The Express.
London, England, 1867-08-05 00:00:00

BRITAWM.

Tim Evros°. ARLIF atir; Olt, THE ROAD AND ITS
RIIO:R.s.—Tim Champion Skaters; NIL C. Wo.sinuni Little
Levitte Jessie Nene ; and Mr. J. Plumptoll —And JACK 0'
LAN TERN. Mr. Reynolds and Mks S. ?dila.

HIGH WATER AT LONDON BRIDGE.
Mit DAT —Morning. Lb. 27w.... —Afternoon, Mt 4ini.
TO-110a0311—Mornlan. 60. lAA Go. .S.Sas.

LONDON, MONDAY, AUGUST 5.

Tax reduction of the Bank rate to 2 per cent.
has been speedily followed by the announcement
of a new Russian Loan of 12,000,000!. nominal
capital, at a price which will involve the raising of
about seven and a quarter millions in actual cash.
The operation is a large one, but Russia is accus-
tomed to borrow considerable sums at a time.
Nevertheless, the Imperial Government seem to
ha ve had some doubt whether the British public would
he inclined to increase their already very heavy
investments in Russian stocks, and have therefore
determined to bring out the new issue simul-
taneously in the markets of London, Paris, and
Amsterdam. This decision was prudent, since it
is not very likely that subscriptions to any
material extent will be received here. Of late
years English investors have been rather surfeited
with Russian stocks. Since 1860 we have had
five loans at short intervals to the amount of con-
siderably more than forty millions nominal capital,
and although foreign purchasers have taken a
portion, the greater part of the bonds must still
be held here. Besides these operations Russia
has been borrowing largely at home. It is very
difficult to arrive at the truth of the financial posi-
tion of the empire, but it can be no exaggeration
to say that the addition to the public debt in the
last eight years is understated at sixty millions.
It is, therefore, not surprising that Russian bonds,
like their Turkish rivals, have been latterly a
drug in the market. The uneasy suspicion has
been aroused that if once the power of borrowing
ceases, the dividends on the existing issues will
cease also. We have had more than one example
of the kind. In all fairness, however, it is only
right to admit that as regards her foreign credi-
tors RUSaia has invariably acted with the most
scrupulous good faith. In all the strain imposed
by the Crimean war the English bondholders, al-
though enemies, punctually received their interest.
The question chiefly worth considering is the
salutary change that has come over the public
mind with respect to these foreign loans. The
time has passed by when each new creation of
stock was eagerly competed for. Not long ago
the British public were ready to contribute their
surplus funds towards every kind of extravagance,
and even wrong, in which despotic Governments
choose to indulge. As far back as 1850 the re-
monstrance of the late Mr. CODDEN against the
Russian loan, then raised under some plausible
pretext, but really destined to meet the expenses
of the Hungarian campaign, was loudly decried.
In point of fact, capitalists were recommended to
look only to the character of the security, and to
take no heed of the way in which the money was
to bo applied. Many similar instances have
occurred since. The investing public were not to
be influenced by mere moral considerations. They
regarded the affair as purely a matter of business,
and so long as the dividends were safe
they cared for nothing further. It is
to be feared that moral considerations have
as little weight now as then. Fortunately,
however, some notorious instances of recent de-
fault have convinced investors that lending to
foreign governments is not such a profitable andl
pleasant transaction as it had hitherto appeared.
Even where national faith was rigidly maintained
it was not very agreeable to the buyers in previous
loans to find their securities depreciated year after
year by a succession of fresh issues at constantly
lower prices. The consequence is that the public
have taken alarm. Where subscriptions were
formerly many they are now few. Even the
Spanish Passive bondholders, although naturally
anxious to obtain a settlement of their claims,
demur very strongly to an arrangement which in-
volves an immediate or prospective cash advance.
Self-interest has effected what abstract principle
was powerless to do.

It is to be hoped that for some time to come, at
least, we shall hear no more of foreign leans
Indeed, if Russia stands but a poor chance of suc-
cess in offering a stock that yields about 7 per
cent., it will be hardly worth while for Spain or
Portugal, Greece or Turkey, to come forward with
their ever-recurring propositions. As we have
more than once pointed out, our capital can be far
better employed in national improvements, whe-
ther in England or the East, than in bolstering up
the credit of foreign sovereignties, whether mili-
tary and aggressive or weak and tottering.

SINCE the notice a fortnight ago of the proceed-
ings during the past half year of six out of the
eight principal London joint-stock banks, tho re-
mainiir; two, the London and County and Conso-
lidated, have held their ordinary meetings. In
both cases the results may be considered to be
fully as satisfactory as those shown by the other
establishments. In one respect these two com-
panies exhibit a material difference, but that
is rather to their advantage than otherwise. The
capital paid up, compared with this time last year,