The Express.
London, England, 1861-01-28 00:00:00

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Inu ~.ono, lint Wolof% Ti minors. Sisson. rhi
•hols wool liecksions: 31 Plow rliollos.—Asel QUSIEN
L %I'l WSW %N. 0 Nil COLIMA= or, ands Houle
w.# Herr OA, TheLoolorep. Ilia wLWeekes.

NCIIIIII.
TRU LTIIMInia. RUlf BLAA.FILI Mown. Pechter, Kull Potter. 3n.1
Nana. YIN Monk—Atli pealemalme. ealkd RI OKI
C1LV,4,4 • or, Yeekrdti Min, sail The Kum .4 the Cerribhee
I Omsk Yens. limpness Mine. Y. Ruellatre, Mr. A. F.rest.

ST. JA3IIIIWII.
TRH Emma. MY WI/[>• JOURNAL—THE NUS of ST.
Meenes.A.Whps NW Lawry. Mrs. tto, kinetiam White.
--Mkt 6NDYIIIioN. %owe. C. Young and Delmore Mimes St.
mee,tterbert. sad /temer.—Culaniesee at hAlt.post 7.
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BILITANNIA.
TIM ITINDIS. TIE MUNCIE AND THE OERL M.N.es
Tilt, Parry. Jean fad., Ruby. and Newham MIME: C 'Mapfun,
Miss A Distal/es. Mein W. Cranford... And A MI:••••Mil. FRI Of
Tat IEA. Maws. ltoporills and smytlison. Mr. E. l'-trnol.L

LOU MATS AT moos BRIDGE.
ramir=nownini. Afternoon. Mt. rim
Atknock 411. 30.

LONDON, MONDAY, JAN. 28.

IMF. more favourable conclusions which we
ventured to draw with regard to the probable
course of the foreign drain upon the money market
have boon justified by the result. The position of
the demand for America is summed up in the fact
that the packet which left Liverpool on Saturday
took only 53,130/. in specie, being about one-
tenth of the amount shipped by a single steamer
during the height of the demand, and one-fifth of
that sent by the packet of the previous Saturday.
The improvement in the American money market
continues. According to the latest letters, specie
is accumulating rapidly in the banks of New York
—the American commercial centre ; the de-
mand for loans is decreasing ; the rate
of discount for first-clam short bills has fallen
to 6 or 7 per cent. ; and the exchange on
London maintains its improved rate of 105 to j,
with a tendency in our favour. The position of
the drain upon us for France is, in like manner,
epitomised in the fact that the banks and houses
which received a sum of 300,000/. in Australian
gold during the past week experience considerable
difficulty in disposing of it for exportation. So
much is this the ease that 20,0001. of it was
carried to the Hank of England on Friday, sad
more is likely to be purchased by that astablidb-
ment. Yet, although foreign affairs in their
financial aspect have improved, our money market
is very tight, mid a feeling of increased watchful-
ness and

prevails. This arises to
some 'stunt, perhaps, from the numerous

failures which are reported from day to day, parti-
cularly in the Levant trade. It would be wrong
to attach much importance to the Indian Loan, for
the amount is not large, and will be principally
spent at home. The chief cause of the existing drill.
gency in the money market is evidently the attitude
taken by the Bank of England, the managers of which
for some days past have been draining the market
of money, by selling government securities or by
borrowing upon them. The Bank are not satisfied
with the position of their reserve. The draughts
which have been made upon the notes in their till
during the last Ave weeks are shown below :

_
Idworve, of A Nate fres
NoUs. praviou• Week.
Dn. 26 .126,224,075 Decrease .. 1e,432,496
.tin. 3 . 6,g99,g15 Demos
JO.. 9 . 5,5101.115 Ihcreess
..Ilio. 16 . k0P11,1115 Memos MOO
J,,0 ?A . 5.22/VLID lacrosse

The total thismase within the period referred to
is as much as 1,696,776/., and the aggregate of
notes held is new only 5,228,300/. This is but a
small sum, emidiering the magnitude of the
Bank's liabdilles, yet it forms the while of the
funds at the disposal of the Bank to meet
19,333,651/. of deposits, and to satisfy the de-
mand of the commercial public for discounts.
Were the Bank to stop discounting there would
be a panic. As they cannot refuse, then, to take
in private escurities, they are rightly turning
their attention to the means of reducing the
amount of their government securities. This
course wee the more requisite because the return,
dated the 9th inst., showed that they had been
called upon to increase their stock of government
securities by 631,5531., owing, no doubt, to ad-
VISION on deficiency bills for the temporary as
of Government. The returns since
issued show that the Bank had succeeded in re-
ducing their stock of government securities on the
16th inst. by 1,236,0001., and on the 23rd by an
additional sum of 336,2911. The fact that this
heavy daemons in the government securities has
been accompanied by a net (let r. dm. of 289,8151.
in the reserve of notes (after allowing for the in-
maw of 146,6751. shown in the reserve in
the last return) proves to how large an
extent the Bank are paid for their
government securities by means of drafts through
bankers and others upon the private deposits in
the Bank. It is very difficult for them to work
up their reserve by these means. Their chief gain
is that, although their reserve has not increased,
their liabilities to their private depositors have
decreased 2,347,1321. within the last fortnight.
The following glance at the result of the bat
four weeks' changes in the Bank returns may be
useful :

Doe. 92 Jaw Imresae Dec,.
C
Inert, of N. 4 MIMI MKS* ,6116,776
4:..isa sad 9•1119912.114119 moms.

Deporns Unial %MUT 4,411.919
4bn IMP.IIa ALAMOS 1113ilkin 1,167,014

al Digooft Wis.ist Kent.fts

00....5.. Si.

keens kaa.ao
Otheresewillas *..m 111.1/110110

Total of ammiltise We 11,1114 /8"416 1,379.165
It will be seen from this statement, which
°ashrams the dividend period, that, whilst there
has been a total decrease of 3,254,9211. in the
deposits of all kinds, the stun accruing to the
Bank from the redemption or sale of government
or private securities which they held has been
only 1,379,155/. ; hence the decresee of
1,695,7751. in the reserve ; hence, also, the
desire of the Bank to relieve themselves of a por-
tke of the government securities which they still
hold. Meanwhile, amid the inconvenience which
these operations on the part of the Bank occasion,
we must remember that the present tightness of
the money market is calculated to put the conti-
nental exchanges still more in our favour.
We regret to observe that the reports of the
condition of trade in many districts are becoming
decidedly less favourable. There is leas enter-
prise, less actual business, and less employment for
the labouring classes. The complaints are as yet
more local than general, but some interests are
suffering rather severely. The cotton and woollen
trades are relatively in the best, and the iron, silk,
and hosiery in tie worst position. It is not to be
denied that, what with the state of the American