The Express.
London, England, 1867-07-15 00:00:00

glie eri)reAfs.

TO CORRESPONDWN'N
Advertisements Intended for "The Ilzpreaa," London Evening
Paw, mast be at the Office, 10, Bouverle-street, by Two
o'clock on the day of pubUcattoa.

DRURY LANZ.
THIS ITISTII6I, MAT RASCAL JACK. Messrs. Rouse and
Neville ; Mesdames Alleyne end Thompam.—To conclude with
THE GREAT CITY. Rostra Cowper, M'lntyre. Villiers, Irving,
ZOOM, Fitz James, & Warner: Mesdames Robertson & Le Tomas.

HAYMARKET.

TTUR EVIMING, PETER SMINK. —THE COQUETTE. Mews.
Howe, Cumpt..u, thwdon, Vincent, Weatherby. &a. Mee.
dames Sedgwiea, Mathews, Lewin, tte —Aud WHO WANTS A
UUTNEA i Mews Bucksteue. I tippeudde, de.; Man Burke.

rammer&

Ten Ermese. TRUE TO TliE )RE. Meson Craver**, U.
Marston, H. Kirmter, E. F. Edgar, etc.; Min a. l'auncefiort
and Rua Melly Noon.—Duues open at halt.past seven ewe-
malice at eight.

.11TILLIfp.

Teti Levine°, REVERWI,2I—... lefiers. Emery, Pareelle, Rob-
son, sod Swanboroagh • Mesdames Ada awanta.rough and Jahn.
atone.—And THE LATEAT EDITION OF VELA ()UVULA.
Mesas. Thorne 4 hum* ; Mesdames Holt, Newton,

111UTAtrifTA:
TEM Emma. JAC CY LANTERN; OR, THE RACE COURAK.
AND TIIK RIX E RIBBON Or THE nuaksiono
and Mn Sl•Haffie ; the Champion Skaters of Englitod —And
MOONLRiIIi JACK. Mr. J. B. Howe tt Miss f. Coveuey.

WON WATIN AT LONDON lIRTDOL
fan DAT —Morels& lk iSat Afternoon, 1k MLAto•Moaacnr—Mondan, 2ti.

LONDON, MONDAY, JULY 15.

TUE accumulation of money in all the chief
cities of Europe continues almost without inter-
ruption. The only break has been in l'aris,where
the last return of the Bank of France shows a de-
crease in the bullion of about 1,027,000/. Consi-
dering, however, that the total held still amounts
to the enormous sum of near thirty-four and a half
millions sterling, this reduction can be of no prac-
tical consequence. It arises, in fact, from the
ordinary demand for coin to meet the Government
and other disbursements at the close of the half-
year, and probably within the compass of a week
or two the whole or a greater part of the sums
now withdrawn will return to the Bank of France.
In England we have experienced the strange con-
jradiction that the payment of the dividends has
not Oidt tusrompanied by a decrease in the bullion
at our own Bank. On the ether hand, the ir.ft.:r,
of coin from the provinces has caused an augmen-
tation, a result which has been rarely witnessed at
this period of the year. Again, the supplies of
gold coming forward from abroad are unusually
large. Each despatch from New York announces
fresh shipments, and the amounts stated to
be on the way from Australia are above
the average during late years. At the
mine time there is scarcely any demand
fur export to the Continent, and thus whatever
sums we may receive are sure to be taken to the
Bank. It is true that the foreign exchanges, which
are now strongly in our favour, may turn against
us, but of this there is little likelihood. The
rates of discount in France, Germany, and Hol-
land are already so low that there is no tempta-
tion to take bullion from this side. One or two
foreign loans might perhaps absorb a portion of
our redundant supplies. There seems, however,
a very strong disinclination on the part of the
public to invest in these schemes. Tho success
of the last Russian and Chili= issues has not
been so marked as to warrant any fresh proposals
Erma Governments possessing a much less degree
of credit. Spain and Portugal would doubtless be
glad to borrow, and, as regards the former, the
exceptionally good terms which are offered to the
holders of the Certificates in contradistinction to
the Passive bondholders appear to be intended as
a step to clear the way towards bringing
out a new stock in London. Portugal
may be said to be out of the field
in consequence of the disrepute which her
credit has suffered through the treatment of the
South Eastern of Portugal Railway Company by
the present Government in Lisbon. Thus what-
ever outlet may be found for the existing plethora,
it will certainly not be in either of those d;reo-
tons ; and leaving Spain and Portugal out of the
question, no other Power appears likely to be
mere successfuL
According to the indications before us, it seems
merely a question of a few days or a week for the
Bank rate of discount to be lowered to 2 per cent.
The reduction may be necessary, but it will be of
no advantage to trade. It is a common mistake
to suppose that because low rates of discount pre-
vail, commerce thereby benefits. The converse is
usually true. It is because commerce is stagnant,
and the demand for money comparatively small,
that the rates of discount are low. Generally
speaking, trade has been most active at a time
when money is dear. It is simply a question of
cause and effect. Activity in trade produces a
strong demand for money. Thus if the Bank
rate be at 2 instead of say 5 per cent., it is proof
positive that we are doing less business than usual,
or at least that we have failed to make the progress
that we are fairly entitled to expect. On the
other hand, supposing that our commerce receives
s sudden impulse by which the charge for discount
is within a brief period raised to 8 per cent. the

