[Bank of England and Money Market. 1867. (Fortsetzung)]

[Notices to Moneymarket (Fortsetzung)]

Week ending 26 Oct. 1867.

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The Money Market Review, 26. Oktober 1867. S. 436
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B.o.E. Gold withdrawn for Export about £289,000; da aber decrease £474,796 coin still absorbed in the provinces.

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The Money Market Review, 26. Oktober 1867. S. 437.
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Mercantile Embarrassments: Braybrook und Slater, spinners und manufacturers of Livesey near Blackburn, liabilities £30,000. London: Vivanti, Annett und Balfour, silk trade, owing to speculations on Stock Exchange. Liverpool: Royal Bank und Canada Commercial Bank.

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The Money Market Review, 26. Oktober 1867. S. 430.
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Corn Trade: Late Rise in Cornmarket, natürlich prices partly forced up by Speculation. About (Dornbusch list published 19 Oct. ’67) 247 Cargoes of wheat expected to arrive for orders within next 3 months from South of Europe, California, Australia; since 19 Oct. 70 cargoes have arrived, and 50 remain off the coast for sale. 21 Oct. cornmarket written 3s. lower per qr und floating cargoes fully 5s. cheaper, owing to heavy arrivals mit the fact that speculators realising their profits. Doch diese supplies nicht sufficient. France has deficient crop, was large buyer in our homemarket. Von Americans nichts zu erwarten bis spring; they are only shipping a little. St. Petersburg is about closing und prices dort quoted leave positive loss to importers. In Trieste dealers were failing und merchants in many instances have paid forfeit und cancelled contracts.|

72

Week ending Nov. 9, 1867.

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The Money Market Review, 9. November 1867. S. 480/481 u. 487.
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Mercantile Embarrassments: Mincinglane: Suspension of Th. Kraus et Co., commission merchants (branch at Liverpool) Hauptgrund holding about 6000 bales of cotton. Suspension of Welch Miller und Fawcett, 2 underwriters at Lloyd’s. Stockmarket: Now that cry of repudiation has almost died away, U. States 5-20 Bonds again largely purchased, both for home et Foreign Account. No department more want of confidence than in British Railway Stocks. Successively the actual condition of North British; London, Chatham et Dover; Great Eastern; Great Western; London, Brighton and South East Cos. were revealed to their proprietors. At the Midsummer halfyearly meetings a few more questions than usual were asked, and that was all. The chairmen und directors made plausible speeches, denounced the bears, und dividends greedily accepted. But from that time sales began. Speculators at Liverpool und Manchester, reckoning on nothing the balance of interest by borrowing money in an overstocked market, absorbed the first supply. They thought to wait, and, with returning prosperity, to resell to the public with a profit. Aber public show no disposition to relieve the speculators of their engagements. On the contrary, sales continue, und now a „bear“ party has been organised whose object it is to foster the prevailing distrust. Soundest line in England perhaps the Lancashire und Yorkshire. And they have, during the last 2 years, added to capital an amount almost equal to that which they paid in dividends.

Week ending 16 Nov. 1867.

Aus:
The Money Market Review, 16. November 1867. S. 507/508.
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Stockmarket: General Fall in Joint Stock Bank Shares in Folge der Revelations der Royal Liverpool Bank. Steadily declining prices of all British Railway Stock. Decided by the Vice Chancellor that issue of preference Stock in lieu of dividends is illegal. Announcement of this verdict caused fall of 1% in the Stock of Great Western; 1% fall in London und North Western ; 3% in Lancashire und Yorkshire , 2% in London und South Western et Caledonian has closed at 78, the lowest price of the week, 9% below that current last week.

Week ending 23 Nov. 1867.

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The Money Market Review, 23. November 1867. S. 542.
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B.o.E. Gold taken from it exceeded receipts from abroad by abroad by about £130,000, coin is returning from the Provinces.

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The Money Market Review, 23. November 1867. S. 543/544.
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Mercantile Embarrassments: Loewe und Langford (New London Street) „in consequence of the great falling off in the shipment of cattle from France und general Dullness of Trade“. Liabilities about 22,500£. Manchester: Yates et Corkling, commission merchants, liabilities between £30 und 40,000.

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The Money Market Review, 23. November 1867. S. 537.
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Midland Railway Co, directors apply to raise fresh Capital over the £3,282,867 raised in Year ending July 1867. Hence fall of 3%, from which fall price the stock has still further declined.

