The Express.
London, England, 1860-10-08 00:00:00

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LONDON, MONDAY, OCT. a

Tim rather remarkable changes presented by
the last ri.tnin of the Bank of England have re-
called attention to the condition and prospects of
the money market. A month or two ago, there
was every probability of some pressure arising, the
harvest having been placed in count:linable
jeopardy. Had the bad weather 'sated a fortnight
longer, the consequences would unquestionably
have been very serious. The financial world took
warning in time, and made due preparation ; and
to this circumstance is principally due the compa-
rative ease which has been experienced during the
last few weeks. It would appear that the demand
is now him-aging. owing to a variety of circum-
stances. There is no doubt that, although we
bare escaped a failure of the harvest, we shall con-
tinue to import grain largely. This is already
telling upon the exchanges. On the one hand,
the Continental exchanges are drooping, and now
allow of the re-exportation of all the gold that
conies to hand, besides entailing a prospect of
withdrawals from the Bauk. At the same time,
the Ameriemi cichiuwe is declining, wider the in-
fluence of increased shipments of corn, and of pre-
parations for the transport of the new cotton crop.
These movements, besides tending to discourage,
for the time, remittances of specie to this side,
stimulate considerably the demand for money.
Nor is it only here that these features are pre-
sented. There is more activity in most of the
markets ou the Continent. It would seem as if
the Emperor Heroines's repeated exhortations to
the commercial classes to have confidence were not
entirely ineffectual, or that the hope is now begin-
ning to be really entertained, that the revolution in
Italy will not lead to any European embroilment.
Trade, aecoiiiingly, is becoming more active, and
capitalists are demanding a proportionate advance
for the accommodation which they offer. At
Paris the money market has become rather tight,
and the terms in the discount market are
now equal to those of the Bank of Francs,
3} per cent. The Bank of Vienna last week
raised nu rate of discount from 5 to 5} per cent. ;
and news was received on Saturday that the rate
of the Ban% of Frankfort has been advanced from
2to 3 per cent. Any rise in the value of money
abroad gists, of °owes, an unfavourable turn to
the exchanges. Hitherto, owing chiefly to the
superior activity of our trade, which is only par-
tially affected by political anxieties abroad, the
rate of strawy here has been above that current
ou the Continent The tendency of capital has
therefore bceu rather to flow into than out of the
country, wore especially as there is no appetite
for foreign investments. But if the rates of dis-
count advance abroad, there will be • prospect of
a similar alteration taking place here, in order
that de, balance may be kept straight. This
movement, therefore, together with its effect upon
the exchanges, and upon the current of bullion, must
be watched. The prospect of any sudden alteration
in the rates of discount is perhaps to some extent
diminished by the approaching payment of the
dividends. The recent increase in the private
securities in the Bauk of England Las not been
cetank.alee ; and it is thus fear to infer that the
dividend money has not been anticipated, or
" dissounted," by the commercial public to the
extent usually witnessed. The general market
will, therefore, be the more freely supplied, and there
will not he a necessity of borrowing much from
the Bank. On the other hand, the Bank, regard-
ing the pubitiun of affairs from their own point of
view, will not lose sight of the fact that the
advances w!irch they make during the period when
the transfer-books are shut having upon the pre-
sent beim leas than usual, they have the
less coming back to them „when they pay the
dividends.

The really satisfactory point to be noticed in
any discussions respecting the course of the money
market is the absence of alarming elements. The
deficieucy in our harvest is, happily, not greater
than eau be supplied. We can afford to pay for all
that is required, and foreign producers are only
too glad t transmit hither a portion of their sur-
plus. The large excess in the production over the
consumption of corn in America will operate as a
powerful chock to the rise in the corn markets. It
may be affianed with safety, then, that, if the de-
wand for money increase, there will be no cause
for uneasiness. There is nothing in a rise of half
or one per cent. in the rate of discount that need
trouble the legitimate trader. It is not a dearer
but a disturbed money market that would embarrass
him. As the harvest is nut a failure no cause for
reel disturbance ought to exist. There are, it
is true, scow arrangements in the discount market
whieb tend to aggravate pressure when it arises,
but we may expect these to be speedily corrected.
It ought to lie our object to lasks every part of
our financial machinery work as smoothly and as
easily as 1.-wAiLle.

The cotton manufacture of this country oon-
tinier to exhibit a marked degree of prosperity.
During the last three or four weeks there has been
a consideralde reaction from the previous declaim
in the prices of manufactured goods. In saeN
quarters the improvement is regarded es partaking
too largely of a speculative character, more esp.-
chilly as the production of goods and yarns is very
considerable, aad is still being largely increased, as
new manufacturing power is put to work. It mast
be admitted, however, that there are no signs
that the increase in the production has as yet
sixoseded the &mad for oonsuniptii,n, for even
duruij tl c dullest inontha of the year the accumis-
of stocks was nut important. It is remarked,
too, that at present the spinners and manufac-
turers sr • nen: ly as deeply engaged beforehand as
they have been at any period during the last few
years. This fact greatly increases the probabi-
lity of pre. vs being well maintained up to the end
of the year. Thee fax the producers appear to
have had the solvantage over the shippers. The
producer., o. ..rre Ldexan. Ut. FAY and Co.,
" care little about the result (of consign.