19 October 1867. N. 385.

The Money Market Review, 19. Oktober 1867. S. 403/404.
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Fall in Value of Gold, Rise in Price of Commodities.

M. Chevalier predicted that „the transition (from fall of gold value) would be an interval painful to pass, and would be marked by innumerable shocks and sufferings“. The value of all properties, he said, „would be subjected to a painful uncertainty and injurious fluctuations. It would be still worse for persons whose incomes consisted of a sum of money fixed in advance. They would live in a perpetual state of trouble, anxiety, and uneasiness“. Er unterstellt stets that gold would fall to half of its recognised value. The fixed income man „would be flung headlong, without rule or measure, down to a lower station, and without the chance of preparation, as it was of the very essence of changes of this kind, subject to so many opposing influences, to pursue an irregular and disorderly course“. His assumption und reasoning equally absurd. Change nothwendig slow und very gradual. Die opposing influences could not but produce compensating circumstances.

The general rise in prices since 1853 is indisputable and now almost universal, and the inference of a corresponding fall of gold is inevitable. If increased supplies of gold accompanied by a corresponding increase in the demand for gold, there would have been no disparity between demand et supply. There would have been no relative increase, no excess of supply over demand. The excess from California and Australia was absorbed in new fields by the enlarged commerce of England, America, and other countries. Then American Civil War. The war expenditure absorbed the greenbacks. Sobald England gold received from Australia et California, passed over to France und other countries, in exchange for silver, transmitted to India in payment for cotton und other commodities. Durch dieß enlargement of trade rise in wages und dadurch allmählig in prices of commodities.

The Money Market Review, 19. Oktober 1867. S. 404/405.
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The Chambers of Commerce of Rouen and Liverpool on Commercial Crise.  Zusatz von Marx.
(Conversion of productive Capital in Bankers Capital)

The Rouen Chamber of Commerce anxious about the commercial crisis which for some time past pressing upon industry of great part of France. Its President wrote to President of the Liverpool Chamber of Commerce, on their opinions. Rawlins, the President, answers in name der Liverpooler Handelskammer: (10 Oct. 1867): Common Causes in France und England, nach Rawlinson Rawlins: 1) American War, 2) Protective duties of U. St. 3) Disorganisation in Southern parts of U. St. 4) Unsettled State of Europe, annual cost of armies about 80 mill. £ St. jährlich. Unter den spezifisch englischen Ursachen führt Rawlins an: 1) Premature investment von 1862–1866 in railway enterprises, not now, nor probably für many years, giving revenues to shareholders; 2) Excessive Speculation and Overtrading, especially of late years. Traders who conduct their business disproportionately on borrowed capital are, in the event of a small depreciation in prices or pressure in the money market, compelled to suspend payment. 3) Reckless investment of Capital in Jt. Stock Cos. 4) Collapse of several Banks. 5) These causes aggravated by 2 deficient harvests, enhancing price of wheat by 50% over average of the three previous years. Those who conduct their business disproportionately on borrowed capital, sagt Money Market Review , »constitute the great mass of English traders, manufacturers, shopkeepers[«]. Three months of 10% Discount Minimum, for them 20 or 30%, equal to 2, 3, or 4 × the profits they were making, hat diese Hände ruinirt. Viele dieser Kerls so ruinirt. All their accumulated wealth has been converted into money capital, and is in the hands of the banker, bill discounter, or other moneyed capitalist. Henceforth the latter is the owner and possessor of it; but he is willing to lend if the former classes are willing to borrow, and to become „traders upon borrowed capital“. On the first hint of distrust, capital seeks to fly back to its owner und dann new ruin unter jenen Traders und creation, for next period, of more traders upon borrowed capital.|


The Money Market Review, 19. Oktober 1867. S. 407/408.
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 Titel von Marx notiert in „Heft 3. 1868“ der „Hefte zur Agrikultur“ (MEGA² IV/18. S. 588.9–10).
A. King: „Smith, Knight et Co. lim.“ Lond. 1867.

Late Co. of Smith, Knight, et Co, insolvent, with unlimited prospect before them of insolvency, formed this limited Co., in the first instance, to extricate themselves, und, in the second, to pay their creditors Zusatz von Marx.
The prospectus stated that business valuable, that the vendors required bonus as the selling value, including plant, of £230,000 in cash und shares, und that capital required to conduct the business of 2 Mill. £. St., in a first issue of 40,000 shares of £50 each. Shares came out at premium, i.e. demand for these 40,000 shares seemed larger than their supply. For a time this alleged value seemed real. In Nov. 1864 first dividend of 5% paid on account, d.h. ohne Rechnungsablage. April, 1865, statement of profit und loss rendered, und dividend declared of 8% p.a. (mit Abzug der „on account“ gezahlten 5%.) Zugleich aber call for £5 per share. Price der shares fell to something like nil, even mit der addition of £5 paid on them. Shareholders appointed Committee of Investigation; this Committee reported in Oct. 1865 that the good will etc, for which £230,000 paid in cash und shares, was of no value, that the contracts were burdensome rather than profitable. Directors gave flat contradiction. Contracts taken over showed all „an estimated profit“; the only contract then completed exhibited profit of 15%; they could, however, not obtain payment for work performed and materials supplied for the Royal Sardinian Railway, dieß chief cause des call £5 (additional). But concern, they said, promising. At meeting November 1865 embarrassment officially admitted; new directors were appointed, darunter 2 members of Parliament. February, 1866, 2 further calls announced – viz. £5 p. share, payable on April 10, und £2 in July – making in all £17 p. share paid. March 1866 officially notified that the £2 call coming due in July would be the last call made. May 1866, directors issued a Report stating that the Co. had undertaken no new works, and contracts in hand were approaching completion; bonds received from the Royal Sardinian Railway Co had been offered to the Creditors, assets and liabilities were alike, about £800,000 etc. In Oct. 1866 A. J. King filed a bill in Chancery against the Directors, and at meeting of shareholders in Nov. 1866 a Defence Committee formed.

Another call of £5 ordered by the Liquidators of the Co, making 25£ p. share, or one million called up on the 40,000 shares. King states, that prior to this call, only £367,000 were paid up, that the present call will make the total £400,000 instead of a million. In brief, it comes to this, that the majority of the shareholders cannot or will not pay calls, and that minority will have to pay all. Trotzdem creditors have only been paid 2sh. in £. King adds that there were claims of creditors in Sept. 1865 which, with interest, amounting to £376,947 would represent now nearly the same sum. So bulk of £50 p. share will be called upon by the liquidators, so that shareholders will lose every farthing of their money, and even the creditors not fully paid. No farthing left for the shareholders.

King asserts that the register (of shareholders[)] is rotten, and that 5/6 of the names enrolled are owned by men of straw who are merely nominees of the vendors and the Syndicate, nämlich a number of persons interested to combine in order to support the price of the shares in the market, subscribing a common fund for the purpose; hence the money said to be paid by the shareholders never paid at all. This proved by the nonpayment of calls. He alleges that no less than £72,000 spent as „secret service money“ostensibly given as commission on certain contracts. King gives the names of some of these recipients. Entries in the books, or in the dates of the invoices, falsified by a clerk who was discharged; dieser jedoch mere tool, acted simply at the direction of his employers.


  • 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