January. 1866.

Saturday. Jan. 6, 1866. N. 1167.

The Economist, 6. Januar 1866. S. 1.
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Eight Per Cent.

Bankrate at 8%. Bank hӓtte früher raise sollen, zu 7%. Dann jezt nicht nöthig, den screw so scharf zu drehn. »We … carry on the trade of the country on the minimum of bullion which will suffice; and if the Banks are but a little behind in their protective operations, the result may be very serious … . If Peel’s Act is to be worked, the Bank must keep so strong (its reserve) at the middle of a quarter that these calculable drains at the end of a quarter shall not become catastrophes in its policy, shall not spasmodically affect the value of money, shall not jerk the money market.«

The Economist, 6. Januar 1866. S. 1–3.
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What The Value of Money in 1866 is likely to be.

 Zusatz von Marx.
Unter diesem heading entdeckt der wiseacre:
1) Daß seit dem Freetrade, Abnahme auf einem Markt, Expansion auf dem andern sich compensiren. Vorher we had nur access to a few markets; wenn diese overstocked, all our trade was suffering. Jezt »for the most part, trade augments with regularity[«];
2) Our system of credit is better than it used to be. Die Bank  Kommentar von Marx.
(the world, sezt er emphatisch hinzu)
kannte früher das Geheimniß nicht Bullion festzuhalten durch Erhöhung des Zinsfusses. »When in old times our credit system was shaken by catastrophes, our commerce languished for months, and money was cheap because no satisfactory persons wanted to use it.[«]
3) Now we lend more variously than we used to do … to foreign nations, to compagnies for purposes of work and construction in this country in forms and in quantities wholly unexampled. Daher the value of money, the average value, has permanently risen in Lombard Street.

We shall still deal very largely with the countries which take our bullion, and therefore the value of money will be to some extent affected by the abstraction of bullion. In 1866 his this cause of dear money will not be so potent as in 1864 and 1865, though it will be more potent than in common years. …

But, now there is no reason to fear the least diminution of credit. … As far as our credit goes, we may expect 1866 to be a normal year.

These variations of the rate of interest the moment a foreign drain sets in are inevitable, so long as we endeavour to conduct a vast trade, or rather two vast trades, one of selling, the other of lending, upon the minimum of bullion which will support that credit.

The Economist, 6. Januar 1866. S. 4/5.
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The Duration of our supply of Coal. ( Titel von Marx notiert in „Heft 3. 1868“ der „Hefte zur Agrikultur“ (MEGA² IV/18. S. 587.14) und im Notizbuch 1878/1879 (IISG, Marx-Engels-Nachlass, Sign. B 152).

»At least half the coal raised in Gr. Brit. is consumed by the various branches of the iron trade.[«] |2 Bei der present rate of increase, our coal exhausted in 100 years. Wir kennen jezt thickness and accessibility of our coal mines. Bleiben in Great Britain, down to a depth of 4000 feet, 80,000 millions of tons. Unsre Jӓhrliche Consumtion 1860 war 80 millions. So die available coal would last 1000 years. Aber Consum increases 31/2% p.a.; in 1880 will be 160 millions; und if it continues thus to increase, the whole 80 000 mill. worked out before 1960. Aber früher. Weil gerechnet all coal down to 4000 feet: no coal mine has yet been worked at a greater depth than 2,500 feet. Going deeper enhances the price und mit dieser Preiserhöhnung gehn unser rate of progress und special advantages zum Teufel. Mit tiefrem Arbeiten: the heat grows more insupportable, the shafts and passages longer, the danger greater, the ventilation more costly, the quantity of water to be kept out or got out more unmanageable. A very short period may raise engine coal and smelting coal from 5s. to 6s. per ton. Now a cotton mill of ordinary size will often use for its steam power 80 tons of coal per week; this at 5sh. is £1,000 a year; at 10s. per ton it is 2000. Aber die cotton mill is full of machinery; grosses Kostenitem dieser Maschinerie ist coal used in smelting and working the iron of which the machinery is made. Ebenso in den Transportmitteln, welche von und zu der Fabrik führen, in den railways und steamboats Kohle grosses Kostenitem.

The cost of carriage, therefore, which is a very large item in the contingent expenses of our factories, will be greatly increased both directly and indirectly by a rise in the price of coal.

Grosse Oekonomie im Gebrauch der Kohle schon eingeführt; in smelting iron we use 2/3 coal less than formerly, in working the steamengines 1/2 less.

