly unable to deal. The ques-
tion of the convertibility of the Bank note has
never for a moment been in doubt. In this re-
spect, however, the present crisis does not differ
from any of the last forty years. But in one
point the operation of the Act has been most pre-
judicial, by the alarm which the possibility of the
full carrying out of its provisions has never failed
to engender. For two years commerce has suf-
fered from the knowledge that the supply of cur-
rency has been inadequate to the demand caused
by increasing trade. The limit has been main-
tained at a point which twenty years ago may have
answered very well, but is clearly inapplicable to
another period when our commerce has advanced
to threefold its former proportions. For a long
time past the reserve of the Bank has been both
actually and relatively decreasing, and it is to the
reserve that traders constantly direct their atten-
tion. The expansion of our American commerce on
the termination of the war first produced a feeling
of uneasiness, not because any unsoundness was
indicated, but because it became apparent to the
mercantile world that sufficient means were not at
their command to carry on the ordinary buainessof
the country from day to day. The war intelli-
gence from the Continent contributed to heighten
this feeling, and already credit was severely shaken
when the great failure of OVERRND, Geacxv, and
Co. destroyed it altogether. Money could be got
only at the Bank, and there the supply was only
too limited by the restrictions of the charter. The
usual rush took place to an enormous and unpre-
cedented extent. Every one over-provided himself,
in the fear that the time was rapidly approaching
when money could not be got on any terms. H
it had been known that the issue of the Bank was
practically unlimited the rush would not have
taken place at all.
As the dispensing power has now become a re-
cognised fact, it would be well that it should be
put upon a regular and definite basis. Some high
autForities have proposed that due legislative au-
thority should be reposed in the Government to
relax the Act according to their discretion.
Perhaps a better plan would be to sanction an ex-
tended issue of notes whenever the rate of
discount reaches a certain point, say eight or
even ten per cent. There is little fear that this
I indulgence would be abused, since no one cares to
borrow money on such extreme terms, unless Fe
really wants it. At the same time the fact that
money could be obtained would effectually stay
any panic of credit. The Bank (.1 France are un-
fettered at all, and certainly, to judge by expe-
rience, the French system works well. In Paris
speculation is carried to a height unknown in
London, and their Credit lgobilier and other finan-
cial institutions have malertaken operations before
which those of our own companies appear insigni-
ficant. Yet at this moment the Bank of France
rate of discount is 4 per cent., compared with our
10, and the bullion and circulation are respec-
tively 20,500,0001. and 35,300,000/. against
12,323,805/. and 26,121,000/. at the Bank of
'England. if the convertibility of the note is to
be called in question, it is evident that the free
system of France affords now a better security
than the pro.,ected system of England. Again,
gold is being drawn from this side notwithstanding
' i the enormous difference in the rate of discount,
and for the present is likely to continuo. The
French hankers usually hold a considerable amount
i of English paper, and the present proportion is
believed to lie aout double that of ordinary
'times. These amounts are being called in, owing
Ito the want of confidence caused by the disruption
of credit. Now, as the operation of the Bank
Act has been the chief, or, at all events, one of
the chief reasons for the panic, its effect has
actually been to stimulate the export of gold,
i instead of drawing it here, according to theory,
from abroad. Putting these facts together, a
more practical refutation of the arguments in
; I
favour of the system of 1844 could hardly be
I desired.

OUR CONTEMPORARIES.
(THIS DAY.)

-ifTHtt .4ONDAy E

vigipißT, MAY .21, 1866. •

WINDSOR CASTLE, IL
The Queen Walked in the grounds yesterday
afternoon, and drove this morning, accompanied by the
Prim:ass Helena.
Princess Louise and Primes Beatrice also walked and
drove.
Her Majesty held a council to-day at 1 o'clock, at
which were present Earl Gninville, Lord Stanley of
Alderley, and the Right Hon. T. Milner Gibson.
Mr. Helps was clerk of the council.
The Earl of Caithness and Colonel the Hon. A. Liddell
were the lord and groom in waiting.
Earl Granville had an audience of the Queen.
Lord Charles Fitzroy has succeeded Lord Alfred Paget
as equerry in waiting.
Mr. Joseph Wyon has been honoured by Princess Helena
with sittings for a medal.
Mr. Robert Dowling has had the honour of submitting
to her Majesty portraits of the Prince and Princes■ of
Wales, painted by him for the Tasmanian Government.
Met 20.

