November 10. 1866. N. 1211.
The Economist, 10. November 1866. S. 1305.
Schließen
The State of the Money Market.
Bankrate reduced von 41/2 to 4%. The disturbed state of confidence is still shown, because money is being remitted from the East, while the demand for remittance to the East rather augments than the reverse.
The North British
Railway.
The Economist, 10. November 1866. S. 1306–1308.
Schließen
There seems no end of the railway scandals which this crisis will detect. While money is plentiful it can be borrowed, and used to pay dividends, debenture interests, any one in fact whom it is convenient to pay. But when money cannot be borrowed, these claimants become first irritable, then importunate, finally aggressive, upon which the latent sin is at once discovered. In the case of the North Brit. Railway no debentures have been issued in excess, no Act of Parliament intended to protect lenders has been violated, but a series of erroneous accounts have been palmed upon the shareholders and the public, and confirmed by dividends distributed, on the faith of which ordinary shareholders believed they had an excellent property, and preference shareholders – in several sets – lent money to the concern. The fraud here is a business, not a legal fraud; it consisted in publishing false figures, not in transgressing Parliamentary limitations. The North British is a very large railway and has many branches; more than 700 miles aggregate length, and an authorised share and loan capital of more than £22,000,150. Like so many railways in England, the North British has always been before Parliament, in a series of contests with the Caledonian etc … For a long times time its dividends about 3% p. annum. But the Committee of Investigation find that they have been procured by „manipulation“. The accountant is examined:
„You have stated that from your examination of the revenue accounts of Jan. 1865, you found that the revenue was some £36,000 deficient to pay your preference dividends? – Yes. – Did you report that to Mr. Hodgson (the chairman of directors) or to Mr. Rowbotham (general manager)? Yes. – Before the January accounts were published? – Yes, I required instructions what to do. … I was told the dividend must be paid under any circumstances. That day or a day or 2 afterwards, I was told to bring out a dividend of 21/4% that half year. (these instructions given by Mr. Hodgson.) – How did you do that? By making these cross-entries? Yes.[“] Mr. Rowbotham confirmed this. He was „cognizant of the irregularities in the accounts, and that dividends were declared and paid which had not been earned; but that he did not order or instruct the operations by which the balance-sheets were to show results unwarranted by the position of the co, and that the instructions on that point emanated directly from the chairman to the accountant. He also stated that, although he is the recognised medium of communication between the board and the department of accounts and audit, he did not convey |107 to any member of the board his knowledge of the irregularities.“ Herr Hodgson in seiner published defence, in reply to the Investigation Committee, says: „it would manifestly have been impossible to obtain or maintain the value of the railway without a temporary departure from the strict rule, whereby the limits of expenditure out of revenue and out of capital are defined.“ Und daher North British pumpte sein Geld on preference stock and debentures, because the accounts of the Co. looked well.
Share Capital of the North British | £.4,771,000 |
Its preference shareholders of all kinds | 10,642,000 |
Debentures all but a very little issued | 5,799,000 |
Gepumptes Kapital | 16,441,000, |
Hodgson seems to think that shareholders are necessarily benefited by false puffing accounts. But shareholders are a very fluctuating body. The shares of A become to[-]morrow those of B by transfer. Daher diese accounts a fraud on the buyer for the gain of the seller.
The mode in which the entries were managed was, that a certain amount of expenses which ought to have been by the halfyear were charged to various „deferred“ accounts. Das Investigation Committee says: „Apart from carrying to capital sums which should properly have been put to revenue, complicated and elaborated exertions have been made to conceal a large amount of expenditure under the head of suspense accounts, consisting of ‚line renewals‘, ‚line suspense‘, ‚surplus property‘, otherwise ‚postponed expenditure‘, ‚locomotive suspense‘, ‚suspense account, N. 2‘, ‚suspense account, 1863‘, and ‚contingent account‘. (‚Life‘, half the brokers of England think, in regard to railway accounts, ‚is not long enough to understand such things.‘) Purpose dieser entries, to bring out the intended dividend.[“]
The Persons most to blame are the Auditors. Hätten sie ordentlich zugesehn, so discovered daß die dividend paid out of borrowed money.
Aus:
The Economist, 10. November 1866.
