The Express.
London, England, 1861-10-14 00:00:00

TO OUR READER&

SPORT' NU LNTELLIG &NM

A late edition of the &VMS is published every
evenr4g during thu racing season, containing the
restate of the dav's room

ONCE more France is pruning upon our money
market. The signs of • financial storm in that
country hare been growing more distinct for some
time pant. It was known that the seasons had
been unpropitious and the harvest unfavourable, but
until recently nothing definite was ascertained as to
the extent of the deficiency. It was remarked as
singular, however, that, whilst gold was pouring
into the Bank of England, and the rate of interest
in this country was falling rapidly, the rate of the
Bank of France remained at five per cent. The
cause of this gradually became apparent. The go-
veniment, which, from the extent and minuteness
of its organization throughout the country, enjoys
almost • monopoly, certainly a priority,
of information on all points concerning the condi-
tion of the people, had ascertained the truth as
mar& the harvest before the mercantile public
had begun to have more than a glimmering of
light. Thu Government, accordingly, effected
heavy purchases of corn abroad, and its example
was then followed by • host of dealers and specu-
lators. The supply of bills created in England and
other countries where the purchases of grain on
French account were effected tended to keep the
exchanges in our favour, thus preventing
the gold imported from passing by the usual
channels in transit fieresoh London to Paris.
Gradually, pressure arose upon the Bank of
France. Gold flowed out in considerable quanti-
ties to Italy and other parts. The French Bank
raised a note of warning by advancing their rate
of discount from 5 per cent., at which it had stood
for many months, to bi. Many persons here
treated this movement of per cent. lightly.
Others, knowing that the Bank of France do not
disturb their rate of discount on inadequate
grounds, saw in it the beginning of a aeries of
financial movenienta deserving of watchful
attention. This view was subsequently con-
firmed by the rise in the French rate
of discount to 6 per cent., a step which
was quite explained by the flow of gold
from France to many European points, and—what
is not often witnessed—even to England. It is
believed that the Bank of England, in the course
of the last few mouths, have obtained • consider.
able amount of French gold coin. The briskness
of the corn market, in London and along the
whole of the eastern coast of England, where the
influx of French money has for some time past
excited the notice, nut to say wonder, of the local
journals, throw further light upon the situation.
The facts which have since transpired prove
in a striking manner the accuracy of
the information upon which the French
official and non-official corn buyers have acted,
and at the same time the completeness of the or-
ganization--eineutially • French talent—which
has been brought to bear upon the matter. It is
now computed by the agricultural journals that
France will have to import corn and flour to the
amount of at least fifteen or twenty millions ster-
ling during the period between the last and the
next harvest ; and when we bear in mind that
France is ordinarily • very large exporter instead
of importer of grain, the force with which the balance
of trade is thrown against her may be imagined.
Fier difficulty is the greater, because. (a point which
concerns ourselves not • little) the harvest has
been bad in many other parts of Europe, including
Germany, Spain, Portugal, and, probably, Belgium.
The peculiarly adverse character of the session in
France is further indicated by the scarcity of food
fur cattle, in consequence of which the price of
meat has risen to an unusual height. In Paris—waste-
ful, luxurious Paris—this difficulty is especially
felt, the price of the best joints of meat being at
present not less than 10d. to I Id. per lb. The
41b. loaf of good quality is sold in most parts of
that city at one franc, or 10d. Upon the prin-
ciple, we suppose, that a despotic government is
bound to take paternal action in all sorts of
ways, or be held responsible by the ignorant
masses even for the effects of tho visita-
tions of Providence, the price of bread is once
more being regulated in the metropolis by direct
official interference, which can hardly fail in the
long run to eventuate in mischief.

The question—what proportion of the aggregate
demands upon her has France as yet met I—is a
most important one. The materials for framing
an answer are, unfortunately, defective. The
more general impression is that the drain will go
on for some time. It would be absurd to suppose
that the deficiency in the harvest has yet been recti-
fied by foreign purchases, and moreover, a large pro-
Portion of those purchases has not yet been
liquidated. Who ever heard of the effects of •
bad harvest being got over in a couple of months?
And the failure of the crops is not the only cause
of pressure in France. Her financiers have con.
stantly too many irons in the fire. Speculation,
like the government expenditure, is always far in
advance of the capabilities of the country. At
the very time when the Bank of France has been
wanly taking in sail, and when the ascertained
deficiency in the yield of the crops has
been causing such vast purchases of food
abroad, French capitalists have been hardy
enough to take some nine or ten millions
sterling of the New Italian Loan. This they
now hold at a diacomit, and will find difficult of
retransfer to the Italian markets in any large
mains. We knuw as a fact, that at a re-