The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-02-03

The Arago to-day takes out 81 ATS in specie.
The London Economist Of January 10 thus


The London Economist Of January 10 thus
notices the course of money matters
The discount market throughout the week has been
markably steady the rate being, q rule on TO per
discounted at ga per cent, but these excep
onal Money continues abundant although the rate Is
the present there Is no PROBABILITY Of tho rate Of
being lower. The Bank of England Is the great index
which regulates the rate Of money, and so long the
drain of bullion exists the present Bank rate must not
only be maintained but, If necessary, increased and
long the present rate OF exchange between America
and England exists so long will gold continue to aow
There has been great amount OF anxiety during the
week relative to the Bank Of France At period a
rumor prevailed that the Bank OF France was about to
suspend specie payments at another that new propo
sal had been made TO the Bank Of England TO effect
change OF gold for silver No venture 10 predict
what the present drain of bullion may do. II may
pei both the Bank Of England and the Bank OF France
suspend specie payments, but for the present neither
Enlistment has any intention Of the kind and we be-
eve both intend 70 adopt the same rule should the
sent drain OF specie continue viz raise the rate OF dis
count.
As 10 the Bank Of France having made any fur.
Their application TO the Bank Of England 10 ex-
change silver for gold, there ia truth whatever
In the rumor There H. however rumor this even
ing that the Bank Of France has entered into an
arrangement similar TO that entered into with the Bank
OF England TO exchange silver TO the amount Of 81 ESQ.,
600 sterling for gold with the Bank OF st. Petersburg,
and also that the Bank Of France has purchased about
100000 OF gold In Germany. And Ia well known that
the bank o. France has an amount Of silver dispropor
tonate 70 the amount Of gold it holds There ia nothing
remarkable In selling one and buying the other, when
ever favorable opportunity occurs indeed this is the
business Of all banks. There doubt also that the
drain Of bullion from France and England 70 America
arises precisely from the causes, viz balance OF
trade against both countries, arising from deficient and
badly gathered harvest and greatly increased purchases
Piled with falling OF Of orders from America have Gre
aed balance Of trade In favor Of the United States
which being paid In gold hence the large expectation
win continue as We before observed, long the
changes which are the index Of the balance Of trade,
continue az they
The latest accounts from America continue very un-
favorable in political extent, and Is feared that any
hopes Of preserving the Union are almost fororn
As for predicting what may be the consequences Of
cession the money market, s pure presumption.
thing hope will do, and that prevent further
purchases Of American securities for the present pos.
sbly may out that we have enough and spare
We have already exported f2,75o000 gold to America
and Ia probable that the Arabia which sails 10
will take out f260 900 To these amounts may be
added that portion Of the gold from California which be-
longs TO this country which 10 very considerable II Is
computed ALSO that Investments In America amount
nearly foo 900 600 sterling great portion OF these
pay dividends Consequently IS remances Of their diyi-