February 3. 1866. N. 1171.

The Money Market.

Rate immer noch 8%. The demand for silver for the East to pay for cotton is likely to last for a month or so to come. Ordinary credit is sound. (! weiser Mann!) The revelations of the Joint Stock Discount Company and other such cos are disastrous to those concerned, but they have no diffused effect. The public at large never heard of them. There are no signs of collapse in industry, nicht einmal of mitigated or minor collapse wie 1865, viel less of such a collapse as in the spring of 1848 and 1857.

Durch den hohen Zinsfuß (höher als in Frankreich) französisches money wurde attracted to London. There is a very unusual amount of French money in London. This is now invested in short-dated bills becoming due, and renewed or not renewed, according to the rate. So long as the value of the money continues dear, this French money will stay; so soon as it becomes cheap, that money will go from us.

The Credit Mobilier and the Finance Companies.

1865 veranstaltete\verursachte dieser Credit Mobilier die Bank enquête, um die policy der B. o. France umzuwerfen. Dieß Jahr bitterly attacked in Revue des deux mondes von Victor Bonnet. Verdoppelt sein Kapital. (Dazu berufen shareholders 12 February 1866).

„Finance business“ hat nur den special and characteristic part that it cannot be carried on, except mit money, either belonging to the lender, or over which he has a long and sure control. Bekannt in Lombard street, daß Finance Cos in London (dieß jezt gezeigt durch ihre reports) invested money left with them in the bills of railway contractors „secured“ by the deposits on shares in lines of railways either in course of construction, or not yet paying, and often in inferior districts of the country. The contractor commonly cannot get the money when his bill becomes due, except the shares should by good luck be then „saleable“, and, of course, they are not a „security“ till they are saleable. Yet, some Finance and Discount Cos have persevered in lending upon them money which was only left with them for moderate periods, and which at the end of those periods they knew they would have to repay again.

Bubble Cos.

The Master of Rolls recently reported „that many new Cos were started merely for the purpose of being wound up“. … The case of a company quoted in the official list 12of the Stock Exchange, and having, therefore, complied with their rules – the shares with £15 paid, are quoted at £.12 discount: and why? Because it turns out that the scene of its operations positively lies within the Arctic circle. The operations, therefore, can only be carried on during some 90 days in the year, within which very limited period an income sufficient for the whole of the 365 days of the year, cannot, of course, be earned

Combination of Farm Servants in Scotland. Mid-Lothian Protective Society.

Overworked and underpaid. Let the Scotch ploughmen „strike“ for their union wages and terms, there would to-morrow be Irish substitutes.

English Farming.

Grosser Unterschied z. B. in Midland Counties agreements, containing terms and stipulations so one-sided, so onerous and unfair towards the tenant farmers that incredible. Besides regulations as to cropping and farm-management, which place the tenants most completely at the landlord’s mercy, provided that the landlord shall have power to distrain for his rent a year or 9 months in advance! Z. B. where a tenancy commenced on 25. March, when one quarter’s rent due on 24. June, the landlord is empowered by the terms to enforce by distress the whole year’s rent to then following 25. March – 9 months in advance! Diese tenants have little or no capital, kaum any live stock of their own, also obliged to let their grass and aftergrass, or to take in stock to keep, in order to consume the produce of their land. In such cases, the hirers of the grass, or the putters out of the livestock, have no idea that their animals can be seized for payment of the tenants’ rent in advance. Yet in some districts the landlord or his agent relies on the opportunity of distraining the stock of strangers to secure the payment 13 of the tenants’ rent. Wenn Dazu reservation u. preservation of game, the tenant farmers in a terrestrial purgatory. Lausestand dieser estates, charged too, meist mit debts and encumbrances.

Dagegen Musterfarm of Mr. Robert Leeds, of the West Lexham (Graf Leicester landlord), near Brandon, Norfolk. 1200 acres land, 1100 arable, 50 water meadows. „Whoever knows the district will be aware that the soil is light and sandy, only to be farmed profitably by being farmed highly.“ 20 years lease, Jagdrecht allein der tenant etc

„The homestead is fitted up with the best possible machinery, where corn is dressed, chaff cut, seed crushed, and cake ground by steam power. This cake a grand consideration at Lexham, where from 3 to 4 times the rent of the farm is annually expended in feeding stuffs and artificial manures. Er buys forward animals at from 20l. to 25l. each, and puts these on all the cake and corn they can eat, but never more than 2 bushels of roots a day. The beasts are on the farm 12‒16 weeks, and the yards are continually filled up with animals as those fit are disposed of. Except the bullocks bought in for grazing the water meadows, and which do not require any until July, alles sonst at Lexham is always eating cake, and the flock of ewes are now having 1 2 pound of cotton cake, with a limited ratio of bran at night. The breeding flock averages 300 ewes, and about 1200 hoggets are fattened during winter.“

Money market.

Greatest depression in the shares of the London Financial Association, afresh quoted at heavy decline in last week; Joint Stock Discount Co., on its Report, fell to 5 3 4 discount. Rumours. Selling of shares without reference to the positions of the different Cos. Imperial Mercantile Credit Shares also considerably lower.

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