"Yes, we have found, contrary to what would have been anticipated, that the power which we possess and exercise of raising the rate of discount keeps the demand upon us within manageable dimensions. There are other restrictions which are important. The rate we charge for our discounts, we find, in general; a sufficient check." This is the principle-the raising the rate depends upon the condition of the Bank, and it has been altered some twenty times within a year, rising and falling in proportion to the reserve of notes which it has on hand. In illustration of the principle that governs the bank rate of interest, we have prepared the following table, showing the amount of reserve on hand at the period of each change in the rate of interest. Whenever the amount of notes on hand is less than one-third the immediate liabilities, the Bank raises the rate, and again lowers it when the "reserve" of notes is much above that proportion. This table indicates not only the principle on which the bank acts, but the prompt effect which that action has usually, in turning the tide of investments towards England, and causing notes again to accumulate in the coffers of the bank. In the last six months the movement has been more difficult, and the range of interest has been higher. Thus, in three months, from February to May, the rate ran up from 6 to 9 per cent; then in thirty days ran back to 6 per cent, since which it has risen to 9 per cent once more. The rise in interest acts now more slowly upon the current of money, and the outward movement is more active on its relaxation. This seems to arise from the growing demand for money in those quarters from whence a rise in the English rate has been wont to draw it. At the last return, October 5, there was a great decline in the reserve, and the amount was below the rule. The rate ought, therefore, to have been advanced to 6 per cent. It was considered, however, that the decline in reserve was partly due to the quarterly payments, to the demand for money for the interest, for payment of salaries, and other causes. It was also considered that owing to the state of the money market on the Continent a further rise in the rate of money would fail of its usual effect, and might produce discredit that would cause money to be withdrawn. A continuance of such a state of the market would compel a sale of securities on the part of the Bank, thus depressing, the prices of securities as it has already those of produce of various kinds. This in effect took place in the week ending on the 12th. The Bank then disposing of £424,692 public securities. The returns of the Banks were as follows: Date. Dec. 2,... 66 9,... 66 16,.. 23,... 80,... Jan. 6, '64 13,... 66 20,. Circulation. Deposits. Deposits. Securities. 21,685,732 7,234,894 12,924,545 31,980,889 13.048.475 8 per ct 20,801,207 8,629,856 12,981,276 32,622,659 13,008,617 8 20,382.764 9,103,738 13,265,068 32,303,049 13,675,474 7 20,273,799 10,266,546 12,711,637 32,270,286 14,217,067 7 20,686,538 10,841,991 13,021.212 33,438,154 14,862,605 7 21,322,304 10,001,982 13,052,604 33,486,952 14,196,754 7 21,396,420 5,264,097 15,411,794 81,726,575 11,708,597 7 21,445,793 5,689,074 13,879,877 31,445,860 12,974,109 20,875,825 6,337,246 13,406,627 31,017,449 13,022,220 8 21,162,626 6,748,867 13,372,981 81,436,334 18,303,243 8 10,... 20,708,113 7,254,682 12,882,226 36,923,317 13.472,271 7 17,... 20,696,172 7,079,789 13,306,156 31,078,328 13,583,635 7 24,... 20,207,871 8,153,601 12,426,673 30,504,827 13,819,412 6 20,840,374 7,893,633 13,541,278 31,980,446 14,034,222 66 9,... 20,563,825 8,863,364 12,434,975 31,769,811 13,884,389 6 16,... 20,833,112 8,570,711 13,105,800 31,929,164 13,946.943 27,... Feb. 3,... 23,... 20,366,705 9,841,323 66 30,... 20,908,644 10,280,458 April 6,... 21.528,914 9,818,880 13,348,299 34,223,509 13,616,762 6 13.586,029 31,385,305 13.080,300 6 13,684,069 31,596,179 12.743,302 7 27,... 21,484,602 6,217,965 12,620,036 30,961,635 12,567,776 7 May 4,... 22,045,792 6,981,132 12,278,903 32,070,427 12,454,244 9 46 11,... 21,478,987 7,299,434 12,901,160 32,239,210 12,705,251 18,... 21,313,352 7,568,661 12,962,402 31,855,696 13,267,416 8 66 25,... 20,868,047 7,971,003 12,882,042 81,297,181 13,713,943 7 June 1.... 21,246,840 8,286,719 12,493,776 81,329,121 14,052,761 7 8,... 20,766,405 8,748,510 11,966,204 80,711,740 14,043,129 7 15,... 20,597,557 8,512,311 12,790,361 80.884,192 14,304,205 6 22,... 20,623,207 9,287,594 13,051,661 31,948,856 14,319,061 29,... 21,153,606 10,213,535 12,890,244 33,297,897 14,197,849 6 July 6,... 21,890,063 9,489,130 13,471,415 34,286,592 18,930,809 13,... 22,161,001 4,683,803 15,482,746 31,637,509 18,701,112 6 22,302,688 4,462,490 13,408,675 30,471,085 13,171,561 27,... 22,158,547 4,961,046 13,719,621 31,346,657 12,996,685 8 Aug. 3,... 22,489,710 5,155,794 13,519,626 31,909,793 12,877,483 8 10,... 21.881,314 4,968,222 14,419,766 82,202,646 12,609,925 8 66 17,... 21,554.139 5.145,800 13,950,446 31,594,936 12.725,759 8 24,... 21,047,048 5,288,725 13,714,161 30,861,710 12,831,751 8 31,... 21,289,324 5,815,742 13,073,751 31,058,341 12,980,088 8 Sept. 7,... 21,367,124 6,022,373 12,904,085 31,202,405 12.970,447 9 21,... 20,842,714 6,815,611 12,390,681 30,795,458 13,171,197 9 66 28,. 20,751,741 7,083,958 12,588,902 31,298,584 13,121,123 9 5,... 