Wm evert.

The Queen drove out yesterday afternoon, attended by
the Dowager Duchess of Athole and the Honourable
Flora Macdonald.
Princess Helena, attended by Miss Bowater, went out
driving, and Princess Louise and Princess Beatrice also
drove out in a carriage and four.
The Queen, Princess Helena, Prince Leopold, and the
Ladies and Gentlemen in Waiting, attended divine service
this morning in the private chapel. The Hon. and Very
Rev, the Dean of Windsor officiated, and administered
the sacrament of the Holy Communion.
The French Ambassador and the Earl and Countess of
Clarendon arrived at the Castle yesterday, and had the
honour of dining with the Queen and the Royal Family.
Miss Bowater also arrived at the Castle.
The Hon. Mary Lascelles left the Castle yesterday.

The Prince and Princess of Wales rode ont on horseback
on Saturday afternoon.
The Prince of Wales presided at the annual dinner of
the 10th Hussars at Willis's Rooms in the evening.
The Prince and Princess of Wales, with the Hon. Mrs.
A. Hardinge and Major Teesdale in waiting, attended
Divine service at the Chapel Royal, St. James's, yesterday
morning.
The Communion Service was read by the Rev, the Sub-
dean and the Rev. J. V. Povah.

Anthem, " Come Holy Ghost" (Attwood), sung by
Master Coward, Messrs. Francis, Montem Smith, and
Bradbury. _

-
Mr. Goss presided at the organ.
The sermon was preached by the Rev. Dr. Jell, sub-
almoner, from Acts, 2nd chap., 3rd and 4th verses.

At the Council held by the Queen at Windsor Castle on
Saturday her Majesty's consent was given to the marriage
of the Princess Mary of Cambridge to the Prince of Teck.
Despatches were received on Saturday at the Colonial-
office from the Governors of Gibraltar, Malta, Ceylosk,
Hong Kong, Labuan, and the Australian colonies. De-
spatches were sent to the Governors of Gibraltar, Malta,
Ceylon, Hong Kong, Labuan, the Mauritius, the Austra-
lian colonies, New Zealand, and Canada.
Earl Russell left town on Friday evening for Pembroke
Lodge, Richmond.
The Right Hon. Sir G. Grey left town on Saturday for
Fallodon.

The Right Hon. the Chancellor of the Exchequer left
town on Saturday on a visit to Sir Walter James, at Bets-
hanger, Kent.

We are authorised to state that her Majesty's
court announced to take place on the 19th June
next will be held on Wednesday, the 6th of June.
The levee, which was to have been held by his
Royal Highness the Prince of Wales on her Ma-
jesty's behalf on the 6th of June, will take place
on Tuesday, the 19th of June.
The Prince of Wales, as Colonel of the 10th
Hussars (the Prince of Wales's Own Royal Regiment),
presided at the annual dinner, which took place on Satur-
day evening at Willis's-rooms, King-street, St. James's.
His royal highness, accompanied by Prince Teck, and at-
tended by General Knollys and Major Teesdale, C. 8.,
arrived punctually at 8 o'clock. Covers were laid for 40.
The accession of Prince Alfred to the peerage,
by the title of Duke of Edinburgh, will (the ,Suildny
Ca-
:eU understands), take place on her Majesty's birthday.
Among the lesser titles to be borne by his royal highness
I will be that of Earl of Ulster.

