# [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.
Notes Issued: £.26,851,825 Decrease: £442,895
Active Circulation £.26,120,995 Increase: £3,776,600
Reserve in Notes und Cash £.1,202,810 Decrease £4,608,935
Public Deposits: £5,936,219 Increase: £.154,392
Other Deposits: £18,620,672 Increase: £.5,105,135
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

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 The notes withdrawn mostly hoarded by Country Bankers etc. The £832,335 of coin and bullion withdrawn must have been taken away chiefly by provincial, Scotch, and Irish bankers, as a measure of precaution.

Bk.o.E. minimum rate of Discount: 10%. 4%.

Bankrutte in Liverpool unter cotton merchants und shipowners.

### B.o.E. Return. 23 May (Wednesday)

 Circulation Issue £.26,300,435 Decrease: £557,390 Circulation Active 25,469,570 Decrease: 651,425 Reserve. Notes. 830,865 Increase 100,035 Gold and Silver coin. 557,351 Increase. 85,371 Coin and Bullion in Both Dpts. 11,857,786 Decrease: 466,019 Public Deposits 5,994,761 Increase 58,542 Other Deposits 18,790,917 Increase 170,245 Gvt. securities in Banking Dpt. 10,837,056 No change Private Securities 31,050,406 Increase: 107,147.
B.o.E. Bk o E. B.o.F.
Active Circulation £.25,469,570 £.35,187,000
Loans 31,050,406 28,481,000
Coin and Bullion 11,857,786 21,465,500
Minimum Rate of Discount. 10% 4%.

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.|

2a
24 May.
• 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 .

### Bank o. England. 30 May 1866.

 Circulation Issue £.26,434,205. Increase. £133,770 Circulation Active 26,018,795 Increase: £549,225 Public Deposits 6,118,512 Increase 193,751 Private Deposits 20,467,080 Increase 1,676,163 Reserve. Notes. 415,410 Zusammen £.859,980 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

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%

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.

(verte)|

### B.o.E. 18 July. 1866.

 Circulation Issue £.27,919,835. Decrease. £.367,680 Active Circulation 25,421,380 Increase 228,550 Gold Coin and Bullion in Issuing department £.12,919,835. Reserve Notes £.2,498,455 Decrease. 596,230 Zusammen 3,224,595 Gold and Silver Coin 726,140 Decrease 576,045 Public Deposits 2,161,726 Decrease £565,013 Privates Deposits. 19,820,939 Decrease 1,651,546 Gvt. Securities (Banking Department) 10,028,123 Decrease 250,000 Private Securities 27,752,249 Decrease 1,287,285

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.

### Money Market and Bank Act.

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 Zusammen. £40,165,975.

### B.o.E. 25. July. 1866.

 Circulation Issue £27,893,125 Decrease £26,710 Active Circulation 25,263,090 Decrease 158,290 Bullion. £12,893,125 Decrease Reserve Notes £2,630,035 Increase 131,590 Zusammen 3,453,739 Gold et Silver Coin 823,704 Incr. Increase 229,144 Public Deposits 2,517,449 Increase 355,723 Private Deposits. 18,546,769 Decrease 1,274,170 Gvt. Securities. 9,828,123 Decrease 200,000 Private Securities 26,742,316 Decrease 1,009,933

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.

### 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.
June 1862 £.14,353,034 £.1,256,250 19,922 £12,054,763 2,492,912 £.1,183,030
Dec. 1862 13,898,736 1,262,656 4,404 11,069,157 2,492,412 1,184,227
June 1863 14,549,276 1,269,223 27,759 12,083,891 idem 1,369,954
Dec. 1863 15,629,095 1,275,953 18,845 13,273,315 idem 1,308,165
June 1864 18,516,084 1,300,000 8,830 16,035,805 idem 1,516,696
Dec. 1864 806,604£ 18,649,216 19,455,820 1,330,000 9,357 16,256,594 idem 1,447,445
June 1865 985,212 19,552,178 20,537,389 1,338,250 22,605 16,936,301 2,489,412 1,617,320
Dec. 1865 1,554,730 19,224,571 20,779,302 1,346,706 16,498 16,600,522 idem 1,677,841
June 1866 1,274,243 21,024,212 22,298,445 1,450,000 23,018 16,578,049 2,594,712 3,464,467

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 Dec. 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.

 Circulation Issue £.27,932,340 Increase £39,215 Circulation active 25,519,950 Increase £256,860 Bullion £12,992,340 Reserve. Notes £.2,412,490 Decrease 217,645 Gold and Silver Coin 861,000 Public Deposits 3,189,580 Increase 672,131 Private Deposits 17,738,851 Decrease 807,918 Gvt. Securities 10,128,123 Increase 300,000 Private Securities 26,567,368 Decrease 174,948 Coin and Bullion in both departments 13,793,340 Increase 76,511 Total Reserve in Banking Department. 3,273,390 Decrease 180,349

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.

Mercantile Embarrassments:
• 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.

### B. o. 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.

### Privileges of the B. o. England, and its Reserves.

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.

 Circulation Issue. £.27,775,260 Decrease £157,080 Circulation active 25,042,200 Decrease 477,750 Bullion 12,775,260 Reserve Notes 2,733,060 Increase 320,670 Coin 847,169 Public Deposits 3,160,456 Decrease 29,124 Private Deposits 17,660,244 Decrease 78,607 Gvt. Securities 10,078,123 Decrease 50,000 Private Securities 26,156,555 Decrease 410,813 Coin et Bullion in both Departments. 13,622,429 Decrease 170,311 Total Reserve in Banking Department. 3,580,229 Increase 306,839

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.

