4 FEBRUARY 1860, Page 2

The rise of discount in the Bank of England, has

had a cu- rious, and apparently, contradictory double effect. It has satis- fied public expectation, and caused something like a minor panic. The causes are well understood. The chief incentive to the large exports of bullion, which within the month have risen to an enormous amount, is the investment in Indian securities, and the transmission of bullion to India, gold having been sent as well as silver, in unalloyed bars of fifty pounds each. The raising of discount, from 3 to 4 per cent, was fully anticipated. It is sure to restore equilibrium, though the expectation of a higher rise for a time, has scarcely passed away. One cause of the jar given to the Money Market, was the operation of the rule, which has not yet been long enough in operation for the public to have become accustomed to it, not to 're-discount paper sent in by the great discount houses. Hence, the rate of the Market, has risen above the Bank rate ; but remittances are ex- pected from America and from Australia ; commerce is in a healthy state ; and, in the very midst of the excitements, the City feels a perfect confidence in the future.