The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-11-12

From the Boston Advertiser. Oct. ~
Although we gave In Saturday paper a pretty
foil account Of the state Of money affairs in Eng
land and France, and OF the state of the banks OF
the countries Of the last date the importance OF
the topic a, this moment leads M TO add few ex.
planatory facts The principal draft upon the Bank
81 England after proper allowance for the ordi.
nary demands OF the foreign trade and for the nat
raj effect OF the foreign expenditure arising from
the late war, has been caused by the rather unu-
sual expedient OF the Bank of France in supplying
it, wants with specie, by purchase at pgtmium.
This they are enabled 70 d. by the high rate of
their discounts, compared with the ordinary rates
OF bank discount in Europe.
The recent severe pressure on the Bank OF France
arises from q number OF causes the combined effect
OF which 1t seems little surprising has not been
more generally foreseen. These, In addition TO
those which have Operated in common upon the
course OF exchange with Englandf such "a the de
mand for specie in the way Of trade for India and
China, ard The foreign demand for money rising out
Of the late war are, LIST, the immense exoanion OF
credit In the operations OF the Credit Mobiler,
and in the advances to railway companies IN
and out OF France and I'd, the extraordinary
loans for the service Of the war, made not
by the capitalists, but by the mass OF the peo-
pie OF France, from resources which n
was supposed had been ordinarily boarded In spe-
Gle, in . manner to produce little or no income.
The investment Of so vast o sum of money, which
had been scattered throughout the country, in the
public rentes, although u has strengthened the GOV.
eminent, has weakened the bank, by cutting on .
resource on which IL might have relied 10 great
extent In nm emergency like the present. The pro
ceeds Of the loan In meeting the expenses oil toe
war were RENTED in great part to foreign countries
The great capitalists, in the man time, entered
into very large engagements with railroad and
other companies abroad which have led 10 a great
drain Of silver, particularly TO Austria, where,
a. has been stated IL IA for the present locked up
ia the Austrian national bank, preparatory TO the
return OF that institution 10 specie payments. Had
the national loan been obtained in the ordinary mode
from capitalists, they would have been less able to
make investments Of this description, by which so
much Of the money capital of the country has been
diverted from its ordinary uses.
One OF the latest letters from Paris estimates
the amount OF silver which has left France
within the last five years at 200 600 900 francs
and that not more than 700O00.O00 francs
have entered Il. Silver IL In consequence
rarely found in circulation. 1ts place u sup
Piled by gold, which alone can be obtained.
There is also a constant export Of gold. The
supplies are drawn in great part from this country
and from England, chiefly from the latter. In case
OF an immediate pressure, the resort az has been
stated l. Indirectly to the Bank Of England by pur.
chases az such premiums ~ will indn e parties in
london by discounts or otherwise to obtain II from
the bank. large portian Of the specie and bui
lion heretofore imported into England has been
bought ND for the Bank Of france tefore Il reached
the Bank of England. The monthly statement oi
the Bank of France, issued on the 9TH inst, com
pared with that OF sept ., In all the items In which
there is any material change, shows the follosina