ABSTRACT

THERE has been a very good demand for discount at the Bank of England, but it was not quite so heavy as yesterday. There have also been large advances against securities at 7 per cent. In the open market a good business has been transacted at yesterday's rates for short loans, and the quotation for the discount of three months' bank bills is substantially unaltered, though business was again said to have been done at less than 5 ! per cent. A very uneasy feeling has prevailed, and various rumours, of which no confirmation could be obtained, were current, especially early in the day. Towards the close the alarm perceptibly diminished owing to the Stock Exchange Settlement having been got over without any failures being announced or any cheques returned, and also to a report as to a contemplated bank amalgamation being circulated, which has since turned out to be untrue, as we explain below. Some small amounts of gold are now arriving here in consequence of the firmness of the Continental exchanges, in addition to the large sums which the Bank of England has arranged for. As some doubts are still being expressed as to the absolute certainty that the gold in question will come, we repeat that the purchase of at least £2,000,000, or, to be precise, 50,000,000 fr. of gold has been arranged with the Bank of France, and £1,500,000 has been obtained in Russia. The £600,000 which is coming from Brazil, and may, we hear, be followed by more, is under the control of banks and firms outside the Bank of England. Our Paris Correspondent, telegraphing this evening, reports that the sum to be advanced is 75,000,000 fr., and adds that the rate to be charged for it is 3 per cent., and that the period is for three months. That version of the matter is not in full accord with our own information, but whatever the exact details may be, it is satisfactory to know that strong measures have been taken to provide for any unusual pressure of whatever

kind on the Bank's resources. It is possible that some gold may be wanted for shipment to New York, as the New York exchange has for some days been very low, but several good authorities are of opinion that no fear need be entertained on this score. In any case the Bank deserves the thanks of the City for acting as it has done, in existing circumstances. We may add that the Bank is placing none of the usual restrictions in the way of those who make reasonable demands on it for accommodation. Money can be borrowed by proper applicants for one day or any period which may be convenient up to ten days. On 'Change bills were in fair demand, with only a small supply, but rates were maintained at last Tuesday's level. . . .