The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-04

Another Advance In the Rates Of Interest
Increase TO La per cent In Paris, In LON
don and 8 lie In Hamburg.
IFrom the london teonomist. o.. ID. ]


Increase to la per cent In Paris, $ In LON
don and o lie In Hamburg.
IFrom the London Economist, Oct. L.
The condition OF the money market on Monday can
only be described as one of panic caused by the sud
den rise in the bank rate Of discount the opening of the
business of the week Of per cenfor, however well
prepared the public for further advance, yet the
fac, Of its taking place suddenly and AT unusual
time appeared imply urgency and degree OF APP
prehenson the part OF the directors which subsequent
events have scarcely justified No doubt there were
some important, circumstances calculated To influence
their decision in that direction, and knowing the pub
lie do the importance Of maintaining the RATE of dis
count AT it, full market value and so preventing
yenient abstraction of bullion to foreign countries the
adopted by the bank, though somewhat abrupt,
will not be censured The demand for advances and dis
counts throughout Saturday had been very great,
prompted, no doubt by an impression that further
advance would soon take place The accounts OF the
bank, made up 10 the close Of the week as shown by
the returns published to-day, exhibited fur
Their decline IN the bullion OF f553.0Oo, and In the
notes of 1850 ooo while the private advances
had increased in the week by f5os,ooo, showing an
amount o private securities of no less than i22 3ss CO.,
the largest which ever appeared in any bank return
before Bu, addition to these actual facts there was
the natural Apprehension 70 the consequences Of the
from the United States and the great probability Of
considerable not extensive shipments OF gold which
the state the exchanges seemed TO indicate II these
shipments have been smaller than at ono time
peced there can doubt tina, part indebted
the prompt OF the bank for that fact Ii must
be lost sight Of that depends entirely upon the
terms which bills can be converted into gold or, IN
other words discounted whether not the precious
tails at given rate of exchange be exported To
profit still was not the simple fact that the rate OF dis
Increased TO seven per cent that brought con
soils down 10 ss14 About year ago the minimum ratio
of discount the the bullion IN the bank was con
sderaby less also the while consos stood
., ~ ina, the depression of Monday caused manly
by panic best shown by the rapid recovery OF the funds
since the price at which they left on yesterday beng
$50 fully two per cent above the lowest price oil Mon
day.
Looking to all the bcs, and acknowledged test Of
monetary condition, there is certainly nothing TO justify
the the alarm which appears 10 have existed This, how
ever question altogether apart from high rate Of
discount which experience has abgndanty proved Is not
Incompatible with sound and with profitable bust
ness The bullion still in the bank stands az ZIG, ITO 90
while ouy In April last was A. low as 50 0S5 the
reserve of notes is g. O2I 600, while in April il
f3 Oi4 coo That further reduction will take place
probable nc, certain, both 10y the payment Of the
dends and consequence of shipments Of gold To the
lnted States but. the other hand already eonsdera
BILE arrivals Of gold have taken place and other shipments
are known be nearly due. Indeed, Twin be seen upon
examination that large arrivals Australia usually take
place dnriug the months u November and December But
prospects probably depend much more upon
/ other countries than upon THIS II We had the con
don ~ trade and finance To- look Ia, The future
would be less embarrassed with doubt and difficulty hut so
united the monetary Transactions Of all tho
great commercial countries the world that whatever
affects less more affects the whole looking only
the of this country the great extent OF our ex
ports being al the rate Of than ESQ 5000 IN tho
| year, together with other facs, lead tn well founded
con, cton that probably never a, any other
large balance due by other counties 10 ths. Consider
ms therefore the probable amount Of the claims that
may be made upon u that fact most assuring But
| IL enough 10 preyeut temporary inconvenience
Securcs common % this and other markets may ind
their way here 60 an nccnyenicn, amount, mercantile
credits will be used 10 their full extent, and foreign bills
will he discounted N order 10 aid houses abroad All
this however has limit. aud probably one which
reached for every al, made by this ~ other
tries will only add 10 The general balance due 70 by
foreign corntres and will the sooner insure return Of
the bullion which may % some extent he shipped 70 SATISFY
these demands The three points which most disturb the
calculations Of capitalists a this moment India, the
United states and portions Of the Continent and may DO
well 10 consider In few words how Ear the prevailing sp
] Ureheu-of~ sustained hy facts
First then, with regard 90 India Il 4 scarcely two
months since Parliament prurogucd, which indeed,
r. later than usual period partly understood,
in order TO make any arrangements for the assistance u
Indian finance that might appear nccda 10 the presen,
~ the Fast India Company 1T that time stated
BY the hghest authority - be that no aid from the r-
ish government, needed Indeed showea a.u.t
that time hy reference parliamentary returns lat the
i fat India Company had independent this
country r. the form Of cash and public securities which
would enable the directors fnr many months 10 b.
