back by another, and on the 29th our Bank reduced the rate of discount from 6 to 5 per cent. Consols, throughout these fluctuations of discount, maintained an even price-between 93 and 934.

con

These oscillations in the value of money, accompanied by such steadiness in the price of the public funds, was held to indicate that the trade and commerce of the country were legitimate, and conducted, speaking generally, on a sound basis of capital and prudence. One remarkable exception from this rule is to be found in the gigantic failures in the leather trade. The firms of Streatfeild and Co., Laurence, Mortimore and Co., held the very highest position in the rank of merchantseven the Bank of England had no suspicion of the rottenness of their credit. Their business transactions were immense; they were nected with numerous houses in town and country; and their drafts on their correspondents were eagerly competed for by all the discount establishments. Suddenly, all this credit collapsed, and with the great houses fell all their adjuncts. Streatfeild and Co. stopped with 750,000, of indebtedness; Laurence, Mortimore and Co. with upwards of 300,000l.; J. H. Smith and Co. 168,000l.; Smith and Patient, 207,000; T. H. Mortimore, 95,000l.; Gibson and Co., 150,000l. The large failures in the leather trade amounted in all to upwards of two millions and ahalf. Besides these, the principal failures were those of Messrs. Davies and Co., bankers, of Shoreditch, 140,000l.; and several contractors, whose stoppage was brought about partly by the long protracted strike of the builders last year, and partly by the great

rise in the price of all building materials.

THE WEATHER OF THE QUARTER.-The weather of the Autumn Quarter was unusually cold, and from the 8th December, intense. About the middle of October the temperature of the air fell below the average, and throughout November was not less than 3o in defect. In the beginning of December, on the other hand, there was a considerable access of warmth, the air being on the 5th and 6th 9° above the average. This made the intense cold of the latter part of the month more severely felt. From the 18th to the 23rd the cold was from 7° to 10° below. Christmas Eve and Christmas Day were accompanied by the most intense cold experienced for very many years. The 24th was no less than 15°, and the 25th 16° below the average; and again on the 29th 14o in defect.

The cold of this memorable Christmas Day was not, however, equally intense in all parts:-the temperature, indeed, varied in a very remarkable manner. The temperature of the south coast was between 17° and 20"; gradually decreased to 6o, 7o, and 8°, in the latitude of 51°, and to 0° (zero) in lat. 51° 50′; was between 0o and 3 between the parallels of 52° and 54°; at Nottingham, the lowest reading was noted as 8°; and above the parallel 54°, the readings gradually increased from

0° to 12o.

The following were the readings marked at stations in the neighbourhood of London ;-Lewisham, 7° 5; Royal Observatory, 8°; Regent's Park, 10° 9; St. John's Wood, 11°; Leyton, 1o 3. At Brighton, 3"; Oxford, 1°; Great Berkhampstead, 5°; Royston, 1o 1 ;

Gloucester, 1o; Lampeter, 5° 4; Norwich, 1o; Derby, 2o; Holkham, 0° 0; Nottingham -8°; Manchester, -3°; Liverpool, 16°; Wakefield, -2o; York, -4°; Bywell, 3o 5. The following places escaped the bitterness of the frost, their readings being, Guernsey, 30°; Helstone, 32°; Truro, 26°; Ventnor, 24o; Isle of Man, 34°; from Scarborough, 16°, along the east coast to Edinburgh, the general temperature was 16o.

The general temperature of the

sea was 44°.

The condition of the atmosphere in Ireland seems to have been the exact reverse of that of England. It began to thaw on Christmas Day, and the thermometer, on subsequent days, averaged 36° to 38° at night, and 40° in the day-time.

The mean temperature of the whole month of December was, nevertheless, higher than that of December. 1846.

The atmospheric pressure in December was less than that in any December for 20 years.

The fall of rain, so excessive in all the other Quarters, was slightly in defect in this. In the whole year the rain-fall amounted to 32 inches. This is less than fell in 1821, 1824, and 1852; (34·5, 36-3, 34-2), but greater than in any other year since 1815. In particular localities the rain fall was amazing. 54 inches fell at Lampeter; 50-7 in. at Truro; 48 in. at Guernsey; 50 in. at Barnstable; 504 in. at Stonyhurst; 49.7 in. at Broughton in Furness; at the Royal Observatory, 32 inches.

Notwithstanding this prodigious excess of cold and wet, the population appears to have been not only more prosperous but more healthy than usual; the deaths of the year were below the average;

the marriages increased; births slightly increased: 683,430 children were registered in the year, or 3418 to every 100 persons. Taking one day with another throughout the year, 1867 children were born daily. 422,500 persons, or 2:113 per 100 died within the year. The natural increase of the population of England and Wales in 1860 was, therefore, 260,930 souls; or 713 daily. If the natural increase of Scotland and Ireland is in the same proportion, the daily additions to the popula tion of the British Islands will be 1069.

