The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-10-16
The Financial Report.
RISE IN THE RATE or DISCOUNT II FRANCE

RISE IN THE RATE or DISCOUNT II FRANcE-EFrEoT
or THE AMERICAN WAR on TIRE FUNDS.
rpars (Sept. 28) correspondence of London Tines.l
The raising of the rate Of discount by the Bank Of
France 10 per cent. NJ the moment that the Bank Of
England has diminished its discount TO three rer cent
has created a considerable oGcfy in the commercial world
and the funds have felt the effects Of it, The Cons,tu
fosa takes upon itself TO demonstrate the necessity of
IT, II states that tho Bank had 1856 nliois of bullion
the 18th OF September, and has only 49, ftyon
millions less in fortnight The cause of this drain is
sought in the purchases Of grain and bills Of exchange
between Marseiles Lyons and Italy.
To buy bullion would have been only enrching specu
la3rs, nothing remained but to raise the rate Of dis
count The objection that the bullion still in hand is
than half Of the notes in circulation is met by
the objection that the greatest part Of the bullion is in
the hfty-two branch banks, while only from eighty
ninety millions remain for Paris, which are scarcely too
much for FIVE hundred and ten millions OF bills
which are in the ,rortteuielle. The circumstance
that English capital takes advantage of this
state Of things is explained Jy The american crisis,
,och has Para yscd everything; and by the importation Of
grain from England, which balances the expectation of
other articles from France.
THE FALL IN THE ENGLISH FUNDS.
From the London Times CITY. Article) Oct. 81
The fall in the English funds has to-day made more
rapid progress and they have closed at further decline
OF about three cghths per cent. The first operations in
ton from the closing price of yesterday and the market
exhibited increased weakness until sales effected
S25s partial rally then took place to 921s but
long maintained, the news of the Bank OF France
having advanced their rate Of discount another half
cent-namey, to sper cent-being followed by renewal
OF speculative sales, which caused fresh fall TO 021
* money and 92ss for the 10th Of October Tho influx
Of specie the Bank and the approach Of the dividends
continue be totally disrcgnrdcd elements likely
have any influence on tho future tone OF prices.
from the london Times (city artcle), Oct. Q
France Is being pressed upon by the kind Of nfu
ence from which we ourselves suffered so much during
the past scason-namey very deficient harvest, and
consequent Of gold 1t popularity of the present
OCCASION however, that not little OF the gold which has
lett the French Bank has to this country Very
probably become necessary for hereafter to i'm
port good deal Of grain to make up for what
parting with satisfy the pressing requirements
France the time, the oil gold from this
source has contributed to the plethora of money witnessed
here From the the exchanges with France
and ether continental parts remain r landing
tho natural tendency of capital to flow TO the market
where il commands, relatively, price much higher
1t somewhat remarkable under these circumstances to
observe the unchecked flow of gold into the Bank Of Eng
land
LONDON MONEY MARKET.
Funds on the % opened with continued depression
but subsequently rallied and closed firm at slight al
vance In the discount market best bills continued to be
taken at 2as but there increased demand nj til,
Bank Of England in preparation for the Payments o
the 4th.
| Consols closed Friday at 927s %, for money.
Tho weekly return of the Bank OF England shows lie
| crease ia bullion OF fl17 600.