be said against a too rapid action being taken by the Bank in lowering the value of money at a time when much sensitiveness on the point of credit still lurked in places, more particularly as regarded banks, and considerations remained in force which made it more than ordinarily desirable that nothing should be done in the way of endangering the strength of the banking reserve of the country; but on the other hand the Bank authorities may have seen their way to strike at the lingering spirit of distrust, and thus, by giving palpable expression to their own view of the healthier condition of things, endeavour to allay any remaining feelings of sensitiveness, and at the same time resume their ordinary banking functions, by placing themselves in accord with the market. The reduction of the Bank rate had little visible effect upon the money market; the absence of any material fall in the outside rates was to be accounted for in a measure by the demand for money at the end of the month; in fact, a brisker demand for money followed for a few days, including therein the requirements of the 4th of the month; however, the favourable character of the following Bank return, showing continued increase of strength in the resources of the central establishment, brought about another turn in the direction of greater ease in the money market. The result of the allotment of £1,000,000 in Treasury Bills at three months date showed that Government could borrow money in the market at 2 per cent. The bankruptcy of Mr. Albert Grant, in London, with liabilities stated at £596,000, has to be recorded here, his General Banking Company having collapsed shortly before. Another small banking failure in the provinces must also be noted, viz., the old established Union Bank of Cornwall, Messrs. Vivian, Grylls and Co., at Helston, established in 1788 and possessing authority to issue to the extent of £17,003, which issue, however, had dwindled down to about one-fourth that amount in actual circulation at the time of the stoppage; the liabilities are small, about £100,000, and the assets are said to amount to three-fourths of that sum. We gather from the replies of the Chancellor of the Exchequer, to questions put to him in the House respecting banking legislation in the present Session, that the Government do not intend to proceed much further than, by fresh enactments or amending existing laws, to enable banks to avail themselves of a limited degree of liability on their shares. It is difficulty to see what more Government can wisely attempt to do. The question of liability is essentially a shareholder's question, and as to Government audit that is out of the question. The Right Hon. W. E. Forster, speaking on these points at the meeting of the Bradford Old Bank, noticed in another part of this number, remarked that, "No law can save people from the consequences of their own folly, or their own neglect of their own affairs." But whilst there seems to be a disposition on the part of Government to afford facilities in this direction, we learn at the same time that difficulties lie in the way of the accord of banks amongst themselves; meetings of the Committee of the Joint Stock Banks in London have recently been held, at which these subjects have been discussed, and the result has been to bring out points of ... divergence. Doubtless the authorities of the banks have to regard matters from the depositor's point of view as well as the shareholder's. The settlement on the Stock Exchange at the end of last month, was effected without any hitch and at very easy rates, so far as the carrying over transactions was concerned, and circumstances combined to give a favourable aspect to prices afterwards, the fall in the rates for money being the chief point in consideration. Government funds, colonial bonds, and English railways marked some advance in prices, whilst foreign descriptions were subject to fluctuation, and in some cases marked a fall, Egyptian being adversely affected by rumours of the reduction of interest on some descriptions of these bonds being contemplated. On the other hand, Turkish securities began to improve at this time, upon rumours of some scheme afloat for setting them going again. Gas shares continued to improve steadily, but the market for bank shares was still a drooping one. It was noted, however, that in the Glasgow Stock Market a marked recovery in the prices of these securities had set in. In the middle of the month the settlement again passed off very quietly and at easy rates, notwithstanding the news from the Cape of the sad disaster to our forces in their encounter with the Zulus, which for the moment had caused some little depression on the Stock Exchange, a slight fall in consols and a heavier one in Natal debentures having occurred upon this announcement. American railroad securities show a considerable improvement, Gas shares continue in the course of recovery, and the prices of bank shares show more strength, some of them have rallied perceptibly. The Bank return continues to move in the same direction as it has of late taken, a direction which indicates a gradual return of confidence amongst monetary classes by the accession to the Bank's resources which has accrued. It is believed, nevertheless, that bankers retain larger reserves than usual, a measure of wise precaution, which cannot be too highly commended. The present outlook points in the direction of a lower rate for money. NOTICES TO CORRESPONDENTS. Orders and Subscriptions should be sent to the Proprietors, Waterlow &, Sons Limited, 25, Great Winchester Street, London. The Editor invites Bank Managers and other correspondents to send him their Bank Reports and other communications early in the month, in order to ensure insertion the following month; he does not undertake to publish unauthenticated communications, or to return such as are rejected. For the corresponding statement, from October, 1877, to October, 1878, see page 358 of "The Banking Almanac" for 1879. 14,672,591 24,042,582 7,431,561 28,810,943 272,812 31,299,523 10,338,734 10,636,204 11,468,753 20 26,895,932 243,491 30,085,779 12,310,802 27 27,060,490 220,038 30,392,281 Dec. 4- 25,869,466 241,790 29,707,008 11 26,369,995 244,713 31,099,099 18 26,690,595 269,608 32,088,613 25 27,872,395 258,770 33,708,274 12,743,428 11,958,971 9,746,851 9,186,873 9,342,285 1879 For the corresponding statement, from October, 1877, to October, 1878, see page 359 of "The Banking Almanac" for 1879. The Bank rate was raised to 5 per cent. on Monday, August 12th; and to 6 per cent. on Monday, October |