New-York tribune., 1878-02-02

That the Bank has made I'll. alteration WIN view 10
diu ish the discrepancy between is own rate ana hc
market rate IL clear n. II has done though the rcrryr
il about fl5OO0O ths week than last The Bank may
anticipate AN Increase IN ts reserve aud 20 HAY 3e WI.
ling TO allow s grasp on tho bullion holds 10 he relaxed
by lowering the rate Of discount. bat the probability
looks, ~ present, the other way IL Is not ehhoty
IN accordance the usual preoedents OF the Bank to
lower the rate OF discount when their reserve
sinks, though there may have 0ccaslonay oegu W
examples when they have done TINS before. we
should have thought II were TO the general interest," mn M
they should have ab-tanrd from lowering ths Ite IN
the reserves showed an augmentation instead OF de-
cline Should demand for bullion arise, the banks may
again find Themselves compelled, III oIuer 10 10
protect their reserves, TO charge rae @ To- 10
which the outside market will not rise III III
proportion; and this Is very p.rpcxng ,hhs 10 hil
those concerned ~ dealing with money; Ana thcfe Is NJ
other point which must not be lost sight o whicn n
gradual dimnution which has tax place ih inc soca VI
bullion held by the principal banks oi EnrOpe duIing tr
year which has just closed movement so enurey ln
one direction ~ not niue rcnlarAape. ~ Si,o"n @
close connection bctwccn the great centres ot european
industry closely, and points ont thit nonEn We
may be able, should We require IT, To rIPlehlsh our so
of bullion from abroad yet that. should snch uenl
arise should lind ourselves competing III markets
subject TO the same Influences as our OWL
This to me- Mr. Editor. is the nub OF the whole
matter, and the motive of this letter.
TIE LOSS OF BULLION BY EUROPEAN BANKS
The decline in the specie reserves of tho great
European banks which | did not quote in ITS con-
nection. in order not to break the thread OF The
ECOnomsPs article was rs follows: From the com
menccmont to the close of 1877, the Bank OF
England lost bullion to the amount of t4,leZ'o9o;
the Bank of France to the amout of f3,s039l2; the
Bark Of Germany TO the amount of El,2'6'ooo' ana
the Bank Of Belgium to the amount of E733.ooo'
making a total OF $685., ,007 or nearly $780,
600 900.
Now, it must not be forgotten that the most OF the
bullion thus lost by the banks OF Europe, has been
gold as the reserves Of all but the Bank OF Belgium
las 10 which recall no statement) arc chiehy In
that metal. This is very Significant
fact, very important one for us IN
this country to consider, at time when Congress Is
legslating on our future metallic system and when
nearly every influential banker and gold mono-meial-
list in the Eastern States rdcules the assertion OF
bi-metasts that there is scarcity of gold i'll the
world to supply the wants OF a purely g0hl
system for Europe and America. Where has the
gold which has left the European banks gone TO- Is
Il not the only gold which Mr. sherman has been
accumuating in the Treasury, against resumption
of specie payments Doubtless large
part has thus come To this country, and some
though probably lcss, has gone to Russia
and il is not To be forgotten that while the grea,
banks of Europe have been losing S5O,0C0000 OF
gold, the American mines produced i'll the