MEGAdigital. Online-Angebot der historisch-kritischen Gesamtausgabe von Karl Marx und Friedrich Engels

8 September 1866. N. 327.

English Capacity.

English Gvt the most costly in the world, and the worst.

If we look to our legislation and administration, as affecting national defense, national finance, army and navy, Bk.o.E., railways etc, in all we shall see the same lamentable indications of utter incapacity. The „ruling families“ have lost the art of ruling, and the leading political parties the art of legislating and governing.

Besides the great leading parties of Liberal and Conservative, which manage to impede and obstruct all legislation on general topics, the House is split up into smaller sections, representing the particular rights of some private interest, which in general means some special wrong affecting the public interest. We have the great landed interest, and the Church party, the Irish party, and the railway interest, and the banking interest, and the director interest – comprising the directors of the water, and gas, and other jointstocCos jointstock Cos; and these sections, by occasional combinations for the protection of each other, can generally manage to defeat any attempt to protect the public against their wrongdoings. We have a deficient watersupply in India, and a defective water supply in London; both urgent evils for years, remain urgent evils, and in consequence we have at this moment 100dns of 1000ds dying of starvation in India, and of 1000nds either dying or subject to disease from the foul and pestilent water supplied by unscrupulous water Cos. in London. We want roads and railroads and canals for transit and for irrigation in India, and we have been spending millions of money to obtain them, but we have not obtained them, nevertheless. Our army and navy the most costly in the world, and yet we have scarcely a ship to send to sea to impede the passage of an invader. Sir John Pakington, one of the great mismanagers, startled the H.o.C. by telling us that, although we have been spending 10 mill. a year for the last 10 years, we have no naval reserve nor ships sufficient to relieve the vessels coming home from foreign stations! „There is“, says Mr. Scholefield, „an amount of incompetence and almost imbecility, of confused accounts and reckless extravagant extravagance to be found in the Navy Department not to be found perhaps Zusatz von Marx.
Schließen (!) in any other part of the Gvt. Administration.[“]

Blödsinnige Jointstock Cos. Legislation. We cannot have them worked in an honest and business[-]like way when they are formed; nor get them wound up without an enormous amount of trouble and expense when they fail. Promoters can job and manage pretty much as they please until the Co. is fully formed, and the directors can job and mismanage the funds of the shareholders pretty much as they please afterwards, and the shareholders and public are comparatively helpless against both of them. The same remarks apply to our Bankruptcy Laws.

For a man to purchase a seat in the H.o.C. by the most extravagant bribery and corruption is no shame to him or disgrace to the House, but he forthwith becomes an „honourable member“ of that assembly. For merchants, and bankers, and directors, and managers of joint stock Cos to embark in the wildest speculations … with the money of others is no longer morally or commercially wrong, provided only they succeed in making themselves rich by the process. Success covers the „multitude of sins“ which the achievement involved.

U. States Bonds.

5-20 bonds. Their price now 73%, rate of interest 6%, payable in specie in New York, yielding to the buyer more than 8% upon the purchase price guaranteed by the Gvt. of the U. St. The principal too is redeemable at 100 at the option of that Gvt. either in 5 or 20 years from the date of issue, but at the expiration of the 20 years the redemption is |215 compulsory upon the State. Therefore, in addition to the 81/3% interest which the purchase price of 73 yields to the buyer, there remains the difference between 73 and 100, or 27%, to be made good to the buyer within perhaps 15 or 17 years. Altogether 5-10 bonds yield the investor, at present prices, a minimum of 10%.

Agra and Masterman’s Bank.

Cause of its failure a run upon the Indian branches, consequent upon a telegram sent by a clique of speculators in London to India stating that the parent bank in London had stopped payment. Subscribed capital 3 Mill. St, in 60,000 shares. The last price at which business was done, 4£ p. 50£ share, upon which 25l. paid, also still liability of £25 p. share. The 4 last dividends paid 18, 22, 16, and 16% p.a., and, after the last dividend, there was stated to remain a „rest“ or surplus of undivided profits, of £510,254.

Paying amongst new limited Cos.

Waggon Cos:

Gloucester Co, £10 shares, all paid up. Dividend 8 to 12% p.a., market price about 113/4.
Birmingham Waggon Co. Dividends from 61/2 to 10%, 10£ shares paid up; market value par or fractional premium.
Scottish Waggon Co. 10 to 121/2% dividend. 10l. share paid up, market price about £14.
Railway Carriage Co 10 to 20% dividend, of £10 shares 3£ paid, market price about 43/11.

Manufacturing Cos (Lim.)

Hopkins, Gilks and Co (lim.) 10% div., of 15£ share 8l. 10s. paidup, market value £6, 10s.
John Crossley and Sons (lim.) 15% div., price 18l. für 15l. share, with 10l. paid.
Avonside Engine Co (lim.) pays 121/2 to 15%, price of £10 share mit £7 paid, 8£. p. share.
Patent Shaft and Axle Co (Lim.) 15% p.a. from commencement, 10£ share fully paid, market price £16.
Runcorn Soap et Alcali Co (Limit.) 15% p.a., 25£ share, 20£ paid, market price 171/2.
Patent Nut and Bolt Co (lim.) 15%, £10 share, fully paid, market price £9.

