The Bank has again raised its rate of discount—from 3
to 4 per cent.—having lost within the last week near two millions and a half of bullion, and more than six millions sterling since the Reserve was at its highest point on the 26th July. The reason for this sudden and enormous drain no doubt is the payment of the French indemnity to Germany, of which there is every reason to suspect that the German authorities, instead of putting the whole out on loan, are locking up a great portion in the mili- tary chest, and so withdrawing gold from circulation. The effect of the further rise in the Bank rate has not been, however, further derangement ; on the contrary, there was on Thursday and yesterday a considerable recovery in all the secu- rities affected, so much so that they have almost returned to the old rates. We believe that one great cause of the excitement on the Stock Exchange was the sudden calling in by one of the banks, which had had the handling of the German money, of a very large sum,—several millions sterling,—which it had lent on short terms, and the sudden recall of which seriously affected the resources of the Money Market. It is quite pos-
Bible that if the demand of coin for Germany is not yet satisfied, there will be a still further rise in the rats of discount ; but, thanks to sthe ;strong spesitien of the Bank, and apparently Of the country genersilly, whose dinlehtalneas probably much less than the debts due .to it, the istsrin cursed by the first disturbance of the Money Market is airier ly passing away.
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