The Express.
London, England, 1860-11-19 00:00:00

THE EXPRESS, MONDAY EVIZi;RTG, NOVEMBER

A them. Russia hoped by its • tire i
to catch up her neighbours. her i
bours take a step farther in p:i raii
middle and artisan class by a ao
sentativo system, Russia ' d, itab
repelling, not enticing, , Ma! 14
provinces.

It is also pretended that the Austrian Ex-
PZIOR rejected the offer of an indemnification

for Venetia, in the shape of • province of the
Turkish Empire. This would imply • that Ana-.
trio declines to join the Franco-Russian
plan for cancelling the treaty of 1856,
and proceeding to the partition of the Otto-
man Empire. It is even hinted that his recogni-
tion as King of 'ram( is offered to Vit-roa
EMMANUEL on the condition of his eventually
joining this league. Although the King of ITALY,
as ho may be already celled, is on doubtful terms
with the Turkish Government—partly from his
having welcomed an Envoy from the Principalities
at Turin, and bestowed his crosses on Idoldo-
Wallache—we do not believe Gavot:a a man to
purchase the recognition of his Sovereign by
Blunts and Austria at inch • price.

MB remarks proffered in these columns on
Monday last with regard to the severe drain upon
the Bank of France, and to its inevitable effect
upon tho resources of tho Bank of England and
upon our money market, were not premature.
The past week has been one of the most remark-
able on record, in a financial sense, for it has been
distinguished by the following incidents :—l. A
continued heavy drain of bullion from the Bank
of France ; 2. Large draughts of gold, in aid of
that establishment, from the Bank of England; 3.
A rise in the rate of discount in France from 3}
to 4} per cent. ; and, 4. A rise in the rate here
from 41 to 6. The conditions presented at this
moment may be summarised thus :-1. A suspen-
sion of the flow of gold from the Bank of
England, owing partly to the opportune ar-
rival of 670,0001. from Australia, which is
being pained on at once to the Bank of
France ; 2. no suspension of the pressure for gold
upon the latter establishment ; and, 3. a delibera-
tion (adjourned until this day) on the part of the
Directors of the Bank of France as to the advisa-
bility either of raising their rate of discount fur-
ther, or of adopting other measures partaking more
strongly of the character of palliatives. The re-
sult of their consultation is looked for with the
utmost interest. The immediate course of finance
in both countries hinges upon it.

Three lines of policy are open to the Bank of
France. I. If they wish to act upon sound eco-
nomical principles, they will immediately take I
further steps in the direction of contraction. They
will endeavour to draw their engagements within
a narrower compass. They will call in outstand-
ing loans, not mercilessly, but judiciously ; they
will interpose obstaclestothegranting of freahloans,
excepting only for the most legitimate purposes. They
will raise the rate of discount afresh, and thus
discourage as much as possible any further com-
mitments abroad. They will virtually say to
French capitalists : " Take warning in time ; you
" are attempting too each ; keep your means at
" home ; take up no more schemes for Turkish
" loans, Spanish railways, or other foreign pro-
" jests ; France is already subjected to a heavy
" foreign drain for existing engagements of this
" kind, far the military expeditions which she has
" on foot is several quarters of the globe, and,
" above all, for the large importations of corn
" which are rendered necessary by the deficiency
"in the harvest. We must husband our resources,
" and endeavour to attract relief by the only legi-
timate means— that is, by making capital
" dearer in France than elsewhere, thereby dis-
" oouraging its efflux, and encouraging its influx."
11. The second course open to the French Bank
is to ignore strait-laced maxims of finance ; to guard
traders and speculators alike from the affects of
that stringency which, though inconvenient, is not
merely salutary, but absolutely necessary at times;
to let thirty millions sterling of bank notes (the
amount in circulation on the Ath inst.) remain
afloat ; to refrain from raising the rate of discount ;
and to trust to being able to effect continuously
purchases of gold abroad to an amount adequate to
the demand.

