The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-07-15
THE FINANCIAL SITUATION.


THE FINANCIAL SITUATION.
Condition of the London 'ohange-sym-
paIhy with tho Paris BOurse-rhe
influx OF cold.
From the London Times (ctty drticle) July l..
Consols continue to fail, while the influx o.
gold to the Bank and the brilliant weather for
The crops are uninterrupted. The market on
Saturday opened without recovery from the
duciion OF one-quarter ultimately esta.
blished. sympathy with the inactivity and
apparent cause of the movement, although the
state Of prices at Paris is partly owing to the
9lO,CO0OOO sterling-an operation that could
have no material influence on this side. Sup
posing the public TO be actuated at present by
any definite view, it can only be conjectured
that they are holding back under the impress
sion that some disasters, polb,iea or otherwise.
to turn the bullion tide, and create
general demand for money SO long as
lead to investments in securities or swell the
amount of notes lying idle in the dlls of the
various banks. In the former case there must
be q direct action upon the prices of stocks; In
the latter the rate OF discount must be further
lowered, and an indirect Influence will be exer-
eised, since the temptation to buy stocks that
pay from three TO five per cent. will be proper
two or one ana a half per cent, 1t is idle to
speak of sales of stocks by the public in the
sense of their creating an alteration in the
listing prospects. If a man sells $1,000 of
sols som ething must be done with the proceeds.
They must either be lodged at his bankers or
pow
in turn have to decide what he is to do with
them. Nothing, therefore, can prevent a rise in
the funds on the one hand or a fall in the dis
count market on the other and the question is
how far the public will permit the latter to pro-
ceed before the rate will have reached point
sufficiently low TO promote a return of courage
on their part suffic ent TO Induce them to hold
or course any persons who fancy they see a
strong probability of war. bad harvest, a
oSer eSIamiIY that in u he course Of six ST &C" or
twelve months may entirely change the present
position and d1sappoint all existing hopes, Will
pursue perfectly rational course in submitting
to temporary loss of interest in order that
they may have all their capital in hand at the
critical moment; but IL may be doubted If such
apprehenslons really prevail to serious extent.
1t would be some time before even the most
adver influences could now break down the
accumulations in the banks of England and
France; and meanwhile the loss OF interest by
equal to the percentage saved. 1t may be hoped,
therefore, that the public will weigh every point
of the subject, that they may act Mt all events
from clear conceptions and not from a blind
distrust, which is no less dlscreditable than the
madness of 1865. 1t is lamentable that the prin-
progress in this country that, while the ope-
rative classes are endeayorlng at every cost @ TO
the capitalist classes have no sense 10 steer
between the widest excesses of prodigality and
the most abject conditions OF mtserly dis
quietude.
The Bank of France.
The last returns of the Bank OF France, by
mail, show that the metallic resource has again
I3,750,0O0f
French Review of the Position of the
Bank OF EngJand-MOney CrIsis-The
Banks of Scotland and France.
Paris Tune 25) CoyreSpOndence London Times
a work of more than five hundred pages,
from the pen of M: Wolowski, the wel-known
economist has Just appeared. The SUBJECTS are
the Bank OF England and the banks or Scot
land, and they are treated in manner which
proves the writer to be thoroughly acquainted
with all the details concerning these lnstltu-
tions
on the bank and the suspension OF cash pay,
ments O797-l8l9G the second, on the hnanclal
appeared in the Revue des De,tc Mqndes Ia Ia
August last year, under the title "Vendredl
Noir The third part contains tue letter al ifa; M;
so widely from those of the writer, and M
Wolowskis answer thereto his letters TO D, the
cdise, with M Duvars Qhe editor of the Econo-
nliste) replies; the fourth, an essay on the Bank
and the nth on Scotch banks. The last part is
full orinformaLion hitherto little known In this
county. "Men of business in England" ob
serves the writer, TACT much, speak little, and
write less" and the manager of one OF the most
ancient and principal banks of Edinburgh, in
reply TO inquiries addressed to him, said he was
sorry TO say that there Is no good work on
Scotch banks IN tnat part wnlce @ IIeaGS OF the e
forgotten, and the explanations respecting the
controversy between those who defend and
those who attack IL omit nothing that is useful
TO know on the working of that great institu-
tion on the act of 1874, and on the present stu
atlOu Ol tno quSbb1Oh Va DohAS ohN Va SASNAS a.
England.
NJ. Wolowski says:-The relations between
the doctrines adopted by our neighDors ana the
discussions which the Bank OF France have
given rise to among as are treated In dlstlnct
chapter. Finally, have examined that most
useful institution, and one which is generally
SO i'll understood-the banks OF Scotland.
trust that the documents hitherto inedlted,
upon which rely, Will rect1fy certain Ideas TOO
readily accepted on this matter, and that people
Will cease to attribute to the admirable me-
chanlsm OF the banks of Scotland an erroneous
stgnincation. Far from furnishing arguments
TO those who pretend TO hnd in unrestricted
issue Jne panacea of credit, the Scotch banks,
seriously studied, show how frail and limited
Is the action OF that instrument in comparison
with the force derived from the agglomeratlon
and distribution of capital
On the whole, In all that relates to the char
acter and working Of the Bank of England, the
Bank OF france, and especially the Scotch
banks, which are imperfectly understood here
M. Wolowskis book Will be read with advan-
tage by those who are Interested In the era e
questions OF credit and paper currency.
In RussIa,
A telegram from st. Petersburg Saws Ar
imperial decree has been issued authorizinQ TIM
Bank of Russia 70 issue temporarily 35 OO0, 900 o
sury bonds. The object of the Issue IL the pro
motion OF commerce.
ROME.
Tho Bishops Reply TO the POpe'a AIIO.
cutlOMs
Rome (Jtllv q Telegram London Times
Tbe address presented yesterday by 400 bishop
10 the Pope, IN reply 70 his Ailocation, attest