12 January 1867. N. 345.

The Money Market Review, 12. Januar 1867. S. 35/36.
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Proposed Expansive Clause in the Bank Act of 1844.

Economist,  Zusatz von Marx.
under J. Wilson
, antagonist des Bank Act. Then, it „ratted“, became its supporter. Latterly, again backsliding. Globe, after supporting the Act for more than 20 years, has turned against it, demands its repeal. Economist, less courageous, demands expansive clause (so daß minister Chancellor of Exchequer by law ihn suspendiren können). Wants, therefore, partial abrogation of the Act. J. Mills (Manchester) (at meeting of Social Science Congress und Fowler „The Crisis of 1866 verlangen dasselbe. Beide Kerls affirm, that there would be nothing inconsistent with the Act in the existence of a permanent power to abrogate it! in a specific provision for the violation of its principle! Economist says „that power is not contrary to principle unless the suspensions of the Act are so“. A suspension of the law by Ministers is a violation of the law by sufferance, which the Economist himself elsewhere designated as a misdemeanour, although an excusable one. The Bankact has only one essential principlethe limitation of the bankissues to 14 (now 15) millions, except against gold. The „crisis clause“ would abrogate this „sound“ |248 principle in the only case where it can come into play. Ausserdem: The power (known to exist on 11 May 1866, and not preventing the panic) would never be exercised except at the last moment, just to prevent the worst effects of a panic. Nach J. St. Mill die theory und practical arrangements des Bank Act adapted  Zusatz von Marx.
to the case where drain of gold originates in a rise of prices produced by an undue expansion of the currency or credit, but in no other case.

The Money Market Review, 12. Januar 1867. S. 38/39.
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Evidence of John Henry Gurney and Mr. Robert Birnbeck Birkbeck before Vice-Chancellor Malins.

 Zusatz von Marx.
Dieser meek und pious swindler
, J. H. Gurney, admitted vor Gericht, in his evidence the damning fact, viz: that during the whole period von 1861 to the time of transfer no profits whatever were made by the old firm, but, on the contrary, large losses. Practice, nach dieser evidence, of the firm für years, in making up their annual accounts, to add interests upon all debts owing to the firm, bad as well as good good debts. After 1863 this practice discontinued. Balance sheet for 1864 exhibits dead loss of £348,000. This ratio of loss increased in 1865 down to the moment of transfer to the new Co. In 7 months von January to July 1865 (inclusive), balance of losses £295,000, being at the rate of £506,000 p. annum. In this period of 19 months, therefore, the firm was receiving and wasting or sinking irrecoverably the money of their depositors to £643,000. All this elicited during the examination of John Henry Gurney. And 500,000£ goodwill paid by the new firm for this business Zusatz von Marx.

The Money Market Review, 12. Januar 1867. S. 39/40.
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Cotton Market. Past and Present.

Import value of cotton landed last year at Liverpool estimated at more than 80 Mill. £, larger than in any previous year; quantity of cotton manufactured (1866) larger than in any previous year, auch its export. With an import value of more than 80 Mill. £, there were fluctuations in the market price, in the course of a few months, von 40 to 50%, und prices at close of 1866, though firm for the moment, 20 25 to 30% lower than at beginning of 1866. Hence, during that year, prodigious losses und gains of cotton sellers Zusatz von Marx.

Mssrs. Leech, Harrison, and Forwood’s Review of cotton trade in 1866 shows that that year commenced with stock of raw cotton at Liverpool of 402,630 bales, which declined, on 16 March, to 340,250 bales, the minimum of the year, then rose, on 25 May, to 1,205,330 bls, the maximum of the year, and closed at 516,770 bales on 28 Dec. 1866. The course of market values thus described in outline:

Range of Prices in 1866 Middling Orleans, per lb. Fair Dhollerah. Per lb.
Highest, Jan. 5, the first prices of the year 21d. to 211/8d. 183/4d to 187/8d.
Lowest, May 25, when the stock at maximum 131/2d to 135/8 91/2d to 95/8d.
Last, Dec. 28 161/4 to 163/8d. 131/2d to 135/8d.

