Hawke's Bay Times. Nullius addictus jurare in verba magistri. SATURDAY, DECEMBER 16, 1871.

Hawke's Bay Times, Volume 18, Issue 1199, 16 December 1871, Page 2

Hawke's Bay Times. Nullius addictus jurare in verba magistri. SATURDAY, DECEMBER 16, 1871.

Some indication of Bismarck's intention to put a serious pressure upon the finance of England was felt in the London money market as early as September last. It was computed that at that date there were no less than five millions of English sovereigns already in the Ti-easury of Berlin, besides about £15,000,000 worth of Napoleons and other gold coins, making together about twenty millions sterling of gold coin. At the same time there was in the coffers of the Bauk of England only eleven million*, being bat one million in expess of the legal minimum. The direct consequence of this state of affairs was >he raising of the rate of discount at first from 2 to 3 per cent., which was done on the 21st September, and one week afterwards a further advance pf from 3 to 4 per cent. Considering that for the preceding two months the rate had remained steady at 2 per cent-., the doubling of that rate within one week was indicative of something like a panic; nor was it without reason, for during that week no less ft sum than two and a half millions of bullion had been withdrawn from the Of gourse this drain on the gold of Qrea L

Britain was due mainly to the taking up of a portion of 'he French loan, but financialists did not at that time conclude that the fault lay altogther with Bismarck. It was said— P We are sending our gold to Germany on French account because it pays us better to take part in the payment of .the indemnity than to keep our money idle at home." It was at the same time felt that it was quite within the power of Bismarck to make the pressure become very serious indeed, and some credit was actually given, to him for his forbearance in not enforcing what was evidently in his power. At the end of September the drafts of the Berlin Government were not forced on the London Exchange, and it was hoped that this would continue for a fortnight, when confidence might be restored. Bismarck has, however, an immense engine of power in his hands, and if recent accounts are to be relied on, is resolved to make use of it to the utmost.