Prince Alfred, during his visit on the 23rd of
June next, in addition to delivering the prizes on board the
Conway and formally opening of the new northern
entrances at the Birkenhead Docks, has consented to lay
the foundation-stone of the new Children's Intirimuy in
Myrtle-street.

The Right Hon. the Chancellor of the Exchequer
left town on Satyr(lay on a visit to Sir Walter Jaines, M
Betteshanger, Kent. _ _

The Right Hon. Benjamin Disraeli and Mrs.
Disraeli have left town for Hughenden Manor.

Earl Russell left town on Friday evening for
Pembroke-lodge, Richmond.

The Earl and Countess of Mahnesbury have been
placed in mourning by the death of Miss Dashwood, which
occurred on Saturday last ; the deceased lady was sister of
Jane, second Countess of Malmesbuiy, the mother of the
present earl.
_ . . . .

The Earl and Countess of Derby have left their
residence in St. James's-square to pass the holidays with
Colonel the Hon. Wellington P. and Lady Emma Talbot
at their residence in the neighbourhood of Harrow.

The Duke of Marlborough has gone to the Isle
of Wight for a short yachting excursion. The duchess
and Lady Churchill have gone to Blenheim Palace, near
Woodstock.

Lord Wodehouse is (says the Sunday Gazette) to
be raised to the dignity of an earl, by the title of Earl of
Kimberley, the name of his lordship's seat in Norfolk.
The week after Ascot a grand complimentary
dinner is to be given to Admiral Roue, where Earl Gran-
ville will preside, and the Prince of Wales is likely to
honour the occasion with his presence.

On Saturday the Archbishop of York went
through a fair day's work at Sheffield. His grace con-
secrated a church, laid the foundation stone of another
church, and subsequeuty distributed the prizes and certi_
cates to the students who had successfully passed the
Cambridge local examination.

Mr. T. Hughes, M.P., addressed a co-operative
meeting in Manchester on Saturday night. The hon.
gentleman was attended by many influential persons who
have taken a warm interest in the co-operative movement..

The opera for to-night at her Majesty's is the
fir,y,(fsotA ; to-morrow-night Lurk di Lain mornwor ; on
Thursday and Saturday Dinorah (first time—Mdlle. Ilma
di Murska as Dinorah). Meanwhile Mozart's Serajli," is in
preparation.
_ _ _

• .
No less than five operas are announced for the
current week at Covent Garden—to-night La Sonsnombu
(first time—Mdlle. Patti, Amina) ; to-morrow, L'Africaine ;
on Thursday, the Huguenot, (first time) ; on Friday, Don
Giovanni (first time) ; and on Saturday, the Barbieri.

On the 30th inst. Mr. Gavan Duffy, ex-Premier
of Australia, wither he returns at the end of the summer,
after a twelvemonth's visit to Europe, will deliver a lec-
ture before the Society of Arts, on the " Resources of
Australia."
On Saturday Mr. R. B. Farnall, C. 8., the Poor-
law Board's Commissioner for the Inspection of London
Workhouses, assisted by Dr. Smith, held an official in.
quiry at the East London Union Workhouse at Homerton,
respecting the treatment of a pauper inmate, named Emma
Neal, aged 20.
The Priore of Rocca Masaima, who was 12 days
in the brigands' hands, is now in Rome, and gives inter-
esting accounts of his adventure. It is important to find
from his narrative that the brigands who took him, nine
in number, were nearly all disbanded Bourbonic soldiers,
commanded by an ex-sergeant, who still retained that
appellation among his comrades. These worthies com-
plained that they had been very ill-treated, having been
first encouraged to take to brigandage, and then aban-
doned to their fate in the mountains, with equal probe.
bility of getting shot on the Italian or Pontifical side of
the frontier. They said they had nothing left to do now
I but to continue their present career, surrender being
impracticable, " especially in my case," added the ser-
geant, with a sinister smile, " for I should have to
answer for 20 acts of homicide at the very fewest."