New Marine Insurance Cos:

British et Foreign Co (lim.) 10 to 15% p.a., 20£ shares, (2£ paid) worth 23/4. Reserve: £207,667.
London and Provincial Marine Co (Lim.) 10 to 15%, 20£ shares, 2£ paid, worth 21/4. Reserve £125,000.
Thames and Mersey: 10 to 20%, 20£ share, 2£ paid, with 71/4, Reserve: £527,394, or more than double the capital paid up.

Cotton Trade. (Prices)

Price of middling Orleans cotton at the close of August (1866) by contrast with 12 months past, now lb 14d., then 253/4d. Decline of nearly 1sh. a lb in one month. Before the American war price was 5d. or 6d. a lb … The quantity of cotton consumed by our own mills have averaged 45,610 bales per week throughout the first 8 months of this year, by contrast with 36,227 bales p. week in the same months last year, and thus far we may assume that the demand for cotton fabrics has been unusually large. Spinners bought cautiously upon a declining market, from „hand to mouth“. Questionable whether this scale of consumption will continue. Fact deserving notice, the decline in the prices of manufactured cotton goods, in which there is little or no speculation, has exceeded that in raw cotton during the last month.

March 16, 1867. N. 354.

South Eastern Railway Dividend

An increase in the capital during the last 5 years from 121/2 to 18 mill., nearly the whole of which has been raised in some form of priority overriding the dividend, and at rates of interest exceeding the average rate of net earning upon the entire capital spent. The dividend has fallen nominally from 5% p.a. to 3; but the actual decline is more than this, and having regard to the altered method of accounts, questionable whether the dividend of 1867 is not almost a myth.|

258

Commercial Morality. (Overends)

Aus:
The Money Market Review, 9. März 1867. S. 306/307.
Schließen Icon dass Zitate symbolisiert Meeting of English and American Bank on 5 March, London Tavern, Chairman William Scholefield, M.P. (perhaps 100 leading commercial men present). He (Scholefield) said took the chair, because their chairman Gordon Zusatz von Marx.
Schließen (one of the Overend Swindlers) became suddenly ill. „Mr. Gordon was extremely anxious to be present to-day, to state what he had done in reference to his connexion with this and other Cos.“ Der Zusatz von Marx.
Schließen grosse Gordon „has, with the frankness and sincerity of purpose which always marked Zusatz von Marx.
Schließen (!) him, placed himself entirely in the hands of the directors, to do what they please with respect to his resignation“. Sie werden aber take no steps „especially as our confidence in Mr. Gordon’s integrity is untouched in the slightest degree. I should mention to you, as a matter of some importance, that Mr. Gordon has taken the same course with other Cos with which he is connected that he has taken with regard to this, and in every instance the determination which has been come to by the directors interested has been that it is no part of their duty to take any steps whatever with reference to his resignation or the dissolution of his connexion with the Cos. (Cheers)“. Zusammenfassung von Marx aus: The Money Market Review, 16. März 1867. S. 335.
Schließen (Gordon had not given his resignation, but only declared his willingness to withdraw, if his co-directors etc should declare that he ought to do so.)

Zusatz von Marx. „1915“ ist das Pseudonym eines Verfassers einer Reihe von Leserbriefen an die „Money Market Review“.
Schließen Ueber diese Farce bemerkt 1915 u.a:

Vice Chancellor’s Malins charge of „fraud“ against the Directors in general of Overend, Gurney et. Co. (Lim.) involves this same Gordon. In the face of such a judgment, the „unabated and unbounded confidence“ – a very strong generality certainly under the special circumstances – can only rank as an illustrative certificate of character. Scholefield sagte that Gordon, but for „sudden and severe illness“ „was extremely anxious to be present to-day to answer any questions“, aber Scholefield afterwards added, that „Gordon’s official advisers have most strongly forbidden any action as matters at present stand“. How is the anxiety to speak to be reconciled with the prohibition of speaking? If Gordon, barring „sudden and severe illness“, be really eager to answer questions, he will enjoy the chance at the annual April meeting of the Oriental Bank Corporation. … Scholefield says that Gordon „has had no opportunity of saying a word in his own defence“.

On the 11 June (1866), when the only formal assemblage of the limited Co. took place, I Zusatz von Marx. „1915“ ist das Pseudonym eines Verfassers einer Reihe von Leserbriefen an die „Money Market Review“.
Schließen (1915) asked the new directors, Barclay, Gibb, Gordon, and Rennie to explain their doings with respect to the transfer. Trotz 4 × Wiederholung der Frage no answer. Gordon, not only silent, but changed his seat. 6 Months afterwards, 11 December (1866) Justitia’s Letter in Times. Gordon might have endeavoured to refute the writing, or prosecuted the writer. He adopted neither alternative. He penned to Times a most „lame and impotent“ promise to purge by oath. Gegen Ende des above said meeting, Robinson, a shareholder, would save Gordon by representing him not as a decoy but as a dupe. This Gordon, however, was a party to the 2 documents – the delusive prospectus and the secret deed. Nay, as to the former, he was more deeply concerned than any one else having drafted it in a form too bold even for the consciences of his accomplices in the business. According to the crossexamination of John Henry Gurney this Gordon did all this with his eyes open. His rough sketch had referred to „profits so long earned“. Now there had been only loss; and Gurney said as witness Gordon must have had in mind the perior period anterior to 1861.