26 May 1866. N. 1187.

The Economist, 26. Mai 1866. S. 613/614.
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The Substantial Grounds for increased confidence.

Coin and bullion. £.
In 1837 2,400,000
1847 8,312,000
1857 6,484,000
1866 11,857,000

Our discount rate 10% against 4% at Paris.

Besser if the Act had been nicht nur legally, but really broken. It would have been so, if the London bankers had not, to prevent it, sent in a larger amount of small notes than usual. Considering how much must be in the country branches, 800,000l. of notes is childish as a reserve. In fact, the Act was broken the moment the Bank began to act on the letter of this day fortnight; a course of policy then began inconsistent with every clause of it. If the directors were acting under no indemnity they would in the present state of the reserve deserve impeachment.

We are not frightened by the operations of the so-called „bear“ at the Stock Exchange. Some most unjustifiable ruses have indeed been resorted to by inferior persons which amount to aggravated plunder.

The operators, z.B. im case der London und Westminster Bank, could not get the shares which they sell without paying as high or a higher price than that at which they sell. They are indeed able to gain great profits and inflict frightful injury in two cases – first, where as in the case of the Bank of London there has been bad business, and the extensive credit of the Bank is thereby weakened. Then as soon as sales are pressed the price falls, and the operator is able to buy the shares he sold to-day at a far less price to-morrow. The profits so made where shares fall so quickly as those of the Bank o. London are very great, and the consequent ruin of the bank very quick. The same result also happens where, though no bad business had been done by the Bank, its shares are in the hands of poor people, who can bear no loss and |62 pay no calls. Such people rush to sell the moment the price falls; and the „bears“ thrive on their ruin … A fearful penalty is visited on incidental errors, and concerns which might have crippled on and got right, are by the depreciation of their shares crushed and swept down. But half of human justice works by decimation in this way.

The Economist, 26. Mai 1866. S. 614/615.
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The Practical effect of the Act of 1844.

The main use of the law is that it compels the Bank to act at an early stage during a foreign trade drain of bullion …  Zusatz von Marx.
Aber, der Esel sagt selbst:
the Banking department was bare in 1857 and 1847, before they had aroused themselves to act as they ought,  Kommentar von Marx.
und damals existirte ja Act of 1844!

Evils of the Act: A panic is necessarily aggravated. As the auxiliary credit currency having been impaired and injured, more notes, more primary credit currency is wanted to supply its place. On what is called Overend’s Friday“, the want of such currency was palpable, and it was given. The Act of 1844 is responsible not for the present want of credit but, but for the difference between the acute agony which preceded the relief from the Treasury and the slow suffering which we still feel. Certainly, Peel’s Act is a legal ligament which inflames panic into frenzy.

The Act of 1844 makes the quarterly payments of the dividends and salaries very serious matters, whereas otherwise they would scarcely be felt. The banking reserve being isolated, any considerable amount of notes withdrawn from it, even for internal purposes, makes a marked change, and … the rate of interest is raised unnecessarily. Whether a few more notes go out to the public is immaterial, if we make up the account in the „old form[“], or as the accounts of the B.o.F. are made up; but the loss of those notes, at critical instants, is made most important by the Act of 1844.

There is a danger from Peel’s Act we now experience for the first time; its suspension is liable to cause foreign discredit. This defect is most serious. Dieß bewiesen durch Clarendon’s Brief vom 12 Mai an die British Embassies and Legations throughout Europe, um klar zu machen, daß there is no suspension of cash payments or Bankerutt der B.o.E.

The Economist, 26. Mai 1866. S. 620/621.
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The Supply of Animal Food.

During the last 20 years provisions of all other kinds have become lower and more stable in price, while meat had advanced in value far more than other food has diminished, so that even mit better wages our working men find themselves no more able to furnish their families with a fair amount of meat than in the old days before Repeal of the Cornlaws. The importations of foreign live stock do, to a small extent, supplement and increase our own supplies. Probably preserved meat will by and by be derived from those pastoral countries where hides and wool have hitherto been deemed the sole produce of herds and flocks.

