29 September 1866. N. 330.

The Money Market Review, 29. September 1866. S. 351.
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Reduction of Minimum Rate to 41/2% (27 Sept. 66’)

There is very little difference between the wealth and capital of 2 months, but the difference in the value of money by which wealth and value are expressed is more marked and sudden than at any previous period of like duration. Vor 2 months 10%, now 41/2.

With very dear money for more than 2 years, we had an enormous speculative business in Stock exchange securities, in produce of all sorts, besonders cotton, but now, with an unprecedentedly rapid fall in the value of money, promising almost nominal rates, there is an extreme absence of speculative business.

We must not have B.o.E. notes of the present character palmed off upon us as national banknotes.

The Money Market Review, 29. September 1866. S. 352/353.
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Losses by Shares in Liquidation.  Zusatz von Marx.
(Bankrupt private Concerns converted into Cos. Losses upon them.[)]

After a few years of Company-making and promoting, we have entered now upon a like period of company destruction and liquidation. There are many more calls to come (from the liquidators appointed by the Court of Chancery), and this is only an early stage of much suffering. The share mania through which we have passed has been extreme, and the other extreme of depression and exhaustion is present and in prospect. Zu many new Joint Stock Banks founded; dann Finance Cos. Dann: With the aid of the share mania, numerous insolvent undertakings, perhaps otherwise doomed to bankruptcy at the next money crisis, were foisted upon the public by ingenious proprietors as solvent and prosperous; and credulous shareholders now awake to the conviction, not only that they have been deceived, but, perchance, are ruined. Daher auch Confidence into in really sound jointstock shares is wanting. There was too much confidence, now too little, but much of the distrust is fully justified.|

As a speciemen of a few cos. in course of liquidation:
Present Loss to Original Subscribers.
No. of shares. Called p. share in liquidation.  Marx hat diese Spalte angekreuzt.
Before paid
Per Share. Total.
English Joint Stock Bk. 20,000 £4 £10 £.14 £.280,000
Humber Iron Works 20,000 20 20 40 800,000
Imp. Mercantile Credit 100,000 5 10 15 1,500,000
Overend, Gurney, et Co. 100,000 10 15 25 2,500,000
Joint Stock Discount 80,000 7l. 10s. 10 17. 10 1,800,000
Contract Corporation 20,000 30 10 40 800,000
Land Credit Co. (Ireland) 10,000 2 5 7 70,000

Here is an absolute loss to shareholders of nearly 8 millions, and they have still much more to pay. Yet, there is not one of these Cos. that did not either spring from private undertakings of reputed wealth and prosperity, or commenced business under favourable circumstances. The distress which followed the railway mania of 1845 and 1846 was intense, and, whatever the amount of calls paid, it was, for the time, swept away in depreciated market value; but these calls were represented by some value; there was the freehold of the land, upon which the rails were laid, and the rails, the lodgings, and a certain monopoly of traffick which must belong to every railway. But in this share crisis of 1866 the money called up under liquidation is utterly lost to the contributories. It all goes to pay for losses which can never be recovered, and against which there is no asset. It is gone, too, in several cases, to pay losses long concealed, and artfully made to wear the aspect of gains, or almost wilfully contracted by reckless management. The share crisis of 1866 is, therefore, peculiarly disheartening, und daher all new shares distrusted. If the Rothschilds, the Barings, and the Glyns were now to attempt to convert their firms into limited Cos, they would scarcely find bona fide subscribers. The share of such conversions has been too palpable, and the heavy blow under which credulous shareholders now suffer has been too stirring for confidence in anything „limited“.

The Money Market Review, 29. September 1866. S. 353/354.
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Depreciation of shares and Railway stock (this week).

Even London and Westminster, London and County, Alliance and Union Bank have each fallen 1£.

The most market marked feature fall of railway stock. Railway directors, by recklessly expending the enormous sums which the public as recklessly entrusted them in Parliamentrary contests, and by undertaking schemes simply recommended by their extravagant magnificence, have forfeited all confidence which in the time of cheap money was reposed in them. Ferner: public sees that it not only exposed to mismanagement, but to chances of fraud. The system of a huge floating debt altes Uebel, must lead to the consolidation of all the floating railway debt. The issue of fictitious promises to pay will then be rendered impossible. Distrust of public promoted by announcement der North British railway Co. that they have not sufficient funds to pay the 1% dividend recently announced, and that the shareholders are to receive |219 deferred dividend warrants in lieu of cash. The fall has been rapid and disastrous, and the stocks in good and bad repute have suffered alike.

April 6. 1867. N. 357.

Commercial Morality. (Overends) (Continued)

The Money Market Review, 6. April 1867. S. 424/425.
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The total number of creditors of Overend etc about 1500, old and new, about 1000, or 2/3 creditors of the old Co., at the time of the transfer. Old Co. carried on their business until 31 July 1865, the new Co commenced business on the following day, 1st August 1865. But according to the recitals in the deeds, the New. Co New Co. formed, and „established and incorporated on and from 12. July, under a memorandum of association with articles thereunto annexed, pursuant to the Cos.’ Act of 1862“, and this was 19 days or nearly 3 weeks before the actual transfer and the commencement of business took place. On 12 July ditto all the terms of arrangements as to the transfer of the old firm to the new Co. definitely arranged. At that time the promoters, who had constituted themselves the directors of the new Co., had become fully aware of the actual state and condition of the old firm. The fraud was complete and entire, on 12 July 1865, before one single shareholder had joined the Co., and before one single application had been made for shares. Whilst the applications for shares, on the false and fraudulent prospectus, were flowing in, the promoters and directors were occupied in maturing the documents by which the fraudulent compact was to be carried out. Darin activ Messrs Young, Jones, Vallings, and Roberts, the solicitors of the old firms, who also acted as the solicitors of the new Co. The prospectus, dated 12 July (and issued on that day) stated that „the deed of covenant in relation to the transfer of the business could be inspected at the offices of the solicitors of the Co.“, but that deed was only executed on July 27. Hitherto believed that although the secret deed was not offered to inspection at all, the deed of covenant was so, whereas it now appears that neither of these deeds executed, also existing, before July 27. Diese deeds, however, bound nobody except the partners of the old firm and promoters and directors of the new Co. On the same 12 July, notices were sent by the partners in the old firm and the promoters and directors of the new Co., in their corporate capacity, apprising the creditors of the old firm of the proposed transfer, and asking their assent to it, and to that transfer they assented. By that assent they released the old firm, and accepted as their debtors the new Co. as then incorporated. In the meantime they fished for shares by false prospectus, but no shares were allotted to any of these applicants until 31 July 1865, and the letters of allotment were not issued to them until 3d August, and the scrip certificates not until about a month after that. The register of shareholders would not be completed for a further period, and the share certificates were not issued until February, 1866. To whom then were the creditors giving credit during all this interval? Not to the socalled shareholders, but to the members incorporated on 12 July.

The Money Market Review, 6. April 1867. S. 435.
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 „1915“ ist das Pseudonym eines Verfassers einer Reihe von Leserbriefen an die „Money Market Review“.
remarks that Gordon nun eliminated von 2 aus 7 Cos., nämlich Ebbw Vale Co. und Société Financière d’Egypte. Henry Edmund Gurney is 1 director und 2 trustees; sein Bruder, Samuel Gurney, in virtue of his seniority in the family, is one president, 2 trustees, 9 directors. Is this not pretty well for 2 individuals, who, as hopelessly insolvent debtors at once in Overend etc (Lim.) und Norwich Bank, and many more concerns besides, cannot creditably hold one farthing of the requisite qualification in any of the cases cited?


  • 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