But by far the most important and beneficial effect of Californian gold hitherto experienced has been in the extension of credit and increase of accommodation at home. This effect is obvious and important. The notes of the Bank of England in circulation, have risen in the last year to L.20,000,000 or L.21,000,000 from L.16,500,000, which they had fallen to during the panic. The circulation of every other bank has, as a matter of course, been proportionably augmented. What produced this great increase in the circulating medium? The influx of bullion into the country, which augmented the treasure in the Bank of England to above L.16,000,000. There is the secret of the whole thing; of the activity in the manufacturing districts, and the general extension of credit and rise of prices through the districts. It is Californian gold which has done the whole; for it has at once filled to overflowing the vaults of the Bank of England, and relieved its officers, and those of all similar establishments, from all dread of a drain of specie setting in. Gold was abundant; the banks no longer feared a collapse: therefore notes were abundant also; the terrors of the holders of them were abated. Prices rose, and credit was extended. We are far from thinking that it is a wise and judicious system to make credit of every kind entirely dependent on the amount of metallic treasure in the vaults of the Bank of England: we only say, having done this by Sir R. Peel's monetary system, we have to thank California for having put at least _a temporary stop to the evils with which it was pregnant_. It is not surprising that the addition of even so small a sum to the metallic circulation of the commercial world should produce, in a single year, so great a result. The discovery of two millions of bank-notes, in an old chest of the Bank of England, stopped the panic of December 1825; the mere issuing of Lord J. Russell's letter, announcing the temporary repeal of the Bank Charter Act, put a period to the far severer crash of 1847. The addition of five millions to the metallic treasure of this country is quite sufficient to vivify every branch of industry, for it will probably put fifty millions, in bank-notes and private bills, into circulation.