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Leader (1850-1860), 16th October 1858, Edition 1 of 2, Page 1108, Untitled Article

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      Untitled Article

      C ITY , FlJIDAY EVKSINCk . The Bank Directors have remained firm to their purpose of not making any reduction in the rate of interest until the pressure shall be too great for successful resistance . " When we say the Bank Directors , we menu , of course , the majority , for it would be useless to disguise the fact that the Bank Directors are not all of one mind on this grave question . Those who contend for the principle of

      cheeking speculation , and who keep the minimum as high as possible as a means to that , end , arc no doubt worthy of commendation for their patriotic motives . But it may readily become a question whether such guiding motives come within the pale of tlie true principles of economical science ; of course we speak of economies as including financial matters . The supporters , then , of the

      non-reduction theory rest their case mainly on public grounds , and profess themselves to bo willing that private interests should give way to what they deem the public good . So far , then , we repeat they arc worthy of praise . On the other hand , 1 he section of directors , who are in a minority , and whose sentiments are shared by a large body of eager capitalists , hold the opinion thai the Bank of England has no business to meddle with the trade , or

      advices of further remittances from almost evenr quarter of the globe have been , received . Under these circumstances , idle capital must and will fiJi employment , and if legitimate undertakings cannot be found in sufficient abundance , . specula tive-under takings will be organised and patronised ; and then " hi a short time , when the bubble collapses , we shall hear no more of accumulations of bullion lookinnout for employment—but we shall hear wailines of quite another character . c The amount of gold on the way to this country from Australia and other parts is ' not far short of a million sterling .

      ' 1 he Bank of Prussia , following the example of the Hank of Frankfort , have raised their rate of discount from 1 to 5 per cent . The unexpected stringency of the German markets is almost solely attributed to the arrangements entered into by the Hank of Vienna with a view to the resumption of specie payments - From all parts of Europe silver is being attracted to Vienna . The Scinde Railway Company paid on Wednesday t 3 the ¦ credit of the Secretary of State in Council for India 103 , 300 / . on account of the . second issue of capital . The Committee of Shareholders of the Great-Western liauk in Scotland , have met and come to the following resolution : —" That , taking into consideration , the lamentable condition of the affairs of the Western Bapk now disclosed , the committee of shareholders are of

      opinion that the united shareholders have a just claim upon the deputy-governor and directors for reimbursement of the calls made and to be made , as well as for the loss of the shares ; and that this resolution shall be forthwith communicated by the secretary of the bank to the directors in the management at the period when they declared a dividend of 1 ) per cent , on the stock ; in the , month of June , 1857 . " The Atlantic Royal Mail Steam Navigation Company ( limited ) have issued their prospectus . The originator of this undertaking is Mr . J . ("> . Lever , of Manchester ,

      who has placed four powerful steam-ships upon the line between ( Jalway and St . Juhn ' . s , Halifax , IJostun , and Xew York . The advantages of the . route having beea practically demonstrated , it is considered that the time lias now arrived when increased development may be given to the enterprise by the co-operation of the moneyed public . The capital of the new company is iixed for the present at half a million sterling , in lo / . shares , of which more than one-third has already been subscribed for . It is estimated that 500 , 000 / . will b 3 sufficient to supply steam-bliips for a regular weekly packet service .

      A plan for establishing a Country Bankers Clearing House in London , on the same principles as the Clearing House in Lombard-street , has been drawn up and submitted to by a number of country bankers , most of whom , we understand , regard the movement very favourably . - The directors of the Unity Bank have made a further call of 5 ? . per share , payable on the 4 th December . A call of 21 . is to be \ mu \ on the shares of the Worcester anil Hereford Kail way Company by the 1 st November .

      Government have accepted the tender of the Peninsular and Oriental Steam Navigation Company i » r < i monthly mail service between this country ami Australia , rut Suez . The route proposed by the Company is by Mauritius , and the time in which they have undertaken to convey the mails between Southampton arm Sydney is 5 . 3 , add Melbourne 52 days , which will do reduced to 50 and 17 days respectively by the Marseilles route . The intervals allowed for replies to co rrespondence from England will bo seven days at Sydney , i «> » J Melbourne , und 17 at Adelaide . la England there wi » bo nn interval of about 12 days between llio arrivals and departures of the Marseilles portions of the mans .

