The Sun.
London, England, 1846-12-07 00:00:00

THE BANK OF FRANCE.

From various paragraphs during the last few days
both in the London and continental papers, on the

present condition of the Bank of France, an impression
seems generally to prevail, that in the year 1839 the Bank
of England obtained relief from danger by a loan from
that institution, and opinions are consequently expressed
that if similar aid should now be required in return, it

could not with propriety be refused. the idea, however,
of a loan having at any time been made by the Bank of
France to the Bank of England is altogether erroneous.
In July, 1839, the bullion in the Bank of England had
fallen below 3,000,0006 sterling, while its rate of discount
was as high as 51 per cent. It was evident that the causes
for the existing drain consisted more in distrust abroad,
founded on a belief that the Bank of England could
not long continue specie payments, than in an un-
favourable balance of trade, or mun for sovereigns to
hoard at home. Parties on the continent drew out all
their balances here, and as much more as their corres-
pondents would give them credit for, discounted the
acceptances in London, and, in the absence of foreign
bills, took gold from the Bank of England. Under
these circumstances, it was impossible that exports
of produce and manufactures from England could
take place immediately to a sufficient extent to counteract
the evil ; but it was seen that the difficulty would be met
if a temporary creation of bills on the continent could be
effected. With this view, the Bank of England engaged
to transfer English securities as a guarantee to Messrs.
Baring, Brothers, and Co., or those whom they
should name, and this house arranged to draw three
months' bills for 40,000,000 f. on various houses in
Paris. These bills, which Baring, Brothers, and
Co., negotiated upon 'Change (paying the proceeds
into the Bank, so as gradually to act upon the circula-
tion), fully supplied the trade demand for remittances
hence, and equally served to meet all paper on Eng-
land remitted here for returns, as they proved a
better return than gold. At the end of three months,
when the acceptances fell due, the same amount was
redrawn, so as to cover each acceptor by bills on
his neighbour, thus prolonging the operation- to six
months ; but, before the expiration of this period, the
supply of the regular remittances of commerce had
been such as to enable Messrs. Baring to liquidate all
the engagements in Paris, and to restore the pledged
securities to the Bank of England.
From this statement the Bank of France will ap-
pear to have had nothing to do
.with the operation
but a mode by which they facilitated its progress,
ms iennc eti
ration
ee
de entertainedTh e dreughotns
and which, doubtless, gave rise to the erroneous
liable
houses were, of course,F
the subjectsuppositions
•
Bank of ranee, and as these
drawn by Messrs. Baring theteva.rbieouspreFsreenntcehd
for discount to the
rewrohaiienhs tolialay.ee
limit with that institution,
me necessary, owing to such
their rejection might eco
d.ffi
firms, respectively, htt, ethreedreitswaoanlay
possibility
yertthaiant
exeuerious effect, and application was there-
produce an inj cded. This cu ty was calculated to
An understanding was accordingly entered
be overcome.
Bank of France, that the draughts, in case
into by the Ban
earance, should be discounted
ltioinreitsmbaediengto. the Bank of France in order that it might
l'snits in question. This precau-
without regard to the
the draughts being -of the first
scarcely essential, for
f d'scount at the Bank of France
character,
e arrangement, raanidi
they should make their app
'however, proved to have been
I the market rate, they were
being some whgatethmheeiand hence it is believed
readily discounted out of doors,.
found their way into
that but a very small proportion
that establishment.
The only claim, therefore, that can.
it is, that sup-
Bank of England in the way of remproctey
gnr ahteer than
posing the Bank of France should now,
analogous
of purchasing silver from us, adopt a method
di
to that just described, the same facilities of
be urrgethdeuppuornptohsee
should be
ibgehatffporredeeadrewibtihurge.gaTrdhetosethweeepladr,ties
sist of leading houses, whose acceptances would a all
times be received with avidity by the ordinary money
lenders, and such an engagement on the part of the
Bank of England would therefore involve no great
stretch of generosity.
From the present aspect of affairs it seems by no
doubtless,u P ° l
whom
con-
sist
means improbable that some measure of this description
will be resorted to by the Bank of France, and it is im-
portant to recognise that if such should be the case it
must cause an immediate rise in the discount market.
A demand from a new source for two millions, or even
for only one million, could not come suddenly upon us
without producing a decided increase in the prevailing
rates, and thus another is added to the numerous reasons
which already exist to call for the exercise of caution.—
Times.

NARROW ESCAPE FROM DROWNING.—On Friday
afternoon, between two and three o'clock, as a man of
the name of Gillham was proceeding up the river in a
boat, when off the Penitentiary his hat fell overboard,
and while endeavouring to reach it, he overbalanced
himself, and fell into the river. A waterman of the name
of Freeman immediately went to his assistance, and
succeeded in getting him into his boat in less than two
minutes from the time of his immersion. He was con-
veyed to a public-house near Vauxhall gardens, where
every attention was paid to him, and in less than two
hours lie was enabled to return to his home,