22 December, 1866. N. 342.

Aus:
The Money Market Review, 22. Dezember 1866. S. 700–702.
Schließen
Icon dass Zitate symbolisiert

Overend, Gurney et. Co.  Zusatz von Marx.
Schließen
(Times veering about.)

Times of 18 Dec. (’66) leading article sees nothing legally or morally wrong in the conduct of the partners of the old firm, nor of the new directors. Früher feebleness and indecision in its articles. „a disposition to wink at commercial delinquencies“, „shrinking timidity“, „moral cowardice.“ Then Justitia. Now: Fraudulent concealment and wilful and deliberate misrepresentation, for the purpose of taking the public in, if the public could not be taken in without them, are, according to the Times, neither legal crimes nor moral offences, but fair and |243 allowable mercantile transactions. That is the orthodox commercial morality of the Times.

Aus:
The Money Market Review, 22. Dezember 1866. S. 702/703.
Schließen
Icon dass Zitate symbolisiert

The Manchester Chamber of Commerce on the Bank Act and the Currency.

Motion was put into the recent crisis and the working of Act of 1844. President (Malcolm Ross) declared  Zusatz von Marx.
Schließen
that he was an ass
, that he had received 72 pamphlets and communications on the subject (one pamphlet proposing to allow banks to issue notes, taking pig iron as a basis) and  Zusammenfassung von Marx. „Mir wird von allem dem so dumm, Als ging’ mir ein Mühlrad im Kopf herum“ ist ein Ausspruch des Schülers von Mephisto in Goethes „Faust“.
Schließen
daß ihm ward von all dem so dumm, als ging ihm ein Mühlrad im Kopf herum.

This the extraordinary commencement. Dann the resolution moved by Henry Ashworth, who stated he did not wish to address the meeting, not being in possession of sufficient knowledge to enable him to express any definite idea on the subject. His seconder, Mr. Bannermann seconded it, because he was of opinion the inquiry would be of „no practical use“, having made up his mind that „the crisis had been caused, not by the Bank Act, but by overtrading“. Ferguson supported because no investigation was necessary, because the public were able to judge for themselves as to the cause of the panic, the immediate cause being the failure of Overend et Co, the proximate causes the speculations of the public in the shares of the limited liability Cos, and the action of the financial Cos.

Mr. Wood thought the passing of the resolution would not be for the credit of the Manchester Chamber, for it would simply show that they in Manchester were „ignorant of the causes etc“[.] He and Ferguson full of encomiums upon the Bank Act. Dennoch he and Ferguson voted for the resolution. Wood denied that the Act had been suspended more than once. The same Wood gave the following anecdote of Lord Overstone: „On the first occasion“, he says, „he asked Lord Overstone whether the suspension of the Act was sought, and Overstone replied that the authorisation was undoubtedly right, for there existed at that period a state of panic which, if it had not been allayed, would have swept everything away before it, producing a run upon the Bank of England which might have endangered the payment of the notes in gold.“ And it is said that the Act has secured the convertibility of the note from all danger! The Act works well in raising the price of the capitalists’ money, and in lowering the price of the merchants’ and manufacturers’ goods.

Bazley, übrigens auch für den Act, said u.a: This year greater exports than ever before, but imports exceeded them by 30 Mill. £. But Bazley ought not to be ignorant of the fact that it is the balance of indebtedness, and not the balance of exports and imports which governs the exchanges, and that the balance of trade may be and frequently is against us, whilst the balance of indebtedness is greatly in our favour.

Bazley sagt selbst, daß „it was our industry that bought the gold from every market … The B.o.E. could not do it of itself; it might possibly depress prices, and compel English manufactures to be sold at very low prices, in order that gold might be bought at very high rates.“

Aus:
The Money Market Review, 22. Dezember 1866. S. 708.
Schließen
Icon dass Zitate symbolisiert

Overends.  Zusatz von Marx.
Schließen
(Gordon and Rennie)

From the affidavit of those men (Gordon and Rennie) follows, that the Gurneys had told these 2 directors  Zusatz von Marx.
Schließen
(im Ganzen 7?)
their damnable secret on the transfer of the business.

