The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-11-04
IMPORTANT FINANCIAL NEWS.
The Monetary and Food Question In Europe.
INCREASE IN THE RATE OF INTEREST RY THE BANK
OF ENGI AMI

The Monetary and Food Question In Europe.
INCREASE IN THE RATE OF INTEREST RY THE BANK
OF ENGLAND.
From the London Times, (city artcle,) Oct 1o.1
The Bank OF England advanced their rate of discount
yesterday, from u per cent at which it was fixed on
the 4th instant TO per cent for bills having more
than 90 days to run and to per cent for those from 90
The Bank France have also advanced their rate from
per cent a. which it was fixed the 4th instant,
The English funds opened in the morning with an
unsettled appearance at decline of eighth from
the last plices Of 17th and the first transactions
however, still continued to show confidence and an
improvement took place to s7A Tho announce
caused a fall to S74, which was the last quotation
For the account they left of at S7A to "a The stea iy
purchases made during the last week have absorbed
all the surplus stock in the hands of the Dealers
and loans consos therefore be obtained at
tremeiy low rate. Under these circumstances the ap-
pearance Of the market Is far from unfavorabe notwh-
standing the movement in discounts Prices sup
ported, also By large ti@erarchsse by broker, who
was on the l7th heavy seller Bank stock closed at
The bank rate for advances consos Turkish scrip,
and other government securities win be per cent.
The discount houses have yet issued their notice Of
alteration in the rates for money at call The vari
GUS joint banks have increased their allow FOR
deposits TO per cent.
The final quotations Of the French Three per Cents
the Paris Bourse, the evening OF the 1Tth 6t
10c for ney ard 64 20c for the end of the month
showing decline of three-qu quarters per cent
The measures Of the Bank Of England rather
stringent than expected but, although they will
cause the financial course Of the country during the next
two or three weeks to be regarded with almost unpar
aieed watchulness they have excited neither disaHtis
faction alarm 1t is assumed that the nexf Hoee
return win exhibit further large decrease in tue bn-
lion, and, apart from This the iresh step taken by the
Bank OF France CONFIRMS the necessity Tor increased
caution.
The total absence or commercial distrust is as
marked as ever, and apparently the only point for
dread is. lest the public, unlccnstomed they
themselves to suppose that it necessarily invo yes
quencesW is question passed from ope Idle
person 70 another. The real Features ~ .,,o,
:. .ue indisputaole hcalthfulaess
OF trade, admit OF being summed up with more
than ordinary precision oae principal N stter Which
the public have yet learn the effect Of very
moderate withdrawal OF bullion During each Of he
last weeks the drain from the Bank whci
has accompanied by series Of advances in the rate
Of discount until from So IL has reached TO per cent
has about 1850 o0othat Is to say. the Sank nave
raised their rate = per cent for every 0o0oo or $500
COO lost. Tie singular Decay in the Australian arrivals
which has again become noticeable Il therefore nearly
enough to for the increased pressure of the last
week According to sound estimates at least 81
600 600 i now overdue and some persons set the am un
mt 81 500 000 The absence presence at this latter
total might have made difference OF per cent IN the
bank rate Again the more recent reports from france
OF deficiency OF at least c0 600 quarters of wheat and
like quantity OF rye have given new Impulse to our or
grain These imports not required Tor our own
and consequently are good TO us as g Id except
that they involve delay before convert them and
meanwhile the pressure IA just as great rs 1t tue gold
they ultimately to repay would never reach us.
Hence there influences amply to account tor all the
disturbance now experienced in addition 70 that orig
ay created by the Withdrawals the part oil the Bank
of France il true Of perplexity remains in the
fact that IT. by the reac ion from the recent measures o.
the Bank Of france coupled with shipments OF grain TO
that country things arrive alta poin which ud draw
gold back from Paris The difficulties on that side may m
vove the adoption OF new plans 10 obtain tuttr ar
fetal supply from the Bank of England but there Is
limit to such operations The continental markets havd9
been cleared Of bills only thenceor.h furnish
the uta daily quantity created by the regular opera
tons Of commerce, while w'h regard to the nse
mediation paper the obtaining OF money on the ls
pforeign securities there scarcely be ich
apprehension tits so be remarked moreover, hahe the
public generally fail TO estimate the momentafy effect 81
the loss moderate 81 bullion they also on
the other han attach sufficient faith to the effects
of increase in the rate OF discount. In lSII II was
carried as high as per cent the bank baaon having
fallen to fs 312 col, and in a month from that time
action commenced until within year il was as oS rs
per cent and vent On unchecked until II mad decnel To-
per cent There II no reason 10 suppose that in the
present instance the adopted viii prove less
eiucacious- indeed as the drain has been much more
sudden than taen, here might, perhaps were Il
not for the Turkish loan be expectation ot still
rapid reaction, the hnal point Of pres
sure shall have been reached. Already there indica
tons that strong elects have been produced From
Hamburg IL Is said gold could now be lent both To Paris
and London. The demand for specie Tor India hae sub
sided and although the next steamer viii take out pro-
badly $500 600 it will chiefly be for contracts previously
entered into.
But win even the certain prospect Of mitigation ba
sufficient meanwhile 10 sustain confidence all over the
conry Hitherto every thing has tended 20 that c0nen
zion and among the banking and other financial eta1
hshmens In ionden not shadow Of disteust in It's &C
cusacy Is observable. The great addition nade BY the
bank In their charge for bills having more than sixty
days 20 run will probably attest than thig1 d the
paper in circulation; but one object ~ at step was
doubtless t.:a7 me demand from the bank, where
had lately been much concentrated 70 the discount
houses who been cautiously holding back until they
could moderately certain that the highest point had
been reached should they ente tau that conviction
and, inasmuch per cent Is within per cent OF he
highest rate known In modern times the supposon that
the will DO reasosabehey will De prepared to-
act with holiness and the market may assume,
from the absence Of uncertainty deg of souniuess
greater than preyiouly prevailed. II this hope be
lzed and all should 20 well during the next month the
demo nstration that will have been gained Of the post
bty under the Bank Charter ofour passing through
period Of trial without falling into senseless panic while
II will afford lesson 70 Russia aud her trieo1s as b.
the actual sodiy Of that commences 10 which we look Tor
the means any struggle however protace3 that
may be necessary accomplish all that We have resolved
upon.
THE CARS FINANCIAL OPERATIONS IN ESGLASp.
ffrom the Liverpool Post, Oct 49,
The enemy has found out weak place, and has made
blow at H. He has discovered that we are vlnerabie
only in the bank Of Pnqlsndsenstve seriously in the
vaults in rhresdneedle street; and he has thereore
dipped his hand into the bullion box He could not drive
back our armycngage ships but he could originate
panic In the money market and damage us worse than
could The loss 81 battle. Many certainly believe that
the Auiocrat has distracted gold and IL he has he
u entitled 10 credit for his cunning: for although all
rapacious animals arc endo we'd with instinct which
directs them ~ the vital part Of their prey nations not
beiDa similarly endowed the strategy Ia revealed
only TO intelec Bot can the Caf ela "a this praise
Let nqure.
On the both July last the bulion In the hank wtS
x1e,c3l, $50; Last Friday week only cli ,s5 o2j Ths
decrease has, ituFr teen 81 s,,s Sas ii ,.,opa,
g.a:e ikc d:f.!sscy NJ. lag. -. i 1. 10. L.. .