nation profits much more than if it had remained
at 3. It is unnecessary to go far back for an
illustration. The increase in our commerce with
the United States after the collapse of the rebel-
lion is • case in point. We at once undertook a
large and profitable business, and in order to do
so money was wanted. The rates of discount
necessarily advanced to an extent that caused
some financial authorities to predict an American
crisis which never came. On the contrary, traders
on both sides of the Atlantic were largely bene-
fited. There can be no doubt that, as far as com-
merce is concerned, we stood in a better position
in October, 1865, than we do now in July, 1867.
While money is cheap it is generally inferred
that investments will be in request, and to a cer-
tain extent this conclusion is true. It seems only
natural that if a banker can get something
more than three per cent. by placing his
money in Consols ho will do so in preference to
discounting commercial bills at 2. In the former
case he has at least the advantage that even at
the worst he can count on realisation to lose but a
small proportion of his capital. Against this he
has the margin of a higher rate of interest. Hence
of late bankers and other capitalists have been
buying into the funds, but since for every
purchaser there must be a seller, it becomes
an interesting problem to find out what the small
investors who dispose of their stock do with the
proceeds. Certainly they du not embark in new

foreign loans, for there are none ; neither are they
disposed to look at the frvAll issues of preference
stocks and debentures offered by those railway
companies that are in extreme financial diffi-
culty. The really solvent and substantial
undertakings have submitted to the pressure
of public opinion and restricted their
issues to the smallest possible extent, and
those only to their own shareholders. New com-
panies are so utterly neglected that even the most
sanguine promoter would hardly venture to publish
a prospectus, except where the concern was of that
substantial character that it could not possibly fail
to receive support, or where the capital was sub-
scribed beforehand. Speculative concerns would
be hopelessly tried, as every one perfectly well
knows.

There appears some reason to believe that the
public are hoarding their money somewhat in
the same way that took place just a year ago.
There is, however, this difference, that instead
of locking np bank-notes in their private safes
they deposit their funds with their bankers.
Hence there is more money available for dis-
count purposes, and the rate, instead of
being 10 per cent., is barely 2. In fact, although
people refuse to buy stocks, they do not feel
that overwhelming distrust which induced them to
withdraw their balances on " Black Friday," and
many succeeding days. If small capitalists have
little faith in most classes of investments, at least
they have regained confidence in their bankers.
The question remains, how is all this to end 4 We
are as far from a solution as several months ago.
It would have been equally reasonable to predict
a new mania last April as to do so now, and most
likely the position of affairs will not have changed
by next November. The only course open is to
watch the march of events. There is no greater
characteristic of the money market than the capri-
cious manner in which the public alter their
opinions. Blind confidence gives way to-day to
equally blind distrust; to-morrow a brighter view
is again taken, and promoters and speculators see
their way to a rich harvest.

OUR CONTEMPORARIES.
(THIS DAY.)