9,000,000 21,384,001 6,893,910 8,167.892 22,023,478 Nov. 8... 50,865,491 4,967,781 46 15,.. 50,488,921 4,787,182 9,046,931 6,785,521 8,731,799 44 22,.. 44,236,000 4,429,700 9,058,381 20,219,421 5,375,581 8,889,421 The accounts from England and France have been of a more favorable tenure, inasmuch as the high rate of money produced its natural effect of moderating business transactions, causing a fall of prices and promoting accumulations of money with the Banks. The general causes that had produced the distress were however still in operation, and there was no surety that a slight relaxation might not renew the drain. The great fall in prices, particularly cotton, had thrown a heavy loss upon the Indian shippers of cotton to England, and fears were naturally entertained that those losses might react in London. The Bank therefore, notwithstanding the impure condition of the accounts, did not see fit to lower the rate of interest until the 10th November, when it reduced it to 8 per cent at Bank, although less outside. The institution had decreased its private securities, and also sold Government securities to strengthen itself. The public mind was not entirely settled. On the contrary, most persons dreaded that fresh failures might be announced before long, in consequence of the very large losses that had been encountered in the produce markets. The effect of the failures at Rio by reaction from the North German towns was looked for, and it was feared that the next news from India would be of an unsatisfactory nature. Apart, however, from the uncertainty necessarily existing with regard to the fate of houses whose position is known to be critical, the amelioration in the condition of the money market was daily becoming more marked. Looking at the mass of produce stored in the various warehouses in the kingdom, and having in view the large harvest returns throughout Europe and in America, it is evident that the supplies of all descriptions of food will continue large, and in excess of the actual wants of the population. Speculation is not, under these circumstances, likely to be immediately resumed, as it is in consequence of the plentiful harvests of this year that that previously existing has broken down. With low-priced food, a large amount of money, and notably the savings of the trading and working classes, will soon be returned in greater sums than at present to the capital for investment. In all probability, the movement by which the discount rate will soon be reduced to a lower figure has already commenced; and there is every reason to conclude that, purged by late events, trade will be re-established in a Bounder and healthier condition than for a long time past. The Bank returns were as follows: THE BANK OF ENGLAND RETURNS. Date. 16,... Circulation. Public Private Dec. 2,... 21,685,732 7,234,894 12,924,545 31,980,889 13,048,475 8 per ct. 9,... 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 14,362,605 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 31,726,575 11,708,597 7 46 23,. Jan. 6, '64 13,... 66 20,... 21,445,793 5,689,074 13,879,877 31,445,860 12,974,109 8 27,... 20,875,825 6,337,246 13,406,627 31,017,449 13,022,220 8 Feb. 3,... 10.... 68 7 877co co co to to to c6677 21,162,626 6,748,867 13,372.981 31,436,334 13,303,243 20,708,113 7,254,682 12.882,226 36,923,317 13.472,271 64 17,... 20,696,172 7,079,789 13,306,156 31,078,328 13,58%,635 7 24,... 20,207,871 8,153,601 12,426,673 30,504,827 13,819,412 6 March 2,... 20,840,374 7,893,633 13,541,278 31,980,446 14,034,222 16 9.... 20,563,325 8,863,364 12,434,975 31,769,311 13,884,389 16,... 20,333,112 8,570,711 13,105,800 31,929,164 13,946,943 20,366,705 9,841,323 12,480,154 32,112,543 14.499,201 20,908,644 10,280,458 12,658,986 33.472,484 14.163.519 21.528,914 9,818,880 13,348,299 34,223,509 13,616,762 12.... 21,785,597 5,929,922 13,586,029 31,385,305 13.080,300 20,... 21,672,783 5,787,329 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 23,... 30.... April 6,... 46 66 8,. 15,. 66 6 6 6 6 11,... 21,478,987 7,299,434 12,901,160 32,239,210 12,705,251 9 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 31,297,181 13,713,943 7 June 1.... 21,246,840 8,286,719 12,493,776 31,329,121 14,052,761 7 20,766,405 8,748,510 11,966,204 30,711,740 14,043,129 7 20,597,557 8,512,311 12,790,361 30.884,192 14,304,205 6 20,623,207 9,287,594 13,051,661 31,948,856 14.319,961 6 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 18,930,509 22,161,001 4,683,803 15,082,746 31,657,509 18,701,112 6 22,302,688 4,462,490 13,408,675 30,471,085 13,171,561 6 22,158,547 4,961,046 13,719,621 31,316,657 12,996,635 8 22,489,710 5,155,794 13,519,626 31,909,793 12,877,483 8 21.881,314 4,963,222 14,419,766 32.202,646 12,609,325 8 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 31,958,341 12,980,033 8 Sept. 7,... 