There is not the slightest doubt that if the land of this country were properly used and managed, and a far grater population than that now living in these islands might be fairly supplied with meat at a reasonable price. It is not by the diminution of our grain that we shall increase our meat. In modern husbandry more cattle and sheep on a farm imply and furnish the means of growing more grain, while the increase of grain – with its accompaniment straw – is the origin of more stock and stock |63 provender.

„Practically“, says R. Smith, in a lecture at the London farmer’s club, „it depends first (increased supply of animal food) on the investment of capital to increase the fertility of the soil; secondly, on the subsequent improved rotation of crops, so as to secure a larger percentage of cattle food produce with increased economy and decreased waste in its consumption; thirdly, on improved animals, with precocious habits, as fattening stock, whether cattle, sheep, or pigs … For such a purpose the strong lands, which hitherto have done but little in the way of increasing the supplies of animal food, should be used during the summer months for growing green crops. This ought to be to the occupier of clay soils what the winter feeding is to the occupier of light soils. Cabbages, early turnips (sown on a stale furrow) mangolds, and kohlrabi may be grown on clays, the two former in time to be eaten upon the land by the end of September, and the two latter to be drawn off, stored, pulped, and used with wheat straw chaff. In this way all the straw not absolutely wanted for litter, may be advantageously eaten, and, with the aid of oil cake and crushed corn, a good deal of mutton and some beef (the former pays best) may be made from the produce of those soils, the occupiers of which have hitherto relied upon wheat and beans only. This change of system would require autumn cultivation for all the green crops, and so raise the question of efficient drainage and steam cultivation.[“] In dieser question einbegriffen the whole array of questions and difficulties which beset, trammel, and impede British husbandry. Efficient drainage, with its necessary concomitant, sufficient building accommodation for stock must be the work of the landlord, an outlay of capital to be compensated by interest in the shape of increased rent, – to be followed by outlays by the tenant in improved cultivation and stock management which any farmer must be absolutely insane to make unless protected by a long and rational lease. Then steam cultivation can only follow as a result from these other and preliminary improvements. And to render steam cultivation possible there must be a grubbing up of hedgerows and the removal of hedgerow timber, which must be done by the landowner as a capitalist, and completely, too. It is if no use to grub the hedges and leave the timber standing (as we so frequently see) in the midst of an arable field, greatly impeding ploughs with horses, and presenting an absolute bar to steam cultivation. Yet when landlords have consented to the grubbing of hedge-rows, even at the tenant’s expense, they object to the removals of the trees, leaving them as evidences of prejudices at once childish and unintelligible. Yet these prejudices are the serious obstacle to the progress of English agriculture.

Ferner obstacle: The feudal notions which infect all that concerns the ownership of land in England. It is tenacity with owners of land to retain the ownership – very often only the nominal ownership – of much more land than they have the means of managing. Hence we have, in a modified form, many of the evils which affect the Irish tenantry – farmers occupying farms in which many of the most necessary improvements – necessary according to the actual state of English agriculture – must either be made by the tenants or left undone. The result is, especially on the strong soils referred to by Mr. Smith as those on which more live stock ought to be kept, that the improvements are not made. In fact, the strong lands of England are less productive of meat than they were a century ago, and mainly because they cannot be well farmed without considerable preliminary outlay on the part of the landlord.

Ferner poultry much neglected. Smith says: „The late Mr. Pusey told us, 1838, that while England Wales contained about 37 millions acres, and Scotland and Ireland about 20 mill. each, there were in the U. Kingd. 20 millions of acres laying waste, one half of which might be improved.“ Ferner Smith adverts to the want of economy which results from the yearly[-]tenant system, which is the curse of English husbandry.|


„Economy in Agriculture“, he says, „is a most important means by which an increased supply of animal food may be attained, the greatest of all being the increased fertility of the soil resulting from a liberal investment of capital under security of tenure, the fixed payments of a farm, such as rent, rates, and taxes, being the same; while, on the other hand, nothing can be well worse than the waste of capital where tenants are ‚farming in and farming out‘. There is economy in a good education; for, while a proper knowledge of the natural sciences is essential to profitable farming, it is equally important to understand the principles by which nature’s laws are governed. There is a marked economy even in well formed animals, as improved machinery at the farm factory, where the animal heat and the proportions of the boiler have alike to be consulted.“

