The Sun.
London, England, 1838-10-22 00:00:00

much higher than the regular proportion to the circulation,
and when the Bank could have consequently parted so
much more advantageously with the precious metals than
with productive securities such as Exchequer Bills. The
stock of gold is not only inconveniently large, with refer-
ence to the interests of the Bank, but on public grounds
there have been numerous reasons why bullion and notes
should have been paid awayduring the late pressure for
money, instead of the produce of Exchequer Bills, the rate
of which has decreased the circulation by the large sum of
306,0001., at a time when money, and therefore an in-
creased circulation, is so very oliViously required. The
Bank is, however, almost always in error in its operations,
and now that money is more abundant, by the payment of
the dividends on the English, and on several of the

heavier of the foreign funds, it is generally reported in the
City that the Directors are becoming very desirous to ex-
tend their circulation at a time when it is doubtful whether
such an extension would be of any service to general trade.
But, apart from the error of having contracted the circula-
ion during the last month, when money was so required,
and when it was totally contrary to the interests of the
Bank and the public that the scarcity should have been
increased to so great an extent as appears from the pub-
lished accounts this day, it is not to be denied that there
is a large party in the city who, at this time, believe that
the proposed extension is now required, and to a much
greater extent than appears to be contemplated by the
Bank The high price of corn and provisions generally, it
is reasoned, renders a great amount of money requisite for
carrying on the business of the country ; and the stock of
bullion being so excessive both in. England and in France,
there would be no danger whatever in increasing the circu-
lation of the Bank of England, if the reasoning be correct
of those who are now advocating the measure as required by

the position of trade and commerce. To contract the circu-
lation would at least be the greatest error which the Bank
could commit, and yet there is thought to be no depend-
ence upon any movement which. the Directors may make,
as there is no appearance of system of any description in
their management of the Threadneedle-street institution,
and chance would seem to preside exclusively over the sup-
ply of the wants of the mercantile community.
The reports received by the areal Western steam-ves-
sel, respectinc, an extensive deficiency in the crops of cotton
in some of thee' south-western States of America, have caused
the prices to advance in Liverpool, and the speculative
purchases to be I irge. These reports are, however, very
contradictory to all the preceding accounts. The intelli-
gence wants, therefore, confirmation before the necessity of
the late advances can be well perceived. In some degree,
however, the destruction of so great a number of bales of
cotton by the late fire in Liverpool, may be taken into the
account as tending to diminish the stock, and therefore to
render probable the sustainment of the late advances in
price.

POST.—Commercial advices have been received from
Buenos Ayres to the end of July, which mention that the
blockade of that port continued to be rigidly enforced.
Letters have also been received from Paita (Lima), to
the 7th of August, announcing that the Peruvians had
made a revolutionary movement against the Bolivian party,
under General Santa Cruz, and it was expected that the
Chilian army would join the rerolutionists early in August.
The departments of Libertas Lunia, Huaylois, and Pereira
had disbanded the Civil Guard, and declared against the
Bolivian Confederation, and the population seem to favour
the change as a means of obtaining a better order of
things. Generals Nieto and Sierra are said to have caused
this movement. Nieto was in the neighbourhood with

1,500 men, and was marching on Lima, being joined by
General Vedal, Governor of the department of Huaylois.
Santa Cruz was hovering in the neighbourhood of Ariquibo
with a very considerable force.

From Bombay we have letters to the Ist of August.
The price of cotton there, owing to the demand for the
China market, and a report that the crop in the interior
was suffering for want of rain, had advanced considerably.
Freights had receded to 4/. ss. to 4/. 10s. per ton.
It appears by the comparative abstract of the Bank re-
turns, as published in the Gazette of last evening, for the
quarter ending on the 16th of October, that that Corpo-
ration have been carefully and steadily restricting their
issues for some weeks, but on balancing their assets against
their liabilities, it must be admitted that the affairs of that
institution are in a very healthy position.
The British Funds continue to be very heavy, and the
quotations of last evening have not b, en maintained.

HERALD.---By the monthly returns of the quarterly
average of the weekly liabilities and assets of the Bank of
England, from the 24th of July to the 16th of October
inclusive, as compared with the former return, we arrive at
the following results :—lt appears that this nominally na-
tional corporation have decreased their circulation on the
aggregate of the past three months in the sum of 306,0001. ;
the deposits, also, have been diminished in the sum of
713,000/. ; the securities on the average are not so large
as at the .last return by the sum of 831,0001., but the
stock of bullion has been reduced in the amount of
178,000/. The rest on the aggregate of the present
return amounts to 2,766,000/., which shows an improve-
ment upon that 'important item to the proprietors of
10,000/. The circulation on the year appears to have been
increased in the sumpf 643,0001., which to a very great
extent is, however, balanced by the fact that the amount
of bullion in the coffers of the Bank has been replenished
on the aggregate in the sum of 2,581,000/. during that pe-
riod. That portion of the above returns which applies to
the diminution of the circulation securities and the amount
of bullion in the hands of the Bank of England fully con-
firms the opinion which has litely obtained amongst the
monetary interests, that the Bank of England have, though
irregularly, been restricting not only their issues directly,
but indirectly, through a limitation of their discount busi-
ness ; and this, in some measure, accounts for the late
fluctuation in the daily market value of the unfunded debt,
although there has been a strong impression amongst our
monetary circles that the Chancellor of the Exchequer has
it in contemplation to reduce the rate of interest upon Ex-
chequer Bills, as their existing term runs out.