21,867,124 6,022,373 12,904,085 31,202,405 12.970,447 9 14,... 20,960.414 6,702,054 12,723,620 31,381,674 12,905,511 9 The considerable improvement in the returns of the Bank of France induced that institution to lower its rate of interest in the first week of November. The bullion had risen 20,000,000 francs in three weeks. The return is as follows: The heavy failures which had taken place in Rio had caused great alarm in Paris, both from their direct influence on French commerce, and from the effect they might be expected to produce in London. Several of the leading bankers of Paris are stated to have lost more or less heavily by this. The manager of the Dutch Credit Mobilier at Amsterdam had absconded with a large amount of the funds of that establishment. The general state of affairs it was thought did not justify the Banks in so speedy a reduction of the rate of interest. The Bank of France has increased its commission for advances on deposits of gold and silver in ingots from 1 to 3 per cent, in order to check certain operations of bullion dealers. These persons, it appears, finding that they could export gold and silver coin at a profit of more than 1 per cent, were in the habit of changing the notes which the Bank gave them for their deposits, and sending the coin abroad. The measure of the Bank has had the good effect of diminishing the demand on its coin, and has at the same time reduced the premium on silver. The financial circles were much occupied with the negotiations which have taken place between the Italian Government and the Italian Credit Mobilier, for the sale of the crown lands, and through the latter establishment with the Credit Mobilier of Paris. Different sums have been named as the price of the sale, but nothing can be definitively concluded without the sanction of the Italian Parlia ment. Negotiations with Messrs ROTHSCHILD for the sale of the State railways are also understood to have been renewed. FINANCES OF THE STATES IN REBELLION. The finances of the Confederate States are sadly out of joint. Having tried to spend money and keep it too, they have naturally enough failed. To create debt and call it capital may succeed for a time, but it requires a large mixture of faith to enable such a debt to circulate. When that faith is gone, the promise to pay must go with it. The laws passed at the last Confederate Congress failed to work out the cure expected, just for the reason that they took away the last ray of hope that the government issues would ever be paid: they destroyed the faith necessary to float their paper money. It was expected by Mr. MEMMENGER that by driving out the old treasury note to make room for a new issue, limited in amount, that prices of commodities would be brought down and the cost of the war diminished. But this repudiation worked, naturally enough, just the opposite result. "Those who had taken the old notes," says Mr. TRENHOLM, the present Secretary of the Treasury, "relying on the good faith of the government, on finding them deprived of one-third of their nominal value, became alarmed, and received the new notes under a strong apprehension of a repetition of the measure." The reduction of value here spoken of consisted in compelling the holders, under pain of forfeiture, to exchange notes, originally and on their face convertible into six per cent bonds, for bonds bearing interest at only four per cent. This repudiation by the government of one-third of its past obligations, besides being a breach of faith, was a confession of insolvency. Mr. TRENHOLM thus states the present condition of the government finances: "The currency demands the immediate and the gravest consideration of Congress. Unless a uniform and stable value can be given to the treasury notes, the effort to carry on the war through their instrumentality must of necessity be abandoned. Acquiescence in its deplorable depreciation is to court the ruin to which it leads. One hundred and thirty-five dollars in currency, the price obtained for one hundred dollars in six per cent bonds, is equal to six dollars only in specie; and to sell the bonds at this rate is in reality to dispose of them at ninety-four per cent discount; or, in other words, to give a bond for one hundred dollars in consideration of the loan of six dollars. "There is not a man of property in the country who would not prefer any