The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-10-23
FINANCIAL AND COMMERCIAL AFFAIRS.
TIE ASPECT OF THE LONDON MoAEY MARKET.
IIror, il,oI L Dclr

lfrom the Loncon Times, Oct ].
Abundant evidence has been furnished to-day OF the
complete effect OF the just adopted by the Bank
Of England All pressure for money both that estsb
lsLment and In the discount Market has subsded and
the foreign exchanges have Ike wise received most ia
vorable impulse. considerable rebound in the stock
market might therefore have been expected but check
has been given by the fact that the Bank Of France
understood 10 have again commissioned their agents
this side 70 purchase gold any cost Although the ope
ration Ike those Of similar character previously
ed into be effected only at loss further sum OF
about fl20 600 understood In this way 10
Withdrawn TO day from the Bank Of England To many
persons the question has consequently suggested ITSELF
will fresh rise In discount thus rendered necessarily
But the matter 10 which rise OF discount
could exert any material influence the Bank France
are a Suy eoa any no Of
change will be regarded The only limit such ope-
ration must be found the exhaustion of their power
buy up bills on this country TO obtain credits here.
Happily, cannot be called to pay than owe,
and II al liabilities circulating on the continent
bought up and thrown upon us before their regular mau
rhy, there will simply be much less pay month or
two hence To the Bank OF France the result Ia OF
obsain money few weeks IN advance and when these
have passed they must either be content to receive
thing, must the transaction with repetition Of
loss In this manner within short period they have al
ready thrown away about ESQ which has gone into
the pocket of the consgnees Of gold in this country and
other parties was hoped when they recently ad
varced their rates OF discount per cent, and an
Douuced that they would take any other stringent
don system so hnmiatng from its futirsy, but ap
pears that the exigencies OF the noment such will
not admit OF a sudden change.
In q few dsys another monthly report will have to be
issued pnd the desperate efforts RE believed TO be
requisite TO mitigate the features s likely to present
considerable amount from Australia is overdue in
this country, and an arrival should at take place,
il will afford the opportune assistance since the
Bank OF France would Of greatly prefer avang
themselves of such supply keeping up direct drain
upon the Bank OF England, which must speedily react
upon the Paris market AS the question whether the
Or out II 4 naq tn n nf
specie payments may probably, however depend upon
the way In which the people may view the next return
for the moment, be set aside.
Under the Influence Of lower prices from Paris consos
which len of yesterday al els opened this morning At
9l, with very unsettled appearance. succession OF
sales chiefly In connection with tho account which takes
eay realization Of pron,s BY iatgs specula,or altered
the tone Of the Market and s0me important purchases
havin been effected on the part OF tbe public, steady
reaction commenced and the nal quotations were OIL
to o. for money, and ok to 9l5s for the 9th OF No.
vember
In the foreign exchanges this afternoon there was
general Improvement In the rates.
The final quotations OF The French Three per Cents,
the Paris Bourss this evening were 6ef 35, tor money,
and 6tf 4oc for the end Of the mouth showing
ry Of q quarter per cent.
The private letters from Paris nay state the new re-
caused the greatest anger and among the
speculaors but that come moneyed people had begun to
athougn mot to an amount 20 stay the general panic
OF France find their existing terms insufficient they win
adopt others OF greater stringency
THE PRICE OF DISCOUNT IN ENaLAND-sTRISaESr
ACTION OF THE BANK OF FRANCE.
From the London Chronicle Oct. IL
Another and extensive increase In the rate OF dn
count yesterday announced by the Bank directors
The previous augmentation, enforced only recer Jsq
Wednesday last had extended but to lao.
the nlc.4yL. ir..s ir..s fo- commercial pa
raised from AZ to per cent. YesterdaS nrovlsions
much exceeded that amount-the rates being g 5r
cent for short dated bills, that Is say for securities Of
not more than sixty days date and per cent for all bills
having . longer period 10 run. These prices are,
moreover, the lowest rate for nrst class paper.