111. The third course would consist in the adop-
tion of a middle policy—a combination of the two
already described ; and little doubt can be enter-
tained that this is the one which will be followed
by the direetora. There ars signs of this already.
They acted correctly in raising the rate of discount
promptly from 84 to 45 per cent. They betray
hesitation now in refraining from advancing
it further. In this it is easy to detect
the finger of the Government, whose paternal office
it is to regard the trade and finance of the country
m permanently in need of a certain " protection,"
whereas, the first shock over, they would un-
doubtedly fare much better when divested of their
swaddling-clothes. If the French money market
be lulled into • kind of false oonfideno►—if

traders be encouraged to rely upon • certain ease,
to be maintained almost by Imperial decree—if
speculators of the schools of Mince and Planar
are to be stimulated into fresh foreign ventures—
the result will inevitably be to prolong • state of
tension which will operate to the permanent
injury of the commercial interests of the country.
Better by far would be the sharp remedy.
We in England are deeply interested in the
financial deliberations now in progress on
the other aide of the Channel, for some
years ago we had a painful experience of the dis-
burble( effects of the unsound system which was
kept up there. Many persons of calm judgment
would, therefore, receive with gratification the
news that the Bank of France had raised their
rate of discount at once from 4i to 11 per cent.,
for, although such a step would probably be fol-
lowed by • fresh advance in the charge at the
Bank of England, the commercial public would
perceive at once that both establishments were
meeting a drain common to both by • common
policy of defence and correction. France and
England, who have each to pay large sums for
OM to Run* Spain, Egypt, the Baltic, the Me-
diterranean and America, ought to stop the efflux of
capital for all other purposes. Each country has
quite enough to do at present with 'its immediate
means, and ought not to think of lending money to
other States, or of sinking it in the earthworks or
masonry of foreign railways. There is a time
when capital overflows, and when such projects
may be undertaken to advantage ; but this is not
such a time.

There is unfortunately room to fear that French
financiers will not recognise their position fully.
The mere fact that at such a tire they are dang-
ling the bait of • loan of 16,000,0001. before the
eyes of the creditor-besieged PORTE is signifi-
cant. No English house would dream of under-
taking such a commission in the midst of •
financial crisis ; but we suppose M. Minas
is presuming upon the known lack of courage of
the Rank of France and the Government to folks►
out logically • policy of repression. Indeed—but
that the complaint would be waste of breath in a
despotic country—this eminent stock-jobber might

reasonably complain of the inconairtency of the '
t el" eo i.n tepleisArith-ft
Tur tars, • lrh.ila an 10004
Zecree nst ap a " Conway
"of Co Credi • ote enteepkiae
hin with to Bonds
to the amount of 720,0001. ; anikwhen it has, in
addition, formally authorised the Discount Bank of
Paris (Compeoir d'Escomple) to place large funds
ae• cliaPosal of the, Colonial Banks, for
A. - _

-esummget the iilanters. We are not
ambit hi 'height( the zespoosibility of these inop-
portune financial movements upon the Government,
for the Minister for the Colonies figures promi-
nently throughout the affair. This policy is
merely of a piece with all that has been done
before. And what we like the least is that there
is a sediment of petty international jealousy in
most of the financial devices which the Govern-
ment takes under its wing. At the very moment
when, as was shown by its throwing open the
French ports to the introduction of food, the
Government had its eyes opened to the serious
deficiency in the harvest and to the necessity of
large imports, it authorised the Discount Bank
already referred to to draught away some hundreds
of thousands of pounds sterling to India and China,
in order to deprive the Anglo-Oriental Banks of
a portion of the profits on the financial
interchanges in that quarter. And even
now, when the Council of the Bank of
France, at the head of which is a Government
nominee, is sitting, so to speak, in a Committee
of Ways and Means, it is reported that, in order
to flatter the delusions of the nation in regard to
the rood to naval supremacy, the conomsion for a
grand scheme of Transatlantic steam lines, involv-
ing a Government subsidy of 1,160,000/. a year,
has been entrusted to a combination of capitalists,
amongst whom are our Bourse-haunting but not
very successful friends, the Cr6dit Mobilier So-
ciety

It is to the frequent occurrence of symptoms of
this sort—symptoms which indicate the marvellous

slowness with which French financiers and minis-
ters learn the lessons of the past—that the deeply-
rooted distrust of the 6nances of that country M
due. There is a ceaseless round of borrowing.
The Government borrows ; tho municipalities all
borrow ; even the communes borrow. The varie-
ties of debt are infinite. Were the whole process
confined to home, it would be hurtful and unsound
enough, but it is worse that even at this moment,
when Franoe is in straits for the means of paying
for her food, she thinks she may go on diffusing
her surplus wealth over every shore.