Amongst other improvements he strongly recommended covered yards for stock. There, he says, „the cows having done growing would be placed in stalls to economise place, the fattening animals in warm boxes, the young growing stock would run loose in the centre yards, and the juniors would be placed in suitably arranged calf-pens; in the immediate vicinity of which are well-arranged root, chaff, meal, and mixing houses, which by their concentrated position afford an economy of labour, food, and supervision. Again, as the economy of warmth is a well known equivalent for food, so do covered yards economise feeding stuffs, while the even temperature of the building promotes both health and happiness. Covered yards are the things to save food; the cattle and food are all close together: what one won’t eat another will; nothing is wasted; and it is a capital thing pulping the roots and mixing them with the chaff. The best of all is, they don’t get washed by the storms. Their coats are so alike … They lie about like cattle on grass in the summer time, and don’t take near so much litter as the open yards.“

Mr. Cousmaker said: „too much importance could not be attached to the system of breeding … they ought to combine the breeding of stocks with its fattening: fattening.“ „He had himself escaped the cattle plague, although violently raging in his neighbourhood. In August and September they had lost in his parish 270 head of cattle. One of the causes of this escape was that he had not for years bought stock. He bred at one end and fattened on the other, and he never bought or sold, except to the butcher, beyond buying about once every 2 years a yearling bull, for the sake of change of breed.[“]

The Economist, 26. Mai 1866. S. 622.
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Paris Correspondent. 25 May.

Contrary to what might have been feared, the failure of Overend, G. et Co, and the panic at London, have not brought down any banks here, though several have suffered, one or two greatly. Nor has the stoppage of the European Bank, though it had a branch in this city, done much harm. But the difficulties created by the impending war are beginning to tell on commercial firms. Two commission houses of some importance have stopped; others are reported to be in jeopardy; and in all the great branches of trade the existing perturbation appears likely to produce serious consequences, in Paris and the large commercial towns. News this day arrived of the failure of a firm in the cotton trade at Rouen with liabilities of 4,000,000f.|


The Economist, 26. Mai 1866. S. 624–626.
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The Money Market.

Discount Market: Recovery from the panic very gradual, few symptoms only of returning ease. The public show small disposition to relax their hold on the sums withdrawn from deposit; and, as the bankers do not yet esteem themselves secure from further withdrawals, they are unwilling to make any advances, but hold their resources in turn, in reserve. In mercantile circles distrust prevails. Credit is subject to unusual tests, and paper, which in ordinary homes would be considered unexceptionable, is subject to fluctuations as to the rate at which it can be discounted … The demand for money under these circumstances sustained, on good securities, at Bank rate; on other than good securities it is difficult to secure advances; and, in many cases, claims have been held over in London and Liverpool owing to the impossibility of obtaining adequate accommodation. Nevertheless, orders from abroad are still received for English paper of the best houses. As a very limited amount only, compared with the demand, moderate as it is for this class of bills, is to be had, the rate undergoes a proportionate reduction, and takers bid from 81/2 to 8% for 6 months’ unexceptionable paper.

Gold appears to accumulate in the coffers of the B. o. France more rapidly than it is carried away from this country, and we may hence look for supplies of money from abroad on an extended scale so soon as the present partial distrust shall have been expelled.

With regard to the distrust at home – seeing that it is mainly owing to the unavailable nature of the securities in which the deposits lodged at the discount houses and banks have been employed, questionable whether legislative interference should not control the amount of deposits and limit their employment to securities, such as short bills on the one hand, or readily available securities on the other. The danger of the stoppage of banks in the present instance mainly arises from the possible enormous calls on them for the repayment of deposits at a moment when it is nearly impossible to convert their securities into available assets.

Foreign Stocks. Without exception heavy, prices subjected to very considerable decline. Danubian have fallen to near 50. Turkish stocks have also fallen.

