The Express.
London, England, 1867-07-29 00:00:00

lITILAND.

TatsEmmen. REVERAF.S. Mews. Emery, Panel* Rob-
son. nod swanboromM; Mesdames Ads swanborough and John-
stone.—And TUE LATEST EDITION UY FBA DIAVOW.
News. Thorne & limes ; Mesdames Holt, Newton, &c.

BRITANIRA.

TNT Emma, SCARLET DICK : OR, MR ROAD AND ITS
RI DER:4,-11mm Villlianwon and Craven : Mr. it Mrs./VIDA. ;
the Champion Skaters—And JACK 0' LANTERN : OR, THE
RACEcOURSE, AND TILE BLUE RIBBON 01 VILE TUBS.

NOSH WtlllllZ AT LONDON BILIDGI.

Two tooLionaiiii—Oi. OZ:.—..—Art7roo;o7 Oh. la t.
TO•lltoasow—Koraisoc. Oh. 4116......Ati0n005h.

LONDON, MONDAY, JULY 29.

FOR the third time since the passing of the
famous Act of 1844 the Bank rate of discount
has been reduced to its lowest point-2 per cent.
It is not at all improbable that the course of busi-
ness will be such as to cause a further decline to
perhaps 1 Although some indications appear of
a revival in trade they are by no means general,
and any real recovery is materially impeded by
the unsettled position of foreign politics. It may
be supposed that the published reports give an
exaggerated view of the general feeling on the
Continent, but their statements are more than
borne out by private commercial advice*. There
is no doubt that the apprehension of war is
seriously weighing upon trade. Merchants and
bankers are peculiarly sensitive to the signs of
the times, and hence we have good materials for
forming an opinion why week after week the bills
discounted by the Bank of France show a falling
off. At present enterprise abroad is discouraged,
partly for financial, but more for political con-
sideration!. In England the situation is partially
reversed. We are not blind to the losses that must
necessarily follow the outbreak of a Continental
war, but for the moment we suffer more from mere
financial distrust, the legacy left by the experiences
of 1866. By an apparently inevitable fatality
every prospect of recovery is at once checked by
some fresh revelation. The latest event has been
the bankruptcy of Messrs. PET.), Barra, and
CRAMPTON. Another element has thus been
added to the discredit which has long attached to
our railway companies. No one can tell whether
the example of the conflicting claims set forth by
the London, Chatham, and Dover on the one aide,
and of the contractors' firm on the other, may not
speedily be repeated. Again, the disputes between
masters and workmen, which have unhappily been
too rife, are eminently calculated to destroy pub-
lic confidence. Hence, what with foreign and
borne troubles, commerce continues generally stag-
nant. Money accumulates at the Bank, and for
want of demand the rate of discount falls to 2 per
cent.

It may appear singular that, under these circum-
stances, the imports of bullion into the country
should continue on their present extensive scale.
The Atlantic Telegraph brings news day after day
of fresh shipments from New York, at a time when
gold can be less profitably employed here than
has ever before been known. The forthcoming
supplies from Australia are also large, and even
some small sums are received from the Conti-
nent. According to rule, we ought to get nothing
from the United States and a great deal from
Paris. Money is in much more demand in Ame-
rica than here, and commands far higher rates.
In Paris, on the other hand, discounts are ob•
taiued even lower than in London. By the last
return the Bank of France held bullion to the
amount of 35,147,0001., against 22,771,8641.
at the Bank of England, the respective increase in
the past week being 462,0001. and 85,135/.
Hence, if unemployed capital is over-abundant
here, there is a much greater excess on the other
side of the Channel. Naturally it would be ex-
pected that in the ordinary course of trade these
inequalities would be speedily redressed.
Following the dicta of sound theoretical calculation,
England and Franco ought at this moment to be
sending large amounts of specie to those countries
whore capital can be most profitably invested. The
law of supply and demand is assumed to be
conclusive upon the point. Unfortunately the
facts are in direct opposition to the theory, but
this result is by no means rare in financial ques-
tions.

The continued influx of gold has revived a topic
which was eagerly discussed at the time of the
great discoveries in California and Australia. How
far would the multiplication of the precious metals
affect prices f There was, of course, the usual
conflict of opinion. Some held that the prodde-
lion of each ounce of gold would necessarily
diminish the purchasing power of the amount
already in circulation. Others, that this result
could not happen for a great lapse of time, owing
to the steady demand for gold for many purposes
of use and ornament. Both aides were, as in moat
cases of controversy, partially right. Speculative
economists found that if they were wrong
in detail, they were tolerably correct in
the long run. The practical men who
disputed that prices would rise in an exact
ratio to the production of gold were also correct.
It is certainly within daily experience that nearly
all articles in ordinary use, labour, rent, ff,c., are
much dearer than fifteen years ago, but it is not
altogether just to say that this advance is due solely
to the gold discoveries. For example, the en-
hanced cost of labour depends materially upon
emigration. On the other hand, it may be argued
that the gold discoveries have stimulated emigra-
tion. Anot•'ier point to be taken into account is
the advancing prosperity of the nation and the
increase in the wealthy or independent classes.
Many other causes might also be enumerated, but
it is sufficient to deal with the actual fact, that a
gold sovereign has, for purposes of exchange with
other commodities, undoubtedly lost a portion of
its previous value. The alteration has taken

place somewhat irregularly, but is, notwithstand-
ing, clearly evident. The question is whether we
are about to see another change. The accumula-
tion of gold in France and England gives reason
to suppose that we are about to repeat the
experience of 1852. At that time the amount
of bullion here was unusually large, and the
first effect was a reduction in the rate of discount
to 2 per cent., as now ; the second was a rise in
the prices of goods ; the third, the commence-
ment of an era of speculation that culminated in
the great crisis of 1857. This last consideration
we may safely disregard. The events of 1866 are
too nearly remembered for the public to embark
in any fresh mania. They have not had,
as in 1852, five years to forget the lessons of
1847. On the contrary, the great fault that may
be found is that of indiscriminate distrust. As
regards the two first results of the present plethora
of money, one is already in operation, and the
second appears almost certain to follow.
The burden of these changes falls heavily upon
the holders of fixed incomes, but it is impossible
to devise a remedy. It is precisely one of those
cases where all must take their chance. The idea
of compensating a fundholder for comparative loss
of income would no more be entertained than an
application from the possessor of a rotten borough
on the passing of a Reform Bill, or of a great
landowner on the repeal of the Corn Laws. Gold,
like all other conunod'ties, must depend in value
on the amount of production. If it is scarce,
other articles will be proportionately cheap ; if
it is abundant, other articles will be proportionately
dear. We have learnt by long experience that it is
the wisest policy not to interfere with the ordinary
operations of trade, and it is impossible that we
should again resume a course of action familiar to
our forefathers, perhaps, but entirely exploded
now.

OUR CONTEMPORARIES.
(THIS DAY.)