Mercantile Embarrassments:
• 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.

### Banks of England and France. (August und Sept. 1866)

 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 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.|

7-8
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
Bullion. £13,151,595 13,690,635
Reserve Notes £.3,611,505 Increase 878,445 4,508,520 Increase 897,015
Coin 999,361 1,081,585
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 amount of the increase in bullion shows that coin arriving back from the country, the actual sum sent in from abroad being £361,000.

Mercantile Embarrassments:
• 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.

Mercantile Embarrassments. Younghusband and Co, Australian trade. Ferner: Failure of Walley et Co, cotton manufacturers, of Blackburn.

### Banks of England and France. 1866 (Sept. Oct.)

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.
B.o.E. B.o.F. B.o.E. B.o.F. B.o.E. B.o.F. B.o.E. B.o.F. B.o.E. B.o.F. B.o.E. B.o.F.
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.
B.o.E. B.o.F. B.o.E. B.o.F. B.o.E. B.o.F. B.o.E. B.o.F.
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.|
9-10
Bank of England. 1866. (September. October.)
Week ending
29. August
Week ending
5 September.
Week ending
12 September.
Week ending
19 September
Week ending
26 Sept.
Week ending
3 October.
Week ending
10 October.
Week ending
24 October.
Sollte vor der vorigen Rubrik stehn. Week ending
17 Oct.
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
3) Bullion. 14,732,115 15,098,390 14,893,175 15,158,035 15,636,110 15,905,910 15,471,740 15,419,540 15,131,445
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
Coin. 1,099,905 1,096,8222 1,096,822 1,081,602 1,065,481 1,093,152 973,227 995,766 957,818 1,001,918
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

### Moneymarket.

#### Week ending 1st Sept.

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.

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:

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.

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.

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.

Mercantile Embarrassments: Failure of the great native speculator, (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.

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.

(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.

#### Week ending 20 October:

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.

Failures announced from Melbourne.

#### Week ending 27 Oct.

Failures: Preston: Wilding and Strachan, spinners and manufacturers. Birmingham. G. Pell, Heyford Ironworks, liab. £.160,00 £.160,000.|

### 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.
1844 21/2 50s. Normal
Prices
troughout
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
1851 3 38
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.)

### 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.

Profits and Dividends of the B.o.E. since the passing of the Bank Act of 1844.
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.
1) 2) 3) 4) 5) 6) 7)
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
Wednesday
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

(verte)|

13

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 £975,655.

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 B.o.E. Rates of Discount for 22 years.

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:

Analysis of the Bank Rates of Discount for 22 years.
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.
Weeks. Days. Weeks. Days. Weeks. Days. Weeks. Days.
2 37 14 51
21/2 115 38 48 201
3 131 62 42 235
31/2 63 27 12 5 102 5
4 31 10 83 5 124 5
41/2 21 6 20 2 42 1
5 22 74 5 27 6 124 4
51/2 11 4 26 2 39 4
6 3 21 4 49 73 4
61/2 49 3 49 3
7 1 3 4 35 4 41
8 4 4 3 28 36 3
9 4 11 11 4
10 6 3 13 6 20 2
382 383 388 1,153

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.

