[Auszüge aus The Money
Market Review, 19. Mai 1866 bis 28. Dezember 1867]
Money Market. 1866. Von 16 May an.
(Bank of England)
Saving Banks Deposits also in the Public Deposits.
State 14 16 May.
|Circulation Issue||Verglichen mit letzter Woche.|
|Reserve in Notes und Cash||£.1,202,810||Decrease||£4,608,935|
|Gvt. Securities in Banking Dept.||£.10,837,056||Decrease:||£57,198|
|Private Securities in Banking Department||£.30,943,259||Increase:||10,099,042.|
|Coin and Bullion (Issue department) (no silver)||£11,851,825||Decrease (with coin in Banking department)||832,335|
|Coin and Bullion In both departments.||£12,323,805|
The Money Market Review, 19. Mai 1866. S. 670.
Schließen As a great deal of this borrowing (£.10,099,042 increase in Private Securities) was merely precautionary, £.5,105,135 has been added to the private deposits. The notes withdrawn mostly hoarded by Country Bankers etc. The £832,335 of coin and bullion withdrawn must have been taken away chiefly by provincial, Scotch, and Irish bankers, as a measure of precaution.
The Money Market Review, 19. Mai 1866. S. 672.
Schließen Bankrutte in Liverpool unter cotton merchants und shipowners.
B.o.E. Return. 23 May
|Gold and Silver coin.||557,351||Increase.||85,371|
|Coin and Bullion in Both Dpts.||11,857,786||Decrease:||466,019|
|Gvt. securities in Banking Dpt.||10,837,056||No change|
|B.o.E. Bk o E.||B.o.F.|
|Coin and Bullion||11,857,786||21,465,500|
|Minimum Rate of Discount.||10%||4%.|
The Money Market Review, 26. Mai 1866. S. 700.
Schließen Withdrawal of gold from B.o.E., for exportation to Continent, continue upon large scales; the amount taken yesterday was £178,000, of which £128,000 bars, rest sovereigns.|
- Stoppage of McCulloch, John et Co, Liverpool. Liabilities nearly 3/4 of million. Result of the estate depends upon the realisation of cotton, the market for which in a very unfavourable State. Principal creditors: the Anglo-Indian banks.
- Luckie, brothers (Fenchurchstreet) stopped. Liab. about 70,000l.
- Gellatly, Hankey, Sewell, mercantile and shipping firm.
- Robinson, Coryton, and Co, private bankers, of Manchester. Their difficulties ascribed to stoppage der European Bank, which acted as their London agents.
- Kynaston, Sutherland, and Co, colonial brokers, also failed. About £100,000 liab.
- Principal Liverpool failures of the past week, in addition to that of Messrs. Fernie, comprises Holderness and Chilton (iron and wood shipbuilders), Boult, English, and Brandon, merchants, liabilities in each case large. Duff, Cadell et Co, merchants and shipowners, Giannacopulo und Cochilani, commission merchants, also suspended.
- Stoppage of „European Bank“; Stoppage of the „New Zealand Banking Corporation“.
The Money Market Review, 26. Mai 1866. S. 701.
Schließen 24 May.
Bank o. England. 30 May 1866.
|Gold and Silver Coin.||445,570 444,570||Decrease||£.528,236|
|Gvt. Securities in Banking Department||10,864,638||Increase||27,582|
|Private Securities in Banking Department||33,447,463||Increase||2,397,057|
|Coin and Bullion in both Departments||11,878,775||Increase||20,989|
The Money Market Review, 2. Juni 1866. S. 732.
Schließen Increase in advances: 2,397,057, aber nur precautionary; daher increase in private Deposits: £1,676,163. Since the date of the present accounts £592,000 in gold sent into the Bank. Great Arrivals of Specie from U. St.
|Increase in coin and bullion||£.1,060,000|
|Increase in loans (bills)||£.2,026,000|
|Minimum rate of discount||4%|
The Money Market Review, 2. Juni 1866. S. 733.
Schließen Failures: Enthoven et Son (General Merchants), chiefly in the Metal Trade (Offices in Moorgate Street, London, und establishment at the lead works, Upper Ordnance Wharf, Rotherhithe str.) liabilities an 270,000l. Losses through Pinto, Perez et Co et Barned’s Bank. 30 May. Boult, English, Brandon, Liverpool, pay 9s. in £. Stoppage of the Consolidated, 27 May. Winding up Petitions für Masse of limited Liabilities Cos.
18 July. 1866.
|Gold Coin and Bullion in Issuing department||£.12,919,835.|
|Gold and Silver Coin||726,140||Decrease||576,045|
|Gvt. Securities (Banking Department)||10,028,123||Decrease||250,000|
The Money Market Review, 21. Juli 1866. S. 81.
Schließen Failures etc[:] Netherton Iron Co. (Birmingham.) liabilities about £20,000. Carleton Brothers, Wholesale Warehousemen (City) their acceptances returned. Stoppage of Birmingham Banking Co (14 July) (Gross mismanagement.[)] Stoppage of Preston Banking Co. (19 July) Liabilities about 1 Mill. l. the difficulties of the undertaking caused by large advances to a few houses, including about £300,000 to a firm of cotton spinners at Blackburn. The Capital is £200,000, in 2000 shares, of £100 each, of which £100,000 is paid up. Reservefund 65,600£, and 8 branches, viz. at Lancaster, Ormskirk, Southport, Blackburn, Garstang, Blackpool, Lytham, Fleetwood. At a recent meeting a dividend and bonus equal to 20% p.a. declared. The bank had no note issue of its own, but issued B.o.E. notes.
The Money Market Review, 21. Juli 1866. S. 67/68.
Money Market and Bank
Continental drain des Bullion. Every bill as it falls due to Continental holders is remitted in coin or bullion. The difficulty of the past 2 months has been much aggravated by the distrust on the Continent of English bills of Exchange.
No drain now for East (India and China). Hitherto, during this (German) War, money has been taken from us, and the Continent, contrary to all previous experience, wants, at a time of great disturbance, not only all the money usually deposited here but much more. About this fact there can be no difference of opinion. Continental money in British hands is now being generally withdrawn. In previous periods of Continental disturbance it was not so; nay, it has always increased. Our Bankrate 10%, in France 4 and less; und everywhere on Continent lower than in England. Continental league, though at war, and with money actually comparatively cheap, draws money from peaceful England, where the price of money is 10%! Dieß suits not the Overstone Theory. „A high rate of interest means bad security“ sagte Wellington, und so sagt Continent jezt von England. Speculation here is utterly crushed, and the alarm signal of 10% is still up.
A ruinous state of interest scares away both notes (durch die Countrybankers) and gold from the B.o.E.
|Bank o. E.||10%||Coin and Bullion||£13,645,857|
|B.o.F.||4%||Coin and Bullion||26,520,000|
25. July. 1866.
|Gold et Silver Coin||823,704||Incr.||Increase||229,144|
The Money Market Review. 28. Juli 1866. S. 113.
Schließen Mercantile Embarrassments: Capt. Bennitt (Bankrupt) Oldbury Furnaces (near Birmingham) Suspension of Pile, Spence et Co (Lim.) shipbuilders, of West Hartlepool. »The Co. was formed about 12 months ago, for the purchase of the extensive iron shipbuilding yards, graving docks etc, of John Pile and Joseph Spence, at West Hartlepool, and for carrying on the line of 7 steamers owned by that firm, and running between West Hartlepool and the various ports of Northern Europe.[«] Nominal Capital der Co £500,000, shares 20£, 10£ paid up, and a further call of £3 p. share was called for a few weeks ago. Chairman of the Co was: James Hartley, M.P., for Sunderland.
The Money Market Review, 28. Juli 1866. S. 101/102.
Progress of the London and Westminster Bank since 1862.
|Liabilities to the Public.||Liabilities to Shareholders||Assets.|
|Half Year Ending||Acceptances||Deposits payable on demand||Total. Of Acceptances und Deposits.||Paidup Capital (1 Mill.) and Reservefunds||Balance carried over||Bills discounted Loans et other Securities||Gvt Stock. Exchequer Bills India Bonds||Cash on hand and at Bk. o. England.|
The capital having remained 1 million since 1849, the balance is the amount of the reserve.
In diesem lezten half year (1866) Deposits increased by £1,799,641; aber the Bank cannot prudently extend its assistance to its customs, so long as the distrust exists; consequently the increase in the deposits is almost exactly represented by the increase of £1,786,626 in the cash unemployed.
|Half Year ended:||June 1862||
|June 1863||Dec. 1863||June 1864||Dec. 1864||June 1865||Dec. 1865||June 1866.|
|Net Profits p. annum||24.31||22.18||25.98||29.56||46.81||47.68||30.30||36.47||50.16|
|Dividends to shareholders p. an.||22||25||30||30||28|
Net Profits for the Panic Half Year (1866) 250,813l., exceed 1/4 mill. £. St., or more than 50% p. annum. Bankrate Minimum Discount during this whole period, on an average maintained at 8%.
Bank o. E.
1 August 1866.
|Gold and Silver Coin||861,000|
|Coin and Bullion in both departments||13,793,340||Increase||76,511|
|Total Reserve in Banking Department.||3,273,390||Decrease||180,349|
The Money Market Review, 4. August 1866. S. 146.
Schließen Rate for goodbills 8 to 9%, 1 to 2% below the B.o.E. minimum. Continued demand on Continental account for bills of the very best class at 61/2 to 7%. Diminution in demand for gold for export, no demand for silver for the East.
- Failure of Edward Tiernan, tea broker, (Tower Street), owing to losses in tea and bad debts. Liab. about £30,000
- Failure of 2 unimportant private banks announced on 31 July: Kennedy et Co (Dublin), G. W. Hall of Congleton, Cheshire. None had note issues.
- 3 August: Stoppage of David Law (firm of Eddington and Sons, iron founders et engineers, Glasgow. Liab. £232,000. Stoppage caused by suspension of M.’Ewen and Bryson, on whose estate D. Law ranks for £.79,000.
The Money Market Review, 4. August 1866. S. 147.
Schließen Mercantile Embarrassments:
The Money Market Review, 11. August 1866. S. 167.
France and Bank o.
E. (8 August)
Last year, when Bank of F. held 131/2 mill., as the B.o.E. now, it reduced its rate from 41/2 to 4%. As to „Reserve“, the B.o.F. scouts the absurd phantom. Minimum Rate of Discount der B.o.F. jezt 31/2%.
|Bank o. England.||Bk.o.F.|
|Decrease of coin and bullion: £170,911 Rate Minimum 10%.||Increase in coin and Bullion £744,000 Minimum rate 31/2%.|
|Stock of Coin and Bullion in B. o. England: £13,612,429. In Bk.o.F. 29,019,037. Zusammen both: £42,641,468.|
Decrease in loans (Private Securities) £410,813 in Bank o. E. und in B.o.F. £.410,000. Both banks are therefore, losing Business at their respective rates of discount.
The Money Market Review, 25. August 1866. S. 227.
Privileges of the B. o. England, and its
Tendency of Legislation to make B.o.E. more and more a Gvt Bank; its notes are legal tender, its stock is alone put on the same footing as Gvt. funds with regard to the investment of trust moneys, and, from time to time, it has received assistance from the State when the money in its till insufficient for the wants of the day. Of its „private deposits“ at least 5 Mill. bankers’ balances.
|Rate of Discount||Public Deposits £.||Private Dpts. £.||Total. £.||Reserve of Notes £.|
|1846. Aug. 29||31/2 to 3%.||7,142,000||9,161,000||16,303,000||£.9,449,000|
|1847. Jan. 16||3 to 31/2||5,034,000||10,339,000||15,373,000||6,545,000|
|1848. Oct. 28||31/2 to 3||2,619,000||10,921,000||13,540,000||8,018,000|
|1853. June 4.||3 to 31/2||4,635,000||12,902,000||17,537,000||8,367,000|
|1865. June 17.||31/2 to 3||8,802,000||12,935,000||21,737,000||9,012,000|
|1865. July 29.||3 to 31/2||4,770,000||15,939,000||20,709,000||6,181,000|
In 1846 and 1848 rate not reduced till reserve more than 1/2 the liabilities[,] in 1865 reduced, when reserve considerably below that amount, and kept there till reserve hardly more than 2/7 of liabilities.|
B.o.E. 8 Aug. 1866.
|Coin et Bullion in both Departments.||13,622,429||Decrease||170,311|
|Total Reserve in Banking Department.||3,580,229||Increase||306,839|
The Money Market Review, 11. August 1866. S. 176.
Schließen The actual purchases of gold and withdrawals for exportation were on balance only £50,000 against the Bank, and the further decrease therefore attributable to the absorption of coin for the harvest.
- Romanjee Framjee Cama et Co, East India merchants. Liab. about £250,000. Cause assigned failure of remittances. Large losses in cotton und share speculations.
- G. Evans, Evelyn Iron Foundry, New port. Heavy losses und the high rate of discount.
The Money Market Review, 11. August 1866. S. 177.
Schließen Mercantile Embarrassments:
Banks of England and France. (August und Sept.
|B.o.E. Week ending 18 August.||Increase of Coin et Bullion £.528,527.||Decrease in Discounts: 932,238.||Decrease in Notes with Public: 502,110||Minimum Rate of Discount 8%|
|Bank o. France:||Increase Coin et bullion £213,000||Decrease in Discounts. 1,080,000.||Decrease in Notes mit Public 445,000||Minimum Rate o. Discount, 31/2%|
|Stock of Coin and Bullion. B.o.E. £14,150,956 B.o.F. 29,234,000. Together: £43,384,956|
|Week ending 25. August.||Bank of England||Bank of France.|
|1) Coin and Bullion:||Increase:||£621,264||Increase||613,333|
|2) Discounts and Loans.||Decrease.||336,159||Decrease||682,000|
|3) Minimum rate of Discount.||7%||31/2%|
|4) Notes mit Public||Decrease||357,975||120,000|
|5) Stock of Coin and Bullion||£.14,772,220||29,847,033||Zusammen: £44,619,253.|
|Week ending 1 September 1866|
|1) Coin and Bullion||Increase||£1,059,800||Incr.||£40,000|
|2) Discounts (Loans)||Decrease.||950,674||Increase||768,000|
|3) Minimum Rate o. Discount.||6%||3%|
|4) Notes mit Public||Decrease||283,605||Increase||533,200|
|5) Stock of Coin and Bullion||£.15,832,020||29,803,000||Zusammen: £45,635,020.|
|Week ending 8 Sept. 1866|
|1) Coin and Bullion||Increase||£363,192||Incr.||£72,000|
|2) Discounts (Loans)||Decrease.||711,697||Decr.||1,720,000|
|3) Minimum Rate o. Discount.||5%||3%|
|4) Notes mit Public||Increase||322,735||920,000|
|5) Stock of Coin and Bullion||£16,195,212||29,876,779||Zusammen £46,071,991.|
The Money Market Review, 25. August 1866. S. 219.
Schließen The decrease in the rate of Discount (B.o.E.) from 10 to 7% (to 8% on 16 Aug. and to 7% on 23 Aug.) accompanied by large import of precious metals, steady Continental exchanges, decrease in the note circulation, large influx of specie and bullion into the B.o.E.|
|B.o.E. 15 Aug. 1866.||B.o.E. 22 Aug. 1866.|
|Circulating Issue||£.28,151,595||Increase. £376,335||£.28,690,635||Increase £.539,040|
|Circulation Active||24,540,090||Decrease 502,110||24,182,115||Decrease 357,975|
|Reserve||Notes||£.3,611,505||Increase 878,445||4,508,520||Increase 897,015|
|Total Reserve||4,610,866||Increase 1,030,637.||5,590,105||Increase 979,239|
|Public Deposits||3,353,525||Increase 193,069||3,411,639||Increase 58,114|
|Private Deposits||18,125,280||Increase 465,036||18,763,474||Increase 638,194|
|Public Securities||10,711,723||Increase 633,600||10,711,723||No change.|
|Private Securities||25,224,317||Decrease 932,238||24,888,158||Decrease 336,159|
|Coin and Bullion in both Departments.||14,150,956||Increase 528,527.||14,772,220||Increase 621,264.|
The Money Market Review, 18. August 1866. S. 202.
Schließen The amount of the increase in bullion shows that coin arriving back from the country, the actual sum sent in from abroad being £361,000.
- Failure of W. Hopwood and Son, Spinners and manufacturers of Burnley, liab. about 70,000l.
- Belfast, stoppage of firm in flaxtrade mit liab. of 40,000.
- Birmingham failure of W. Bates, ironmaster, of Tunstall, liab. £100,000.; also suspension of Brook mill Co.
The Money Market Review, 18. August 1866. S. 203.
Schließen Mercantile Embarrassments:
The Money Market Review, 25. August 1866. S. 231
Schließen Mercantile Embarrassments. Younghusband and Co, Australian trade. Ferner: Failure of Walley et Co, cotton manufacturers, of Blackburn.
|Week ending 15 Sept.||Week ending 22 Sept. 1866||Week ending 29 Sept. ’66||Week ending Oct. 6||Week ending 20 Oct. ’66.|
|B.o.E.||B.o.F.||B.o.E.||B.o.F.||B.o.E.||B.o.F.||B.o.E.||B. o. France||B.o.E.||B.o.F.|
|1) Coin et bullion||Decrease £220,435||D. 520,000||Increase 248,739||I. 236,000||I. 505,746||D. 19,271||I. £149,875||D. £953,970||D. 334,143||D. 630,000|
|2) Discounts (Loans)||D. 743,846||I. 920,000||Summa: Other securities: 22,123,554£||D. 358,387||D. 104,000||all loans: 24,220,513.||D. 371,600||234,142||Bills etc Summe: 23,769,503||I. 1,189,359||I. 1,015,159||D. 904,564||I. 467,000|
|3) Minimum Rate o. Discount||5%||3%||5%||3%||41/2||3%||41/2||3%||41/2||3%|
|4) Notes mit Public.||D. 749,190||D. 280,000||155,355||D. 320,000||D. 267,214 267,035||D. 267,214||Notes with Public 29,097,508||I. 1,285,965||I. 1,748,586||I. 113,370||I. 140,000|
|5) Stock o. Coin und Bullion.||15,974,777||29,356,720.||Zusammen 45,331,497.||16,223,516||37,579,450 29,589,720||Zus. £60,896,150 £45,813,236||16,729,262||29,097,508||Zus. £45,521,457 £45,826,767||16,879,137||£28,143,335||Zus. £45,022,672||16,133,363||26,620,500||Zus. 42,753,863|
|Week ending 27 October||Week ending October 31 13||Week ending November 10||Week ending Nov. 17.||Week ending Nov. 24.||Week ending 1 December.|
|1) Coin et Bullion.||I. £423,995||D. 306,640||D. 411,631||D. 893,000||I. £168,101||D. 148,000||I. 253,001||D. 132,000||I. 608,307||I. 564,000||I. 422,656||I. 712,000|
|2) Discounts (Loans)||D. 691,799||I. 448,000||D. 791,763||I. 150,000||D. 748,467||I. 360,000||D. 269,158||I. 680,000||I. 123,548||D. 1,380,000||I. 1227||I. 893,500|
|3) Minimum Rate of Discount.||41/2||3%||41/2||3%||4%||3%||4%||3%||4%||3%||4%||3%|
|4) Notes with Public||D. 368,875||D. 666,640||D. 362,465.||D. 356,000||D. 249,125||D. 480,000||D. 284,485||I. 320,000||D. 332,530||D. 224,000||D. 457,565||I. 470,000|
|5) Stock o. Coin and Bullion||16,377,358||26,310,000||Zus. £42,687,500||16,467,506||27,250,535.||Zus. £43,718,041||16,891,606||£27,102,535||17,144,607||£25,460,000||17,752,914||26,024,000||18,175,570||26,736,000|
|Week ending 8. December.||Week ending 15 December||Week ending 22 December||Week ending 29 December 1866.|
|1) Coin et Bullion||I. 61,474||I. 500,000||I. 314,427||I. 526,000||I. 264,243||I. 707,000||I. 432,145||I. 164,400|
|2) Discounts (Loans)||I. 209,736||D. 1,560,000||I. 240,997||I. 267,000||I. 188,461||I. 316,000||I. 416,054||I. 392,000|
|3) Min. Rate of Discount.||4%||3%||4%||3%||31/2||3%||31/2||3%|
|4) Notes with Public.||I. 226,425||D. 600,000||D. 619,380||D. 186,500||I. 6,690||D. 200,000||D. 167,120||D. 460,000|
|5) Stock o. Coin et Bullion.||18,237,044||18,797,044||18,551,471||27,708,895||Zus. £46,255,456||18,815,714||28,411,605||Zus. 47,227,319||£19,247859||28,579,600||Zus. £47,827,459.||
|Sollte vor der vorigen
Rubrik stehn. Week ending
|1) Circulation issued||£29,732,115||I. 41,480||30,098,390||I. 366,275||29,893,175||D. 205,215||30,158,035||I. 264,860||30,636,110||I. 478,075||30,905,910||I. 269,800||30,471,740||D. 434,170||30,419,540||I. 288,095||30,131,445||D. 340,295|
|2) Circulation Active.||23,898,510||Decr. 283,605||24,221,245||I. 322,735||23,472,055||D. 749,190||23,316,700||D. 155,355||23,049,665||D. 267,035||24,335,630||I. 1,285,965||23,973,165||D. 362,465||23,717,660||D. 968,875 368,875||24,086,585||I. 113,370|
|4) Reserve.||Notes.||5,833,605||Incr. 1,325,085||5,877,145||I. 43,540||6,421,120||I. 543,975||6,841,335||I. 420,215||7,586,445||I. 745,110||6,570,280||D. 1,016,165||6,498,575||D. 71,705||6,701,880||I. 656,970||6,044,910||D. 453,665|
|5) Total Reserve.||6,933,510||I. 1,343,415||6,973,967||I. 40,457||7,502,722||I. 528,755||7,906,816||I. 404,094||8,679,597||I. 772,781||7,543,507||D. 1,136,090||7,494,341||D. 49,166||7,659,689||I. 612,870||7,046,828||D. 447,513|
|6) Public Deposits||4,137,048.||I. 725,409||4,778,487||I. 641,439||5,184,758||I. 406,271||5,551,717||I. 366,959||6,389,183||I. 837,466||6,169,451||D. 219,732||6,266,199||I. 96,748||3,218,291||D. 174,691||3,392,982||D. 2,873,217|
|7) Private Dpts.||18,473,050||D. 290,424||17,462,300||I. 1,010,750||17,308,397||D. 153,903||16,921,755||D. 386,642||17,023,547||I. 101,792||17,209,685||I. 186,138||17,454,673||I. 244,988||18,764,056||D. 14,467||18,778,523||I. 1,323,850|
|8) Public Securities.||10,711,723||No change.||11,227,023||I. 515,300||11,711,723||I. 489,700||11,711,723||No change.||12,219,428||I. 507,705||12,219,043||D. 385||12,419,043||I. 200,000||12,191,426||D. 100,000||12,291,426||D. 127,617|
|9) Private Securities.||23,937,484||D. 950,674||23,225,787||D. 711,697||22,481,941||D. 743,846||22,123,554||D. 358,387||21,751,954||D. 371,600||22,941,313||I. 1,189,359||22,149,550||D. 791,763||20,553,187||D. 691,799||21,244,986||D. 904,564|
|10) Coin et Bullion in both Departments.||15,832,020||I. 1,059,800||16,195,212||I. 963,192||15,974,777||D. 220,435||16,223,516||I. 248,739||16,729,262||I. 505,746||16,879,137||I. 149,875||16,467,506||D. 411,631||16,377,358||I. 243,995||16,133,363||D. 334,143|
Week ending 1st Sept.