The fact, alluded to in our City article, that of the
16,000,0001., or thereabouts, now held in the pre-
cious metalsby the Bank of France, only 4,000,0001.
consist of gold, brings practically before us the
grand difficulty with which our money market has
to contend—the want of gold. Were we to ask
our readers to assume that the drain upon the
Bank of France will sud4enly cease, they would
say we were treading upon very unsafe ground, all
the probabilities pointing, we fear, to the contrary
prospect. Then, if we assume—u, in caution,
we ought—that the movement will continue, that
the Bank of France, who hold so small a stock
of that metal, will want a great deal more in the
course of the next few weeks or months, it be-
comes an important question—Where can the re-
quisite supply be obtained, except from the Bank
of England f Narrowing the view to the next few
weeks, we confess we see little prospect of any
gold arrivals adequate to the demand. America
will send us very little, the movements in cotton
and corn, to say nothing of English investments
in American securities, operating as a bar. And
it is worthy of notice that all our immediate
Australian supplies have been used up. The
overland vivifies keep us informed of what is
coming, some weeks before it can arrive. Before
the 520,0001. in Australian gold, which is known
lobe on the way, can be reasonably looked for,
full three weeks must elapse. Meanwhile, if gold
is wanted for the Bank of France, or for any other
quarter, the only stock available is that lying in
the Bank of England. In exact proportion as
that stock diminishes, the amount of our currency
diminishes. Every 1001. in gold that is shipped
abroad is represented by 1001. in bank notes can-
celled. Instead, therefore, of looking for the reflux
of the gold that has lately been taken, and for
the restoration of the amount of currency which
, has vanished, we shall act more wisely by concen-
trating our attention upon the probability of further
withdrawals, and upon the best means of checking
them and obviating their disturbing effects.
The attention of the commercial community in
the metropolis and the provinces being arrested by
the crisis in the money market, there can be no
doubt that transactions have been to some extent
impeded during the past week. Confidence, how-
ever, is scarcely in any degree impaired, and
no mischief has yet been done. Industry
is too well engaged to be lightly affected. Man-
chester, for example, is as bury as ever, although
transactions in cotton fabrics and yarns have
I been almost paralysed by the causes referred to.
Prices are rather lower, with some irregularity,
but much strength is still imparted by the extent
of the contracts in hand. In the woollen trade
there is an absence of animation, but, in general,
good employment. The lace and hosiery depart-
ments are described as dull but healthy. There is
no revival in the iron trade, but the hardware
branches exhibit activity, and in the colliery and
mining districts there is full work and good wages.

