Star.
London, England, 1825-11-25 00:00:00

FROM VIZ JOURNAL DTI COMMERCE OF MONDAY.

We gave yesterday an Article from the tioile relative
to the operations of the Bank. We recur to it again
to-day, for the purpose of deducing the inierences
which appear necessary for the information of the com-
mercial interest and of the Bank itself, and to remark,
to our Readers how much the present state i f things
confirms the view which we had taken of the purely
accid:ntal, and, consequently, not alarming character•
of the actual scarcity of money :

Millions of francs.,
In May last the Bank had In circulation 237 millions of
francs in notes. At this moisent it has only 189 minions,
making a difference of . . 46
The Bank had lent at the same period 73 millions upon depo-
sits of gold and silver bullion. It has now out in this way
only 40 millions. Difference 3$
It bad lent 53 millions upon bonds. Now it has out in this
way only 17 millions. Difference . 36
These 17 millions are reimbursable in the month of Decem.

bet, which will increase the difference by .
The 40 millions lent on gold and silver bullion speedily be.
come due to the Bank ; and if the timed payment be not
extended, which is not to be presumed, this would be an
additional diminution in the circulation of

But. in fact, the discounts of the Bank to the commercial
interests were, in May last, only 87 millions; they are
now 113 millions; making a difference to deduct of

174

148•

Thus there remains a possible diminution in the circTr-
lation for the ensuing month of 143 millions, or of 103
millions only, if the advance upon gold and silver bullion
is renewed. This state of things is serious,, whatever the
Etoile may say to the contrary, and can only be corn.
pensated by the very cheering state of the Bank, which
becomes rich by the greater part of the resources, by the
withdrawal of which the circulation is impoverished.
We need, then, only confide in the solicitude of the Bank
to restore to circulation the capital in which it abounds,
and to do that it has the means of commercial discounts,
and advances upon deposits of the public funds, which
are authorised by its statutes. Now, everything an-
nounces that it will extend all the facilities of this de-
scription which the state of the market demands; and
we have already for guarantee of such a proceeding, the
continued progressive augmentation of its discounts,
since the scarcity of money began to be felt.
We see, that the forty-eight millions of notes which i;
has the more in its treasury, and the twenty-six millions
of increased discounts, represent apparently the sum of
about seventy-four millions, which we have supposed
to be required by the departments for the last harvest,
and which appear to have been transmitted in ready
money. But if it is in the months of September and
October, that the departments have great need of capital
for the purchase of provisions, and more particularly in
a year so abundant in wines of excellent quality, it is in
the months of November and December titar, by the
rents of farms and the payment of taxes, very large
sums return back upon P.rris. We persist then in think-
ing that the situation of the Bank, and the probable
and near return of a large proportion of the capital
withdrawn from Paris, will lead to a termination of the
year much more cheefid than is generally imagined.
We must, however, remark, that a simple displacing. ef
capital, so clearly made out by the preceding facts and
considerations, may bring about great variations in the
rate of interest, and consequently in the prices of all
the securities. Whence it follows that it will be well to
take steps to profit by a reduction in the tate of in.
teiest ; but we must be careful net to found a system
upon the permanent rate of this interest, to which a g eat
activity, as well as a great stagnation of production,
may impart a rise or a fall.
lr is also proper to repeat what we have said fre-
Trendy, that the developement of production, that is to
say, the increase of all the products of agricultural and
nionufactuting industry, necessarily requires a corre-
sponding augmentation of the sign destined ao represeog
• .11,,jnieraa: du C7”susercs, by some West* of bguts,
the amount only till millions.

•r"41110

4.k..,,,..

0 em, or to isffilitate their t sch.nge. Thi. sign is spi•
cie, or, ill default of n, paper. The latter necessarily
requires, as a substitute for specie, succour from public
banks, who'e organitation should be better understood
than that of those la i•h h;ch we are already acquainted.
-But we must first create as much of this paper as the'
wants and confidence of the public may demand ; and in
thit respect we know how notch in atrearAlie-Etchange
of Paris is, in which the fir-4 house's not only do not
emit paper in the maart, but absolutely refuse to
negotiate the bills of .their own portfolios,. altbough
they might frequently oistain upon them a discount less
onerous than that of the Bank; and in which the ptin-
cipal houses, and the Governors themselves of the lat-
ter establishment, avoid as much as possible having re-
course to such measures.
Thu it is in a great pleasure to the scarcity of paper
in circulation, that we must attribute the wanness of
the discounts of the Bank of Paris, and the accumulti-
tion of idle funds which frequently takes place there,
and which tenders so sensible, and frequently so disas-
trous, the slightest removal of currency, occasioned by
fortuitous circumstances.