The Money Market Review, 1. September 1866. S. 247.
Schließen Shipments of Gold to New York continue, and 31 Aug. £150,000 taken from the Bank for remittance to that port, while about the same amount was sent into the Bank. There is at present no demand for bullion for any other quarter.
The Money Market Review, 1. September 1866. S. 261.
Schließen Failure of a Broker on Stock Exchange, caused by expansive operations for a fall in British Railway Securities. Wolverhampton: J. B. Dickinson, iron masters, offers 10s. in £, paying in instalments from October (1866) bis December (1867).
Week ending 8 Sept:
The Money Market Review, 8. September 1866. S. 280.
Schließen Yesterday demand for money active, owing to the extent to which bills had been held back in anticipation of reduction of Bankrate. Again £288,000 in gold taken from the Bank in gold for New York; no compensating influx from other quarters.
Week ending 15 Sept.
The Money Market Review, 15. September 1866. S. 312.
Schließen With diminution in bullion, large diminution in active circulation of the B.o.E., amounting to 3/4 of a million. Daher, daß country bankers, who during the recent crisis crammed their tills with B.o.E. notes, are now sending them back to B.o.E. Dieß besonders heavy notes of £100 and upwards. Bk.o.E. has während der week parted mit £262,000 in gold, sent chiefly to the U. St.; only a small portion of this decline has made up through reflux of coin from the internal circulation.
Week ending 22 September.
The Money Market Review, 22. September 1866. S. 327.
Schließen On 21 Sept. 50,000£ in gold taken out for New York, but same amount received from Continent, ausser £5000 in bars. Zugleich, trotz des gold drain nach U. St., gold shipped from New York to England etc.
The Money Market Review, 22. September 1866. S. 336/337.
Schließen Mercantile Embarrassments: Failure of the great native speculator, Premchund Roychund (Bombay where he was director of a bank.) Liabilities 2 or 3 mill. £. St. Failure of the Bank of Upper Canada, established 1822.
Week ending 6 October.
The Money Market Review, 6. Oktober 1866. S. 390.
Schließen Increase of £1,189,359 in the advances on private securities; this movement usual in the closing week of each quarter. The sudden demand has caused diminution of £1,136,090 in the Reserve; but in corresponding week 1865 it was nearly 2 × as great, and at beginning of Oct. 1864, it was about £1,300,000. Decrease of £219,732 in the Gvt. Deposits consequent to the payment of salaries and other quarterly accounts. As usual at this season, a large amount of coin has been transmitted to the provinces, and, consequently, although £.509,000 newly imported gold sent into the Bank during the week, increase of coin and bullion only £149,875. A very large amount of Indian bills fell due on Saturday last, gave life to the discount market.
The Money Market Review, 6. Oktober 1866. S. 391.
Schließen Failure of Asiatic Banking Co (announced durch telegrams on 28 Sept.) Agencies and branches at Bombay, Calcutta, Madras, Kandy, Colombo, Penang, Shanghai, Singapore, Hong Kong, and Melbourne; headoffice at London; liabilities expected to 31/2 Mill. £. St. Einer der Hauptshareholders und sehr connected mit der bank since its foundation der oben sub 22 Sept. für 2 or 3 mill. fallirte Roychund. On the establishment at Bombay of the Back Bay Reclamation Co., of which Roychund was the chief promoter, 500 shares offered to Gvt., but refused by them. These shares subsequently sold by auction and realised in the mania the almost incredible sum of 1 Mill. £ profit, lent to the Asiatic Banking Corporation by the Reclamation Co., to be repaid on July next. The position of the bank weeks weak for months past, owing to a constant run upon its resources at Bombay, promoted by the suspension of Roychund. Connection of this individual with all sharespeculations of Bombay well known. Eine Quelle für diesen Satz konnte nicht ermittelt werden.
Schließen Fall in cotton and in the value of „Back Bay Shares“ had great effect.
Week ending 20 October:
The Money Market Review, 20. Oktober 1866. S. 446.
Schließen The payment of the Dividends began on Saturday. The draught on the Gvt. Deposits largely made up to the Bank by the influence of private deposits, and the diminution in the advances on private securities; yet decrease in Reserve of £447,513. The coin and bullion present likewise a decrease of £334,143, chiefly caused by withdrawals of coin by the receivers of the dividends, since the import and export transactions of the week, resulted, on balance, in a withdrawal of only £60,000 from the Bank. Gold withdrawn for Alexandria to pay cotton. An unusually large proportion of the funds (paid in dividends by the Bank) is on the market seeking temporary employment, in consequence of the quarterly advances from the Bank during the last 2 or 3 weeks, and now repayable to that establishment, having been much below the average.
The Money Market Review, 20. Oktober 1866. S. 447.
Schließen Failures announced from Melbourne.
Week ending 27 Oct.
The Money Market Review, 27. Oktober 1866. S. 475.
Schließen Failures: Preston: Wilding and Strachan, spinners and manufacturers. Birmingham. G. Pell, Heyford Ironworks, liab. £.160,00 £.160,000.|
The Money Market Review, 8. September 1866. S. 279/280.
Bankminimum, Prices of Wheat and Cotton.
Prices of 1847, 1856 und 1866.
|Bk. Minimum Dsct. Rate.||Average Price of Wheat per qr.||Average Price of cotton per lb.|
|1845||21/2 to 31/2||50|
|1846||31/2 … 3||54|
|1847 – Panic||3 … 8||68s.|
|1848||5 … 3||50|
|1849||3 … 21/2||43|
|1850||21/2 … 3||40|
|1852||3 … 2||40|
|1853||2 … 5||54|
|1854||5 … 51/2||72|
|1855||31/2 … 6||74|
|1856||41/2 … 7||68|
|1857 – Panic||51/2 … 10||56||6d to 7d.|
|1858||10 … 21/2||43||6|
|1859||21/2 … 41/2||42||61/2|
|1860||21/2 … 6||53||6|
|1861||8 … 3||56||71/2|
|1862||3 … 2||56||1s. 2d.|
|1863||3 … 8||44||1s. 8d.|
|1864||6 … 9||37||1s. 10d.|
|1865||3 … 7||39||1s. 4d.|
|1866 – Panic||10% (3 months, reduced to 5% in a month.)|
The Money Market Review, 8. September 1866. S. 282/283.
Profits of B. o. England. for 22 years.
Hubbard’s Reply to Watkin that „while borrowers have suffered, that lenders had gained, and that as both are citizens of this country, the gain, as well as the loss, would be felt throughout the empire“ would also justify the practice of the usurer who trades on the weakness and folly of profligates by discounting their acceptances at 50 and 60%. The real question, whether it is proper that those who, as directors of the B.o.E., manifestly make large profits out of a time of panic, should be left to |12 regulate matters the decision of which affects so materially the duration and even the creation of panics.
|Half Year ending.||Amount of Rest or Surplus Profits.||Dividends paid.||
Rate Discount Minimum
|Number of Changes||Addition made to Rest in the last week of each half year|
|Amount.||Rate p. annum.|
|Saturday||£||£||P.Ct.||PCt.||Number of Changes||£|
|Sept. 7, 1844||3,564,729||509,355||7||21/2||1|
|March 1, 1845||3,575,172||509,355||7||―||―||322,891|
|August 30, 1845||3,588,888||509,355||7||―||―||239,606|
|Feb. 28, 1846||3,689,430||509,355||7||3, 31/2||2||212,414|
|Sept. 5, 1846||3,864,479||509,355||7||3||1||330,109|
|Feb. 27, 1847||3,899,220||654,885||9||31/2, 4||2||236,088|
|Sept. 4, 1847||3,986,593||654,885||9||5, 51/2||2||302,390|
|March 4, 1848||3,980,840||654,885||9||8, 7, 6, 5, 4||4||241,451|
|Sept. 2, 1848||3,826,382||509,355||7||31/2||1||269,696|
|March 3, 1849||3,855,368||800,415||11||3||1||340,803|
|Sept. 1, 1849||3,574,361||509,355||7||―||―||284,809|
|March 2, 1850||3,592,934||582,120||8||21/2||1||332,789|
|August 31, 1850||3,536,662||509,355||7||―||―||300,101|
|March 1, 1851||3,610,954||582,120||8||3||1||337,082|
|Aug. 30, 1851||3,566,965||509,355||7||―||―||278,505|
|Feb. 28, 1852||3,604,186||582,120||8||21/2||1||323,316|
|Sept. 4, 1852||3,549,003||509,355||7||2||1||323,239|
|March 5, 1853||3,617,702||582,120||8||21/2, 3||2||370,366|
|Sept. 3, 1853||3,634,523||582,120||8||31/2, 4||2||343,083|
|March 4, 1854||3,713,915||654,885||9||41/2, 5||2||330,666|
|Sept. 2, 1854||3,689,563||654,885||9||51/2, 5||2||294,353|
|March 3, 1855||3,634,524||582,120||8||―||―||331,283|
|Sept. 1, 1855||3,628,723||582,120||8||41/2, 31/2||2||301,374|
|March 1, 1856||3,779,752||727,650||10||4, 41/2, 5, 51/2, 6-7||5||309,706|
|August 30, 1856||3,688,406||654,885||9||6, 5, 41/2||3||272,083|
|Feb. 28, 1857||3,719,854||654,885||9||5, 6-7, 7, 61/2, 6||5||198,468|
|Sept. 5, 1857||3,895,251||800,415||11||61/2, 6, 51/2||3||308,241|
|March 3, 1858||3,883,852||500,415||11||6, 7, 8, 9, 10, 8, 6, 5, 4, 31/2, 3||11||198,149|
|Sept. 1, 1858||3,689,972||654,885||9||―||―||314,237|
|March 2, 1859||3,647,589||582,120||8||21/2||1||345,365|
|August 31, 1859||3,689,021||654,885||9||31/2, 41/2, 31/2, 3, 21/2||5||245,231|
|Feb. 29, 1860||3,680,876||654,885||9||3, 4||2||235,814|
|Sept. 5, 1860||3,777,723||727,690||10||41/2, 5, 41/2, 4||4||295,813|
|March 6, 1861||3,803,199||727,650||10||41/2, 5, 6, 5, 6, 7, 8||7||366,984|
|Sept. 4, 1861||3,783,761||727,650||10||7, 6, 5, 6, 5, 41/2, 4||7||307,490|
|March 5, 1862||3,656,299||618,502||81/2||31/2, 3, 21/2||3||321,578|
|Sept. 3, 1862||3,639,646||618,502||81/2||3, 21/2, 2||3||308,431|
|March 4, 1863||3,659,178||618,502||81/2||3, 4, 5, 4||4||342,642|
|Sept. 2, 1863||3,674,187||654,885||9||31/2, 3, 31/2, 4||4||262,111|
|March 2, 1864||3,778,873||764,032||101/2||5, 6, 7, 8, 7, 8, 7, 6||8||242,779|
|August 31, 1864||3,859,557||836,797||111/2||7, 8, 9, 8, 7, 6, 7, 8||8||216,030|
|March 1, 1864||3,831,656||800,415||11||9, 8, 7, 6, 51/2, 5||6||229,159|
|Sept. 6, 1865||3,739,107||727,650||10||41/2, 4, 41/2, 4, 31/2, 3, 31/2, 4||8||231,070|
|Feb. 28, 1866||3,775,794||764,032||101/2||41/2, 5, 6, 7, 6, 7, 8, 7||8||183,707|
|Sept. 5, 1866||3,987,417||6, 7, 8, 9, 10, 8, 7, 6||8||171,724|
The dates given in the first column (1) are those of the Bank’s returns which include the last days in the months of Febr. and August in each year, the practice being to strike the half yearly profit balances of the B.o.E. on the last day of those months.
Rest now (Sept. 5, 1866) £3,987,417, allows declaration of 13% p.a., which would absorb £945,945. This is the largest amount earned and available since 1844, and a balance of about £3,041,000 would remain to be carried forward.
The actual increase in the amount of „rest“ during the period of 14 weeks when minimum rate discount 10%, was £583,605, and in the remaining portion of the half year, or 12 weeks, excluding the present week’s return (nämlich that of Sept. 5, ’66), it was £220,327, i.e., less than 1/2, although there was not a very great difference in the average Bankrate of the 2 periods. If we apportion the increase in the last or balance week, between the 14 and the 12 weeks, the result is as follows, there being 27 weeks included in our figures:
|14 weeks of 10% rates give Profits||£627,648|
|13 weeks average of 61/2 P.Ct. rate||£303,007|
In other words, during the 14 weeks of pressure or period of distress in the commercial world the B.o.E. earned at the rate of 17.16 P.Ct. p. annum, and in the remaining period only 8.32 P.Ct. p.a.
The Money Market Review, 13. Oktober 1866. S. 412/413.
The B.o.E. Rates of Discount for
The only periods during which anything like a steady rate prevails is when value of money is extremely low, or when trade is stagnant, or has become paralysed from the effects of a crisis. A continuous increase in the rate of discount to a high point is invariably followed by a severe reaction to the other extreme. Thus, after 4 weeks of 8% in 1847, the rate successively declined without interruption to 21/2%. After 6 weeks of 10% in 1857, the rate again, without a break, fell to 21/2%. Early in 1861 there were fears that a crisis would occur; numerous failures were taking place among the Greek Houses engaged in the Levant trade, Bankrate placed at 8% for 6 weeks, after which another fall to 21/2% repeated. In the 2 last months of 1863 and during all 1864 Bankrate high, between 6 and 9%. It was generally thought that the rate of money was had permanently risen, owing chiefly to the numerous new lending and borrowing Cos. established; but the revolution in the cotton trade accounted for the increased value or demand for money. The new cotton-producing countries required payment in specie, and not in manufactures, for the raw material they sent us. After the exaction of 9% for 9 weeks, towards the close of 1864, a reaction followed, |14 ultimately carrying the rate to 3%. Lately 10% for 14 weeks, and the reaction has already made rapid progress.
After the crisis of 1847 we had 6 years of very cheap money, and during more than 4 of these years the rates oscillated between only 2 and 3%. After the crisis of 1857 we had nearly 3 years of very low rates, 21/2 and 3% prevailing for 97 weeks during that period.
Rates of Discount before
and after the Gold discoveries.
1st Period, ending Dec. 31, 1851, before the new gold arrived in quantity. 2 Period ends with 4 May 1859. Whatever may have been the immediate effect of the actual receipt of the gold on the rates of discount, it must have been shown or felt in that period. Third Period 7 years and 4 months the ending with the present week. On the 2 occasions when there were the 2 rates of 6 and 7% at the same time, both occurring in the 2nd period, average of 61/2% is taken in the following analysis:
|Minimum Bankrate.||1 Period.||2nd Period.||Third Period.||Whole 22 years
7 Sept. 44 to 10 Oct. 1866
|Sept. 7, 1844 to 31 Dec. 1851.||Jan. 1 1852 to 4 May, 1859.||5. May 1859 to 10 Oct. ’66.|
In the 1st Period of 382 weeks only 20 weeks during which rates over 5% prevailed; nearly 5 years of 21/2% and of 3%, or more than 2 years of each. 21/2% the lowest, 8% the highest.
In 2nd Period low rates of shorter and the high rates of longer duration than in the first period. 5% prevailed longer than any other rate, lasting for nearly 11/2 years. Lowest rate 2, and highest 10%.
In 3d Period: Further reduction in the duration of the lower rates, and another very considerable increase in that of the highest rates of 7, 8, 9 and 10%. 2% again the lowest and 10% the highest rate. Rate most prevalent in this 3d period 4%, lasted more than 18 months.
Aus der lezten column (die whole 22 years) folgt, daß 41/2 years of 3% rates, nearly 4 years of 21/2%, 1 year of 2%, and about 2 years each of 31/2, 41/2, and 5%. (verte)|15
There were 17 alterations in the rate in the 1st period, 24 in the 2nd , and 86 in the third, or over 5 × the number of the first. The total number of alterations is 145.
The average Bank Rate for the whole Period has been £4. 4s. p.C.; in the 1st period it was £3, 5s. 11d., in the 2nd Period £4, 8s. 2d., and in the 3d Period it was £4, 17s. 11d. The 2nd period is 33% and the 3d is 50% higher than the average rate of the 1st period; so that – against the general expectation – the great discoveries of gold have not reduced the Rate of Interest.
The Money Market Review, 20. Oktober 1866. S. 442.
Gold and Silver Production in U. St. (1866)
Estimated at from $82 Mill. to $106 Mill. Davon figures California for 25 Mill. $, Montana for 18 Mill. $, Idaho for 17, Nevada 16, Colorado 17, Oregon 8 Mill. $.
|Produce of Goldfields of the Province||Export during quarter ended 30 June 1866.||Export during year ended 30 June 1866.||Total exported from New Zealand to 30 June 1866|
|Quantity. (oz.)||Value (£)||Quantity. (oz.)||Value. (£)||Quantity (oz.)||Value. (£)|
|Auckland||2,070 oz.||7,251£||5,410 oz.||17,197£||17,864 oz.||55,763£|
The Money Market Review, 27. Oktober 1866. S. 466/467.
Evils of two distinct departments in the B.o.E. shown by her weekly
|Banking Department.||Issue Department.|
|1866.||Liabilities to Public.||Reserve.||Proportion P.Ct.||Active Circulation or Liabil. to Public||Issue Reserve.||Proportion P.Ct.|
|May 9||£.19,760,000||£5,812,000||29%, about 5s. 10d. in £||22,344,000||7,344,000||33% or 6s. 8d. in £|
|16||25,087,000||1,203,000||43/4, under 1s. 0d.||26,121,000||11,121,000||43 or 8s. 7d.|
|30||27,199,000||860,000||31/4 under 0s. 8d.||26,019,000||11,019,000||42 or 8s. 5d.|
While the Banking Department was so much weakened, the Issue Department was actually strengthened, despite increasing liabilities.
|Total Liabilities to Public.||Total Coin and Bullion.||Proportion P.Ct.|
|May 9||£42,104,000||£.13,156,000||31% or 6s. 3d. in the pound|
|16||51,208,000||12,324,000||24 … 4s. 10d.|
|30||53,218,000||11,879,000||22 … 4s. 5d.|
From 3% of July 1865 to 10% of May 1866 (15 months). Principle: on every occasion of an increase in the rate of discount a decrease in the comparative strength of the Banking Department is shown in the returns; and again, each reduction in the rate has been preceded by an increase of strength. But one main evil is that these frequent alterations, so detrimental to the commerce of the country, very often occur irrespective of the General Position of the Bank. Z.B. The serious and unexpected advance von 41/2 to 7% 12 months ago, caused by sudden reduction from 33 to 24% in the strength of the Banking Department, whereas, at the same time, the position of the Bank in its entirety was but slightly affected.
Important and long continued decline in the private securities, which commenced with June, after the first 3 weeks infliction of the 10%. The demand for loans and discounts was reduced considerably through an uninterrupted settlement of outstanding engagements, while comparatively few fresh ones were entered into.
|Date of Return. 1866.||Amount of other Securities.||Amount of Weekly Reduction.||Increase.|
Total Net Reduction on the above 21 weeks: £12,894,276
At the close of each quarter the advances on other
securities invariably augment by 2 or 3 mill. Daher on
Oktober 3 Unleserlich wegen Tintenfleck.
England (1866 November and December.)
|Week ending Nov. 7||Week ending 14 Nov.||Week ending 21 November||Week ending 28 Nov.||Week ending 5 December||Week end. 12 December||Week ended 19 December||Week ended 26 Dec.|
|1) Circulation Issued||30,937,245||I. 174,360||31,084,720||I. 147,475||31,744,190||I. 659,470||32,141,275||I. 398,085||32,226,360||I. 84,085||32,497,700||I. 271,340||32,699,545||I. 201,845||33,307,880||I. 608,335|
|2) Circulation Active||23,561,330||D. 249,125||23,276,845||D. 284,485||22,944,315||D. 332,530||22,486,750||D. 457,565||22,713,175||I. 226,425||22,093,795||D. 619,380||22,100,485||I. 6690||21,933,365||D. 167,120|
|4) Reserve||Notes||7,375,915||I. 423,485||7,807,875||I. 431,960||8,799,875||I. 992,000||9,655,525||I. 855,650||9,513,185||D. 142,340||10,403,905||I. 890,720||10,599,060||I. 195,155||11,374,515||I. 775,455|
|5) Total Reserve||8,330,276||I. 417,135||8,867,762||I. 537,486||9,808,599||I. 940,837||10,688,420||I. 880,221||10,523,869||D. 164,951||11,457,676||I. 933,807||11,715,229||I. 257,553||12,314,494||I. 599,265|
|6) Public Deposits.||4,375,714||I. 454,561||5,145,772||I. 770,058||5,830,843||I. 685,071||6,161,157||I. 330,314||6,837,783||I. 676,626||7,388,241||I. 550,458||8,070,235||I. 681,994||8,706,361||I. 636,126|
|7) Private Deposits.||17,150,191||D. 709,280||16,687,127||D. 463,064||17,435,349||I. 748,222||18,252,795||I. 817,440||17,740,867||D. 511,928||18,425,551||I. 684,684||18,181,096||D. 224,455||18,592,224||I. 411,128|
|8) Public Securities.||12,299,812||I. 105,953||12,304,391||I. 4,579||12,670,738||I. 366,347||12,846,363||I. 175,625||12,956,269||I. 109,906||13,011,222||I. 54,953||No change||No change|
|9) Private Securities.||19,330,391||D. 748,467||19,061,233||D. 269,158||19,184,781||I. 123,548||19,186,008||I. 1227||19,395,744||I. 209,736||19,636,741||I. 240,997||19,825,202||I. 188,461||20,241,256||I. 416,054|
|10) Coin et Bullion in both Departments.||16,891,606||I. 168,010||17,144,607||I. 253,001||17,752,914||I. 608,307||18,175,570||I. 422,656||18,237,044||I. 61,474||18,551,471||I. 314,427||18,815,714||I. 264,243||19,247,859||I. 432,145|
Week ending 10 November.
The Money Market Review, 10. November 1866. S. 530.
Schließen Rapid decline in the Bank’s Discount has chiefly prompted the reduction to 4% on 8 Nov. Owing to the extent to which bills had been held back, in anticipation of reduction in the Bankrate, increased demand for discounts on 8 und 9 Nov. Moderate Remittances to the East (Alexandria, Madras, Calcutta, Singapore and Hong Kong, all silver except £20,175 gold für Alexandria. The whole: £38,046)
The Money Market Review, 10. November 1866. S. 531.
Schließen Mercantile Embarrassments: Dent et Co (influential China Merchants), their drafts refused acceptance by their London agents, Dent, Palmer et Co. House has agents at Hong Kong, Shanghai, Foo-chow-foo. Liab. 2 to 3 Mill. £. St. Bradford, failure of spinner mit £25,000. Burnley, suspension of Uttley et Lee, manufacturers, Liab. about £20,000. Wednesbury: James Russell et Sons, Crown Tube Works, liab. about £40,000. Russell was director of New Zealand Banking Co , which suspended during recent panic.