Ma. ALEC; M.P., AND THE CHANCILLOR OP
rne EXCENNEL—TM following letter from Mr. Ellice, is
reference to his letter which we published last week, was
received on 'Thnriday matting by Soden, Peg., ex-mayor
of Coventry:—•'Durham. November 10th, 1860. My dear
slr,—Mr. Gladstone complains, rod Patty, of the ex-
' of "concealed," which I used inadvertently in the
hurry of writing my answer of the Slat Oct. to your letter,
on the subject of the drawback on paper, which was pub-
lished in the Coventry newopepers, and which was copied
subsequently in three of London. I mad not say that I
disclaim entirely the intention of Imputing to Mr.
Gladstone the least ooncroalment in the Neese which
I admit the expression will convey, and I regret
exceediegly having gives him the trouble of an appeal
to me to correct it. Nobody eon doubt, and cer-
tainly I do not doubt, that his statwwast an the
budget contains a freak and fall explanation of his sincere
convictions on all points connected with it. All I intended
to state was my own impression that if adequate foresight
bad been used on the °manioc, sod the anticipations which
other people entertained of th peobaide demands for the
Chinese war, and the coot off •6caii and which were
subosqusotly realised, bad formed pert of the considera-
tions on which parliament were called upon to repeal the
paler duties, the result night have boos different I
neither intsndsd to impute to Mr. Gladstone that he saw,
at the time, rein= to entertaia Shams az...Magian ; and.
least of all, that if he had entertained m. be would not
have stated them with his usual frankness and siocerity.—
lem always, my dear air, yours very taithhilly, Bnwaas
ELLICR—H. Roden, /Isq., Cosestry."
The Economist of Saturday last contains a
memoir of the late Right Has. Jana WWes, M.P.,
the founder, and until a recent date the editor( of that
journal. This memoir is not a panegyric but a faithful sx-
hi hitiow of Mr. Wilson's character from intimate aptotalut-
ince. Interesting as it is to trace the ascent " from the
manufactory of a small Scotch hatter in a small Scotch
town to the English Treasury and the Council Board of
India," it Is even more interesting to learn how Mr. Wilson
acquired In unofficial life the aptitudes which made him
useful and 11•CeSakr7 to his country. Mr. Wilson's career
belongs especially to the history of tniddle.claas achieve.
ment, and to all who feel a pride in that history this memoir
will be moot welcome. Its first publication in the pages of
the Economia' was due to the readers of that journal, but
we hope shortly to meet with It in some form convenient
for permanent preservation and reference.

• gin Court.
•
vruipsos om 0“,
IdajeatyliAinner party yo
2t,
Alince °CV's/a, Prince Alfred and the
artagels, *be Duke and Du
ers,
Duke cif Veseastlii, the Furl of St. Tiaeou‘
Viscounts= Sydney, Major-General the Hon. R. Bruce
Hon. Wellesley, the Hon. Itsn.
Jgaes clerk, Lieutenant-Colonel Keppeiregpfillitara
Bt •
The band of the Seas Fusilier Chards played during
dinner.

Her

Fo►. if.
inclided

The Queen did not quit the Castle this morning, owing to
os unfavourable state of the weather.
Princess Alice, Princess Helena, and Princess Louise, rode
the riding•house.
The Dachau of Kent visited her Majesty, and took
luncheon.
The following visitors left the Castle to-day :—Purl Gran-
ville, the Duke and Duchess of Somerset, Viscount and
Viscountess Sydney, and the Duke of Newcastle.
Her Majesty's dinner party included the Prince of Wales,
Prince Alfred, and the Princess Alice, the Belgian Minister
and Madame Van de Weyer, the Earl of St. Germans, Lieu-
tenant-Colonel Keppel, Major Cowell, 8.E., and the follow-,
log visitors, who arrived at the Castle in the afternoon
Tie Duchess of Sutherland, the United States Minister and
Mrs. Daily Lord and lady John Buwll, Viscount Palmer.
ston, and the Hight Hon. Sir Edmond W. Head, Go►ernor-
General of Canada.

The band of the Royal Horse Guards played during
dinner.

Her Majesty's private band afterwards performed in the
dewing-mom.
SUNDAY, NOV. 18.
The Queen and Prince Consort, the Prince of Wale',
Prince Arthur, Prince's Alice, Primer Bekaa, and Frill-
cosi Louise, the Ladies and (katlama al the Overt, and
tie domestic household attended divine sorties this morning
ia the Private Chapel. The visitors staying in the Castle
were at the service. The Rev. F. C. Cook, one of her Ma-
jesty's Inspectors of Schools, preached the sermon.

