19

Money Market Review. Jahrgang 1868.

January 4, 1868.

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The Money Market Review, 4. Januar, 1868. S. 3/4.
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The Year 1867 in its Commercial and Financial Aspect.

Most prominent amongst the disasters of 1867: the breakdown of the system of direction of joint stock Cos. Most conspicuous this in railways. First London, Chatham and Dover Co; dann London, Brighton, and South Coast Railway; the embarrassments of that Co. increased gloom and depression in railway market during whole of April. Then followed disclosure of similar breakdown, from the like causes, of North Brit. Co; the open calling in question of the soundness of the Caledonian; the urgent needs and equivocal expedients of the Great Western Co . The cumulative effect of these successive exposures has been most disastrous upon railway property. Total Depreciation of 14 Mill. £ on the ordinary stocks of those railways alone. That enormous sum does not represent 1/2 the total amount of loss sustained by the holders of railway stocks and shares. The whole loss mainly due to the unskilful, injudicious and reckless mismanagement of the resp. boards of directors.

Money market: On 1st Jan. 1867 amount of bullion in Bank o. E. £19,274,859, in Bank o. F. £28,580,000; minimum rate of discount in England 31/2, in France 3%. On 7 February B.o.E. rate reduced von 31/2 to 3%, on 30. May to 21/2, on 25. July to 2%, at which it continued for the remainder of the year. On 18 Sept. bullion in B.o.E. £24,493,447, highest point ever reached, reduced to £21,941,047 on 20 December, whilst £40,600,000 on that day treasure of B. o. France, highest amount that Bank ever held.

With such plethora of money, for which no profitable use to be found in commerce, Foreign Gvt Loans, aber nicht so viel zu erwarten  Kommentar von Marx.
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(dieß erst 1868)
; nämlich: January 1867, at 811/2 Chilian Loan of 2 Mill. £ in 6% Stock. (17 mill. £ applications for that loan) February: Queensland loan of £550,000 in 6% Debentures at 81, and the Danubian Loan of £1,264,420 at 71. In March loan of £250,000 sought on Debentures of Ceylon Gvt. at 102, but only £90,000 taken, ab 30 November £100,000 subscribed at £108. 13s. 6d. In May Gvt. of New South Wales loan of £832,000, subscribed at 851/2, has since shown profit of about 13% to the subscribers. June: loan of 2 Mill. £ in 5 P.Ct. guaranteed Bonds of the Russian Orel and Vitebsk Railway, few subscriptions. June, ditto, new Chilian loan, at 7%, taken at 891/4, of £1,120,920. In August Russian 4% Railway loan of £12 Mill., very few subscriptions. In November, Egyptian 9% Loan for 2,009,200 at 90; and a New Zealand 6% loan for £470,000, subscribed at 1041/4. Finally, in December, Nova Scotia 6% Bonds for £225,900 subscribed at par; a South Australian Gvt. 6% loan on Bonds for £140,500, at and above £107; and Portugese 3% Loan of 5,500,000£, at 381/2, of which £3,750,000 offered for subscription.

Trade and Manufacturing Industry in a depressed and comparatively profitless state throughout the year.

Exports for first 11. months: 1865: £150,832,344. 1866: 173,913,222. 1867: 167,931,378. Decr. nearly 6 mill. as compared mit 1866.
Imports for first 10 months: £160,506,818 193,699,380 181,370,314, falling off of about 12 mill. compared mit 1866.

Revenue Returns show decrease of £800,000 for the quarter (last quarter of 1867)

Aus:
The Money Market Review, 4. Januar 1868. S. 4/5.
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Commercial Morality.

Edward Greenland, set at liberty by Hardy, absconded to Genoa, refused to come and give evidence, to further the ends of justice, in regard to transactions of large amount etc.

Wilkinson, of Joint Stock Discount Co, rightly convicted; released upon extraordinary memorial got up and signed by many of the leading bankers and merchants of the City, countenanced by Times, now asking in dolorous accents: „What is to be done to resuscitate, not commercial credit, but commercial morality?“

Aus:
The Money Market Review, 4. Januar 1868. S. 5.
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B. o. England Rate of Discount.

6 months ending June 30. 1867: £3, 0, 3 against 1866: £7. 17. 2
〃             〃     Dec. 31  2. 1. 31/2 5. 16. 5
For the year: 2. 10. 81/2 6. 16. 71/2
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The Money Market Review, 4. Januar 1868. S. 7.
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Stock and Share Market during 1867.

Besonders distinguished durch Panic in railway Stocks und collapse of a false system of accounts wodurch many railway Cos. have long been paying dividends out of capital.|

20
Alterations in the values of the funds during 1867:
Stock. Amount outstanding March 31, 1867. Price 31. Dec. 1866 Price 31. Dec. 1867 Rise. Increase in Value in Amount of Stock.
3% Consols. 397,896,594£. £901/8 921/8 2 £7,957,931
3% Reduced. 106,857,504 891/4 92 23/4 2,938,581
New 3%. 222,104,705 891/4 92 23/4 6,107,879
Total Increase in value. 17,004,391
Alterations in Values of Railway Stocks during 1867. (Ordinary or original Stocks of Leading Cos.)
Railways. Amount of Ordinary Stock. Prices, Dec. 31. 1866. Prices 31 Dec. 1867. Rise in 1867. Fall in 1867. Amount of Depreciation in 1867.
Bristol and Exeter £2,022,000 £88 £84 £4 £80,880
Caledonian 4,734,000 124 713/4 521/4 2,473,500
Glasgow and Southwestern 3,132,000 118 97 21 657,720
Great Eastern 8,336,000 29 311/2 21/2 a)
Great Northern. Ordinary 4,468,000 120 109 11 491,480
Dto. A. 1,159,000 1281/2 1091/2 19 220,210
Dto. B. 1,159,000 129 125 4 46,360
Great Western 8,181,000 543/4 441/4 101/2 859,005
Lancashire and Yorkshire 12,694,000 1291/4 1231/2 53/4 729,905
London, Brighton, and Southcoast 5,373,000 87 481/2 381/2 2,068,605
London, Chatham and Dover 3,000,000 161/2 181/4 13/4 b)
London and North Western 29,830,000 121 1141/2 61/2 1,938,950
London and South Western 7,734,000 84 77 7 541,380
Manchester, Sheffield et Lincoln 4,393,000 53 451/2 71/2 314,475 319,475
Metropolitan 1,800,000 127 1161/2 101/2 189,000
Do. Extention 1,900,000 1071/2 1031/2 4 76,000
Midland 11,356,000 1231/2 104 191/2 2,214,420
North British 2,759,000 38 341/2 31/2 96,565
North Eastern. Berwick 7,973,000 1081/2 99 91/2 757,435
Do. Leeds. 1,394,000 67 61 6 83,640
Do. York 3,220,000 101 93 81/2 273,700
North London 1,525,000 120 115 5 76,250
North Staffordshire 3,230,000 74 61 13 419,900
South Eastern. 7,688,000 671/2 67 1/2 38,190
Total Depreciation. £14,652,570
Less total increase in value of Grt. Eastern

a)

less 208,400

zusammen

less

260,900

Less Total Incr. in Value of Lond. Chath. Dover.

b)

less 52,500
Resultat: £14,391,670

Dieß nur die closing prices of each year, aber die fluctuations during the year show a much wider range. The actual depreciation on the whole of the lines enumerated £14,391,670 = 101/3 P.Ct. on the aggregate Capital stated, the total amount of which is £139,010,000.

Aus:
The Money Market Review, 4. Januar 1868. S. 8.
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Prices of Foreign and Colonial Loans contracted in 1867.

Foreign Loans: Nominal Amount £:26,894,540. Contract Value: £17,406,068. Difference zw. Nomin. Amount und Contract Prices: £9,488,000 = 35% issued below par.
Colonial Loans: £2,267,500 £2,139,880. Difference £127,620 or equal to 5% below par.
Aus:
The Money Market Review, 4. Januar 1868. S. 8.
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Joint Stock Banks and their Reserve Funds.

Z.B. London Joint Stock Banks invest their socalled Reserve Funds in current business. Three of the leading joint stock banks of London have leately lately issued fresh capital, and taken the opportunity of adding to the reserve funds by charging a premium for the new shares. These premiums are to be paid in the course of the next 14 months. The reserve funds will then have attained, irrespective of any additions in the mean time for interest, viz: London und Westminster 1 Mill. £, London und County 1/2 Mill. £, London Joint-Stock £417,839 £417,849. If we add hinzu the „rest“ of the National Bank (£461,593) und of the National Provincial Bank of England (£250,386), die total reserve dieser 5 Banks = £2,629,818.

Aus:
The Money Market Review, 4. Januar 1868. S. 11/12.
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Indian Exchanges. Past and Present.

Nominal Sterling value of the „Company’s Rupee“ in India fixed at 2sh. If below 2s. in exchange for a rupee on India in favour of England, against India; if above 2s. against England, in favour of India. Less than 2s. st. drawn by India on England against India, in favour of England, above 2s. against England, in favour of India.

The fluctuations in Indian Exchanges, and their wide range, in some respects periodical. During prevalence of the southwest monsoon or the rainy season, when little produce exported, and business of all kinds comparatively at a standstill, oft difficult to work a profitable operation in exchange unless durch some indirect or circuitous channel.

All legitimate exchange transactions founded in something to be exchanged, or passing between one place and another, or one country and another. That something must be goods, produce, money, or securities for money invested. Suppose British manufactures wanted in India. Shipper of them may want his money or part of it, without waiting for returns from India. If the goods sent known to be saleable, and have been indented for or ordered by his correspondent on the spot, and the shipper and the party on whom he draws respectable, it is the business of a bank on this side to give money for bills against such goods, duly hypothecated or made over to it, either to a proportionate extent of the market value of such goods, at the place where they are to be sold, or, in the case of parties of undoubted responsibility as drawer and drawee, to the full amount of invoice, provided nothing is charged therein but actual cost, freight, insurance, and other expenses. Such transaction not speculative. It involves merely a change of ownership in the goods, until the bills drawn against them are paid on the other side. But often foreign markets over supplied by consignments for which there is no immediate demand. In a similar way produce shipped from India to England, and drawn against the banks becoming the purchasers of the bills, under hypothecation of the produce, with this difference, however, that the bulk of the produce is more on consignment for sale, |21 on shippers account, than in execution of orders. Außer China, Un. Kingdom Hauptmarket for India. The excess of exports from India to Un. Kingd. over and above imports gives rise to larger dealings in commercial bills of exchange than take place from England to India, which, allowing even for the difference of usance, are, generally speaking, negotiated on less favourable terms to the exporter than bills drawn from this side.

At particular seasons money is in demand for remittance to India, more especially silver, to enable the banks to avail themselves of exchange purchases. (Not for last 12 months to any extent.) Large exports of silver to India, partly weil its currency almost exclusively silver rupees ⦗a gold currency now recommended by the Indian Currency Commission⦘, partly weil balance of trade, commercially speaking, largely in favour of India. The price per ounce, English standard, at which bar silver is purchased in London, varies according to demand and the supplies received from the West Indies and South America, or that may be obtainable on the Continent. That price seldom falls below 5s. 03/8d. per ounce, or exceeds 5s. 11/2d. Under exceptional circumstances it may reach 5s. 2d. or 5s. 21/2d. per oz., but only under the powerful action of a short supply and great demand, the prevalence of an exchange in India greatly against England, and a scarcity of money in India.

Dieser par 2s. = 1 Rupee selbst illusorisch, aber convenient central or fixed point round which rates of exchange may fluctuate. Two shillings = 1/10£. By cutting off the right hand figure of a sum in rupees, if a cipher, a sum in pounds st. remains. By adding a figure to a sum in pounds st. if a cipher, a sum in rupees is obtained.

The Scotch banks, some few years ago, were in the practice of considering the par of exchange on London 21 days’ date. Their drawing rate is now 10 days’ date.

If in exchange dealings with India exorbitant profits are sometimes obtained, the reaction will assuredly be the greater in a contrary direction, and either the producer, merchant, or consumer will be the sufferer. The banks (though there are few left now) have of course a great deal in their power in rendering exchange transactions favourable or unfavourable for themselves. …  In proof of the uncertainty attending applications for India Council Bills, at the last bidding on the 4. inst. no allotment was made, the Gvt. having unexpectedly decided upon minimum rate of 2% on Calcutta, and 3% on Bombay, in advance of former rates.

Aus:
The Money Market Review, 4. Januar 1868. S. 20.
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Dates. of 1867.

Jan. 7. Resuscitation of Agra Bank. March 25 Strike of Engine drivers on Brighton Railway; terminated on the following day. June 19 Broadhead disclosures. October 2: Panic on Paris Bourse from apprehension of war, Garibaldian movement at Rome, forced liquidation of Credit Mobilier etc. 25 October: News of stoppage of the Commercial Bank of Canada. 21 October Stoppage of Royal Bank of Liverpool mit liabilities for £1,650,000. 8 November: Colliery explosion at Rhondda valley, near Cardiff, 178 lives lost.



January 11, 1868.

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The Money Market Review, 11. Januar 1868. S. 31
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Railways und State Control.

Economist  The Money Market Review: at length
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at last
reluctantly admits: „sole remedy for the present discredit in the railway market is an independent audit of the accounts of railway Cos by official auditors appointed by the State.“ „The Govt is the only uniform authenticator possible.“  Zusatz von Marx.
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Review bemerkt:
the audit ought not to be optional  Zusatz von Marx.
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(wie Economist will)
but compulsory upon every Railway Co.

Aus:
The Money Market Review, 11. Januar 1868. S. 32–34.
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Caledonian Railway.  Zusatz von Marx.
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(Report of Committ. of Investigation)

Ihre accounts enthalten all frauds possible. Directors gentlemen without business experience. Rely only upon their officials, 17 of whom were paid salaries in proportion to the dividend declared. The dividend declared July 1867 was nearly 6% p.a. Then erschien challenging statement, daß sie nur etwas über 4%. Committee now states it (noch zu hoch) etwas unter 3%. In den 2 last financial years expenditure of capital £1,982,765, dividends for same period in ordinary stock £556,726, little more than 1/4 of the sum borrowed.

Aus:
The Money Market Review, 11. Januar 1868. S. 34/35
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Contract Corporation (Lim.)  Zusatz von Marx.
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(Chancery in(?))

Shares 100£. Haben nun ganz to be paid. Shareholders ruined. Mit alle dem erhalten Creditors nur 2s. 6d. in the pound.

Aus:
The Money Market Review, 11. Januar 1868. S. 36/37
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Insurance Cos. Their Getting up and Winding up  Zusatz von Marx.
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(Workingmen beschissen)
.

Failure of Insurance Cos. very calamitous for those immediately interested in them. Strangely got up and launched. Illustration: One concern (Insurance Co) started about 2 years ago, with a capital of £500,000; but only £150,000, or less than 1/3 of this capital, was subscribed for. for £10,000, payable under the articles of association for promotion money, was, in fact, payable to the manager, he having assumed another name for the occasion. This, we suppose, was money advanced to purchase the directors, for, by means of this same purchase money the interest of nearly every director in the Co. was made to appear as fully paid up. In 18 months, which was the utmost extent of its career, the Co. did much mischief. First, it became the focus of 5 several amalgamations mit other Cos; and thus acquired nearly 400 shareholders, now liable as contributories, but prepared to contest it. None of the directors in any of these amalgamating concerns took any share or interest in the Co. to which they thus handed over their own shareholders. And these projects, we may presume, had been got up upon the same liberal and philanthropical principles, and pure und disinterested motives, as the Co. in question. In one instance there were special provisions for annuities in favour of such of the directors as were not to receive any of the emoluments to be distributed amongst the members of the new board, and of their widows after them! They were evidently prudent, farseeing man, these directors of the amalgamating Cos Zusatz von Marx.
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!
Zweitens, the directors of the Co in question had granted insurances to some 150,000 insurers, most of whom were making weekly or monthly payments, in accordance mit den terms of their policies, also workingmen in victims. Drittens: They had appointed, before the scheme collapsed, about 700 agents in the U. Kingd., from whom balances appear to be due upwards of £25,000; but all or almost all of these agents repudiate their liability. Court has, therefore, resorted to the extraordinary expedient of appointing a special commission to take evidence in relation to them in London, in Manchester, and 3 other principal towns. Trotzdem, not more than 1% has still been recovered. Sobald dieß Co. nicht länger could go on, shareholders’ meeting held mit view to wind it up voluntarily. Resolution to this effect carried und liquidator appointed – Niemand anders als Mr. Manager who had got up the Co Zusatz von Marx.
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!
The object of such winding up and such Liquidator, of course, to avoid the disclosures of an official liquidator Zusatz von Marx.
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!
Aber mißlang. Da voluntary liquidator superseded durch official one who makes these preliminary revelations. Up to the time at which he wrote, the official liquidator had received upwards of 1000 claims upon the Co. Amongst these claims one for £1,600 on the part of the manager and previous liquidator, und, of this claim, £600 made upon an unpaid cheque on account of salary. Drawn when there were cheques already issued to £1,300 more than the balance at the Co’s bankers. The remainder was for an alleged deposit by the manager, who, through his assignee, claimed £2,600 for unpaid salary. This gent, not content with the £10,000 he obtained for getting up the Co., wants £2,600 for bringing it to ruin in the Winding-up Court. The Co which this manager mismanaged never issued but one balance-sheet, and that was entirely false and fraudulent. Two balance sheets were prepared, „both of the same date, but materially differing in nearly every line; one corresponding with the books, the other corresponding with them in scarcely |22 very single item“; the one was suppressed, the false one issued. During the 18 months’ existence of the Co. this manager managed to bring into use some 850 books, exclusive of those at the 700 agencies, and exclusive of those handed over by the amalgamated Cos, making probably more than 2000 books; and, although some 30 clerks were employed by the Co., their salaries were all in arrear, and there was a gap in the account books for 4 months out of the 18, which can only be filled up from a heap of loose and disorderly papers.

Aus:
The Money Market Review, 11. Januar 1868. S. 37.
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Silk in 1867. (Annual Circular of Durant et Co.[)]

Total importation scarcely 10% in excess of 1866, deliveries almost identical. Prices for all, but the best classes (always small proportion of the whole) so to 20 to 25 P.Ct. below those of the commencement of the year. Manufacturers have kept their stocks at the lowest possible point, thus escaping serious mischief.

Aus:
The Money Market Review, 11. Januar 1868. S. 37.
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Agricultural Implements. 1867. (Annual Circular of Burgess and Key.)

Great increase in the demand for agricultural implements, besonders for reaping and mowing machines. Mainly from the necessity for machinery which the increasing deficiency of agricultural labourers creates, besonders in all that relates to the securing of crops.



January 18, ’68.

Aus:
The Money Market Review, 18. Januar 1868. S. 59/60
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Causes of Present Commercial Depression.

Depression in industry, falling off in Exports and Imports and in the Revenue, enormous accumulation of unused gold in B.o.E., large proportion of people only partially employed, or unable to earn an income adequate to meet their expenditure. … Distrust of Joint Stock Cos. und want of confidence in Railway Directors one of the reasons. Aber Hauptsache: Falsch that the losses sustained by certain members of the community have been the gains of other members, and, that, therefore, the public in its totality has sustained no loss. But the difference between the gains of one class and the losses of the other has been enormous.

Those losses have been the natural result of excesses which prevailed during the 2 or 3 years of enterprise and speculation which immediately preceded the panic of 1866. During that period an immense amount of property so called – i.e. property which was nominally and apparently real, but in fact fictitious – was created, and bought and sold according to its nominal value. A joint-stock Co. put forth its prospectus, proposing to raise a nominal capital of 1 Mill. St., on which one 10th, or £100,000 was to be paid. The one million being subscribed, and the £100,000 paid, the shares rose to a premium, and the value of the £100,000 became £500,000, and at that value £500,000 of hard cash, let us say, was invested in them. The purchasers or owners believed that they were in actual possession of bona fide property to that amount, and, on the faith of that assurance, they bought and sold other property, and entered into other contracts and engagements, and launched out, and lived, and consumed, and expended accordingly. But when the panic came the £400,000 which had been created in the shape of premium gradually melted away. As the depression resulting from the panic continued, the £100,000, the amount originally paid also disappeared. The whole became worth nothing at all. After a time this not the whole loss. The Co. being in the winding up court, there were numerous debts to be paid, and the calls of the liquidators to meet. These are eating into and consuming whatever property the hapless holders of the shares had reserved to themselves. They have been compelled to abandon or withdraw from the contracts they had entered into on the faith of this property, so called, and to curtail their expenditure, and to lessen their business transactions, if not utterly to abandon them, in order that they may have the means to meet the calls. This occurred not in one but in 100 Cos. The number of traders, investors, and other individuals thus involved and impoverished many thousands. The number of those who have become indirectly compromised in their failure must be greater still. The share property of those persons entirely vanished. Nun kam hinzu 10% discount enforced during 3 months after the Panic. Impossible to estimate the loss this inflicted. Hence the general distrust. No manufacturer or merchant or trader can be certain that a man with whom he deals has not been seriously „hit“ in some Co., or may not be seriously compromised by his transactions with somebody who has been so „hit“; and every one is therefore suspicious and distrustful of those with whom he may come into commercial contact.