S. 1316.
Schließen This latest development of railway
misdoings has communicated fresh alarm to the minds of holders of
railway stocks and shares. Auf dieser Basis renewed die
Bear manoeuvres, wie früher mit den Bankshares, most of
which have recovered from the unauthorised reports. … Unless the
money market alter very materially, not in
price, but in character, it will be
impossible to renew the greatest part of the maturing railway
debentures.
The Economist, 10. November 1866. S. 1316.
Schließen
Failures:
- Dent and Co’s (China) drafts refused by their London Agents: Dent, Palmer et Co.
- Stoppage of James Russell et Sons, Crown Tube Works, Wednesbury.
- Utley Uttley and Lee, manufacturers at Burnley, liab. 20,000l.
October 5, 1867. N. 1258.
The Economist, 5. Oktober 1867. S. 1122/1123.
Schließen
Suggestion Introduction (by
Mr. Hutton,
at Belfast Social Congress) of Prussian Rentbanks into
Ireland.
Zusatz von
Marx.
Schließen (Interest Bearing
Currency)
The Prussian Rent Banks seem to us a rudimentary and infantine financial
device … Stein had to
buy out, on behalf of the peasant cultivators, the manorial Lord. The
Rentbanks – no banks at all – were simply a Gvt. department charged with
this peculiar financial arrangement. The Govt. valued the interest of
the „lord“ at such and at such a sum, and issued to him bonds with 4%
interest – bonds in every sort of sum from 30s. to 150l. – payable at the option of the Gvt., but not at the holder’s option. The landlord was compelled to take
them, and the idea of issuing them in various sums was that he might
keep them or pay them away – in every mode that he thought fit. These
bonds were secured on the estate, and the tenant was obliged to pay a
certain rent-charge annually for their liquidation. There was an annual
„drawing“ (Ziehn wie bei Losen), according to the continental fashion,
and the bonds „then drawn“ were discharged out of the sums so paid by
the peasants. If the peasants did not pay their annual quota, the State took and used very ample powers
of entry and confiscation. Der Lord forced to take these bonds. It is plainly a severe act of
despotic finance. … In fact, no interest-bearing
security is really suitable to currency
purposes, because its value changes from day to day. The
interest accrues de die in diem. It is one thing
on the 1st Oct. and a greater on the 2nd Oct. A sum,
therefore, has to be done whenever the bond changes hands, and no
population has ever borne, or will ever bear, a kind of currency
requiring so much labour … |169 Prussia may have much to teach
us in other departments; but, surely money is our own
subject; we understand that if we understand anything. And so it
is.
Kommentar von Marx.
Schließen (Herr Jesus!)
Inhalt:
- 17 February 1866.
N. 1173. (Fortsetzung)
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24 February 1866. N. 1174.
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March 3. 1866. N. 1175.
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10th March, 1866. N. 1176.
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March 17, 1866. N. 1177.
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24. March 1866. N. 1178.
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31 March 1866. N. 1179.
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April 7. 1866. N. 1180.
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April 14. 1866. N. 1181
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April 21. 1866. N. 1182.
- April 28, 1866. N. 1183.
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5 May. 1866. N. 1189.
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12 May. 1866. N. 1185.
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May 19, 1866. N. 1186.
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26 May 1866. N. 1187.
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June 2. 1866. N. 1188.
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June 9. 1866. N. 1189.
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June 16. 1866. N. 1190.
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23 June. 1866. N. 1191.
- June 30. 1866. N. 1192.
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Saturday, 7 July 1866. N. 1193.
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July 14, 1866. N. 1194.
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July 21. 1866. N. 1195.
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July 28, 1866. N. 1196.
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4 August 1866. N. 1197.
- August 11. 1866. N. 1198.
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August 18, 1866. N. 1199.
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August 25, 1866. N. 1200.
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Saturday September 1, 1866.
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8 September 1866. N. 1202.
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September 15. 1866. N. 1203.
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September 22, 1866. N. 1204.
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September 29. 1866. N. 1205.
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October 6 1866. N. 1206.
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October 13. 1866. N. 1207.
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Saturday. October 20. 1866. N. 1208.
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October 27. 1866.
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November 3. 1866. N. 1210.
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November 10. 1866. N. 1211.
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November 17. 1866. N. 1212.
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24 November 1866. N. 1213
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1. December 1866. N. 1214.