It is only a rise in the price of coal that will goad us into a more sparing use of it; and this very rise of price is the proof and the measure of our danger.

Of all articles of trade and industry coal is the most bulky in proportion to its value; and it is the fact of having it at hand that has given us our manufacturing superiority.|


Of 136 millions of tons now annually raised throughout the world, Gr. Brit. produces 80 mill., the Un. States only 20.

Their (the U. St.) coal fields are estimated at 196,000 □ miles in extent, ours only 5,400. But this is not all: their coal is often better in quality and incomparably more accessible than ours, especially in the Ohio valley. In some places the cost at the pit’s mouth even now is 2s. p. ton in America, against 6s. in England.

Jan. 13, 1866. N. 1168.

The Economist, 13. Januar 1866. S. 29.
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The State of the Money market.

For the present the foreign drain  Zusatz von Marx.
(to the East)
is checked; the silver market in London is dull.

Where does our gold go? Früher, in drain to India, silver went, nicht gold. Grund: Till a recent period, whatever silver was wanted for India was collected on the Continent and sent here. We sent it on to India. But now there is a French compagny sending silver, and French seamen carrying it from Marseilles without its coming here … Our gold goes to pay for the silver which formerly used to be sent to us bodily; but now it is used on our account indirectly, it is transmitted from Marseilles to India to pay our debts.

Many people wonder why, when there is a quick rise of money in Lombard Street, it should be cheap on the Stock Exchange. It is cheap in the latter, because it has quickly changed in the former. The quick change makes people uncertain und dann der easiest market ist der Stock Exchange „from day to day“. Discount houses etc deal dann möglichst wenig in bills, use it daher on the Stock Exchange, where they can have it at once, just because they do not feel sure enough of the future to lock up their resources till definite dates.|


The Economist, 13. Januar 1866. S. 30/31.
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Our Trade with America.  Zusatz von Marx.
(U. St.)

Alarmists raise warnings.

Our exports to America up to 31 Oct. 1864 15,403,017l.
ditto 1865 14,844,704.
Nun 1859 our export to the U. St. 24,417,000

Wenn also nicht in Nov. und Dec. 9,600,000l. importirt, so geringer als 1859.

England und Europa jezt large buyers of American securities, railway debentures und 5.20 bonds the imports which balance our exports.

The Economist, 13. Januar 1866. S. 32/33.
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Market Prices of Investments in the Year 1865.

As a rule, and in the long run, prices are the true indicators of value.

U. States: debt of more than 600 Mill. l. St. and annual charge upon that debt to be raised by taxation: more than 40 mill. l. St. Our Railwaystocks not improved in 1865. Erklärt dieß, weil sonst profitlichere investments. Daher preference shares declined. Ferner: the original railway stocks possessing no guarantee have been injuriously affected by the recent and prospective commitments of nearly all railway companies to raise additional capital for the formation of new railways. As yet there is no material decline in dividends.

Shares of the banks: On average prices wonderfully supported in 1865, mit exception of Indian and some other banks.

Nicht so die Finance Compagnies. Fall ihrer Prӓmien (z.B. Credit Foncier and Mobilier of England, Financial Discount, General Credit, International Financial, London Financial, Land Securities, Oriental Financial). Obgleich die meisten dieser undertaking undertakings »have been in appearance successful and have paid large dividends«.|


Consols (1865) fallen von 893/8 zu 873/16. Actual decline von beginning to end of the year 2%. Hauptsächlich, weil andre securities profitlicher waren.

The Economist, 13. Januar 1866. S. 35/36.
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A Practical Check on Bubble Compagnies.

Consols depreciated, aber noch mehr limited liability shares, manche wholly unsaleable or standing at a disastrous discount, with heavy calls looming in the future …

Limited Liability is not really the sole cause of the present pressure, which is due largely, if not chiefly, to the feverish energy imparted to trade by the inflation of the currency in America and to the derangement of the cotton trade.

Bubble companies for working a patent, or constructing a railway, or „taking over“ a line of steamers, or a private business, or purchasing and working a mine in Mexico, a tea estate in India etc

January 20, 1866. N. 1,169.

The Economist, 20. Januar 1866. S. 61.
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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.

The Economist, 20. Januar 1866. S. 63–65.
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Insurance Companies und 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  Zusatz von Marx.
(leztres Beiblatt zum „Economist“)
nur 16 at a discount, dieser trifling und [»]belongs chiefly to the shares of the new marine insurance cos«. |6 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’ cos, darunter nur a few cos’ 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 Zusatz von Marx.
«  Kommentar von Marx.
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.[«]  Kommentar von Marx.