Quantity of Cotton imported in U. Kingd. in 1866: bales 3,749,041, or 1,556,952,589 lbs, against 2,755,321 bls. in 1865. The increase in 1866 thus about 32%. Of this imported quantity supplied, at a cost to this country, as under:

United States: Bales: 1,156,130 British India. Bls: 1,847,739 Egypt bls: 167,451 Brazil. bls: 407,646 Smyrna bls. 32,770. Peru, Mexico, Westindies 111,820
Un. States: Cost: £35 35 Mill. £ St. India Cost: 33 Mill. £ St. Egypt et Levant. Cost 6,600,000£. Brazil. Cost: 5 Mill. £ St. Westindies etc 21/2 Mill. £ St.
Total Cost: £82,100,000

Home consumption, or quantity of raw cotton delivered from the port of Liverpool to consumers, i.e. manufacturers, in 1866 was 2,436,444 2,436,344 bales, or 46,853 bales per week, against 39,129 in 1865, and 30,822 bales in 1864.

Contrasted, quantities of cotton imported and used for home consumption during the last 7 years (but that of 1864 is omitted, for reasons not given,) stands thus: |249

Imported lbs. Consumed at home lbs
 Marx verwendete die Angaben über die importierte Rohbaumwolle der Jahre 1860 und 1861 in Manuskript II zum zweiten Buch des „Kapital“ (MEGA² II/11. S. 67.38–39) als Indikator für die These, dass „[d]as Jahr 1860 und Theil des Jahrs 1861 [...] bekanntlich die Zenithjahre der englischen Baumwollindustrie [waren]“ (ebenda. S. 67.30–32).
1,429,697,450 1,068,727,600
 Marx verwendete die Angaben über die importierte Rohbaumwolle der Jahre 1860 und 1861 in Manuskript II zum zweiten Buch des „Kapital“ (MEGA² II/11. S. 67.38–39) als Indikator für die These, dass „[d]as Jahr 1860 und Theil des Jahrs 1861 [...] bekanntlich die Zenithjahre der englischen Baumwollindustrie [waren]“ (ebenda. S. 67.30–32).
1,359,823,120 988,051,900
1862 533,223,819 414,905,150
1863 703,306,968 467,183,800
1865 965,727,070 718,428,470
1866 1,356,952,389 915,748,679

One prominent feature in this year: the large export of raw cotton to the Continent. In 1866: 1,136,565 bales, or a weekly average of 21,850 bales, against 890,830 bls in 1865, or 17,100 bls per week on the average.

Exports of manufactured cotton goods from the Un. Kingd. during first 11 months of last 3 years nach den Board of Trade Returns.

1866 2,341,747,710 Yards Piece Goods 126,000,000 Yarns. Lbs.
1865 1,805,814,998 94,000,000
1864 1,617,050,947 69,000,000
Liverpool stock of raw cotton at end of the last 7 years, except 1864. (Bales)
1860. 1861 1862 1863 1865 1866
594,400 bls 699,300 433,900 327,500 405,488 581,570.

Most of our spinners have adopted their machinery to the use of Indian cotton, and not altered it, will not alter it, until the supply of American cotton is proved certain and abundant.

Increasing consumption of raw cotton on Continent. Owing to the low wages there current, continental manufactures enabled to compete successfully with ours, it is said, in many of the coarser classes of cotton goods. Introduce also English machinery on extensive scale into their manufactories, so that feared as competitors in all classes of cotton goods unless „a great change takes place in our labour market“.

The tendency in this country is, and will be, towards dearer labour. The Prices of food, house rent, and indeed of all the necessaries of life increase in this country year by year, and must continue to increase so long as the present rate of production of the precious metals goes on, and so long also as we possess such vast colonial dependencies which, together with the U. St., are bidding treble or double the value for labour which in this country we can afford to pay.

The Money Market Review, 12. Januar 1867. S. 40/41.
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Thomson Hankey: (formerly Governor of B.o.E.)  Titel von Marx notiert in einem Exzerptheft 1878 (IISG, Marx-Engels-Nachlass, Sign. B 148).
„The Principles of Banking, its Utility and Economy; with Remarks on the the Working and Management of the Bank of England[“]. Lond. 1867

 Kommentar von Marx.
Nichts brauchbar hierin als die explanation and description der organisation der different offices der B.o.E.
 Zusammenfassender Kommentar von Marx.
Im Uebrigen Peel man.
He considers Act of ’44 as „perfectly successful“.

Bill and mortgage, sagt Money Market Review, both promises to pay at fixed dates, and both are transferable, though by different modes of transfer. In the one case the debt always attaches to the property or commodity mortgaged, and need not necessarily to be paid at the time fixed; whilst, in case of bill of exchange, the debt is transferred from person to person, though each still remains liable to pay it, at the fixed date.

2) Crisis of 1866. 