Week ending 17 November.
The Money Market Review, 17. November 1866. S. 558.
Schließen Increase of Reserve owing to diminution of Discounts (Loans) and influx of Gvt. Deposits. Amount of gold gained to Bank by Import und Export transactions only £57,000 und daher die Increase of 253,001 indicates reflux of coin from the provinces.
The Money Market Review, 17. November 1866. S. 559.
Schließen Mercantile Embarrassments: Adelaide (South Australia) Suspension of Philip Levi et Co, merchants, liab. over £300,000. Largest mercantile failure ever known in the colony. Sidney: Love et Sons, wholesale grocers (liab. £46,000) und Drynan et Co, warehousemen, liab. £42,000. Gillespie, Churchill et Co, most extensive merchants, failed on 23 April, deficiency now shown of £489,490, which has resulted from 4 years trading, £263,831 by bad debts, £212,863 lost on ships, produce etc. Creditors will have 8d. in £.
Week ending 24 November.
The Money Market Review, 24. November 1866. S. 587.
Schließen Increase of Reserve durch influx of public und private deposits. Mercantile Embarrassments: Will. Dargan, Extensive Irish contractor.
Week ending 1 December.
The Money Market Review, 1. Dezember 1866. S. 616.
Schließen Increase of Reserve: Owing to influx of Deposits, including lodgments in the Bank by the liquidators of failed Cos. Notwithstanding some little absorption of sovereigns in Ireland, there is, on balance, a steady reflux of coin to the Bank from the provincial circulation.
The Money Market Review, 1. Dezember 1866. S. 617.
Schließen Mercantile Embarrassments: Liverpool failure of firm of wine brokers, owing to transactions in China trade. Scott et Co, extensive shipbuilders of St. Nazaire, declared bankrupt. They built 5 of the extensive steamers of the Transatlantic Co., employed large number of people.
Week ending 8. December:
The Money Market Review, 8. Dezember 1866. S. 648.
Schließen Increase in Gvt. und diminution [in] private deposits, usual at this season. Mercantile Embarrassments: Manchester, Abraham Troost et Sons, old mercantile house. Stirling: Suspension of G. Shand et Co, Petroleum trade. Liab. about £100,000. Acceptances of Ramsay, Elder, et Co, Barbadoes, of J. et A. Elder (Antigua) und Elder, Stevens et Co, Bushlane (City) returned. Liab. of H. A. Holden, contractor for public works, about £800,000.
Week ending 15 Dec:
The Money Market Review, 15. Dezember 1866. S. 681.
Schließen Mercantile Embarrassments: Great Towerstreet (City), failure of Mitchell and Aspinal, teabrokers, liab. considerable. Wm. Alphonse, of Newgate Street, importer of foreign goods. Liab. over £10,000. Liverpool et Singapore: Grant, Murdoch et Co, Indian and African Merchants, liabilities about 300,000. Glasgow: Liddell, M’Gillivray et Co, spinners et manufacturers. Glasgow: Scott et Co, of Cartsdyke, extensive shipbuilders. Owing to this stoppage and that of Scott et Co., of St. Nazaire, the Greenock Foundry Co. compelled to suspend payment.
The Money Market Review, 15. Dezember 1866. S. 681.
Schließen The advises from Australia by present mail show general revulsions in trade, accompanied by numerous large failures at Sydney, where the pressure for money and consequent sudden contraction of credit by the banks has brought down about 13 establishments mit aggregate liabilities of mindest £800,000. The most important failures were Threlkeld et Co, auctioneers (£400,000), Wilkinson brothers, merchants (£100,000) Joubert et Boucher, merchants, J. et E. Row, wholesale druggists and chemists, Church Brothers.
Week ending 22 Dec.
The Money Market Review, 22. Dezember 1866. S. 712/713.
Schließen Addition to Stock of Bullion et Coin almost exclusively from return of coin from provincial circulation. Mercantile Embarrassments: J. Schofield et Sons, cotton spinners, Oldham. James Barber et Co, East India Merchants. This due to debt of £36,000 owing by the Calcutta agent of the firm (i.e. Gordon, Stuart et Co. who caused the stoppage.)
Week ending 29. December.
The Money Market Review, 29. Dezember 1866. S. 740.
Schließen Increase of Reserve, owing to continued influx of deposits. Augmentation of coin et bullion £432,145, about £120,000 less than amount sent to the Bank during the week from abroad. Difference due to withdrawal of coin by bankers et others to meet Christmas and New Years payments.
England and Moneymarket. 1867.
|3) Bullion in Issue Department.||4)
|6) Total Reserve.||7) Public Deposits.||8) Private Deposits.||9) Public Securities||10) Private Securities||11) Total of Coin and Bullion|
|2 January||33,429,100||I. 121,220||23,286,845||I. 1,353,480||18,429,100||10,142,255||D. 1,232,260||986,262||11,128,517||D. 1,185,977||8,162,130||D. 544,231||20,592,230||I. 2,000,006||13,111,068||I. 99,846||22,816,503||I. 2,575,247||19,415,362||I. 167,503|
|9 Jan.||33,461,685||I. 32,585||23,313,810.||I. 26,965||18,461,685||10,147,875||I. 5620||977,167||11,125,042||D. 3475||4,444,468||D. 3,717,662||23,049,592||I. 2,457,362||No change||21,750,978||D. 1,065,525||19,438,852||I. 23,490|
|16 Jan.||33,272,645||D. 189,040||23,300,420||18,272,645||9,972,225||D. 175,650||1,008,200||10,980,425||D. 144,617||4,467,001||I. 22,533||21,064,710||D. 1,751,260 1,984,882||No change||19,999,718||D. 1,751,260||19,280,845||D. 158,007|
|23 Jan.||32,881,875||D. 390,770||22,918,965||D. 381,455||17,881,875||9,962,910||D. 9,315||1,009,673||10,972,583||D. 7,842||5,298,679||I. 831,678||19,637,846||D. 1,426,864||No change||19,411,773||D. 587,945||18,891,548||D. 389,297|
|30 Jan.||32,917,120||I. 35,245||22,807,285||D. 111,680||17,917,120||10,109,835||I. 146,925||973,302||11,083,137||I. 110,554||6,161,542||I. 862,863||18,643,429||D. 994,417||No change||19,190,383||D. 221,390||18,890,422||D. 1126|
|6 Febr.||33,094,940||I. 177,820||23,024,170||I. 216,885||18,094,940||10,070,770||D. 39,065||929,253||11,000,023||D. 83,114||5,997,437||D. 164,105||18,267,595||D. 375,834||No change||18,716,418||D. 473,965||19,024,193||I. 133,771|
|13 Feb.||33,218,080||I. 123,140||22,630,785||D. 393,385||18,218,080||10,587,295||I. 516,525||959,302||11,546,597||I. 546,574||6,870,680||I. 873,243||17,476,265||D. 791,330||No change||18,317,542||
|20 Febr.||33,281,075||I. 62,995||22,295,590||D. 335,195||18,218,075||10,985,485||I. 398,190||1,030,338||12,015,823||I. 469,226||6,203,868||D. 666,812||18,559,453||I. 1,083,188||No change||18,201,850||D. 116,192||
|27 Febr.||33,406,285||I. 125,210||22,375,835||I. 80,245||18,406,285||11,030,450||I. 44,965||984,027||12,014,477||D. 1346||6,734,959||I. 531,091||17,847,021||D. 712,432||No change||18,045,819||D. 155,531||19,390,312||I. 78,899|
|6 March||33,391,075||D. 15,210||22,497,230||I. 121,395||18,391,075||10,898,845||D. 136,605||982,890||11,876,735||D. 137,742||7,246,023||I. 511,064||17,583,972||D. 263,049||No change||18,653,252||I. 607,433||19,373,965||D. 16,347|
|13 March||33,236,990||D. 154,085||22,049,515||D. 447,715||18,236,990||11,187,475||I. 293,630||1,019,245||12,206,720||I. 329,985||8,237,911||I. 991,888||16,789,161||No change||18,604,404||D. 48,844||19,256,235||D. 117,730|
|20 March||33,427,710||I. 190,720||21,849,895||D. 199,620||18,427,710||11,577,815||I. 390,340||1,033,736||12,611,551||I. 404,831||8,780,499||I. 542,588||16,925,565||I. 136,404||No change||18,876,738||I. 272,334||19,461,446||I. 205,211|
|27 March||33,584,170||I. 156,460||22,337,715||I. 487,820||18,584,170||11,246,455||D. 331,360||1,043,062||12,289,517||D. 322,034||9,323,556||
|17,169,812||I. 244,247||No change||20,017,989||I. 1,141,251||19,627,232||I. 165,786|
|3 April||33,474,265||D. 109,905||23,217,380||I. 879,665||18,474,265||10,256,885||D. 989,570||1,034,673||11,291,558||D. 997,959||8,619,051||D. 704,505||17,671,100||I. 501,288||13,110,675||D. 393||20,751,596||I. 733,607||19,508,938||D. 118,294|
|10 April||33,178,750||D. 295,515||23,229,605||I. 12,225||18,178,750||9,949,145||D. 307,740||1,120,569||11,069,714||D. 221,844||5,710,748||I. 2,908,303||19,045,560||I. 1,374,460||12,826,158||D. 284,517||18,960,410||D. 1,791,186||19,299,319||D. 209,619|
|17 April||33,342,455||I. 163,705||23,447,000||I. 217,895||18,342,455||9,895,455||D. 53,690||1,045,059||10,940,514||D. 129,200||5,398,266||D. 312,482||18,800,517||D. 245,043||12,876,158||I. 50,000||18,523,872||D. 436,538||19,387,514||I. 88,195|
|24 April||33,226,265||D. 116,190||23,125,385||D. 321,615||18,226,265||10,100,880||I. 205,425||1,110,662||11,211,542||I. 271,028||6,345,829||I. 947,563||17,883,892||D. 916,625||No change||18,249,701||D. 274,166||19,336,927||D. 50,587|
|1 May||33,167,410||D. 58,885||23,229,665||I. 174,280||18,167,410||9,867,745||D. 233,135||1,081,485||10,949,230||D. 262,312||7,052,501||I. 706,672||17,793,917||D. 89,975||12,886,314||I. 10,156||19,169,324||I. 919,618||19,248,895||D. 88,032|
|Week ending 5 Jan.||Week ending 12 Jan.||Week ending 19 Jan.||Week ending 26 Jan.||Week end. 2 Febr.||Week end. Feb. 9||Week ending 16 Febr.||Week ending 23 Febr.||Week ending 2 March||Week ending 9 March||Week ending 16 March||Week end. 23 March||Week ending 30 March||Week ending April 6||Week ending April 13||Week ending April 20||Week ending April 27||Week ending May 4|
|1) Coin et Bullion.||D. 1,580,000||D. 706,640||D. 106,640||I. 496,000||I. 200,000||I. 848,000||I. 500,000||I. 760,000||I. 180,000||I. 733,500||I. 306,640||I. 236,000||I. 512,000||I. 293,820||D. 356,000||I. 33,200||I. 316,000||I. 520,000|
|2) Discounts (Loan)||I. 2,413,320||D. 500,000||I. 560,000||D. 440,000||I. 1,666,640||D. 3,040,000||D. 500,000||D. 1,266,650||I. 1,200,000||D. 2,960,000||D. 180,000||D. 810,000||I. 36,000||D. 112,000||D. 488,000||I. 650,000||I. 380,000||I. 400,000|
|3) Minimum Rate of Disc.||3%. England 31/2.||3%. Engl. 31/2||3%. Engl. 31/2||3%. Engl. 31/2||3%. Engl. 31/2||3%. Engl. 3%||3%. Engl. 3%||3%. Engl. 3%||3%. Engl. 3%||3%. Engl. 3%||3%. Engl. 3%||3%. Engl. 3%||3%. Engl. 3%||3%. Engl. 3%||3%. Engl. 3%||3%. Engl. 3%||3%. Engl. 3%.||3%. Engl. 3%.|
|4) Notes mit Public||I. 3,180,000||I. 644,000||I. 832,000||I. 12,000||I. 1,944,000||D. 2,580,000||D. 24,000||D. 600,000||I. 1,640,000||D. 2,128,000||D. 133,320||D. 426,640||I. 220,000||I. 540,000||D. 133,320||I. 440,000||D. 312,000||I. 827,000|
|5) Stock of coin et bullion.||27,000,987||26,295,518||26,184,973||26,676,949.||26,879,920||27,725,620||28,225,960||28,989,320||29,167,713||29,900,526||30,206,773||30,445,699||30,957,086.||31,251,714||30,892,951||30,926,150||31,222,260||31,222,602.||
Notizen über Money
Week ending January 5.
The Money Market Review, 5. Januar 1867. S. 8.
Schließen B.o.E.: Government payments at the end of the year have caused diminution of £544,231 in Treasury Balance, and tended to swell the circulation. £800,000 became payable for dividend to creditors of Overend. Yet, owing to anxiety of commercial firms to have good balances at their bankers on 31 Dec. combined with the efforts of the Jointstock Banks to draw in money, private deposits increased 2 mill. At the same time the demand for money usual at turn of year caused increase of more than 21/2 Mill. in discounts (Loans). Hence Decrease in Reserve.
The Money Market Review, 5. Januar 1867. S. 16.
Schließen Rise in Home Railway Shares, traffic returns good, trotz slackness of trade in the North. Renewed demand for Jointstockbank Shares, nearly all somewhat scarce in market.
Week ending 12 January, 1867.
The Money Market Review, 12. Januar 1867. S. 47.
Schließen Advance in Railway shares for some weeks past. Upward Tendency for Bank Shares. Australia: Improvement from Melbourne, under influence of wool export. At Sydney better feeling, in expectation of early improvement of business, owing to more favourable news from England. It was thought that the natures of the advances sent home would tend to diminish shipments to Australia, and enable holders at Sydney to relieve the markets of the surplus stocks which had been accumulating for months. Several additional failures, important nur der of A. Morris mit liabilities for 103,000l.
Week ending 19 Jan. 1867
The Money Market Review, 19. Januar 1867. S. 78.
Schließen Return shows the effect of completion of dividend payments. About 2 mill. withdrawn from private deposits; almost wholly made up by repayments on advances on private securities (the decrease in these advances being £1,751,260); and result is a draught of only £144,617 upon Reserve.
The Money Market Review, 19. Januar 1867. S. 79.
Schließen Mercantile Embarrassments: Telegrams from China, via Galle, dated Hong Kong, 15 Dec. (1866) announce that Dent et Co. have provided for their draughts, which were refused acceptance by their London correspondents at beginning of Nov. last, through the assistance of Msrs. Jardine, Matheson et Co. and others.
Week ending Jan. 26. 1867.
The Money Market Review, 26. Januar 1867. S. 114.
Schließen The heavy retrenchments of private deposits von B.o.E. counteracted by considerable influx of Gvt. deposits. The decrease of coin et bullion by £389,497 is by £96,000 less than the amount of gold withdrawn from the Bank during the week for exportation. Hence coin must still be flowing back from the internal circulation. – Failure of firm in Sugar Trade, liab. £30,000.
Week ending February 2, 1867.
The Money Market Review, 2. Februar 1867. S. 135.
Schließen 9 Jan. stock of gold and silver coin and bullion in B.o.E. the enormous amount of £19,438,000. Since then up to 30th reduced by withdrawals for the Continent to £18,890,420, a decrease of £547,578.
Week ending Febr. 9. 1867.
The Money Market Review, 9. Februar 1867. S. 171.
Schließen On 8 Feb. Bk.o.E. minimum rate of discount reduced to 3%. This lowest point since 15th June 1865. A 3% rate has prevailed at the Bank only 3 times since 1860 and 4 times since 1853.
The Money Market Review, 9. Februar 1867. S. 182.
Schließen Improvement in Foreign Stocks: Brazilian, Russian, and Egyptian all quoted higher. Colonial bonds continue favourite medium for investment. Bankshares higher prices. English Railway Stocks dagegen less than dull. (Collapse of London, Chatham and Dover .)
Week ending 16 Febr. 1867.
The Money Market Review, 16. Februar 1867. S. 214/215 u. 217.
Schließen During the week the Bank parted mit £51,000 in gold for export, dennoch increase of £153,189 in coin et bullion; shows that the reflux of coin from the provinces is considerable. Mercantile Embarrassments: Manchester: N. J. Amies, smallware manufacturer, liab. about 30,000£. Bradford: Edward Craven et Co, stuffmerchants. Australia: Sydney: failure of G. A. Lloyd et Co., merchants, liab. about £200,000. At Adelaide Younghusband et Co stopped payment, liab. £65,000.
Week ending 23 Febr. 1867.
The Money Market Review, 23. Februar 1867. S. 244.
Schließen B.o.E. Government deposits diminished, large increase in private deposits, accompanied by repayment to the Bank of a further portion of its advances on private securities. Increase of £134,031 in coin and bullion, in face of the fact that the import and export movements of the week were almost exactly balance balanced, shows continued reflux of coin from the internal circulation.
Week ending 9 March 1867.
The Money Market Review, 9. März 1867. S. 308.
Schließen Discount market characterised by the increased movement often noticed in the last month of each quarter. Good deal of money transmitted from Paris to this country to be invested in the best bills, though, in some cases, on such transactions.|
The Money Market Review, 9. März 1867. S. 308, 301 u. 309.
Schließen Diese Angabe bezieht sich noch auf den „Discount Market“, der von Marx am Ende der vorangegangenen Seite des vorliegenden Hefts exzerpierten Rubrik.
Schließen Only 21/4% obtainable. Railway Market gloomier than ever. (This week the Great Western announced its inability to pay the 1% dividend it had declared. Fall of 2% in Midland , 21/2 in Gr. Western, 2 in London and North Western , 11/2 in Lancashire and Yorkshire etc[.] Hopes founded on Paris Exhibition traffic continue to support South Eastern, which has declared only 3/4. – Failure of Th. Gaskell jun, an underwriter at Lloyd’s.
Week ending March 16. 1867.
The Money Market Review, 16. März 1867. S. 327.
Schließen The falling off of £117,730 in coin and Bullion (B.o.E.) is almost exclusively due to demand for coin for Ireland, the Bk. having parted mit only £13,000, on balance, for export during the week.
The Money Market Review, 16. März 1867. S. 339.
Schließen Mercantile Embarrassments: Failure of a dealer on Stockexchange on 14 March. Manchester: Laurence, Hindle, et Son commission agents at Manchester, and cotton spinners at Accrington. Australia: Marsh, Cumberland et Co, warehousemen, liabilities in Melbourne 3000£, in England £17,000; ditto Chalk and Price, in the same business, liab. £24,550 (Assets: £22,300)[.] At Sydney failure of Dibbs et Co, merchants, liabilities 31,624.
Week ending March 23, 1867.
The Money Market Review, 23. März 1867. S. 368–370.
Schließen During the week, on balance, £113,000 in gold sent into the Bank from abroad, and increase of £205,211, this difference must be represented by the coin returned from the country. Mercantile Embarrassments: London, Goodyear et Co, St. Paul’s Churchyard, straw-hat warehousemen, liab. more than £200,000. Leeds failure of Wilkinson et Co, flax spinners of Hunslet. The difficulties have chiefly arisen from connection mit Leeds Banking Co , in which one of the partners was large shareholder.
The Money Market Review, 23. März 1867. S. 360.
Schließen In British Railway Stock speculation considerable. The tone, upon the whole, steadier, with some disastrous exceptions. After a prolonged mania, during which any concocter of a prospectus could realise a fortune out of public credulity, months of unwarrantable distrust, when even the soundest securities could find no purchasers. Now all streams into channel of Indian Guaranteed securities. Investors rush wildly into the India 5% stock, good, but whose present price about its merits. With the same unreasoning concord a large number of proprietors willfully sacrifice, good, bad, and indifferent railway stock etc. Is all originality, all discrimination in such matters utterly out of the question?
Week ending 30 March 1867.
The Money Market Review, 30. März 1867. S. 387 u. 401.
Schließen B.o.E. Increase in bullion and coin of £165,786; there must, over the gold received from abroad, have been between 60 and 70,000l. returned from the provinces. Embarrassments: Ch. Newton, brothers, Australian trade (London). Liab. 240,000. (consequent upon failure of F. Goodyear et Co in Australia, and inadequacy of remittances from Australia to meet engagements.) Leeds: S. Sykes, flax spinner, liab. about £30,000. Glasgow failures of Weir, brothers, wine and spirit trade, liab. about £100,000.
Week ending April 6, 1867:
The Money Market Review, 6. April 1867. S. 432/433.
Schließen B.o.E. Heavy Gvt. and other payments at end of quarter. Hence, trotz increased deposits, advance on private securities has trenched upon Reserve to nearly 1 Mill. Bank received during week about £289,000 from abroad (gold), but owing to temporary demand for coin at this season the whole has disappeared in addition to further sum of £118,294. Mercantile Embarrassments: Manchester W. Horsfall, of Albert Mill, liab. £20,000, chiefly due to mortgages. Ditto Leming, spinner und manufacturer, Glossop.
April 13. 1867:
The Money Market Review, 13. April 1867. S. 456/457.
Schließen B.o.E. Payment of dividends began on 9. April, has produced only diminution of £221,844 in Reserve. What Bank lost through payment on Gvt. Account, made up by influx of private deposits and repayment of its quarterly advances. Failures etc: S. Lella, merchant, City, direct liab. £30,000, for endorsements about £50,000.
The Money Market Review, 13. April 1867. S. 456.
Schließen B.o.E: The 209,617£ withdrawn from coin and bullion consists fast nur of coin taken by the receivers of dividends.
Week 20 April
The Money Market Review, 20. April 1867. S. 482.
Schließen B.o.E: Some coin withdrawn for internal circulation, since Bank received from abroad about 200,000 in gold und its increase in coin and bullion nur £88,198. Failures: Halifax; Rothery, brothers, worsted spinners, liab. about £9000. Stockport, Robinson et Co. manufacturers, considerable liab. Australia, one failure only of importance: Strachan and Co, Sydney and Maitland.
Week ending 4 May, 1867:
The Money Market Review, 4. Mai 1867. S. 534.
Schließen B.o.E. Reflux of gold from provinces, da falling off nur 88,032£, obgleich gold export withdrawn £192,000.|
[The Money Market
Review, Januar bis Juni 1867]
The Money Market Review, 5. Januar 1867. S. 3–5.
Currency Theories and Currency Facts. (Money Market Review 5 Jan.
All bankers etc believe still that high rate of interest the only specific for too little gold and too many notes. Nun confer the following facts:
|Bank o. E.||Bank o. France.||Both together|
|Commenced year mit coin und bullion||£.13,106,183||£16,747,095||£29,853,278|
|Closed year mit coin und bullion||19,247,859||28,580,987||47,828,846|
|Smallest amount of coin and bullion||11,857,786. (May 23, ’66)||15,503,172 (Jan. 18, ’66)||27,360,958|
|Largest amount of coin and bullion||19,247,859 (Dec. 26, ’66)||29,876,779 (Sept. 6, ’66)||49,124,638|
|Smallest amount of coin and bullion held at the same moment||Jan. 17 et 18: 28,535,006|
|Largest amount of coin and bullion held at the same moment||Dec. 26 et 27: 47,828,846|
|Rate of Discount.||Minimum.||1865 3%.||1866 31/2%||1865: 3%.||1866: 3|
|Maximum||1865 7||1866 10||1865: 5.||1866. 5|
|Average.||1865. 4.74.||1866 7.||1865 3.70.||1866: 3.69|
1866 closes mit maximum of coin and bullion, and minimum rate of discount. As soon as B.o.E. lowered discount rate, it accumulated coin and bullion. The B.o.F. accumulated coin and bullion with low rate, B.o.E. obtained little or none mit high rate.