      the speculation of the country . They maintain that the Bank of England is a mere trading- establishment \ vith no responsibilities , and -with no other view bcyoml that of making the most of . their capital for the benefit of their proprietary . They say , and not without weight , that the rate of interest ; ought , to follow the ordinary law of "' supply and demand , " and that . it is no part of the duty of the : Bank . Directors to interfere with that law for the purpose of promoting imaginary public good . These parties , of course , look at

      the question in its mere pounds , shillings , and pence aspect ; they leave out of sight , as beside the issue , all those higher considerations that are supposed to influence , and do influence , minds of lofty and unselfish character , and in so doing it must be admitted they contrast somewhat disadvantageously with that section of their colleagues with whom they differ . But is it true that the Bank of England does not regulate the rate of interest ? Legally , perhaps , that is no part of its duty , but , practically , the Bank does regulate the value . Legally

      the Bank of England may have no right to regulate or influence trade-or check speculation , practically , however , the Bank of England docs this , and docs it sometimes without disguise . Xt is notorious that the rapid rise in the rate of interest , from 4 to 10 per cent , in a few months , contemplated objects connected with what arc- considered by free traders legitimate trade operations und speculation . The great riso was intended to check the efflux of gold and to explode that mass of unsound speculation which it was notorious had grown up within the last few years .

      The question naturally presents itself—Is it right that any private establishment should have such a vast power over the monetary interests of this country P Tho riscdf 10 percent , a few months ngo no doubt worked much good—it purified the commercial atmosphere for a time ; but in oflbcting this advantage it also created much inconvenience and obstruction to legitimate trado , and in some instances tho effbot was to placo solvent ; houses in a position of apparent bankruptcy . Surely a systoin that

      produced suoh results is unsound . Wo admit tho cliflicultics and tho intricacies of financial science , but wo think tho broad manifestation of erroneous principles which tho prudontial operations of tho Bank during tho last year disclosed is at least worthy of attontion . From tho result of our inquiries , wo beliovo tho Bank will not be , able to hold out ngainst tho consequences of tho vast nud constant accumulation of spooio that takes placo . Noarly a million more is reported to bo on its wny to this country , < uicl

      Untitled Article

      1108 T H L J _ jkjjj * 4 i 2 J- - [ No . _ 447 ^ 0 oTOBri ! B ; 16 , 1858 .

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      Blio on the line of the Eastern Union Company , near Ipswich . By this route the distance to Lowestoft and ¦ Yarmouth will be reduced 37 miles . Fben ' ch Railways . — The following are the last returns of the gross receipts of . the principal French railways from Sept . 24 to Sept , 30 : — Northern : Passenger ? , 489 , 3 G 6 f . ; goods , 710 , 731 f . ; total . l , 200 , 000 f . Western : Passengers , 5 G 2 , 031 f . ; goods , 492 , G 18 f . ; total , 1 , 054 , 649 f . Orleans : Passengers , 53 S , 852 f . ; goods , G 97 , 53 Gf . ; total , l , 22 l , 3 SSf . Strasbourg : Passengers , 43 l , 587 f . ; goods , 725 , 8 Slf . ; total , l , 207 , 468 f . Paris to Mediterranean : Passengers , 771 , 747 f . ; goods , l , O 25 , 051 f . ; total , l , 79 G , 798 f . Southern : Passengers , 211 , 314 f . ; goods , 255 , 8 S 9 f . ; total , 467 , 208 f .

      Lyons to Geneva : Passengers , 75 , 4901 . ; goods , 44 , 0 ' C 2 f . ; total , 119 , 552 f . Lewes and Uckfield Railway . —The opening of this line took place on Monday . The directors and between 500 and GOO others went from Lewes to Uckfield by special train , the journey occupying about half an hour . A dinner to celebrate the event afterwards took place . The railway is a single one , with land and works provided for a double line , and forms a junction with the Keymer branch of the London , Brighton , and South Coast Railway .

      Effects of Raix on the Edinburgh : asd Glasgow Railway . —A mass of sandstone rock , weighing about sixteen tons , has fallen into the deep cutting of the Edinburgh and Glasgow railway near Bishopbriggs . A goods train , which left Edinburgh soon after mid ^ night , came in contact with the mass of rock , breaking it in several pieces . The locomotive was pitched off the rails on to . the up line , where it lay upon its side , blocking up the railway for several hours . Happily , no one was hurt , and the damage done to the rolling stock and the permanent way was but trifling . About nine am . the various passenger trains were enabled to pass . This stoppage was to be regretted , as the number of passengers was greater than usual , Falkirk October Tryst commencing that morning . Xo foresight could have prevented the accident , which arose entirely from the heavv rains of Sunday . —Glasgoio Morning Journal .