A Cabinet Council was held on Sat at the
official residence of the First Lord of the
in Downing-street. The Ministers present were
Viscount Palmerston, the Lord Chancellor, Earl
Granville, Duke of Argyll, Sir G. Cornwall Lewis,
Lord John Russell, the Duke of Newcastle, the
Right Hon. Sidney Herbert, Sir Charles Wood,
the Chancellor of the Exchequer, the Duke of
Somerset, the Right Hon. T. Milner Gibson, Sir
George Grey Lord Stanley of Alderley, the Right
Hum. C. P. Villiers, and the Right Hon. Edward
CardwelL

A deputation from the Anti-Opium Association bad an
interview with Mr. Samuel Laing, at the l'esminry, on Sa-
turday. The deputation oonsisted of Mr. R. N. Fowler
(president), Rev. Henry Richards, Mr. Josiah Browne,
Mr. Edward Mardi, Mr. Edward Newman (Secretary), and
Dr. de la Porte. The deputation was intscidased by Mr.
Charles Gilpin, M.P.

" The invitation of the American Minister on a
visit to the Quoin at Wiodpor," remarks the Observer, " so
soon after the arrival of the Prince of Wales, to company
with the heads of the government, is a prompt and graceful
sclmowledgment of the hospitality of the President, and
the cordial attention and the enthusiastic reception of the
heir to the Britt& throne exhibited by all ranks and claim
of the people of the United Stake."

The Prince di Mirano and the Marquis Oardoni
have arrived at the Brunswick, Jermymetreet, from Italy.

His Excellency the Minister of the Netherlands
has returned to London from the Continent to resume his
diplomatic functions st this court.

The Duke of Newcastle is staying at 2tfaurigy's
Hotel

The Marquis and Marchioness of Aileebury have
goes for a few days to Polkeetone, after which the noble
marquis and marchioness go to Scotland on a visit to the
Countess of Dunmore, to be present at the nuptials of Lady
Oman Murray and the Earl of Southask.

The Earl of Shelburne leaves Lansdowne House
today for Scotland. The countess is staying at Bowood, on
• visit to the Marquis of Lasadowne.
. _

The Earl and Countess of Yarborough have
arrived at their mansion in Arlington.atreet, from Brighton.
The Earl and Countess of Arran have engaged a
residsnoe at Bt. Leosanrsainami for the winter season.

The Right Hon. Sidney and Mrs. Herbert will
have town on Wednesday for Dunmore Park, on a visit to
the Countess of Dunmore, in order to be present at the
marriage of Defy Bare Murray and the Fk.rl of floutheek.

On Trhimmliy last, at a meeting of the Peers of
Scotland, assembled at Rolyrood Palace, Baron Rollo was
nnesnmously elected to sit sad voto in the Rowe of Lords,
in the roam of David, Banal Le►en and Melville, decamped.

The Lord Bishop of London has conferred the
chancellorship of fit. Paul's Cathedral, vacant by the death
of the Rey. Henry Bounce, LA., an the Right Res.
George Trevor Spencer, D.D., some tinge Lord Bishop of
Madras.

The British Commiaaion for the negotiation of the
new French tariff have completed their labours, sod haws
left Paris. Mr. Cobden is about to proceed to the south of
France. Mr. Nelet sad Mr. lack have returned to their
duties at the Board of Inds.

Mr. Frederic Johnson, Vioe-Consul at Acapulco,
is appointed her Majesty's Consul at Tampico (both is
Mexico), in the room of Colonel Cumberlege, demised. Mr.
Orignon is appointed her Majesty's Consul at Rigs, and Mr.
Johnson herliajesty'aConeul atTeneriffe.

Orda St. Paul's Cathedral will be opened for the '
nary services on Advent Sunday, December 2. The d
and chapter are unwilling to discontinue any longer Divine
worship in the cathedral, tho►gh the improvemente in the
choir are by no means finished. The dean and chapter and
the eommittee have bees unable to carry out more com-
pletely this portion of the great projected improvement.,
partly from want of time, partly from the want of funds.
It ids moposed to open the dome area and the new organ
with a musical festival ou the holyday of the Conversion of
St. Paul, Friday, January 25, under tho direction of Mr.
Roue, orgauisi of the cathedral. Oa the Sunday after
(January 27) the special evening services will commence.
A snowstorm took phwe ►t Birmingham on
Saturday. It commenced early in the morning and COD-
tinned during the greater part of the day. The cold was so
peat that in exposed places the snow lay for a long time
after it felL