Aus:
The Money Market Review, 20. Juli 1867. S. 56/57.
Schließen

„The Financial Lessons of 1866. etc[.] By the City Manager.“ Continued.

Recent disclosures have shown that half of the Railway Cos. in the kingdom have been under the management of grossly incompetent or corrupt boards of directors, whose jobbing and speculations have brought the properties of the shareholders and the securities of their creditors to the verge of extinction. The records of our banking and finance Cos. tell the same story; either the shareholders or the creditors must be ruined; and the question which it shall be, is the knotty question, which the winding up courts are now vainly endeavouring to determine.

The „city manager“ does not seem to recognise that the party who consider considers the Bank Act of 1844 „a monument of human wisdom“ is constituted of a small but active and influential minority of the commercial world, in whose favour, as capitalists and dealers in money, the Act operates most beneficially at the very time when it is operating most disastrously upon the other party, who are dealers in merchandise and manufactures, and constitute the great majority of the commercial community. The „suspension“ of the Bank Act. produced more serious results in 1866, than in 1857 and 1847, because there was a far greater amount of foreign money on deposit in this country. And this amount is yearly increasing.  Kommentar von Marx.
Schließen ⦗Dieß neuer Beweis für Carey, daß das Geld den Punkt sucht, wo rate of interest am niedrigsten. Er war am höchsten in England in den letzten Jahren.⦘

Der „City Manager“ says: The deposits „on call“ or at short notice in the banks of the U.K. amount to 350 Millions £, whilst the total amount of sovereigns in the country estimated at only 120 millions. Nach Returns published by Sir John Lubbock „out of each million of nominal money which passes through the London Bankers Clearing House only £27,710 consists of legal currency; and of this small percentage only the paltry sum of £6,210 consists of coin – the balance, or £21,500, being B.o.E. notes. Thus, of the cheques and other promises to pay which pass through the Clearing House, 2% are represented by the promises to pay of the B.o.E.; and, of all the vast sums of ‚money‘ for which credit is thus daily given and taken, only the fabulously small fractional percentage of six-tenths (of a pound) (also 6/10%) has any real existence. Upon this slender foundation of 12s. for every 100£ St. is the huge fabric of credit built up.[“]

„City Manager“ wants a large increase in the gold Reserves of the B.o.E., wegen den proportionately large drains which must occasionally occur to meet the temporary balances of international indebtedness. Bank soll statt den Gvt. Securities 15 Millions mehr Gold halten.