The Economist, 20. Januar 1866. S. 65/66.
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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:)|


The Economist, 20. Januar 1866. S. 68.
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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 und 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 indebtedness 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.

January 27, 1866. N. 1170.

The Economist, 27. Januar 1866. S. 89/90.
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The Memorial of some Liverpool Merchants on the Currency.

They ascribe „the excessive and usurious rate of interest“ dem Act von 1844 und Bank of England monopoly. Both to be abolished. Jede Person und Compagny soll have power to issue notes, so viel they please, upon the deposit of sock 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, wether 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.|


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.

The Economist, 27. Januar 1866. S. 92/93.
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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.|


The Economist, 27. Januar 1866. S. 94/95.
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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 321/2 50 18 22
Metropolitan and Provincial 71/2 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) |

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
Lond. and Westm. 20,779,301 1,677,841 2,489,412 16,600,522
Half Year ended 31 Dec. 1865
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
Lond. and Westm. 20,779,301 20,767,775 4,000,000 24,767,775
70,892,037 77,705,293 16,697,825 94,403,818|
Eingeklebter Zeitungsausschnitt
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The Social Economist, 1. Oktober 1868. S. 123.
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The last Act of the late session was to provide better dwellings for artizans and labourers. The preamble states that it is expedient to make provision for taking down or improving dwellings occupied by working men and their families which are unfit for human habitation, and for the building and maintenance of better dwellings for such persons. The Act is to apply to the metropolitan and other districts of the United Kingdom as set forth in the schedule. The mode of procedure under this statute is very simple. It provides for the appointment of officers where necessary, and if in any place to which the Act applies the officer of health finds that any premises therein are in a condition or state dangerous to health so as to be unfit for human habitation he is to report the same, and notice forthwith is to be taken to remove or to improve the same. Action is to be taken by local authorities on the report of surveyors against the owners to make them comply with the directions, subject to an appeal to the Quarter Sessions. On four or more householders living in or near to any street representing in writing to the officer of health that any premises in or near that street are in a condition or state dangerous to health he is to inspect them and report, but the absence of any such representation is not to excuse him from inspecting any premises and reporting thereon. In the event of the local authority declining or neglecting for the space of three months after receiving such report to take any proceedings to put the Act in force, the householders who signed the representation may address a memorial to the Secretary of State, and he may direct the local authority to proceed under the Act. On the owner of premises being required to execute the works, and in his default, the local authority may either order the premises to be shut up or to be demolished, or may themselves |22 do the work. Where the local authorities execute the works they may apply to the Quarter Sessions for an order charging on the premises the amount of all costs and expenses in and about the execution of the works, and the Quarter Sessions, when satisfied of the amount so expended, is to make an order charging the property with the amount and 4 per cent. interest which charge is to have priority over all other charges, and to be deemed a mortgage. If the requirements of the order involve the total demolition and not the improvement of the premises, the owner is within three months after service of the order to remove the same, and if he fails then the local authority is to execute the order and pay him any balance that may remain after the expenses from the sale of the materials. Instead of effecting the improvements required by the local authority, the owner may take down the premises. Where an owner executes the work required by a local authority he is to have an annuity as compensation for the expenditure incurred by him in the shape of a charging order. The annuity is to be £6 for every £100, and to be payable for 30 years. Every charging order on premises in Middlesex and Yorkshire is to be recorded in the Registry-office. With the view of a general adoption of the Act–and there are many places where the working classes “most do congregate”―the Public Loan Commissioner may make advances, and the local authorities may borrow money for the purposes mentioned. Many public improvements are being carried out and contiguous to the same are wretched dwellings; they could be improved or demolished, and the principle involved in the preamble that they were unfit for working men and their families as “human habitations” could be easily established.―Times.

 Handschriftlich von Marx.
The Social
ECONOMIST.  Handschriftlich von Marx.
[OCT. 1, 1868.


  • London. 1868.
  • 1866 „The Economist“ (Jahrgang 1866) vol. XXIV.
  • The Social Economist, 1. Oktober 1868
  • „The Economist“ (Jahrgang 1866) (Fortsetzung)
  • Jahrgang 1867.
  • Register der obigen Auszüge aus dem Economist für 1866 und 1867.
  • The „Money Market Review“. Jahrgang 1866.
  • The Money Market Review. Jahrgang 1867.
  • Register Money Market Review Jahrgänge 1866 und 1867