The Sun.
London, England, 1862-07-23 00:00:00

" 3. CASH BALANCES.

" After all, however, I feel that the real test is in
the cash balances.

" Accountants may err or differ in opinion as to
entries in books, but rupees are facts.
" Now, how does Sir C. Wood meet this ?
" He meets it by the general statement that cash
balances are not conclusive, because they are mixed
up with other matters, such us 10,..u5, remittances
to meet home charges, private deposits, prize money,
and so on.

4, This would have been a perfectly good answer
if my statement had merely been a general one, that
because the cash balances had increased by £6,000,000
since I went to India, therefore I must be right in,
saying there was a surplus.

-4, But I said nothing of the sort. My statement
both now and in my Budget speech in April, was
something altogether different, and was specific and
not general.
"I said on the 30th of April, 1861, my cash
balances (after deducting currency reserve and
bullion deposits) was a given figure—viz.,
£13,678,121 ; on the 30th of April, 1862, it will be
L 17,690,000
then
is and the only error in this was that it
has really turned out to be £l7, 783,978. Here
is an actual accumulation of £41105,857 to begin

with.
" Now, looking at my various deposit accounts
for prize-money, family funds, Vic., it is a fact, certi-
fied by the Accountant-General, that I have paid in
the course of the year rather more than I have re-
ceived, and on the whole slightly diminished my
liabilities in India.
" The only deduction therefore from this
£4,105,857 is for remittances to England, to cover
the charges of the year for India in England,
paid
and not covered by expenditure in India, on ac-
count of England, for railways or otherwise.
Now, no statement ever sent from England ever
made this remittance anything like as much as
£4,000,000.
A carefully prepared statement in de-
I tail by the Accountant-General of India made it

MANCHESTER, July 22.—There has been a rather
considerable business in yarns at last week's prices,
but it has consisted chiefly of resales from stocks
holding by speculators. For spinners very little
has been done, buyers being unwilling to give the
prices they demand. The business reported em-
braces nearly all kinds of yarn, but the principal
sales have been to shippers to India and to German
houses. The home trade have only operated to a
moderate extent. For the Mediterranean not much
is doing. For the lower qualities of yarn, made
from Surat cotton, sellers report in some instances
rather easier prices. In the cloth-market there ap-
pears to be a complete stagnation for all markets
and for almost all kinds of goods. The prices given
last week are quite unobtainable to-day, but at the
same time manufacturers are unwilling to give way,
and are not pressing sales. An impression pre-
vails that with the cotton in Liverpool and that on
the way from India we shall have quite enough to
last till Christmas, and a surplus, at the present
rate of consumption. Under these circumstances
the feeling is that the present high prices for the
raw material cannot be maintained, and this to some
extent accounts for the very little business doing
here as well as at Liverpool. The present rates for
yarn and cloth are insufficient to cover the cost of
cotton, and, as stated above, sellers are unable to
find customers, even at the present relatively low
rates they are asking. Since last week about 300
more operatives have been thrown out of employ-
ment: in Manchester, making 9,881, besides 15,71
on short time, out of a total of 47,865 usually e -
ployed. Bad as this is, it bears no comparison with
the proportion of workpeople partially and wholly
out of employment in such towns
as Preston, Black-
burn, Stalybridge, Ashton, Stockport, and Wigan.
Messrs. John Slagg and Co. report of the cloth-
market :—" There is little or nothing doing to-day.
Since the receipt of the news by the Glasgow, on
Friday last, business has been
. almost entirely sus-
pended.nominally the same as last
Pricey
`
no
week, but there ar:re making to test them."
22,--There was a rather limited at -
offers
LEEDS, July
buyers from a distance in the cloth-halls
tendance of
. and generally operations were on a
this morning,
small scale, so that the bulk of cloth sold was rather
below than above an average for a Tuesday's mar-
e manufacturers in the adjoinin d' •
mar-
get. The g districts
continue to be well employed, especially those en-
gaged in heavy goods, and, though the markets to-
day have not been so animated as some late ones,
the condition and prospects of the woollen cloth
trade are as satisfactory as can be expected at the
present time.
ROCHDALE, 21st.—The flannel-market to-day
was scarcely so good as last Monday, and a less
amount of business was done There is a little more
doing in heavy and low goods, and there is a fair
demand for liuseys •, but the fancy trade is not so
brisk as it was, and. the Yorkshire goods trade is
again dull. Prices are well maintained by the
manufacturers. Wools, too, keep up ; and, indeed,
the high prices asked by staplers keep transactions
to what wool is wanted for almost immediate use.