That in times of panic depositors get frightened gilt nicht für B.o.E. Before 11 May B.o.E. had deposits of about 18 Mill., they rose after failure of Overend und Peto immediately to 28 Mill. Ebenso mit Loans (Discounts) der B.o.E. on private securities: At the beginning of 1866 £34,621,837, at its close: £33,699,478. Lowest point on 21st February, when securities, private et public, 27,935,943; highest £44,312,101, on 30 May, just after panic. Immediately before the panic the securities held by the Bk.o.E., mit 6 und 7% interest, about 30 mill.; immediately after panic, mit 10% interest, they rose to 44 millions. From 25 April to 30 May they increased £15,109,993. Ferner: Active Circulation on 25 April, before Panic, £22,161,115 with 6% rate; after the panic, or rather during its continuance, on 30. May £26,018,795 mit 10% rate. Bullion and Coin on 25 April £13,855,776 und on 30 May £11,878,775.
The panic of May 1866 shows therefore: Sudden
increase of money lent to Bank o. E. The Money Market
Review: on deposit
Schließen in form of deposits; correspondingly sudden increase of money lent by B.o.E. on securities; Rapid addition to notes in the hand of public, material decrease in store of coin and bullion, Advance in Discount Rate to 10%.
The sudden increase in Deposits of B.o.E. due chiefly to growth of balances of bankers and other money dealers who curtailed their loan business and augmented their reserves. Also due to transfer of accounts from other banks to B.o.E. by frightened depositors. Sudden increase in money lent by B.o.E., wegen difficulty of obtaining money elsewhere. Borrowers driven to the B.o.E. by distrust prevailing in the general market. Addition to Circulation for bankers tills, large notes almost alone increasing. Diminution in bullion and coin partly from additional reserves of sovereigns kept by provincial bankers, partly from distrust of continental creditors who would only accept gold in payment of debt. The advance of rate to 10% due to the Overstone theory, to contract active circulation und attract gold; the remedy failed nach beiden Seiten. Notes in hand of public did not decline materially, nor bullion increase until after 15 Sept., when discount rate reduced von 10 to 8%.
Now as to the Accounts of Bank of France: As a
rule the deposits lent to B.o.Fr. less than the
money lent to B.o.E. 1866 commenced mit
£10,011,417 deposits at B.o.Fr., closed mit £20,938,445. The
Minimum was £9,267,141 on 25 Jan. ’66, Maximum £.22,627,120 on
28 June ’66. Deposits same course wie in England. On 26 April £.12,000,683 und on 31
May £19,398,308. French Moneylenders thought that the
English crisis demanded caution and increase of their
reserves. But B.o.F. did not raise interest. Ebenso amount of securities (loans) on 20 April £36,073,336 (at Bk. o. Fr.)
und on 31 May £43,250,463. Good
deal of borrowing on English account at Paris. Bullion increased at B.o.F.
during English Panic von £20,706,955 on 26 April to £22,523,808 on 31 May. The
English 10% drove money away, the French 4% attracted it. Zusatz von
Schließen (Gegen die Overstone Theory). Ferner: Notes in Circulation of B. o. France 889,969,375 fcs, on 26 April, und 919,872,775 fcs on 31 May, also stieg von 35,598,775£ auf 36,794,911. Nach der currency school hätte die Note Circulation bedeutend steigen müssen mit 4%, did not in any appreciable degree.
Divested of all superfluous figures, the facts stand as under:
|B. o. England||Deposits||£27,298,585||Notes with the Public.||21,933,365|
|B. o. France.||Deposits||20,938,445.||Notes mit dem Public.||37,478,793|
|B. o. England.||Securities.||£33,699,478||Coin and bullion||19,247,859|
|B. o. France.||Securities.||39,618,728||Coin and bullion.||28,580,987|
Die B.o.E. hold more Deposits than B.o.F. und much less Note Circulation. Und B.o.F. verpumpt mehr zu niedrigerer Rate of Discount. The panic yielded Profit to Bk. o. England in proportion to its intensity.|
The Money Market Review, 5. Januar 1867. S. 6.
Board of Trade Returns.
|Value of Imports. Month ended October 31.|
|Imports. Ten Months ended October 31.|
|Less Raw Cotton.||62,098,915||43,899,564||67,175,970|
|Exports. Declared Value. Month ended November 30|
|Exports 11 months. Ended Nov. 30|
|Less cotton yarn and manufactures:||50,908,229||52,030,217||68,267,228|
|Exports, exclusive of manufactured cotton:||£97,432,636||£.98,802,127||£.105,645,994|
Cotton as usual 1/3 of the entire exports of Gr. Brit., and throughout 1866 the proportion of 1/3 has been very far exceeded.
The Money Market Review, 5. Januar 1867. S. 22/23.
The Aberaman Iron Works
Co. (limit.) (Meeting of Shareholders. Jan. 5. ’67)
(Money Market Review)
Mr. Henry Pawle (London stock broker exposed the case).
On 4. May, 1864, a certain financial agent met
another financial agent, stated that he had entered into an agreement to
works; that he required a person to take up to take up 2000 shares, so that the intended Co. could go
before the Public with a certain amount of shares taken up; he had
already got first-class names for directors. Certain persons associated
together as promoters; C. Baily wanted 10,000£ caution or deposit money,
difficulty to get them. Attempt to get it from Msrs. Barclay et Co, but without
success. Object der promoters so to
bring out the Co. as to make £100,000 out of it, by buying Baily’s estate and reselling it to
the Co. Recourse to the London
Bank of Scotland, to get loan from it. Capital of the
proposed Co. was to be £600,000, in 30,000 shares of £20 each, and to place 10,000 shares before the Co. came out,
so as to make it look well with the public. To get these 10,000 shares
placed, commission of £16,000 was to be given
for placing 8000 shares, being at the rate of £2 per share, besides
which about £10,000 profit to be given for the loan of 10,000£ deposit money, and £5000 each to the 2 gents. for finding a party
to take £16,000 for placing 8000 shares, and for raising the loan, and for raising loan, thus making a total
charge of 36,000£ for the loan of £10,000 and placing 8000
shares. However this agreement appeared to have been broken off, and
then Mr. Josiah Wilkinson (of the firm of
Wilkinson, Stevens and
Wilkinson), connected with the getting up of many cos.,
appeared on the scene, lent himself £10,000 to pay the deposit money,
all the previous parties being now excluded from the arrangement.
Capital of the new Co. fixed at £500,000, in 10,000 shares of £50 each;
1£ to be paid on application and £4 on allotment. At this time William Sarl and James Joseph
Ludlow advanced their claims as having also a right to purchase
Baily’s property; to avoid litigation, compromise effected; Sarl and
Ludlow should share in the concern with Msrs. Wilkinson
and Wickens. 23 June
1864 agreement made, by which Baily sold all his property to
Wickens for £250,000
with proviso that Baily should „not be called upon to deduce any prior
title, or to substantiate or verify the same, otherwise than by the
production of the said conveyances, and the said 3 bases on any pretence
whatever“, and also „The estate as to acreage and other matters of this
description shall be taken as exclusively shown and defined by the said
deeds of conveyance and leases without further evidence.“ In the prospectus stated was carefully surveyed by
Joshua Richardson, and contained 1530 acres of land, but whose estimate
of the value of the property was only £302,000. Application first made
Mobilier Co to bring the Co. out, failed;
then the promoters applied to the Financial Corporation to bring
them out for £2000. The agreement made on 17 August; on 18 Aug. prospectus issued, agreed mit
Financial Corporation that they should find subscribers for 4,000 shares, for the sum of
£8000 or so p. share, with the proviso: „That the Corporation should not
be bound to take the shares unless they liked, and that their manager,
Mr. Walford, should be present at and have a voice in the allotment of
the shares.“ Also arranged that the Finance Financial Corporation should buy shares on the Stock Exchange,
they were promised £15,000 to cover losses incurred in such
transactions. Financial Corporation, however, only
dealt in 400 shares, sold out on the settling day by them at 3 disc.
Lost £1335, 17s. 6.d., repaid them by Wickens. Wilkinson, the promoter,
also dealt in the shares, lost |25 £987, 10s., likewise repaid
to him by Wickens. Consequence was, that altogether 12,817 shares
applied for up to 3d Sept. 1864, and the
allotment took place on 5 Sept., total number of shares allotted being
5,300 or 5,629, although prospectus stated that half the capital, or
5000 shares had been previously applied before the issue of prospectus,
as was prominently printed in it in red ink. The directors applied
altogether for 2,670 shares, allotted themselves only 600 shares, which
in most instances was their mere qualification, some
of them did not even pay for the shares themselves, the deposits
being paid by the promoters, in fact two of the directors never
had any shares in their names. On 27 Sept. final
agreement for the purchase made between the directors and Wickens, for the
property for £350,000, in this way: £30,000 cash down, £40,000 cash
payable 15. Oct., £80,000 cash payable 15. Jan. 1865, in all £150,000
cash; then £75,000 in 6% bonds of £50 each, interest payable quarterly,
half redeemable in 3 years, and half in 5 years; and these bonds to be
delivered to the vendor 14 days after the allotment of shares in the
Co.; then £125,000 was left on mortgage at 5% for 2 years from 23d. June, 1864, making in all £350,000. Also
agreed that if the purchase not completed by 15. Jan. 1865, the above
sums of 30 000 und 40 000 should be absolutely forfeited to
Wickens for his private use. Wickens on his side
purchased the estate of Baily on these terms: £10,000 deposit
money (already paid), 40,000£ cash on 18 Oct. 1864, and £75,000 in cash
on 20 Jan. 1865, in all £125,000 in cash; then 125,000 mortgage at 5%
for 2 years from 25 June 1864, zusammen £250,000; if purchase
not agreed by 20. Jan. 1865, the £10,000 and £.40,000 absolutely
forfeited to Baily, thus giving Wickins Wickens a profit of £20,000 cash and £75,000 bonds on the forfeiture
clause above. On October 26, 1864, the £75,000
bonds were handed over to Wickens, appearing anxious to get funds to
complete his arrangements with Baily. Eventually the London and Country
Bank advanced 25,000£ as a loan on £40,000 of
bonds for the 3 months, the directors of the Iron Works Co. backing up
this loan by agreeing to make a call within 3 months to meet payment of
the loan. Thus the directors and promoters were acting in concert. On
12 Jan. 1865, just 3 days before Wickens’s
forfeiture clause came into operation, and 8 days before that of
Mr. Crawshay Baily, a meeting of a full board of directors was held, and
agreed that the payment to „Wicked“ should be made thus: £30,000 in
cash, paid 27 Sept., 1864; £20,000 in cash, paid 10 Nov., 1864; £20,000
in cash, paid 17 Nov. 1864, part proceeds of loan raised at London and
County Bank on £40,000 bonds, £5000 in cash paid 15 Jan. 1865; making
£75,000 total cash paid to „Wicked“; also £75,000 in bonds of £50 each,
bearing 6% interest, already delivered to Wicked; £40,000 of which being
in hands of London and County Bank as security for loan; finally,
£200,000 left on mortgage – total £350,000. This
arrangement between promoters and directors ensured their
making £100,000 between them, a purpose steadily kept in view, the
promoters having been mostly present at the directors’ meeting. On 20 January (1865) W. Sarl, one of the promoters, informed the directors that
there was a grave discrepancy in the acreage. (But this, as above
proviso shows, known before.) Directors give notice to „Wicked“ that
they repudiated the purchase, and demanded back the money they had taken
such care to tie up in „Wicked’s“ hands. Correspondence ensued; ended in
Baily repaying to „Wicked“ £25,000 in cash, and giving him bills for the
remaining £25,000, to the total amount he had received from „Wicked“.
„Wicked“ retained in hand the £75,000 in cash, and £35,000 in bonds,
refused to give them up, as he stated that the directors had concluded
their purchase mit ihm on 15 Jan., and that as they had bought
the property as it stood he was not responsible. The directors then
presented a petition to wind up the Co., granted on 10 June, 1865,
Quilter appointed liquidator on 26 July. Shareholders liable for calls,
at least on the bonds in the hands of the London and County Bank … as
there were only good holders of 4000 shares the £40,000 in the hands of
the London and County Bank, represented loss of £10 per share.
Out of the £75,000 paid to „Wicked“, only £5000 had as yet been
recovered. Zusammenfassung von Marx.
Schließen (The same promoters in the Aberaman Iron and Estate Investments Cos., worin durch Urtheil die shareholders entbunden to pay calls wegen fraudulent misrepresentation.) In the prospectus there was no reference to any intervening purchaser or contractor. Obgleich no purchase of the estates made, „Wicked“ returns the money and the bonds, darüber der process in Chancery.
The Money Market Review, 12. Januar 1867. S. 36–38.
Money Investments. Zusatz von
Schließen (Shares) (Panic) (Limited Liability
(Money Market Review.
12 Jan. 1867)
Difficulty to invest money 6 or 700 Millions. Consols not a sufficient field now. Railways securities and Shares of all sorts distrusted.|26
In a recent letter to Times Messrs. Spackman and Sons give these figures:
|Numbers of Cos.||Capital nominally Created.||Capital offered.||Deposits|
|Total 4 years:||876||£373,230,500||£268,156,900||£35,648,640|
These figures show not amount called up on these 876 Cos. irrespective of deposits on allotment. Some of these Cos. have also made allotments since their first issue of shares, whereby the amount of capital offered, or the liability of the public to pay calls, is increased, worüber giebt Spackmann:
|To the capital offered of||£268,156,900|
|Add new issues by existing companies in||1864||35,315,000|
|Total capital offered||£318,862,500|
The new issues of 1863 here omitted; but the liability on account of deposits and calls upon the 876 Cos. at least 320 Millions. Objects of these 876 Cos thus stated:
|Numbers of Cos.||Capital authorised.||Capital Offered.||Deposits.|
|Manufacturing and Trading.||283||£.84,770,000||£64,902,900||£10,114,040|
|Financial and Discount||50||69,350,000||45,750,000||4,391,250|
|Building and Investment||38||13,485,000||9,745,000||1,810,000|
The Investor’s Manual giebt folgendes Statement, worin Foreign Loans, Foreign Cos., Railways etc eingeschlossen:
|Capital created||Capital called|
|1865||Shares. Foreign Loans etc||£.135,735,814||£73,332,876|
|Deduct Spackman’s figures für 1865 und 1866:||83,438,900||14,229,296|
|Apparent balance of foreign et colonial loans, calls etc||£101,585,214||£118,799,299|
Some portion of these calls and subscriptions of 1865 and 1866 were made on the Continent, but the Continental portion is comparatively trifling. Ferner: the statement does not include investments in Great Britain in previously existing foreign securities. During 1865 and 1866 these have been large, particularly in U. States Securities of all kinds. Ferner: these statements of calls made in 1865 et 1866 do not include the large sums invested in limited Liability Cos. which are never brought before the public; nor the calls made by the Liquidators of companies defunct, nor money raised on Lloyd’s Bonds. Probably the calls made upon investors in limited Joint Stock Cos., foreign und other securities during 1865 and 1866 much more than £133, und die commitments of British public contracted within past 4 years very much more than 320 Mill., probably nearer 500 millions. … Corporate breach of trust ought to be held criminal, as in Wilkinson’s case. As the matter stands, a director of a Joint St. Company or an Auditor has imagined that he may indorse with impunity almost any swindle whereby honest investors may be robbed of all they possess, to the amount of millions, while a poor clerk who steals a £5 note is transported.|
The Money Market Review, 26. Januar 1867. S. 118.
Schließen (Demand und
Entdeckung neuer nützlicher Anwendbarkeit
The American papers, referring to the statistics of the production of the oil regions during 1866, hope that science may do something to bring petroleum into use for other things than illumination. Yield of 1866 so far in excess of demand that it is calculated the present year commenced with a surplus on hands in the various markets of the word world of 733,000 barrels of refined, „which will have to be consumed before the production of 1867 can be brought forward“.
The Money Market Review, 26. Januar 1867. S. 108.
The State of Minnesota.
Zwei Hauptgründe des quick development of U. St: 1) rich land und the facility with which possession of it can be obtained; 2) extraordinary advances made of late years in facilities for internal and external communication by railway and steamboat.
The Co. of the St. Paul and Pacific Railway Co (Minnesota) has, by legislative grant from Congress to the State, and from the State to the Co, about 1,600,000 acres of the most desirable land in the State. They may be bought for immediate payment or on credit; and actual settlers may locate on lands not yet subject to sale, yet with an indefensible title. Germans have flocked to Minnesota. Minnesota chiefly settled by Germans; 4th State in the order of area in Union, and 30th in population, nach Census von 1860. Danach:
|Area. □ miles.||Population.|
|Minnesota:||Flour and Meal. Value||$500||$1,310,000||2619|
|Wheat||1401 bushels||2,195,812 bushels|
|Wool||85 lbs||22,740 dtto|
|Peas and Beans||10,002 bushels||18,802 bushels|
|Butter||1100 lbs||2,961,591 lbs|
|Value of farming implements||15,981 dollars||1,044,009 dollars|
|Value of live stock||19,403,662||10,245,079|
|Acres of Ploughed Land.||1900||433,276|
|Area: □ 83,000. Population: 173,855|
Her prairie grasses are as well adapted for the grassing as her corn and other grains for the fattening of cattle, as those of Illinois or Iowa. From the northern boundary of Iowa, itself a sheep breeding State up to St. Paul, the country is perfectly adapted to sheep husbandry. The growth of wool may be made almost next to that of wheat. Only danger, that the increase of production may exceed the means of transport.
The Money Market Review, 2. Februar 1867. S. 144.
Rate of Discount in 1866.
- Amsterdam: Year 1866 opened mit 8% discount rate; Second week 61/2, Eighth Week 6, Eleventh 51/2, Eighteenth 6, Nineteenth 61/2, Twenty seventh 7, Thirty Second 61/2, Thirty Third 6, Thirty Ninth 51/2, Forty Third 5, fifty first 41/2.
- Berlin. 1st week 7%, 8th week 6, 16th week 7, 19th week 9, 29t week 7, 30 week 6, 32 week 5, 44 week 41/2, 51 week 4%.| 28
- Brussels: Commencement of year 5%, 9th week 4, 20th week 5, 22nd week 6, 33d week 4, 38th week 3%.
- Frankfurt: 1st week 6%, 2nd week 7, 3d week 51/2, 4th week 5, 7th week 41/2, 10th week 4, 12th week 41/2, 16th week 5, 19th week 6, 20 week 7, 26th week 6, 33 week 5, 34 week 4, 41 week 41/2, 46 week 31/2.
- Hamburg: 31 changes in rate of discount during 1866. First quarter fluctuations from 41/2 to 7%, Second quarter von 51/2 to 81/2, Third quarter von 31/2 to 61/2; Fourth quarter von 31/2 to 41/2.
- Paris commenced mit 5%, 7th week 41/2%, 8th week 4, 12 week 31/2, 19th week 4, 30th week 31/2, 35th week 3%.
- London: 1st week 8%, 8th week 7, 11th week 6%, 18th week 7, 19th week 9, 20th week 10%; Continued to 33d week 8%, 34th week 7, 35th week 6, 36th week 5; 39th week 41/2, 45th week 4, 51st week 31/2.
The Money Market Review, 16. Februar 1867. S. 205/206.
Minimum Rates of B.o.E. Minimum Bankrate of 3% (8. Febr. 1867)
(Money Market Review)
B.o.E. Rate ranged from 4 to 5%, not more nor
less, during 134 years von 1704 to 1838 Zusatz von Marx.
Schließen (we(?)nn usury laws abolished.) 1839 6%, fell almost immediately to 5, and then to 4, and in 1844 to 21/2%. Nach den Tables of McHaffie and the „Investor’s Manual“,
Average Rates of Discount of Bk.o.E: 1864 71/16%, 1865 4.74%, 1866: 7%, average of the 3 years more than 61/4%. In 1857 average 62/3%, in 1847 51/3, in 1856 51/2, but before 1864 never average of more than 7%, and never any 3 consecutive years with average of more than 6%.
Maximum Rate of discount of B.o.E. from 1704 to 1846 never more than 6%, only once and for a very short time, minimum mostly 4%. Since 1844 minimum 2 und maximum 10%, while on the average Bankrate gradually increased. During the last 3 years minimum average rate of B.o.E. higher than maximum of the 140 years before Act of 1844, and much higher than the average of any 3 years that ever passed before.
Andrerseits niedrigeres Minimum.
1845 and chief part of
with a concomitant mania for railway speculation. 1847 panic mit
Schließen (!) minimum maximum of 8%. (few would lend and few could borrow on any terms.) 1848 3%, 1849, 1850, 1851, 1852 fluctuated between 2 und 3%. Next interest rose continuously until 1857, other panic; average minimum 62/3% mit maximum of 10%. 1858 minimum of 21/2%, averages of 1858 und 1859 3% und 2.66% respectively. After 1859 the minimum average rate rose. It was 1860 41/5%, 1861 51/6%, 1862 27/12%, 1863 45/12, 1864 71/16, 1865 4.74% und 1866 7%. After 1857 panic recovery much more rapid that than after 1847, and the average value of money much higher in succeeding years. In 1866 extreme of dear money as in 1847 et 1857, und in 1867 extreme of cheap money as in 1848, 1858 sq.
The Money Market Review, 2. März 1867. S. 267/268.
of successful Joint Stock Cos. (Money Market
Review 2 March 1867)
African Merchants Co, just declared dividend of 15% p.a., with rest (of profits) of £33,000. Shares £10 each, 3£ paid, market price a merely nominal premium.
Anglo-American Telegraph Co just paid dividend of 10% „on account“, being at rate of 20% p.a., £10 shares fully paid up, with about now £15.|29
Birmingham Financial Co 10% dividend p.a. Shares £20, £5 paid, to be had at considerable discount.
Berlin Waterworks Co, paid just dividend 8% p.a.; shares with £10 full paid, at a nominal premium; City of London Brewery Co dividend 9% p.a. Price of the £100 stock is about £130. The Electric and Telegraph Co 10% dividend. Price of 20£ stock about 130l. Forestreet Warehouse Co dividend of 10%. Price of 20£ share, 12 paid, is about par, i.e. 12£. Lion Brewery Co dividend of 8%. The 25l. share, with £10 paid, at small discount. London General Omnibus Co pays just 71/2% p.a. Price of 4£ share mit 4£ paid up, is about 31/4. Westminster Palace Hotel Co dividend 6% p.a.; 10£ share, mit £10 paid, is worth about £7. Alhambra Co dividend of 15% p.a. (average of past year 171/2%). The gross revenue of this undertaking 1866 no less than £39,237, an almost incredible sum for this sort of undertaking. York-street Flax spinning Co, Dividend and bonus of 20% p.a., mit reserve of undivided profits of £100,000, which is equal to all the capital paid up. Price of the £50 share, mit £10 paid, about £20. John Crossley et Sons (lim.) has just issued his annual report, dividend for 1866: 20% p.a. 15£ share, with 10£ paid, about 20£.