In the Joint Stock Cos. Act of 1862 it is laid down: „Any fraudulent statement or concealment of fact ⦗in prospectuses⦘ will subject the persons putting it forward to criminal proceedings.“|

244

Is it in the power of any 8 persons, by means of the Limited Liability Act, to saddle unconscious individuals with the Debts of an insolvent firm, luring them by a flattering prospectus, whilst concealing the peril in which they are placed?

July 6. 1867. N. 370.

Aus:
The Money Market Review, 6. Juli 1867. S. 6/7.
Schließen
Icon dass Zitate symbolisiert

Barned’s Banking Co. (Lim.)

Infamous swindling. The private Bank of Israel Barned et Co, oldestablished, wellknown private bank, since 1809. 1865 Prospectus for formation of Limited Liability Co. with 2 Mill. £. Capital, 40,000 shares, 50£ p. share, for the purchase of this business and to organise it on a broader basis. 160,000£ purchase money, payable by instalments in 2 years, guarantee by the Barneds of the assets taken over, „a moderate payment for a lucrative business“. Dieß alles im Prospect. The assets taken over were utterly rotten, the guarantee utterly worthless. At that moment the firm Barned consisted of Mr. Charles Mozley and Mr. Lewin Barned Mozley. It had then been recently discovered that the Bank defrauded by more than 100,000£ by a relative of one of the partners. To repair these losses Lewin Barned Mozley brought a further capital of £20,000 into the Bank, |266 and Charles Mozley £100,000. But this latter sum, as afterwards transpired, borrowed from the Bk. o. Engd. on the guarantee of 10 Liverpool merchants, who had taken a mortgage on Charles Mozley’s property for that amount. The business, instead of being, as represented, „a large and continually increasing business“, had for some time previously been carried on without profit, if not on annual loss. The profits were variously stated at different times, but the representations always gross misrepresentations. The profits stated 60 or 70, or 50, or 40,000£ a year. But when more closely looked into – there were no profits at all for the last 3 years. Closely pressed, Mozley said that from the balance sheet prepared in 1865 he was not prepared to say that they had lost money, although he could not say that they had made any profit. At the time of transfer the old firm had lost more than all its capital; carrying on business for several years without any profit; it was under advances to several Liverpool firms, all of whom have since failed to £700,000; and their private property deeply mortgaged to provide the means of keeping the bank afloat. Yet these partners presented their profits at sums varying from 40 to 70,000£ a year. Lewin Barned Mozley said „he had just looked into the thing, and found that 20 000£ would cover the losses of the last 3 years[“]. When Mr. Bencke, one of the directors, evinced a disposition also „just to look into the thing“, he was told by Ch. Mozley that „in transactions of that kind it was unusual and highly improper to ask to see private books of accounts“. „The directors of Barned’s Bk. Co.“, says Ch. Mozley, „never made any inquiry into the private property of the partners in the firm of I. Barned et Co. They had confidence in the position they held, and the property which was patent to the town at large.“ So die new directors duped. The scheme was elaborately planned and cunningly worked out. Of the 40,000 shares, 20,000 or one half, representing 1 Mill. St., were subscribed for, in pursuance of a previous and secret arrangement, by 2 Cos. – Contract Corporation and Joint Stock Discount Co – which had no legal power to subscribe, since then became insolvent, and incapable of performing their engagements. The whole of the debts of this socalled Co, therefore fall upon a limited number of bona fide holders of shares, caught by these gross and fraudulent misrepresentations. Hitherto contributions of enormous amount levied upon these shareholders, until the whole of those placed upon the list of contributories exhausted or utterly ruined, and still the creditors have only received a fraction of their demand. Liquidators wollen nun die packen, die ihre shares verkauft haben within 12 months prior to the winding up order. (aber diese nur liable für debts contracted at the time when they were shareholders.)



Inhalt:

  • 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