9 March, 1867. N. 353.

The Money Market Review, 9. März 1867. S. 295–297.
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Appointment of Parliamentary Committee on Limited Liability Acts and their Operation.  Zusatz von Marx.

Dieß auf Watkin’s Vorschlag (motion). Er gab some statistics: There are now 2200 Joint Stock Cos. in this country, with capital of not less than 1000 millions £, 750,000 shareholders, 12,500 directors. Since the passing of the Limited Liability Act the Cos. formed under it nominal capital of 150 mill. £. St., paid up capital of 30 mill.; large proportion of this capital, nearly 1/3 , appertains to Cos. now in liquidation.|


The periodic recurrence of speculative manias, and their tendency to promote transactions either positively fraudulent or verging upon fraud, have become familiar historic facts.

There are now 4 Courts of primary jurisdiction engaged in winding up joint-stock Cos., their decisions often in striking conflict not only with each other, but with the decisions of the Courts of Appeal. The expenses of these proceeding proceedings enormous, a scandal and disgrace to the law and its administration. „The fees of the Chief Clerks“, said Watkin, „are high, but they are nothing compared with those of the official liquidators“; and he instanced the case of a Bk. Co. which had failed, but at the end of 5 months had been reopened. The claim of the official liquidator in that case, for 5 months’ work, during which he had employed 12 clerks, whilst he himself had been employed in a host of other concerns as well as the Co. in question, amounted to the modest sum of £38,000. Formerly, official liquidators were paid by a percentage, but latterly, they demand remuneration by the day, and, as Watkin stated, „many of them have been suddenly struck with the great importance of proceeding with due deliberation“. Mr. Morrison urged inquiry into the proceeding in voluntary liquidations without the supervision of the Court, „for he had heard of cases of extortion against Cos. which he should like to see brought to the test of truth“. Alderman Salomons said: „As to the liquidators, they were a public nuisance. They caused great delay, and no information could be obtained from them.

The Money Market Review, 9. März 1867. S. 297/298.
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Leeman’s Bill. Vote of H.o.C. (5 March 1867)  Zusatz von Marx.
(Stock Exchange)

By law there shall be no more „time“ dealings in bank shares.

Durch den Stockexchange pass at least 500 millions of other people’s money annually. The Stock Exchange close body, like a club; about 1000 members, governed by a committee of 30, annually elected. The admission of members vested in the Committee etc. The body consists of brokers and jobbers. A stockjobber is simply a stock or share merchant. No capital would suffice for him to hold a stock to meet the wants of the public at large, and so rapid are the fluctuations in the prices of securities that no man of sense, if he had the means, would lay in such a stock. The sharemerchant must therefore be prepared to sell to as well as buy of all comers. This necessity, and the extraordinary pressure of business, have originated a system unknown in any other market. The jobber ascertains the momentary value of a security, and, as it is called, „makes a price“. F.i., a holder of Great Western Railway Stock instructs his broker to sell £5000. The broker goes into the market, and asks a jobber to „make him a price in £5000 Great Westerns“. The latter, knowing that the stock has been recently dealt in at 50, „makes“ 493/4 to 501/4 – that is, he undertakes to give the former price for that amount of stock, or to sell it at the latter. If the business is concluded on these terms, the jobber’s only object – unless he happens to have sold the stock previously – is to turn it over at a profit. Of course, if sales preponderate, he may be unable to part with his purchase except at a loss, or may have to find the necessary capital to pay for it at the settling day. Looking at an isolated transaction in this matter, the risk would seem to be very great, but it is in reality less than it appears. So frequent and so enormous are the transactions of the Stock exchange (for all the share operations of the kingdom centre in it) that in most instances a moderate profit is easily realised. Besides, it is not only in London that a jobber deals, and, if unable to close a bargain here, he frequently succeeds in doing so by telegraphing to his correspondents on the various country Exchanges.