LATEST INTELLIGENCE.

' Tin ADVANCING-PARMES AND WAR
WUWA/CATIONS.
It is stated that Austria has refused the propo-
sition of a congress on the basis proposed• The
concentration of the armies is meanwhile proceed
ing rapidly. Three army corps, amounting to
90,000 men, are said to be posted on the Saxon
frontier. From 90,000 to 100,000 Pomeranians,
or East Prussians, have been ordered to advance
to the southern districts of Brandenburgh
snd Silesia. The military schools in Prowls
are closed and the pupils drafted into the
army. Volunteers are invited to enrol
themselves in the regular army. The Prus-
sian army at the present moment is computed
to amount to 500,000 men. Austria, on her side,
continues her preparations. The whole garrison of
Vienna has left for Bohemia. Twenty-eight mili-
tary trains leave Vienna daily for Prague and
Olmutz. (General Benedek has under his command
36 regiments of cavalry. Although 80,000 recruits
were enlisted a few weeks ago a further conscrip-
tion is to be made next month.
According to the Sentinel& Bresciana, Austria
has 200,000 soldiers in Venetia, who are posted as
follows :—ln Mantua, Borgoforte, and Ostiglia,
10,000; in and about Verona, 30,000 ; in Padua,
10,000 ; in Rovigo, 40,000 ; in Legnano, 6,000 ; in
the Tyrol, 30,000 ; and in Trieste and Gorizia the
remainder. Large quantities of straw, wood, wine,
and corn have been purchased. On the 13th,
4,000 men were sent from the line of the
Adige to occupy Montebaldo, it having been
reported that Garibaldi was near with a
body of volunteers. The Italian journals
report that men from all parts of the country
are enrolling themselves in the volunteer corps.
The number enrolled by the democratic committee
of Milan alone up to the 15th amounted to 3,415.
On the 16th 270 young men, all Venetians, crossed
the Po near Borgoforte, and presented themselves
for enrolment amongst the volunteers at the Italian
station of Foggia. They at once raised the national
standard, amidst visas for the " King," " Gari-
baldi," " Italy," and the " Army."
The Nation contains the following address from
General Durand() on taking the command of the
military department of Naples :
Officers, sub-officers, and soldiers of the military depart-
ment of Naples—
His Royal Highness Prince Umberto having been called
to the poet of honour and of danger, which has been always
the station of the royal family of Savoy, I am come by the
King's desire to take the command of this military depart-
ment. The fates of Italy point to a new epoch of great
moment in her history, for perhaps the hour of the third
and final war of independence is not remote. I know that
you all regret being at a distance from the probable seat
of war, but be assured that your mission will be an honour-
able one, as well as a useful one, to Italy. We must main-
tain tranquillity in these beautiful region% defend them
from internal snares and external aggression, and remain
the rearguard and reserve of the great national army which
is appointed to operate in Upper Italy. We shall joyfully
fulfil this double duty, sure that we shall have deserved
well of the country and strengthened by the support of
the population, who, let those interested be maimed of it,
are no longer the same population they were in the ac-
cursed times of Caroline of Austria. In any case where
our duty calla there shall we find honour and glory.
Naples, May 13. Giacosu De RAN DO.
The ..VaLione of Friday concludes an article in
favour of Count Bismarck's policy as follows :
As to the minor states of Germany who desire to take
sides and to talk big, its evident they are running blindly
to their own ruin. The times are not favourable to litCe
states. Never was the Scriptural phrase, Dominus rum
fortebus, truer than at present, and not a few of the Ger.
man princelings will find this out to their test.
The ,tionnt,ty Zritung—the 14utiday Times of
Vienna—employs the following language in regard

to Prussia :
To annihilate Prussia is the only mode of saving this
empire from ruin and dismemberment. It is only when
Prussia is crushed that Austria can ensure that pre-
ponderance in (ermany which is absolutely indispensable
to her existence. Forward ! theu, brave soldiers; for-
ward to Derlin
A despatch from Berlin of May 17, says :
The King is rewired, in spite of the remonstrances of
the Royal Family and his Ministers, to take a part in the
campaign which is about to commence. The royal tent
has been exposed to public view for some days.

