June 16. 1866. N. 1190.

The Economist, 16. Juni 1866. S. 697.
Icon dass Zitate symbolisiert

Still 10 Per Cent.

Attracts no money hither. Dazu our credit too much impaired. The ordinary international currency now deranged. It consists generally of bills, and bills largely upon London. Letztre now suspected; we pay gold and silver where we used to pay bills, and receive gold and silver where we used to receive bills. But zugleich high rate of interest contracts transactions, diminishes trades, lowers prices; tends to encourage exports, diminish imports, and so alter the balance of trade, bring in bullion, and what is more important still, to contract the sphere of our commerce, which was based on good credit.

The Economist, 16. Juni 1866. S. 697/698.
Icon dass Zitate symbolisiert

Overend, Gurney, and Co. Limited and Unlimited.

The report of the authorised accounts reveal an „interior“, such as has seldom been seen.

The old firm at the time of its conversion into a limited Co. insolvent by at least 4 millions £. St. The new Co. took over the assets of the old one under a guarantee. Unter den assets die partners’ private estate estates, aber auch der goodwill, hoch angeschlagen und keinen farthing wd werth. Diese in den Assets eingeschlossen bleibt deficit of 4,246,000. It is difficult to understand how any honest et able men could persuade themselves to sell, and still more strange how any such men could be so blind to buy, such a business. The old firm had engaged in extra-bill[-]broking operations, which would compel the Gurney family and others interested in it to sell their private estates; the moment those operations were known, the credit of the old firm was at an end. Der Glaube an sie in the provinces dauerte fort.

Auf die neue firm a run since months. Their credit was daily diminishing. Von Juli 11, 1865 bis 10 Mai 1866 fielen ihre Deposits of other people’s money um 4,660,000£; Von 14,400,000l. auf 9,800,000; or nearly 1/3. The moment the partners in the old firm were announced to be ruined – and this began to be Town Talk from February at least – the new co. was drained, pressed upon, and weakened day by day, while the absorption of means by the bad assets of the old firm rather augmented than diminished as time went on.

At the stoppage, the current bills discounted by the new Co. were:

Bills left with depositors security 6,285,000
Bills rediscounted 8,266,000
Bills in hand 1,149,000
15,700,000 |

The first are said by the accountants to be good, but all will not been paid. Of the rediscounted bills „a large amount will be returned, and in the first instance rank against the estate“ of the Co. The bills in hand are estimated to produce only 1,100,000l., being a loss of nearly 50,000l. on that item, and their realisation even at that sum spoken of as distant and even problematical.

The current bills clearly contain many questionable ones, and there are other losses too.

The paid up capital of the Co, 1,500,000l., is all gone. Now the Co. bought and involved business:

Deficit der old firm after deducing all receipts from the partners’ private estates 720,000
Sum given for that business 500,000

which is by far the grater part of 11/2 mill., and the bad bills and expense of liquidation will account for all the rest.

There must be a considerable call. Independently of other liabilities, the Co. owes to unsecured depositors 3,800,000l. Die shareholders werden wenigstens 20l. od. 17l. 10 p. share verlieren.

The Economist, 16. Juni 1866. S. 700.
Icon dass Zitate symbolisiert

Shortening the Usance of Indian Bills.

 Von Marx zitiert in Manuskript II zum zweiten Buch des „Kapital“ (MEGA² II/11. S. 212.1–10.)
The crisis of 1847 enabled the banking and mercantile community of that time to reduce the India and China usance from 10 months’ date to 6 months’ sight, and the lapse of 20 years mit all the accelerations of speed and establishment of telegraphs renders necessary further reduction from 6 months’ sight to 4 months’ date as a first step to 4 months’ sight. The voyage of a sailing vessel via the Cape from Calcutta to London is, on the average, under 90 days. An usance of 4 months’ sight would be equal to a currency of say 150 days. The present usance of 6 months’ sight is equal to a currency of say 210 days.
These 210 days renders it possible for a large part of the trade to be carried on by men who have little or no capital of their own, and who simply deal with other people’s money. They pay for the goods in India by the proceeds of the bill which they draw against them, and their correspondent on this side provides for the bill by selling or pledging the goods, assuming the English market to be favourable and to leave any margin in the operation. If the markets happen to be unfavourable the holder of the bill is left to pay himself as far as he can out of the  The Economist: hypothecated
security. The parties most interested in shortening the usance are the Indian Banks  Zusatz von Marx.
(in London.)
 … Not only is the term of 6 months’ itself most objectionable even for single bills, but it becomes doubly objectionable and doubly dangerous, in consequence of large masses ⦗batches, in fact⦘ of these bills having to be accepted, and, therefore, to be made payable on some single day, from the circumstance that the Indian mail arrive at particular periods and bring masses of bills, all of which are of course presented for acceptance within an hour or two after the delivery of the letters. On the 9. June, f.i., the amount of acceptances by the Agra Bank due on that particular day was not less than 1/2 mill. l. St. The bank had closed 2 days ago, and the bills were not met; but the certainty of having to meet a large amount of acceptances on the 9. had a good deal to do with the resolution to close on the 7.

