The Sun.
London, England, 1869-05-24 00:00:00

ART AND LITERARY GOSSIP.

The Prince and Princess of Wales paid two visits to M.
Gustave Dore's studio in the Rue St. Dominique while
they were in Paris.—lt is stated that the Pope has given
M. Gounod three commissions—the composition of a mass,
a national song, and an oratorio. The last must be in
three parts, and be written for three choirs—a terrestial
choir upon the stage, an infernal chorus below it,
and a celestial choir behind the scenes.—Mr.
Longfellow is prolonging his stay in Florence.
During his sojourn the features of the poet have been
modelled by the great American artist, Hiram Powers.—
M. Sardou, who is now at Genoa with Signor Verdi, has
engaged to convert " Patrie " into a five-act librettofor this
composer. The Provisional Government at Madrid has con-
ferred a Knight Commander's Cross of the distinguished
Order of Charles the Third upon Mr. Frederick W.
Cosens, of Clapham Park. The diploma, signed by Marshal
Serrano, wasgranted for services rendered to the literature
and arts, as well as to the commerce of the country.—
The Prince of Wales will dine with the Royal Geo-
graphical Society at their anniversary, on Monday next,
when Prince Hassam of Egypt, Baron Hochschild, the
Swedish Minister, and other notabilities, (including,
probably, Mr. Gladstone) are expected. The Prince is
the vice-patron of the society.—By an Imperial
decree the Baron Taylor, well known in Paris
in connection with learned and charitable societies,
has been raised to the rank of a senator.—Mr.
J. Bass Mullinger, of St. John's College, Cam-
bridge, is collecting materials for a History of the
University of Cambridge.—lt is proposed to hold a Great
International Exhibition at the Escurial at Madrid. A
stained glass window, the gift of Dr. N. Rogers, and
the work of Messrs. Clayton and Bell, has been placed
in the south transept of Westminster Abbey,
above the monument to Milton. It is in two parts,
each canopied, and containing a figure ; that on the left
represents David, holding a pen and scroll, and looking
upwards ; the fellow light contains the figure of St. John
writing the Apocalypse, and having his eagle at his side.
—The Musical Standard hears that the new Grand Opera
of Paris is to be opened in 1871.'

TRADE AND ELVA-A-CB.

-®- _.

The return of the Bank of England has amply verifies
our remarks that the recent stringency in the money
market was caused by an anticipatory demand for dis-
count, which arose from the belief that an advance in the
official rate of discount was imminent. All the move-
ments during the week have been of a character to
strengthen the position of the Bank, there being a
considerable decrease in the note circulation, and in the
public deposits. The most important feature, however,
is the falling off in the private securities, which is very
considerable, notwithstanding the comparatively active
demand for discount which has been experienced through-
out the week. Although no change has been made on
the present occasion, there is an evident tendency towarth
higher rates, the reserve having now touched an unusually
low point. The proportion to the liabilities, however, is,
still within the legitimate bounds, although the return will
scarcely be pleasing to those theorists who aver that the
reserve should never be allowed to fall below ten millions.
Certainly the Bank stands in a very peculiar position. It
holds the reserve of all the other banks, but it must be
remembered that the amount it keeps in hand is vastly
greater than that retained by any similar institution. A
comparison of the position of the banking department
with the London and Westminster Bank at the date of
the latest available accounts will shew this to be the case.
We choose the London and Westminster Bank because we
believe it to be one of the best and most judiciously-
managed private banks in existence :

BANKING DEPARTMENT OF THE BANK OF ENGLAND.
Liabilities. Reserve.
Public Deposits ... £4,932,228 Notes
Private Deposits... 18,004,449 Coin
Seven-day Bills ... 457,068 1

£23,393,74

, £8,471,655
.
LONDON AND WESTMINSTER BANK, DECEMBER 31, 1868.
Liabilities. Reserve.
Deposits, &c....£10,638,000 Cash in hand
Acceptances ... 1,074,000 and at Bank of >
£2,344,000
-------- England. -----

£20,712,000 I 22,344,000
No one would venture to impugn the credit of the
London 4nd Westminster Bank, yet we find from the
above figures that that institution only retains about 11
per cent. of its liabilities, while the Bank of
England can chew a reserve of 3ti per cent. This appears to
us to be a very sufficient answer to the advocates of the
theory that the Bank should retain ten millions at all
times, irrespective of their liabilities. The way in which
this sum of ten millions is arrived at is, that the other
banks keep an average balance to that amount at the Bank
of England, an 1 their reserve is liable to be drawn upon
very severely at any time of pressure. Probably so, and
this is the principal arguments that the balance of cash
belonging to other banks in the hands of the Bank of
England is liable to very great fluctuation ; and why not
then the reserve of the Bank of England itself ?
With regard to the immediate prospects of the money
market, there is little probability of the introduction of
any foreign loan for the present. Portugal, Italy, Turkey,
Spain, and Egypt, all require money, but it is doubtful
whether, in the present state of affairs here, they could
make a successful application to our market. The course
of the discount rates will, therefore, be almost entirely
guided by the home demand, which is not likely to be
excessive. We incline to the belief, however, that a full
average amount of capital will be required to carry on the
trade of the country, owing to the general improvement in
the value of most manufactured articles. On the other hand,
there is a general absence of speculation, especially in those
staples which are peculiarly fitted for such transactions.
Cotton, for instance, is very dull, and there is a great
uncertainty about the course of the market, while the
unsettled state of prices on this side deters operators from
speculating in wheat. Nevertheless, so far as the general
trade of the country is concerned, there is a good trade
going on, and as capital is again forsaking Lombard-street,
and returning to its ordinary channels, it is evident that
any movement that may take place will be in an upward
direction.

The " Yankee" correspondent of the Spectator
toys nat President Grant will positively not allow Cuba to
bo invaded by filibusters. " Our correspondent, who we
may add cannot be misinformed on this point, states that
the orders issued are most stringent, and supported by ado.:
quato Vaysical furccs. which break them will To
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