### 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. $. Gold in New Zealand for quarter ended 30 June 1866, and year ended 30 June 1866. 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£ Marlborough 34 132 2,418 9,373 32,932 126,597 Nelson 32,654 126,532 135,277 524,202 221,323 857,720 Canterbury 103,982 403,026 390,237 1,512,263 455,895 1,772,282 Otago 45,008 174,405 203,850 789,918 1,983,845 7,687,400 Southland 1,603 6,211 1625 6,296 1625 6,296 Totals 185,351 717,557 738,817 2,859,249 2,713,484 10,506,058| ### Evils of two distinct departments in the B.o.E. shown by her weekly Returns. 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. Both Departments together. 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. June 6 £.31,772,000 £.1,675,000 13 31,270,000 502,000 20 31,209,000 61,000 27 30,844,000 325,000 July 4 30,750,000 134,000 11 29,040,000 1,710,000 18 27,752,000 1,228,000 25 26,742,000 1,010,000 Aug. 1 26,567,000 175,000 8 26,157,000 410,000 15 25,224,000 933,000 22 24,888,000 336,000 29 23,937,000 951,000 Sept. 5 23,226,000 711,000 12 22,482,000 744,000 19 22,124,000 358,000 26 21,752,000 372,000 Oct. 3 22,941,000 0 £.1,189,359 10 22,150,000 791,000 17 21,245,000 905,000 24 20,553,000 692,000 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 | ### Bank of 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 3) Bullion 15,937,245 16,084,720 16,744,190 17,142,275 17,226,360 17,497,700 17,699,545 18,307,880 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 Coin 954,361 1,059,887 1,008,724 1,033,295 1,010,684 1,053,771 1,116,169 939,979 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. 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) 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 , which suspended during recent panic. #### Week ending 17 November. 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. 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. Increase of Reserve durch influx of public und private deposits. Mercantile Embarrassments: Will. Dargan, Extensive Irish contractor. #### Week ending 1 December. 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. 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: 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: 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 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. 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. 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. ## Bank of England and Moneymarket. 1867. From January to May 1. Week ending 1) Circulation Issued. 2) Circulation Active. 3) Bullion in Issue Department. 4) Reserve Notes. 5) Reserve Coin. 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 D. 398,876 19,177,382 I. 153,189. 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 19,311,413 I. 134,031 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 I. 543,057 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 Bank of France. (Rate of discount of B.o.E. and B.o.F.) 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 Market. #### Week ending January 5. 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. 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. 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 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. 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 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. 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. 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. 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 .) #### Week ending 16 Febr. 1867. 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. 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. 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.| ### Notizen über Moneymarket. Railway Market gloomier than ever. (This week the announced its inability to pay the 1% dividend it had declared. Fall of 2% in , 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 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. 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. 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 , in which one of the partners was large shareholder. 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. 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: 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. #### Week ending April 13. 1867: 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. 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 1867: 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: 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] ### Currency Theories and Currency Facts. (Money Market Review 5 Jan. 1867) 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: 1866 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. ; 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. 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.| ### Board of Trade Returns. Value of Imports. Month ended October 31. Enumerated Articles. 1864: £20,309,746 1865: 23,606,789 1866: £19,530,442 Imports. Ten Months ended October 31. Enumerated Articles. 1864. £.181,283,856 1865: 160,909,954 1866: 193,698,047 Less Raw Cotton. 62,098,915 43,899,564 67,175,970 119,184,941 117,010,390 126,522,077 Less Corn 17,054,343 15,928,658 23,143,400 102,130,598 101,081,732 103,378,677 Exports. Declared Value. Month ended November 30 All articles: 1864: £12,065,213 1865: 15,567,742 1866: 15,080,430 Exports 11 months. Ended Nov. 30 All articles 1864: £148,340,865 1865: 150,832,344 1866: 173,913,222 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 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 purchase Mr. Crawshay Baily’s 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 to Credit 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. ### Money Investments. Zusatz von Marx. Schließen (Shares) (Panic) (Limited Liability Cos)(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 1863: 263 £.100,053,000 £.78,135,000 £8,875,550 1864: 282 155,887,500 106,523,000 12,545,800 1865: 287 106,995,000 75,578,900 12,174,790 1866: 44 10,295,000 7,920,000 2,052,500 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 Do Do 1865 15,090,600 Do Do 1866 about. 300,000 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 Banking 58 72,950,000 51,950,000 5,252,750 Financial and Discount 50 69,350,000 45,750,000 4,391,250 Railways 44 36,796,000 25,516,000 3,385,250 Assurance 33 28,775,000 15,375,000 1,677,500 Shipping 43 25,238,000 19,353,000 1,869,100 Building and Investment 38 13,485,000 9,745,000 1,810,000 Mining 147 12,448,500 11,145,000 3,018,800 Hotels 82 7,640,000 6,752,000 1,293,350 Gas 17 3,875,000 3,185,000 587,500 Miscellaneous 81 17,903,000 14,483,000 2,249,100 Total 876 £373,230,500 £268,156,900 35,648,640 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 1866 49,288,800 59,695,719 £185,024,114 £133,028,595 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.| ### Petroleum. Zusatz von Marx. Schließen (Demand und Entdeckung neuer nützlicher Anwendbarkeit einer Waare.) 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 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. Texas 237,321 604,215 California 188,982 379,994 Oregon 95,274 52,465 Minnesota 83,531 143,855 Minnesota 31st State in order of population per □ mile, but 25th in increase of population per □ mile from 1850–1860. In no respect its progress more marked than in value of flour and meal produced and sent to market. 1850 1860 Increase P.Ct. Minnesota: Flour and Meal. Value$500 $1,310,000 2619 Illinois: Ditto$5,781,483 \$18,104,804 213
1850 1860
Wheat 1401 bushels 2,195,812 bushels
Rye 125 124,259
Indian Corn 16,725 2,987,570
Oats 30,582 2,202,050
Tobacco 0 38,510 lbs
Wool 85 lbs 22,740 dtto
Peas and Beans 10,002 bushels 18,802 bushels
Irish potatoes 21,145 2,027,945
Barley 1216 125,180
Buckwheat 515 27,677
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.

### 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.

### 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 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 1846 21/2%, with a concomitant mania for railway speculation. 1847 panic mit nominal 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.

### Beispiele 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£.

### Full Board of Trade Returns. 1864. 1865. 1866. (Money Market Review 23 March 1867.)

1864 1865 1866
Total Imports £226,161,840 219,393,987 238,714,094
Total Exports £160,449,053 165,835,725 188,827,785
Difference £65,712,787 53,558,262 49,886,309

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:

Imports as valued in the years
1864 1865. 1866.
Enumerated Articles £226,161,840 219,393,987 238,714,094
Deduct raw cotton 78,203,729 66,032,193 77,521,406
147,958,111 153,361,794 £161,192,688
Deduct silk, raw and manufactured. 12,925,347 17,692,499 15,894,333
135,032,764 135,669,295 145,298,355
Deduct sugar unrefined. 14,404,150 11,302,624 10,799,591
120,628,614 124,366,671 134,498,764
Deduct Tea. 9,438,760 10,044,462 11,129,741
111,189,854 114,322,209 123,369,023
Deduct Timber. 10,960,244 11,500,960 10,459,904
100,299,610 102,821,249 112,909,929
Deduct Wool. 17,667,441 17,071,017 19,858,476
£.82,562,169 £85,750,232 £93,051,453

(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
Exports of British and Irish Produce as valued in the years
1864 1865 1866
Declared values £160,449,053 165,835,725 188,827,785
Deduct: Cotton Manufactures 45,799,090 46,923,384 60,685,022
114,649,963 118,912,341 127,962,763
Deduct: Linen Manufactures: 8,172,813 9,156,990 9,576,163
106,477,150 109,755,351 118,386,600.