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December 8. 1866. N. 1215.
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15 December. 1866. N. 1216.
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22 December. 1866. N. 1217.
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29 December 1866. N. 1218.
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January 5, 1867. N. 1219.
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January 12, 1867. N. 1220.
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19 January, 1867. N. 1221.
- January 26, 1867. N. 1222.
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2 February 1867. N. 1223.
- 9 February, 1867. N. 1224.
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16 February. 1867. N. 1225.
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23 February 1867. N. 1226.
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2 March 1867. N. 1227.
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9 March, 1867. N. 1228.
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16 March 1867. N. 1229.
- March 23, 1867. N. 1230.
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March 30. 1867. N. 1231.
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April 6. 1867. N. 1232.
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13 April. 1867. N. 1233.
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20 April. 1867. N. 1234.
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27 April. 1867. N. 1235.
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May 4, 1867. N. 1236.
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March
May
11; 1867. N. 1237.
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May 18. 1867. N. 1238.
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25 May, 1867. N. 1239.
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June 1. 1867. N. 1240.
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June 8. 1867. N. 1241.
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June 15. 1867. N. 1242.
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22 June 1867. N. 1243.
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June 29. 1867. N. 1244.
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July 6. 1867. N. 1245.
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July 13, 1867. N. 1246
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20 July 1867. N. 1247.
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July 27. 1867. N. 1248.
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3 August 1867. N. 1249.
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10 August, 1867. N. 1250.
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17 August, 1867. N. 1251.
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August 24, 1867. N. 1252.
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31 August. 1867 N. 1253.
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September 14, 1867. N. 1255.
- 21 Sept. 1867. N. 1256.
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September 28, 1867. N. 1257.
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October 5, 1867. N. 1258.
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October 12, 1867. N. 1259.
- October 19, 1867. N. 1260.
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October 26, 1867. N. 1261.
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November 2. 1867. N. 1262.
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9 November 1867. N. 1263.
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November 16, 1867. N. 1264.
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Nov. 23. 1867. N. 1265.
- 30 November, 1867. N. 1266.
- 7 December 1867. N. 1267.
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December 21, 1867. N. 1269.
- December 28, 1867. N. 1270.
- Saturday. May 19. 1866. N. 311. Panic.
Bank o. E.
- Money Market. (Reserve of B.o.E.)
- The Recent Panic and Bank Act Suspension.
- The Panic and its Remedy.
- What to do with the Act of 1844?
- The Times and the
Panic.
- Investors Losses from „Bear“ Frights.
- The Stock Markets of the Week.
- The Limited Liability Act of 1862.
- Railways. (don’t pay)
- The Reports of the Asiatic Banking Co., and the Bank of Hindostan, China
and Japan (Limited.)
- The Economy of B.o.E. Notes. 1000£ Notes.
- Money Market. (Reserve of B.o.E.)
- May 26, 1866. N. 312.
- The Bank of England and the London Bankers in the
Panic.
-
Lord Clarendon on
the Panic.
- Transfer of Business of the Bank of London to the Consolidated Bk.
- Loss in Investments since beginning of 1866 – May
26.
- The Stock Markets of the Week.
- What is a Five-Twenty Bond? (Neue Art Convertibility for paper
currency)
- The Annual Circular of the American
Commercial Agency. (Vehmgericht)
- Act of 1844 and Bank of England.
- A Pluralist Director.
- The Directors of failed
Cos.
- The Bank of England and the London Bankers in the
Panic.
- June 2, 1866. N. 313.
- John
C.
G.
Hubbard, M.P. On the Bank Act and the
Currency. (Letter to the Times on 14 May.)
- The Theory of Panic etc.
- Board of Trade Returns.
- The Consolidated Bank
(limited)
- American Exchanges and Grain Trade.
- Pressure and securities.
- Variations between Prospectus and Articles. The
Russian Iron Works Co. (lim.)
- America. U. St. (Trade)
- Bearing.
- John
C.
G.
Hubbard, M.P. On the Bank Act and the
Currency. (Letter to the Times on 14 May.)
- July 21, 1866. N. 320.
- 28 July 1866. N. 321.
- August 4. 1866. N. 322.
- 11 August, 1866. N. 323.
- August 18. 1868. N. 324.