The total chsnge In the Bank system, therefore,
involves something than the ostensibe result OF
augmenting, by or two per cent the price which
chants US. pay for accommodation. Whom and per
cent are charged for discounts at the minimum rate and
for unexceptonable bills tho inevitable consequence
must be that enormous mass OF second rate securities
which under ordinary cncumstI ces would be sdered
discounted atany per centage The consequent troabe
and parayss caused in many circles Of commerce must
Under ordinary conditions the precautions now adopted
by The Bank Directors wocd have signded the approach
Of some serious crisis, heralaed By arapd ebb IN the
netary afiars OF the country At present, however,
there are no such formidable symptoms apparent There
drain of bullion from the bank; but the move
ment Of the precious mo ais has not arisen from
any exhaustion in our domestic trade and stn
Iess from any depreciation m our home credit Our
commerce was never n q moro sound ana prosperous
condition 1 Than z at prs:sn,, and Considering the i'm
still experiencing, In all quarters OF the civilized and
civilized world II was never conducted upon principles
requiring smaller provision Of metallic currency COM
bped with The fnllcst Of commercial solyency
Al matter OF Fact the reserve OF bullion remain
ing In the vaults OF Threadnccde street considerably
ccs ds eleven millions sterag fn the crisis Of IslT the
stock was drained down 10 less than four millions before
tho ,rcssw va. applied to the present re- extent.
present the PRESSURE which slightly felt In Eosiand
comes nom abroad 7he step which In az one Oh
sefpresrvasion becomes now merely measure or pre-
caution. The rate OF discounts In one case was Kept
down 10 the last moment for fear Of augnenng the panic
rapidly sweeping away many Of the oldest and most
respected firms. AT present there no necessity for
10 Collapse . T. ss aG
loft 81 full liberty 70 adopt, at the earliest
ms ut, whatever measures may seem caiculascd TO
the largest proht that could safely and legumscy
be made upon ,is transactions a. a business cstsblsh
the rate of discounts announced yesterday morang
Though somewhat sudden the proceeding cannot call
creased on the previous wedncssy the demand Tor sd
ysnces sustained no visible check and The drain q gold
preceded nearly 20, quite as rapidly = ever n.as
bullion could net be stopped By price Of cent and
the Directors have therefore wcy determined 10 charge
gold sha be relieved from anxiety touching the
supply for home purpoecs. II not win At all events be
soaton 10 know thai the foreigner has paid high
price and ihst tho British lenders secured larger
prot apon their advances Tor The bench, OF themselves
prn ~, but ultimately OF the country at large.
Atasle hour before the announcement Of Ae enhance
mont the bank rate tecgraphc despatch from Paris
repo ed that the directors Of the French Ank had
solved 10 give discounts for commercial rapsr of
any description having than sixty days 10 run
The connection between tho London and Paris money
ma ket q now 90 close that tho great moucta-
~ cstAbshmenn OF the two nations always
Affected by the same events, and may be almost
said 10 beat with the same pulse. The stringent
rule adopted NJ ten o'clock In PARIS would have thsown
vast mass Of fpsper-ireproachasle In quality, but incon
venient In quantty-upon the London market In an
tcpaion Of this pressure the English AAnk dre<tors by
twelve ococt adopted the resolution for raising their
own rate 10 and per cent, according 70 the period
for which advances were required. The proceeding
dictated BY mere prudence, and has occasioncd
no alarm this eide OF the channel some further
advance IN the price OF money was, indeed, pro
vsusly forcseep, aui II 10 better for eli parties that
the change should speedily and II once rather than
remain suspense for ndefnife period and be 40
complshed by small instaments which would have kent
the commercial world In perreca stats Of uncertainty
and worry without presenting any prospect Of perma-
nent settlement High az the present rate may be, s
at all events, an advantage that the trading public can
snA