The Money Market Review, 23. März 1867. S. 357/358.
Full Board of Trade Returns. 1864. 1865. 1866.
(Money Market Review 23 March
Diese numbers of course far from literally conclusive. The imports represent nearly all the commodities brought into the market at the computed values of the importers, and that, too, with continuously falling markets during the later period, and rising markets previously. The exports represent in value merely the articles of British et Irish manufacture which are enumerated at the declared values of the exporters, excluding all raw produce brought into the market and again exported. Still shows that exports increase relatively more rapidly than the imports. Ferner folgendes über den Charakter der Imports:
|Deduct raw cotton||78,203,729||66,032,193||77,521,406|
|Deduct silk, raw and manufactured.||12,925,347||17,692,499||15,894,333|
|Deduct sugar unrefined.||14,404,150||11,302,624||10,799,591|
(Hierzu ist zuzufügen aus den Statistical Abstracts Import von Corn und Cattle etc)
The values of our merchandise imported during the last 3 years as shown above have not increased much, and the increase is attributable chiefly to silk, tea, and wool. The import of raw cotton has not varied much during the 3 years, constitutes about 1/3 of the whole, amounting in the 3 years to the astounding sum of 222 millions £. Then putting together the few items of raw cotton, sugar, silk, tea, wool, timber, they comprise 6/10 of our entire import values, or in round numbers 423 Millions out of 684 millions in the 3 years.|30
|Deduct: Cotton Manufactures||45,799,090||46,923,384||60,685,022|
|Deduct: Linen Manufactures:||8,172,813||9,156,990||9,576,163|
The export values risen from 1601/2 mill. in 1864 to 189 mill. in 1866, or about 29 mill., of which cotton manufactures constitute more than 1/2, or nearly 15 Millions. Aggregate export values of the 3 years in round numbers 515 millions, of whic which cotton manufactures constitute 153 millions, or about 30%.
The Money Market Review, 23. März 1867. S. 360/361.
Indian Exchanges. (Past and Present) Money
Market Review 23 March 1867.
When the merchant prices of Leadenhall Street held rule over our Indian Possessions, they ruled in a great measure the „Course of Exchange“ with and from the 3 Presidencies. 3 to 4 millions £ were required annually for home disbursements, which, after the commercial privileges of the Co. had been put an end to, was generally raised by 60 days’ sight drafts on the Treasuries of Bengal, Madras, and Bombay. These drafts were offered to the public at such rates as the authorities of Leadenhallstreet deemed it proper to fit fix. The rates of exchange for such undoubted paper varied from about 1s. 10d. to 2s. 1d. per rupee, according to circumstances, and, until the overland route became available for the conveyance of specie and bullion to India, this mode of remittance was almost the only one that could be resorted to, except bullion remittances, via the Cape, occupying a period of 3 to 4 months.
The fixing of the rates of exchange by the old East India Co. was a preventive to speculation and uncertainty in Indian exchange, such as exists under the present arrangements of the Indian Council. The old Co, virtually declared to Public: „Here are our drafts on India, at a certain price; take them or not, as you think proper.“ The India Council, after feeling the market, and ascertaining the probable demand, in secret fixes a minimum rate for each Presidency, and invites tenders for bills to be sent in on or before the 1st and 3d Wednesdays in each month. Of course the highest tenders the most successful, tenders at the same rates receiving pro rata allotments, according to the amount of the bills tendered for and to be drawn. The sums allotted to the respective applicants are required to be paid for on or before the 15th and 29th of each month. No tenders are admitted for less than 10,000 rupees, nor drafts drawn for less than 5000 rupees each. The rate of 1s. 10d. per rupee, at which the capital of the Indian railways should be received at the Indian Treasury in London, was fixed by the Old East India Co under contract with each railway, favourable to the railways, rate below what in ordinary times prevails.
The exceptional circumstances connected with the Bombay Presidency, for the last 3 or 4 years – arising from the great increase of wealth in the first place, and the speculative mania which set in at Bombay, followed by numerous failures of banking and finance Cos., both in London and India – reduced, for the time, all calculation of exchange dealing to a matter of great uncertainty, risk, and frequent fluctuation. Not 6 months ago, the drafts of the Indian Council on demand were almost unsaleable at 1s. 10d. to 1s. 101/4d., and the Indian Gvt were compelled to resort to the unfavourable expedient under ordinary circumstances of importing gold from India, and the still more unprofitable and obsolete mode of supplying themselves with funds, by the importation of silver.
The opening of banks in London (whether as head offices or agencies), in connection with India, has tended to equalise exchange, and afford greater facilities for the negotiation of mercantile drafts against outward shipments, as well as for effecting remittances by means of bank drafts, than previously existed. The exchange for of money on this side for money to be paid in India, after expiry of 30 or 60 days’ sight, involves question of two |31 different currencies. The Bank granting drafts must make provision for them at a remote place, either by sending out funds, or redrawing from India. The currency, in which provision has to be made for drafts on India, in the absence of other modes of remittance, is silver rupees, coined in India, not be had to any extent here. The silver out [of] which it is coined is all shipped in bars, Mexican dollars, or 5 fcs pieces, from the country or from France. Hence the actual cost of placing the money to be given in exchange in India for money received in London has always to be clearly ascertained from this source, mainly, which suffices to a great extent to regulate the course of exchange between the 2 countries under ordinary circumstances. During the late crisis and the high rates of discount the silver shipments to India were almost nil, there being as little demand for this metal as for the Indian Council or bank drafts.
Commercial bills against indents or shipments to India from a large portion of bank remittances against their own drafts drawn, and are taken at a difference, according to quality, to yield a larger profit than silver remittances, allowance being made for corresponding risk. Bills drawn on this side against outward shipment have almost invariably a currency of 60 days’ sight, while on the other side bills drawn against produce shipped homewards are drawn at 6 months’ sight. This custom had origin mit Old East India Co; first 10 months’ date from India, then 8, then 6 months. The contraction in the currency of bills drawn from India has no doubt arisen in great part from accelerated communication, via Cape, and the overland route. Faster sailing vessels. Also greater expediency through the aid of machinery and other appliances in loading and unloading cargo at the ports of shipment and discharge than 20 or 30 years ago. Andrerseits even 6 months bills often mature before the produce they represent can find a market. No such usance in the Australian trade as 6 months’ sight. All shipments of wool and other produce are drawn against at 60 days’ sight, or, at the utmost, in exceptional cases, at 90 days’ sight. Average passage for sailing vessels from Australian colonies is less than from India, but nothing like this difference. Australian Exchanges remarkably steady compared mit Indian ones, from the shorter usance, and the moneys of the 2 countries nearly the same, the rates varying from about 11/2 discount to 11/2 premium.
The Money Market Review, 30. März 1867. S. 389/390.
Railway Discredit (30 March 1867. Money
is at its acme. The crisis more damaging to railway credit than we anticipated. Extent was not known to which railway financing had gone, aided by the newly created capital of finance Cos. Zahlungsfähigkeit of Great Eastern, Great Western, Manchester, Sheffield, and Lincolnshire, and North British.
The Money Market Review, 30. März 1867. S. 390/391.
Railway Solicitor Bills. Why not have salaried
solicitors? (30 March 1867 Money Market
Our railways have all had their origin in expensive Parliamentary
campaigns. The cost of the land required for the
lines and stations, and the enormous additions made
to prices paid to noble lords and influential land owners to buy off
their opposition, or enlist their Parliamentary
support, swallowed up millions of capital in excess of the
amount legitimately required. Then, the making of the
great original trunk lines of railway had called into being –
and a very active state of being too – numbers of
engineers, surveyors, and contractors, whose business it became
to stimulate as well as to supply the public want of additional railway
accommodation, and hence a perpetual succession of subsidiary and branch
lines. Every one of these became the subject of a fresh Parliamentary Campaign, with a little
army of solicitors, Parliamentary agents, and counsel to support
it, and another little army of
solicitors, Parliamentary agents, and counsel to
oppose it. Jedes Board of directors suchte to monopolise as
many of these schemes as possible, and oppose those of every either Co.
and the railway solicitors, with the true
instinct of their profession, stimulated and |32 encouraged
this greedy monopolist spirit in their respective boards, for every one
of these annual campaigns became the certain source of a huge addition
to their annual bill of cost. The amounts expended in these
Parliamentary Campaigns during the last 30 years almost
incalculable. Absolutely ruinous system of railway cos. in employing
„eminent firms“ and „influential solicitors“, instead of employing able
men at fixed salary. It is not uncommon for the solicitor bills of a
large railway Co. to amount to £40,000, £50,000 or £60,000 a year; dieß
nicht das Ganze der legal expenses, for most railways
employ one of the great firms of „Parliamentary
agents“ to do what one of their own clerks could do just as
well. Diese Parliamentary agents are entitled to make out
separate bills of large amount, and arrangements are generally made
under which the solicitors become participators in the profits of the
Parliamentary agents. Solicitors might be had at fixed
salaries of £1000 bis £2000. Take the
„eminent firm“ of Msrs. Freshfield and
Newman, solicitors to the Bk.o.E. and many other of the
most eminent mercantile establishments in the City. Of what use were
they to the
London, Chatham and
, who paid them about 50,000£ a year. They received within the last
few years closely to1/4 Mill. £ for their own charges, not including the amounts
paid to other parties. Zusammenfassung von Marx.
Schließen Unter dem „responsible“ advice dieser und ähnlicher solicitors all das illegal swindling der boards of Railway Directors carried on.
The Money Market Review, 30. März 1867. S. 391/392.
Dealings in Bank shares. (30 March. ’67.
Money Market Review.[)]
It is very well to say that, as time bargains are entered into for a fortnight only, they must be entered into afresh at the expiration of every fortnight; but there are such things as „contangos“ and „backwardations“, with the aid of which a speculative account may be kept open for months. Bear accounts in bank shares, it is well known, are kept open for several months during the recent pressure, by „carrying them over“, and that part of the Stock Exchange practice enabled a parcel of unprincipled scoundrels to prompt the depositors of some banks to demand immediate payment of their money, whereby failure of the Bank effected.
The Money Market Review, 30. März 1867. S. 392.
Stock Markets. (Week ending 30 March
Again almost general fall in English Railway Stocks, in which the daily transactions, bona fide, and speculative, important. The disgraceful revelations on London, Chatham, Dover and Co. and the serious financial embarrassments of the Great Eastern, Great Western, and North British lines. Unfortunately, the halfyearly accounts have shown at the same time diminished profits in the face of increasing receipts. Fearing further reduction of their income, many holders have sold, and the decline in prices has increased the anxieties of the debentures holders. Zugleich strike der engine drivers und firemen threatened throughout the country, has actually occurred upon the Brighton line.
The Money Market Review, 20. April 1867. S. 473/474.
„Railway Accounts, A letter to Lord Redesdale. By John B. England.“ (London 1867) Money Market Review (20 April 1867.[)]
England giebt folgendes:
|Ordinary Stock||Loans and Preferences.||Total Capital||Ordinary Stock||Loans and Preferences||Total Capital.|
Also in a comparatively small district Railway
Capital raised in 7 years by 30 millions Zusatz von Marx.
Schließen ! (verte)|
|New York Central||£7,700,000||£1,250,000||£.7,800,000||£2,900,000|
|Philadelphia et Reading||4,800,000||600,000||5,100,000||2,200,000|
|Great Western||£.27,000,000||£1,800,000||+ £45,000,000||£3,600,000|
(Eastern Counties Proportion)
|+ Besides £270,000
a-year rent charges
England explains, that it is the practice more or less with all British Railway Cos. to pay out of capital charges for reproduction and maintenance and other matters which ought to be paid from revenue, and that the closing of a capital account would in such cases be almost equivalent to the closing of the dividend.
The Money Market Review, 27. April 1867. S. 499.
The Bullion Movement. (April 27, 1867 Money
|9 Jan. 1867||Bullion and Coin in both Bank departments:||£19,438,000.|
|27 March 1867||19,627,232|
|24 April 1867||19,336,927|
|4 September 1852 (year of the first full development of Australian Gold discoveries||21,838,000||(quarterly average of the weekly amount of bullion in Bank, against average active circulation for the same period of £23,982,000)|
A great cause for the large stock of gold in the Bank, is the continued absence of the usual demand for silver for India. A slight temporary movement took place in that direction 2 or 3 mails ago, consequent on reports by telegram of a considerable rise in the exchange on England. The demand immediately supplied by shipment of £200,000, chiefly from Continent, without any marked effect being produced on foreign exchanges, or causing shipments of gold from this country to France. The demand for India has again, to a great extent, subsided.
With such a large stock of gold, and no probable outlet for it, the Bankrate seems likely to undergo further reduction at no distant period.
The absorption of money in investments in securities to a greater extent would temporarily relieve bankers of a portion of their surplus funds, but not materially affect the Bank of England, as regards its stock of gold, more particularly as the Bk. o. France is overburdened with gold. Circumstances beyond the pale of our home transactions must supervene to bring about the exportation of gold. … Exports of gold at this moment taking place in payment for stock which foreign holders, frightened at the idea of war, have precipitately sent here. Withdrawals of gold from the Bank for this purpose will only go on for a few days.
The Money Market Review, 4. Mai 1867. S. 526/527.
Week ending 4 May 1867. Railway
The Money Market Review, 11. Mai 1867. S. 555.
The Stock Markets. 10 May 1867.
Friday, 10 May 1867 has
been the very antithesis of Friday, 11 May
1866. The turn for the „speculators for the
Zusatz von Marx.
Schließen (!) to have begun, railways, of course, excepted.
The Money Market Review, 11. Mai 1867. S. 559.
Movement of gold.
|First quarter of 1867||imported £2,153,182,|
|The largest imports were from Australia,||sent £1,168,510||(first quarter of 1867)|
|1,309,178||(corresponding 3 months of 1866)|
|From United States Gold receipts:||£210,524||(to March 31, 1867)|
|Exports of Gold from U. Kingdom||£1,471,794||(to March 31, 1867)|
|Von diesen gold Exports largest to France:||£1,078,848||(to March 31, 1867)|
The Money Market Review, 25. Mai 1867. S. 607.
(17 Years ago) (Money Market Review
25 May 1867)
Vor 17 Jahren a committee of investigation into affairs of the Caledonian Railway Co. made a report, in which the same outline of facts was given as that which is now reproduced, though at this moment not in one case but in many.
Even before opened as a through line from Carlisle to Edinburgh and Glasgow, the Caledonian Railway was committed, by the policy of the board, to a host of leases and guarantees, which, under any circumstances must have absorbed the whole revenue of the line. The Investigation Committee directly charged the directors with personal interest in these guarantees and leases, supported by the significant fact they brought to light that, while the Caledonian Railway was undergoing this process of insolvency at the direct investigation of the board of directors, the directors themselves reduced their holdings in Caledonian Original shares to a bare qualification. Astonishing that after so many years’ experience of interested antagonism between Directors et Shareholders, the same wrong should be perpetrated up to this hour. The Caledonian 50£ share of that day fell, upon the report of this committee, to something like £6 or 7, or to about 12 or 14% of the money paid; but since that time its value has risen to a great deal more than |35 the shareholders paid originally, and the £100 stock at one time touched nearly £140. Dieß dadurch hervorgebracht, that the injudicious or iniquitous bargains were for the most part cancelled. (Repudiation.)
The Money Market Review, 25. Mai 1867. S. 608/609.
Debt. (Money Market
Review. 25 May 1867.)
Schließen Debt ist nach diesem writer das wahre Geheimniß des Reichthums, Civilisation, and so forth!
The debts of Gr. Britain et her Colonies: 945 Millions St; in British Railways et Canals: 500 Mill.
£. St; Joint Stock Banks: 85 Mill. £. St. Finance Cos., 15 Mill. £. Other Joint Stock Cos 70 Millions £; zusammen debt
and investments of British Empire,
public and private, in a marketable form, about 1715
Mill. £. Then the debts of the Foreign
States, contracted chiefly within the last half century,
estimated at 2,566 mill. £.; Aggregate: 4,281.
Mill. £. Foreign railway capital hier nicht
included (much davon British). Altogether, as a
mere estimate, world’s debt 5000 or 5,500 Mill. £. St. All this
virtually created since commencement of present century und
Debt increases now much more rapidly. A few years ago Egypt owed nothing, Turkey very
little, Italy and Mexico were comparatively
small debtors, France owed in 1860 less by 125 Mill. St., and U. States has entailed debt of 670 Mill. £. St. (federal and
confederate) Kommentar von Marx.
Schließen Wenn das kein „Progress“ ist, meint dieß Orakel des Money Market, wo the devil soll Progress herkommen? Half the debt of the universe is ours Zusatz von Marx.
Schließen ! Here lies one secret of the rapid progress of the Anglo-Saxon race. We trust our colonies with our money … they apply our money to useful and reproductive purposes.
The Money Market Review, 1. Juni 1867. S. 632.
Committees of Investigation. (Money Market Review June 1.
At recent special meeting of the Great Western Railway shareholders, a very intelligent shareholder, referring to the appointment of a committee of inquiry or investigation said: he had a great faith in committees, they were generally the result of some previously packed arrangement, when such committees issued their reports, they seldom gave really valuable information, and resulted in the appointment of the committeemen as directors. There is much general truth in this outline of railway investigations. As a rule they have been little better than a farce, and the truth has been bought off by a set seat in the board-room, or some other method by which damaging facts may be concealed or compromised.
The Money Market Review, 1. Juni 1867. S. 633.
Investment of Money Zusatz von Marx.
Increase in their Price) (Money
Market Review June 1. 1867)
Some part of the existing supplies of capital – very small part, indeed – invested in selected things, chiefly Government securities and guaranteed securities of colonial dependencies. Hence a considerable advance during the last 3 or 4 weeks in the prices of the soundest stocks. Within that period, f.i., the value of the Funded Debt has increased no less than £23,000,000. The fundholders are richer by that amount than they were a few months back. In Railways during the last fortnight average rise of fully 5%. This change means about £5,000,000 in value. Vastness of their unemployed resources has compelled B.o.E. and B.o.F. to reduce their rate of discount to 21/2%. Indian Gvt Securities during the month have advanced fully 2%. The most solid securities are first selected after the country has emerged from a collapse. Present Plethora.
The Money Market Review, 1. Juni 1867. S. 634.
Pre-Preference Railway Stock. The North British Bill before
Parliament. (Money Market Review June 1
In defiance of all expostulation, the directors of the North British Railway Co. persist in promoting their bill before Parliament for raising £1,875,000 by „pre-preference“ stock – that is, a security which, in order of priority, is to |36 override all other priorities excepting debentures or mortgage-bonds. It would amount to wholesale confiscation of existing right. Not yet even shown that this little less than 2 millions required for any legitimate purpose. No doubt, wanted for somebody – lawyers, perhaps, or contractors, or Parliamentary agents, or bankers … their money is to be raised in somebody’s interest, and that interest is not the interest of the existing proprietary … If the doctrine of pre-preference is permitted at all by Parliament, where is it to stop? Lawyers, contractors, Parliamentary agents, and bankers have only to run up long bills, and pre-preferences may be created ad libitum. The last priority holds good until the next is created; and then „the devil take the hindermost“.
The Money Market Review, 1. Juni 1867. S. 634/635.
Westminster Bank. Its Progress. Proposed issue of new
shares. (Money Market Review June 1,
On 1st April, 1864, business of James Loyd et Co purchased by the London and. and Westminster. On
On 30 May 1867 directors of London and Westminster make known, through the medium of the press, intention to propose at shareholders meeting in July (1867) increase of £1,000,000 to the paid up capital. At present Nominal Capital £5,000,000, in 50,000 shares, at £100 each, of which 1 Mill. £, or 20£ p. share, is called up. Besides, Reserve fund of £480,000, entirely formed by banking profits, reserved from time to time, except £40,313. They propose to double the subscribed capital to 10 Mill. and the paid up to 2 Mill.
Bank began business in March, 1834, with paid up capital of about 50,000£. By the end of that year 17,713 shares had been subscribed, and 15£ called up on each, the amount actually received being £182,255. April 1836 the last call of £5 per share was made, and a new issue of 9,333 shares took place at a premium of £4 10s. each. In 1841, 10,000 shares were offered at par, and taken up, with the exception of a few sold at a premium in 1842. The last addition to the capital in 1847, 20 years ago, when 10,000 shares issued at par. (The items under the heads of deposits, in following table, money really deposited, payable on demand; the acceptances of the London and Westminster have always very properly been kept distinct.)
|Paid up Capital.||Deposits (Circular Notes etc)||Increase of Business|
|Year ending December 1836||£597,255||£643,332|
|For London and Westminster||6.28%|
|London and County||7.33|
|London Joint Stock||9.23|
A paid up capital of 2 mill. and reserve of 1 Mill. für die London und Westminster would be equal to 12.72 of the business now transacted.
|Net Profits.||Dividends paid||Rate of dividend p. ann.||Profits reserved.|
Average annual net profits of the last 7 years have been 321/4%, dividend paid 251/2 p.c., amounts undivided nearly 63/4%. The shares of the bank have for 3 years past stood in market at average of £95 each, equal to £75 premium, whereas the 50,000 new shares are to be offered to the shareholders at £30 each, or only 10£ premium.|
The Money Market Review, 1. Juni 1867. S. 659.
Unprecedented Accumulation of Gold. (June 8, ’67
Money Market Review)
This week, B.o.E. holds nearly 21 Mill., B.o.F., 341/4 Mill. gold, together more than 54 Mill. Between 1856 and 1866 the maximum amount of bullion and specie in B.o.E. about 20 Mill. £, and in B.o.F. about 25 Mill. Maximum Discount Rate (i.e. the rate at which these great banks are content to lend money on the best bills) therefore put down to 21/2%. Commerce does not care to borrow money just now at 21/2%, though a few months ago it clutched it greedily at 10%.
The Money Market Review, 8. Juni 1867. S. 661.
The Rebound in the Stock Markets. (June 8, ’67,
Money Market Review)
There seems to have been a good deal of „bear“ slaughtering of late … Distrustful investors began to buy Gvt. Securities, and Indian Stock, then colonial securities, then dividend paying foreign stocks, now they are even absorbing our railway investments.
The Money Market Review, 8. Juni 1867. S. 661/662.
Pre-Preference Stocks. North British Railway
(June 8, ’67 Money Market
Review) (H. o. Commons).
The Expiring H.o.C., of course, ready for every infamy. That House passed the „North British (Carlisle Deviation) Railway Bill“, by which it is empowered to to create „Pre-Preference Stock“ of £1,800,000. The H.o.C. condones past misconduct and grants a premium upon it in future.
The Money Market Review, 8. Juni 1867. S. 662.