discharge their home obligations without drawing upon tho
lnGan revenues nj all Nothing has hlppened since then
materially 20 alter circumstance they then existed Gu
the contrary. advance from the Bank of England Of
81 600 upon the bonds of the East India Company
sued under an unexhausted borrowing power must 10
that extent have strengthened their position We believe,
therefore that 80 Ear the home wants of the East
Inds Company are concerned, they are abundsn,y pro
vded for bs resources ~ Their own command for many
months to come and without any necessity " drawing
upon the revenues ~ India. But the question may be
raed-s i not probable that the government Of India
reversing the ordinary course q ansactuns may be oh
ped 10 Draw upon the company here IN other words
that the Indian government resort u raising loan
England rather than In India THIS think improha
bic and except tho last extremity cannot be doubted
that Il would be impotc The news from india by the
iast mail furnish strong argu ns against the probability
If such being taken. II l. impossible 20 read
those accounts and not be convinced that the muny
rapidly drawing 70 conclusion and that al very early
time al real Apprehension of danger will be over The
e9,ff ~ ne n Brish roS,0rng orr tclU
o. AZ oycs vs confidence g. hs nars capitalist 70 restore
ne credit ne government and ~ brng ths syeuSs
h,dps n unnaJfovei coJnl ~ moderate rgic 10 the all
Of the Julttc We cannot therefore attach much i'm.
Ipriance The apprehensons 10 any adverse effect
which India d likely a. exert ufUn market here.
Next with regard o. the United states III the first
place II is impossible 10, q rcmark All the accounts
which have reached this country that the difficulties
which have been severely felt have originated with,
and excepting indirect consequences have been
tot have been confined transactions railroad and
whcr speculative c0mpanict The real trade and indus
w q The country show signs Of v'Tar and prosperity
gfeitrr u,an II any former time. Tie crops arc
t"i ahd Tie prices temUherative ami - one important
respect ths crisis tnas the United states in
0.h"h N'fy much 80 ~ crnt-tsted with former
.a-ota men tle great majority ~ tie planters we're
, 10y w. unHt row. rule they are
iNNsNtit wealthy AMI lA4. noebt i#rmeriy their
~ we m'iiEaEee # merchant 3nd ne was iu-
1880 y W. tlifi" u.s. ~ The Dthst rVss, rule,
t4"erf9W fhit thp nHtyaOfs 81 the soil been
~ ls#" t1ls Tie and &. nee saa !. owners in
grjenHrnt - Jar. hcB ths NIT g3rstsf,9 n IT,
1pFsf Ncfss toN,5Bes II "a |,s,-p - steeg fyys
~ Tfoufes s0pofy ~ Of la 9ra ltsrs - tbsg1gys
hfie ruan r. 0B~bsrd mars tfaa =, ,,s....,rs s.s
teQn ~ p osagd fT iia@ 0t- r. cb,,h osos,y,s ~
gftff txori ro,s ton hts csg5s That there uut 10
ssm. .sstssle pressure Id nara !, Tor relic. 10