The 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%.

### 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.

### Railway Discredit (30 March 1867. Money Market Review)

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.

### 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.

### Stock Markets. (Week ending 30 March 1867.)

Again almost general fall in English Railway Stocks, in which the daily transactions, bona fide, and speculative, important. The disgraceful revelations 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.

### Railway Collapse.

„Railway Accounts, A letter to Lord Redesdale. By John B. England.“ (London 1867) Money Market Review (20 April 1867.[)]

England giebt folgendes:

1860. 1867.
Ordinary Stock Loans and Preferences. Total Capital Ordinary Stock Loans and Preferences Total Capital.
South Eastern £7,400,000 £4,200,000 11,600,000 7,600,000 12,100,000 19,700,000
Brighton 4,600,000 3,800,000 8,400,000 5,400,000 13,200,000 18,600,000
Chatham 900,000 300,000 1,000,000 2,000,000 10,700,000 12,700,000
Summa £12,700,000 8,300,000 21,000,000 15,000,000 36,000,000 51,000,000.

Also in a comparatively small district Railway Capital raised in 7 years by 30 millions (verte)|

33
1860 1866
American Lines. Capital. Traffick. Capital. Traffick
New York Central £7,700,000 £1,250,000 £.7,800,000 £2,900,000
Pennsylvania Central 5,600,000 1,100,000 7,200,000 3,500,000
Totals 18,100,000 2,950,000 20,100,000 8,600,000
1860 1866
English Lines Capital. Traffick Capital Traffick
Great Western £.27,000,000 £1,800,000 + £45,000,000 £3,600,000
Great Eastern (E.C.
(Eastern Counties Proportion)
11,300,000 950,000 24,000,000 1,800,000
North British 4,600,000 290,000 20,000,000 1,310,000
South Eastern 11,600,000 1,050,000 18,000,000 1,360,000
Brighton 8,400,000 820,000 16,500,000 1,190,000
Totals 62,900,000 £4,910,000 £123,500,000 £9,260,000
+ 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 Bullion Movement. (April 27, 1867 Money Market Review)

 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.

### Week ending 4 May 1867. Railway Collapse.

Die Enthüllungen des Investigation Committee, und South Eastern, [haben die Angst] vor neuem Railway Panic vergrössert.

### 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 rise“ seems to have begun, railways, of course, excepted.

### Movement of gold.

 First quarter of 1867 imported £2,153,182, of 1866 £2,425,989 of 1865 £2,651,237. The largest imports were from Australia, sent £1,168,510 (first quarter of 1867) 1,309,178 (corresponding 3 months of 1866) 533,032 (--------------- 1865) From United States Gold receipts: £210,524 (to March 31, 1867) 353,522 (--------------- 1866) 987,829 (--------------- 1865) Exports of Gold from U. Kingdom £1,471,794 (to March 31, 1867) 1,396,364 (--------------- 1866) 1,470,514 (--------------- 1865). Von diesen gold Exports largest to France: £1,078,848 (to March 31, 1867) 943,759 (--------------- 1866) 881,361 (--------------- 1865)

### Caledonian Railway. (17 Years ago) (Money Market Review 25 May 1867)

Vor 17 Jahren a committee of investigation into affairs of the 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.)

### Debt. (Money Market Review. 25 May 1867.)

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) Half the debt of the universe is ours 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.

### Committees of Investigation. (Money Market Review June 1. 1867)

At recent special meeting of the , 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.

### Investment of Money  Zusatz von Marx. Schließen (Funds. 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.

### Pre-Preference Railway Stock. The North British Bill before Parliament. (Money Market Review June 1 ’67)

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“.

### London and Westminster Bank. Its Progress. Proposed issue of new shares. (Money Market Review June 1, 1867)

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
1846 800,000 3,287,589 £2,644,257
1856 1,000,000 11,438,462 8,150,873
1866 1,000,000 22,672,559 11,234,097.
 For London and Westminster 6.28% London and County 7.33 Union 7.79 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.

Die Einnahmen der London und Westminster during last 7 years:
Net Profits. Dividends paid Rate of dividend p. ann. Profits reserved.
1860 £.219,565 200,000 20% £19,565
1861 254,567 220,000 22 34,567
1862 232,426 220,000 22 12,426
1863 277,738 250,000 25 27,738
1864 472,438 300,000 30 172,438
1865 333,847 300,000 30 33,847
1866 463,685 300,000 30 163,685

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.|

### 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 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.

### 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 War between Railway Shareholders and the Board Rooms. Midland Railway (8 June ’66 ’67 Money Market Review)

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 Report of the Parliamentary Committee on Limited Liability.  Zusatz von Marx. Schließen (Watkin) (Société en commandite“ commandite).

Watkin Chairman of it.