The War between Railway Shareholders and the Board
’66 ’67 Money Market
The battle between railway officialism and railway proprietorship is still waged with ever increasing violence, but … up to the present time officialism seems to have the upper hand. So in Meeting 3 June (adjourned später until 13 June durch die shareholders) der Midland Railway Co. Directors insist to wage war upon London und Northwestern durch competing line to the Scottish border (to cost on paper 2, in reality at least 4 Mill.); they make no concession as to proposed amalgamation mit Glasgow and Southwestern Co., by which the Midland Co. literally guarantees minimum of 4% upon a capital of something like 8 Mill. £.
The Money Market Review, 8. Juni 1867. S. 659–661; 15. Juni 1867. S. 694.
The Report of the Parliamentary
Committee on Limited Liability.
Schließen (Watkin) (Société en commandite“ commandite).
Marx’ Worte. The Money Market Review,
8. Juni 1867, S. 659: „[...] we must say we have persued it with
considerable disappointment.“ Ebenda, S. 661: „insufficient
Schließen Miserable thing. Watkin Chairman of it. Wahrscheinlich Marx’ Worte. The Money Market Review, 15. Juni 1867, S. 694: „I observe that the Committee also report in favour of the unlimited liabilty of the executive portion of a company, coupled with the limited status of the non-executive members. This recommendation is, in fact, a modified form of the French ‘commandite’ system [...]“
Schließen That a Co. may be advantageously established en commandite, or with no liability beyond the paid-up capital, the gerants gérants or managers being the additionally responsible parties, is know from French etc
The Money Market Review, 15. Juni 1867. S. 693/694.
British Mining. The Cost-Book System etc
(Money Market Review 15 June
In the whole circle of share investments mines unquestionably the most speculative. Copper at 100£ and Tin at £115 healthy speculation, at recent prices das Gegentheil. For some time past British mining has been under a cloud, owing to disturbed state of markets for minerals and metals. Coal and iron, copper and tin, all heavily smitten by European political complications and Panic-crisis. Pressure more severely felt in Cornwall, Devon, and North Wales than in South Wales, Durham, and Northumberland. The minerals with which the huge furnaces of the ironmasters fed are geologically more concentrated than those which supply the furnaces of the copper smelters of Swansea, and the tin and lead smelters at Cornwall. Much greater still, moreover, required for the production of 100 tons of sulphuret of copper, or black tin, than like quantity of iron ore or coal. A good vein of iron stone once reached may and probably will last for a generation, but a lode of copper-ore is quite a different thing. A few fathoms of a good vein, comparatively speaking, will amply repay the miner for such time and labour expended in patient exploration. It is the coyness of these more precious metals which renders metalliferous mining so attractive to speculators, and it is to their possession that the county of Cornwall owes its pre-eminence as a mining |38 district. The state of the metal market is, therefore, a matter of prime importance to the Cornish miner … . … In mining, where it is impossible to predicate whether 500 or 5000£ may be needed, and where the unremunerative expenditure of to-day may be superseded by the profitable returns of to-morrow, a fixed nominal capital (wie bei limited liability Cos) seems to be singularly out of place. – Not one of the dividend-paying mines either in Cornwall or Devon is constituted under the Cos. Act of 1862, that distinction being exclusively reserved for the „progressive“ or non-dividend concerns.
The Money Market Review, 22. Juni 1867. S. 715–717.
Railway Co. Report of Committee of
Investigation. Money Market Review
22 June ’67.
Brighton Railway Scandal shows greater moral delinquency than even London, Chatham and Dover . Falsehood and deliberate concealment and suppression of facts, practised upon shareholders, public, and Parliament itself, not in a single case only, but habitually and systematically, during a period of several years. Not only Leo Schuster, the late chairman, and the directors, but the Officials of the Co., have been implicated in these transactions, and become obnoxious to these imputations. The main charges against the directors are grounded upon unimpugnable Acts of Parliament, and legal and other documents, and upon their own printed and published reports. The Committee of Investigation presided over by Lord Westbury, ex Chancellor. Report over 50 closed folio pages. During Laing’s chairmanship, from 1849 to 1854 incl., the increase in the capital of the Co. only £735,000, and the increase in net profits £125,000. From 1855–1866 (Leo Schusters Regirung) increase in Kapital £8,072,000, whilst increase in net profits £113,000 only. This increase of Capital to £8,072,000 raised almost entirely by preference stocks and debentures, by which the revenues of the Co. subjected to a permanent charge of nearly £400,000 in order to earn the additional net income of £113,000 a year. The capital at the end of the years was:
|Ordinary Stock||Preference Stock||Debentures and Debentures Stock|
But, in addition to this, the Co. stood committed in March (’67) to fresh liabilities for further extensions amounting to £3,093,000. Nur verhindert durch Zwischenkommen der Shareholders.
But even these figures fail to show the whole truth, for the committee discovered that the increase of 113,000£ in the net income shown by the accounts was to a considerable extent fallacious, da the whole expense of renewals of permanent way and rolling stock had latterly not been charged against revenue, and nearly 1/2 Mill. £, representing interest on outlay on works in progress, had been paid out of capital, thus relieving revenue and increasing dividends. Outlay on Victoria Station and the Westend and Crystal Palace, and some 42 other new lines, of nearly 7 Mill. £ zwischen 1855 and 1860. In The history of the Surrey and Sussex, the Chichester and Midhurst, and the West Sussex Junction Railways, the cennurable censurable conduct of Leo Schuster and the other directors most manifestly appears. In regard to |39 these 3 lines, Peter Northall Laurie, the late chairman, asserted and published in his letter to the proprietors of 13 April (’67) „that each of them was promoted originally by independent parties, without the concurrence and assistance, and against the wishes of the Co“ und daß nur feeling it [to be ] the interest of the Co. daß sie nicht should fall into hostile hands, die directors „submitted proposals for their absorption into the Co’s system“. Mr. Laurie, therefore, in 13 April letter „submitted to the shareholders that the honour as well as the interest of the Co. required that these engagements should be fulfilled“. Now, the Committe Committee of Investigation conclusively shows that these statements were utterly untrue. It states:
In regard to the Surrey and Sussex line „the scheme was formed and the Bill originally promoted in the Session of 1864 by Mr. Carnsew, a solicitor who had been previously connected with the Brighton Co. in other lines; Mr. Hood, one of the Brighton Co’s engineers, Mr. Fuller, the Co’s land surveyor, with Msrs. Wilson as contractors“. The Committee publishes in extenso a long letter from Msrrs. Messrs. Faithfull, Son, and Coode, the solicitors of the Brighton Co. which confirms the Committee’s conclusion, viz: „That the Surrey and Sussex line was a sham Company, got up by persons connected with the Brighton Board, adopted by that Board, and palmed off on the shareholders of the Brighton line as a real and independent Co.“ When the bill of this sham Co. had received the Royal assent, Mr. Slight, the secretary, by direction of Schuster, the chairman of the Brighton Co., writes to Carnsew, the solicitor of the sham Co., „that looking to the fact that all the money is to be found by us, we shall infinitely prefer that the Surrey and Sussex board should consist only of members of the Brighton board“. And to keep up the farce, L. Schuster, James Scott, John Nix, Peter Northall Laurie, William Coningham, James Wishaw, and Colonel Barttelot, M.P., were appointed directors, with an allowance of £500 a year; Sir Fred. Arthur and Mr. Lushington were appointed auditors, with £100 a year; Mr. Slight became secretary at 150l. a year; Carnsew and Hood were confirmed in their positions as solicitor and engineer. Yet, notwithstanding all this, the shareholders of the Brighton Co. were told by these same directors, in the report presented at their general meeting a few days after these events, that „the Surrey and Sussex line was promoted by an independent Co, but that the directors had taken such steps as would result in the Brighton Co. being authorised to subscribe towards the Capital of the Surrey and Sussex Railway“. At that moment, as we have seen, they had bound the Brighton Co. to provide all the capital. The same deception was practised upon Parliament also. Msrs. Faithfull were instructed in the ensuing session to take power in a Bill of the Brighton Co. „to contribute 500,000£ towards the capital“ of this sham Co., and that power was taken accordingly. „This deception“, the Committee say, „is the more unjustifiable, as on the 18. May |40 previously Mr. Schuster and his colleagues, as directors of the Brighton, went through the form of sealing an agreement with the same Mr. Schuster and the same colleagues as directors of the Surrey and Sussex for an entire amalgamation of the two Cos.“
That agreement, however, the Committee state „was unknown to the shareholders when they sanctioned the subscription of £500,000. It had never been presented to their notice, and the very fact of its existence had only recently been disclosed“. They regret that „it is impossible not to feel that the report presented to that meeting, as well as Mr. Schuster’s speech on that occasion, were purposely designed to conceal from the proprietors the true nature of the engagements entered into, and that those who penned that report, and are responsible for its issue, and more particularly Mr. Schuster, were guilty of a deliberate misrepresentation of the origin and character of the undertaking“. It remains to be seen whether chairmen and directors of a railway, or any other Co., can be permitted to practise such deceit upon their shareholders with impunity. The sum of £277,144 has been abstracted from the funds of the Brighton Co. on account of the authorised subscription to this „Sham Co“. Muß sich zeigen ob diese Schweinhunde can, by a series of gross misrepresentations, practised upon their shareholders and the Legislature, thus divert or misappropriate those funds without being held responsible in a Court of Equity for their repayment. Another matter mentioned in the Report of the Committee, in regard to this „Sham Co“. It appears that „during Mr. Slight’s absence, Mr. Jenkins, a clerk in the Brighton Co’s service, acted as secretary until very recently, when Mr. White, a clerk of Mr. Faithfull’s, was appointed to succeed Mr. Slight, and, a few days before the appointment of the Committee, removed all the books and papers from the Brighton Company’s Office“. Mssrs. Faithfull were the responsible solicitors to the Brighton Co, were originally connected with the „Sham Co.“, and were parties to its socalled amalgamation with the Brighton Co. These books and papers were the property of their clients, the Brighton Co. How could they remove them?
The histories of the „Chichester and Midhurst“ und the „West Sussex Junction“ Railways auch full of „abundant matter for comment“. To the controversy between Mr. Mackenzie and the Brighton Co. the shareholders are immediately indebted for the investigation. At the close of 1866 the Union Bank not only refused any further advance to the Co., but were pressing for a reduction of the existing balance. To raise money for this purpose, Schuster, through Mssrs. Scrimgeour, the Co’s brokers, induced Mr. J. T. Mackenzie, on 15 January 1867, to purchase £300,000 of their preference stock upon the express „condition that no further stock was to be sold, directly or indirectly, by the Co. for 6 months from that date“. On the faith of that contract, Mackenzie advanced some £200,000 to the Co., and he then discovered that, in breach of that contract, Mssrs. Scrimgeours Scrimgeour, the brokers, had themselves been supplied with £33,000 of stock by the Co. on the day of its date, that the Union Bank had |41 at the same time an open power of sale over £700,000 at 30% below par. Mackenzie, therefore, refused to carry out his contract, in consequence of the directors having committed a breach of the terms, and the directors instituted legal proceedings to compel him to do so. Thereupon, Mackenzie filed a Bill in Chancery praying for an injunction, and that the contract might be declared void. The matter was subsequently arranged upon terms which leave a balance of nearly £75,000 owing to Mackenzie, and „the Committee are of opinion that, if by this illegal and irregular transaction any loss be incurred by the Brighton Co., the directors are liable to indemnify the Co. against such loss“.
In order to support dividends, the directors paid them out of capital
instead of revenue. At the same time, the proprietary body were willing
supporters of the malpractice. »We Zusatz von
Schließen (sagt Money Market Review)) do not know one single instance, in which railway shareholders do not gladly shut their eyes in order to get dividends.« They play thus into the hands of the directors. Die Brighton Railway has a lot of unprofitable branches – no less than 12 branches – costing 100% to work. Its prospect on 2 or 21/4% dividend, therefore, a mere myth and idle vision.
The Money Market Review, 22. Juni 1867. S. 718/719.
City Buildings Cos. (22 June ’67. Money
Market Review) (Colonial Loans)
These building Cos have, with the aid of the credit and finance cos., beautified and improved our City to an extent which private enterprise could not, possibly, have done; but they have helped, at the same time, to bring about a scale of expenditure in the shape of rent and attendant charges which has acted to some extent oppressively upon the merchant and private trader.
It is to [be] expected that in the present state of the money market new colonial loans will come forward.
The Money Market Review, 29. Juni 1867. S. 739–741.
Schuster’s Reply. (Money Market
Review 29 June ’67.[)]
Most impudent, but mere trash. Abuse and malignant insinuations against
the Committees of Investigations which are „the most favourable mode of
injuring a property, and it might be the most lasting method of
destroying the prosperity which others had build up“. Wahrscheinlich Zusatz von Marx.
Schließen In legitimem Regierungston beschuldigt der würdige Jud Schuster die Investigation Committees as being composed „either of ignorant or designing men“. Vulgar claptrap in Schuster’s style and manner of defence. With all that, he leaves the main facts uncontroverted. Schuster sucht herauszulügen die Surrey and Sussex line als independent undertaking of Wilson, contractor, Fuller etc[.] Bestätigt, in fact, nur die Anklage des Committee. The Bill having passed, Faithfull et Co, their solicitors, wrote to the Brighton Board: „We have much pleasure in formally announcing that this Bill has received the Royal assent, and this pleasure is increased as, by the Bill being passed, the whole of the scheme which we submitted to the directors in June, 1863, has been sanctioned.“ Also: für mehr than 2 years the directors had under their consideration a scheme, of which this Surrey and Sussex Junction formed the last link, and, when the Act for that last link had been passed, their solicitors congratulate them officially.
Schuster, of course, sittlich
entrüstet über die Anklage, daß the Directors Report to the meeting of 29 July,
1865, und Schuster’s speech (as Chairman) on that
occasion were „purposely designed“ to „palm off the sham Co. as an independent Co“. Schuster sagt selbst in his
Reply that „on the 29th May, 1865, we entered into a provisional agreement with that Co., to take over their line,
and your directors and officers became the
provisional Co. for its promotion“. By that agreement and the
subscription contract which |42 they executed in pursuance of
it, as we learn from Faithfull’s letter, the directors not only became
the actual promoters of the Co., but they bound themselves, within
3 months after the passing of the
to pay to Mssrs. Waring all moneys they had paid or become liable to pay
in connection with the Bill, with 5% interest; and to pay Mssrs. Wilson
the expense of the Bill of the previous year, not exceeding £6,800; and
also to pay to Carnsew and Hood and any other persons all their costs in
the promotion of this Bill. On 29 July
(shareholders general meeting) the Directors’
Report stated that „the Surrey and Sussex was promoted by and an independent Co.“, und daß für die
advantage et Security der
Brighton Co, the
directors „had entered into a working arrangement
with that Co. and, subject to the approval of the proprietors,
had taken such steps as would result in this Co’s being authorised to
subscribe towards the capital“. The
directors of the Brighton Co being at that moment the promoters and
directors of that Co. and the subscribers of the whole of its
capital Zusatz von Marx.
Schließen ! Schuster’s speech (29 July 1865) was even more explicit and precise in its misstatements. „An independent Co.“, he said, „went to Parliament for and obtained that line“, and further on: „It was, as I have said, introduced into Parliament by an independent co., totally unconnected with us“, and, after dilating on the advantages of the line, he continued: „On these considerations, therefore, we come to the consideration to make terms with that Co. for working the line (which terms will be submitted to you by-and-by) at a certain percentage“ Zusatz von Marx.
Schuster declares cooly that that ex[-]Lord Chancellors (Westbury) know nothing of railway affairs.
The Money Market Review, 11. Mai 1867. S. 563.
Clearing House. 1839.
|Average of each day of the Week||Average of each days of Week (1839) omitting 4th of each month and settling day.|
The largest amount which passed through the Clearing House in any one day in 1839 was £6,209,900 und the smallest £1,529,700.|
[Bank of England and Money Market. 1867.
|Week ending||1) Circulation Issued||2) Circulation Active||3) Bullion et Coin. Issue Dpt.||4) Reserve Notes||5) Reserve Coin||6) Total Reserve||7) Public Deposits||8) Private Deposits||9) Gvt Securities||10) Private Securities||11) Both Departments Total of Coin and Bullion|
|Week ending 8 May||Thursday. May 2.||Friday. May 3.||Saturday. May 4.||Monday. May 6.||Tuesday. May 7.||Wednesday. May 8.||Total|
|Week ending 15 May||Thursday. May 9.||May 10||May 11||May 13||May 14||May 15||Large increase on May 15 caused by settlement in Stock Exchange.|
|Week ending 22 May||16 May||May 17.||May 18||May 20||May 21||May 22|
|Week ending 29 May||23 May||24 May||May 25||May 27.||May 28.||May 29|
|Week ending 5 June||30 May||31 May||1 June.||3 June||4 June||5 June||Large amount. Settling day on May June 3 (Stock exchange) und Bills due on 4th.|
|Week ending 12 June||6 June||7 June||8 June||10 June||11 June||12 June|
|Week ending 19 June||13 June||14 June||15 June||17 June||18 June||19 June||On 14 (Friday) Settlement day in Stock Exchange und falling due of many Australian bills on Saturday.|
|Week ending 26 June||20 June||21 June||22 June||24 June||25 June||26 June|
|Week ending 8 May.||Week ending 15 May||Week ending 22 May||Week ending 29 May||Week ending 5 June||Week ending 12 June||Week ending 19 June||Week ending 26 June|
|1) Coin et Bullion||I 405,000£||I. 352,000£||I. 768,000£||I. 528,000£||I. £1,140,000||I. 107,000£||I. 272,000£||I 556,000|
|2) Discounts (Loans)||D 700,000||D. 392,000||D 440,000||I 1,380,000||D. 2,240,000||D. 27,000||D 244,000||
No change in Bills discounted
|3) Minimum Rate.||3% England 3%||No change.||No change||21/2 Engl. 21/2||No change|| Diese Angabe nicht in der Quelle.
Ergänzung von Marx.
Schließen No change
|No change||No change|
|4) Notes mit Public.||D 260,000||No change||D 300,000||I 920,000||D 1,120,000||I 290,00 290,000||D 66,500||D 460,000|
|5) Stock of Coin et Bullion||31,638,933£||31,991,379||32,759,000||33,285,000||34,431,635|| Diese Angabe nicht in der Quelle.
Ergänzung von Marx.
Notices to Money Market von week ending
May 11 – June 29 1867.
Week ending May 11:
The Money Market Review, 11. Mai 1867. S. 563.
Schließen Failures: Dent et Co, China, pay, after all, 2s. 6d. in lb, payable only within 21/2 years from 30 June next. Manchester: Stoppage of G. C. Harrison, spinner and manufacturer, Bacup; ditto W. Jamieson, cotton spinner and machine maker, Ashton under Lyne, owing to depression in cotton trade.
Week ending May 18:
The Money Market Review, 18. Mai 1867. S. 590.
Schließen B.o.E: Increase of £114,920 in the stock of precious metals, only owing to return from the provinces, the import and export transactions of the week showing a balance of £40,000 against the Bank. Exchanges: With the establishment of peace a check has been given to the drawing of Continental bills on this country, hence improvement in the Exchanges.
The Money Market Review, 18. Mai 1867. S. 591.
Schließen Mercantile Embarrassments: Harrison (Bacup) pays 5s. in £. Liabilities £30,000.
Week ending May 25:
The Money Market Review, 25. Mai 1867. S. 616.
Schließen B.o.E. Received in imported gold only £120,000; and, hence, increase in coin to £418,791, indicates a strong reflux from the internal circulation.
The Money Market Review, 25. Mai 1867. S. 617.
Schließen Mercantile Embarrassments: Stoppage of 3 underwriters at Lloyd’s. Considerable liab. Liverpool: suspension of large firm in Brazilian trade with heavy liab., ferner: Suspension of Fraser, Trenholm, et Co, American merchants, largely connected with operations in the Southern States. London: Robert Smith et Co, China trade, owing to heavy losses in tea. New York: Watts, Crone et Co liab. nearly £1,200,000; some of the New Orleans Banks will lose heavily. In consequence of the stoppage of this firm, failure announced of Mssrs. Gibbons, Jones, et Co. brokers.
Week ending June 1.
The Money Market Review, 1. Juni 1867. S. 642.
Schließen B.o.E. Increase in precious metals nearly £600,000, wovon nearly £200,000 must have been received from internal circulation.
Week ending June 8.
The Money Market Review, 8. Juni 1867. S. 670.
Schließen B.o.E.: The reduction in the rate [of] discount to 21/2% has failed to bring any addition to its business, as seen from absence of any increase in advance on private securities. Increase of precious metals of £537,043; about 387,000£ received from abroad; remainder represents coin returned from the provinces.
The Money Market Review, 8. Juni 1867. S. 671.
Schließen Mercantile Embarrassments: Failure of Msrs Harford, old and highly respectable underwriters of Lloyd’s. Heavy liabilities.
Week ending June 15.
The Money Market Review, 15. Juni 1867. S. 698.
Schließen B.o.E. discount and loan business further reduction of £223,479 trotz der 21/2 discount rate. Increase in precious metals £376,074, while only £60,000 reached Bank from abroad. Thus Coin must still be returning in large quantities from the provinces, Ireland, and Scotland.
Week ending June 22.
The Money Market Review, 22. Juni 1867. S. 724.
Schließen B.o.E: Discount and Loan business still falling off. Increase in precious metals of £552,370; gold sent in from abroad only £238,000. Difference of 314,370l. due to return of coin from internal circulation and the tills of the bankers.
The Money Market Review, 22. Juni 1867. S. 725.
Schließen Mercantile Embarrassments: The failure of Frys, Rigge et Co, underwriters at Lloyd’s and China merchants originated through a clerk in China having absconded with £53,000.
Week ending June 29.
The Money Market Review, 29. Juni 1867. S. 750.
Schließen B.o.E: Owing to the increase in the demand of money, usual at this period of the quarter, the advances on private securities have risen by £1,581,628, but, owing to extensive influx of deposits, Gvt. and private, the diminution in reserve only £101,326. Increase in precious metals of £403,914 exceeds by about £230,000 amount of gold sent into the Bank from abroad during the week, showing continued reflux of coin from the provinces.
The Money Market Review, 29. Juni 1867. S. 751.
Schließen Mercantile Embarrassments: Failure of Sabel et Co, Belgian Glass and Paper Trade, liabilities to £18,000, assets to about 5s. in £.
[The Money Market
Review, September 1867]
The Money Market Review, 7. September 1867. S. 263.
Contango und Backwardation.
Contango[:] a rate of payment by the purchaser of shares of stock to the seller, who agrees to delay delivery for a fixed period.
Backwardation[:] payment by the seller (to purchaser) unable to procure stock or shares except by a payment in consideration of their being lent to him for a fixed period of time.
The Money Market Review, 7. September 1867. S. 263.
Foreign Trade of the U. Kingdom (1854–1866)
|1854:||Imports of Foreign and. and Colonial Produce:||£152,389,053, being 5£ 10s. 2d per head of population.|
|1866||Ditto:||£295,204,553, being 9£. 17s. 2d. p. head of population.|
|1854||Exports of British and Irish Produce and Manufacture:||£97,184,726 being £3, 10s. 2d. p. head of population|
|1866||Ditto:||£188,827,785 being £6, 6s. 2d. p. head of population.|
|Including also Exports from United Kingdom of foreign and Colonial Produce, Total Value of Imports and Exports|
|1854:||£268,210,145, being £9, 14s. p. head of Population|
|1866:||£534,011,453 … £17, 16s. 10d. p. head of Population|
The Money Market Review, 7. September 1867. S. 258.
