March 17, 1866. N. 1177.

The Economist, 17. März 1866. S. 313.
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The Fall in the Value of money.

Bankrate reduced to 6%. There is much foreign money in London attracted by high rates of interest, which is sure to go if the market falls to a low rate. The demand to the East might again revive. The number of schemes on the watch of our capital is now so great, that any monetary surplus is instantly drawn away from us.

The Economist, 17. März 1866. S. 315/316.
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Mr. Thiers on Protection to French Agriculture.

Thiers says: rent has increased of late years, taxation has increased, and the supply of labour has decreased owing to the emigration of 3,500,000 persons into the great cities, until less than 18 fcs per hectolitre will not pay, and less than 20 will not yield a remunerative profit.

Economist says: The English remedy under these circumstances is to throw farms together till they tempt man with capital to try an expensive mode of cultivation, and this remedy we frankly admit cannot be tried in France. The manners and institutions of the country, together with the passion for proprietorship, do not admit of so vast a social revolution. But nothing in these circumstances prevents the combination of groups of little proprietors to work their land in common, and thus securing at once the high cultivation which is the merit of the English system, and the independence and comparative energy of the peasant which is the merit of France. A commune can be cultivated by its owners acting together quite as well as by one owner, a theorem now being demonstrated in Holland.

The Economist, 17. März 1866. S. 319–321.
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Emile Pereires’ Evidence at Banque Enquête. (7 Nov. 1865 diese evidence)

Emile Pereire. The crisis of 1863–4 was caused solely by the measures adopted by the Bank o. France. That crisis had no intrinsic, no real cause, having its root in the situation: on the contrary, there was unequalled prosperity. For a long time the country had not had so good a harvest; and yet it was after that harves harvest that the restrictive measures were taken by the Bank. … By the generalisation of commercial relations, by the multiplicity and low price of means of carrying, we succeed every day, and still do so more and more in rendering crisis arising from scarcities much less prejudicial to circulation …

The Bank o. F. has no capital, or rather its capital is entirely immobilised. The following was its situation, according to its balance sheet of 2nd November (1865):|

f. c.
Capital 182,500,000 0
Profits in addition to capital 7,034,778 2
Reserves in securities 22,105,750 14
New fixed Reserve 4,000,000 0
Total 215,640,528 16
f. c.
Immobilised rente, and advances to the Treasury 209,430,488 0
Hotel and Buildings 8,475,341 0
Total immobilised 217,905,829 0

Thus the B.o.F. has immobilised a sum of 2,265,300f. above its capital and the totality of its reserves. With such a situation, it is impossible on the least derangement for the equilibrium not to be broken … the Bank desires to do all with nothing, for it has no capital. Notes payable at sights cannot be issued against immobilised stock. The first measure to be taken to avoid crisis should be to sell the rents of the Bank, and to constitute a reserve in paper on foreign countries. When one has bills of exchange in one’s portfolio, one has gold, because they can be exchanged at London for gold. But that is not even necessary; it would suffice to prevent the export of gold, if the exchange were unfavourable to exportation for the Bank to negotiate paper on London … I know this objection: „The Bank of England could do the same thing; it could have paper on Paris, and negotiate it at the same time as you do.[“] But the mechanism of exchanges is very simple. Paper on Paris cannot be demanded and rising at London, at the same time that paper on London is demanded and rising at Paris. It is the contrary which takes place; and is the forced consequence of this change of the debit or credit balance. Paper on London rises at Paris, when paper on Paris falls at London, and reciprocically reciprocally. So that it suffices to negotiate paper on London, in order to stop the export of gold from France to England …

On Oct. 5 (1865) the B.o.F. raised their rate suddenly, because they learned, by telegraph, that the B.o.E. had done so. … I only know 2 banks in Europe, that of France, and that of England. These 2 banks are the regulating establishments of commercial and public credit in Europe. They have each, independently of their mutual dependence, a speciality. England, by her old connection with all the world, is the market in which all the gold and silver of the New World and of Australia arrive … This monopoly is assured to England by her innumerable steam vessels. A steamship now leaves New York every day für England. In 1822, at Bordeaux, letters were only received 2 a week from Paris, and Bayonne only got letters 2 a week from Bordeaux. But now every day letters are received at London from New York. It is at London that all the precious metals arrive. … They are in great part spread over the Continent, and are centralised at Paris. It is at Paris that the great trade in the precious metals is carried on. Paris is also the principal exchange market, and that in which is concentrated all the bills of exchange drawn on England. Consequently, generally speaking, the metals destined to pay in Europe the transactions not settled by bills of exchange, return to Paris.

The par of the sovereign sterling at London is in the trade 25f. 16c. and at the Bank of England 25.20. The cost of displacing being estimated at about 7c., it results that gold may be imported from England when bills on London are from 25.10 to 25.121/2, whilst it is only possible to export at 25.371/2 or 25.40 on account of the loss sustained by the melting down of French gold pieces.

The American dollar sold at par is 5f. 16c. The expenses are 1%. The quotation must therefore be below 5.11 to render importation into France possible, and above 5.21 for exportation.

The gold napoleon is worth in Ejypt 776/40 piastres; which, with the cost of carriage, puts the rate at nearly 5.27 per Spanish piaster. (Spanish piaster = 5f. 17c.) To export gold coin from France to Ejypt, the rate must be superior to that price; to import into France it must be below 5.23.|


All these calculations are made in estimating gold at par. If these were a premium, the parity would be changed.