  • A) Bank o. England und Act of 44.
    • Reserve of B.o.E. (187) Act Suspension (187, 188) Panic and its Remedy (188) B.o.E. und London Bankers in the Panic (191–2) Times on the Panic (189) Clarendon on the Panic (192)
    • Reduction Bankrate to 8% (Aug. 66) (210–11) to 41/2%. (27 Sept. ’66) (217) Watkin’s Motion, 31 July 66. (203–208) Count out (208) Ministerial Opposition (208–9)
  • B.) Theory of Panic.
    • p. 195, 196, 236, 238–40, 266–7, 267, 278. Glasgow Chamber of Commerce on Banking (Aug. ’66) (p. 210.) Manchester Chamber of Commerce Dec. ’66 (p. 243) Rouen und Liverpool Chambers of Commerce (p. 276, 277)
  • C) Securities (Investments) und Panic:
    • Losses. (193) Pressure and Securities (197)
    • Investor Losses from „Bear“ Frights (190) Bears (197, 198, 199) Bears: Leeman’s Bill (254) Stockexchange 256, 263.
    • Stockmarkets: Week ending May 19, ’66 (190) Week ending 26. May ’66 (193) Losses week ending 29 Sept. ’66 (218, 219)
    • Shares and Dividends (1867) (282) Panic about calls (’67 April.) (263)
    • Foreign Loans and Panic (229) Russian Loan. Nov. ’66 (234–5) Colonial Loans (251)
  • D) Joint Stock Banking und other Cos. Schwindel seit 1865 etc. (respective seit 62).
    • Prospectus und Articles: „Russian Iron Works[“] (lim.) (197) Promoting und Financing. Bernard Salomon Bernard (199, 200) „Humber Iron Works“ (E. Watkin) (126 261–63) City Offices Co. (264) Smith, Knight et Co (lim.) [(]p. 277) Misrepresentation (211) Estates Investments Co (234) Great Yarmouth Railway Hotel Co. (283, 4)
    • Bankrupt Private Concerns converted into Limited Liability Cos. Losses by Shares in Liquidation (217, 218) Directors (194, 195) (Fees 233–4) 254. Railway Dilemma Directors (261) Directors in H. o. Commons (263) Directors und Gellivara Co. (265) Venial Offences und Scapegoats (252)|
    • 286
    • Joint Stock Financing (253)
    • Ditto Management (275, 276) Shares paid to Vendor (276)
    • Increase and Employment of Capital (212)
    • Limited Liability Cos formed since 1865 (275) since May 1866 – about May 67 (284)
    • Drain of Capital for new investments (July ’66). (201)
    • Credit Mobilier of Paris (270 273) Credit Foncier of England (273 270)
    • Joint Stock Banks Transfer of Bank of London to Consolidated Bank (192) Failure of Consolidated Bk. (196)
    • Asiatic Bk. Co et. (lim.) (191)
    • English Joint Stock Bk. (lim) Disclosures (219, 220); ditto Scandals (226, 227)
    • Agra and Masterman (215) Joint Stock Discount Co. 232. (Wilkinson) (250–51)
    • Overend et Gurney (224, 225, 229, 233. (Commercial Morality) 235, 237–38, 242, 243–4) Evidence of J. H. Gurney (248) 250, 251, 253, 254, 255, 258, 259, 260. Directors dieses swindling Concern 
      (263) Commercial Morality, 263. H. o. Lords 270, 271, 272–3
    • Barned’s Bank (245–46, 265–6, 267.)
    • Leeds Banking Co. Conviction of Greenland (253–54) His pardon (267–9)
    • Royal Bank of Liverpool (277, 279)
    • London et Mediterranean Bank (280)
    • European Bk. (281, 282)
  • E.) Railways.
    • Dont pay. (191) Debentures (211, 212) North British (Hudson) (230, 231) (261) Great Eastern (231) Cardigan et Carmarthen (232) Difficulties (232) Lloyd’s Bonds (241) Act of 1866 (244) Consolidation (251–2) London Chatham und Dover (253, 255) Zusammensetzung des Investigation Cosmittees Committees (255)
    • South Eastern Directors (257) Years’ (June ’67) Fall of Railway Property (265)|
  • F) Plethora of Money.
    • How to be Employed? (230) Plethora. (255)
  • G.) Limited Liability Act. of 1862
    • (p. 190, 191)
    • Gerichtssporteln. Parliamentary Committee of Inquiry (255, 256) Liquidators (263) New Act (Amending) of 1867 (270, 270–1, 272) Winding up in Chancery Courts (283)
    • Large uncalled capital in limited liability Cos (232, 254, 263)
    • English Capacity und Blundering (214)


  • 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