Railway Capital in Un. Kingdom during the last
a) Growth of the Capital.
1852: £264,165,672. 1853: £273,324,514. 1854: £286,068,794. 1855: £297,584,700. 1856: £307,595,086. 1857: £315,157,258. 1858: £325,375,507. 1859: £334,362,928. 1860: £348,130,127. 1861: £362,327,338. 1862: £385,218,438. 1863: £404,215,802. 1864: £425,719,613. 1865: £455,478,143.
b) Percentage of Growth. (increase) of
|Between 1852 and 1862 average increase of railway Capital (yearly average) 11 to 12 Millions p. annum.|
It is this tendency to exaggerated railway investment which induced the troubles which afflicted the railway interest 1866, and still continues to some extent, the growth of capital accounts having outstripped the progress of traffic receipts.
c) Railway Revenue of U. Kingdom during last
1852: £15,710,554. 1853: £18,035,879. 1854: £20,215,724. 1855: £21,507,599. 1856: £23,165,491. 1857: £24,174,610. 1858: £23,956,749. 1859: £25,7435,502. £25,743,502. 1860: £27,766,622. 1861: £28,565,355. 1862: £29,128,558. 1863: £31,156,397. 1864: £33,911,547. 1867: 1865: £35,751,655.|
[Bank of England and Money Market. 1867.
|Week ending||1) Circulation issued||2) Circulation active||3) Bullion. Issue Dpt.||4) Reserve Notes||5) Reserve Coin||6) Total Reserve||7) Public Deposits||8) Private Deposits||9) Gvt. Securities||10) Private securities||11) Total Bullion et Coin. Both Departments.|
|Week ending 3 July||Thursday June 27||Friday June 28||Saturday Sat. June 29||Monday July 1||Tuesday Tuesd. July 2||Wednesday Wd. July 3||Total for week||Settlement on Friday; Saturday last business day of half year.|
|Week end. 10 July||July 4||July 5||July 6||8 July||9 July||10 July||This Returns Return includes the Dividend Period.|
|Week ending 17 July||July 11||12 July||13 July||15 July||16 July||17 July||Payments on Tuesday (16 July) in connexion with Stock Exchange Settlement.|
|Week ending 24 July||July 18||19 July||20 July||22 July||23 July||24 July|
|Week ending 31 July||July 25||26 July||27 July||29 July||30 July||31 July||7 or 8 millions on Wed. (31 July) from settlement in shares and stock et Foreign Stocks.|
|Week ending 7 August||August 1||2 Aug.||3 Aug.||5 Aug.||6 Aug.||7 Aug.|
|Week end. 14 August||8 Aug.||9 Aug.||10 Aug.||12 Aug.||13 Aug.||14 Aug.|
|Week end. 21 August||15 Aug.||16 Aug.||17 Aug.||19 Aug.||20 Aug.||21 Aug.|
|Week end. 28 August||22 Aug.||23 Aug.||24 Aug.||26 Aug.||27 Aug.||28 Aug.||Shows that business flat.|
|Week end. 4 Sept.||29 Aug.||30 Aug.||31 Aug.||2 Sept.||3 Sept.||4 Sept.||Over Average. Settlement in Share und Foreign Markets. Payment of Railway Dividends, and exceptional requirements for 4th of Month.|
|Week end. 11 Sept.||5 Sept.||6 Sept.||7 Sept.||9 Sept.||10 Sept.||11 Sept.||Amount fallen back to the recent low average.|
|Week end. 18 Sept.||12 Sept.||13 Sept.||14 Sept.||16 Sept.||17 Sept.||18 Sept.||Slight Increase by Stock Exchange Settlement.|
|Week end. 25 Sept.||19 Sept.||20 Sept.||21 Sept.||23 Sept.||24 Sept.||25 Sept.||Total even below the recent low average.|
|Week ending 3 July.||Week ending 10 July.||Week ending 17 July.||Week ending 24 July.||Week ending 31 July.||Week ending 7 August||Week ending 14 August||Week ending 21 August||Week ending 31 Aug. 1867.|
|1) Coin et Bullion||I £82,840||D 1,026,500||I 253,300||I. £460,000||I £272,000||I £700,000||I 480,000||I £752,000||I £662,065
Total Stock: £37,970,432
|2) Discounts. Loans.||I 592,000||D 80,000||I 173,300||D 306,640||I 266,600||No change||D 320,000||D 246,500||I 120,164|
|3) Minimum Discount Rate||21/2 both Banks|| Diese Angabe nicht in der Quelle.
Ergänzung von Marx.
Schließen No change
|No change||21/2 English: 2%||21/2% Engl. 2%||21/2 Engl. 2%||21/2% Engl. 2%||21/2% Engl. 2%||No change|
|4) Notes mit Public||I. 1,786,640||I 627,000||I. 773,300||I 306,640||I. 1,066,600||D. 840,000||D 20,000||D 360,000||I 180,000|
|5) Stock (Coin, Bullion)||£.35,460,960|| Diese Angabe nicht in der Quelle.
Ergänzung von Marx.
|£34,685,970||£35,145,320||£35,417,530||£36,119,095||36,600,000||37,350,291||Week ending 24 July. Wenig increase in discounts, aber much in notes for circulation.|
|Week ending 4 Sept.||Week ending 11 Sept.||Week ending 18 Sept.||Week ending 25 Sept.|
|1) Coin et Bullion||I. 500,000||I 344,000||I. £100,000||D. £608,000|
|2) Discounts. Loans.||D 96 000||D 653,500||D. 13 500||I 240,000|
|3) Minimum Rate Discount||21/2 English 2%||No change||No change||No change|
|4) Notes mit Public||
Total of Notes
|5) Stock of Coin et Bullion||£38,467,800||£44,297,765||£44,635,150||£38,299,700||Both Bank o. E. und F. £62,747,543|
Notices to Money Market von Week ending 3 July 1867
to week ending 10 August 1867
Week ending July 6. 1867.
The Money Market Review, 6. Juli 1867. S. 14.
Schließen B.o.E. at this period a large amount of coin usually quits the Bank for the purpose of internal circulation, yet the coin and bullion on this occasion show increase of £209,171.
The Money Market Review, 6. Juli 1867. S. 15.
Schließen Mercantile Embarrassments: Sir Morton Peto, Bart. M.P., Edward Ladd Betts , and Thomas Russell [Crampton] , railway contractors, adjudged bankrupts. Assets of George Beard in Iron Trade, who recently failed, not 5s. in £.
Week ending July 13, 1867:
The Money Market Review, 13. Juli 1867. S. 40.
Schließen B.o.E. Glut of money. The payments on dividends, which commenced on 9 July, attended with increase of £346,156 in the Reserve, instead of the decrease usual on such occasions. Ditto Increase of coin et bullion in Bank.
The Money Market Review, 13. Juli 1867. S. 40.
Schließen Mercantile Embarrassments: Liverpool: Failure of Mellor et Southall, old respectable firm in Brazilian trade. Liab. £300,000. Manchester et Bradford: W. Brunner, of New York, mit establishments at above said places. Liab. to 1/4 Mill. £.
Week ending July 20.
The Money Market Review, 20. Juli 1867. S. 64.
Schließen B.o.E. The decrease of £785,023 in private securities shows how steadily the Bank’s Loan and Discount Business is falling off trotz 21/2 Minimum discount Rate, but owing to Gvt. and private Deposits withdrawal, Reserve almost stationary. Increase of precious metals – £145,495 – is equal to double the amount received by Bank from abroad during week; also 1/2 of it due to reflux of coin from provinces.
Week ending July 27.
The Money Market Review, 27. Juli 1867. S. 79 u. 92.
Schließen B.o.E. Reduction on 25 July of Minimum Rate of Discount to 2%. The Stock of bullion and coin is still steadily increasing, loans and discounts decreasing, public require a smaller amount of notes, and in the general market the current rate for short dated paper is 13/4%. Amount of gold sent into the Bank during week £202,000, but increase in coin and bullion only £85,138. A 2% Minimum Rate of Discount früher only 22nd April 1852 (lasted 37 weeks) und 24 July 1862 (lasted 14 weeks.) On 22nd April 1852 stock of bullion held about 31/4 Mill. £ less than at present, and the reserve was about 1 Mill. St. less. On 24 July 1862 the bullion was nearly 5 mill. less and Reserve 3 mill. less.
Week ending August. 3.
The Money Market Review, 3. August 1867. S. 122.
Schließen B.o.E. Increase of Precious Metals of £154,589, amount of gold sent in from abroad about £37,000; thus the bulk of £117,589 must consist of coin received from the provinces.
The Money Market Review, 3. August 1867. S. 134.
Schließen New Russian Loan for 12 Mill. £ St. (Baring Brothers et Co)[.] Dulness characterises every department of the Stock Exchange.
Week ending August. 10.
The Money Market Review, 10. August 1867. S. 144/145.
Schließen Sharemarket: Increase of Business. Decided Recovery in various stocks und besonders Stocks of our home Railway Cos. The „bulls“ have carried everything; „bears“ forced to close at great sacrifices, and thereby increase the force of the upward movement. In this game of railway speculation the public are transacting a very small part. Sales for actual delivery and bona fide investments are equally rare. Almost proverb on the Stock Exchange: the public never sell till they have received their dividends. (London and South Western Co pay halfyearly dividends 17/8% instead of 2 in same period last year; Great Northern 21/4 against 21/2, Mitland 23/4 against 3.⦘ )
Week ending August 17.
The Money Market Review, 17. August 1867. S. 178.
Schließen B.o.E: Amount of gold sent in from abroad less than 1/2 of its increase; hence sovereigns are coming in from the provinces, unusual circumstance at this time when coin is required for the harvest.
The Money Market Review, 17. August 1867. S. 172 u. 179/180.
Schließen Stockmarket: Rise in meisten leading Railway lines; meist speculativ. Bears beaten. Still game of speculation.|
Notices to Money Market von 24 August to 28 Sept.
Week ending August 24. 1867.
The Money Market Review, 24. August 1867. S. 206.
Schließen B.o.E.: Augmentation in Bullion less than 1/2 of foreign gold sent in (£85,000) during week, showing that coin is temporarily required in the provinces for the harvest.
Week ending Sept. 7, 1867.
The Money Market Review, 7. September 1867. S. 260.
Schließen B.o.E.: Increase in bullion less £360,000 than amount of gold sent in from abroad, shows that coin is still wanted for harvest. Augmentation in Private Securities in preparation for bills due on 4th. This week’s return: the notes with the public, payable in gold on demand, actually amount to less than the gold and silver held. This situation never before occurred, except for a short time on 26 June in 1852.
The Money Market Review, 7. September 1867. S. 251 u. 261.
Schließen The accumulation of precious metals at Bk.o.E. larger than ever before. B.o.E. und Bk.o.F. haben in Joint Stock to joint store over 621/2 Millions £. This week announced suspension of Veronin Brothers, Moscow, due chiefly to large speculations in cotton. Liabilities heavy, some London firms among the creditors.
The Money Market Review, 7. September 1867. S. 256.
Schließen Sharemarket: After a long protracted period of depression, shares of the best known English mines have been in request at advanced questions.
Week ending 14 Sept. 1867.
The Money Market Review, 14. September 1867. S. 285.
Schließen Mercantile Embarrassments: Coventry: W. Chappell, silk broker. In Folge davon failure of Peters and Warburton, ribbon and small ware manufacturers at Coventry et London. Liabilities in each case large. These disasters will open the way for other smaller failures in one of the chief staple trades of Coventry which has only recently recovered in a measure from an almost chronic state of inactivity and depression. Australia: Failure of W. Forlonge, squatter in Victoria, New South Wales und Queensland. Liabilities £283,000, including £66,000 due to Bank of Australia.
Week ending 21 Sept. 1867.
The Money Market Review, 21. September 1867. S. 308.
Schließen B.o.E. Gold sent from abroad into Bank £287,000; Increase only £149,915 … Difference [must be represented by] Coin withdrawn for internal circulation.
The Money Market Review, 21. September 1867. S. 309.
Schließen Mercantile Embarrassments: Liverpool: Failure of J. Hewitt et Co, cotton importers. Were large holders of American cotton. Coventry: Failure of several small firms, owing to stoppage of Peters and Warburton.
Week ending 28 Sept. 1867.
The Money Market Review, 28. September 1867. S. 328/329.
Schließen Stockmarket. Stagnation again the feature of the week. Unsettled Foreign Policy hat auch damit zu thun. The Funds have receded. Railway Stocks have mostly declined; besonders Protest raised against accounts of Caledonian Railway is another Blow to confidence in this class of enterprise.|
[The Money Market
Review, Juni bis Oktober 1867]
The Money Market Review, 6. Juli 1867. S. 4/5.
The closing of Railway Accounts. (Money
Market Review 6 July. 1867)
Never has been any Railway Capital Account of any Railway Co. in this country closed excepting by absolute compulsion. When the necessity has arisen, the dividend has invariably stopped. Nehmen wir Railway Cos, nicht nur jezt als bad acknowledged, but auch very best.
|30 June 1864||£644,807|
|31 Dec. 1864||711,864|
|30 June 1865||656,263|
|31 Dec. 1865||802,751|
|30 June 1866||669,823|
|31 Dec. 1866||987,226|
|31 July 1864||£.179,060|
|31 Jan. 1865||329,197|
|31 July 1865||466,164|
|31 Jan. 1866||587,893|
|31 July 1866||549,432|
|31 Jan. 1867||297,032|
|30 June 1864||£389,082|
|31 Dec. 1864||793,472|
|30 June 1865||834,580|
|31 Dec. 1865||687,078|
|30 June 1866||822,884|
|31 Dec. 1866||1,163,911|
|30 June 1864||£168,590|
|31 Dec. 1864||894,153|
|30 June 1865||487,232|
|31 Dec. 1865||1,786,274|
|30 June 1866||738,308|
|31 Dec. 1866||613,789|
Diese 4 Railways together in 3 years more than 16£ St. (Millions) gepumpt. Difference between them: with The Brighton et South Eastern , the last dividends paid palpable illusions, whilst with London and North Western und Great Northern , there was something real, if not all.
The Money Market Review, 6. Juli 1867. S. 7.
Pre-Preference Stock. – Great Eastern in
This „Railway Cos. Bill“, read a second time in H. o. Lords on 25 June (67) originally introduced by Sir Stafford Northcote und Watkin. It is now no secret that various Railway Cos. in this country have contracted mit bankers, lawyers, contactors, and other creditors, debts which they cannot pay und these Creditors the chief instigators of the Bill before Parliament, whereby they seek, at the cost of others, payment of their claims.|52
„Receivers“ have been appointed by the Court of Chancery for the Great Eastern Railway Co. Adopting the explanation given by Mr. Baxter, this signifies that the Court takes to itself the net revenue of the railway, and pays both principal and interest to debenture holders with that net revenue. … We cannot have Vice-Chancellors and „Receivers“ as our railway managers, and the nation will sooner or later demand that, whatever the existing condition of the law between railway debtors and creditors, we must have the means of locomotion in its fullest efficiency. Terminable debt must be exchanged for funded or permanent debt. Railway debentures must be changed into Railway Consols, the principal of which will never fall due, but may always be obtainable on the Stock exchange.
The Money Market Review, 6. Juli 1867. S. 8.
Chatham, Dover Railway
Account with Peto et
Co. (Money Market Review 6
When Peto et Co stopped payment, they classed amongst the assets a sum of more than a million claimed as due from Chatham and Dover Co., und jezt the Directors of the Co claim more than 6 Mill. £ from Peto et Co. Shows how accounts may be muddled and meddled. As means of settling the question, Mssrs. Peto et Co have at last been thrown into the Court of Bankruptcy.
Folgendes die precise figures des accountant employed by the directors. Peto et Co. are charged with stock and shares issued at par thus:
|1) General Undertaking||
stocks and shares issued at par
|2) Metropolitan Extensions||6,733,000|
|3) City Lines||700,000|
|4) Victoria improvements||520,000|
|5) Eastern Section||1,070,000||Summa: £11,594,551|
|6) Cash paid to Peto et Co.||4,403,443|
|For work done||£2,993,265|
|Balance to be accounted for||£10,838,392|
|Deduct, received from the public by the Co||4,171,450|
|Balance due by Peto et Co exclusive of interest et liabilities not ascertained||£6,661,942.|
The Money Market Review, 13. Juli 1867. S. 34/35.
British Exports of Cotton Goods to East Indian
Empire. (Money Market Review July, 13,
Mostly during last months bad news from the various seats of trade, but cotton manufacture considerably expanded. This Trade ever overdone; namentlich in exports of gray and white shirtings, or, as they are described in the returns, plain cottons, to India, under this description being included the chief portion of our manufactures consigned to that country. It is also interesting to remark the shipments now going forward, by comparison with those for the corresponding period of last year, especially when viewed in relation to the falling off in the total extent of the export trade of the country as shown by the returns of the Board of Trade. Thus total value of British Exports for the 5 months ending 31 May 1867, was £72,123,393, and for the corresponding 5 months of 1866 was £78,227,710, showing for this year falling off in value of £6,104,317, almost 81/2%. But the figures published by Samuel Mendel (of Manchester) – which do not give values – show that the exports of plain cottons to India alone, for the 6 months ending on 30 June, 1866 1867 = 356,806,060 yards, against |53 only 221,606,571 yds in the same period 1866. The increase in quantity, therefore, for this year, = 135,199,489 yds, no less than 61% more than the shipments for the corresponding 6 months of 1866.
The relative value of Manchester goods, coupled with the state of the Money Market now, accounts in a great measure for the increased quantity of cotton manufactures lately exported. F.i., in 1866 prices 23 to 25% higher than this year, and rate of discount 1866 between 6 and 10%, this year from 31/2 to 21/2.
Trotz den very material differences in the quotations for cloth, 1867, as compared with 1866, the total value of exports of Manchester goods to India considerably larger than for same period 1866; therefore, the reduction in aggregate value of the export trade of the country must be accounted for in other departments of business than that connected with India.
From India exported cotton to England, 1859–60: £5,570,000 worth of cotton, 1865–66: £33,500,000. Indian mutiny of 1857 for short period almost paralysed our trade with that country; this was followed, however, by a remarkable rebound in the shipments of cotton goods.
|Year||Total Exports in Yds||Average Export per month in yds|
|Six Months ending June 30, 1867||356,806,060||59,467,676.|
These figures show an average yearly export of more than 496 millions yds; we ship, also p.a. to India 281,929 miles calico to India, a quantity which, if placed in a line, would extend beyond the moon, and encircle the earth nearly 12 times. Is the present increased trade to India sound?
The Money Market Review, 29. Juni 1867. S. 744.
Board of Trade Returns. Month ended April, and
4 months ended April.
|Imports In the month ending 30 April|
|In 4 months ended 30 April|
|Less Raw Cotton||13,967,469||29,244,760||17,579,628|
|Exports||British Exports in Month ended 31 May|
|In 5 Months ended 31 May|
|Less Cotton manufactures||18,116,058||25,535,520||22,781,049|
The Money Market Review, 20. Juli 1867. S. 58.
Amalgamation of Brighton and South Eastern Railway.
(Money Market Review July 20,
The Money Market Review, 27. Juli 1867. S. 81/82.
Pre-Preference Shares. H. o. Lords. 23 July.
Schließen (H.o.C. Private
H. o. Lords rejects on 23 July principle of Pre-Preference Shares – the Confiscation Scheme, sanctioned by H.o.C. Der existing British Railway Preference Stock – that would be attacked by Pre-Preference Shares – 150 Mill. St. Aber alles, priority und other property together, 500 Mill. £. St. Ferner hat das H. o. Lords expunged from the Railway Cos. Act, 1867 just those clauses, whereby railways might be put up to auction and knocked down summarily to the highest bidder. Economist vertheidigte dieß. There was the passing of the Bill through the House of Commons „in most mysterious Manner“, smuggled through it with almost no challenge. Private interests in the H.o.C. sufficiently powerful to carry this bill through, for their own special advantage, and without any apparent opposition. Deputation of railway Proprietors to Duke of Richmond, President, and Cave, Vice President of the Board of Trade, showing that that Bill amounted to confiscation. The memorialists, in regard to the compulsory sale of a railway state, that it must end in the sacrifice of the property, inasmuch as its intrinsic value is too great for ordinary and legitimate competition. Consequently, there being no purchaser, a railway which has cost 20, 30, 40, or perhaps 50 mill. St. must be knocked down at a price far below its price. Ferner: the intrinsic worth of a railway can only be ascertained by a very slow process, so daß value schwer zu bestimmen. Als Beispiel führen die Memorialists an: sale of the Bagnalstown, New Ross, and Wexford line, sold by compulsion; for £25,000 or £1,110 p. mile, while cost £220,000 or £10,000 per mile. In fact, the net sum realised, did not even pay for the cost of rails and sleepers. And a railway which has cost 22 Mill. £. might sell for a smaller relative value than the one which cost only £220,000.
Schließen Es war also Bande im H.o.C., die durch Confiscation sich zu Spottpreis in Besitz der Railways setzen und die existirnden Proprietors expropriiren wollte und diese Bande powerful enough to carry clauses to this effect, ohne House of Lords, in Railway Cos. Act, 1867. Die Geschichte wegen der Pre-Preference Shares kam vor das Haus of Lords nicht mit dem Railway Act, 1867, sondern mit Bill der North British Railway Co., zu diesem Behuf. (Vor H.o.L. Committee)
The Money Market Review, 3. August 1867. S. 111/112.
Extraordinary Position of the Money Market.
(Money Market Review 3 Aug.
Dieß 2% Minimum Rate of Discount occurs at a period of widespread discredit.
|First Reduction to Minimum der Rate to 2%. April, 17th 1852.||Compared State mit July 31st 1867.|
|Coin et Bullion in both Departments.||£19,560,000||£22,926,000||Increase £3,366,000|
|Total Reserve in banking department||11,504,000||13,743,000||Incr. 2,239,000|
|Government deposits||3,265,000||4,898,000||Incr. 1,633,000|
|Private deposits||13,907,000||20,594,000||Incr. 6,687,000|
|Private securities||11,086,000||17,322,000||Incr. 6,236,000|
|Gvt securities||13,396,000||12,831,000||Decrease 565,000|
|Active circulation.||22,056,000||24,183,000||Incr. 2,127,000|
In both occasions Private deposits have exceeded Private securities, in 1852 by £2,821,000 und this week by £3,272,000. I.e., the B.o.E. received more money from the commercial classes who lend, than it advanced to its discounting customers. The variations shown between the two items of private deposits and private securities (loans, discounts etc) is generally a good index of the State of the Money Market. In 1852, April 17, Total Reserve = 623/4% of the liabilities of the Banking Department to Public; it is now only 53%; but in 1852 the Reserve was £5,391,000 more than 1/3 of the liabilities, and now it is £5,082,000 more than the one third.|56
|Comparison of July 23 1862||und July 31, 1867.|
|Total Coin and Bullion both Dpts.||£18,061,000||£.22,926,000||Increase £.4,865,000|
|Total Reserve Banking Dpt.||10,508,000||13,743,000||Increase. 3,235,000|
|Gvt. Deposits||5,291,000||4,898,000||Decrease 393,000|
|Private Deposits||17,203,000||20,594,000||Increase 3,391,000|
|Private Securities.||19,582,000||17,322,000||Decrease 2,260,000|
|Gvt Securities.||10,953,000||12,831,000||Increase 1,878,000|
|Active Circulation.||22,203,000||24,183,000||Increase 1,980,000|
The increase now shown in reserves as compared mit 1862, £4,865,000 in total coin et bullion, £3,235,000 in Reserve of notes et coin and £1,878,000 in amount of Gvt securities.