fair measure of taxation rather than procure a temporary and treacherous prosperity by the sale of mortgages on his estate at this ruinous rate. "The depreciation of the currency, proceeding from redundancy, and the want of confidence in its ultimate redemption, can only be corrected by measures that shall both diminish its volume and sustain the public confidence. The measures adopted by Congress to reduce the currency did not combine these essential elements of success. Those who had taken the old notes, relying on the good faith of the government on finding them suddenly deprived of one-third of their nominal value, became alarmed, and received the new notes under strong apprehensions of a repetition of the measure. At the time, too, that the currency act provided for a circulation exeeeding four hundred millions of dollars, it circumscribed and reduced the demand for the notes by making the four per cent bonds receivable in the payment of taxes. By the 1st of August $170,000,000 of the new notes had already been issued, and less than $10,000,000 sufficed for the payment of the taxes collected at that date. Depreciation commenced at once, and proceeded at so rapid a rate that by the first day of October gold was selling at twenty-five dollars for one. The necessity of providing a speedy and efficient remedy for this condition of things is obvious. The bonds have to be sold for this currency; the taxes must be collected in it, and hence all the means of the government for the purchase of supplies will consist of this medium. Admitting that the amount which may be raised from these sources is nominally equal to the estimated expenditures, there is yet no security against such a further decline in the value of the notes as will disappoint present calculations and add enormously to the accumulation of the public debt. The time, therefore, seems to have arrived when Congress should take measures to restore and sustain the currency, or make provision for its honorable redemption, and resort to the use of specie and bank notes. The adop tion of the last alternative, it is feared, would produce great embarrassment in the community, and the impossibility of obtaining an adequate supply of specie and bank notes for the wants of the government would create the necessity for a system of universal impressments, followed by incalculable suffering and distress." Mr. TRENHOLM does not despair, however. In the first place his expedients with regard to the currency are thrce. First, he proposes that the Government faith be pledged that the notes shall ever remain exempt from taxation. Second, that Congress shall also pledge the faith of the Government, not to exceed the issue of notes already authorized, ramely, $400,000.000; and, Third, that it should pass an act appropriating twenty per cent of the taxes each year, until the return of peace, to the reduction of the currency until its amount is brought down to $150,000,000; and, further, that a tax in kind be continued after the war, and a certain fixed proportion of it be annually applied to the redemption of the then outstanding notes. This scheme, it will be seen, implies faith in the government and faith in the success of the rebellion; but, as we stated above, government faith has already been broken, and the necessities to which it yielded being quite as likely to happen again, the mere pledge of Congress is of no account. The old issue of notes might have had a little life infused into it by some such acts as these, but it will take a stronger body than a Confederate Congress to build up the new. The nature and extent of the Treasurer's expectations and wants may be gathered from his report. For instance, he states the resources as follows:The tax in kind will produce, he says-wheat, twenty-five million bushels; Indian corn, two hundred million bushels; and cotton, two million bales. It this wheat, corn and cotton be sold, the receipts in cash from this source are estimated as follows: Wheat, two million five hundred thousand bushels, at four dollars... $10,000,000 40,000,000 Cotton, two hundred thousand bales, at two hundred dollars per bale. 40,000,000 Total....... $90,000,000 To this he adds the following suggestions: "I propose an additional duty of five cents per pound on the exportation of cotton and tobacco, and the duplication of the duties on imports; payments to be made in coupons of the five hundred million loan, sterling exchange and specie, as now provided by law. The price of cotton in Liverpool being about sixty cents per pound, the deduction of five cents for the tax would |