The melancholy exposures of the mismanagement of railway boards have of course enormously added to the evil, though they had perhaps not much to do with it originally. Losses der holders of ordinary stock in 1867 zwischen 15 und 17 Mill. St., and the losses upon the whole of the railway stock would probably be at least double that amount. All these things act or react with more or less severity upon ever widening circles. The halfyearly dividends, upon due receipt of which numbers of families were mainly, or, perhaps, wholly dependent for subsistence, most materially reduced or vanished altogether. In all such cases the friends of such families must have become sufferers with them. Shares, bonds, and other securities have been unsaleable, or saleable only at a fearful sacrifice; and, in most cases where that sacrifice, from urgent necessity, has been submitted to, the produce of the sales by the necessity which compelled the sale. The money in those cases has not come upon the market for re-investment, for, if not so absorbed and consumed, it would rather seek safety and comparative unproductiveness in the banks. Hence one source of the enormous accumulations of money in the hands of bankers. Distrust, want of confidence, sends it there and keeps it there. All classes made directly or indirectly partakers in these losses. Everybody has been „pulling up“, reducing his establishment, or economising his expenditure, from want or prudence. Equivocal state of politics in Europe, and consequently unsettled state of commerce all over the Continent, as well as the not satisfactory aspect of things in America, has something to do with the prolongation of this condition of trade, but not much, in comparison with the principal causes. We have enormous accumulations of money in banks, because merchants and traders have no adequate amount of legitimate trade in which to employ it. Commerce contracted in its operations, trade dull, demand slack, credit at a low ebb, confidence checked, because such large numbers of our population reduced and impoverished by enormous losses, which, affecting in the first instance only particular classes, have now in natural course of things, extended to and involved the whole community.

Railway Profits. Delusive Government figures.  Zusatz von Marx.
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(Competition of Railways)

Aus:
The Money Market Review, 18. Januar 1868. S. 61.
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Nach supplementary statement about railways recently published by Board of Trade, „ordinary capital“ paid up at end of 1865 in England und Wales, in round numbers, 187 Mill., in Scotland over 8 Mill., in Ireland 14 Mill. Total of ordinary capital, possessing no priority, thus 2191/2 Mill. Nach diesem Parliamentary Return the average rates of dividend upon this unguaranteed capital were, in 1865, in England und Wales over 51/4%, in Scotland 43/4, in Ireland 31/2%, thus making average nearly 51/4%. Now this quite delusive. In 1865, when these figures were rendered to the Board of Trade, the whole thing was a fiction from beginning to end.

Aus:
The Money Market Review, 18. Januar 1868. S. 61/62.
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The competition encouraged by Parliament has had this effect that it has brought many of our railways to the merge verge of bankruptcy, and now the only method to maintain the public service, is to cast aside the theory, or ruin the railways.|

23

Aus:
The Money Market Review, 18. Januar 1868. S. 61.
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Joint Stock Banks Profits. Banking Profits und Rate of Discount.

Reports issued during present week. Except London und Westminster Bank, considerable falling off in amount of profits for past 6 months, as compared with the 6 months ending June last.

Auch profits of Lond. und Westm. vermindert, vgl. mit 1866. In 1866 its net profits £463,685, in 1867 £293,712, the decline £169,973. Für die 3 Banks (London und Westminster, London Joint Stock Bank und Union Bank net profits in 1866: £983,046, in 1867: £669,629; difference = £313,417, equal to nearly 1/3. Jedoch die average B.o.E. rate of discount in 1866: £6. 16s. 71/2d. und in 1867: £2. 10s. 81/2d. Thus banking profits, although much affected, do not diminish in an equal proportion to the fall in the value of money.

Aus:
The Money Market Review, 18. Januar 1868. S. 64.
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U. States Currency.

Washington Jan. 16. Senate passed the Bill repealing Mr. MacCulloch’s authority to contract the currency.



25. January 1868.

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The Money Market Review, 25. Januar 1868. S. 94.
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The Stock and Share Markets during 1867.

Alterations in values of shares of Joint Stock Banks of London in 1867.
Amount paid. Prices Dec. 31. 1866 Prices Dec. 31. 1867 Rise in ’67 Fall in ’67 Amount of increased Value. Amount of Depreciation
Alliance (lim.) £25 £19 14 5 £200,000
B. o. England. Stock 249 239 10 1,445,300
City. 10 15 12 3 150,000
Consolidated (Lim.) 4 43/4 41/4 1/2 75,000
Do. (New) 2 3/4 dsct 1/4 pm. 1/2 25,000
East London. (lim.) 5 3 3
Imperial (lim.[)] 20 26 18 8 160,000
London and County. 20 64 59 5 187,500
London Joint Stock. 15 44 36 8 576,000
London and Westminster 20 97 97
National Provincial 42 137 135 2 20,000
Do. (2nd et 3d issues) 12 39 381/2 1/2 27,500
National 30 68 62 6 240,000
Union of London 15 45 361/2 81/2 680,000
Totals £25,000 £3,771,300

The reductions for the year, calculated on the prices of Dec. 31, 1866, are as follows: Imperial Bank 303/4 P.Ct., Alliance 26 P.Ct., City 20 P.C. Union, 19 p.ct., London Joint Stock, 18 P.Ct. National 83/4 PCt. London and County 73/4%.

Alterations in values of Miscellaneous Shares (most important) during 1867.
Amount paid. Prices 31. Dec. 1866 Prices 31. Dec. 1867 Rise during 1866 1867 Fall during 1867 Amount of increased value Amount of Depreciation
Anglo-American (Lim.) £10 £153/4 £191/2 £33/4 £225,000 £ ―
Atlantic Telegraph Stock 341/2 521/2 18 108,000
- - 8 P.C. Stock 721/2 941/2 22 132,000
Credit Foncier of Engl. (Lim.) 10 5 31/4 13/4 350,000
General Credit et Discount (Lim.) 71/2 5 51/8 1/8 25,000
Hudson’s Bay. 20 163/8 143/4 15/8 162,500
Internat. Financ. Soc. (lim.) 5 3 23/4 1/4 37,500
London Financ. Assurance (lim.) 30 141/2 71/2 7 280,000
London and Provincial Marine (lim.) 2 2 11/2 1/2 32,250
National Discount CO. (Lim.) 5 143/4 11 33/4 600,000
Ocean Marine Insurance Co. 5 201/2 201/2
Peninsular and Oriental Steam 50 63 55 8 320,000
Thames and Mersey Marine (lim.) 2 53/4 43/4 1 100,000
Universal Marine 5 2 41/2 21/2 125,000
Royal Mail Steam 60 961/2 62 341/2 517,500
Totals £615,000 £2,399,750
Aggregate Results of movement of principal stocks in 1867.
Home Funds improved in the year £17,004,391
Indian Gvt Securities dtto 2,490,008
Colonial Bonds etc dtto 2,887,659
Foreign and Colonial Banks dtto 202,148
Total improvement £22,584,206
Less depreciation in Engl. Railw. (Ordinary Stock.) £14,391,670
London banks 3,746,300
Miscellan. Cos. 1,784,750
Total Depreciation £19,922,720
Net Improvement £2,661,468. £2,661,486.

(Rechnet man Depreciation auf Railways 30 Mill. (andre als ordinary stock included), so bleibt grosse Depreciation, selbst von all other not enumerated concerns abgesehn.)

Aus:
The Money Market Review, 25. Januar 1868. S. 92.
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Italian Deficits.

Deficit in 1864 £12,640,000
in 1865 (Estimate) 8,280,000
in 1866 (Estimate) 4,000,000
At the beginning of 1867 total debt about (estimate) 240,000,000
Add deficit of 1866–67 (ascertained) 32,800,000
Add deficit of 1867–68 (not ascertained) 52,200,000 25,200,000
Summa £298,000,000 or about 300 Mill. £. St. at close of 1867.

Hereupon Victor Emmanuel lays violent hands upon the property of the Church, and decrees that the priest shall pay for the soldier.|

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The Money Market Review, 25. Januar 1868. S. 88.
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Midland Railway.  Zusatz von Marx.
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(Börsenmogelei und Directors.)

Special meeting last week. Nämlich in December (’67) hatten die directors circular erlassen, worin proposed to raise 5 Mill. St. for completing works etc[.] Darauf fiel value of stock sehre. But, apart from this, there were circumstances connected with the issue of the circular convening the meeting of last week which aroused grave suspicions of unfairness. The circular was dated 14. December, and did not reach its destination until 3 days after, during which interval heavy sales of stock were made, and the decline in market price was singularly rapid. Hence reasonably inferred that these sales, pressed at that particular moment, indicated that priority of information used by some persons behind the scenes.

Aus:
The Money Market Review, 25. Januar 1868. S. 89/90.
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Caledonian Railway.  Zusatz von Marx.
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(Ersatz des Verschleisses.)

 Von Marx übernommen und mit eigenen Angaben ergänzt in Manuskript II zum zweiten Buch des „Kapital“ (MEGA² II/11. S. 107.21–28 und S. 121. 39–122.2).
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Committee of Investigation … Captain Fitzmaurice, auditor of the Grt. Northern and Brighton says: „Revenue should be charged for maintenance of way at the rate of £300 for quadruple, £200 for double, and £150 for single line half yearly. A fixed charge of not less than 121/2 P.Ct. on locomotive engines and tenders, and 9 P.Ct. on carriages and waggons, calculated on their original cost as they stand in the Co’s books, should be made annually for depreciation, renewals, and repairs.“
Dagegen Caledonian Account keeping: In the last 3 half-years not one penny has been charged to revenue for replacement of 524 engines belonging to the Co. In the last 2 half-years nothing has been charged to revenue for replacement of carriages; but, on the contrary, all that had been so charged to revenue for 4 half-years previously, about £8,000, was written back to the credit of revenue and charged to capital, so that for 6 half-years nothing whatever is charged to revenue for replacement of carriages. For the last 2 half-years nothing whatever is charged to revenue for renewal of waggons. Meantime, for the 2 years under review, £450,000 is charged to capital for new rolling stock, although the traffic of the line now considerably lower than 2 years ago. The engineer employed to inspect the rolling stock shows that a large number of the engines are nearly done, and that no less than 100 must be replaced out of revenue in the next 5 years. … Besides neglecting replacement, the Caledonian kept down even the repairs by employing a large proportion of new stock, and throwing the old on easy work …  Von Marx mit Auslassungen übernommen in Manuskript II zum zweiten Buch des „Kapital“ (MEGA2 II/11. S. 107.28–108.4 und 122.2–13).
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From the experience of the Caledonian and Scottish North-Eastern it is clear that none of its stock lasts even 20 years. Mr. Clark thinks that with very good upholding and an excellence and suitability in the stock of engines which those of the Caledonian do not possess, a maximum of 25 years may be reached. Full allowance, average of 221/2 years. Estimate the old materials at 1/5 of the new cost. The total cost of the Caledonian rolling stock stands in its books at 2,600,000£, of which about £1,400,000 value of 524 engines, and £1,200,000 as cost of carriages and waggons. Taking, then, 1/5 from £2,600,000, we have £2,080,000 divided by 221/2 as the annual charge for replacements alone, so as to uphold the stock fairly. This gives 92,500£ as annual charge for the renewal, or £185,000 for the 2 years instead of the £7,000 charged by the Caledonian
, complacently assumed as correct by the auditors … Graham, the Co’s Engineer, stated that „his instructions were to charge to capital every expenditure in the nature of additions to previously existing works, such as additional siding accommodation, lengthening of station platforms, enlargement of stations, sheds, and workshops, and additional buildings of every description, and that, in charging to capital the cost of such additional works, no deduction was to be made of any previously existing works of which they might be in substitution.“

  Von Marx übernommen in Manuskript II zum zweiten Buch des „Kapital“ (MEGA² II/11. S. 108.5–7 und 124.18–21).
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The only sound way is to charge each year’s revenue with the depreciation necessarily suffered to earn the revenue, whether the amount is actually spent or not.
As long as shareholders are „drugged with dividends“ they will sanction everything directors put before them.

Aus:
The Money Market Review, 25. Januar 1868. S. 90.
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Banks and Railway Cos.

Exposures in railway affairs have shown that many of the leading banks have been ministering to the profligacy of railway directors. Lent money to railway Cos. which have no parliamentary power to borrow. Every such loan illegal. The Union Bank lent the Brighton Railway Co. thus £500,000. Laing forced the Bank, because its been illegal, into taking preference stocks that rank below all pre-existing preference issues. A Scotch Bank figures amongst the creditors of the Brighton Railway Co. Scotch Bank have encouraged Scotch railways in their course of illegality. They lent the Caledonian £500,000 on floating loans.

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The Money Market Review, 25. Januar 1868. S. 90/91.
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Overend, Gurney et Co. (lim.) Report of the Liquidators.

Report of Liquidators, showing result of liabilities (outstanding) and assets on 31. Dec. ’67.

Contributories (omitting the members of the late firm, who held 8,323 shares) about 2,219, holding in the aggregate 91,667 shares. Two calls of £10 each made and the total amount paid by the shareholders so auf 11/2 mill. £ St., davon upwards of 1 mill. paid during the past year.

Liabilities at date of suspension on 10. May, 1866 = £18,727,915. On 25. Febr. 1867 reduced by £3,640,655 15,087,259, leaving at that date £3,640,655. The indebtedness, during 1867, further reduced by the realisation of securities etc and dividends paid, by £2,449,800, leaving £1,190,855 only. The calls already made have impoverished and beggared many shareholders and family. First call of £10 p. share paid in full by 1,864 persons, holding 77,658 shares, and is in course of payment by 43 others, holding 3,658 shares. There are 238 other persons, holding 7,752 shares, who cannot pay that call in full, and 116 others, holding 4,174 shares, who will not be able to pay any portion of it. With any additional call, an additional number of the contributories will be pressed out of the paying rank and must fall into the category of the utterly insolvent and ruined. The shareholders already lost all their capital = 11/2 mill. £, and contributed besides über 11/2 mill. £ as contributories.

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The Money Market Review, 25. Januar 1868. S. 104.
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Capital of Railways in U. Kingd. Board of Trade Return. (für 1866)

Capital authorised to be raised to end of 1866 on railways in U.K. = £466,151,633 on shares, und £154,412,773 by loans. Total = £620,564,406 showing, as compared mit 1865, increase of capital authorised in Session of 1866, of £44,272,743. Total amount paid up on ordinary shares was £228,245,629, being increase of £8,647,433 in 1866. The amount paidup on preferential shares and stock £134,455,098, increase of £10,191,623. Amount raised on debenture stock £14,105,594, increase of £310,219, and on debentures £105,065,863, increase of £7,244,766, making the total amount of capital paid up to 31 Dec., 1866, £481,872,184, increase of £26,394,041, as compared with amount paid on Dec. 31, 1865.

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The Money Market Review, 25. Januar 1868. S. 106.
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Lawyers and railways

In the 6 years 1861–66 the railway Cos of the U.K. paid £1,378,167 for legal and Parliamentary expenses. It exceeds £19,000 a month.|

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The Money Market Review, 25. Januar 1868. S. 111.
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Railway Trains (1866)

In 1866 in England and Wales railway trains run distance of 117,313,154 miles, or 22 Mill. miles more than distance of earth from sun. In 1866 the Scotch railway trains run 17,680,579 miles, und the Irish 7,814,120 miles. Zusammen U.K.: 142,807,853 miles, as compared with 139,527,127 miles in 1866. Increase in 1866 of 3,280,726 miles. Of the 142,807,853 miles in 1866, passenger trains contributed 73,383,356 miles und goods trains 69,424,497 miles, showing an increase in 1866, gegen 1865, of 2,176,538 miles in the distance run by passenger trains, and 1,104,188 miles by goods trains.

Aus:
The Money Market Review, 25. Januar 1868. S. 105
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Causes of Commercial Depression. (Eingesandt von G. Townend. Mincing Lane.[)]

One of the reasons excessive competition amongst Joint Stock Banks. It is part of the business system of these banks in the East and elsewhere to advance to shippers on the security of goods shipped. It was formerly their custom to advance only to the extent of 2/3 of the value, but of late years, and till very recently, so great has been the competition and so eager the anxiety to do business, that advances have been made to the full cost value of the goods. Men of small means, aware that they are trading with the capital of a bank, have thus been induced to make speculative shipments. The demand thus occasioned for the productions of the countries where the banks may be located, has been immense; prices have risen enormously, and production been stimulated accordingly. Wealthy firms have first looked on in astonishment, but gradually become the most eager shippers, the most tenacious holders and ultimately the heaviest sufferers. Consumers on this side, alarmed at the largeness of supplies, purchase only for immediate wants; prices fall considerably; the goods continuously arrive, are sold at a great loss, and after a time – crisis.

The fraudulent system for railway construction. A contractor tenders for the construction of a line, for which he is to be paid in the stock of the Co; the tender being based upon the price at which the stock is disposable. In other words, if the contractor finds he can only realise the stock at 70 or 50 P.Ct. discount, he will only do £30 or £50 of work for every £100 stock he receives. Therefore it is evident that stock so issued ceases to be stock except in name; it is in reality a £30 or £50 share; and the public who are deluded into purchasing under the impression that they are buying £100 fully paid up are deceived and ensnared. And this acts as a tax upon the people, as a dividend is expected to be earned upon the apparent stock, and fares are charged accordingly. Besides, the mischievous impression gets abroads abroad that the construction of railways is not remunerative.

Recent disclosures have endlich shown that some Cos. are founded only for the benefit of promoters; and others with entirely fraudulent intentions.



1 February, 1868.

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The Money Market Review, 1. Februar 1868. S. 121/122
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Brighton Railway und Manchester, Sheffield, and Lincolnshire Railway Co.  Zusatz von Marx.
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(Verschleiß of steamers)

Nach den last reports die new directors der Brighton R. stated in plain terms that all till now told about the finance of the Brighton Co. is simply false. Dividends at the rate of 6% p.a. were regularly paid, and we are now told that there never was any dividend at all earned on the ordinary stock. The capital, in the course of a few years has been doubled without any corresponding addition to the net profit.

Was die Manchester, Sheffield etc angeht No depreciation fund has been made for the steamers, which stand in the books at £161,000. Mr. Watkin treats this jauntily as a small matter. Aber: die  Von Marx übernommen in Manuskript II zum zweiten Buch des „Kapital“ (MEGA² II/11. S. 107.15–19).
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lowest practical estimate of the cost of maintaining and replacing steamboat property is 15% p.a. The rate allowed by the Gvt to the Peninsular and Oriental Co. is 16%.

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The Money Market Review, 1. Februar 1868. S. 123/124.
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A Joint Stock Discount Syndicate and its Doings.

Dieß history findet sich in report of some proceedings in the Rolls Court on 25 Jan. ’68. In November, 1865, when shares of Joint Stock Disc. Co. fallen to a considerable discount, Wilkinson, the managing director, together with another director and 2 shareholders, Fox and Stafford, and some other parties, formed themselves into a „syndicate“ or club, for the purpose of forcing up the market price of the shares. Plan of the syndicate to „earwig“ some of the largest shareholders in the concern, and induce them to enter into written agreements not to sell any shares without the permission of the syndicate, whilst the syndicate themselves were to purchase 5,000 shares, to be apportioned amongst them. Carrying out of this scheme entrusted to Stafford who was to receive £1000 when he should have got the price up to £1 discount, and another £1000 when it should reach £1 premium, and a final sum of £2000 when it should have risen to £2 premium. The syndicate held regular meetings, and kept a minute book of their proceedings. But where was the money to come from to pay the £5000?

It was arranged that the money for the purchases should be provided out of the funds of the Co. The persons concerned in the purchases accepted bills for the amount, and those bills being discounted by Wilkinson, on behalf of the Co., the proceeds were paid away for the shares. In carrying out the scheme it was necessary, to disguise the transaction, that some of the shares should be bought in the names of other persons than those of members of the syndicate. Dazu Fox introduced his friend Gledstanes, to Mr. Stafford, as a person to whom 500 of the shares to be purchased might be transferred. Mr Fox, to satisfy the scruples of Gledstanes, undertook that the shares should not remain in his name, but be at once transferred to a nominee of the Co., and that Gledstanes should not be called upon to pay anything or incur any liability in respect of them. Relying upon this undertaking, Gled. accepted and executed transfers to him from several persons to the number of 500 shares, and at the same time executed transfers of these same shares in blank, leaving Stafford to fill in the name of the Co’s nominees. Gled. for some time heard no more of the matter; but, in mean time, shares fell, despite the purchases of the syndicate. This, it is said in the published report, was „in consequence of sales to the amount of 2000 shares by the chairman of the Co.“ The shares continuing to fall, the syndicate, on the 27. Jan. 1866, caused the transfers to Gled. to be registered, but did not fill up and register the transfers he had executed in blank, as they had agreed to do; and, consequently, when the Co. failed shortly afterwards, Gled. found upon register and put upon list of contributories. Gled. contended that his name ought to be taken off that list; that the whole scheme was known to and approved by the directors (was den Chairman nicht verhinderte to sell on his account 2000 shares); that the transfers he had executed to some nominee of the Co. ought to have been registered also. This well between Gled. and his friends of the syndicate; but as between him and the creditors of the Co., the Master of the Rolls „could not see it“. The syndicate purchased some 5000 shares and „let in“ all the friends in whose names they caused them to be registered.|

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The Money Market Review, 1. Februar 1868. S. 126.
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Steel and Iron Rails (from Circular of W. Bird et Co.)

The scientific demonstration of the worthlessness of iron rails as compared mit steel does not practically affect trade. The former are still ordered largely, even for countries where steel rails could be delivered at little additional cost. Small proportion, do., of Bessemer steel rails purchased by home lines. The high price of steel rails enhances greatly the difficulty in extending their use and introduction, and as now iron rails can be had at £2 to £2. 10s. per ton in exchange for old rails (weight for weight), iron seems likely to maintain its footing for some time. Wrought iron rails are still in existence which have lasted 20 years and upwards, even on main lines, and it is therefore not impossible to make them of good quality. Deteriorations introduced partly due to the wretched quality of the mode of payment proffered in exchange. However bad the iron rails, yet exceeded in many instances where they are now complained of by the paper money which paid for them. The steel trade in its infancy, and some of the new methods of producing first class cheap steel will become more formidable competitors in the rail trade of this country then hitherto the Bessemer.