### British Mining. The Cost-Book System etc (Money Market Review 15 June ’67.)

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.

### Brighton 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
1854 £4,615,000 £1,237,000 £1,837,000
1866 5,373,000 6,345,000 4,042,000
Increase £758,000 5,108,000 £2,205,000

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 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 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.

### 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.

### 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“. 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 Act, 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 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

Schuster declares cooly that that ex[-]Lord Chancellors (Westbury) know nothing of railway affairs.

### Clearing House. 1839.

Sir John Lubbock in his letter to Money Market Review, May 9 (worin erste officielle Clearing House bulletin since 1839) giebt für 1839 (Aus Babbage in Journal of the

Average Clearing House Amounts for 1839 were
Average of each day of the Week Average of each days of Week (1839) omitting 4th of each month and settling day.
Thursday £.2,725,000 2,367,400
Friday 3,098,000 2,912,900
Saturday 3,621,700 3,575,000
Monday 3,927,700 2,653,200
Tuesday 3,292,600 3,123,200
Wednesday 2,734,400 2,514,700
Total 18,400,200 17,146,400

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. (Fortsetzung)]

Bank of England from May 11 1867 to 29 June 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
8 May

£.32,963,230

D 204,180

23,146,810

D. 152,855

17,963,230

9,816,420

D 54,325

1,167,127

10,983,547

I. 34,317

7,406,357

I 353,856

17,535,100

D 258,817

12,886,314

No change.

19,220,896

I 51,572

19,130,357

D 118,538

15 May

33,092,655

I. 129,425

23,184,505

I 87,695

18,092,655

9,908,150

I 91,730

1,152,622

11,060,772

I 77,225

7,534,212

I 127,855

17,513,823

D 21,777

No change

19,258,506

I 37,610

19,245,277

I 114,920

22 May

33,532,965

I 440,310

22,771,450

D 413,055

18,532,965

10,761,515

I 853,365

1,131,103

11,892,618

I 831,846

8,584,864

I 1,050,652

17,185,452

D 327,871

No change

19,122,322

D 136,184

19,664,068

D 418,791

29 May

34,287,765

I 754,800

22,929,170

I 157,720

19,287,765

11,358,595

I 597,080

1,129,518

12,488,113

I 595,495

8,843,011

I 258,147

17,309,383

I 123,931

No change

18,883,405

D 238,917

20,417,283

I 753,215

5 June

34,806,080

I 518,315

23,178,990

I 249,820

19,806,080

11,627,090

I 268,495

1,148,246

12,775,336

I 287,223

9,179,707

I 354,696

17,187,204

D 122,179

No change

18,873,580

D 9825

20,954,326

I 537,043

12 June

35,181,655

I 375,573

22,767,730

D 411,260

20,181,655

12,413,925

I 786,835

1,148,745

13,562,670

I 787,334

9,804,049

I 606,342

17,172,723

D 14,481

No change

18,650,101

D 223,479

21,300,400

I 376,074

19 June

35,710,870

I 529,215

22,699,670

D 68,060

20,710,870

13,011,200

I 597,275

1,171,900

14,183,100

I 620,430

10,500,391

I 696,342

16,987,972

D 184,751

No change

18,516,348

D 133,753

21,882,770

I 552,370

26 June

36,102,250

I 391,380

23,204,910

I 505,240

21,102,250

12,897,340

D 113,860

1,184,434

14,184,774

D 101,326

11,105,413

I 605,022

17,854,106

I 866,134

No change

20,098,076

I 1581,628

22,286,684

I 403,914

 Week ending 8 May Thursday. May 2. Friday. May 3. Saturday. May 4. Monday. May 6. Tuesday. May 7. Wednesday. May 8. Total £8,767,000 10,188,000 12,900,000 7,302,000 8,647,000 9,220,000 £57,024,000 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. £9,554,000 9,453,000 9,321,000 8,301,000 8,968,000 18,177,000 63,774,000 Week ending 22 May 16 May May 17. May 18 May 20 May 21 May 22 £10,155,000 11,309,000 11,685,000 7,580,000 8,451,000 8,288,000 57,468,000 Week ending 29 May 23 May 24 May May 25 May 27. May 28. May 29 £7,986,000 9,112,000 9,653,000 8,293,000 9,348,000 7,679,000 52,071,000 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. £7,793,000 18,329,000 11,206,000 9,281,000 13,132,000 8,639,000 68,380,000 Week ending 12 June 6 June 7 June 8 June 10 June 11 June 12 June £9,749,000 10,862,000 12,443,000 9,118,000 9,392,000 8,140,000 59,704,000 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. £7,652,000 19,125,000 14,086,000 9,765,000 11,233,000 8,216,000 70,077,000 Week ending 26 June 20 June 21 June 22 June 24 June 25 June 26 June £8,247,000 9,030,000 10,708,000 8,996,000 10,102,000 7,704,000 54,787,000
Bk. o. France (Rate of Discount of Bank of France and Bk. o. England. (1867, 8 May – 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 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 34,545,110 34,821,002.|

### Notices to Money Market von week ending May 11 – June 29 1867.

#### Week ending May 11:

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:

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.

Mercantile Embarrassments: Harrison (Bacup) pays 5s. in £. Liabilities £30,000.

#### Week ending May 25:

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.

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.

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.

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.

Mercantile Embarrassments: Failure of Msrs Harford, old and highly respectable underwriters of Lloyd’s. Heavy liabilities.