If now we apply these different operations to the quotations of 4. Nov. 1865, we see that the quotation on London being 25.20 to 25.221/2, and the premium on gold 3%, the price of London is reduced to from 25.13 to 25.151/2. Therefore, we can at the present moment (7 Nov. 1865) neither import English gold into France, nor export gold to England.

The rate at New York against gold is 5.16. At that rate, which represents par, no operation of importation or exportation can be made without losing the cost of carriage.

On the 5. of October, when the B. o. France raised its discount, the rate of exchange rendered gold export absolutely impossible. The rate of bills on London was 25.25, on the 9. October London paper was worth 25.28. In beiden cases export et import equally impossible.

2 February 1867. N. 1223.

The Economist, 2. Februar 1867. S. 117.
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A Curious Effect of the Paper Currency in America. (From the New York Chronicle, financial paper.)

Numbers. Liabilities in all the States. Dollars. Failures in Northern States only[.] Numbers. Dollars. Liabilities in Northern states only.
1857 4,932 291,750,000$ 4,257 265,818,000
1858 4,225 95,749,000 3,113 73,608,747
1859 3,913 64,394,000 2,959 51,314,000
1860 3,676 79,807,000 2,733 61,739,000
1861 6,993 207,510,000 5,935 188,632,000
1862 1,652 23,049,000
1863 495 7,899,900
1864 520 8,569,000
1865 530 17,625,000
1866 1505 53,783,000 632 47,333,000

Das Papiergeld durch seine depreciation takes from the creditor and gives to the debtor. During the war, the failures in the Southern States were not known; but taking the Northern States only, the lubricating influence of the deteriorating currency is wonderfully exemplified in the small amounts of failures in 1862, 63, 64 and 65.|


The Economist, 2. Februar 1867. S. 117/118.
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Proposed Trades Unions’ Commission.

It would scarcely be possible for any inquiry to show how often the mere existence of Unions have caused masters to raise wages without a strike, or even a quarrel; how often the same fact has prevented them from lowering wages where they would otherwise have been glad of the opportunity; and it is in their silent exercises of influence that trade combinations have no doubt effected their greatest benefit. You could discover by investigation, how often overexercise has caused illness; but not practicable to make out, by an investigation, how often moderate exercise has prevented it. Unions, which put the labourers to some extent in the condition of a capitalist, must improve the terms they obtain from capitalists. This power is so great as often to be abused, and to lead the men into wasteful strikes. But the power itself is an obvious and great good. Poverty and inability to resist disadvantageous offers can never be an advantage to either labourer or capitalist; for if to either, then to both; and it is, of course, absurd to assert that a poor capitalist who cannot afford to wait for his market, is not in a very much inferior position to a rich capitalist who can.

The Economist, 2. Februar 1867. S. 120.
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The dyers of Lyons and St. Etienne have addressed a petition to the minister of commerce, for a modification in the duties on alcohol, so far as concerns the dyeing trade. The preparation of the colours derived from aneline, „which“, they say, „tends to nothing less than to dethrone vegetable colours“, necessitates the employment of alcohol; but the Gvt requires the alcohol so used to be „denaturalised“ by the addition of 20% of coal tar, so as to prevent it from being turned to other purposes. This denaturalisation spoils its quality, hence Swiss dyers, able to use pure alcohols, are beating the French in the quality of their dyes. The French Alcohol too, though spoiled by the said addition, is taxed heavily, where that of the Swiss pays nothing; consequently, in price also, the Swiss defeat them. Whilst in France a kilogramme of light blue costs 445f., it only costs in Switzerland 205f. Nearly one half of the silks of Lyons and St. Etienne are now dyed by aneline.

The Economist, 2. Februar 1867. S. 121.
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Manufacture of Beetroot sugar.

In the German States which formed the Zollverein:

1851–2 1859–60 1864–5 1865–66
1,261,372 cwts 2,915,196 3,413,214 3,698,825 cwts.

Owing to the employment of improved processes, and a better cultivation of the root, the quantity of sugar obtained from the beet is gradually increasing. In 1863–4 it was 71/2%; in 1864–5: 8.20, in 1865–6: 8.55.

In Belgium: 1863–4: 400,620 cwts; in 1864–5: 437,896, und in 1865–6: 831,037.
Sweden 217,517; 230,000; 300,000 
Holland 50,000 50,000  70,000 
Dagegen decreasing in Russia 1,413,263 1,534,505  1,000,000 
Austria 1,169,057 1,691,280  1,350,000.
The Economist, 2. Februar 1867. S. 121.
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Tableau General du Commerce de la France. (issued for 1865.)

Total imports francs. Taken for consumption. francs
1860 2,657,300,000 1,897,300,000
1861 3,085,400,000 2,442,300,000
1862 2,899,200,000 2,198,600,000
1863 3,236,400,000 2,426,400,000
1864 3,407,400,000 2,528,200,000
1865 3,527,400,000 2,641,800,000
Total exports. francs French part thereof.
1860 3,145,500,000 2,277,100,000
1861 2,660,200,000 1,926,300,000
1862 3,049,900,000 2,242,700,000
1863 3,526,400,000 2,642,600,000
1864 3,921,200,000 2,924,200,000
1865 4,086,500,000 3,088,400,000 |


The Economist, 2. Februar 1867. S. 131.
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Manufacturing Districts.

Manchester. Jan. 31. Large business done in yarns und goods for China und India. Doch producers still complain of prices not paying; consequently, many continued to consign largely, preferring that risk to selling in this market at a positive loss.


  • 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