The reduction of discount at the Bank of England is
not only a satisfactory evidence that the state of commerce is easier than it has been, but it also proves that the panic was a needless ex- aggeration. Perhaps we can trace some of its causes. When we are told by an important writer that the rise in Consols does not prove that money is absorbed into the Consol market, because there must be a seller for every buyer, some obvious facts are over- looked. The stock is bought at rising prices, so that of course more money is thrown into the market ; but, independently of that trifling incident, such a course of prices and, purchases proves, not only that the public is buying stock, but that it has again opened its tightly closed purse strings, that money can again be safely raised on stock, and that it is gradually flowing into the veins of commerce. The natural apprehension created by a state of actual war was, we apprehend, greatly aggravated by certain reports. We stated in our second edition of April 23, that Ens- and France had entered into an understanding. Subsequently, in correcting other reports, we stated our belief that the agreement was embodied in a "memorandum," in order to define the nature of the understanding between the two Powers. Last week, re- plying to the City deputation, Lord Derby explicitly confirmed this statement,—in which we believe we have stood alone,—by telling the deputation that a written memorandum had been ex- changed between France and Russia. In the meanwhile, how- ever, a journal of the highest circulation and influence asserted that Russia and France had signed a treaty,—nay not only one but two treaties, "offensive and defensive." We also doubt whether the reports of this kind might not be traced to our own original announcement—guess-work adding at random to the re- served statement which we first put forth. But, undoubtedly, these overstatements were the principal cause why the commer- cial uneasiness was suddenly stimulated into panic,-4 condition which has happily passed away.
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