The jobbers take different „lines“; some deal in Consols, some in Foreign Stocks, some in Bankshares, other others in Indian railway securities, some in colonial bonds, some in the Northern, some in the Southern English lines, others in financial and miscellaneous undertakings. By habit and for convenience, a certain portion of the large room (forming the Stock Exchange) is occupied by the dealers in each different class of property, and a member knows at once that in one corner he will be able to deal in Consols and in another in mining shares. As a rule a jobber devotes himself, for the time, to one class of security, changing his market occasionally, as the business in one falls off or in another increases. Certain firms and individuals, however, possessed of unusually large capital, deal through their partners or authorised clerks (clerks whom they invest with special power to deal on their account) in nearly every class of security that is quoted; and there are a few jobbing millionaires who have correspondents all over the world, and transact business by telegraph in Paris, Vienna, and New York as well as London. The only possible mode of executing his client’s order expeditiously consists – for the broker – in the free market which the jobber creates. The dastardly plots (as against the Agra Bank) were formed outside, and entirely independent of the Stock Exchange, by bankrupt speculators in the City, by  The Money Market Review: desperate men
who had nothing to lose, occasionally by haunters of West-end clubs, and in some cases they originated with directors themselves who, foreseeing the ruin from the information they possessed, sold freely, and even induced others to  |257 sell. The Stock Exchange only the unwitting instruments of their schemes.

The Money Market Review, 9. März 1867. S. 299.
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Board of Trade Returns.  Zusatz von Marx.
(their incompleteness)

They omit much that is exported and imported. F.i. in 1866 we were large importers of 5-20 Bonds, and other American Securities; we lent money to all our colonies, and to most of the world, against which we imported securities; those securities do not figure in the Return. Ebenso, the exports of foreign and colonial merchandise not manufactured – a very large proportion of our exports – are not valued by the Board of Trade. So impossible to strike any accurate „Balance of Trade“.

Imports of Articles Enumerated. Month ended 30 November.
1864 1865 1866
Computed Value £16,164,570 £.19,910,403 £17,841,738
Eleven Months ended 30th November.
Computed Value £197,448,426 £.180,820,357 £211,539,785
Deduct: Raw Cotton 66,991,418 49,294,092 70,665,438
£130,457,008 £131,526,265 £140,874,347
Deduct. Cereals 18,600,191 17,908,052 26,001,033
£111,856,817 £113,618,213 £114,873,314

Deducting raw cotton and cereals – the 2 great items of disturbance – Imports of the 11 months of the 3 years valued as nearly as possible alike.

Exports of British and Irish Produce. Month ended 31 Dec.
1864 1865 1866
Declared Value. £.12,095,437 £.15,030,088 £14,914,563
Year ended 31 Dec.
Declared Value. £.160,449,053 £.165,835,357 £.188,827,785
Deduct Cotton Manufactures 45,799,090 46,923,384 60,865,022
£.114,649,963 £.118,912,341 £127,962,763
Deduct Linen Manufactures. 8,172,813 9,156,990 9,576,163
£106,477,150 £109,755,351 £118,386,600

The reports from many quarters state that trade is bad, labour cannot find employment, factories are closed or worked short time; but there is nothing in these figures to illustrate this. Exports of 1866 valued at 189 mill. gegen 166 in 1865, and 1601/2 in 1864. Apart from export of linen and cotton fabrics, the value of the exports during the last 3 year years again singularly similar.

1) Banking et Currency.

  • Bank Act of ’44. p. 189, 194, 195, 198. (Bankrate of 10%) (200. 213–14. 216.[)] „Debats“ on the Act. (244 224) 244. Expansive Clause (247–8) 249. Profits of Panic to Bk.o.E. 216. Govt Debt to Bank o. Engld. a legalised Fraud. (198), (199)
  • Economy of Banknotes (191) Separation of Acceptances from Deposits (247) Abuse and Use of Bank Deposits (216, 217)
  • Bill brokering et Money dealing (252) Limited Liability applied to Banking (224, 225) Rate of Interest (L. Levi) (212–13) Clearing Houses for Banking. 209, 210, 263–4. Demand for Money and Demand for Capital (203)
  • Influence of Weather on Money Market. (230)
  • Commercial Credit and Commercial Debt Insurance (220, 221) Bills of Lading (Schwindel) (241, 242)
  • Fall in Gold, Rise in Prices of Commodities (276)
  • Joint-Stock Banks. London und Westminster. Liabilities und Securities (265)


  • 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