Year: 1869

Increase. Observation-Disclosures. $1SS


The following is the article from the London Time
MAY 81, upon which was based much or the excite
ment in gold to-day


The Bank OF England have to-day raised their rate
OF discount from four per cent at which II was fixed
on the LIST of April TO four and a half per cent.


Two or three weeks ago the public were warned
that this step must be considered inevitable II any
further adverse movement should occur IN the posi-
ton OF the bank accounts, and the return published
this evening shows serious continuance or depres-
sion. The figures have been partially influenced by
some specie Withdrawals for Scotland which usual y
occur at this PERIOD but the main cause IN operation
Is the same as that which last month led 10 the al
vance to four cent. An extraordinary degree of
nation has been prevalent for long period In Amer
lea, and is fostered by money drawn from this side


III the shape either OF investments in or of loans on
United states bonds SO long as this continues there
can be no collapse in New York, and 1t must be eX-
pected TO continue until the rate here rises 10 point
SO nearly equivalent to that at New York as TO offer
no temptation TO borrowers. To the leading finan-
cial writers In America the has been perfectly
plain for some time but among European capitalists
there has apparently been little disposition TO enter
tar, tam a similar view on the 2lst ult. it was was
power of consigning bonds to our markets
was found to be equal to that OF having the CON-
year round, and although the writer saw that there
could be but one termination 20 the business, and
that the final catastrophe must be great tn proper
uon to any delay he foreoore TO predict the period
OF Its arrival, whether 1t might be few weeks or
even not for year or two. That question, indeed,
was that could only be settled on this side.
IL was reckoned that mot half the available
supply Of bonds had yet been sent away and,
consequently, II we were prepared to go on alb
sorbing them there was no reason why ''eat
drink and be meTyr should not be the motto for
months, perhaps for years to come. Whether the
advance OF the bank rate TO four and half per cent
will create pressure and dstrust sufficient To check
the ardor OF those who are placing their money on
these securities Is the point to be solved All that
can he positively known is that If four and a half
per cent will not suffice the movement will go on to
the requisite point whether that point be five per
cent or ten per cent. We cannot keep UP the New
YORK imitation beyond a certain range any more
1865. Doubtless many persons Will be disposed to
attribute the present state OF our money market
principally 10 the Continental loans lately effected.
But the instaments on these loans are spread over
long periods, they are diifused among all the
leading commercial centres OF the Continent,
and the greater part OF them has been required TO
pay dividends other debts due 10 the lenders them
selves Looking at the slackness of trade and the
economy pracuced III all branches OF the expendi-
ture OF the people during the past three years to-
gether with the constant influx OF money to this
country for interest on foreign loans 1t may be ques
toned if the late advances to Russia Italy. Spain
and other continental States would have raised our
discount terms 10 more than three per cent Indeed
the whole amount involved in this way must appear
insignificant when, with the consciousness that at
bonds are held in Europe. we find the stream still
pouring in, and are told that not half the available
supply has yet been forwarded to US.


The receipts for customs and the receipts pay
ments and balances at the Sub-Treasury in this city
for the expired portion OF the week have been as
fOllows:-