January 20, 1866. N. 1,169.

The Effect of the 8%.

No bullion gone out; but none yet attracted from abroad. We have a great though suspended drain to India and Egypt for cotton hanging over the market. Dann hovering about Ejyptian Railway loan etc.

Market Prices of Investments in the Year 1865.

Insurance Companies u. Miscellaneous (embracing, die latter, the majority of the Limited Liability Companies recently created).

Insurance Cos. Meist profitable undertakings; singular steadiness of the market prices of their shares.

Von 97 descriptions of stocks and shares quoted in the insurance companies’ list of the Investor Manual (leztres Beiblatt zum „Economist“) nur 16 at a discount, dieser trifling u. „belongs chiefly to the shares of the new marine insurance cos“.


In den meisten lӓnger etablirten Dingern dieser Art (insurance) Prӓmiums der shares im market.

Miscellaneous: In dieser Liste 519 different descriptions of stocks and shares quoted of which 286 mit limited liability, 233 aber unlimited.

Die 233 descriptions of unlimited shares comprise canal, gas, steam marine, dock, water, and other cos’, darunter nur a few cos’ of recent creation. 63 von diesen 233 quoted at the close of 1865 at a discount, der remainder meist at a premium.

Von den 286 denominations of limited liability shares in the miscellaneous list, 80 were quoted at a premium, 94 at a discount, 112 without any market quotation, which in effect may probably indicate that they were unsaleable in the market at any price. Also result at the end of 1865:

Marketable and profitable 80 or 28% on the whole
Marketable at a loss 94 or 33%
Unsaleable, involving great loss 112 39
286 100.

So 72% dieser limited liability cos’ shares entailed loss of principal upon the original subscribers at par, or their representatives, the succeeding proprietors. Aber dennoch nicht so large proportion »valueless or even unsound«! By no means, dear me!

»there is not, so far as we can judge from dividends and market prices, anything so rotten in our new mode of speculation as to preclude its resuscitation at a more propitious moment.« Hurrah!

Insurance is as unsafe as gambling; or, more correctly, it is gambling, if the number of risks to be insured is not enough to ensure an average result … Chance is eliminated from insurance by the number of ventures (Die Grösse der Area, worüber ausgedehnt:)


Un. States Commerce mit France (1865).

In den ersten 11 Months exports from U. St.: 34,492,632f.
Import into U. St.: 84,456,666.

Assuming that the month of December averaged the 11 months preceding, 37,376,018f. import to 91,494,749f. export. So die U. St. indebted to France for 54,127,731f. worth of goods. Davon abzuziehn 5,793,000f. of gold coin and bullion u. 169,800f. of silver received in the 11 months; also, 5,577,390f. of the payments of silver which French silversmiths call regrets. Rechnet man proportionell ab so viel für December, so bleibt indebtness der U. St. to France von about 44 Mill. fcs od. 1,760,000l. St. Nicht viel. It only exceeds by a little more than 1 Mill. l. St. what was due at the end of 1864. Jedoch an important portion of the trade between France and the U. St. carried on via England, and figures in official returns as done with that country.

  • 1866 „The Economist“ (Jahrgang 1866) vol. XXIV.
  • The „Money Market Review“. Jahrgang 1866.