Excerpt from On the Frequent Autumnal Pressure in the Money Market, and the Action of the Bank of England

By other papers or their correspondents the absorption of money Was attributed variously to the large American purchases on credit, to extensive speculations in cotton at Liverpool, to the sinking of capital in joint stock enterprises, or to the Fenian conspiracy.

The remarks of the Economist, though written during the pro gress of the pressure, appear to be substantially correct. In the issue of 14th October, the editor said, The present rise in the value of money is owing to the simultaneous occurrence of three causes. There is a sort of tide in the cash transactions of the country which periodically empties and periodically fills the Bank till. At the close of every quarter there is a strong outgoing current. The non-banking classes then get their money. Salaries are paid, wages are paid, small dividends are paid, each of these transactions is very minute, but their aggregate mass is very large. 5 it 9 Little people are paid in actual cash, they take so much from the Bank till. 9' 9 Speaking generally, the middle of each quarter is marked by an incoming current towards the Bank, and the close of every quarter by an outgoing current from the Bank.

The periodical quarterly out¿ow of money from the Bank was then, according to the Economist, the chief cause of the pressure, aggravated, as it goes on to explain in this particular case, by two minor causes, the demand for coin for Ireland, and the creation of bills by large cotton speculations. A few weeks later the Economist pointed out an unusual increase of the export and import trade of the country, revealed by the Board of Trade returns, as the chief aggravating cause.

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