The City has been very much agitated this week. The
rate of discount is 7 per cent., and many cool observers, including, we see, the Economist, believe that it may rise, and remain for some- time at a higher figure. The theory is, that however great the accommodation offered by notes, cheques, and bills, there must be some gold currency to get on with ; that in times of difficulty the needful proportion rises higher—everybody dread- ing paper—and that the " suck " of gold to Germany for the- new currency is reducing our necessary minimum so low that in order to bring gold extravagant rates meat be fixed for the- hire of money. Should this view prove correct, there will be a ball quarter of an hour in the City, where one or two great trades,. notably the East India, are not in a healthy condition, and it is at all events so far possible that quiet people will do very well to be cautious. The German Treasury has got rather too strong a grip on the money market for anybody to feel safe. If it wins on its vast transactions it is happy, and if it loses it is happy too, for France pays for all.
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