The New York herald., 1864-10-18


bull TO the bear side rather unusually and another
NOR was circulated effect that Richmond was being
evacuated The depression In the gold deferred
spectators for tho Stock Exchange from ope-
rating and induced TO realize, which gave the
ket downward tendency and the feeling the street
at the close the reverse OF buoYant.
By the latest from Europe learn that the
diLion Of the Bank Of England was improving under
diminished outgo and increasing influx OF gold
upon the continued operation OF the high OF discount
This favorable symptom, for the Immediate effect Of
the last advance TO nine cent not equal 70
taton based upon previous experience. In Words
the 1ow OF gold into bank Golfers, which had before
almost invariably taken place after rise In the rate OF
discount did take place in this instance, although
the demand for export may have been In degree
checked The hal panic which had prevailed in financial
and commercial CIRCLES was also, we are told giving
place to queter feeling Several failures had how
ever, occurred.
As the British government is dependent to great
extent upon the or the Bank Of England for
preserving national faith, and that establishment
accepted the barometer OF public credit, may be in
teresng 10 institute comparison betweenl its liabilities
and resources.
And here We may remark that the bank is compelled
20 pay all Its notes and deposits in gold demand.
st the rate f3 It's. loKd per ounce by the oct
which obliges 1t to publish weekly the state Of its asrs
According to Its statement for the week ending Scptem
ber s. had in its banking department only f6 sos ,6e6
10 notes and f72T 433 in coin to meet demand abi
ties 70 the amount OF fss 6s2 II is true that held
government and other securities for the remaining
f2l 584 but how could the bank convert these
securities into hard cash upon sudden demand for gold7
More than half OF them are due from the govern
ment, and . considerable portion Of the re.
ander ID due for advanced upon mortgages which
would require months for realization and the private
aocuritiaa of Bauk Of England
from risk than those held BY any other bank conducted
sound basis. 10, therefore, clear that the BANK OF
England had only S o96 at its immediate command
to meet the amount Of liabilities before mentioned the
date OF the return quoted But this il not AL The stock
ot bullion In both the banking and issue departments
the 2sth Of September sI3 l2l l2a and the bullion
In the Bank Of England the only unen reserve in the
cosatry. In 1871 this reduced to SI0Se, lie. In
1875 stood as xeA $40, and in lss1at f40ee 600
IN thess three years exceptional reduced
ths point present alnoss impossble but
10 view Of the Increased liabilities OF the Bank Of Eng
land ITSELF and the many other banks doseGdcpt Upon II,
the reserve comparatively as small. Tte bullion 70.
has not increased since 1884, although the export
trade has progressed In value from less than 600
70 more than f1x6, 900, 600, and the liabilities
Of the four largest joint stock banks have increased
during the same period from than eight TO more
than sixtY.Avs millions sterling. The present liabilities
OF the Bank OF England and these four Joint stock banks
exclusive Of all the other banks in the country are more
than eleven times the Of the bank The
ocua.sos OF the United Kingdom exceeds fas 900 600,
and the general liability o, bankers about twenty times
tne amount OF their circulation, which would make An
aggregate Of seven hundred millions sterlrg Proper
~ speaking, the whole country circulation of
England and that part OF the Scotch and lrh crcu,a
ton uncovered by their should be added 10 III
sum for OF any local issue being dscrecec like
that Of The Western Bank OF Scotland in 1857, Bank OF
England their equivalent would have TO bo sub
stituted Yet TO meet all this immense liability there is
in the banking department OF the Bank OF Eng.
land little than millions Eve hun.
dred and thirty thousand, and altogether only
thirteen millions one hundred and twenty
ono thousand pounds Experience has proved thai the
operation Of unfavorable exchange Is upon the bank
ing reserve, and not upon the circulation for while
heavy drain has been brought to beapon the former,
rns latter has remained nearly stationary During the
tha tvra