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eeseee.eee se-e!..e
GRAND TRUNK OF CA la.
- t • • ***/
The report of Mr. Mratkin has jus,
by the London directors of this company. Pie cG6-
gratulates the bond and shareholders on having
escaped many dangers, and that they have now the
power to get rid of their heavy floating debt ; that
the fixed rents of the leased lines will be .educed ;
that a more equitable mode of settling the postal
payments had been put in practice; and that the
means of reorganising and better controlling the
manaeement of the undertaking have been pro-
vided. The accounts of the working of the year
ended 30th of Jane last show a comparative in-
crease of net profit of 60 per cent. over the corre-
sponding period of 1860-61, and the expenses in
the hall-year ended the 31st December lest have
been reduced to 77 per cent.,
as against 841 per
cent. in the corresponding period or 1860—and
notwithstanding that many charges on capital ac-
count are debited to revenue, and a large otitleY on
the ro was made, iu the half-year first quoted-
The credit of the company may, therefore, now be
restored, and the railway worked without dagger of
interruption commercially,
and to an increasing net
profit. Three days Lefore the prorogation of Par-
liament, which took place on the 9th of June, the
Grand Trunk Arrangements Act was, after a most
vigorous and in some cases questionable opposition
in the Lower House, passed in the Legislative Coun-
cil, where it met with unanimous support-. The
clause providing for a postal capitalisation in pro-
vince bonds was rejected in the Lower House,
and various detail clauses of less importance were
in the haste and excitement of discussion on the
eve of a prorogation, left out. It will now be the
o " the bond and shareholders, upon whose
vote the operation of the Act depends, to consider
and decide upon this measure, which, though not
what the suffering interests of the Grand Trunk
Company had a right to hope for from the justice
of Canada, contains most important provisions, en-
abling the clearing away of the presence and dan-
ger floating debt, permitting management from.
England, and giving generally breathing time and
an opportunity for reorganising the concern on that
thorough commercial foundation from which all real
improvement must proceed. The Act devotes the
postal and military revenue to the extinction of
simple contract debt, and enables the company to
issue, in liquidation of such debt, bonds or securities
to represent that revenue. The postal arbitration
is still proceeding, and the Hon. Chief Justice
Draper has been accepted on the part of the com-
pany as the third arbitrator, to act in case the arbi-
trators of the province and of the company do not
agree. The result of the arbitration will probably
be known before the day of the general meeting of
bond and shareholders. The lessors of the Detroit
and Port Huron Railway have agreed, subject to
some details, to accept the reduced rental of
£22,000, instead of £36,000 a year. The Board of
the Atlantic and St. Lawrence Company in Ame-
rica have agreed to recommend their constituents
to consent to, a temporary modification of the terms
of this lease also, which at present involve a heavy
annual loss. He expects that a reduction in the
rent of this line of £12,000 per annum will be
effected, thus making a saving of £25,000 a year on
the leases. Mr. Brydges will now devote himself
exclusively to the Grand Trunk Company. He has
already reduced the expenses at the head office at
Montreal alone, amounting to nearly £2,700 a year.
From the report of two competent engineers it ap-
pears that the expenses of the locomotive department
(L 186,425) can be reduced by X 27,740 per annum
at the least; and in the car department the expense
(X 68,139) can be reduced by X 11,506, making to-
gether a saving of £39,246 per annum. The Grand
Trunk Arrangements Act contains permissive
powers to raise the £500,000 " equipment mort-
gage " proposed by the select committee; but Mr.
Watkin does not recommend that those powers
should be made use of for the present. The
company's stock of engines and cars, if carefully end
economically worked, is adequate not only for the
present traffic, but also for a considerable further
increase. And many of the purposes to supply
which this mortgage was proposed have been or are
being otherwise provided for. The sidings required
for the accommodation of the traffic and the safo
working of the railway have already been put in at
the cost of revenue and out of the stock of the en-
gineering materials on hand (valued at £40,105).
lie submits whether it is thecreet, until the
conclusion of the civil war in America justifies
the making—which at present is impossible—of
reliable calculations as to the business of the future,
to remit more money to Canada for any railway pur-
pose or railway project whatever ; and whether it
is desirable still further to countenance that depen-
dence upon a constant outlay of new capital which
has paralysed the energy and reduced the spirit of
contrivance of the company's staff. There is a portion
of their railway, 209 miles in length, in the United
States, which is seriously affected by the loss of
trade caused by the civil war. Mr. Watkin sug-
gests, in case more cars should be required for
an increase of traffic on the railway, that those en-
gaged in mercantile and other operations should
provide their own stock, the company encouraging
this system by making a liberal allowance to the
car-owner. There now appears to be a reasonable
probability that the extension of the railway from
Riviere du Loup to Halifax will be constructed
out of moneys raised by the provinces, under the
guarantee of the bonds by the home Government.
With regard to working the traffic he states that
there is no room for waste ; they cannot afford, as
they have till recently been doing, to run passen-
ger trains at high speed in such abundance that
the total traffic has been worked at a very consider-
able loss ; neither can they afford to run half-
empty trains, nor to keep up profitless stations, nor
to wear out their road prematurely, nor
to run avoidable night trains, nor to carry influen-
tial portions of the population free of charge,
nor
to pay
higher wages and salaries than may be com-
mercially necessary out of political or any other
reasons whatever. Keeping these simple practices
of business in mind, he thinks the railway may be-
come, with more or less celerity, a sound and im-
proving
ye
Thent Act will be submitted for the
Arprraon property.
approval of the bond and shareholders on the Bth
of August next, in accordance 'with a provision to
that effect.