      Vale of ClwyD . — The opening of this line was celebrated with great rejoicing at Rliyl , St . Asaph , 'and Denbigh . The line commences by a junction with the Chester and Holyhead Railway at Rhyl , and , traversing the vale of Clwyd , terminates at Denbigh . The whole length from Rhyl to Denbigh is 11 miles . The average price of the land required for the line is 1200 ? . per mile , and its construction , including stations , &c , is rather over 4500 ? . per mile . Socth-Easterx . —The gross traffic receipts on this line for the four weeks ending 25 th of September last amounted to 105 , 432 ? . From this was deducted tho expenditure , amounting to 37 , 809 ? ., leaving , a balance of 67 , 623 ? . The total receipts for the eight weeks ending the 25 th of September amounted to 210 , 058 ? ., arrd the total expenditure to 75 , 718 ? ., leaving a balance of 134 , 340 ? .

      Colonial Contractors and Sir Samuel . Pkto . — At Sydney the Assembly has voted above 700 , 000 ? . for railway extension in addition to 100 , 000 ? . voted last year for rails . This sum is expected to provide for 60 miles of new railway , 20 to tho south , and as much to the north and west . Mr . Gabrielli has been negotiating with the Government to secure the contract for these works on behalf of Sir Samuel Morton Peto . The colonial contractors are naturally jealous of Sir S . M . Peto , and there has been a great deal of manoeuvring to

      discourage him from adventuring ; yet tho incompetence of tho local contractors to undertake any great works Is too glaring to be denied . But the Sydney builders and bricklayers , if they have not skill and capital , have votes , and that is a consideration which a Cabinet cannot afford to despise . So to compromise matters tho work is to be divided . One third of it is to bo thrown open at once to satisfy the colonial contractors , and a message is to bo sent to Sir S . M . Peto that ho may have the other 40 miles if ho likes .

      West Flanders Railway . —Yesterday afternoon the half-yearly meeting of tho proprietors was hold in Moorgnte-street , City ; Mr . W . P . Richards in tho chair . The report stated that the receipts of tho line , from tho 1 st of January to tho 80 th of Juno amounted to 18 , 707 ? . 7 s . 4 d ., and tho expenditure to 10 , 480 ? . 18 s . 8 d ., leaving a balance of 53862 , 14 s . Id . This balance would admit of a dividend of 2 s . Gd . per share . Tiiaffio Returns . —Tho Eastern Counties Railway traffic return shows this week an increase of 1070 ? . ; the Midland an increase of 502 ? . ; tho Lancashire and Yorkshire a decrease of 204 ? . j tho East Lancashire a dooronso of 258 ? . ; tho Manchester , Sheffield , and Lincolnshire , n > doorcase of 1507 ? . ; and the North Eastern a decrease of 528 ? . ( compared with tho " actual" receipts for tho corresponding week of last year ) .

      Fonraiajf Ihon in Fkan ' ob . —Tho decree permitting tho Importation of foreign iron into Franco la to bo renewed , with certain modifications . An imperial dooroo to that effect ^ Yl ^ bo published on tho lOtlx of October at tlio latest .

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      MONEY MARKET AND STOCK EXCHANGE .

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      BANK OF ENGLAND . An Account , pursuant to tho Act 7 th » V . tlio latlnW cap . afl . for tho wouk oudlnff on Wednesday , tho urn « " > of October , 1858 . ISBUE DEI > ABTMENT . £ Notes issued 33 , 338 , 800 ^ Yor "" ou ' rHlos ' o ' . "f ^ ' . uuO G ? ioii C " !" . *" »••" ' " l *> ^ Silver b ' uiiion i 5 £ mro i ****** nANKINODHPAnTMMNT . £ Proprietors' capital 14 , 05 : 1 , 000 Goy 0 ™ " ? , ^ ,, ^? , , * KohI 3 , 01 ) 1 , 0 is ! rlllos , A ?? , } Aui ' ubllo deposits ( In- lJuad Weight A » 0 i (] 1 cluUhiff JOxoho- )?« Hy ) •; 'ii \' ' | . si 7 , 70 » quor . OomuiisHion- ^ A i [ wv Sotlu lt T . iJ iui » 7 i " era of National Notoa ....- • • i . ' , ; "J . ' Debt , Bavlnga' Gold and tflivoi ^^ Hanks , and Dlvl- t Coin dond AecountH ) .. fl , < i 5 fl , flO 7 , Other deposits .... l < fc , ( JUU , SOi ) 8 9 ffi , *!* * ^^ MW jT * ' r --j - Dntod tho 14 t ) h day of Ootobor , 1 B 58 .

  • Citation
    • Leader (1850-1860), Oct. 16, 1858, page 1108, in the Nineteenth-Century Serials Edition (2008; 2018) ncse.ac.uk/periodicals/l/issues/vm2-ncseproduct2264/page/28/