January 27, 1866. N. 1170.

The Memorial of some Liverpool Merchants on the Currency.

They ascribe „the excessive and usurious rate of interest“ dem Act von 1844 u. Bank of England monopoly. Both to be abolished. Jede Person u. Compagny soll have power to issue notes, so viel they please, upon the deposit of stock or Exchequerbill, and so obtain a sufficiency of currency for the discount of bills and the commercial needs of the country.

Whether the currency be issued by 1 person or many, whether separated or combined with banking, it is equally a part of the credit system of the country; and that credit system can only be supported in one way. The credit of A means that A will pay gold or silver; it is a believed promise to hand over such and such sums in the precious metals if required. To secure the performance of such promises, a large stock of the precious metals must be kept.

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The only known mode of keeping such a stock is by raising the rate of interest.

Das system, verlangt von den Liverpool memorialists, war das in New York before the civil war. Every bank could there issue notes, but every bank was obliged to deposit „security“; but that system did not absolve the banks from the necessity of keeping a stock of gold and silver, and it did not produce a low rate of interest. The normal rate was often very high – higher than the present rate complained of. The banks, as soon as they saw their reserve of bullion getting low, raised the rate of interest, and kept that rate high till the stock was replenished.

If the banks keep the rate of interest too low for a time, they make it too high afterwards.

As long as a nation keeps its store of bullion at a minimum, the money market will be most delicate. And as long as bankers, one or many, are guided by their own interest, it will be kept at that minimum.

Die Liverpooler beziehn sich auf den present lower interest in France. Aber the banking power of the B. o. France is infinitely more authoritative than that of the B. o. E., and its „monopoly“ of the currency is absolute.

Cattle Plague. Government Relief.

Government in Lancashire lieh Stӓdten, damit sie Arbeiter beschӓftigten. The Lancashire loan was not a compensation to capitalists. It was a loan for utilising men … Result: good drainage and good pavement in some great northern towns.

Schlӓgt Eine einzige cattle insurance Compagny für ganz England vor; nicht to insure (to prevent fraud) more than 2 3 of the value.

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The Recent Dividends of Joint Stock Banks.

1865 rate of interest hoch, aber nicht so hoch als 1864.

Averages of
Bk. of England minimum rates of discount. 1864 1865.
7.31 4.74.

The Average Rate of Bank Dividends.

Last 4 dividends, Rate % per annum.

1864 1865.
June 30. Dec. 31 June 30. Dec. 31
Alliance 10 nil 5 5.
Bank of London 20 20 20 20
City Bank 20 12 15 12
Imperial 8 10 8 8
Joint Stock 32 1 2 50 18 22
Metropolitan and Provincial 7 1 2 nil nil 5
Union 20 20 30 20
London et Westminster 28 32 26 34.

Half Year ended 31st Dec. 1865

Capital. Dividends and bonus Reserve
Created Paid up. Rate p. annum from calls from Profits
£. £. Per Cent. £. £.
Alliance (limited) 4,000,000 985,785 5 3,014,215 71,840
Bank of London 800,000 400,000 20 400,000 304,411
City Bank 1,000,000 500,000 12 500,000 144,710
Imperial (limit.) 2,250,000 448,970 8 1,801,030 58,560
Joint Stock 3,600,000 1,080,000 22 2,520,000 315,263
Metropolitan and Provincial (lim.) 2,000,000 337,420 5 1,662,580 14,904
Union 4,000,000 1,200,000 20 2,800,000 350,660
London and Westminster 5,000,000 1,000,000 34 4,000,000 363,204

(verte)

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Half Year ended Dec. 31, 1865

Liabilities to the Public Assets
Deposits and Acceptances Cash Government and other securities Bills discounted etc
£. £. £. £.
Alliance. 2,504,168 435,930 147,913 3,007,456
Bank of London 4,335,877 820,497 302,167 3,985,036
City Bank 4,859,720 579,448 329,902 4,655,443
Imperial 1,543,281 188,642 59,619 1,836,741
Joint Stock 18,215,358 867,191 1,059,225 17,894,010
Metropolitan et Provincial 860,069 125,592 90,259 984,592
Union 17,794,263 2,816,994 1,665,725 15,085,836
London and Westminster 20,779,301 1,677,841 2,489,412 16,600,522

Half Year ended 31 Dec. 1865

Assets
Liabilities to Public Cash and Securities Calls to be made Total means.
£ £ £ £
Alliance (lim.) 2,504,168 3,591,299 3,014,215 6,605,514
Bank of London 4,335,877 5,107,700 400,000 5,507,700
City Bank 4,859,720 5,564,793 500,000 6,064,793
Imperial (limit.) 1,543,281 2,085,002 1,801,030 3,886,032
Joint Stock 18,215,358 19,820,426 2,520,000 22,340,426
Metropolitan and Provincial (lim.) 860,069 1,200,443 1,662,580 2,863,023
Union 17,794,263 19,568,555 2,800,000 22,368,555
London and Westminster 20,779,301 20,767,775 4,000,000 24,767,775
70,892,037 77,705,293 16,697,825 94,403,818.
  • 1866 „The Economist“ (Jahrgang 1866) vol. XXIV.
  • The „Money Market Review“. Jahrgang 1866.