In 1862 Private Deposits £2,379,000 less than private securities, giebt für this week (67) Überschuß (verglichen mit 1862) der Private Deposits over Private Securities of £5,651,000.
In 1862 banking Reserve £2,763,000 more than 1/3 of liabilities to public = 45% of the total amount, against £5,082,000 and 53% respectively at the present date.
In 1852 2% lasted for 37 weeks, in 1862 for 14 weeks. In 1852, notwithstanding the almost nominal nature of the terms for accommodation, there appear to have been very few alterations in the amount of private securities, other than those which occur at the close of every quarter. The tendency was undoubtedly to decline in this item until after the payment of the October dividends. The private deposits also afforded evidence of sluggish demand for money. The Reserve consequently continued to augment, and on 20 June (1852) was £14,700,000 – an increase in 10 weeks of £3,196,000. The coin and bullion attained its highest point of that year on July 10: amount was £22,232,000, being an increase in 12 weeks, after the reduction in rate of discount, of £2,672,000. 1852 year of remarkable ease in money market, also year of general prosperity; trade was active in almost every department, the working classes were earning good wages, and prices of commodities were high. Cheap money, concurrently with these facts, caused large orders to be sent abroad for all kinds of produce. The reaction in the value of money which occurred at the clause close of the year was mainly caused by the payments for this produce.
On the second occasion of the 2% Minimum Rate discount, 24th July 1862, it was followed by a partial increase of strength in the accounts of the B.o.E. The fall of value of money in 1862 chiefly to be attributed to the fact that we received gold instead of cotton from America in payment for the large exports of our manufactures. An abundant harvest also assisted the money market. The reaction occurring in the autumn was caused by the demand for bullion and specie for export to the East in payment for cotton.
It will thus be seen that the circumstances which relieved the depression in monetary circles at former periods of extreme ease of money market are not likely to come to our assistance on the present occasion. There are few, if any, inducements for merchants to send out orders abroad for |57 produce, unless the negative one that prices are so low that very little room is left for further reduction. There is probability of average harvest; no chance of foreign loans or undertakings being entertained by capitalists; the late disclosures in the railway would close opening in that quarter; strikes and discontent amongst the working classes interfere with investments in manufactures; in addition, unsettled state of Continental politics checks new enterprise.
The Money Market Review, 3. August 1867. S. 115/116.
Pre-Preference Shares. (Money
Market Review Aug. 3, 1867.)
In der North British Railway Co. Bill wegen Pre-Preference Shares Gladstone vertheidigte diese Maßregel; in seiner Evidence vor Lord’s Committee (26 July 1867). Lord House Committee announced 27 July that they had come to the conclusion to strike out all that portion of the Bill relating to Pre-Preference Stock. Nach Times (22 July) Pre-Preference Stock „simplest and most straightforward, and therefore the most honest way of meeting the difficulty.“ Die Times sagt, der case of North British Railway Co „a case of ordinary indebtedness, must be dealt with – upon first principles.“ Danach also its „first principles“ die des pick[-]pocket, that the simplest and easiest way of dealing mit difficulties zugleich the most honest.
The Money Market Review, 3. August 1867. S. 117/118.
Board of Trade
(Money Market Review Aug. 3,
We are importing much less cotton and much more corn. Apart from these items our imports of the 5 months are valued at about 41/2 Mill. less than in the same 5 months last year, and about 5 millions more than 1865, or about a million difference by month. As to Exports: greater in June 1867 than June 1866, and very much than June 1865 or any preceding June. Diminution in the values of our exports of cotton, linen, woollen, and iron manufactures during the first 6 months of 1867, as contrasted mit corresponding 6 months of 1866 to amount of about 5 Mill.; but apart from these special items, which constitute more than 1/2 [of] our exports, figures of 1867 and 1866 nearly identical. Im Ganzen die Exports of first 6 months of 1867 131/2 millions more than in corresponding months of 1865, or more than 18% increase. (Verte)
|Five Months ended May 31.|
Import Values of May 1867 larger than May 1866 und much larger than May 1865. Import Values of 5 months smaller than 1866, much larger than in corresponding months of 1865. Chief item of immediate increase in Imports are Cereals, including all farinaceous food.|58
|Month ended June 30.|
|Six months ended June 30|
|Deduct cotton manufactures.||21,629,845||30,418,414||27,500,523|
|Deduct linen manufactures||4,056,196||4,917,668||3,796,828|
|Deduct iron and steel||5,828,545||7,497,609||6,964,213|
|Deduct woollen manufactures.||8,034,020||10,534,581||9,877,715|
Trotz depression of commerce, exports für June 1867 exceed those of June ’66, 65’ and any preceding June. Chief declined decline, compared with 1866, in cotton manufactures. Deducting cotton, linen, woollen und iron manufactures, exports almost same as in 1866, und much more than in same 6 months of 1865.
The Money Market Review, 10. August 1867. S. 142/143.
Act, 1867“ (schließt Scotland aus, England und
Irland ein) und Pre-Preferences. (Money
Market Review 10 Aug. ’67)
In diesem Akt
(durch die Lords) die Pre-Preferences ausgeschlossen,
aber The Money Market
Review: „on Thursday week“. – Die dritte Lesung der „North
British Railway Bill“ fand am 1. August 1867 im House of Lords
Schließen on August 8 ließ das H. o. Lords sie durch a sidewind zu, North British Railway Bill.
One amendment introduced into the Act by the Lords: that no dividend to be
declared by Railway Co. until the auditors have certified that
in their judgment it had been really earned, und daß, wenn
difference between them und directors, the question
shall be stated in the Report to the shareholders. Zusatz von Marx. The Money Market
Review: „This would be all very well it if could possibly be
carried into effect, but, much as we respect the honesty of Lord
Redesdale’s intention, we fear he has attempted an
impossibility.“ – Lord Redesdale war der „chairman of committees“
des House of Lords.
Schließen Dieß alles Nonsense! Among directors, auditors, and shareholders there is one common interest and object – the support of the dividend and the advancement of the market value of the share. Above all things they seek to prevent any depreciation in the value of the stock.
(Money Market Review
24 August 1867)
The Money Market Review, 24. August 1867. S. 197/198.
Schließen The circulars of the Mincing-lane brokers show that though an occasional inquiry for certain articles of produce, no business in any market. In many of the great staples, f.i. cotton, coffee, sugar, tea, silk – though the stock comparatively low as regards some of them – demand is languid. It might be supposed that, tempted by the cheapness of money, speculators would come forward and impart something like a tone to the unduly depressed produce markets; but such is not the case. There are few, whether wholesale dealers or retailers, who care to look far beyond immediate wants and the daily supply of their customers, speculators for the present remaining quiet in the background.
The Money Market Review, 24. August 1867. S. 197/198.
Schließen Obgleich Zins 2%, a good bill arising out of a bona fide transaction with three good names to it will scarcely pass muster in some (banking) quarters. The extreme points of accommodation, together with high dividends, having been attained prior to the crisis of 1866, we must now rest satisfied until the past is forgotten, and shareholders become clamorous for increased risks and higher returns.|
The Money Market Review, 24. August 1867. S. 197/198.
Schließen Stocks, shares, and other marketable securities, when largely dealt in, no doubt absorb considerable amounts of surplus money, which do not pass into trading and commercial channels. The interest and dividends derivable from such modes of investment, as forming a portion of the incomes of the investors, are distributed chiefly for the supply of daily or weekly requirements. … if such incomes fail, the retail trade as well as the wholesale, languishes.
The Money Market Review, 24. August 1867. S. 199/200.
Schließen In the heyday of speculation in 1864 and 1865 even the most cautious investors were selling their India Stock or their Consols because they were not satisfied with the income yielded, and wished, as others appeared to do, to obtain for the same capital 2 or 3, or, perhaps, 4 × their previous means of annual expenditure. … Now, umgekehrt, the price of Consols, of India Stock, of Bk.o.E. Stock, and other first-class securities, is getting too high even for timid investors … Two or 3 years ago the interest received on deposit of money with bankers or other moneyholders, who guaranteed a return of the principal, suggested almost as good a channel for investment as could be found; but that channel now is closed. Bankers pay but little for deposits, because they can make but little by them. After previous panics, when Gvt securities and other solid means of investment have been absorbed, it has been our custom to turn to foreign stocks, and wherever this symptom has been manifested it has been the practice of our foreign debtors to offer us some new loan at what appears to be a tempting price. With millions upon millions lying idle, we are prone to snatch at the opportunity, but the result … almost uniformly disastrous. We invariably lose our money over those foreign loans.
The Money Market Review, 24. August 1867. S. 201/202.
London Joint Stock Banks during last half year
(ending 30 June) 1867.
Aus diesem Account folgendes:
|Deposit and Current Accounts.||PCt of Current Deposit Accounts to Paid up Capital and Reserve||Acceptances||Ratio of Acceptances to paidup Capital et Reserve Fund. P.C.||Ratio P.Ct of Acceptances to Current, et Deposit Accounts.||Liabilities to Public on Deposits and Acceptances||P.Ct of Total Liabilities to Capital und Reserve Fund|
|London and Westminster||£21,858,958||1457 P.Ct.||£784,250||53 P.C.||31/2%||22,643,208||63/4%|
|London and County||12,032,334||953||1,397,185||111||111/2||13,429,519||91/2|
|London Joint Stock||10,864,926||766||3,868,839||273||351/2||14,733,765||91/2|
|London and South West||479,564||236||15,850||8||31/4||495,414||41|
The total deposits and current accounts of these 10 banks £62,991,911, acceptances to £15,628,029, making a total liability to public of £78,619,940. The total paidup capital and reserve fund of the whole of the 10 banks amounts to £8,954,292; is in course of augmentation. Capital and Reserve Fund of London and Westminster is to be increased to £3,000,000 by Nov. 16, 1868, of the London Joint Stock Bank to £1,67,839 £1,617,839, by Dec. 31, 1867; und London and County Bank to £1,500,000 by Febr. 27, 1869.
The Money Market Review, 24. August 1867. S. 203/204.
Exports of British Cotton Goods to Indian
Empire. (Money Market Review 24 Aug.
It is impossible, in the face of a continued decline in the quotations in India for cotton manufactures to say that the large exports of the last few months will result in satisfactory results to all shippers. Losses appear inevitable |60 on these particular shipment shipments, but, where the business has been based on ample resources, they will be small compared to the losses of those who, in addition to the ordinary commissions of buying and selling, have had to pay bankers’ commissions and other charges for accommodation. If any portion of our Eastern trade unsound, it is that carried on by weak capitalists. It is to be hoped that in general previous gain will have more than counterbalanced any previous losses. … The fall in prices, caused by the recent heavy shipments, will promote an increased demand, and consumption of English made cloths. So large advantages may be ultimately obtained.
In the following quinquennial table before 1853 Madras not included, but its shipments not more than 2 or 3% of the whole, daher of little consequence. Increase et decrease are given of each cycle, as compared with the one immediately preceding it.
|Five years ending||Average monthly exports in yards||Yards.|
|1851||16,418,333||Increase of||2,508,333 yds or 18%|
|1856||28,110,487||11,692,154 or 711/4%|
|1861||47,482,340||19,371,853 or 69%|
|1866||35,216,869||Decrease of||12,265,471 yds or 253/4%|
|Eight months ending August 1867||60,782,006||Increase of||25,565,137 yds or 721/2%|
The Exports during 1840 and 1841 averaged a little more than 6 mill. yds per month. Thus progress in 26 years not quite tenfold. The period 1847–51 decidedly checked the export trade to India, and considerably affected the average for the 5 years. Cycle of 1852–56 includes Crimean war; period of ease in money market, export of plain cottons to India increased by 711/4%. Cycle of 1857–61 embrace panic of 1857 and Indian mutiny of 1861, interfered very little with the average export of that period, as they are again nearly 70% more than average of the preceding cycle.
The values of plain cotton manufactures exported to India during the 20 years ending 1861 varied between 1s. und 1s. 3d. per lb. During the 5 years ending 1866 average value was about 2s. p. lb., but exports decreased only 253/4%, small diminution in comparison to the large increase in the cost. The value of cotton manufactures for India at present 1s. 4d. per lb, and we do not look for material reduction for longtime to come. It is a matter for the consideration of exporters, who have the option, whether they will support the Indian markets by holding their stocks, or still further depreciate values by forcing sales at a sacrifice. There are times to hold and times for selling.
In the summer 1861 Col. Baird Smith made Report to the Gvt. of India on the British piece good trade between Calcutta and North Western Provinces. He stated that 30 millions of people supplied from Calcutta alone mit our manufactures; that vigour of demand determined by the facilities of transport; „the agricultural and poorer non-agricultural population had at that time scarcely become the customers of Manchester at all[“]; he pointed to the serious effects of the periodical famines in India und said in regard to the Manchester piece good trades: „I am inclined to believe that less than 1/3 of the field open to its operations has yet been taken possession of.“ In 1854 there were but 35 miles of |61 railway open in India in 1860 734 miles, in 1865 2747 miles. The receipts from passenger traffick in 1854 £13,647, in 1860 £231,071 und in 1865 £1,302,432. The receipts from the goods traffick in 1854 £604, in 1860 £339,469 und in 1865 £1,815,243. The amount expended on railways at the close of 1859 £23,559,632 und 1865: £58,679,990. The Population of India, European and native, under British administration, nearly 150 millions; but the total population of all India 193,100,963, und extends over area of 1,553,282 □ miles.
The Money Market Review, 31. August 1867. S. 227–229.
Railway: The Reports of the (new) Directors, Auditors,
and Accountants. Dividends Suspended. (Money
Market Review 31 Aug. 1867)
They tell us, that is in 12 years the capital has increased from 73/4 to 153/4 mill., so that in this interval the capital outlay has been more than doubled. Ostensibly increase of revenue of £113,000 p.a., but we are told that this was not so, and that the dividends on both the preference stocks and on the original or ordinary stock were fallacious, because interest was charged to capital, and other revenue payments were also charged to capital, which in effect means that dividends were paid out of capital. Ja, the dividends of this Co. for many years past have not only been more or less fictitious, but the Co’s net income for 1866 actually less than 12 years ago, notwithstanding the expenditure in the interval of more than 8 millions, which amounts to more than half the Co’s entire capital.
The new board will have no „suspense accounts“, which mean, in effect, charges to revenue deferred for the time, and ultimately placed to capital.
Dividend, however paid, keeps the directors in seat, wards off committees of investigation, humours the shareholders, supports the market values. Hence!
In April 1849 there was a Report from a committee of investigation upon Eastern Railway Co; and from this it transpired that Hudson had converted a dividend of 3sh. p. share, earned with difficulty, into 9sh., by a few scratches of the pen, and after this „the accounts were made up in accordance with the books, and did not show that any such dividend had been earned“. The committee also discovered that „out of £545,714 paid as dividends, £320,573 was taken from capital or held in suspense“. Above all, the assistant accountant declared in evidence that „it was a generally understood thing that capital was to bear what revenue would not“. All this happened 181/2 years ago. At that momentous period in our railway history there were committees of investigation into the affairs of the Lancashire and Yorkshire, Midland, North British, South Eastern, the York, Newcastle, and Berwick, the York and North Mitland, and other cos; and „financial statements“ were put forth by the Great Western, the London et Southwestern, the London and Northwestern, the Brighton, and others. Result of all, nearly without exception, was either a decline in the dividend, or its absolute suspension; and this, too, from one cause alone – the extravagant outlay of capital, and systematic payment of dividends out of capital, in order to conceal the relatively small accession of profit.|62
Kommentar von Marx auf Grundlage von
Angaben aus: The Money Market Review, 31. August 1867.
Schließen Nehmen wir die 5 Railways – London and Northwestern, London, Brighton etc , Midland , Lancashire and Yorkshire, Great Northern, so haben sie in den 18 months von 31 Dec. 1865 bis 30 June 1867 ihr Kapital (dessen Gesamtsumme am lezten Datum £136,026,509) raised um nearly 17 Mill. £ oder 14.11%, Gross Revenue not quite increase of 3/4 Mill. £. oder 5.01%, but at the same time this addition to the gross revenue has been more than absorbed by the cost of working. In a word, net profits are smaller after the outlay of 17 millions than they were without it. The Preference Charges increased in this brief interval no less than £407,324 or 10.78%. Result that there is less for the ordinary dividend by £412,652, or 10.19%, trotz outlay of nearly 17 millions.
The Money Market Review, 31. August 1867. S. 229/230.
The Board of Trade Returns. (Money
Market Review 31 Aug. 1867)
Danach seems that Value of Imports much smaller in this year than 1866 und Value of Exports about the same, or little less. This points to a further accumulation of precious metals. Zugleich growing Commerce. Guter Herbst, less cereals und import of cotton (value) smaller.
|Month ended June 30.|
|Six months ended June 30|
|Deduct raw cotton:||20,478,572||47,348,759||32,367,199|
Nearly 12 Mill. less for cotton than 1866. The import of cereals was 51/2 mill. more than first 6 months 1866, but now good harvest.
|Month ended July 31st|
|All articles declared value||£14,113,410||14,957,834||15,562,430|
|7 months ended July 31|
|All articles. Declared Value.||£88,242,048||107,815,664||103,175,914|
|Deduct cotton yarn||5,062,047||7,577,085||8,413,869|
|Deduct cotton manufactures||25,428,024||35,258,375||32,117,439|
|Deduct linen manufactures||4,775,619||5,634,616||4,437,795|
|Deduct iron and steel||7,016,527||8,799,681||8,413,810|
|Deduct woolen and worsted yarn||2,924,233||2,465,035||3,326,526|
|Ded. woolen and worsted manufactures||9,953,550||12,397,896||11,846,369|
Obgleich in the 7 months ending 31 July 1867 smaller than in 1866, in month July greater. This shows increasing trade. Exports of cotton, linen, yarn and manufactures, iron and steel = 2/3 of the whole, are on a scale far in excess of any estimate 6 months ago, and point to revival of our foreign trade.|
The Money Market Review, 7. September 1867. S. 253/254.
Diminution in Profits of B.o.E. Forthcoming
Dividends. (Money Market Review 7 Sept.
Profits for 6 months ending Aug. 1866 exceeded those of any former half year. Rest on 5. Sept. (1866) of that year £3,987,417, and shareholders received dividend of 13 p.Ct. p.a. for the half year, highest amount since passing of Act of 1844. The Rest now amounts to only £3,658,068, being £329,349 less than 1866. It is only £18,422 more than the amount returned at 3d Sept. 1862, which was the smallest sum stated at the close of any half year during the last 15 years.
The gains during the 14 weeks’ infliction of the 10% Rate £672,648. The profits during the whole of the last 6 months not exceeded £650,00 £650,000.
The Money Market Review, 7. September 1867. S. 255/256.
London Joint Banks last half year. (Money
Market Review 7 Sept. 1867)
Continuatio (S. 59)
|Cash in hand and at Call||Total cash, Consols and other Investments||Ratio p.Ct of Cash and Investments on||Bills discounted, advances, et Loans to Customers.||Ratio per Cent of Bills disc. Advances etc, on|
|Capital and Reserve Fund||Liab. to Public||Capital et Reserve Fund||Liab. to Public|
|London et Westminster||£2,718,481||6,370,796||425%||28||£.17,944,367||1196 P.C.||79|
|Lond. et County||3,284,352||4,263,148||338 P.Ct.||32||10,334,328||819||77|
|Lond. Jt. Stock||1,602,601||2,682,601||189||18||13,568,704||957||92|
|Lond. et Southwest||43,501||43,501||21||9||638,290||314||129|
The amounts under „Cash in Hand und Call“ include bei London und Westminster und London Joint Stock Bank nur Cash in Hand und in Bk.o.E., bei den andern cash lent „at call“ or „notice“ with the discount houses.
|Net Profits.||Rate p.Ct. per annum of Profits on||Balance from previous Halfyear||Amount of Dividend for Half Year||Rate Pct p. annum of Dividend.||Balance carried to next Half Year.|
|Deposits and Acceptances.||Paidup Capital.|
|London et Westminster||£.146,066||1.29||29.21||£.45,899||£.140,000||28||£31,955|
|Lond. et County||82,058||1.22||20.19||14,468||89,445||22||7,081|
|Lond. Joint Stock||97,169||1.31||17.99||0||90,000||16.66||2,176|
|Lond. et South West||4,362||1.76||4.36||1,003||5000||5||365|
In some cases special losses have occurred during the half year which have been charged to reserves in hand; f.i., the Union Bank has deducted from the £99,437, brought forward from the previous |64 half year £60,000, this being, as stated in the report, an „amount now written off to doubtful debts account“. Properly speaking, therefore, the net profits accruing to that Bk. during the past half year were only £62,043 instead of £122,043. Für Alliance Bank depreciation has taken place on „the value of the securities held against previous bad debts“, which has necessitated the taking of £60,000 from the Reserve Fund. If debited to the past 6 months’ accounts, would have absorbed all the profits, and there would have remained a further debit of £42,945. The Imperial Bank experienced an unfortunate mishap on the last day of the half year which resulted in loss of £19,000, and, by charging the past half year with this item, result would have been loss of £1115.
Net Profits for the whole of the 10 Banks. £545,314; very large sum, considering that trade was inactive, and average Bank Rate only 3%. The 4 largest establishments hold deposits of money to £55,370,937, and an average margin of net profit of 1% p. annum on the employment of this sum would yield in 6 months £275,000.
The Money Market Review, 7. September 1867. S. 256/257.
India Trade and Four Months Usance. (Money
Market Review 7 Sept. 1867)
Seit einiger Zeit die usance reduced to 4 months.
The circumstance of a shipper of produce being able to pay for it to a large extent by the negotiation of his draft at 6 months’ sight on his consignee in England, makes many a speculative person a shipper who would not be so, if he had to keep in view the probability of his consignee in England having to come under advance by accepting a bill at shorter usance.
Why are bills of exchange drawn at all against shipments of produce from India and other countries, and why does the shipper not pay for his produce out of his own resources, and wait to be reimbursed by remittances from the country where his produce has been turned into money? A shipper of produce to a large extent would, as the saying runs, require to have the Bk.o.E. at his back, to enable him to keep up a continuous stream of shipments if he did not draw against them. There are Bankers of the old rigid school – narrowminded beings – who look upon the purchases of such drafts as not legitimate banking business. We do not subscribe to this view of the case. Banks such as the Oriental, the Chartered Mercantile, and the Chartered of India have been established for the express purpose, amongst others, of dealing in exchanges, as set forth in their charters; what would the mercantile community do without such facility? Bills of Exchange drawn and negotiated against produce shipped from abroad, at once become representatives of value to a certain extent of that produce. They also become a circulating medium during their currency, and aid the purposes of trade and commerce, which, without such transactions, would be confined to very narrow limits indeed.