(REUTER'S TELEGRAMS.)
THE PROPOSED CONGRESS.
FLORENCE, MAT 21.

Italy and Prussia, in reply to the preliminary
overtures, have expressed their willingness to take
part in a congress. Austria has not yet given her
answer.

Signor Scialoja, Minister of Finance, has now
definitively withdrawn his resignation.

HUNGARY.

PESTH, MAY 21.

An official denial has been given to the rumour
of a fresh conscription being intended in Hungary.

The town of Pesth has voted another address of
confidence to M. Deak. Similar addresses have
been presented t ) him from other towns of Hungary.

METROPOLITAN HORSE SFIOW.-(THIS DAY.)

EXTRAORDINARY PROCEEDINGS.

This morning was the first shilling day, or open-
ing of the show to the general public. The excitement of
the pony and trotting races against time, lee., as well as
the jumping of the hunters, is reserved for the holiday
folk, who will no doubt arrive in sufficient numbers to till
the Hall during the afternoon. Shortly after the show
opened a circumstance occurred which was of such a
serious character as to cause, in the first instance, fears to
be entertained that there was a probability of the show
being brought to a sudden termination.
It has already been announced that General Count
Fleury, Master of the Horse to the Emperor of the French,
is on a visit to this country, amongst other matters to
effect the purchase of some of the finest stock which can
be obtained for the Emperor, the Empress, and the Prince
Imperial. It appears that yesterday the count and his
suite attended for the purpose of having. it private inspec-
tion of the animals. The grooms helomptig to the owners
having all been ordered out of the building, those attached
to the establishment were directed to take the horses
out of their stalls, and they were paraded in the
ring for the inspection of the Count and his friends.
This circumstance coming to the can of the principal
owners a deputation was formed to wait upon
the directors who were on the rota for this day,
Mr. Howard and Mr. Seeds, and protest against
such a proceeding. These gentlemen thought it better
to convene at once a special board, and the
deputation having laid their complaints before
them, the directors resolved on the publication of
an apology expressing deep regret at what had taken place,
and censuring those who were responsible for it, and pro-
mising that in future no horse shall at any time be re-
moved from his stable for exhibition in the absence of his
attendant, nor on a Sunday under any pretence whatever,
illness excepted.
The judging commenced for those saddle horses which
were in the incompleted classes on Saturday, and corn•
menced with class 16s. Stallions for getting hacks.—
This was a beautiful class, and the first prise was
awarded to No. 279, Mr. Lieter's "Black Performer," by
Black Harkaway, fourteen hands three inches high.
The second prize to 276, Captain Barlow's " Confidence,"
14 hands 3 inches high ; and the 3rd prise to 291, Mr.
W. H. Gaunt's " Golden President," 14 hands 2 inches
high. Class v. was for carriage horses not under 15 hands
3 inches, in which wavered of the great job masters com-
peted. The prize of 251. was awarded to 290, Mesas.
Wimbush and Co., of Oxford-street, for their splendid
pair of bays.
The next judging was for trotting horses—class 7, and
whilst some of them were dashing round the arena in a
light trap it upset, and threw its rider. The horse dashed
on, dragging the vehicle, which was on its side, at its heels,
until it came in contact with the partition of the arena,
when it was secured. The driver was not hurt. The first
prize, 251. was awarded to 296, Mr. John Edwards's
Stephen F. Knapp, chesnut, 15 hands and half-inch high ;
and the second to 297, Mr. Charles M. Baker's Magnet, 15
hands one inch and a half high. This concluded the
awards. . . .

Shortly after 1 o'clock the public came pouring in by
hundreds, and no doubt many thousand/ will be present
during the afternoon.