#### Week ending June 15.

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.

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.

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.

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.

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]

### 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.

### Foreign Trade of the U. Kingdom (1854–1866) (incl.)

 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

### Railway Capital in Un. Kingdom during the last 15 years.

#### 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 Capital.

 Between 1852 and 1862 average increase of railway Capital (yearly average) 11 to 12 Millions p. annum. 1863: £18,997,364 1864: 21,503,811 1865: 29,758,530

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 15 years.

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. (Fortsetzung)]

Bank of England from week ending 3 July 1867 to 25 September 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.
3 July

£.36,442,570

I 340,320

24,353,860

I. 1,148,950

21,442,570

12,088,710

D 808,630

1,053,285

13,141,995

D 939,779

9,356,727

D 1,748,686

18,868,210

I 1,014,104

12,830,773

D. 55,541

20,465,251

I 358,175

22,495,855

I 209,171

10 July

36,390,030

D. 52,540

24,053,080

D 300,780

21,390,030

12,336,950

I 248,240

1,151,201

13,488,151

I 346,156

5,121,309

D 4,235,418

21,232,551

I 2,364,341

No change

18,361,530

D 2,094,721

22,541,231

I 45,376

17 July

£36,559,685

I 169,655

24,199,430

I 146,350

21,559,685

12,360,255

I 23,805

1,127,041

13,487,296

D 855

4,618,373

D 502,936

20,895,525

D 337,026

No change

17,576,507

D 785,023

22,686,726

I 145,495

24 July

£36,557,895

D £1,790

24,102,715

D 196,715

21,557,895

12,555,180

I 194,925

1,213,969

13,769,149

I 281,853

4,697,247

I 78,874

20,775,813

D 119,712

No change

17,248,489

D 328,018

22,771,864

I 85,138

31 July

£36,725,265

I 167,370

24,182,960

I 180,245

21,725,265

12,542,305

D 12,875

1,201,188

13,743,493

D 25,656

4,898,151

I 200,904

20,593,817

D 181,996

No change

17,322,457

I 73,968

22,926,453

I 154,589

7 August

£.37,042,835

I 317,570

24,343,480

I 160,520

22,042,835

12,699,355

I 157,050

1,212,729

13,912,084

I 168,591

5,189,684

I 291,533

19,856,932

D 736,885

12,812,373

Decr. 18,400

16,763,303

D 559,154

23,255,564

I 329,111

14 August

£37,287,810

I 244,975

24,113,270

D 230,210

22,287,810

13,174,540

I 475,185

1,203,703

14,378,243

I 466,519

5,508,038

I 318,354

19,947,453

I 90,521

No change

16,723,849

D 39,454

23,491,513

I 235,949

21 August

£37,358,310

I 70,500

23,931,890

D 181,380

22,358,310

13,426,420

I 251,880

1,174,351

14,600,771

I 222,528

6,526,514

I 1,018,476

19,468,445

D 479,008

No change

17,052,659

I 328,810

23,532,661

I 41,148

28 August

£37,325,395

D 32,915

23,693,810

D 238,080

22,325,395

13,631,585

I 205,165

1,249,331

14,880,916

I 280,145

7,350,218

I 823,704

18,870,130

D 598,315

No change

16,976,823

D 75,836

23,574,726

I 42,065

4 Sept.

£37,859,110

I 533,715

24,062,940

I 369,130

22,859,110

13,796,170

I 164,585

1,213,172

15,009,342

I 128,426

7,673,107

I 322,889

18,866,324

D 3,806

12,845,272

Incr. 32,899

17,456,518

I 479,695

24,072,282

I 497,556

11 Sept.

£38,126,665

I 267,555

23,720,295

D 342,645

23,126,665

14,406,370

I 610,200

1,221,867

15,628,237

I 618,895

7,944,522

I 271,415

19,154,778

I 288,454

No change

17,359,943

D 96,575

24,348,532

I 276,250

18 Sept.

£38,329,665

I £203,000

23,706,425

D 13,870

23,329,665

14,623,240

I 216,870

1,168,782

15,792,022

I 163,785

7,974,897

I 30,375

19,165,910

I 11,132

12,895,272

I. 50,000

17,216,262

D 143,681

24,498,447

I 149,915

25 Sept.

£38,237,860

D 91,805

23,408,105

D 298,320

23,237,860

14,829,755

I 206,515

1,209,983

16,039,738

I 247,716

8,361,152

I 386,255

18,919,280

D 246,630

No change

17,121,694

D 94,568

24,447,843

D 50,604

 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. £.8,505,000 £16,234,000 £13,779,000 12,094,000 10,739,000 8,787,000 £70,138,000 Week end. 10 July July 4 July 5 July 6 8 July 9 July 10 July This Returns Return includes the Dividend Period. 10,903,000 10,487,000 11,467,000 11,306,000 10,704,000 12,622,000 £67,489,000 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. £10,161,000 11,415,000 11,738,000 11,894,000 17,261,000 9,284,000 £71,753,000 Week ending 24 July July 18 19 July 20 July 22 July 23 July 24 July £10,764,000 8,874,000 9,992,000 9,926,000 10,146,000 8,428,000 £58,130,000 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. £.8,278,000 £9,168,000 9,787,000 8,385,000 9,034,000 16,033,000 £60,685,000 Week ending 7 August August 1 2 Aug. 3 Aug. 5 Aug. 6 Aug. 7 Aug. £.9,541,000 10,601,000 12,510,000 9,416,000 9,024,000 9,410,000 £60,502,000 Week end. 14 August 8 Aug. 9 Aug. 10 Aug. 12 Aug. 13 Aug. 14 Aug. £10,701,000 9,696,000 10,590,000 9,101,000 10,431,000 9,777,000 £60,296,000 Week end. 21 August 15 Aug. 16 Aug. 17 Aug. 19 Aug. 20 Aug. 21 Aug. £16,309,000 11,242,000 11,275,000 9,145,000 8,175,000 7,583,000 £63,729,000 Week end. 28 August 22 Aug. 23 Aug. 24 Aug. 26 Aug. 27 Aug. 28 Aug. Shows that business flat. £8,093,000 9,036,000 10,068,000 7,176,000 7,812,000 8,254,000 £50,439,000 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. £7,027,000 15,762,000 11,233,000 9,948,000 8,438,000 11,887,000 £64,295,000 Week end. 11 Sept. 5 Sept. 6 Sept. 7 Sept. 9 Sept. 10 Sept. 11 Sept. Amount fallen back to the recent low average. £8,045,000 8,289,000 10,036,000 8,660,000 10,786,000 8,427,000 £54,223,000 Week end. 18 Sept. 12 Sept. 13 Sept. 14 Sept. 16 Sept. 17 Sept. 18 Sept. Slight Increase by Stock Exchange Settlement. £6,804,000 14,341,000 10,699,000 8,863,000 8,451,000 8,808,000 £57,996,000 Week end. 25 Sept. 19 Sept. 20 Sept. 21 Sept. 23 Sept. 24 Sept. 25 Sept. Total even below the recent low average. £6,870,000 8,074,000 10,484,000 7,649,000 8,191,000 8,989,000 £50,257,000