The Economist, 16. Juni 1866. S. 706–709.
Icon dass Zitate symbolisiert

Movement of the Money Market.

Bank of England 13 June. (Wednesday). Increase of Circulation: 557,820l., Bullion 1,202,934, Reserve 689,509. Decrease: Private Deposits 79,336l., Private Securities 501,568.

Discount Market: notes to the extent of 5 or 6 millions have already been taken by country and other bankers and individuals to supply the reserve and additional circulation rendered necessary by the stoppage of so many banks and the loss of so much banking accommodation as has been thereby entailed. Indisposition to contract new engagements. The depreciation in the value of produce and in most kind of raw materials so great that few fresh imports are now engaged for. Outstanding indebtedness to this country is being discharged in gold; and, at the same time, foreign capital is again sent here for investment in longdated bills.|


A number of letters, addressed to the holders of London and County Bank shares, anonymous, and posted in London, E. C. N. 73 stampmark, have to-day been sent up to the head office of the bank from the country. The contents were simply: „Sell bank shares at once. From a friend. June 1866.“

On the subject of speculation in bankshares, an injudicious proposal is to be brought before the H.o.C. with the view of rendering „bear“ or „speculative“ sales a misdemeanour.

  • Hawkey, Whitford and Co, private bankers, of St. Columb and Falmouth bank, Cornwall. Liab. about 200,000l. Assets: 250 bis 300,000l., locked up in property.
  • Messrs James Barnes et Co of Liverpool, and T. M. Mackey and Co., of London, the wellknown shipowners, in consequence of the suspension of Barned’s Bkg. Co.
  • Stoppage of the „Universal Banking Corporation“ (Limited) (Eastcheap, London.)
  • The Foreign Lands and Mineral rights Purchase Co. (Lim.) voluntary winding up; ditto the „Dining Halls Co.“ (Limit.)

May 4, 1867. N. 1236.

The Economist, 4. Mai 1867. S. 493.
Icon dass Zitate symbolisiert

State of the Money Market.  Zusatz von Marx.
(The Savings and Trade)

Exports for the 3 months ending 31 March: 1866: £46,991,165. 1867: 42,381,621l. Diminution: £.4,609,544

Imports for the 2 months ending 28. February: 1866: £.26,457,723. 1867: 24,281,048. Diminution 2,176,675.

These diminutions are small, but a long experience shows that an augmenting trade is necessary to a stable money market, and that whenever trade goes down, even ever so little, the value of money is sure to be low. The reason is that the savings of the country accumulate day by day, and unlet unless some new outlet is found for them, an accumulation of loanable capital and a reduction in the rate of interest is inevitable. Ferner: now-a[-]days bills are scrutinised with extreme accuracy, with more nervous caution than almost ever before, and consequently the „effectual demand“ is less than usual.

The Economist, 4. Mai 1867. S. 495/496.
Icon dass Zitate symbolisiert

The Metropolitan Gas Bill

Every monopoly must, as such, be under public regulation, or it may hurt the public. Incomparably the best system in such a case where it can be applied, is that the State should be itself the producer. This system has been applied in Manchester and other towns to the supply of gas. The municipality manufactures, and if it manufactures ill its members can be unseated, and others who will do better put in. But at present, in Manchester, it manufactures very well.


  • 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