- 25 August, 1866. N. 325.
- 1 Sept. 1866. N. 326.
- 8 September 1866. N. 327.
- Sept. 15, 1866. N. 328.
- 22 September, 1866 N. 329.
- 29 September 1866. N. 330.
- October 6, 1866. N. 331.
- 13 October. 1866. N. 332.
- 20 October, 1866. N. 333.
- 27 October 1866. N. 334.
- 10 November. 1866. N. 336.
- 17 November 1866. N. 337.
- 24 November, 1866.
N. 338.
- December 1. 1866. N. 339.
- 8 December 1866.
N. 340.
- December 15, 1866. N. 341.
- 22 December, 1866. N. 342.
- 29 December 1866. N. 343.
-
5 January, 1867. N. 344.
-
12 January 1867. N. 345.
-
Proposed Expansive Clause in the Bank Act of
1844.
-
Evidence of John Henry Gurney
and Mr. Robert
Birnbeck
Birkbeck
before Vice-Chancellor Malins.
-
Cotton Market. Past and Present.
-
Thomson
Hankey: (formerly Governor of B.o.E.) „The Principles of Banking, its Utility
and Economy; with Remarks on
the
the Working and Management of the Bank of
England“. Lond.
1867.
-
Proposed Expansive Clause in the Bank Act of
1844.
-
19 January, 1867. N. 346.
-
26 Jan. 1867. N. 347.
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February 2, 1867. N. 348.
-
9 February, 1867. N. 349.
-
16 February
1866
1867
. N. 350.
-
23 February 1867. N. 351.
-
2 March 1867. N. 352.
-
The Joint Stock Co’s Directory for 1867. London.
Charles Barker et Sons. 8, Birchin-lane.
-
Overends. Report of Liquidators and Report of Defence
Committee.
-
Leeman’s Bill respecting
Dealings in Bank Shares.
-
Limited Liability. High Nominal Shares.
-
London, Chatham and Dover
Railway Co.
(faux frais)
-
Plethora of money.
-
1915
on Overends.
(David Barclay
Chapman)
-
London, Chatham et
Dover
(Zusammensetzung des
Investigation Committee) (Solicitors)
(Scapegoats)
-
The Joint Stock Co’s Directory for 1867. London.
Charles Barker et Sons. 8, Birchin-lane.
-
9 March, 1867. N. 353.
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March 16, 1867. N. 354.
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23 March. 1867. N. 355.
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30 March 1867. N. 356.
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April 6. 1867. N. 357.
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13 April 1867. N. 358.
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April 20, 1867. N. 359.
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April 27, 1867. N. 360.
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May 4, 1867. N. 361.
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11 May 1867. N. 362.
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25 May. 1867. N. 364.
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June 8, 1867. N. 366.
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15 June. 1867. N. 367.
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22 June 1867. N. 368.
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29 June. 1867. N. 369.
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July 6. 1867. N. 370.
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July 13. 1867. N. 371.
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July 20, 1867. N. 372.
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July 27. 1867. N. 373.
August 3. 1867. N. 374.
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August 10. 1867. N. 375.
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August 17, 1867. N. 376.
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August 31, 1867. N. 378.
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14 September. 1867. N. 380.
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21 September, 1867. N. 381.
-
28 September, 1867. N. 382.
-
Gold mines of Victoria. (Kitto: „The
Goldminers of Victoria.“ Lond. ’67)
Expropriation of Individual
Labour. (Property)
-
Public Debt of Russia. Consul
Michell’s
Report.
- Robert Knight: Letter to the
Right.
Right
Honourable Sir Stafford Northcote on
the Present Condition of Bombay. Lond.
1867.
-
Limited Liability Cos formed since
1865.
-
Gold mines of Victoria. (Kitto: „The
Goldminers of Victoria.“ Lond. ’67)
Expropriation of Individual
Labour. (Property)
-
5 October. 1867. N. 383.
-
Money Market Review. 12 Oct. 1867.
- 19 October 1867. N. 385.
-
October
27
26
, 1867. N. 386
-
9 November, 1867. N. 388
-
16 November 1867. N. 389.
- 23 November 1867. N. 390
-
7 December 1867. N. 392.
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21 Dec. 1867. N. 394.
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28 December 1867. N. 395.