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The Money Market Review, 1. Februar 1868. S. 141.
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U. States Finances on 1st. January 1868 (Monthly Statement of  Zusatz von Marx.
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M.Culloch
, Secretary of Treasury)

On 1st Jan. 1868: Debt bearing interest in coin. Dollars 1,890,102,091: 80 Cents. Debt bearing interest in paper: $328,491,230. Debt on which interest has ceased $15,871,640. cts 83. Debt without interest $407,851,290. ct.85. Total Debt Jan. 1: $2,642,316,253. ct. 48. During the month of December the debt was increased $2,943,680. 80c., but total debt for Jan. 1, 1867 was $2,675,062,505 c.43, showing reduction, during the past year, of $32,736,251. c.95. McCulloch continues his policy of funding the various obligations of the Gvt. into 5-20’s, and in this way, during december, increased the coin interest debt nearly 50 mill. The total issue of 5-20’s now $1,373,804,750. There was no contraction of currency during December.

8 February 1868.

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The Money Market Review, 8. Februar 1868. S. 148/149
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Aus  Titel von Marx notiert in „Heft 3. 1868“ der „Hefte zur Agrikultur“ (MEGA² IV/18. S. 729.12) und in Exzerptheften 1877 (IISG, Marx-Engels-Nachlass, Sign. B 139) und 1878 (IISG, Marx-Engels-Nachlass, Sign. B 148) sowie im Notizbuch 1878/1879 (IISG, Marx-Engels-Nachlass, Sign. B 152)
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R. Dudley Baxter: „National Income of the U. Kingd. 1868.“ (Macmillan et Co)

Nach Baxter folgende dimension of Population:

Persons
A) Upper and middle class 1) With independent incomes. 2,759,000
2) Those dependent. 3,859,000
Total 6,618,000
B) Manual labor classes 1) With independent incomes 10,961,000
2) Those dependent 12,130,000
Total 23,091,000
Total Estimated Population: 29,709,000

Nach demselben Baxter folgende Vertheilung amongst the various classes of the population:

Class A. Incomes (Annual) Persons Amount. £. St.
1) Great fortunes £5000 to £50,000 and upwards 8,048 £127,692,860
2) Moderate fortunes £1000 to £5000 47,228 84,284,210
3) Middle incomes £300 800 to £1000 173,036 88,730,580
4) Small Incomes a) £100 to £300 800 995,688 112,246,350
b) under £100 (below income Tax) 1,535,000 83,780,000
Totals: 2,759,000 2,799,000 £496,734,000
(Manual Labor) Class B. Incomes. (Annual) Persons. Amount. £. St.
5) Higher skilled labour and manufactures 1,345,044 £66,352,814
6) Lower skilled labour and manufactures 5,087,921 160,652,345
7) Agriculture and unskilled labour 4,528,720 97,639,481
Totals 10,961,685 £324,644,640
Grand Totals 13,720,685 £821,378,640
Average Income for each Person of independent means: Ireland Scotland England
£31 £53 68
For each person of the whole estimated population 14 231/2 32

Ireland, remarks der  Zusatz von Marx.
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Baxter, „presents the singular phenomenon of a decreasing population and an increasing income“. Its population diminished von 8 mill. in 1841 to 61/2 Mill. in 1851 (nearly 20%), and again in 1861 to 53/4 mill. (nearly 12%). Estimated that it has further declined in 1867 by 4%; yet the property charged to income tax has risen from 21 mill. in 1855 to 241/2 mill. in 1865, being increase of 16%.

Enormous disproportion of unskilled to skilled labor; 10 millions of Persons against 1,345,044. Ireland für sich genommen ist natürlich disproportion still greater.

In the East of London, sagt Baxter: „the dock labourers earn, in full work 15s. a week, but so great is the competition that even in ordinary years they are employed but little more than half their time. During the past year (1867) 5s. a week has been considered tolerably fortunate.“ The Silk weavers have been for years in a chronic state of distress. The men’s nominal wages are 12s. but their real earnings do not average more than 6s. a week. The cabinet makers of the Kingdom are set down as earning 30s. a week, but those at the East End of London, a very numerous body, are in the „slop trade“, and are ground down by the Jew dealers, who own what are called the „slaughter-houses“, in which advantage is taken of the necessities of the small „garret masters“, many of whom are not earning more than 7s. 6d. per week. „None but those who have examined the facts“, sagt Baxter, „can have any idea of the precariousness of employment in our large cities, and of the large proportion of their time in which they are out of work, or of the loss of time in many well paid trades from drinking habits.“ Those drinking habits are a fearful evil, … but, sagt die Money Market Revue, we have a strong impression that much of this evil arises |27 partly from overwork and underfeeding, and partly from the bad ventilation and bad drainage of the localities in which they are compelled to reside.

Do all these figures and details, sagt Money Market Review, furnish us with what they profess to give – namely an account of our national income as a nation? We are bound to say that they do not. „We are“, says Times, „all living upon one another, and each income is spent in making up a number of other incomes, and every shilling of each passes through 50 other incomes and contributes to swell them in the course of 1 year.“ To add up all these several incomes into a grand total, and call it the total or gross income of the nation, is merely to foster a delusion. A landowner with £5,000 a year might just as well add up the wages of his steward and household, the rents of his tenantry, and the profits of his tradespeople to make up an income of £20,000 a year. The net actual income of an individual shown by the total amount of his receipts after deducting all the necessary outgoings for keeping up the estate or source of his income. And the net annual income or wealth of a nation shown by the net amount in hand after deducting all the necessary outgoings for the maintenance of its State and the sustenance of its people. Dazu other facts to be considered, returns of exports und imports, amount invested of our surplus income in foreign loans and securities etc.

Aus:
The Money Market Review, 8. Februar 1868. S. 149.
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 Den Titel dieser Schrift notierte Marx in „Bibliographische Notizen zur englischen politischen Ökonomie 1864–1868 u.a.“ in „Heft 3. 1868“ der „Hefte zur Agrikultur“ (MEGA² IV/18. S. 728.23). Pattersons „The Science of Finance“ (Edinburgh, London 1868) exzerpierte er im April/Mai 1868 in „Heft zum fixen Kapital und Kredit 1868“ (MEGA² IV/18. S. 749–751, 755, 762–765, 793–802 u. 807/808).
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R. H. Patterson. „Railway Finance.“ (1868)

In past years the question was raised as to whether the State ought not to buy up the railways as a means of increasing its revenue. Now the question has changed its complexion, and the interference of the State is demanded chiefly in the interest of the railway Cos themselves, as a method of relief from pressing embarrassments.

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The Money Market Review, 8. Februar 1868. S. 171.
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U. States Currency.

Washington. Feb. 4. The Anti-Contraction Bill, suspending M’Culloch’s authority to contract the currency, finally agreed by both Houses of Congress, and is now law.

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The Money Market Review, 15. Februar 1868. S. 185.
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Manchester Trade. (Circular of B. Barbour and Brother.)

Month opened with better feeling, continued with few intermissions to its close. Aggregate business very large, not only clearing out stocks, but placing producers, particularly of the better qualities, under contract for the next 2 months. Operations mainly in the good adapted for India and China. Shipments thither continue in excess of 1866. These operations entered into, not so much for immediate as in anticipation of future demand for these quarters. Largely of a speculative character, through which prices unduly forced up, affording the speculator a later prospect of resale at a profit. Effect of such transactions to distract our market and to disarrange all ordinary calculations; they force spinners into the Liverpool cotton market to cover their contracts, stimulating an unhealthy action on prices there, at a time when the most reliable accounts from America promise an abundant supply.



15 February, 1868.

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The Money Market Review, 15. Februar 1868. S. 184/185.
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Saturday Review. Defender of fictitious Accounts and Railway Management.

„The conduct of the directors“, says Saturday Revue, „in paying interest on their extension stock out of capital, although it appears to have been illegal, was a prudent and reasonable act.“ Vice Chancellor Wood said that „the permanent holders of the stock and shares of the Co. would (his decision against the Metropolitan Co.) derive benefit and advantage from the refusal of the Court to permit the declaration of a doubtful dividend.“ But, says S. R., „it had not proved beneficial to speculative holders merely holding on until doubtful dividends should enable them to sell at speculative prices.“ S. R. wants an „elastic discretion“ der managers, meaning a dishonest discretion. „Justice is blind“, says S. R., „and sometimes she is proud of her blindness; and it is unfortunate for all when matters which require the exercise of this elastic discretion are brought under her stern cognizance.“ Was ever anything more rankly immoral thus openly and unblushingly propounded in the pages of a public journal?

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The Money Market Review, 15. Februar 1868. S. 185/186.
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Railway Accounts. By H. E. Bird. Accountant. London (Effingham Wilson 1868).

389 Cos., of which Board of Trade treats, had raised 489. Mill. Capital at 30. June 1867. „Lloyds’ Bonds“ not included; 260 Mill. in some form of priority (davon wieder 1271/2 mill. in form of debentures, loans and debenture stock, the whole of which is terminable or to be liquidated in full at fixed dates, except the debenture stock, amounting to about 141/2 millions, which is permanent or fixed debt.) Remaining 229 Mill. are ordinary stock.

Capital raised by 389 Railway Cos. in Grt. Brit. and Ireland. 30 June ’67.
1) Debenture Loans £.110,558,698 (Davon £76,591,473 p.a. interest £4. 8s. 91/2d.)
2) Debenture Stock. 14,620,656 Davon: £11,026,565 bore interest 4% or under, £3,594,091 of 5%.
3) Temporary Loans. 2,480,766 interest not given.
4) Preference Capital 132,202,712 Davon 231/2 Mill. at 4%, 303/4 at 41/2, 53 at 5, nearly 2 at 51/2, rather more than 17 at 6%, nearly 6 mill. at 61/2 p.a.
5) Ordinary Capital 229,197,867 Average dividend not given.
6) Total £489,060,699
Contrast of „priority“ and ordinary capitals as it stood at 30 June 1867. of 24 of the 389 Rail. Cos. referred to.
Priority Capital: £270,585,760. Ordinary Capital: 164,250,146. Total: £431,835,906 £434,835,906.

While there was paid in dividends on the „ordinary“ stocks of 16 leading railway Cos. in the 3 half years from 31. Dec. 1865, to 30. June 1867, a sum of £9,431,024, the amount charged to capital during the same 18 months on the lines „in operation“, and exclusive of the new lines and branches, was no less than £10,511,220.|

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The Money Market Review, 15. Februar 1868. S. 186.
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Caledonian Railway Meeting (at Glasgow 13 Feb. ’68)

Break up of the directorate and falling foul of each other. No dividends upon the ordinary stock (wie dito bei Brighton Railway ) for some time to come. Yet its price stands at 78 – some 5% higher than South Eastern with bona fide dividend of 4%. The price artificial one. No secret that the market has been „rigged“. It was the last card of Colonel Salkeld (the chairman) to keep up the price. A new direction must cancel all fictitious purchases; and the sooner this selling, the better. Price, Holyland, and Waterhouse, official accountants, say that „if all proper charges to revenue had been made, not only no surplus available for dividends upon the ordinary stock of the Co., but balance on debit side.“

Aus:
The Money Market Review, 15. Februar 1868. S. 189.
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The Cotton Trade. Prices.

Price of Cotton End of 1866 End of 1867
Middling Orleans 153/8d. 73/8d.
Pernambuco 153/4 73/8d.
Singapore 12d. 91/8d.
Fair Dhollera 12d. 87/8d.
Bengal 87/8d. 67/8d.
Ejyptian 20l. d. 133/8d.
Comparative Import of Raw Cotton into Europe. (Ellison and Haywood.)
1866 1867 1868
Actual Bales Actual Bales Estimate Bales
America 1,163,000 1,226,000 1,400,000
Brazil 407,000 437,000 540,000
Egypt and Turkey 200,000 198,000 220,000
Westindies etc 112,000 129,000 130,000
East Indies etc 1,867,000 1,511,000 1,300,000
Total. 3,749,000 3,501,000 3,590,000

Price of middling Orleans at beginning January (68ʼ) 71/4d per lb, end of January 81/8d. Demand for the moment very large. In the first 4 weeks of this year „taken by trade“ 313,200 bales of cotton against 136,080 in corresponding 4 weeks of 1867; „taken for export“ in first 4 weeks of ’68 bales 74,210 against 37,480 in 1867; „taken for speculation“ 38,050 in ’68 gegen 19,880 in 1867; while the imports of first 4 weeks of ’68 bales 298,565 against 190,676 in 1867. The demand has thus exceeded the supply.

22 February 1868.

Aus:
The Money Market Review, 22. Februar 1868. S. 218/219.
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Railways. Paying Weight and Dead Weight.  Zusatz von Marx.
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(Wear and Tear.) (Permanent Way.)

On the Metropolitan engines and carriages now in use heavier and more expensive than on any line in U. Kingd. except the North London Railway. Consequent upon this, the permanent way is more expensive in first cost, and it suffers more from wear and tear. The Metropolitan engines weigh 42 tons: of this weight 32 tons are placed on 4 wheels, being at rate of 16 tons per pair of wheels. On the London and North Western line the most powerful engines weigh considerably under 30 tons, which are distributed over 6 wheels, being less than 10 tons per pair of wheels. Again, the Metropolitan passenger carriages weigh 16 tons empty, and they carry 48 first class and 70 second and third class passengers. Taking 2 of the second and third class carriages to 1 of the former, average about 63 passengers to each carriage weighing 16 tons. On the North Western, the Brighton, and some other lines, the passenger carriages weigh about 6 tons and carry 24 first class, 40 second class, and 50 third class passengers. This gives average of 38 passengers to 6 tons of weight, or 6.33 passengers per ton, as compared with 63 passengers to 16 tons, or less than 4 passengers per ton in the carriages of the Metropolitan. Taking the number of passengers actually carried on the Metropolitan, rate of dead weight hauled as against paying load is as 8 to 1 or 871/2 p.c. In other words, 8 tons of dead non-paying load is carried to 1 ton of passenger paying load. If the weight of the engine were included in the calculations, dead-weight equal to 12 tons for every single ton of passengers. A London omnibus, which has to travel over all kinds of roads, bad and good, carries 2 tons of passengers and 1 ton of dead weight. No mechanical reason why, allowing extra weight for increased speed, the proportion of paying to dead weight should not be vastly increased.

Twenty years ago Mr. Samuel, the then engineer of the Eastern Counties Railway, called the attention of the directors to importance of the question involved between dead and paying weight. He demonstrated by actual experiments, carried on for 18 months, that the problem could be solved of assimilating the proportions of dead and paying weights at speeds varying from 30 to 50 miles per hour. He did this by his celebrated light engine, „the Enfield“. Was disregarded by the Board. Mechanical invention has gone no further in that direction.

That the dead weight carried by the Metropolitan is destructive to the permanent way is obvious from the facts. The way first laid with iron rails case-hardened. Before long they were so worn that deemed expedient to alter the quality, and steel railways for renewals were obtained from John Brown et Co, Sheffield. These also gave way; other rails for renewals obtained from Ch. Cammell et Co, Sheffield. All this in 5 years, 3 renewals in 5 years over the heaviest portions.

Aus:
The Money Market Review, 22. Februar 1868. S. 220.
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Net Profits and Dividends of London Joint Stock Bks., last half year (’67)

London and Westminster: dividend 32. Lond. and County 18. London Joint Stock 121/2. Union 15; City, 7. Alliance 0. Lond. et South Western 5, Consolidated, 5, East London, 5. Metropolitan 5%.

Aus:
The Money Market Review, 22. Februar 1868. S. 236
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Decline in Trade with Un. States.

Nach commercial advices from New York the imports of dry goods (comprising all manufactures of wool, cotton, silk, flax) during January ’68 only £1,020,000 less than 1/2 amount in corresponding month of 1867, und about £700,000 less than average importation of same month during last 19 years.


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29. February 1868.

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The Money Market Review, 29. Februar 1868. S. 243/244.
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The Caledonian Railway.  Zusatz von Marx.
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(Old Hudsons’s Maxim)

Latest Phase: Shareholders so infatuated or demoralised as to entrust to the chairman and old board such a mass of proxies as has overridden the decision of the general meeting, and practically re-delegated the reins of power to them. After this, who can believe for one moment in the genuineness of a Caledonian railway dividend? The accountants (to Committee of Inquiry) set forth dividend as very small; majority of shareholders would like to make them and the market value very high. (per xxx or xxxxx).

Up to this moment there has ruled that famous principle in railway accounting enunciated by old Hudson, when chairman of the Eastern Counties Railway, that „expenses should be made to square with the dividend, and not the dividend with the expenses.“

Aus:
The Money Market Review, 29. Februar 1868. S. 247.
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Board of Trade Returns.

A) Imports. Computed Value of Principal Articles.
Month ended Nov. 30.
1865 1866 1867
Totals enumerated: £19,910,403 £17,841,738 £15,514,473
11 months ended November 30.
Totals enumerated £180,417,221 £211,541,118 £196,884,787
Deduct. Wheat 8,573,672 11,214,682 22,102,884
£171,843,549 £200,326,436 £174,781,903
Deduct raw cotton 49,294,092 70,665,438 48,338,241
£122,549,457 £129,660,998 £126,443,662
B) Exports Declared Value of All Articles of British and Irish Produce.
Month ended December 31
1865 1866 1867
All articles £15,030,088 £14,914,563 £13,252,593
12 months ended December 31
£165,835,725 £188,917,536 £181,183,971.

7. March. 1868.

Aus:
The Money Market Review, 7. März 1868. S. 276
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Profits of the Bank of England.

Rate of dividend for the half year.
Half year ending Sept. 5 1866 61/2
March 6 1867 51/2
Sept. 4 1867 41/2
March 5 1868 4
Aus:
The Money Market Review, 7. März 1868. S. 280.
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Board of Trade Returns.

1865 1866 1867
Imports year ended 31. Dec. Computed Value of Articles enumerated: £219,393,987 238,773,192 220,862,585
Exports ditto. Declared Value. British und Irish Produce und Manufacture 165,835,725 188,917,536 181,183,971
Import Trade
Month ended December 31
1865 1866 1867
Totals enumerated £38,930,967 27,174,309 23,977,798
Year ended December 31.
Totals enumerated £219,393,987 238,773,192 220,862,585
Deduct wheat £9,775,616 12,983,090 24,985,096
£209,618,371 225,790,102 195,877,489
Deduct raw cotton 66,032,193 77,521,406 51,997,766
£143,586,178 148,268,696 143,879,723
Raw Cotton Imported
Quantities cwts: 1865: 8,731,949 1866: cwts 12,295,803 1867: cwts: 11,272,651
Computed value: £66,032,193 £77,521,406 £:51,997,766
A) Exports January B) Imports. B) Imports December
January 1866 £14,354,748 December 1865 £38,930,067
1867 12,768,842 1866 27,174,309
1868 12,252,688 1867 23,977,798.
Aus:
The Money Market Review, 7. März 1868. S. 282.
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Railway Finance (Inserted)

If placed to capital  The Money Market Review: reckless expenditure
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(irrationelle Ausgaben)
, there will be a perpetual reduction of future dividends of shareholders (common stock); if charged to revenue, that course would be ruinous to his present income.  Kommentar von Marx.
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(Aber die Gegenwart ihm die Hauptsache)
|

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Aus:
The Money Market Review, 7. März 1868. S. 293.
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Import of Cotton in 1867.

U. States: cwt 4,715,733 First year since 1861 in which cotton Import from U. St. > import from British India.
British India: 4,449,259
Ejypt 1,127,541
Brazil 628,761
Turkey 57,024
Bahamas und Bermuda 10,623
China 4,707
Mexico 22 cwts
Other Countries 278,981
Total cwt 11,272,651.

Quantity Exported from U. Kingd. in 1867 cwts 3,130,593, leaving 8,142,058 cwt, excess of imports over exports, quantity 4 times exceeded, in 1859, 1860, 1861 und 1866.

March 14, 1868.

Aus:
The Money Market Review, 14. März 1868. S. 302
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Board of Trade. Railway Returns up to end of 1866.

A) Capital authorised by Parliament up to close of 1865
Shares Loans Total
England and Wales £357,496,302 £119,714,054 £477,210,356
Scotland 48,742,293 16,303,523 65,045,816
Ireland 26,650,650 7,384,841 34,035,491
Total £432,889,245 £143,402,418 £576,291,663
B) Capital authorised at the end of 1866
England und Wales £388,605,689 £129,762,809 £518,368,498
Scotland 50,104,794 17,024,623 67,129,417
Ireland 27,441,150 7,625,341 35,066,491
Total £466,151,633 £154,412,773 620,564,406
Increase in 1866: £33,262,388 11,010,355 £44,272,743
C) Capital paid up at 31 Dec. 1865
England and Wales. Scotland. Ireland. Total.
Ordinary Cap. ohne priority £186,939,352 £18,307,847 £14,350,997 £219,598,196
Debentures (terminable loans) 80,420,076 11,636,265 5,764,756 97,821,097
Preference Capital 99,930,392 19,055,152 5,277,931 124,263,475
Debenture stock or funded debt 12,315,007 1,206,768 273,600 13,795,375
Total 379,604,827 50,206,032 25,667,284 455,478,143
D) Capital paid up at 31 Dec. 1866.
England and Wales Scotland Ireland Total.
Ordin. Cap. ohne priority 193,674,973 19,797,076 14,773,580 228,245,629
Debentures (terminable loans) 86,659,720 12,566,082 5,840,061 105,063,863
Preference capital 109,322,884 19,460,908 5,671,306 134,455,098
Debenture stock or funded debt 12,566,697 1,254,732 284,165 14,105,594
Total £402,224,274 53,078,798 £26,569,112 481,872,184

Authorised Railway Capital end 1866: 6201/2 mill. (round numbers), wovon nearly 482 mill. actually raised. This is irrespective of money raised on simple contract, such as balances due to bankers, accounts unpaid to lawyers, contractors, and others who supplied money, labour, or materials for the purposes of the various Cos. The 482 mill. do not include money raised upon „Lloyds’ Bonds“, these being securities not directly authorised by Parliament. Vgl. 1866 mit 1865 raised 261/2 mill. und as indicative of the growth of distrust, nur 83/4 mill. in ordinary stock, 173/4 mill. in the forms of priority stock. 1866 was with railways a year of pawning and borrowing, and creating securities mit rights in priority of the ordinary stockholder.

