The Sun.
London, England, 1840-12-14 00:00:00

EVENING EDITION.*

....
MONEY MARKET and CITY NEW S.

(SATIIaDAY EYENING.)
TIMES.—It has been stated that the demand for
money has been recently so great, that since the last
notice was out for the temporary accommodations at the
Bank of England, the applications sent in have been for
above 1,500,0001., though it is little more than a fort-
night ago, and they are expected to continue at the
muse rate daring the operation of the notice.
It should not be lost sight of here in considering all
the circumstances connected with the forthcoming
French loan, that the Ministry of M. Guizot are ex-
pressly charged by the Opposition Journals with ex-
aggerating the amount of the deficiency in the revenue
raised by the late preparations for war, because they are
not only opposed to a war, but desire that the scale of
preparation hitherto kept up should be laid aside and
abaadoned. The arguments, therefore, with which this
view of the case is supported, are well worthy of the
attention of the English capitalist. In the first line
of M. Humann'a table appears the account of the
year 1840, showing that the supplementary and
extraordinary credits voted last session amounted to
48,001,000 francs, while the credits now required
by the Minister of Finance, including those re-
quired by special laws to make good the damage done
by inundations, and to assist the refugees, amount to
192,000,000 f. altogether, exceeding the provizions of
the budget by 2ia0,000,000f. Subtracting the -assumed
excess of receipt, estimated at about 16,000,000 f., the
deficit will remain 2-14,000,000 f. on the account of
1840. The estimate of the year 1841 promis©s still
worse results. In the first place, the budget is encum-
bered with :34,000,000f. of charges, unforeseen dur-
ing the preceding year, to which are added extra-
ordinary expenses, valued by M. Humana at
270,000,0001. The budget, as it has been voted,
shows an excess of 24,000,000 f. in the receipts ;
so that the deficit for 1841 would be 280,000,000 f.
The budget for 1842, according to M. Humann,
show a deficit of 65,000,000 f. under ordinary circum-
stances, and of 315,000,0001. supposing, the maritime
expenses to be the same as in 1812. Thus the
eleficits for the years 1840, 1841, and 1842, amount
altogether to 839,000,0001, the fortifications of Paris
being set down at 128,000,000 f. The objection ex-
pressed against M. Hamann by the Opposition jour-
nals is, that he has shown an evil without providing
a remedy, as they consider the alleged addition of
106,000,0001. produced by the annulling of credits
net employed in public works, and the reserve of the
sinking fund disposable on the 31st December, na un-
satisfactory, since there still remains a large deficit, and
nothing is offered but a genoral promise of economy.
Ministers of Finance., in general, it is said, have shown
their shill in dissimulating the expenditure and in-
creasing the receipts; but M. Humann has taken a
contrary course, and instead of raising the spirits of the
nation, has done all he can to depress them. It should
be remarked that the Opposition journals do not in any
specific terms impugn the correctness of M. Humann's
statements, but rather have recoursc.to insinuation and
general terms of indignation at the'rotasmendation of
peace which they convey.

CHRONICLE.—TiIe average circulation of the
Bank of England has not been so low as the returns
shown for 1840 for several years. In December, 1859
(being thu nonnburn back to 1834 inclusive). the circu-
lation was 16J:12,0001. in Jantmry, 1840, it was only
16,366,000/., and now 16,44(,0001.
Tne year 1839, ho:vever, exhibits a much greater de-
ficiency of bulltou than the present year. The returns or
August, September, Oanber, November, and December,
of 1839, are ail under the present return in respect of
bullion. .The coffers of the Bank were then labouring
under the drain produced by the heavy sums required
to pay for foreign corn, aad the lowest average was in
a:tuber, 1839, when Oh; bullion was returned at only
2,525,000/. From that period it gradually increased.
until August last, when it was returned 4,529,000/.
In Sapteunner it began again to droop, the amount
being only 4.433 0001., OctoLer, 4,145 0001., and
November, 3,729,0001. ; the present return being only
3,311,000/.
We have reason to believe, howeve-, that the actual
amount of bullion iu th.t coffers of the Bank of Eng-
land is larger at present thin the amount shown by the
average returns. But, supposing 3,800,0001. to be