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The Money Market Review, 23. November 1867. S. 537.
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North Eastern Railway Co galt als Muster. Fletcher’s data – he being an engineer of the line – held up as model. Now on the line to which Fletcher attached, comes out, charges on revenue under the mark by £130,000 a year; charged to capital for new rolling stock von June 1864 to June 1867 £1,002,000. Capital Account increased in these 3 years by £6,700,000. Mileage increased by the same Co. during this time 134 miles, £50,000 p. mile, while original cost of the railway was £30,000 p. mile. At this rate increased mileage ought to amount only to £4 Millions; of difference of 2,700,000 2/3 represented by charges for rolling cost and cost of old line. Since publication of these charges Extraordinary General Meeting of shareholders held. Chairmen praised the concern, ditto the chief engineer, chief accountant und auditor of the Co. Trotter[’]s remarks in reply quite unheeded, shareholders true of to policy to support directors so long as they declare dividends, chairman’s explanations voted satisfactory unanimously. Main cause of flatness during week in railway shares has been the anxiety of the bankers to lessen their engagements in this class of property. Loans are being called up and pawned stock thus brought to market.

Week ending 30 Nov. 1867.

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The Money Market Review, 30. November 1867. S. 570.
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B.o.E. £298,000 withdrawn from it for Exportation, aber its Diminution nur £177,600; must have been made up by Return of Coin from the provinces.

Week ending Dec. 7. 1867.

Aus:
The Money Market Review, 7. Dezember 1867. S. 598/599.
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B.o.E. Its resources are diminishing. Diminution in Private Deposits, Revival of Discount Business. Amount of gold withdrawn von Bank für Export £394,000 und diminution in coin und bullion £314,126. Mercantile Embarrassments: J. Baynes, manufacturer, Blackburn, liabilities about 80,000£; ditto a cotton spinner at Ashton-under-Lyne, liab. 10,000. Ritter et Co, timber merchants, Fenchurch Street. Otto Hoz et Co, chiefly in silk trade, about 10s. in £.

Week ending Dec. 14. 1867.

Aus:
The Money Market Review, 14. Dezember 1867. S. 626.
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B.o.E. Discount business reviving. Gold withdrawn from abroad (Export) £209,000, diminution shown only £53,000 £53,885. Hence coin reflux from provinces where circulation swelled by requirements of the harvest.

Week ending Dec. 21. 1867.

Aus:
The Money Market Review, 21. Dezember 1867. S. 654.
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B.o.E. Increase in Gvt. Deposits largely attributable to the carrying to that account a sum of £700,000, which the Treasury has obtained from the Bk. as an advance on Exchequer Bonds; hence the increase of that amount in the Gvt. Securities. Bank, during week, received from abroad £43,000 in gold more than it parted with for exportation, and as its Increase £277,152, Evidence of a steady reflux of coin from the internal circulation.

Aus:
The Money Market Review, 21. Dezember 1867. S. 648 u. 655.
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Mercantile Embarrassments: Haden et Sons, irontrade, Dudley, liabilities £60,000, Cohen (Birmingham) merchant und factor, liab. 30,000, offers 5s. in £. Australia: W. S. Anderson (Melbourne), import trade, liab. £15,000, chiefly due to creditors in England. Drymen et Co (Sydney) warehousemen, Liab. 25,000£. Stockmarket: Course during week generally downward.

Week ending 28 Dec. 1867.

Aus:
The Money Market Review, 28. Dezember 1867. S. 671.
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Late Demand for bullion for export has fallen off, and further supplies of gold are shortly expected from America and other places. Another disturbing cause the practice of Jt. Stock. Stock Bk. Cos to restrict their advances, by asking higher terms during the few weeks preceding the issue of their reports and balance sheets, in order to show a large amount of cash in hand. Brokers have not been able lately to work at rates much lower than the „Parlour“ market (B.o.E. Discount)[.] Discount Rates raised von 11/8 or 1 1/4 to 17/8 or 2%.


Eingeklebter Zeitungsausschnitt
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(FROM OUR OWN CORRESPONDENT.)

NEW YORK, Nov. 21.