Aus:
The Money Market Review, 14. März 1868. S. 303/304.
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Overend et Gurney, Co. Meeting of Shareholders 13 March.  Zusatz von Marx.
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(Für Proceedings against Directors.)

Mr. Linklater, the solicitor said, had now come out that at the time of the transfer to the Lim. Co. of the business there were 3 deeds prepared and executed between the partners of the old firm and the directors of the new Co. Only one of them, the deed of transfer, accessible to intended shareholders; the deed of arrangement, which would have inclosed disclosed the absolute insolvency of the old firm, being held back as a private or secret deed. In the 1st deed the partners of the old firm guaranteed that the assets should realise 20s. in the £ upon the debts and liabilities transferred. By the 2nd deed it was made apparent [that the assets] were not likely to realise anything of the kind, and that they might fall short to the extent of 2 or 3 mill., and the partners therefore covenanted with the Co. to make good the too probable deficiency out of their private estates. But this deed stipulated that whatever might be the exigencies of the Co., they should not be entitled to call upon the partners to make good the deficiency before the end of 1868. To that provision, Henry Ford Barclay, before he consented to join the lim. co., took exception; and to meet these objections, another deed was prepared at the last moment, providing that in certain events the stipulations of that deed in reference to those deficiencies should be in some way modified and relaxed. All this, as Linklater said, showed that the parties were aware at the time of the issue of the prospectus that the statements it contained, and the prospects it held out, were false and delusive and therefore fraudulent.|

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March 21, 1868.

Aus:
The Money Market Review, 21. März 1868. S. 327.
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Railways. Their Construction and Management. Paper read by R. F. Fairlie, Society of Arts, 18 March ’68.  Zusatz von Marx.
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(Wear and Tear)

Paying portion of the load does not exceed 5% of the whole weight of the train … As to engines, costs to be reduced: first, by abolishing the tenders, and next, by amending the construction of the locomotives themselves, so that their weight may not only be lessened, but better distributed. A better distribution of the weights of the boiler over a larger number of wheels, with adjustments to meet and neutralise inequalities in curves and gradients, would prevent injurious impact upon the rails, and so save wear and tear to rails, wheels, and boiler. Every traveller experiences sudden or continuous shocks from the impossibility of engines of ordinary description adapting themselves to surface inequalities. These shocks inflict damage on the rails and to the rolling stock; this is the main cause of the constant necessity for expensive renewals. Mr. Fairlie has produced engines now in operation on the Neath and Brecon Railway, which work without the possibility of such oscillations.

March 28, 1868.

Aus:
The Money Market Review, 28. März 1868. S. 362.
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The Indian Trade. English Exports to India during last 15 years.

Exports
1853: £7,324,147.
1854 £9,127,556.
1855: £9,949,154.
1856: £10,546,190.
1857: £11,666,714.
1858: £16,782,386.
1859 £19,844,920.
1860 £16,965,292.
1861: £16,411,756 
1862: £14,617,673 
1863: £20,002,241.
1864 £19,951,637.
1865 £18,260,413.
1866 £19,957,342.
1867 £21,844,619.

Die Ausfuhr von 1867 die größte on record. Exports to Bombay and Scinde presented a slight declension 1867, to Madras a small advance, to Bengal and Pegu considerable increase. The construction of railways in British India involved supply of large quantities of plant, engines etc.

April 4. 1868.

Aus:
The Money Market Review, 4. April 1868. S. 387/388.
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Crisis of 1866 und Nachwehn.

Never a period of dull suffering and depression so long and continuously felt. … Two main elements of distraction and depression of late: Windings up and railway insolvency. Enormous calls under windings up. Others sufferers by stoppage of their dividends. Dann uncertainty der victims as to their ultimate liabilities, preventing them from dealing with their remaining means. Crippling of resources and paralysis of action. Andrerseits now beginning to tell the payment of creditors of Cos. in liquidation, and the settlements with debenture holders in Railway Cos. These transfers of capital are coming largely in relief, and every day they will become more operative, as seen by course of Overend etc, Imperial Mercantile Credit etc. These transfers not absolute equivalents, but come greatly in mitigation. The fearful expenses in winding up, going in diminution of the property of creditors and debtors, constitute a transfer to attorneys, accountants etc to their profit.

Aus:
The Money Market Review, 4. April 1868. S. 391.
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Board of Trade Returns.

A.) Imports. „Computed Real Value.“
January
1866 1867 1868
Enumerated Articles £10,394,443 £10,063,066 £9,477,083
Deduct Raw Cotton 3,341,901 1,076,616 688,424
£7,052,542 £8,986,450 £8,788,659
Deduct Wheat 984,355 1,551,919 2,091,896
£6,068,187 £7,434,531 £6,696,763.
B) Exports of British and Irish Produce und Mnfct. Declared Value
January and February
All articles £29,470,811 £27,232,914 £26,593,667

Also Import und Export Abnahme in Trade.

Aus:
The Money Market Review, 4. April 1868. S. 391/392.
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Railway Wear and Tear. Cost of Production.

An enormous amount of useless and unprofitable force is expended upon every train on every railway, and this useless expenditure of force aggravates the loss to proprietors, by so wearing the rails as to make them require frequent renewals at very great expense. Take the case of the Metropolitan Railway . Mr. Fairly proved (sieh oben, March 26 21. ’68) that 30 tons of dead weight are carried carried on that line in proportion to 1 ton of paying weight. What business can be well carried on at a working expenditure  Zusatz von Marx.
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(Kostpreis)
of 30% in proportion to a paying expenditure of 1%? Opposition against improvement in this respect on part of engineers not belonging to the newest school in practical engineering.



April 11. 1868.

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The Money Market Review, 11. April 1868. S. 419/420.
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Commercial Credit and Morality.

Liverpool Chamber of Commerce 1867 appointed a subcommittee to consider Sir John Rolt’s (late Attorney General) Bill on Bankruptcy law, and „other laws bearing upon commercial morality“. On 6. April ’68 the Chamber met to discuss the report of the latter Committee.

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The Money Market Review, 11. April 1868. S. 431.
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Worn Coin.

£15,000 will again be proposed this session to cover the deficiency in the wear of silver coin withdrawn from circulation in the course of the year, the coin being received at the Mint at its nominal value. There will also vote of £500 to pay premium at 2% on old copper coin sent into the Mint, and the carriage of bronze money remitted in exchange.|

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Aus:
The Money Market Review, 11. April 1868. S. 423/424.
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Cotton.

Lately „spurt“ in the cotton market. „Middling Uplands“ worth at the end of February 91/8d. per lb, and at the end of March 115/8d. „Fair Pernambuco“ rose from 10d. to 114/8d., Fair Ejyptian from 81/8d. to 101/8d. Fair Dhollera von 81/8d. to 101/8d., Fair Madras von 73/4 to 93/4d. und Fair Bengal from 71/8d. to 83/4d. The causes of this advance in market attributed to reduced cotton receipts at shipping ports of U. St. und increased demand at Manchester for manufacture. Nach dem circular von Ellison und Haywood the broad facts stand thus:

Home Consumption in Bales.
1868 1867.
In 121/2 weeks – total 765,280 468,820
In 121/2 weeks – average p. week 61,222 36,063

The inference evidently, that a consumption of 61,000 bls every week cannot continue.

Computed Stocks in Bales. End of March
1868 1867
In Liverpool and London 461,341 689,608
370,723 523,926
832,064 1,213,534

Should rate of consumption continue at £61,000 61,000 bales a week, in hand a stock which would supply the demand for 14 weeks. If the consumption should relapse, sufficient stock for proportionately longer period.

Exports of Goods and Yarns. Two Months
1868 1867 1866
Piece Goods. Yards 483,219 411,880 373,004
Piece Goods. Value £7,754,000 £8,504,000 £9,273,000
Yarn. Pounds. 33,983,000 20,937,000 20,923,000
Yarn. Value £2,737,700 £1,904,000 £2,258,000

These figures show present quantity of manufactured cotton at maximum, while the value obtained from the foreigner for the largely increased product is much smaller than it was 2 years ago … The rapid decline in prices here, consequent upon an excessive supply, has produced diminution of arrivals. Manchester is buying more than she can sell at a fair profit, and Liverpool is cutting its own throat by raising the price against Manchester by rampant speculation.

Aus:
The Money Market Review, 11. April 1868. S. 432.
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The London Flour Co. (lim).

Resolution passed in October 1867, to wind up the Co. voluntarily, but certain shareholders, suspecting that the accounts had been tampered with, discovering that the above resolution was informal and invalid, filed petition to have the Co. wound up by the Court. Alleged that Directors had systematically paid dividends out of capital, recklessly carried on the business etc[.] Admitted by directors that they had put directors’ fees and managers’ salary to capital account and not to revenue, and also that the liquidators, professedly appointed under the resolution of October ’67, one of whom was the chairman of the board of directors and brother in law of the managing director, were proceeding to sell the property without reserve. Petition filed early in December 1867; pressure of business on the Court caused delay. Adroitly seizing this interval of grace, directors, before Court opens again after Christmas, issue a notice, this time proper, convene meeting on 8 Jan. ’68, in order to pass a resolution to wind up the Co. voluntarily; and their notice is accompanied by stamped proxy papers directed to the directors and with postage stamps duly annexed for their return. At this meeting directors obtain bare majority of 3/4; but the petitioners stated on the hearing that proxies were improperly used on behalf of the directors, and thus the resolution was passed. By the time the petition came on for hearing, 15 Feb. ’68, the shareholders, having become alive to their interests, reverse their last decision of 8. Jan., and support the petition in such numbers that the directors then have but slight majority on their side. Vice Chancellor Stuart expressed himself strongly against directors, made order for winding up the Co. by the Court. Directors appeal. Independent shareholders show majority to oppose appeal. Lord Justices declare shareholders bound by the resolution passed at a meeting held after the petition had been presented, and which, from taking place almost in holiday time, was in the nature of a surprise upon the shareholders, who in fact alleged that several of them accidentally prevented from opposing the directors’ plan.

The more culpable directors, the greater the difficulty under which shareholders labour at meetings under directors’ influence. Generally imposible impossible to obtain justice, attempt is a farce except in case of some colossal undertaking whose magnitude has invested it with such publicity that the shareholders can have matters somewhat their own way by the publicity of the proceedings. In the general run of Cos., shareholders who complain are cried down, improperly called to order, their resolutions put to the meeting in such way that the shareholders do not understand question before them, majority is often unfairly arrived at, and proxies rejected on most flimsy pretexts. After the decision of the Lord Justice in this case, it is open to the directors of the most mismanaged Co, when they find their game is up, to call a meeting. meeting, shuffle through resolutions to wind-up voluntarily, and appoint their own nominees as liquidators.

Aus:
The Money Market Review, 11. April 1868. S. 432/433.
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The City Offices Co. (limited)

Last half yearly meeting very badly reported. For the last 5 years 1/2 Mill. £. St. invested in property yielding no return and which, at present price of shares, stands at something like £100,000 only. Shares mit £25 paid. Directors, mit hohen Gehaltern Gehältern who, after 5 years’ trial, have entailed nothing but loss and disappointment on their shareholders, managed both to carry their report and get a vote of unabated confidence.|

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18 April 1868.

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The Money Market Review, 18. April 1868. S. 443/444.
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International Contract Co. (lim.) und Accidental Marine et Insurance Corporation. (lim.)

2 circulars recently issued by the Liquidators of these 2 bankrupt Cos.

The Internat. Contract Co. started mit nominal capital of 4 Mill. £. St., in 80,000 shares, small proportion paid up auf die 50£ share, so leaving enormous contingent liability. This practically unlimited liability of the shareholders seemed to afford ample security to credulous creditors; and, if all the shares had been applied for and allotted to bona fide shareholders, it might have been so. We see now the true value of this enormous nominal Capital and unlimited liability. Co. was only a few months in operation before it collapsed, and claims already sent it in to the official liquidator nearly 2 Mill. £. St. Of these claims only a portion as yet adjudicated upon, result that upwards of £165,000 will rank as proofs, leaving a sum of upwards of £1,761,000 still to be litigated and proved. Director claims to a large amount by the Peruvian Railways Co., now in liquidation; the London Wharves and Wharehouse Co., now also in liquidation; und claim of more than 1/2 Mill. £ St. by Edward Pickering (who, it seems, likes to pick), the managing director of the Co! These latter claims, the liquidators state, arise upon „certain fictitious operations“ in connection with the Peruvian Railway Co. and others. Besides these claims the Co. Defendants in 5 Chancery suits, instituted by the Peruvian Railway Co. and others, under which there are certain alleged liabilities for indemnity and otherwise. The whole sum at present collected under the winding up accounts no more than £10,000. The list of contributories has been settled, and 229 persons, holding 38,663 shares, representing £1,540,000 capital, have been fixed as liable. But the liquidators say that, „having regard to the number of contributories who are but the nominees of certain of the directors or promoters of the Co., and to the fact that many of the remaining contributories are not in a position to meet their liabilities, they cannot hope that more than £70,000 or £80,000 will be raised by calling up the whole of the remaining capital.“ A list of persons liable as past members about to be filed, aber bevor dieß settled, liquidators consider it impossible to form any estimate of the amount realisable from calls upon this class of contributories.

In the case of the „Accidental Marine and Insurance Corporation“, the liability of past members the question embarrassing both liquidators and creditors. Creditors can only expect very moderate dividend, in addition to that already declared. Amount of unpaid capital upon the shares transferred during the 12 months prior to the commencement of the winding up is £80,250. Of this £16,340 is considered good, £24,090 doubtful, und £39,620 wholly bad. Liquidators therefore estimate value of the list of past members von £15 to 25,000£, whilst the claims actually admitted £197,077, and those still pending will amount to £50,000 more. Schwierigkeiten mit past members. Ihre liability confined (von jedem derselben) to the debts which had actually accrued at the time they ceased to be members. Ferner: At whose expense these proceedings necessary to establish the liability of past members to be conducted. Many of the creditors (deren Forderung von später datirt) no interest in enforcing the liability of past members. Endlich past members only liable to contribute to the extent of the amount remaining unpaid upon the shares they had held after proof that the present holders und any intermediate holders have been exhausted, and are absolutely unable to pay more. Daher cost of litigation würde alles auffressen. Die Liquidators bemerken: „There has not hitherto been a single instance of this past liability having been actually enforced, in the winding up of a Co. under the Act of 1862, and in most, if not in all the cases where an attempt to do so is now being made, there exists considerable difficulty in assessing and enforcing such liability, whilst it is certain that in this as in every other case the attempt to enforce it will involve the liquidation in very considerable expense and litigation.“

Aus:
The Money Market Review, 18. April 1868. S. 447/448.
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The Market Value of Finance Co. Shares.

Market Prices
March 1866 March 1868
Credit Foncier of England 2 prem. 7 disc.
Discount Corporation 11 disc. 21/4 disc.
General Credit 1/4 prem. 21/2 disc.
International Financial 1/2 disc. 13/4 disc.
London Financial 51/2 disc. 25 disct.

Credit Foncier of England, hieß 2 years ago the Credit Foncier and Mobilier of England, paid at the outset fabulous dividends. Adverse Rumours then, shares fell continuously. In July, 1866, 20£ share reduced to £10, with £9 paid up instead of £5, £2 p. share being taken from the reserve fund, and £1 being paid up in cash. Subsequently £1 paid. Thus no further liability. The necessity of the last call explained at meeting of 25 Feb. 68 when shown that capital of Co. locked up in undermentioned investment:

In Millwall Docks about £150,000
Irrigation Co. of France 320,000
Imper. Land Co of Marseilles 270,000
London, Chatham and Dover Railw. 302,000
Varna and Rustchuck Railw. 196,500
Paris Streets Impt. Co 300,000
City of Milan Improvements Co 244,000
Belgian Public Works Co 107,000
Total £1,889,000

Shareholders have paid £8 p. share on 200,000 shares, zusammen £1,600,000, against invested in legitimate Joint Stock undertakings £1,889,000, aber diese investments not realisable at anything approaching the original cost, owing to the glut of shares and universal distrust in market. The 10£ share now fallen to 3£.|

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General Credit Co. advanced £160,000 to Lond. Chath. and Dover und diese sagen, sie sollen das Geld bei Peto suchen. Loan on Portuguese railway securities of £151,000 scheint fairly settled. Kapital der Co. £2,000,000, in 200,000 shares of £10 each, wovon £7. 10s. paid up. Market price only £5. The discount of £2. 10s. on 200,000 shares total depreciation of 1/2 Mill. £. St.

Aus:
The Money Market Review, 18. April 1868. S. 451.
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Australian Trade

Value of British Exports January 1868 £736,950 gegen £557,062 in Jan. 1867 und £918,673 in 1866. Each of the 3 chief Australian colonies – South Australia, Victoria und New South Wales – has done with us more business of late. Exports to South Australia in Jan. ’68 £140,714 gegen £52,995 in Jan. 1867; those of to Victoria £316,846 gegen £260,347 in 1867; und von to Neu South Wales £176,427 gegen £67,847 in Jan. ’67. Dagegen we sent in Jan. 1868 less goods and produce to Western Australia, Queensland, Tasmania und New Zealand.

April 25, 1868.

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The Money Market Review, 25. April 1868. S. 469/470.
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Falsification of Railway Accounts. Working Expenses.

There falsification under 2 heads, as estimates of future liabilities und statements of actual results. First evil meist in form of underrepresenting future capital outlay, z.B. Estimated cost of Midland approaches to London £2,216,000; kosten bereits £3,450,000 und werden noch viel mehr kosten.

Falsification of actual Results: selten by fictitiously augmenting revenue receipts, meist durch suppression of working charges. Z.B. sagt das Brighton Railway Investigation Committee of 1867, daß zu Revenue ought to have been charged:

Maintenance of way, works, stations £27,918
Locomotive Power 10,258
Carriage and Waggon Department 28,462
Law and Parl. Charges 44,682
Printing, new shares etc 5,250
Commission allowed on issue of stock to contractors 2,145
Interest upon expenditure for works in progress in 1866 175,178
Additional loss on Channel Island traffick 1,665
Total £295,558

By these means the directors were enabled to pay in ordinary dividends £215,718. Daher non payment of a dividend 1867.

Locomotive Power: Includes all cost of fuel, wages of drivers, cleaners and others (sometimes repairs of engines und tenders, gehört eher zu maintenance of rolling stock) Convenient and vicious deductions may here be made for the conveyance of materials used in construction of new works, such being charged to capital at arbitrary rates.

Maintenance of Way: Hier gross systematic falsifications. To show fictitious profits, the permanent way allowed to lie for years almost uncared for. Endlich all or part of the sum required charged to capital. Or this expenditure may be charged as „additional works“. If a viaduct falls in, the cost of rebuilding may be charged to capital. Improved rails or sleepers, or repairing and enlarging stations, all such items open to colouring which policy may dictate. When works destroyed or removed to make room for others, original cost of the old works, or of their removal, should be sustained by revenue. Schwer zu bestimmen cost of maintenance of way per mile, as it depends entirely on soil, traffic, and nature of the works. Laing, 1849, estimated such repairs and renewals on Brighton line at £265 p. mile p. annum; experience has shown this to be minimum charge.

Maintenance of Rolling Stock: Often charged to capital in small or large proportions; while disabled vehicles stand in the Co’s yards, and only really exist in reports furnished to the shareholders. Thus, on North British last half year deficiency of 2,319 vehicles now written off the stock. Charge for these renewals and repairs should in most cases equal, if not exceed, 9% p.a. on first cost. Nach paper read by Fletcher at Institution of Civil Engineers, annual charge on North Eastern should be 121/2% on cost of locomotives, 12% on cost of carriages, 61/2% on cost of waggons. No certain rule for the mileage, however; speed and burdens carried must influence the result.

„Salaries, office expenses, and directors fees“: generally include not wages to engine drivers and others, falling under head of locomotive power etc Any proportion that is thought fit, transferred to an open capital account as expenses on works in progress; thus the Metropolitan directors have charged 1/2 of office expenses.

„Canal, steamer, and sundry charges.“ (telegraph etc) May or may not include reserves for renewal and depreciation.

„Rents, Debenture and Preference Interest“: davon oft deducted interest on capital expended on works in progress. The more capital is returned as interest, the less will be employed on productive works. Sum thus distributed amongst proprietors, not profit, but return of capital. If capital may be dissolved in interest for one year, why not for 10?

„Loss or Gain on Issue of new shares and debentures“. Premium not to be placed to revenue, as losses are to capital.

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The Money Market Review, 25. April 1868. S. 474.
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Injuries consequent upon the vibration and Smoke of Trains.

Wenn Railways – (im Gegensatz zu Private Industry) als Use of Property sanctioned by Legislature in particular way – do damage to other Property durch vibration, smoke etc können sie, falls nicht case of negligence, nicht zu Schadenersatz angehalten werden. If every occupier of a house near a railway should have an action for the injury done to his nerves by the vibration and passing of the engines, railway fares would be raised to Public.|

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May 2, 1868.