near the truth, the gross amount, including the gold in
circulation over and besides, prosinits no very satisfac-
tory picture of the sauoduess of our existing system of
currency ; and when the continued unfavourable state of
the foreign exchanges, coupled with the various pro-
joz.ts of foreign loess, i 3 considered, we cannot look with
reason for any early relaxation of the restrictive action
on the Money Market by the arectors of the Beek
of England. Unless, inde,r.d. the balance of
trade should turn in our favour, we must
rather lay our account with further sates of securi-
ties by the Bank to counteract the expz.rt of ,the
precious metals, which threatens to ensue from the
want of a continental demand for our tuanufaittu:vs,
and the motratary transactions with loaa u:,:itractors
on account of foreign Powers. Belgium and Russia
are already ia the market as borrowers.' France is try-
ing by a make-shitt to put off the evil day by an advance
on Treasury bonds born the Bank of Prance ; but that,
in subitunce, is nothing more or less than a loan, al-
though it does not so iratnodiately affect the puke of toe
ands as if the Minister had applied at once for a vote
of the Chambers to sanction a creation of Rentes for
the support of public credit. But the Minister of
Fiance must find money to redeem these bonds, and
when pay-day conics he will be compelled to do it by a
loan after all, or allow the bonds to be thrown on the
market by the lenders. It is not likely that the Bank
of France will or can allow ten millions sterling of
capital to remain locked up for any length of time on
the security of these royal bonds, and a loan must be
raised by France, therefore, at no very distant period.

Austria, too, we believe, has serious thoughts of the same
kind. The apprehension of these vast demands for
money has had some effect upon the Funds.

POST.—The return contained in last night's Ga-
zelle of the average liabilities and assets at the Bank
of England for the three months ending on Tuesday
presents the following variations :—The circulation has
decreased 352,0001., the difference between 16,798,0001.
and 16,416,000/. ; the deposits have decreased 59,000/.,
the difference between 6,396,000/. and 6,337,0001.
The securities have decreased :241,0001., the difference
between °2,319,0001. end 22,078,000/. ; the stock of
bullion has decreased 218,0001., the difference bet;veen
3,7•29,0001-. and 3,511,0001.
From this statement it would seem that the drain
upon the Bank for specie has been checked. Its is un-
derstood, indeed, that the Directors have, by the de-
cided contraction they have effected in their liabilities,
succeeded even in turning the tide a little in their own
favour. The demand for money whieh exists on the
Continent, and in various other parts of the world, will,
however, compel there, in defence of the institution, to
persevere in the same rigorous course of policy for
some time longer, nail possibly to be still more sparing
in their advances to the public. The mass of foreign
stock that is just now absorbing capital in so great as to
have awakened more than ordinary attention to the
evil of the loaning system, and we should suppose a
remedy of some kind will be attempted. This
is rendered the more necessary since it is now
perfectly well known that our corn specula-
tors are again making large purchases of grain in
the northern markets, little or none of which will be
paid for otherwise than through the medium of the
precious metals. The prices of our manufactures were,
perhaps, never so low as they are at the present time,
but to the great disappointment of the commercial in-
terest, the demand for them on the Continental account
is almost as limited as eser. The quantities shipping
must all events fall very far short of the value that will
be required for the payment of the grain imported in
the course of the ensuing spring. It is in the mean-
while hoped by many of those who are inimical to fo-
reign loans that no extraordinary expedients will be re-
sorted to f'or the purpose of defeating them ; but, rather,
that the powers already possessed by the Bank may be
exercised with so muck severity as to intimidate parties
who are interesting themselves in them as contractors,
8(e. Others express a wish rather that Government
-nab interfere to prevent the mischief that threatens
the country, considering that the Bank can go no fur-
ther than they have done, without great detriment to
the public interest, and that their measures for the par-
pose might, after all, prove abortive.
In presence of fresh and obvious causes of embar-
rassment, the Bank have, as the above average shows,
no more in their vaults than three and is half millions
of specie, including what .32 distributed among the
branches, and we need not say, therefore, that the
anxiety to know the course that will be taken in such
an emergency is very general.
Regardless of parties,
may, the Directors cannot be reasop-
be they who they
abiv found fault with should they forthwith come to
the resolution of rejecting all hillssent into them for dis-
count suspected of being for foreign loan purposes, and
not founded upon sttietly sound mercantile trausne-
tions, so far as the object can be ascertained. ;ne„o_
rnodation to the Lombard-street moeey-houses who. ee-
tend their advances to nil sorts of people should, it is
remarked, as a matter 01: cctomon prudence, be in-
stantly suspended.
As respects the subscribe; s to any of the multitude of
foreign loans cornion, into existence, we would strongly
recommend that, in writing to the contractors !or
portions, they should stipulate to take only such as they
may be williug to furnisli at the original price at which
"Y may, have been negotiated. In the event of this
ierenaution being used there may be a chance of their ,
zuhscriliers) gaining something by the speculation,
It money is to be made at all. If so selutery a course
is Ps'i'ted in, the contracting fi::ns will be careful net
to venture 'Ten fresh enterprises of the sort o'hervise
than en somethie, likerational conditions.

STATE OF TRADE.—EuSineS3 remains much in
the same state as last reported ; no change in piees, and
but littlo demand. Trio ordQrs for spr:ng gonds for ship-
vine a 7, drlawing to a clone; imvertheless, it ii cunfidenCy
expeLttd that the year will. cp:nl%itii a fair avcrage. de-
mand: - - Lei: ester Me; curl 1.