Aus:
The Economist, 3. März 1866. S. 253/254.
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Board of Trade Returns.

30

Aus:
The Economist, 3. März 1866. S. 254–256.
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James Rothschild Evidence (Continuatio)

J. Rothschild: „It is precisely those  Gemeint sind die Goldfunde in Australien seit 1851.
Schließen discoveries which came to our relief. But for them, we should not have been able to do what we have done. There has been a substitution of Australian gold, new or native gold, in place of the specie which we have sent to China or to India, and which will be long before it returns, if it ever does return. … There was a moment when I trembled for a crisis in Germany, because silver had |31 disappeared: so much had been bought to send to China and India; it had become so scarce at Hamburg, Frankfurt, and in many other towns of Germany, where silver is the only circulating medium, as in China and India, that we knew not what to do. Silver was for a time at from 30 to 40f. premium per mille.[“]

President: Do you not think that the corrective of foreign investments, loans, railways etc. is to be found in commercial operations themselves, and that, f.i., a nation which borrows in the French market 300 or 400 millions, does not withdraw them entirely, but employs a part to pay for goods paid there?

J. Rothschild: Yes. 7/8 or 15/16 are employed in buying goods – locomotives f.i; it is impossible to say how many we send abroad. I speak from experience.

Michel Chevalier: If at a given moment there is a tendency among traders to export gold and silver, why should the Bank oppose it by any measures whatever? It does not trouble the export of wheat and wine, why should it trouble the export of gold?

J. Rothschild. Everybody has the right to defend himself, and if the Bank finds that too much gold and silver is being exported, and may consequently fear that in case the reimbursement of its notes should be demanded, it could not make it, – it is its duty to say: I will reduce my discount … so as to be in a situation to re-imburse my notes. … The raising of interest makes the rarity of money. Leave the interest of money at its ordinary rate, at a moderate rate, nobody is disquieted, nobody takes precautions; whereas the raising of interest always causes something unpleasant to be feared. I, f.e., am seated at my desk; I receive a letter from Alexandria, „Send me a million in 5f. pieces.“ The discount is at 4%, I see no danger. I can send the money. But if the discount of the Bank be raised, I say to myself: „I must take precautions“, and I do not send the money. Knowing that I shall have payments to make at such and such an epoch, and not knowing that money will not be still rarer at that moment, I keep my funds, and I renounce a profit of 3 or 4%, rather than send my money.

M. Chevalier: But if the sum be due, you cannot avoid paying it; even if the discount should be 12 or 15%, the money must be sent.

J. Rothschild. No doubt; but I put the hypothesis that I owe nothing.

President. Then you consider the raising of the discount as not being able to paralyse forced and obligatory operations, but … as preventing supplementary exportations, which would be the consequence either of too great security, or of too great facility in undertaking new operations.

Aus:
The Economist, 3. März 1866. S. 260.
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Rates of Discount (this week) in the chief continental cities:

Aus:
The Economist, 19. Januar 1867. S. 58.
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The Danger of mixing up Acceptances and Deposits in the Banking Accounts.

Suppose the liabilities of a Bank, viz. deposits and acceptances together, have, at 31st Dec. 1866, fallen off, say 3,000,000l., as compared with June, 1866. The Bank may have shortened sail, and reduced its acceptances, or lost public confidence, so that public has reduced its deposits. While the accounts are put together no human being can tell which. The chairman of one bank has defended the combination of these distinct liabilities, upon the ground that it was not desirable, that the source of the bank’s profit should be revealed.

Aus:
The Economist, 19. Januar 1867. S. 60–62.
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Letters of Creed and Williams on the danger of foreign competition in the iron trade and the subsidiary branches of industry.

Aus:
The Economist, 19. Januar 1867. S. 62/63.
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„Government Notes“ by R. Slater.  Zusatz von Marx.
Schließen (Mintnotes) (Bullion notes)

Hat gezeigt, in a pamphlet, December 1857, from actual commercial transactions reduced to the scale of one million, that gold entered only to about 3% of the whole, banknotes 8%, bills of exchanged exchange to 53%, cheques to 36% of the actual circulation. Let the Mint, or some public body, be the recipient of standard gold, and issue its certificates for its value at 3l. 17s. 101/2d. per oz. These certificates, or notes against bullion, will circulate over the whole of Europe, without the necessity of exporting bullion. But above all, that bullion will belong to the people in whom the capital of the country is really invested, will be distributed amongst them, and not be concentrated in the hands of the Bank.

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