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The Money Market Review, 2. Mai 1868. S. 494/495.
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The Market Value of the Finance Co. Shares.

International Financial Co: stated that the Co possessed at close of 1867: £44,081 in cash, £19,813 in bills, £241,737 lent on securities, £717,227 in investments, Total £1,022,858. 150,000 shares of £10, worauf £5 paid. Present quotation £3 to £3. 5s. A large amount invested in Metropolitan Sewage Co, a concern, for the present, speculative, although it may become ultimately profitable.

London Financial Association: Statement issued by the Directors, Sept. 67, showed:

Dr. Loans, investments, and current accounts £1,379,791
Cr. Securities held against money lent, viz:
Railway Debentures £330,743
Lloyd’s Bonds 919,785
Preference Shares 730,580
Ordinary Shares 919,785
£2,900,893

The Liabilities to public last July (’67) £280,000, reduced in following Sept. to £228,000. Capital of 40,000 shares of £50 each (£2,000,000), paid per share 30£, also £1,200,000. The market price p. share 22 discount, or only 8l. per share mit £30 paid. So der 40,000 shares Marktpreis £280,000 instead of the £1,200,000 paid by the shareholders. Of course, die Railway investments not worth anything like par, aber durch depreciation der shares [the difference] too great. Large portion of the securities held consist of bonds and shares of Welsh Railway. Seven railways in which the association held an interest had been opened for traffic in 12 months. Daher:

Summary of the Position of the financial Cos:
Prices of Finance Shares.
April 1865. April 1867. Present Price. April 1868.
Credit Foncier of England. £6 pm. ⦗on 100,000 shares. £5 paid.⦘ £7 disc. ⦗on 200,000 shares. £9 paid⦘ £7 disc. ⦗on 200,000 shares. £10 paid.⦘
General Credit. £2. 10s. pr. ⦗250,000 shares. £4 paid⦘ £3 disc. ⦗200,000 shares. 7l. 10s. pd.⦘ £2. 10s. dis. ⦗200,000 shares. £7. 10s. paid.⦘
Internat. Financial £1. 10s. pr. ⦗150,000 shares. £5 paid.⦘ £2. 15s. dis. ⦗150,000 shares. £5 pd.⦘ £2. 15s. dis. ⦗150,000 shares. £5 paid⦘
London Financial. £7. 15s. pr. ⦗40,090 shares. £15 paid⦘ £23 disc. ⦗40,000 shares. £25 paid⦘ £22 disc. ⦗40,000 shares. £30 paid⦘
Values of the Properties at the respective Periods:
Credit Foncier of England £1,100,000 £400,000 £600,000
General Credit 1,625,000 900,000 1,000,000
Intern. Financial 975,000 337,500 437,500
London Financial. 910,000 80,000 80,000
Total £4,610,000 £1,717,500 £2,117,500.


May 9, 1868.

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The Money Market Review, 9. Mai 1868. S. 521.
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The Cotton Statistics Bill. Read 2nd time on H.o.C. 6 May ’68.

Mr. Bazley, on moving second reading der Bill[,] said its object was to ascertain correct information in reference to all the cotton which arrived in the U. Kingd., and practical effect would be to prevent undue speculation in this important staple.

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The Money Market Review, 9. Mai 1868. S. 521.
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Un. States Debt. Washington May 6.

Monthly statement of McCulloch. On 1st May ’68 Debt = $2,639,500,000 against $2,642,000,000 on 1st April 1867, being decrease of $2,500,000.



May 16. 1866 1868.

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The Money Market Review, 16. Mai 1868. S. 537.
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The European Bank. Maladministration of Joint Stock Cos.

Highest degree of incapacity, culpability, and commercial immorality. This Co. compounded of the English, Belgian, and Netherlands Bank, the Union Bank o. England and France, and several other new banks with which it amalgamated. Commenced business in 1864, stopped payment on 19. May 1866, is now in course of liquidation, the liquidators being Sir Robert Walter Carden , who was one of the directors of the concern, and Mr. George Brown and Mr. Frederick Whinney. At meeting of 9 Nov. ’67 shareholders nominated investigation Committee. Now before us Report of the Liquidators, issued on 9 April ’68, und Report of the Committee of shareholders, issued on 22. April ’68. Liquidators’ statement shows estimated loss of capital of about £600,000 (exclusive of interest and costs of liquidation) or 6/7 of the whole capital, within the short period of 21/2 years. Shareholders committee found great difficulty in their inquiry. Amongst these difficulty „the very irregular mode of bookkeeping, the extraordinary multiplicity of books, absence of some books of the head office, and of all the  The Money Market Review: branch bank books
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branch books
, and the alleged non-existence of other books indispensable to a proper recording of the transactions of a great establishment.“ Die directors thun alles to make them not find the clue to their malversations: „The various amalgamations to which this bank has been a party are still involved in a cloud of mystery discreditable to those connected with the details.“ The paid up capital set forth in the various balance sheets, and vouched by the auditors, was, in fact, never so paid up. Of the £80,000 to be contributed by the Birmingham and South Staffordshire Bk., a very small proportion was ever received, and other serious deficiencies exist. The circumstances attending the transfer of a large number of shares, transactions in which the funds of the bank have been misapplied and dissipated, open to grave reprehension. The last call remains unpaid on shares now standing in the names of nominees of the bank and of directors and officers of the bank as so called „trustees“. Some of the directors have |36 hitherto failed to pay the last call even on the shares which qualified them for seats at the board. Debts are still owing to the bank for advances made to Cos. in which the directors were personally interested, „made in the most reckless manner, and upon next to nominal securities“. The committee advert to the „fatal and enormous advances made to the different French Cos. … apparent follies  Zusatz von Marx.
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(real Gaunerei)
of these operations“. As to the conduct of the directors, and their personal liability in subscribing for the shares of other Cos., no difference of opinion possible. Irrespective of the serious loss sustained by these shares at the date of the suspension, a very large sum has been actually diverted from the purpose of the liquidation to meet liabilities attaching to these transactions. Committee glaubt die directors können personally been made liable for the losses. Sir R. W. Carden, sagt Money Market Review, ought not to be one of the liquidators.  Marx’ Worte.
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Er war grade Hauptschwindler als director.

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The Money Market Review, 16. Mai 1868. S. 538/539.
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Bank of Bombay.  Zusatz von Marx.
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(Govt. Schwindler.)

Schwindel und Betrug, obgleich Government trustee der Bank und 3 of its members were nominees or directors. Die Public placed 2 Mill. £. St. in the Bank. Die Schwindelei bewiesen durch des Gvt eignes Blue Book. Erklärte aber (The English Secretary for India in Council) that no grant could be made from the public revenue in India for the purpose of making good the losses. Darauf verlangte das India office (nachdem sie durch ihr Blue Book die Schweinerei selbst bewiesen) die shareholders to prove those same charges before a commission just sent to Bombay to inquire into the affair. The Gvt. pleaded guilty, and then demanded a trial.



23. May 1868.

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The Money Market Review, 23. Mai 1868. S. 559.
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Personal Liabilities of Directors in Jt. Stock Cos.

Herfordshire Herefordshire Bank Co. (illimited) failed June 1863 mit deficiency of about £36,000. Nur 24 shareholders. Einer alone had to pay 1/2 des deficits. Nun suit von Turquand, dem official liquidator der Bank, gegen surviving directors und die representatives of some deceased ones for the losses incurred. His charges against the directors: 1) that they had continued to carry on the business of the Co. for several years after the surplus fund and 1/4 of the capital had been lost, gegen die 108th Clause des Deed of settlement; 2) that they had paid dividends out of capital von 1846 till 1863; 3) that they had allowed other debts to stand over unpaid, published false reports und balancesheets; improperly sanctioned loans to one of themselves. On 18 April entschied Lord Romilly, master of the rolls, für den Kläger.

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The Money Market Review, 23. Mai 1868. S. 576.
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French National Debt.

Now £485,300,000; of which £437,700,000 consists of Rentes, £36,000,000 floating debt, £11,600,000 of caution moneys reimbursable. After the introduction of the proposed loan of £17,600,000 the total debt will stand at £503,900,000.



May 30, 1868.

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The Money Market Review, 30. Mai 1868. S. 589/590.
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The half yearly Reports of the Madras and East India Irrigation Cos.

Until the assumption of the Gvt. of India by the Crown there was no fixed policy for the general extension of irrigation works. Though the Crown succeeded the Co. in 1858, it was not until 1861, that the famine in the North Western Provinces revealed the necessity of irrigation. Five year years afterwards the more deplorable famine of 1866. Erst 1867 und 1868 absolute sanction given by Gvt. to all needful extensions of the practice. For the delay in the irrigation of Madras and Orissa, these Cos. not responsible. The character of the works they are constructing make full amends in durability and efficiency. … The Gvt. has decreed the systematic irrigation of India because it is the best security for the public revenue; and these Cos., in the territories which they cover, are providing an indefinite number of canals from several rivers which will provide every acre of every estate, at the hottest seasons, with ample supplies of the fertilising element. … The two great instruments to prevent famines are irrigation and roads, inasmuch as they constitute the means of producing and distributing food. As to roads, the old East India Co. replied, that owing to a want of stone the means of making good roads did not exist. (in Bengal) The same thing was said of other provinces. Violent disputes always occurred when the wretched vehicles of the country proceeding in opposite directions met in nullahs – torrents during the monsoons, but narrow gorges in dry seasons – from the impossibility of their passing each other. These natural tracks are gradually being superseded now; and Bengal presents at this time a very different aspect in this particular to what it did 30 years ago. By means of its internal communications, some of which are tidal channels constructed by one of these Cos, stone is being brought into it.



June 13, 1868.

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The Money Market Review, 13. Juni 1868. S. 640.
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The East India Irrigation and Canal Co.

The actual results achieved by the East India Irrigation Co. in the Godavery District: Those works will distribute the enormous quantity of 1,500,000 cubic yards of water per hour, on an average, for half the year, and about 600,000 cubic yards per hour, on an average, during the other half, or about 9000 million cubic yards in all. These works have been constructed at a total cost of about 1 Mill. £. St., and allowing 9% for interest, management, and repairs, or £90,000 p.a., the cost of 100 000 cubic yards of water will be £1 only, whilst the actual cost hitherto paid by the cultivators is one rupee for 300 cubic yards, or £30 for 100,000 cubic yards, being 30 × the price at which the Co. can supply it. Encouraged by their success in this district, and the famine of Orissa, the Co. have now undertaken extensive works in Orissa, and also in the district of Behar. Great Progress already made in the Orissa undertaking – in fact, the head or main works have been completed, and water is being actually supplied over a considerable extent of country. But further capital is required for the extension of these works, and the Gvt. of East India have agreed |37 with the Company to pay for all water supplied by the Co. for the purpose of irrigation, the shareholders being thus secured against loss from the nonpayment of the water-rates in that district. The „Behar Undertaking“ has been strongly recommended by the Indian Gvt. By way of encouragement and guarantee, they have in this case also agreed to pay for all water supplied for the purpose of irrigation, upon condition that the Gvt. shall participate in a certain portion of the profits to be realised by the Co. after payment of 20% to the shareholders. Profits anticipated are calculated to realise 40 or 50% for the shareholders Zusatz von Marx.
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!

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The Money Market Review, 13. Juni 1868. S. 642.
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Cotton Statistics Bills.

In H.o.L. Lord Salisbury moved 3d reading of the measure. Brachte auch Petitions ein which complained of the injury done to the cotton manufacture by the speculation persistently carried on in the raw material; that manufacture representing 40 Mill. £. St. of capital and the labour of 1 Mill. Persons. Bill read 3d time and passed.



June 20. 1868.

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The Money Market Review, 20. Juni 1868. S. 660/661.
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Frauds and Forgeries on the Leeds Banking Co. – Conviction of Edgeley.

Bank stopped autumn 1864. Sogleich wurde notorious that Greenland (the manager) perpetrated frauds und forgeries, in conjunction with several other parties, behind back der directors. Marsden, one of the real culprits, escaped to America ⦗his halfwitted clerk (a youth) sentenced, on Greenlands evidence, to 15 years penal servitude.⦘ Greenland etc schließlich pardoned. (Hardy refused to pardon Skaife, the poor boy, kurz nachher pardonirte er Greenland). Skaife still convicted felon. Greenland, for whose benefit he had signed the forged bills, and whose sanction he considered made the thing right, forthwith wended his way to the Mediterranean. Is there still living upon the fruits of his crimes. Edgeley, a socalled merchant of London (City), was one of the parties by whose forgeries and the connivance of Greenland the Leeds Bank defrauded to extent of about £108,000. Prosecution instituted by the official liquidator, 12 months since. Only last week Edgeley tried. On the pretext of Greenland’s absence (who refused returning) etc Edgeley succeeded to postpone the trial session after session. Endlich tried, Jury found him guilty, sentenced by judge to one year and 9 months’ imprisonment.



June 27. 1868.

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The Money Market Review, 27. Juni 1868. S. 683/684.
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Railways 1845–46.

First application to Parliament for a bill to construct a railway 1801, for a line between Wandsworth and Corydon Croydon. Von 1801–1825 Acts were obtained for 28 more railways. After 1825 the movement quicker. 1845 there were in existence Acts of Parliament for 412 railways, to be constructed at a cost, in round numbers, of £155,000,000. Average of railways up to 1845, not financially prosperous, but then a mania. George Hudson appeared upon the scene, indoctrinated the community mit belief that railways were mines of gold. He became chairman of the Midland Railway, of the York and North and Midland, of the York, Newcastle, and Berwick, of the Eastern Countries, and others. In that capacity he thought fit to lease at 6% the Birmingham and Bristol, which had never before earned 2% p.a.; and by this lease the value of the share was raised from some 60 or 70£ p. share to 150£. Upon the announcement of this lease, the shares in the railway concerned rose in one day nearly £50 in market value. Then followed other railway leases. The „Great North of England“ was taken over at 10% p.a., with a corresponding increase in market value, and then the Leeds and Bradford, and the Hull and Selby, likewise at 10%. Next, the Eastern Counties, which had struggled on for years with scarcely a dividend at all, suddenly paid 7% p.a. under Hudson’s magic sway, and the price of the shares rose 3 or 4 ×. But perhaps the most remarkable instance of the effects of his regime was the establishment of a premium of about 28£ p. share upon the Newcastle and Berwick before a sod was turned, and though there was only £2 p. share paid up. These facts were quite enough to send the world mad. It was schön to obtain a profit of £28 in one week by paying £2, and here was the foundation of the railway mania of 1845. Adopting Hudson’s plan of action, other railway Cos. followed in his wake, and there stands on record a great battle between the London and Northwestern and the Great Western for possession of the unmade railway from Oxford to Birmingham, the one offering 175% premium for the shares, and the other 50 P.Ct. Then came a host of other leases at fixed rates of guarantee – the Trent Valley; the Lancaster and Carlisle; the Preston and Wyre; the Bolton and Bury; and numerous others. The railway world lost its senses. It was only to buy and to double, treble or quadruple the purchase money. But then supervened a still more questionable class of adventure. Baseless projects were set on foot in all directions. Such a scheme as the „Manchester and Southhampton“, before even the Bill was lodged, and for which an act of Parliament was never obtained, was at £4 to £6 premium; while the South Devon, the „Direct Exeter“, the South Wales, and a host of others, some of which had never any real existence, commanded any premium that mad speculation could conjure up. The „South Midland“ – a project for a line from Hitchin to Leicester – stood at 12£ premium, the Banburry and Cheltenham at 7 or 8£ Prem., and even the Cornwall at £6 or £7 premium. Great Western shares, with £80 paid, at one period approached the enormous price of £235. London and North Western were at nearly £250; and difficult to say what railway share in the market was not at some ideal premium, on the same scale, and the same false computation of profit. Then came the reaction. Found that the profits upon which Hudson had based his 10% leases and similar arrangements, were wholly imaginary. He paid dividends out of capital, and, to use the words of an official before the |38 Eastern Counties Railway Investigation Committee, he achieved his purpose by the rule that, „capital was to bear what revenue would not“. Easy to pay dividends on such terms, until public saw that the whole a farce, then down came the entire fabric, involving in utter ruin 1000ds of families.

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The Money Market Review, 27. Juni 1868. S. 686.
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The Extraordinary Subsidies of the French Gvt. to the Messageries Impériales.

This Co. undertook its mail contract with India and China via Egypt in 1861, with all the advantages derivable from the 17 years of costly trial and experience gained by the (Brit.) Peninsular and Oriental Co. French Gvt. conceded to that Co. subsidies, to be payable out of French taxes for 24 years, without competition, equal in amount to 3 × the amount of subsidies payable to the English Co., with competition, at intervals of 6 or 8 years. Auch sonst enormous advantages und guarantees conferred upon the French Co. without parallel in the contracts of the British Gvt. with the Peninsular and Oriental. Now another contract with the favoured Messageries submitted to the Corps Législ. Hitherto the mail service of France in the South Pacific performed by the British mail steamers, without cost of 1 single d. to French Gvt. or people. Messageries are ambitious to conduct it; with subsidy of no less than 3 times the mileage rate now paid by the British Gvt. for the same service. In addition to this, the Messageries are to have a loan from the Gvt. of £160,000, and their shareholders the guarantee of the Imp. Gvt. of 5% dividend upon their capital … Gratuitous squandering of Public Funds upon speculative monopolists unable to sustain themselves in fair competition.

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The Money Market Review, 27. Juni 1868. S. 693.
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The West Wisconsin Railway.  Zusatz von Marx.
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(Land und Eisenbahn in U. St.)

Wisconsin in part covered mit immense forests of most valueable timber; possesses a rich vegetable soil, averaging a depth of 2 feet; most prolific in minerals; the great level region of the Mississippi lies chiefly within its limits. Is already 2nd wheat producing State in Union. Population at last census was 800,000. Its area 54,000 □ miles, little less than that of England and Wales. Is deficient in railway communications. British capitalists invited to promote that object. Some proposed the West Wisconsin line, to be 157 miles in its total length, running in a north-westerly direction, from Tomah, on the south east, where it connects with the lines from Milwaukee and Chicago to Hudson, on Lake St. Croix, whence it will soon connect with St. Paul’s, the capital of Minnesota, where the great railways of the West concentrate. It passes through a fine farming country in a high state of cultivation, as well as through forests of pine, walnut, maple, and oak; and along the whole route are not only farms but numerous steam saw mills and flour mills, furnishing the means of a constantly growing freight traffic. The Congress of the U. St., as an aid to the construction of the line, made some years ago a grant to the Co. of 1 □ mile of land for every mile in length of road constructed – that is to say, of 1,004,800 acres. The value of these lands, at the present legal minimum price is 4,512,000$ or £900,000. … The value of land is reckoned von 21/2 $ to 5$ p. acre. At the present moment the lands of the Illinois Central Co. have improved to average of nearly 11$ per acre; and the West Wisconsin lands as rich, if not richer, naturally.

July 11. 1868.

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The Money Market Review, 11. Juli 1868. S. 27/28.
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Alderman Dakin.

This worthy is a director of the City Offices Co; Metropolitan Railway Co; South African Mortgage and Investment Co; London and Lancashire Insurance Co; chairman of the English and Scottish Marine Insurance Co; director of the Rhymney Railway Co.; chairman of the Grt. Western of Canada Railway; director of the Great Central Gas Consumers Co.; Metropolitan District Railway Co; Metropolitan Railway Warehousing Co; Cape (Eastern Province) Railway Co und was director in several Cos. now being wound up.

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The Money Market Review, 11. Juli 1868. S. 28.
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H. E. Bird, public Accountant, Estimate of Railway (nach den official accounts der Directors (!)[)]

Diese estimates für die 18 largest British Railway Cos.
Capital expended, 1866 and 1867 by the 18 Railways £31,248,287
Gross Revenue earned by the same in 1866 and 1867 68,525,458
Working expenses charged against Revenue dt. dt. 33,528,073
Net Revenue 34,997,385
Surplus of Net Revenue over Capital expended £3,749,098
Paid away in Dividends and interest (dtto ’66 and ’67) £35,694,873
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The Money Market Review, 11. Juli 1868. S. 29.
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Labor of Superintendence. Venezuelan Loan. („Venezuela: Its Government and its People, and the History of the Loan of 1864. By E. B. Eastwick, C. B. F.R.S., late Secretary of legation at the Court of Persia; and Commissioner for the Venezuelan Loan for 1864.“ (London. 1868.)[)]

 Kommentar von Marx. – Marx verweist auf I. Gerstenberg: Suggestions for Forming a Council of Foreign Bondholders. London 1868. Diese Schrift erhielt er von Sigismund Borkheim am 11. November 1868. Für seine Einschätzung der Broschüre siehe auch seine Briefe an Collet Dobson Collet vom 19. und 23. November 1868.
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Dieser Kerl von der City geschickt zum Contrahiren des loans. Vgl. auch Isidor Berlinerblau Gerstenberg.

 Zusatz von Marx.
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Dieser Eastwick sagt Achsen zuckend von den Creolen von Südamerika:
„Though they have many good qualities, they are averse to physical labour … Their wits are sharp, and they do well for superintendents; but as to work, that tries the sinews … All the haciendas in the country would go to ruin if it were not for the Indians and the mixed breeds.“ The Creols are good for nothing, sagt die Money Market Review »but as superintendents«.  Zusammenfassung von Marx in eigenen Worten.
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Hauptwitz des Eastwick wie des Berlinerblau daß die Englische Regierung gegen Venezuela (die Regierung dort hatte den englischen Kapitalisten gewisse Zölle verpachtet) interveniren soll.
He reproduces despatch of Palmerston d.d. 1848, worin der emphatically asserts the rights of the British Gvt. to intervene in such cases. (gegen defaulting Gvts.)  Zusatz von Marx.
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Und die Money Market Review sagt:

So long as the „profitable“ undertakings at home are the most profitable, and sufficient to absorb all capital seeking investment, that capital will no doubt be invested in them; but money, like every other commodity, will always seek the best market, and if foreign states are willing to pay higher rates of interest than can be obtained from home investments, it is natural that English capitalists should invest in foreign loans. And if a foreign state, as a state, contracts to pay a British subject, the latter has an undoubted right to the assistance of his Gvt., in enforcing the performance of that contract.|

39

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The Money Market Review, 11. Juli 1868. S. 42.
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Income Tax. Ireland.

