The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-04-28


policy pursued toward them As lea attempt they have
row, asserted actually resored 70 the prepcsseross
cOres in order @ obtain Bank notes, with view II
locking up those noee, thus creating an artificial
es1y been CARRIED % the GO Or
and n IBIS be true the whole Of the phencmsns
is be hoped the affair may yet be deaied but
looking At the difficulty Of explaining what has beea wit
messed in any other way there too much ap
may easily be oreseen Tie discount houscs win ind
that that they have lost the interee, the money they
have thus scraped together the public will be cursgsd 1t
the experiment which has subjected tho trading commu-
uuni.y to such unusthAbe disturbance; the bank win
have stronger grounds than for sdhering 70 their
original minauos and the condemnation 70 no aus
si aed py me principal actors VIII be mixed with
bounded ridcse q the vaultng ambition which has led
them 70 believe they could break inmidaie the Bank
OF England.
The London Daily Netcs confirms the strange
story, with, however. some variations of detail It
says:-
The pressure for discounts at tho bank hal quite pre-
pared the public for this STEP Nevertheless the
Plete absence Of any drain Of bullion OF other forega
cause Of disturbance the value Of money has nov, with
sunioeA suddenness reached point at which Ea iers
seem inclined 10 pause and dscus the prospects OF ths
the disurbssoe experieDced results in no small de-
gree from fault in the working a monetary
Titles whatever 70 the other money dealers, who in their
defence, restrict their Tansaooas refuse 40
kite business except q an advance upoa the bank rsseS
and charge an unusually high price long pa
per. The banks to q certain extent are influenced 81
similar considerations. An extremely heavy demand q
thus concentrated upon the Bank OF RnEIand Who's
olher' securities have now risen 10 . great hsigit
Where is this moyemeut-this sntaeopsm-to endS Ths
commercial public are heavily mucted by t. and ts ces-
have nsrteca ,,cSa IN rssca hs s -
the other money dealers present experience proves
vat and Now h.. the %s"r r.
has been raised per cent the condition Of general
nn s nncs. HSe ss unsettled g was Desore
Per cent, the terms in other instances beiag
0,sp% snS.v 1 Az sae hsDx OF England tne a.
unusually numerous applications yesterday nsvins bsea
IN ANTICIPATION OF rise 10 the rate
The London Economist SAYS
the struggle which Is now going on in the money market
q any foreign drain Of bullion, the vita The
Continent beng more than for long time past
The discount hovseS py"ye Of suoeot ~ hs
per trade seriously The discount houses decline give
Sex spe eyc"ssa o = Is
Bank. They, At the time, demand worry high rates
AL, s s s1 'no Toe o.
by the Bank Of EDgandthe inconvenience is especially
.en, ne PUBIC srs e ~ me pre-
FIRMS have within the few days carried the eTp.ss
sion % .nst oPposon 70 the point Of refusing 70 lodge
which they have accumulated The large increase 10 the
feature N the face Of the con-
tons at the discount office Of the Bank Of Esisnd ssSr
eneo m,ssr.y owing 70 the large drsugh made upon
was again to full average extent In other an srsers
the demand to day was active and only the the best psp
nr tx snd upward '-' '0 '' IL "0'' 'A'sAn'e' De-
W. ,.o r,., .h or A..
ano, 90 :. h.s. ;r,rn..s =. ~. -" s:. ~
hraLar. ,,or,a 10 80 s;,,. 90 - .s:-.'.
..orch ~ 20 not "a o,.sr 80. ",h. -. ~
count;nou il 90 "v,c;ouo, a. tho pr;t;.h it, =.
or,,e. - 70 be If N. odvonc. 3, ~. r.to - A..
oount in london has no deener foundation Ma. .
combna alton Of discount brokers against the Bank.
few days will dispose of it. But the facts indi-
cate that other and more potent causes are at work
The expansion of trade in Great Britain and the
existing speculation in foreign stocks are unusual.
ly great at the present time. The amount of money
absorbed in the article of cotton alone ia enormous
Very nearly a million bales are held at
Liverpool, all of which have been paid
for. This cotton will be worked into
goods at vast additional outlay, and the Foods
sent abroad on long credits, to the Continent, to
this country, to Canada Australia, India China and
South America. little reflection upon the de-
mand for bank accommodation which must arise
from this cotton interest will shed valuable light
upon the advance in money in the London market.
The fact is, trade in England is too active for tho
amount of capital offering. There is too large Q
consumption of foreign goods, and too much manu-
featuring and selling on long credits for the present
bank strength OF the British metropolis. 1t is hard
" necessary to add that this is an evil which cor
reefs itself without serious injury. The utmost
mischief that can ensue is continuance for
period of greater or less duration Of high
rates of money, and probably some failures
among uRsound traders. So far as this country %
concerned, it is not likely that we can be affected
very materially. It il, to some extent, our heavy
cotton and light gold exports which have caused