(Verte)|

Bank of France (Rate of Discount for French Bank und B.o.E. From Week ending July 3 to ending 25 Sept. 1867[)].
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 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 £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

I. 160,000

Notes Total
44,859,705£

D 560,000

Notes Total
44,297,765£

£333,500

Notes Total
£44,635,150

D 27,000

Total of Notes
£44,606,025

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.

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.

Mercantile Embarrassments: Sir Morton Peto, Bart. M.P., Edward Ladd Betts , , railway contractors, adjudged bankrupts. Assets of George Beard in Iron Trade, who recently failed, not 5s. in £.

#### Week ending July 13, 1867:

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.

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.

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.

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.

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.

New Russian Loan for 12 Mill. £ St. (Baring Brothers et Co)[.] Dulness characterises every department of the Stock Exchange.

#### Week ending August. 10.

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.

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.

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. 1867.

#### Week ending August 24. 1867.

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.

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 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.

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.

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.

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.

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.

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 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 Total £4,472,734
 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 Total £2,408,778
 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 Total £4,691,007.
 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 Total £4,688,346

Diese 4 Railways together in 3 years more than 16£ St. (Millions) gepumpt. Difference between them: with The et , the last dividends paid palpable illusions, whilst with und , there was something real, if not all.

### Pre-Preference Stock. – Great Eastern in Chancery.

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.|

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„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 London, Chatham, Dover Railway Account with Peto et Co. (Money Market Review 6 July, 1867)

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 £2,571,551 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 7) Total. £15,997,994
 For work done £2,993,265 For cash 2,171,337 £5,164,602 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.

### British Exports of Cotton Goods to East Indian Empire. (Money Market Review July, 13, 1867)

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.

Exports of plain cotton von England und Scotland to India (the 3 ports of Calcutta, Bombay, Madras) von 1857–1867.
Year Total Exports in Yds Average Export per month in yds
1857 318,461,238 26,538,436
1858 611,172,943 50,931,078
1859 742,535,638 61,877,970
1860 587,849,719 48,987,477
1861 588,920,874 49,076,740
1862 376,581,472 31,381,789
1863 420,630,376 35,052,531
1864 346,764,580 28,897,048
1865 418,140,905 34,845,076
1866 550,894,854 45,907,904
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?

### Board of Trade Returns. Month ended April, and 4 months ended April.

Imports In the month ending 30 April
Imports. 1865 1866 1867
Enumerated articles £13,078,755 22,455,968 18,701,332
In 4 months ended 30 April
Enumerated articles £45,337,850 £68,804,895 £60,166,150
Less Raw Cotton 13,967,469 29,244,760 17,579,628
£31,370,381 £39,560,135 £42,586,522
Less wheat 1,089,367 3,531,492 6,285,401
£30,281,014 £36,028,643 £36,301,121
Exports British Exports in Month ended 31 May
All articles £13,194,758 15,870,131 £15,936,864
In 5 Months ended 31 May
All articles £60,901,576 £78,227,710 £72,123,393
Less Cotton manufactures 18,116,058 25,535,520 22,781,049
£42,785,518 £52,692,190 £49,342,344.

### Amalgamation of Brighton and South Eastern Railway. (Money Market Review July 20, 1867.[)]

Diese 2 Scheiße amalgamated. South Eastern Co. is to take 55% of the Net Revenue, 45%; these terms being subject to alteration mit change of time und circumstances.|

### Pre-Preference Shares. H. o. Lords. 23 July. 1867. Zusatz von Marx. Schließen (H.o.C. Private Interests)

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 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.