Amount of property and profits charged in Ireland: £21,231,567 in 1854, £23,399,021 in 1864, £25,273,390 in 1866.

Aus:
The Money Market Review, 11. Juli 1868. S. 45.
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Australian Gold. Imports in U. Kingd. for 10 J. end. 1867 (inclusive).

1858. 1859 1860 1861 1862 1863 1864 1865 1866 1867
£.9,064,763 £.8,624,566 £6,719,000 £6,331,225. £6,704,753 £5,995,368 £2,656,971 £5,051,170 £6,839,674 £5,801,207.

When considered that the New Zealand gold fields have brought in contingent of gold during last 2 or 3 years, seen that gold yield in Australia proper has somewhat fallen off.

July 18. 1868.

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The Money Market Review, 18. Juli 1868. S. 53/54.
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„Commercial Morality. By a retired Merchant. London 1868. 2nd edit.“ (Ranken et Co. Drury House, St. Martin’s Le Grand:

Dwells upon the wrongs which the butchers, grovers etc are now suffering at the hands of the cooperative stores, „by which they have been reduced to circumstances of temptation“. „So far from running amuck at the shopkeepers, they are deserving of our sympathy, for many worthy people must be thrown out of employment by the centralising character of the co-operative system.“



July 25. 1868.

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The Money Market Review, 25. Juli 1868. S. 84/85.
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Banking Progress during half year ending 30. June. Reports of the London Joint Stock Banks.

Deposits:
June 30. 1868. Dec. 31. 1867.
London and Westminster £19,915,950 22,010,572 Decr. £2,094,622 Total net decrease of deposits
£3,747,194
= 9% on amount held last Dec.
Union 10,069,837 12,071,097 Decr. 2,001,260
City 2,514,782 2,229,791 Incr. 284,991
Alliance 1,296,286 1,322,218 Decr. 25,932
Imperial 1,159,412 1,177,967 Decr. 18,555
Consolidated 2,260,770 2,184,783 Incr. 75,987
Metropolitan 297,237 265,040 Incr. 32,197
Acceptances.
June 30. ’68 Dec. 31. ’67
London und Westminster £970,096 902,700 Incr. £67,396 Zunahm[e] Total in acceptances of
£2,252,674
Union 7,308,655 5,298,744 Incr. £2,009,911
City 2,161,690 1,418,388 Incr. 743,302
Alliance 217,593 98,541 Incr. 119,052
Imperial 93,004 134,726 Decr. 41,722
Consolidated 200,531 102,414 Incr. 98,117
Metropolitan 4,596 4,676 Decr. 80

London Joint Stock had still its old form of account of lumping acceptances mit deposits. Total of these items £13,836,628, being £1,859,296 more than last half year.

Amount of net Profits.
June 30 ’68. Dec. 31. ’67
London and Westminster £152,396 £147,646 Incr. £4,750
London Joint Stock 74,908 66,994 7,914
Union 99,570 89,711 9,895 9,859
City 17,673 19,877 [Decr.] 2,204
Alliance 16,417 5,734 10,683
Imperial 10,824 10,670 154
Consolidated 31,313 27,263
Metropolitan 5,932

London and Westminster divides 24% p.a. against 32 und 28% p.a. respectively in the 2 preceding half years.

London Joint Stock 121/2% (on larger capital) against 121/2 und 162/3
Union Bank 15 15 25
City Bank 7 7 10.

Imperial, Consolidated und Metropolitan continue to pay 5% p.a. as in January last, Alliance Bank 3% p.a. for last half year, no dividend January last.

Aus:
The Money Market Review, 25. Juli 1868. S. 85.
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Intrinsic Value of Railway Property. (Concluded.) (Sieh p. 38)

Capital apparently raised or expended at close of 1867 by said 18 Railways in round numbers: £361,387,016. (Dieß weniger als wirklich)
Gross Revenue of Year 1867 £34,749,460
9.63% upon the capital spent at the end of the year. (Gross Revenue upon the capital spent at the end of the year.)
Working Cost (1867) 17,138,120
Apparent net profit £17,611,331
This yield nominally an average of 4.88%. Aber nun deduct charges made during year to capital
Deduct charges to capital 12,198,967
Net Profit with closed capital accounts £5,412,364
These net profits upon capital of £361,387,016 would yield in year exactly 11/2%.|

40

A bad Business. – Smith, Knight, and Co. (Lim.)

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The Money Market Review, 25. Juli 1868. S. 85.
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John Smith, of that firm, contractors applied to Bankruptcy Court on 9. July for discharge. Nach den accounts (before dem Court) liabilities £493,384, assets only about £4,407, besides a „doubtful“ claim of £118,000 on the Penarth Harbour Dock and Railway Co. On 1st April 1864, the business of Smith and Knight transferred to limited Co. im in consideration of £234,000. Their liabilities at that time £218,076 mit assets stated to be £119,000, in addition to the doubtful claim above mentioned. When the Co. was formed each of the partners took 10,000 shares of £50 each. Diese Kerls sold their really insolvent concern at goodwill of £234,000. Found directors to father such a project.

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The Money Market Review, 25. Juli 1868. S. 88.
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Dieser Smith commenced business in 1855 mit £4,400. He senior partner. Of Knight nothing is said, has besides, absconded, war probably penniless. Each of these partners (1864 when the lim. Society started) engaged to take 10,000 shares, i.o. to pay £1,000,000 (when they were insolvent[)]. Vor dem Bankruptcy Court Smith (nachdem Knight absconded) discharged, since the directors of Smith, Knight et Co – the representatives of the shareholders – intimate that they are perfectly satisfied mit Smith’s accounts, and have no objection of his passing and being discharged of all legal obligation.



August 1. 1868.

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The Money Market Review, 1. August 1868. S. 113.
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Board of Trade Returns

Show depression of Trade.

Exports, value, in June ’68 nearly 14 Mill. £., being £737,000 less than in May ’68, £1,557,000 less than June 1867 und £697,000 less than June 1866. Exports, value, first 6 months ending June ’68: £84,601,000 being £3,012,000 und £8,256,000 below those of corresponding periods of 1867 und 1866 respectively.

These Reductions chiefly to be attributed to changes in exports of textile fabrics, cotton manufactures showing the greatest falling off. Diminution in all chief articles (vgl. mit 1867 only) excepting cotton yarn, coals and copper.

Imports. „Computed Real value“ of enumerated articles for May ’68: 213/4 Mill. £, 21/2 Mill. less than May ’67 und 3 Mill. less than May ’66.

Aggregate Imports, ditto, for 5 months end. 31 May 1868 £90,168,000, merely £1,620,000 than same period 1867, aber £8,148,000 less than same time in 1866. Chief alterations, compared with same time 1867, Increase in Wheat imported from U. States, Egypt, Turkey etc and Decrease in imports of wool from Australia, and silk from India, China, and other places. Reduction of about 11/2% in value of cotton imported, aber slight increase in quantities for the 6 months ending June last.

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The Money Market Review, 1. August 1868. S. 112.
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Panic and Investors.

After a panic, such as that of May 1866, comes prostration, when investors scarcely care to buy anything at any price; then a hesitating confidence; then full confidence; and at last gambling and another panic. This has been the ordinary routine, and in all probability it will continue.

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The Money Market Review, 1. August 1868. S. 128.
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The Indian Trade.

Export from U. Kingd. nach India. amounted on April 30, ’68 to £7,008,951 as compared mit £5,762,596 in corresponding period of 1867, and £5,129,811 in that of 1866. The shipments to Madras have shown some depression this year, but Bombay and Scinde took British goods in first 4 months of this year to £1,817,511, as gegen £1,415,253 in period of 1867 und £1,433,181 in that of 1866. Similarly the value of the British goods taken by Bengal and Pegu in first 4 months of 1868 was £4,706,837, against £3,852,318 in 1867 und £3,102,947 in 1866 (corresponding periods).



August 8. 1868.

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The Money Market Review, 8. August 1868. S. 142/143.
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Final payment of Creditors of the late Agra and Masterman’s Bank. (Stopped 7 June ’66, every creditor paid 15. July, ’68.)

At the time of stoppage liabilities £7,700,000, and assets spread almost over the whole world (England, India, China, Australia). Creditors paid in full mit interest of 5%. When it stopped liab. £7,700,000 und assets £10,000,000. The resuscitated undertaking has just declared interim dividend to 30. June at 8% p.a. on the A Capital (the shareholders Capital. The B Capital is that represented by the reserved shares of the „Agra and Masterman’s“ proprietary.)

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The Money Market Review, 8. August 1868. S. 149.
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Cotton Statisticts Statistics Act. 1868.

Return of actual stock of cotton on hand in various parts in U. Kingd. on 31. July. 68 278,450 bales of American, 129,872 of Brazilian, 132,923 East Indian, 41,318 bales Egyptian, 27,226 bales miscellaneous; total number of bales 609,789. This return made from figures voluntarily given, and which the Board of Trade had, consequently, no means of checking.

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The Money Market Review, 8. August 1868. S. 161.
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Commercial Prospects of U. States. (Financial Circular of H. Clews et Co. New York.)

Owing to deficiency of home production, we have, for last 5 years, imported Foreign products largely in excess of ordinary means of payment, viz. produce and precious metals. Resulting deficiency set off by remittance of U. St. securities to extent of $700,000,000, or, say, 1/3 of our whole gold interest debt. Dieß purchase of our bonds comes now to end. Aber we are not proportionally reducing our Imports. This verspricht crisis from overtrade.

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The Money Market Review, 8. August 1868. S. 161.
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Pacific Railway etc.

Officially announced that the Great Railway Route to the Pacific will be opened for through traffic from New York to San Francisco on 4 July. 1869.|

41

15 August. 1868.

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The Money Market Review, 8. August 1868. S. 167/168.
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The Exports of Gold and Operation of Bank Act.

Decrease in coin and bullion £571,260. Decrease in reserve of notes and coin: £141,140. Coin and Bullion in B.o.E. £20,800,729. Reserve: £11,267,469.

During last few weeks there has arisen a moderate but continuous demand for gold for exportation, followed by an increased but still inconsiderable demand for it on account of the new French loan, and the customary demand at this season for our harvest operations. The demand for harvest purposes have been earlier than usual, heavier than usual, and more universal and less gradual than usual, because such has been the nature and character of the harvest itself. But all these demands put together small compared with total amount of bullion in hand. Yet effect on Money market considerable. Consols depressed to nearly 1%, other home securities in proportion, while many foreign securities have fallen 2 or 3%. Why all this? Rational cause there is none. But for years public mind accustomed to associate drain of gold, whether external or internal, with a rise in value of money, and a fall in the prices of all ordinary investments. Stupid investors, whenever what is called a drain of gold occurs, it is to them, a sign of ill omen. They rush to sell in anticipation of the fall, and thus actually produce it, as in this case. Dieser Blödsinn legitimate offspring of the Bank Act of 1844, and the policy of the Bank directors under its provisions.

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The Money Market Review, 8. August 1868. S. 168.
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The New Act on amending the Law relating to Railways.

Der Akt enthält nicht Compulsory official Audit.

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The Money Market Review, 15. August 1868. S. 169.
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Indian Railways in their most recent Financial Aspect.

Mr. Juland Danvers has lately issued his annual report. During year ended 31. March 1868, 349 miles of new railway opened for traffic, including the Jubbulpore branch of the East Indian, consisting of 225 miles; 29 miles of the Grt. Indian Peninsula to Nagpore; 27 miles of the Delhi line between Ghazeeabad and Meerut; another section of the Delhi line of about the same length between the western terminus of Umritsur and the river Beas; and the remaining 41 miles of the Great Southern to Errode, where it forms a junction with the Madras Railway. Drawback: the works on the Great Peninsula are proved to be defective, especially on the Bhore Ghât incline. The „through“ communication between Bombay and Calcutta, which would have been completed this year but for this mishap, now postponed. Engineers’ estimates have been exceeded in every instance, while the contract has not in all cases been observed.

The principle of the guarantee system by the Gvt. must not be abandoned.

Capital required according to the last Estimate, 31 March 1868 £93,916,000
Authorised by Gvt. to be raised do. do. 84,386,000
Total raised do do 76,579,016
Withdrawn for expenditure do. do. 75,071,656
The amount of capital raised during year ended 31 March 1868 £9,102,540
Expenditure during same year 7,024,960
Estimated Expenditure during year ending 31 March 1869 £6,077,000
Stands on balance to the Credit of the various Cos 1,682,000
Leaves, according to Estimate, to be raised during 1868–69 5,574,000
Revenue Receipts in gross for year ended June 30, 1867 £4,875,112
Revenue expenses 2,537,812
Net Profit 2,337,300

The Revenue for the Indian Railway System during year ended 30 Jun. 1867 nur £32,337 in excess of previous year, but year ended 30 June 1866 there was increase of £962,984 over that ended 30 June 1865, and thus in 2 years the addition to the revenue upwards of a mill. £.

For the years ended
June 30. 1866 June 30. 1867.
Net Revenue £2,304,534 2,336,871
Guaranteed interest 2,936,672 3,179,095
Advanced by the State 632,138 842,224

If there was trifling increase in the net revenue of 1866–67 over that of 1865–66, the expenditure of capital advanced much more rapidly, and consequently the payment of interest by the State become far more onerous upon the state than in the previous year. The Revenue of 1865–66 exceptionally increased by the traffic in cotton from the interior to the coast under the stimulus of the high prices in U. Kingd. and the attendant mania in India. This stimulus removed, the traffic of the railways relapsed into its normal condition. The wonder is that the traffic was so well supported in the latter year.



22. August. 1868.

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The Money Market Review, 22. August 1868. S. 191/192.
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The General Estates Co. (lim.)

Nach Report von Fagg and James, the official liquidators, the Co. formed in June, 1865. Projector: James Clifford Hodges. Objects proposed: acquisition of leasehold and real property in City and elsewhere for the purpose of making a profit by them, but not clear in what way the profit was to be made. The immediate and real object of its formation was the purchase and taking over of several heavily mortgaged properties belonging to Hodges and which Hodges did not know how to dispose of advantageously. Shares, allotted in July; only 5,925 taken up; total amount, therefore, of paidup capital with which the Co. commenced operations, only £11,850; but that was of no consequence. If they had not paid up capital they had unpaid capital, for which the shareholders would be liable, and they had besides the credit of a corporate company which they could utilise by the creation and issue of debentures and bills. No sooner was the Co. constituted than |42 the directors contracted with Hodges for the purchase of his properties, – certain houses in the City, and some building land at Clapham and Balham, for £65,712 paid to him – after deduction of £27,800, for which they were in mortgage – partly in cash and partly in debentures and acceptances. In a few months, and still having no more than their original amount of capital, they contracted mit Sir M. Peto for the purchase of an estate known as the Spread Eagle property, in Gracechurch street, for £100,000. They had no money to pay even the deposit, but had convenient bankers, who lent them £10,000 for the purpose. Purchase not completed, because they were unable to find the remaining £90,000; contract ultimately cancelled, the Co. forfeiting £6,120 of the deposit, besides paying the law expenses. Nevertheless, early in 1866, they agreed to purchase an estate at Holloway, but were unable to complete the contract, it ended in forfeiture of £100. In March, 1866, they took a lease of some ground in Philpot-lane, at a rental of £750 a year, and agreed in expending £5000 in building thereon. Put up building, for which builder now claims £8000, and for which he holds possession of the premises, said not likely to realise £.5000.

One of the properties purchased from Hodges a building lease of a house in Limestreet, to which was attached a condition in favour of an existing tenant. Premises were rebuilt without any regard to rights of this tenant; consequence action of trespass and action of ejectment, compromised by agreement to pay £1,100 as compensation. But the £1100 never paid, constitute a claim against the Co. which awaits the decision of the court. But the reckless improvidence of these directors did not end here. On portions of the Balham estates they granted building leases, engaging to make advances to the builder as the works progressed. Thus they advanced £5000 to one builder, which amount they borrowed from the first mortgage of the property for the purpose, giving him, as further security, the building agreements. Of another portion of their property, for which they had paid £16,000, they did not make a single shilling of rent or profit during the whole of the 14 months’ of the Co’s existence. Yet were borrowing large sums, thousands of £, all this time to take up their acceptances; at the rate of 21% p.a.! Some of these bills entrusted to Hodges to get discounted, and of the produce of them nearly £1000 still unaccounted for. Since the commencement of the liquidation Hodges has become bankrupt, little chance of the amount ever being repaid. Two of these acceptances for £1000 each were handed for discount to a firm in whose hands there was an overdue promissory note for £1,500 of the Hill Pottery Co., some of the directors of which Co. were also directors of the General Estates Co. The acceptances and promissory notes respectively bore the endorsement of the several persons who were directors of both cos., and on this ground the discounters claimed the right to deduct the £1,500, the amount of the overdue note, von den £2,000, the amount of the acceptances, and sent a cheque for the balance only. Liquidators hope to compel these persons to restore the £1,500, with interest. That question stands for decision of the Court next term.

Two of the original directors retired soon after the formation of the Co; 4 others have since retired and become bankrupts; the projector is a bankrupt, and the managing director has compounded with his creditors; the bankers have obtained judgement against the Co. for £10,000; the mortgagees are in possession of the various properties; debts and liab. about £100,000; assets, whether anything or nothing, problematical. Main asset seems to be the uncalled capital, the whole of which the Master of the Rolls has ordered to be called up, and the value of that may be judged by fact that call of £2 p. share in 1866 realised the sum of £110 only. Much litigation has been, will be more in the affairs of the Co. Most of solvent shareholders sold out when they saw what Co. they were in. But they were caught. Most of the shares they sold were bought by Hodges, the projector, to keep up the price of the shares in the market. When the winding up order came, discovered that, though Hodges had bought the shares and had them duly transferred to him, he had never registered the transfers. The names of the former holders therefore still upon the register of shareholders, daher transferred to the official list of contributories. Have their remedy against Hodges, but Hodges bankrupt. Such things impossible, if shares fully paid up and issued „to bearer“.

Aus:
The Money Market Review, 22. August 1868. S. 205.
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Annual Average Minimum Discountrates of B.o.E. since 1856.

1856: £5. 19s. 6d. 1857: £6. 13s. 5d. 1858: £3. 4s. 3d. 1859: £2. s.14 d.10. 1860: £4. 3s. 10d. 1861: 5l. 4s. 10d. 1862: £2. 10s. 7d. 1863 £4. 8s. 5d. 1864: £7. 7s. 0. 1865 £4. 15s. 5d. 1866: £6. 16s. 8d. 1867: £2. 10s. 9d.

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The Money Market Review, 22. August 1868. S. 205.
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National Debt. (1868)

On 31. March 1868: funded debt £741,190,328 und unfunded debt £7,911,100. Endlich die terminable annuities, by which the nation is paying off principal as well as interest. The £26,425,000, the present annual charge for the debt other than unfunded, consists to the extent now of about £4,000,000 a year of these terminable annuities. On 31 March, 1868, annuities expiring in 1885 amounted to £2,883,990; the life annuities sold by the Gvt. and still payable amounted to £973,548, and the annuities for terms of years £53,795; the Red Sea Telegraph Co’s annuity, expiring in 1908, is £36,000; and there are tontine and other life annuities amounting to £28,552. The total is £3,975,885 a year, equal if capitalised to nearly £48,000,000 of debt. This makes the capital of the debt £797,000,000.

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The Money Market Review, 22. August 1868. S. 209.
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U. Kingd. Bullion movement 1867.

Total Value of gold and silver bullion and specie imported into U. Kingdom, 1867: £23,821,047, wovon £15,800,159 gold und £8,020,888 silver.

August 29. 1868.

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The Money Market Review, 29. August 1868. S. 217.
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Railway finance. für 1866 (Board of Trade Return.)

Capital paid up Dec. 31. 1866 (minus money borrowed on Lloyd’s Bonds, or simple contracts.)
Ordinary (without priority of claim on Revenue.) Dec. 31. 1865. £219,598,196 Incr. in 1866: £8,674,433. Total: £228,245,629
Preference. Dec. 31. 1865 £124,263,475 Incr. in 1866: £10,197,623. Total: £134,455,098.
Debenture Stock (Funded Debt) Dec. 31. 1865 £13,795,375 Incr. in 1866: £310,219. Total: £.14,105,594
Debenture Loans. (Terminable Debt payable at fixed periods) Dec. 31. ’65 £97,821,097 Incr. 1866: £7,244,766 Total: £.105,065,863
Grand Total £481,872,184.
Traffic.
Gross Revenue for the year:
1865 1866.
Receipts from all sources £35,800,113 £38,164,354
Working Expenses (Steamboat, Canal and harbour expenses excluded) 17,149,073 £18,811,673
Net Revenue £18,651,040 £19,352,681

Addition to Capital in 1866: Ordinary Stock £8,644,433. Preference: £.10,191,623. Debenture Stock: 310,219. Termin. Dbt. Loans: 7,244,766. Total: £26,394,041

Da 261/4 Mill. capital spent in 1866, while total net revenue from railways only 191/4 mill. £, the business was a losing concern, i.e. nach dieser officiellen Rechnung.


