Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1855-11-09
Banks of England and Franoe-Money Mat
tiers

The following is an extract from the London
correspondence Of the y. Y. Commercial. Inc
| letter is dated Oct. 20
| Apart from foreign and political news, the
state of The money market has again been the
! grand subject of attention. Although there Is
reason 10 hope that the operations OF the Bank OF
France in wing gold from this side have ceas-
cd and the continental exchanges are now favor
able at every point the Bank OF England drec-
tors have found is necessary 10 resort tn n fuf-
Their advance in the rate of discount, aud have
endeavored this time to make it such as shall be
final aud decisive. They not only raised the rate
from 81 TO per cent was anticipated, but
have distinguished between short and long bills
and have decided not 10 receive any having more
than 90 DAYS TO run under 7 per cent In no case
are any admitted over % days
The necessity for the measure Is partly attri-
butabIe to the long continued absence of gold ar
rivals from Australia, or two millions st0l-
ing being now overdue. The restriction rs 10
the period for bills 10 run is believed TO have been
ndoptcd in order to compel the holders of long
paper tn 20 10 The discount houses instead OF 10
The Rank upon which there has lately been n
disproportionate pressure. These houses rein-
sed advances To their customers, on the prudent
plea that the constant rise in the rate prevented
them from knowing at what charge they might
safely let their money out. At the same time,
est point had been reached, they would have no
fear in granting abundant accumulation. By
putting the rate for long bills up To per cent,
the Bank has given them reasonable ground to
infer that it has at length been carried as high as
will be needed.
II was also announced. yesterday, that the
Banks of France have made another advance of
one per cent. and that their rate of discount will
likewise now be per cent. This measure rem
ders the course of the Bank of Eng gland still more
proper, since if our rate had been under the
French, there would have beena renewed attrac.
ton Of money from this side.
With regard to the general state of trade,
perfect confidence continues to be every
where manifested, and no one conversant with
the effects in this country Of such high rate Of
discoun, rs or per cent could have believed in
the possibility of such stcadness NJ Is manifest
ed The reason of it consists in the thorough
appreciation on the part of tho public of the ex-
ceptional and temporary mature OF the influences
in operation.
Tho accounts of the French harvest are more
and more discournging, and it Is consequently
with regard to the finances of that country that
the chief anxiety is felt. The high rate OF dis
count now adopted, however, will it is hoped, go
n great wa, to remove all danger. he wheat
harvest appears TO have fallen short ut least %,
900. 900 bushels, and the yield of rye presents n
similar deficiency, Notwithstanding the state of
the money market, the English funds show great
comparative steadino and such is the confidence
of tho public that they continue daily to make in
vestments The supply of stock in .he hands
of the dealers is consequently less than usual,
and loans on Conso- can be obtained ut the rate
of about two per cent Hence, although there
has been n reaction from the great recovery men
toned by the last steamer, Consols are still
much above the point to which they descended
| fortnight ago They then touched S6i. From
this they recovered to 55i and the closing price
| this evening was 81.
The grain market, in consequence of French
purchasers, has experienced new advance of
IS. To 4s ID. per quarter, or about per cent.
The report ofthe Liverpool cotton market for
the week shows tirmness ut the commencement,
but great subsequent heayiness.