### Extraordinary Position of the Money Market. (Money Market Review 3 Aug. 1867)

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.|

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Second Reduction to Minimum discount Rate of 2%. 23 July 23, 1862.
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.

### Pre-Preference Shares. (Money Market Review Aug. 3, 1867.)

In der 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 Stocksimplest 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.

### Board of Trade Returns. (Money Market Review Aug. 3, 1867)

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)

Imports. Computed Real Value. Month ended May, 31, 1867.
1865. 1866 1867
Enumerated articles £14,595,979 £.23,225,301 £23,275,243
Five Months ended May 31.
1865. 1866. 1867
Enumerated articles £59,890,063 £.92,030,712 £83,441,393
Deduct cotton 17,182,887 38,397,752 25,883,272
£42,707,176 £53,632,960 £57,558,121
Deduct cereals 5,703,897 6,891,134 15,375,190
£37,003,279 £46,741,826 £42,182,931

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.|

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Declared Value of Exports (British and Irish Produce)
Month ended June 30.
1865 1866 1867
All articles £13,227,062 £.14,630,120 £15,490,091
Six months ended June 30
1865 1866 1867
All articles £.74,128,638. £92,857,830 £87,613,484
Deduct cotton manufactures. 21,629,845 30,418,414 27,500,523
£52,498,793 £62,439,416 £60,112,961
Deduct linen manufactures 4,056,196 4,917,668 3,796,828
£48,442,597 £57,521,748 £56,316,133
Deduct iron and steel 5,828,545 7,497,609 6,964,213
£42,614,052 50,024,139 £49,351,920
Deduct woollen manufactures. 8,034,020 10,534,581 9,877,715
£34,580,032 £39,489,558 £39,474,205.

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 „The Railway Cos. 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 ließ das H. o. Lords sie durch a sidewind zu, .

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. 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 employment.(Money Market Review 24 August 1867)

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.

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.|

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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.

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.

### 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
Union 10,614,719 708 7,742,404 489 69 17,957,123 81/4
City 2,285,068 394 1,777,529 306 773/4 4,062,597 141/4
Alliance 1,241,579 125 222,521 23 18 1,464,100 671/2
Imperial 1,072,448 217 90,863 18 81/2 1,163,311 421/2
London and South West 479,564 236 15,850 8 31/4 495,414 41
Consolidated 2,159,710 241 128,588 14 6 2,288,298 39
East London 382,605 342 0 0 0 382,605 291/4

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.

### Exports of British Cotton Goods to Indian Empire. (Money Market Review 24 Aug. 1867)

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.
1846 13,910,000 yds 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 Brighton 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.|

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### 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.

Computed Value of Imports.
Month ended June 30.
1865 1866 1867
Enumerated articles: £15,409,877 23,243,939 20,054,958
Six months ended June 30
Enumerated articles: £75,299,940 115,274,651 103,496,351
Deduct raw cotton: 20,478,572 47,348,759 32,367,199
£54,821,368 67,925,892 71,129,152
Deduct cereals 7,409,782 13,465,994 18,101,524
£47,411,486 54,459,898 £53,027,628

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.

Exports, exclusive of Foreign Goods previously imported but not manufactured.
Month ended July 31st
1865 1866 1867
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
83,230,001 100,238,579 94,762,045
Deduct cotton manufactures 25,428,024 35,258,375 32,117,439
£57,801,977 64,980,204 62,644,606
Deduct linen manufactures 4,775,619 5,634,616 4,437,795
53,026,358 59,345,588 58,206,811
Deduct iron and steel 7,016,527 8,799,681 8,413,810
46,009,831 50,545,907 49,793,001
Deduct woolen and worsted yarn 2,924,233 2,465,035 3,326,526
43,085,598 48,080,872 46,466,475
Ded. woolen and worsted manufactures 9,953,550 12,397,896 11,846,369
£33,132,048 35,682,976 £34,620,106

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.|

### Diminution in Profits of B.o.E. Forthcoming Dividends. (Money Market Review 7 Sept. 1867)

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.

### London Joint Banks last half year. (Money Market Review 7 Sept. 1867) Continuatio (S. 59)

Table I. Assets.
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
Union 3,419,647 5,301,168 353 30 14,172,609 945 79
City 502,967 821,115 142 20 3,819,136 658 94
Alliance 317,503 357,228 36 24 2,060,145 208 140
Imperial 272,990 325,440 65 28 1,360,746 275 117
Lond. et Southwest 43,501 43,501 21 9 638,290 314 129
Consolidated 492,664 600,267 67 26 2,428,355 271 106
East London 110,450 110,450 101 29 341,899 305 89

The amounts under „Cash in Hand und Call“ include bei 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.

Table II. Profits and Dividends.
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
Union 122,043 1.36 20.34 99,437 150,000 25 11,479
City 27,344 1.35 10.94 0 25,000 10 700
Alliance 17,055 2.33 3.45 2,757 14,846 3 3,966
Imperial 13,885 2.39 6.17 4,224 13,500 6 4,608
Lond. et South West 4,362 1.76 4.36 1,003 5000 5 365
Consolidated 33,039 2.89 8.71 9,107 18,958 5 8,188
East London 2,293 1.20 4.59 1,509 2,500 5 201

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.

### 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.