43

5 September. 1868.

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The Money Market Review, 5. September 1868. S. 236/237.
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Grand Trunk Railway of Canada. Meeting of shareholders on 27 August. ’68.

Th. Baring M.P. in chair, so der grosse Watkin angeblich Krankheits halber abwesend. Die Directoren (Watkin, Baring, Hodgson) widersetzen sich dem Wunsch der Railway shareholders gedruckte Register aller shareholders zu haben (so daß sie sich untereinander verständigen können.) Die shareholders überstimmen unanimously these signori directors welche die masters spielen wollen. Bei dieser Gelegenheit bemerkt, daß Watkin, der chairman, 40£ p. Woche Salair bezieht (sehr viel bei dem precairen unpaying Stand der Railway); daß dieser selbe Watkin had the management of 5 or 6 other Cos., for which he received salaries amounting to £5,000 or £6,000 a year (für jede). Another shareholder said: „It was notorious that all the officials of the Co. of Canada were connected with other Cos. whose interests were antagonistic to those of the Grand Trunk, and the result was that the proprietors of the Grand Trunk got nothing.“



12. September 1868.

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The Money Market Review, 12. September 1868. S. 258/259.
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The South African Gold Fields. The Colony of Natal.

Close to the colony of Natal, upon the territory of a chief friendly to England, who desires to place it under English gvt. The gold found in reefs of quartz, for 100ds of miles.

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The Money Market Review, 12. September 1868. S. 265.
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Wheat Importations of 1868.

Wheat Importations of July ’68 below those of July ’67. Yet the total arrivals for the first 7 months of 1868 were 17% in excess of those of the same period 1867. Of the aggregate quantity of 20,706,791 cwt, Russia contributed 26%, U. St. 22%, Germany 16%, Turkey 12%, Egypt 12%, Illyria 4%, Chili 3%, Denmark 1%, Canada 1%, and other countries 3%. The supply from Russia and Germany was considerably less than that of 1867, but great increase from the U. States.



September 19. 1868.

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The Money Market Review, 19. September 1868. S. 276.
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Cotton

At the close of August ’68 „Middling Orleans“, p. lb., 111/4d., „Uplands“ 11d, „Middling Mobile“ 111/8d. At this time last year prices several pence higher for the same articles. Still the minimum nearly double that of period before the American war. At commencement of August ’68, owing to reduced stocks, there was a fair demand and trifling advance in prices, but there were heavy imports, and price of cotton fell again. [»]Towards the close of the month, however, there was a positive advance in value.« Dieß alles small movements. Question, ob cotton must fall definitely much lower? Dieß probable. The quantity of American cotton grown since last war seems to have exceeded all anticipation, and it is mentioned in Mssrs. Leech, Harrison, and Forwood’s circular that Brazilian cotton has been bought as a substitute for American, while East Indian, of which there is now a fair selection, it is gradually assuming a leading position, and will have in a great measure to supply the place of American until the new crop is available. The stock of cotton in this country and at sea is somewhat smaller now than it was  The Money Market Review: last year
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1867
, and consequently for the present existing prices may be supported, aber nicht für Dauer mit den neu geöffneten sources of supply.

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The Money Market Review, 19. September 1868. S. 285.
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Land in Australia. (cultivated)

Land under cultivation in the Australian colonies, according to last returns, 2,500,000 acres, live stock: 600,000 horses, 4,000,000 cattle, 38,500,000 sheep, 400,000 pigs, total of more than 43 Millions head of stock.

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The Money Market Review, 19. September 1868. S. 287.
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Foreign Trade of U. Kingdom for first half years ’68 ’67 und 66.

Imports: 1866 £139,377,961. 1867: £126,558,561. 1868: £128,533,367.

Exports. 1866: £92,857,830. 1867.: £87,613,484. 1868: £84,601,157.

The Exports to Foreign Countries for the first half years: 1866: £66,990,170. 1867: £64,685,265. 1868: £60,851,539. To the Un. States: 1866: £15,228,220. 1867: £11,951,179. 1868: £10,540,940. To British Possessions 1866: £25,867,660. 1867: £22,928,219. 1868: £23,749,618.


44

26. September. 1868.

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The Money Market Review, 26. September 1868. S. 295/296.
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B. o. England. Its capital.

Its capital £14,553,000; it is not banking capital, but permanently invested at a low rate of interest in loans to Gvt. The „Rest“ undivided Profits, which never allowed (nach langjähriger custom) by the Directors to fall below 3 Mill. £. St. Nicht im Kapital eingeschlossen die Buildings der Bank in London (the Bank stands upon about 3 acres of the most valuable land in the City of London), wohl aber die branch establishments in den Provinzen.



October 3. 1868.

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The Money Market Review, 3. Oktober 1868. S. 315/316.
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The Board of Trade Returns.

A.) Exports

For month August 1868

£16,427,597 being £679,328 more than in July (’68) und £1,777,000 more than the average of the 5 months ending mit July.

Total Exports des Jahrs to end of August 1868: £116,777,023, being £4,279,890 or 31/2% less than for the corresponding months of 1867, und £8,488,797 below the total of the 8 months of 1866.

Cotton Manufactures, 371/2% of the grand total of our export trade: Important decline in the value of piece goods of all kinds for first 8 months of 1868, compared mit the same period 1867. End August 1868: (8 months) £32,268,723 against £35,312,134 (1867) reduction of £3,043,411, or 81/2% on the value. But as to Quantities exported: yards 1,900,260,705 shipped to end August 1868, against 1,789,176,406 yards same time 1867, increase of 61/4%. More in quantity, less in value. Difference against us apparently equal to 143/4%. But much of this difference explained by difference in price of material. Z.B. „Middling“ uplands average quotation for this sort at Liverpool von 1st Jan. to 31 August 1868 was: 10.364 d. p. lb against 12.157d. p. lb same period last year. Reduction exactly 143/4%.

Exports of Cotton Yarn: for 8. months end. August. ’68: 114,202,513 lbs, value £9,846,037; increase of 8,484,358 lbs in quantity, and also of £56,995, or 1/2% in value. Daraus folgt daß spinners of cotton yarn only have had – owing to augmented shipments of this article – the advantage over the manufacturers who weave the yarn into piece goods.

Export of woollen cloths etc, during the 8 months, considerable falling off, compared to 1867. Reduction in value: £1,224,164, being 32%, whilst the decline in quantity is only 24%.

Shipments of manufactures of worsted and wool and other mixtures moderate augmentation on the whole.
dtto of Woollen and Worsted Yarns increase over 14%.
Dto Linen Yarns and Linen Piece goods decrease of about 10% in value.
Dto Iron and unwrought steel decline of about 10% in value.
Dto Thrown Silk advanced von £326,128 to £716,999.
So improvements of a few other articles, but not of large totals. Altogether Export of increased quantities at a reduction in values.

B. Imports. (to end of July. Computed real value. Quantities to end August.)

Imports for July 1868: £21,487,632, being £859,075 more than June ’68 und Increase of £1,224,000 on the average of 5 months ending June 1868.

dtto £2,271,789 in excess of imports July, 1867 und £846,068 over July 1866.

Total Imports for 7 months ending July 1868: £.132,283,806, Increase of £3,347,906 gegen same period 1867 und Decrease of £11,260,953 period of 1866. In 1866 the figures much affected by high price of raw cotton.

Imports of Wheat for first 7 months ending July 1868: £15,320,539, being £2,928,440 more than same period 1867.

Quantities of Wheat for August 1868: Improved harvest prospects have checked imports from all parts, and only 2,012,374 cwts were received against 3,287,469 cwts August, reduction of nearly 40%.

Imports of Cotton to end of July 1868: £34,407,467 against £35,769,400 same time 1867.

Dtto Quantity received to end August 1868: Cwts 7,500,221 against 7,391,680 in 1867.

Dtto Quantity Receipts in August 1868: Diminution of 231,000 cwts or 23% against August 1867, falling off chiefly in supplies from British India and Un. States.

October 10, 1868.

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The Money Market Review, 10. Oktober 1868. S. 335/336.
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Influence of Commercial Depression on Railway Revenues.

Depends from what source Revenue of Railway prinicipally depends. 1) Passenger and Mails. Passenger traffic least prejudiced during commercial stagnation. 2) Merchandise and live stock diminished, but to less degree than minerals. 3) Minerals: most affected. This shown by the following list ⦗a railway being described as belonging to one or other class, je nach Proportion worin one of the 3 descriptions prevail in its traffic⦘ of Dividends first Half years 1868 und ’67. Only exception Lancashire und Yorkshire; wo Verbessrung in Folge von spezifischen Umständen, besonders better management. (Sieh den Comparison folgende Seite):|

45
A) Passenger Lines.
Dividend: First Half Year.
1868 1867
South Western 4%. p.a. 33/4%. p.a.
South Eastern 21/4 2
Metropolitan 7 (durch faule means in both years) 7
Brighton shows improvement.
B) Passenger and Merchandise Lines.
London and North Western 51/4%. p.a. 51/4 p.a
Grt. Northern 2 4 1/4 41/2
North British Stationary
Great Eastern shows Improvement.
Grt. Western 11/4% p.a. 11/4 p.ct. p.a.
C) Merchandise Lines.
Lancashire and Yorkshire 63/4 P.C. p.a. 61/2 p.c. p.a.
Midland 5 51/2
D) Merchandise and Mineral Lines.
North Eastern (Berwick) 41/2 p.c. p.a 5% p.a.
Sheffield nil 1
Caledonian 11/2 51/4
Glasgow and Southwestern 41/2 51/2
E) Mineral Lines.
North Staffordshire 21/2 p.ct. p.a 3 P.C. p.a
Monmouthshire 4 5

A much greater falling off has occurred in these 2 last lines. When compared mit 1866 it will be seen that much of the depression experienced in 1867.

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The Money Market Review, 10. Oktober 1868. S. 339.
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London, Chatham, and Dover Railway und Landed Property.

That line one [of] those Southern lines which have doubled and quadrupled the value of property in the districts they have passed through, and nearly or quite ruined themsels. landlord extorts £150, where he previously asked £.50.

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The Money Market Review, 10. Oktober 1868. S. 351.
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The Wool Trade. (Windeler et Bowes. Circular 8 Oct. 68)

Improvement in sales of October. Must have beneficial effect upon trade in interior up to the opening of next sales, on or after 19. November [.] Demand for manufactured goods for export continues limited. So lange not to be expected – as this continues – higher quotations of wool. But we think prices have passed the lowest price point. For the November sales 56,400 bales are here or afloat; further arrivals, chiefly Capes, zusammen mit 35 or 40,000 Bales, held back or withdrawn from last series, will bring total quantity to come forward to nearly 110,000 bales, about same as the corresponding series 1867. Well conditioned, staply wools will be scarce as the selection of Australian includes much of the excessively faulty wool, found unsaleable during August. Capes will form the chief feature, and a large proportion again extra scoured. These lately in better demand. The proportion of medium clothing wool will be large.



October 17. 1868.

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The Money Market Review, 17. Oktober 1868. S. 359/360.
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Royal Bank of Liverpool. Keeping things in dark to make Matters Pleasant. (failure Oct. 1867)

On 24. Jan. ’67 declared dividend of 8%, and reported to shareholders that whole of capital und reserved fund of £75,000 intact. In Oct. ’67, 9 months later, whole of capital and reserve fund lost u.s.w. Harmood Banner, one of the most eminent accountants in Liverpool, tried to hush up, in order to „avoid publicity“. 12 months ago shareholders appointed Comm. of Investigation. At length, Mr. Watson, chairman of that committee, determined to present report; no sooner commenced reading it than interrupted by Banner. (in shareholders meeting convoked to hear the report.) Protested in name of liquidators. Warned them, the revelations in the report would be prejudicial to their interests etc; they might drive several creditors into Bankruptcy Court (während durch Stillschweigen diese Kerls andre beschwindeln und dadurch die Co. zahlen können); in consequence might have to pay other call of £5 p. share. Horsfall M.P. (one of the shareholders) told Banner: „Yes; it is your policy to keep things in the dark, and you have raised yourself to eminence by it; but it will not do in concerns like this.“

October 24. 1868.

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The Money Market Review, 24. Oktober 1868. S. 379/380.
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The Merchant’s Co. (lim.) and the Criminal charge against the directors.

1865 Co. formed to take over the business of Mssrs. Lane, Hankey et Co under the name of the Merchants Co. (lim.) The Prospectus issued in November 1865 with Richard Stuart Lane, Horace Edward Chapman, and Frederick John Helbert Helbert, the partners in the old firm, as directors. The partners undertook to liquidate all the debts and liabilities of the firm. They were to receive £62,500 in debentures and paid up shares of the Co. for the goodwill of the business only; they guaranteed to the shareholders 10% upon the paid up capital for a certain number of years. Total amount of capital paid upon the shares £45,000. In October, 1866, after about 10 months’ existence, the Co. stopped payment. Mssrs Lane, Hankey, et Co. had received from the Co. debentures for £25,000, and shares with £15 per share paid to the amount of £37,500, being the amount to be paid for the goodwill. On 22. August, 1866, a couple of months before the Co. stopped payment, the partners filed a deed of inspection under the Bankruptcy Act, for the winding up of their affairs. The debts of the partnership, as |46 then sworn by the partners, were:

Debts of Lane, Hankey, et Co. £.282,498
Debts of R. J. Lane 69,315
Do. F. J. Helbert Helbert 13,735
Do. H. E. Chapman 6,245
Total £371,793.

On failure of Co., a committee of shareholders appointed to investigate its affairs, mit Chairmen: Benjamin Moore, of Moorgate Chambers, he had 100 shares, on which he had paid 1000£. Committee desired to examine the books of the partnership. But Lane, Hankey, and Co. refused to give up their books, or produce them for inspection. Co. are still in liquidation und die Co. inserted in the list of creditors of Lane, Hankey et Co. for £45,000 and upwards, being the whole of the paid up capital of the Co., of which, it seems, they had become possessed, in addition to the £62,500 for the good will, and in addition also to £10,000 of acceptances which the Co. had given for their accommodation. No dividend hitherto paid under the deed of inspection. Nach 2 J. quiescence der shareholders, Mr. Moore laid certain evidence before the Lord Mayor, and obtained summonses against Stuart Lane, Chapman, and Helbert, under einer Clause des Acts von 1861, for having „unlawfully made, circulated, and published a prospectus etc“. Person guilty thereof, nach diesem Statut, liable, if convicted, to penal servitude for 7 years. On 2 October the defendants appeared, obtained adjournment on ground that an analysis of the accounts was being prepared by an accountant employed by the defendants. On 9. Oct. defendants again appeared. Der Advokat des Ankläger Moore, G. Lewis, jun., declared that nach der Einsicht der analysis des account alles all right, daher Moore als Ankläger withdrew the summons. Vallance (counsel für Lane) und Metcalf Metcalfe (für Chapman und Helbert) „thanked Mr. Lewis for the frank way in which he had acquitted those gentlemen of any fraudulent motives etc“ „freed their clients from imputation“ etc. Andrerseits complimentirten die Sachwalter den Clienten von Lewis als „perfectly honourable gentleman … put forward by other persons behind the scenes, whose real object was to damage his clients“. Lord Mayor jedoch doubted. By a few questions he ascertained that Moore, besides being so perfectly satisfied with „the analysis of accounts“ had stipulated for the payment of the money he had lost. Lord Mayor required „the informations on which he had acted in granting the summons to be read in open court.“ Diese informations on oath filed in this case state ugly facts. Barlow, the colonial manager of the Merchants’ Co. from its formation until stopping payment, had sworn distinctly, that statement in prospectus, that Lane, Hankey et Co had made profits during 6 years previous to 1865, was false, for they were in 1865 hopelessly insolvent, had been so for years, annual losses instead of profits making. He further deposed on oath that on 2nd May 1866, at office of the Co., H. E. Chapman informed him that the firm of Lane, Hankey et Co ought to have stopped payment in 1861; that when he (Chapman) joined them in June 1863, the said R. S. Lane declared there was £65,000 capital in the concern, „instead of which there was £75,000 the other way, and the concern was completely rotten.“

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The Money Market Review, 24. Oktober 1868. S. 380.
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Joint Stock Cos. Parliam. Return on 31st May 1868.

1863: registered 790 Cos., with nominal capital at £139,988,242
1864 997 Cos, with nom. capital 237,437,084
1865 1,0333 1,033 Cos 205,391,818
1866 762 76,824,823
1867 479 31,444,982
1868 von 1st Jan. bis 31 May 203 registered mit £13,896,182 Unlimited Cos. 9.

Objects – Rede von denen zwischen 1st Jan. bis 31 May 1868 [–] so various as possible. Z.B. 1) supplies Colyton mit gas, 2) Poole and Cherbourg Steam Packet Co., 3) Eastbourn Eastbourne Baths and Laundry Co., 4) Liverpool Merchant Tailors’ Co, and so forth. N. 1 (Colyton gas) had at date of last return 19 shareholders, who had taken 73 shares out of £300 created, and yet Co. returned as „still in operation“. N. 2 (Poole and Cherb. Steam Packet) originally 108 subscribers, for 800 shares, representing £4,000 capital, at the last return only 131 shareholders, who had paid upon their shares £1,275. This concern do. described as „still in operation“. N. 3 (Eastbourne Baths etc), described as „having no place of business“, aber nominal capital of £10,000 in 1000 shares. This Co. supposed to be „still in operation“, but „no return“ as to number of shareholders, calls received, calls made, shares taken. N. 4 (Merchant Tailors’ Co) is being „wound up“, which means, we suppose, that it is no Co. at all. Von den 393 (in 1868) 4 are being termed as „wound up“, 5 as „in operation“, 341 Cos. supposed to be „still in operation“. Of the 9 „unlimited“ no account. Hence seem to stand on no better footing than the unlimited.

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The Money Market Review, 24. Oktober 1868. S. 385/386.
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Seignorage on Coin.

In all the mints of the world except England. In Paris mint 2%, Australian mint 7,5 on large parcels, and 10% on small ones; in the Indian mints 1%. In English mint (London) nominally gold is coined free, aber practice of restricting tenders of gold to £10,000 tends to fix a duty of 11/2d. p. oz. – i.e., the difference between coin gold £3. 17s. 101/2d. per oz., und the price paid by the B.o.E. for gold bullion, £3. 17s. 9d. which is equal to 0.16%.

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The Money Market Review, 24. Oktober 1868. S. 387.
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Conversion of Iron into Steel.

Several years since Bessemer carried to successful issue the pneumatic process which bears his name for the manufacture of steel from pig iron. His process demands iron of the first brand, as is unequal to the conversion of iron of inferior quality, charged with impurities of phosphorus and sulphur in large quantities.

Thus, until very recently, no marketable steel has been produced from Cleveland or Northamptonshire pig. Now process patented by Heaton, of the Langley Mill, in the Erewash valley, by which inferior iron made into first class steel, thus utilising for the higher purposes of manufacture vast deposits of ore hitherto condemned to the lowest rank. The process is chemical not mechanical, great economy of time and labour appears thus secured. Nitrate of soda is the agent employed. Tensile and resisting strength of steel manufactured by this method. Saving in cost of production said to be several £ a ton.|

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October 31. 1868.

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The Money Market Review, 31. Oktober 1868. S. 403.
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The Money Market.

Impression of soon rising money value. Recently increase in the number of good bills offering. Partly due to improvement in Iron Trade, which has imparted more cheerful feeling in other equally important branches of business. Foreign and Colonial Loans lately subscribed, having provided an outlet for some portion of the surplus capital, are gradually, if slowly, affecting the money market. There is a decided pause in the Continental demand for English bills, and the movements occurred during the last fortnight in the rates of exchange on France and elsewhere are causing an export of gold from this side, despite the enormous accumulation of the precious metals held by the Bank o. France.

At the turn of each quarter, owing to the payment of dividends and salaries, some large reductions in the reserve and bullion generally take place.

Total coin et bullion Total Reserve of Notes und Coin Proportion p. Cent of Reserve to Liabil. of Bk. Dept. Bank Rate.
Jan. 23. 1867. £18,892,000 £10,973,000 431/8 31/2
April 24. 1867 19,337,000 11,212,000 451/2 3
July 24. 1867 22,772,000 13,769,000 53 21/2
October 30. 1867 22,697,000 13,043,000 517/8 2
Jan. 22. 1868 22,201,000 13,332,000 501/8 2
April 22. 1868 20,527,000 11,587,000 461/4 2
July 22. 1868 20,077,000 12,586,000 487/8 2
Octer. 28. 1868 19,845,000 10,669,000 431/8 2

Vergleich Oct. 28. ’68 mit 23. Jan. ’67, increase of £953,00[0] in total coin and bullion und Decrease of £304,000 in reserve of notes and coin; but on comparing the Reserve mit Liab. des Bank Department – which chiefly guides directors in fixing rate of discount – the relative strength exactly the same. Yet Bankrate of Discount in Jan. ’67: 31/2% und in Oct. 28 only 2%. Culminating point, or strongest position of the Bank, 25 Sept. 1867, when Reserve of the Bk. Dpt. 575/8% of its liabilities. Since then the total coin and bullion, and the reserve of notes and coin have diminished £4,603,000 und £5,371,000 respectively. Verhältniß von Reserve to banking liab. now 141/2% less strong than on 25. Sept. 1867. Vgl. this week’s return mit that of 22 July ’68, coin und bullion have diminished £2,232,000 und Reserve of notes und coin £1,917,000, while Reserve, in proportion to liab., is 431/8% against 487/8%, difference of 53/4%. When the reserve sinks below 33% or 1/3 of its Liabilities, the Bank usually raises its rate of discount.

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The Money Market Review, 31. Oktober 1868. S. 407/408.
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Manufacture of Iron and Steel. Heaton’s Process  Zusatz von Marx.
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(Patents)
.