The great “Erie Railway war” has been renewed. The present contest is even more remarkable than that of last year. On Tuesday Mr. August Belmont, the well known banker, and E. B. Lucke, brought suit against the Erie Railway Company and about 20 other defendants, who have been engaged in speculation in Erie shares, to restrain them from buying or selling certain shares of the common stock, said to have been fraudulently issued by the directors. The complaint is supposed to have been made in the interest of English capitalists, holders of Erie, who have become thoroughly alarmed by the manner in which the value of their property has been diminished. The complaint sets forth, in substance, that by law the directors are commanded to issue no more than $16,500,000 of common stock; but that, in violation of this command, they have issued, first 58,000 shares of common stock, and subsequently shares to the amount of $36,000,000; that the amount of common stock has been fraudulently increased to more than $60,000,000; that the directors have cleared more than $40,000,000 by these operations; that they now hold some $16,000,000; that last year, finding that Daniel Drew, treasurer of the company, had in vast speculations lost a large amount of the company’s money, they induced him to resign, and that he was permitted to settle all claims by payment of $1,000,000; that, desiring to secure the resignation of the president, Mr. Eldridge, they bought, at his request, $5,000,000 of the bonds of the Boston, Hartford, and Erie Railway (owned by Eldridge’s friends), paying in two instalments $4,000,000, toward the purchase; that they have secreted the $16,000,000 held by them; that they have used this sum to “lock up” money, and thereby create a stringency of the money market; that they have made large purchases of real estate and other property, among the transactions of this nature, specified being the purchase of Pike’s Opera House for the sum of $850,000, property in New Jersey for $300,000, another piece of property in that state also for $1,500,000, nine houses in Twenty-third-street, steam boats on Lake Erie $300,000, real estate in Buffalo $300,000, and other large purchases, taking the titles to the property, or some of it, in the names of Fisk and Gould; that they have made contracts for leases of other railroads, these three directors being interested in purchases, and receiving bonuses in stock and money to the amount of $1,500,000 for their individual use; and finally, that they have altered and falsified the books of the company, in order to cover up their transactions. These allegations are sustained, or supposed to be sustained, by affidavits of Daniel Drew and others. The statement of Mr. Drew is remarkable for its frankness. He admits that while treasurer of the company he used the stock in his hands to increase or depress the price of Erie and otherwise affect the money market; that for permitting two of the directors (Fisk and Gould) to take from the company’s office 50,000 shares, and for agreeing to sell to Fisk, at a figure below the market price, $5,000,000 of the company’s bonds, he received a cheque from Fisk for $375,000. Drew proceeds to give the history of the “Erie war” of last summer. He alleges that Eldridge, former president of the company, received $1,000,000 in cash for resigning. He says that the earnings of the Erie Company are from $14,000,000 to $15,000,000 a year. He confesses that he used the company’s money to “lock up”* the money market, and so produce tightness and panic. Upon hearing the complaint and affidavits, Judge Sutherland, of the Supreme Court, made an order forbidding the directors to issue any more stock, or to remove or conceal any of the books, papers, or funds of the company, and commanding them to pay into some solvent bank the money in their hands, retaining only a sufficient amount to meet the legitimate debts and expenses of the company.

Two sides to every question may be naturally looked for. In the Supreme Courts on Wednesday morning Mr. C. M’Intosh, who says that he owned 200 shares of stock, appeared as plaintiff in a suit in which all the parties to the suit of “Belmont von the Erie Railway Company,” are named as defendants. He asked that investigation be made to show whether or not the issue of Erie common stock is limited by law; further, that all parties be forbidden to commence the prosecution of actions founded on alleged fraudulent issues of stock; and finally, that a receiver be appointed to take, hold, and disburse the earnings of the company. An affidavit of James Fisk accompanies this prayer; it recites confessions by Mr. Drew, who is by this instrument placed in even a more contemptible position than by his admissions. Judge Barnard issued the order of injunction, stopping all suits on either side; the same order appointed Jay Gould, president of the company, receiver.

*“Lock up.” This is a new and remarkably successful invention of the Wall-street swindlers. A few speculators combine and borrow all the paper currency that can be obtained from the banks; depositing gold and stocks as “collateral” security. When merchants, dealers in produce, &c., go into the street to buy currency, they find themselves compelled to pay exorbitant prices (sometimes 2 and 3 per cent. a day); the conspirators, of course, make great profits not only on loans of greenbacks, but by operations in stocks. This is a trick that can be repeated indefinitely, and there seems to be no means to prevent it.|

Inhalt:

  • Termin und Wohnadresse
  • 1868.
  • Chemie.
  • Auszüge aus The Money Market Review, 19. Mai 1866 bis 28. Dezember 1867
  • Standard 4 December 1868
  • Register.