The price of provisions in the Autumn Quarter was as follows:wheat, 56s. 9d. per qr., or 31 per cent. higher than in the autumn of 1859; beef about d. per lb. lower; potatoes, owing to a partial failure in the crop, rose to a price which must have proved very distressing to the working classes. In the autumn of 1858 they were at 87s. 6d. per ton; in 1859, 102s. 6d.; and in 1860, 122s. 6d.

Notwithstanding this serious increase in the price of provisions, such was the activity of our manufactories and commerce, that not only did the marriages increase and the deaths decrease (two accidents of life which seem to act in correspondence to material prosperity), but pauperism steadily decreased. In the last quarter of 1858, the number of paupers receiving relief was 826,655; in 1859, 793,391; and in 1860, 788,838.

The combined effect of material prosperity and the application of sanitary science has been shown in a remarkable manner. The decline in the rate of mortality in the town and in the country districts has been singularly unequal;

CORRESPONDENCE RESPECTING THE
NEGOTIATION OF A TREATY OF
COMMERCE WITH FRANCE.
No. 1. Earl Cowley to Lord J. Rus-
sell.-(Received December 24.)

Paris, December 23, 1859.

My Lord,-Your Lordship has no doubt been informed that confidential communications have been going on for some weeks past between Mr. Cobden, on the one hand, and M. Rouher, the Minister of Commerce, on the other, having for their object, with regard to exports from Great Britain, the suppression of the prohibitive system of commerce which prevails in France in respect to certain articles of British production and manufacture, as also a modification of the Tariff in regard to others; and with regard to exports from France, the admission into the United Kingdom of various articles of French manufacture free of duty, and the reduction of other duties now levied on French productions.

Count Walewski having requested to see me, I waited upon his Excellency yesterday, when he

informed me that he had had a long conversation with Mr. Cobden, which might lead to very important results, if, as he had reason to believe, Mr. Cobden had the countenance of Her Majesty's Government. I should see, however, from the sequel of what he had to say to me, that before going any further, it was absolutely necessary for him to know accurately the views and intentions of Her Majesty's Government. The matter might shortly be stated thus.

Mr. Cobden was of opinion that Her Majesty's Government might not be indisposed to conclude a Commercial Treaty with the French Government on the following bases :

The prohibition in France of all British productions to be abolished from the 1st of July, 1861, and to be replaced by an ad valorem duty not to exceed 30 per cent. Count Walewski was at pains to explain that many articles would be admitted at a less duty than 30 per cent., for which a specifying tariff would be framed. He said further, that

the French Government were bound by a public declaration made two years ago to continue the present prohibitive system until the 1st July, 1861.

British coal imported overland to be admitted at the same rate of duties as Belgian coal. Seaborne coals to be subjected to the present duty for five years, when they would be assimilated to coal introduced overland.

The duty on iron to be fixed at a maximum of 30 per cent. ad valorem.

The duties on linen and articles of that nature to be reduced from 30 to 15 per cent. ad valorem.

On the other hand, the British Government to engage to admit all articles of Parisian manufacture, and silks of all kinds, free of duty; to reduce considerably the duties on French wines, and to admit French brandies at a duty which should not exceed the excise duty levied on spirits distilled in Great Britain.

Such, said Count Walewski, was in a few words the basis of an arrangement which had been laid before the Emperor, who was disposed to submit it to the deliberations of the Council of Ministers. But before doing so, it became necessary that His Majesty should know with more certainty the views of Her Majesty's Government, since it would be useless to discuss a question which, after all, might not be entertained in England. Emperor, therefore, had desired Count Walewski to see me, and to request me to write, confidentially, to your Lordship upon the subject.

The

In the course of the conversation, Count Walewski said that neither the Emperor nor himself had

overlooked the advantages which might result to the two countries by increased commercial facilities, as nothing would tend more to allay the irritation which unfortunately prevailed on both sides the Channel.

I told Count Walewski that I would lose no time in writing to your Lordship on this important matter; that I believed that Mr. Cobden, although acting entirely in a private capacity, had reasons for knowing generally that Her Majesty's Government would not be indisposed to entertain the question of a Commercial Treaty, which should be reciprocally advantageous to both countries; but that I was not aware how far the question had been discussed.

I cannot doubt, from various conversations with which I have been honoured by the Emperor, that His Majesty is sincerely bent on accomplishing this commercial reform.

I have only to add that if Her Majesty's Government decide upon pursuing the negotiation, it cannot be entrusted to better hands than those of Mr. Cobden. The merit of whatever may be effected will rest solely with him, and it is but fair that he should have the satisfaction of putting his name to the final arrangement. I could feel no jealousy

on such an occasion.

I have, &c.
(Signed) COWLEY.

No. 2. Lord J. Russell to Earl
Cowley and Mr. Cobden.

Foreign Office, January 17, 1860. My Lord and Sir,-Having received from Earl Cowley an intimation that in an interview which he had had with Count Walewski