21,915,817 6,877,591 11,731,746 31,530,895 12,998,210 9 66 The failure of the Leeds Banking Company was very disastrous. The capital is £100,000, and the deficiency is £817,663 6s. 11d., which, therefore, is the sum the managers of the bank have made away with. It is eight times the capital of the bank, and exceeds by nearly 50 per cent the legitimate liabilities of the bank its liabilities to depositors. Though the capital of the bank was only one hundred thousand pounds, it has been giving endorsements, lending its name and credit for all but two millions, and these millions were of so bad a character that the accountant divides thus: Of this immense amount the above deficit is the first result. The return of the Bank of France shows a considerable decline in specie, as follows: BANK OF FRANCE. Loans. Specie. January -fr.751,649,983 fr.169,027.010 fr.813,490.825 fr.159.797,667 February March April May June 294,892,295 66 280,511,406 Deposits. Interest 7 705,516,796 182,573,888 775,096.775 160.110,225 7 642,135,993 195,994,738 746,610,375 142,925,719 6 643,570.276 219,320,720 683,332,517 242,824,609 577,309,524 23, 594,563,9.73 Circulation. 759,926,425 133.701,530 6 767,443,475 178,434,305 8 725,381,925 156,685,209 6 In the week to September 24, there were fears of a rise in the Bank rate of interest, but a single glance over the Bank return shows that the maintaining of the discount rate at two per cent below the discount rate of the Bank of England was compensated by a more rigorous and stringent examination of the commercial bills. Thus, the discount of these bills presents a decrease of 47,780,000f for the week, consequently deposits are also in decrease of about 20,000,000f. Such figures explain sufficiently the increase of 3,273,000f in the bullion, and the decrease of about 31,000,000f in the circulation of notes. In the subsequent weeks there was an increase in deposits, accompanied by a rise in circulation, which was reflected immediately in a loss of bullion. This loss reached 17,000,000f. in the last week, and the rate of interest was put up to 8 per cent. At Amsterdam, the Bank of Holland raised the rate to 7 per cent. In Turin, to 9 per cent. The rates are as follows: Vienna, 5; Berlin, 7; Frankfort, 5; Amsterdam, 7; Turin, 9; Brussels, 6; Hamburg, 5 per cent. The Bank of France in 1861 and 1862 placed in reserve a portion of its profits to meet anticipated losses by the failure of Greek houses at Constantinople. The losses having in definitive been less than were believed, the Bank announced that it would make an extraordinary distribution from that reserve of 35f per share. Letters from Germany say that considerable uneasiness prevails in the money markets of that country with regard to the financial situation of Austria. The deficit for the present year will be very considerable, and there is every probabil ity that that of next year will be greater; added to which, the Austrian Government is under the necessity of making very heavy payments to the Bank in the course of 1865. The Ministers, who have held several Cabinet Councils, seem to know not what to do. It is hardly possible to raise a new loan, owing to the deplorable state of Austrian credit; and a sale of the Crown lands could not, at the present moment, realise more than 100,000,000 florins, which is a sum totally inadequate for what the situation requires. The only effective remedy for the financial embarrassments would be an extensive reduction in the ar.ny; but the state of political affairs does not render that possible. THE COLONIES OF GREAT BRITAIN--THEIR AREA, POPULATION, The Colonial dependencies of Great Britain have, during the twenty years previous to 1860, progressed very rapidly in population and trade. We find in the "Statistical Journal of London" an article from which we have compiled the following very valuable statistics respecting their growth, extent, &c. The Colonies and dependencies are arranged in seven groups, chiefly according to their geographical affinities, in the following manner: 1. The North American Group. 2. The West Indian Group. 3. The West African Group. 4. The South African Group. 5. The Eastern Group. 6. The Australian Group; and 7. The Mixed Group, coutaining places not in any of the foregoing divisions. 1. North American Group. This group contains seven colonies, viz.: 1. Canada, 2. Nova Scotia, 3. New Brunswick, 4. Prince Edward Island, 5. Newfoundland, 6. British Columbia, and 7. Vancouver Island. The aggregate territory of these colonies covers 512,169 square miles; the population, according to the latest returns, was 3,294,561, of whom 34,807 were people of color. The value of the imports and exports in 1860, and the extent of the trade with the mother country, are shown by the following figures: One-third of the commerce of this group is carried on with England; the greater part of the remainder goes to the United States. The whole amount of revenue raised for the year was £2,064,313, which is equal to a poll tax of 12s. 7d. The public debt at the end of the same year was £14,232,502. The following table will show the area, population, trade, debt, &c., of this group in detail: NORTH AMERICAN GROUP-AREA, POPULATION, DEBT, &c. Total.... 512,169 3,294,561 2,065,000 11,282,000 11,920,000 10,792,000 The material advancement may be estimated by the following comparisons :In 1838, there were five colonies in this group. British Columbia and Vancouver Island have since been added. The population was, in the year stated, 1,282,000; it is now 3,294,561; being an increase of 157 per cent.; the aggregate value of the imports and exports was then £9,185,000; it is now £23,712,000, equal to an increase of 158 per cent. Excluding Turk's Islands, the area of which appears not to be known, this group measures 99,090 square miles. The population at present is 1,075,395 persons, the most of whom are colored. The exact numbers in those colonies where the distinction of race has been observed in the enumeration of the inhabitants are 54,650 white, and 967,294 colored. In 1860, the value of the goods imported and exported was as given below: |