Railway shares: Considerable decline from prices current last Friday. The unfavourable movement in the Bank market (Decrease of bullion of £466,019), and realisations with some speculation sales, account for the change. Indian railway stocks also lower.

Financial shares: Very limited dealings. (fast nur in 3 Cos.) Bargains in Overend, G. et Co shares, Imperial Mercantile Association and others, difficult; it being a matter of negotiation now that open market operations are no longer possible. International Financial Co’s shares moderately firm. General Credit improved slightly. Credit Mobilier et Foncier shares have fluctuated considerably, owing to large and sudden purchases, after which the price has mostly relapsed.

Bankshares: Great fluctuation. Previous to the transfer of the business of the Bank of London, unfavourable rumours afloat. Sales took place, followed by sales of shares in other banks, with a heavy decline. This evening prices firmer.

    Failures and stoppages:
  • European Bank (limit.) stopped 19 May. New Zealand Co (limited) not been able to meet their acceptance acceptances. Reese River Mining Co (lim.) winding up.|
  • 66
  • Suspension of Messrs. Robinson, Coryton, and Co. Private bankers at Manchester.
  • Kynaston, Sutherland and Co, colonial bankers brokers failed. Liabilities about 100,000l.
  • Commercial Bank Corporation of India and the East to be wound up.
  • Owing to recent failures at Bombay, S. P. Framjee and Co, of Gresham house, stopped payments. Liab. about 300,000l.
  • Sea and River Marine Insurance Co resolved to wind up voluntarily.
  • Petition for winding up: Glamorgan Iron and Coal Co. (limited)
  • Gellatly, Hankey, and Sewell, extensive mercantile and shipping house, resolved to liquidate under inspection
  • Sithney and Carnmeal Mining Co. ordered to be wound up by the Stannaries Court.
  • Luckie Brothers, merchants, stopped payment. Liab. about 70,000l.
  • Bank of London transfers deposit and current account to the Consolidated Bank limited. Owing to the pressure of a continued withdrawal of deposits.
  • McCulloch, John and Co, Liverpool, East India merchants, chiefly in the Bombay trade, stopped payment 24. inst.; liabilities nearly 3/4 million.
  • Klenan, of Angel Court, is in course of compounding with his creditors. Liab. 2,100,747l.
The Economist, 26. Mai 1866. S. 631/632.
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Cotton Trade. Liverpool. 24 May.

Business limited. Prices show a further decline generally.

Manchester. 24 May. This week (ausserdem Whitsunday holidays) almost a nonentity in business. Where any changes can be made in prices rather against the sellers. The amount of contracts also still in the hands of manufacturers has been such as to cause general surprise, though, here and there, as an exception, stocks begin to be found.

13 April. 1867. N. 1233.

The Economist, 13. April 1867. S. 427.
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Manufacturing Markets.

Manchester. April 11. Very dull market for both yarns and cloth; during the last 3 days very gloomy feeling owing to the generally current opinion now that prices must give way much further, owing to the languid demand for goods and the large supplies of cotton now coming forward. Prices are all lower and very irregular, some few wealthy producers adhering pretty firmly to our quotations; but the bulk are now anxious sellers, owing to their stocks becoming too unwieldy to hold. All anticipate lower prices.

Birmingham. Second quarterly meeting (on 11 April) der ironmasters of the Birmingham district. The quantity of finished iron sold was under the average, but there was a certain steady kind of trade doing; and producers seemed less anxious to press for orders than they did last quarter day. A demand for a large quantity of finished iron on account of the East Indies and Australia is said to be certain, contributed to cheerful feeling. The market for pig iron firmer, a considerable quantity of that class of iron sold to-day at 3l. 10s. per ton for all mine hot blast; cinder pig has sold 2l. 12s. 6d. per ton. We quote pig iron at 1s. 3d. per ton above the price of last quarter day.

Wolverhampton: Orders for iron continue far below the capacity of the works, although there is more doing than in the first months of the year.

Sheffield: The large iron und steel houses are doing a brisk trade in Bessemer steel for railway rails und other purposes. Some of them have also fair orders for railway wheels, springs and buffers. In most other departments business still languid.


  • 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