The Sun.
London, England, 1862-05-13 00:00:00

THE BANK OF F.R,4IVCE.

The Opinion Pubhque contains the following
remarks ou the last monthly account published by
the Governer of the Bank of France, which at first
sight would appear to show that the directors of
that establishment are more liberal in their advances
to Bourse speculators than to the commercial com-
munity :-- _ .

" The situation of the Bank of France just
published announce two principal facts—the dimi-
nution of the credit given to commerce, and the
increase of credit given to fiaancial transactions. It
is remarked, in fact, that the portfolio is diminished
by 75,000,000 f., and contains at present only
489,000,000 f., while the advances on Government
securities, shares, or bonds have been increased from
214,000,000 f. to 241,000,000 f. It is evident, there-
fore, that merchants and manufacturers are limiting
their business. At this period of the year commer-
cial transactions are not in general very considera-
ble. The political crisis in the United States is
paralysing our exports to America, and the dulness
is consequently more apparent than before the in-
terruption of commercial relations between the two
countries. It cannot be said that it is the rate of
discount which prevents merchants from appealing
to the Bank. The present terms for the discount of
commercial bills are extremely favourable. It appears
to us certain that if the Bank directors were to
reduce the rate of discount still further the demand
for accommodation would not be greater. There is
no doubt that commercial bills are scarce, and that
the explanation of the diminution of the port-
folio is to be found in that fact. Neither must
it be forgotten that money in the free market is
offered at a rate inferior to the official quotation.
There is so little opportunity for employing capital
that all the discount banks are looking for bills to
discount. The bankers keep the bills to discount.
The bankers keep the bills they discount, for what
service would it be to them to bring them to the
Bank of France to convert them into cash ? These
considerations are not without their influence on
the discount operations of the Bank of France. But
what the Bank cannot do in its commercial rela-
tions it does liberally for the financial market. The
Bank directors kr, ow perfectly well how strongly
identified the credit of the Government is with all
the great interests of theconntry. It consequently
assists that credit when circumstances require it.
The voluntary conversion of the Four-and-a-Half
per Cent. Government Tentes threw a vast
quantity of that stock on the market, and if these
securities had 1 emained long floating it would have
been difficult for the Rentes to rise. The great
bankers iu order to overcome that difficulty deter-
mined to accomplish a temporary classification.
They deposited in the Bank of France the securities
they had purchased, and with the cash advanced
on them they made a further reduction in the
quantity of floating securities. That was a plan
which responded to the true interests of the money-1
market, and it was the duty of the Bank directors
to facilitate the concusion. It was with this cbject
that the advances on Government securities werein-
creased from 142,000,000 f. to 167,000,000 f., and that
the advances on shares and bonds were raised from
59,000,000 f. to 64,000,0001. The advances on
ingots and specie are reduced from 11,000,000 f.
to 10,000,0001. While the cash in hand was in-
creasing the directors of the Bank, faithful to the
principles of .political economy which invariably
regulate their conduct, restrained the circulation.
This item has diminished by 20,000,000 f., and at
present does not represent more than 819,000,000 f.
The Treasury account current has decreased from
124,000,000 f. to 104,000,000 f. The private accounts
current have diminished 6,000,0001. They still
amount to 188,000,000 f. This item gives the mea•
,uro a the enoirneus orteal which is lying un-
productive. The profit of the bank since the
beginning of the present half-year has reached
12,200,000 f. Last month produced 2,100,0001.,
being rather less then the profit of the preceding
weeks."

[ADVEETISEMENT.]—HoIIoway's Ointment and Pills.--'
Timely Precaution.—No season is more prolific of disease
than the spring, when impure blood and disorderel circu-
lation set up skin diseases and a host of other maladies,
which every one may prevent or mitigate by Holloway's
inestimable remedies. The Ointment will speedily remove
all cutaneous disfiguration, and exercise a no less salutary
influence over all the structures subjacent to the part upon
which it is rubbed. Holloway's Pills assist this wholesome
action by their purifying and laxative powers; and by re-
olating and controlling the circulation. No means, here-
tofore discovered, could exert the same beneficial and
healthful ascendancy ever every external and internal
organ—as twenty-six years' experience has proved 110110-
way's medicines to possess