For many years positive, though scarcely recognized contest, in progress between mechanical and chemical improvements in this department. Half a century ago mechanical progress was represented by the invention of puddling, and its details. Almost simultaneously the discoveries of new metals by the great chemists of the last generation suggested combinations with the ores of iron by which the product was improved. Voltaic and galvanic electricity were resorted to upon theories that had science, if not success, to recommend their trial.

 Von Marx übernommen und zusammengefasst in Manuskript II der zweiten Buchs des „Kapital“ (MEGA² II/11. S. 194.9–15).
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Bessemer process, for producing the best iron and hardest steel. Crude iron contains, in combination, a certain amount of carbon. The Bessemer process decarbonises the metal by forcing through the converting vessel, in which it is fluid, powerful jets of atmospheric air, the oxygen in which produces combustion of the carbon contained in the iron. The result is intense heat, and the production of steel ready to be poured into the ingot moulds. Process defective in 2 respects. It does not wholly supersede puddling, nor does it, in the case of the poorer ores, get rid of the sulphur and phosphorus they contain. Only, particular ores can be relied upon to produce unexceptionable metal by this process. Puddling unless perfectly efficient, will yield a product comparatively fibreless. In fact, iron is being constantly produced to which it would be impossible to give any fibre. Bessemer process owes its efficiency as much to the quality of pig iron used as to the speciality of operation.

 Von Marx mit Auslassungen übernommen in Manuskript II zum zweiten Buch des „Kapital“ (MEGA² II/11. S. 194.16–30).
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Heaton’s process does not exact the absence of sulphur and phosphorus. Crude iron is converted at once into wrought iron and steel, whatever the impurities it contains, and it supersedes altogether the process of puddling. This done, not by the mechanical application of atmospheric air, but by the chemical effect of nitrate of soda in the „patent converter“. A mixture of crude nitrate of soda, with siliceous sand, being introduced into the converter, a reaction speedily commences. Nitrous flames escape, with copious fumes produced by the escape of steam, that carry away in suspension a portion of the flux. Then follows an intense deflagration; and, when all is over, and the converter emptied of its contents, the produce of steel is found to have its impurities eliminated, while carbon reduced to requisite proportion. The chemical operation is this: The nitric acid in the nitrate imparts oxygen to the impurities in the iron, and converts them into compounds with the sodium, and they are carried off with the sodium in the slag. The action of the sodium is a great advantage over the oxydising methods in common use.

The wrought iron produced by the process in presence of Prof. Miller bore a rupturing strain of 23 tons per □ inch and an elongation of 1/4 of its length; and the tilted steel bore a tensile strain of 42 tons per □ inch and an elongation of 1/12 of its length; while the appearances of the fractures were uniformly fibrous. Some hard tools have been made of the steel and also of the iron, the tests of which were very severe, but which they bore with perfect success.

By superseding puddling, great saving effected in labour and cost of plant; by the power it gives of using crude iron from the ores richest in impurities, manufacture can be carried on in situations where otherwise it would be impossible. Superior article at cheaper price. Wichtig für railway, shipowners, armour plated navy etc[.] The cost of the converters and the means for carrying out the process absolutely inconsiderable in relation to the results obtained.

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The Money Market Review, 31. Oktober 1868. S. 418.
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The Premium of gold at New York. (Circular of H. Clews et Co. of New York. d.d. October 14.)

Tendency of gold premium strongly downwards, the price this week having touched 1371/8 against 1441/2 at date of our latest advices. Absorption of the large amount of bonds sent abroad 2 and 3 months ago – being contrary to general expectation, and having settled an adverse trade balance threatening to call for a heavy export of gold in addition to our previous unprecedented shipments – has revived the old reliance upon shipment of bonds for the settlement of adverse foreign balances. This unexpected foreign demand for bonds, together with the present upward tendency of quotations abroad, induces expectation that the large amount of interest payable to European bondholders on November 1 will be, to a large extent, covered by remittances |48 of bonds, which alleviates another source of misgivings as to the adjustment of our foreign balances. Hence vigorous reaction from the late upward speculation (nämlich auf Steigen des Prämium on gold). Dazu prospect of unusually liberal shipments of wheat and corn to Europe late in the season is also steadily making itself felt.



November 7. 1868.

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The Money Market Review, 7. November 1868. S. 423.
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Money Market.

Trade so bad with stagnant money market that revival in demand und even increase in Bankrate now welcome as a signal of relief. Discount Houses acting at present with great caution, and refuse to take long paper at anything like the rates current a week ago. Preference given to short bills, the rates for which have been less affected during the week than those for bills having 4 or 6 months to run. Evidence of increased demand for money besonders reduction at B.o.E. of £1,298,000 in the Private Deposits.

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The Money Market Review, 7. November 1868. S. 424.
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Board of Trade Returns.

Exports of British and Irish Produce.
1866 1867 1868
For Month September £16,671,078 £16,145,584 £16,927,000
Excess of £782,000 über Sept. 67 und £256,162 über September 1866.
Total Exports für 9 mths. end. Sept. £133,704,000, being Less £3,498,000 than 1867 und £8,232,000 1866.

The Exports of Sept. 1868 exceeded the average of the 5 previous months by £1,856,000, or 121/2%; and each of the last 3 months gives a fair increase on the preceding month.

Imports. Computed Real Value.
1866 1867 1868
For month August £22,480,009 20,748,046 20,278,000
Total Imports for 8 months end. August. £152,562,000
Increase on same period 1867 of £2,878,000
Decrease on same pd. 1866 of £13,463,000,
the chief fluctuations being in cotton and wheat.

Receipts of Wheat only for 12 months end. August 31, 1868: cwts 36,333,087 or 8,384,559 qrs – increase on the preceding 12 months of 263/4%. For September 1868 (first month des neuen Herbstjahrs. Von 1 Sept. bis August 31 immer) decrease in the imports 353/4 on same time 1867.

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The Money Market Review, 7. November 1868. S. 428/429.
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Cotton Trade.

It is unfortunate that this trade should be rendered more risky and hazardous by the intervention of a class of mere speculators, who, coming between the merchant and manufacturer, have not a true or legitimate interest in its welfare or stability … the class of transactions so often observed in Liverpool … are not improperly described as gambling. Erhöhen und vermehren obviously die Preis fluctuations. … The high prices of the last 5 or 6 years have restricted the sales of goods in every market, and been the means of adding to the number of mixtures, composed of cotton and other fibres, which will for the future compete largely with mere cotton goods.

The cotton circulars of October contained the completed statistics of the American crops for the season 1867–68, taken from recent New York papers.

Grand Total of cotton growth in Un. States. (round numbers)
1867–1868 bales 2,577,000 Increase over 10% compared mit 1866–67.
1866–1867 2,329,000
1865–1866 2,329,000 but hierin included a quantity belonging to 1861–65, of which no records were taken.
1868–1869 Estimates vary from 2,500,000 to 2,700,000 bales.
Present state. (Circular of Leech, Harrison, and Forwood.)
October 31. 1868. Bales. Oct. 31. 1867. Bales
Stocks in Liverpool, London, Havre. 628,875 against 809,489
At Sea for these ports. American 29,000 21,000
East Indian etc 289,513 191,750
Total Stock in hand and at Sea 947,388 1,022,239

These figures shown trifle against this year, but are not sufficient to warrant the difference shown in the quotations, which are „Middling“ Orleans 111/4d. p. lb Oct. 68 against 9d. p. lb Oct. 67 und „Fair“ Dhollera 81/4d. (Oct. 68) gegen 65/8d. (Oct. 67) American cotton may be considered statistically of strong position, since 2/3 of the deficiency in the Liverpool stocks of that description. The supplies, however, known to be on the way, not only of American, but other hands, larger than at this date last year. Moreover, the accounts given in the Manchester trade circulars of gloomy character; resort to „short time“ spoken of as inevitable.|

49

It is significant that the spasmodic upward movements in cotton so frequently of late have had no effect and received no response or encouragement in the markets for manufactured cloth, either in this country or abroad. In fact, the Manchester quotations for cotton goods, despite an advance of about 25% on the raw material as compared with 1867, are now (as stated by Mssrs. G. Fraser, Son, and Co.) unchanged, or only nominally dearer than those ruling 12 months ago, so that the whole difference is practically lost by the trade.

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The Money Market Review, 7. November 1868. S. 435.
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Cotton. Liverpool Market. Nov. 6. (’68)

Rise of 1/8 to 3/8d. p. lb. Sales of week 121,500 bales, davon 26,500 taken on speculation, 26,750 for Exportation. Imports 40,000 bales. Miserably unsatisfactory accounts from East. On 28 Oct., with Exchange 1s. 115/8d., prices from Bombay for an 8–4lb. Shirting net home only 9s. 2d. p. piece, and from Calcutta 8s. 9d. p. piece, showing a loss on the present unrenumerative rates.

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The Money Market Review, 7. November 1868. S. 431.
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Winding up Companies in Chancery.

The Official Judicial Statistics for 1867 show 110 orders were brought into the chambers of the Masters of the Rolls and Vice Chancellors for winding up Cos. List of contributories were proposed, from which 357 names were excluded; 9,343 persons were included in the lists. Calls were ordered in the year amounting to £4,497,831. Dividends were ordered to be paid to £7,310,339. The calls made in 1866 were £1,810,834.



November 14. 1868.

Aus:
The Money Market Review, 14. November 1868. S. 449/450.
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The Council of Foreign Bondholders.

 Kommentar von Marx. Siehe Sigismund Borkheim an Marx, 11. November 1868; Marx an Collet Dobson Collet, 19. November 1868.
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Dieser Schwindel unter Baring’s Anstiftung. Isidor Berlinerblau Gerstenberg vorgeschoben als Mauerbrecher.

 In der „Money Market Review“ konnte keine entsprechende Passage ermittelt werden. Möglicherweise handelt es sich um Marx’ Zusammenfassung einiger Argumente der Schrift von I. Gerstenberg: Suggestions for Forming a Council of Foreign Bondholders. London 1868. S. 16–19. Marx erhielt diese Schrift von Sigismund Borkheim am 11. November 1868. Für eine Marx’sche Einschätzung der Broschüre siehe auch die Briefe von Marx an Collet Dobson Collet vom 19. und 23. November 1868. Der Zusatz in Klammern stammt indes von Marx; siehe dazu Marx an Collet Dobson Collet, 2. November 1868. Auch der im letzten Satz geäußerte Zusammenhang lässt sich nicht bei Gerstenberg nachweisen.
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Angeblicher Zweck: durch pressure upon British Gvt. die Foreign Gvt., die Schulden bei Engländern contrahiren, zum Zahlen zu zwingen (Also, auf Rußlands etc Anstiftung, England in French War zu verwickeln) Ausserdem: An office for the promotion of investments of British Capital abroad. Schließlich: Mittel der Speculation für die grossen Finanzschwindler.

Austria has taxed foreign debt 16%, Italy 8%.

In the last few years we have entered into extensive loan operations with Mahommedan nations, which have got over their objection to the principle of borrowing abroad. Turkey and Egypt now pay millions a year in interest; Morocco has given a mortgage upon her resources; and Tunis has already become insolvent. In this respect the East has profited by the instructions of the West, and we have been almost startled at the rapidity with which a debt has been scored up. Peru deals in loans with vast sinking funds. New Granada gives land to those who themselves never will or can occupy on one acre. Russia grants a State guarantee to lines mortgaged as security. State after State issues loans below par with the varied inducements that appertain to drawings.

In the cause of time many circumstances indispose the issuing houses to act in favour of the holders of a loan.  Kommentar von Marx unter Bezugnahme auf Informationen aus dem Brief von Sigismund Borkheim an Marx vom 11. November 1868. Siehe auch The Money Market Review, 14. November 1868. S. 457.
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⦗Und darum, die issuing houses, Baring, Bonar, Thompson etc die instigators und leading members des proposed Council⦘.
Many recent loans have been issued on Commission. The issuing firms are in such cases to be regarded rather as having for clients the Governments on whose account they act than the public whom they invite to subscribe. Other houses frequently act as the official agents of the loan-contracting Gvts. In fact, the relations commonly established between the issuing houses and the Gvt. for which a loan is made may be looked upon as leading to arrangements under which forbearance in case of difficulty is inevitable.

Aus:
The Money Market Review, 14. November 1868. S. 451/452.
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Heaton’s Direct Process for Nitrate Steel.

Heaton of Langley Mills, near Nottingham. His operation, based upon true chemical and metallurgical principles, calculated to supersede  Von Marx übernommen in Manuskript II zum zweiten Buch des „Kapital“ (MEGA² II/11. S. 194.31–32).
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the mechanical appliance appliances which involve the outlay of large capitals
, whilst the poorer ones cannot be made available at all. Practical man daher gegen die Sache, theils überhaupt against improvements as innovations of no practical use, theils speziell wegen der „Disturbance of establishments in which fortunes are invested“. Daher die Intriguen (der Bessermeriten) gegen Heaton. Ein Contemporary – „Engineering“ (of 7 Nov. 1868) macht daher allerlei lausige Bedenken. The crude steel produced by the use of nitrate of soda is described as of extremely crude quality, containing hardly more than 97% of pure iron, and nearly 2% of carbon.

Falsch. The crude steel contained a good deal less than 2% of carbon; and, when it was converted into steel iron, less than 1% of carbon. „Engineering“ has omitted to state what amount of sulphur was removed by the process, while, if any phosphorus was left in the crude steel, it was obviously not such as to injure the quality. „Engineering“ next says that phosphorus and sulphur are removed in puddling steel, and that the puddling process is cheaper than the use of nitrate. Statement incorrect. Besides, the great waste of iron in puddling omitted from the calculations. The commoner ores, fullest of the impurities of sulphur and phosphorus, have not all their phosphorus and sulphur removed by puddling. They cannot be removed by mechanical operations only.

Only the purest ores are available for the Bessemer process. The Heaton supersedes puddling altogether, thus supersedes much expensive labour, utilizes the poorest ores, deprives them of their impurities more effectually than manualwork, with little or no waste of metal in the operation. Another allegation is that nitrate steel is not more uniform in quality than puddled steel. But it is uniform; puddled steel extremely inequal in quality, taking large quantities. With respect to the proportion of slag to the yield of crude steel, Prof. Miller calculated that the maximum could not have exceeded 23% of the weight of the molten metal experimented upon, so that the 12.6% of iron in the slag could not be more than 3% of the iron operated on. Mr. Heaton has since ascertained by direct experiment that the quantity of slag produced is but 1/3 of the amount estimated by Dr. Miller as the possible maximum; but, then, Heaton no longer uses an admixture of lime. The percentage of iron lost in conversion does not, therefore, exceed 1%.

Then „Engineering“ speeks of the cost of Nitrate of soda. In certain countries its supply boundless. Merchants and shipowners are not the men to neglect an article for which there will be good demand. If dear, only temporary. Its cost; cost, besised besides, fully compensated by the smaller |50 capital required in the first instance by way of plant und die suppression of a most costly and painful labour, out of which most of the difficulties of ironmasters with their men have arisen, and in the use of the impurest ores. Heaton’s processes are an advance in iron and steel manufacture, equal in interest to puddling process and Bessemer’s process.

Aus:
The Money Market Review, 14. November 1868. S. 452.
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Cotton Trade. (Circular of Stokes, Mc Haffie et Co)

At this period last year (1867) there was a far larger margin between price of cloth and cotton than now exists, and yet cotton fell 15 to 20% before the end of the year.

Aus:
The Money Market Review, 14. November 1868. S. 453.
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Invention patented by W. T. Read, Old Broad street, City, for the better application of bisulphite of lime in brewing Trade.

This stuff used now largely in brewing trade to control fermentation and prevent acidity etc. Saves large amount of labour (Read’s process) performs so process, till now clumsy, perfectly. Our annual exports of beer and ale now nearly 2 Mill. £. St.

Aus:
The Money Market Review, 14. November 1868. S. 453.
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East India Irrigation and Canal Co.

Arrangements made between its directors und Secretary of State for India (subject to confirmation at a meeting of shareholders) wodurch the Co’s undertaking in Orissa to be surrendered to Gvt. in consideration of sum in cash equal to the whole paidup capital and 5% interest thereon (so that each shareholder will receive 1£ Premium on 20£ paid upon each share) and also £50,000 to cover compensation to the managing body and officers.



November 21. 1868.

Aus:
The Money Market Review, 21. November 1868. S. 467.
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Money Market. Rise in Bankrate of Discount.

From 2%, fixed on 25 July 1867, raised to 21/2% on 19 Nov. 1867. Anlaß dazu: The unprecedented withdrawal of 1 Million £ in gold for shipment to Russia.

A 2% Rate has now existed at 3 different Periods:

Rate of 2% und Dauer derselben.
1st Period. von April 22, 1852 to January 6, 1853 37 weeks
2nd Period. July 24, 1862 to October 30, 1862 14 weeks
3rd Period. July 25, 1867 to Nov. 19, 1868 69 weeks, 5 × that of ’62 und almost 2 × that of 1852.

This 2% rate (25 Jul. 1867 – 19 Nov. 1868) has lasted longer than any other Bankrate since Act of 1844:

Discount Rates since Act of 1844 lasting without interruption for more than One Year:
2% for 69 weeks ending Nov. 19, 1868
21/2 P.Ct. 58 weeks Oct. 16, 1845
21/2 P.Ct. 57 do. Dec. 26, 1850
3 do. 55 do. Nov. 22, 1849
3 do. 53 do. Jan. 1, 1852

The higher the rate is carried and the longer it it is maintained in that position, the surer reaction to the other extreme, and the longer it must prevail:

Crisis Rates and Reaction and lasting of Reaction Rate.
Prior to 1847 a higher point than 6% never known.
Crisis of 1847: 8% for 4 weeks. Followed by continued decline until 22 Nov. 1849, when 21/2%; in force for 57 weeks.
Crisis of 1857: 10% for 61/2 weeks, then gradual reduction to on 9 Decemb. 1858 to 21/2%; which lasted only 20 weeks.
Crisis of 1866: 10% for nearly 14 weeks, reduced to 3% in less than 6 months, und 2% within a year, lasting for 69 weeks.

Vergleichen wir Bank o. England mit Bank o. France this week, so finden wir:

Bank o. England.
Decrease of coin and bullion £1,002,191
Increase in Discounts and Loans 556,817
Decrease in active circulation 447,215
Es ist hier Increase des Verleihns von Kapital und Decrease in active Circulation; Notes withdrawn for gold for Export.

Bank of France.
Decrease of coin and bullion £449,494 Issue: £46,506,627
Decrease in bills discounted 13,423 do. 18,627,382
Increase in Notes in Circulation (Issued 54,170,814): 246,216 Hier also mit Decr. of Capital loan und Decr. of Bullion, Increase in Note Circulation.

Die Increase der Notes in Circulation der B.o.F. trotz Decrease of Bullion und Decrease des Discount Business, erklärt durch Decrease of Private Deposits und Treasury Balance, as seen by:

Private Deposits. Summe: 12,952,484 Decrease: 467,684
Treasury Balance: do. 6,971,087 Decr. 142,610|

51

Aus:
The Money Market Review, 21. November 1868. S. 467/468.
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U. Kingd. National Income and its Resources.

A.) Customs.
Tobacco (40 mill. lb unmanufactured Imported) nearly 61/2 mill. £

Sugar. Refined and unrefined (The Grocers’ Duty) u. stuffs worin sugar ingredient

5,765,501£ St.

Unter diesen Zucker Artikeln „glucose or vegetable syrup“ £2,722. Almond Paste: (40 lbs imported) 0. Dried cherries. 3£ only. 2 pound of comfits for children, paid 0.

Marmelade: 5£. Preserved Plums: £4. Ridiculous customs, do not defray their cost of collection.

Tea and coffee (raw and roasted) chicory (raw or kiln dried)

Cocoa and its husks and shells, and its paste or chocolate

£3,359,590.

Spirits and articles containing spirits (spirits sweetened, unsweetened, but mixed, chloroform, collodion, ether und varnish containing alcohol) £4,301,620 (Chloroform only £70, ether 54l., collodion £8,  Kommentar von Marx.
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ridiculous customs
)
Corn and grain £883,941
„Dried Fruits“ including currants, figs, plums, prunes, raisins £421,740
Importations of malt and its products with their substitutes £3,709
Gold and Silver Plate £4,250
Playing Cards £376
All customs in year ending March 31, 1868 £22,808,140
do do 1867 22,355,859
do do 1866 21,356,723
B) Excise Duties or Inland Revenues.
Duty on chicory somewhat over £21,000, aber auf:
Duties on  The Money Market Review: spirituous
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spiritual
drinks. (inclusive customs)
From Foreign Spirits £4,301,620
Wines 1,500,000
Malt 6,575,263
Home made spirits 11,346,181
Brewers’ licences 357,000
Maltsters’ do. 15,884
Dealers. do. 1,000,000
Total

£25,095,948

If we add 61/2 Mill. £. from Tobacco, 331/2 Mill. l. derived from drinking und smoking.

Railway Duty. „5% on sums received for conveyance of passengers“ £485,136
Stage Carriage Duty of 1 farthing for each mile travelled £35,857.
Hackney Carriage Duty of 7s. p. week, or 6s. p. week if not used on Sundays £103,153
Licences to makers of playing cards £16
do. to sellers of same £1,066.
Licence to kill game £150,949
Licences on dogs upwards of £400,000
C.) Stamps.
Stamps on deeds etc £1,620,426
do. On Probate of wills and letters of administration £1,771,832
do. On Legacy and Succession to Real Estates

£2,894,380

The income from the succession to real estate still utterly disproportioned to that derived from legacies of personal estate, and returns of these duties still mixed up and confounded with the legacy duty in order to conceal that disproportion.

Total of stamp duties £9,737,573.
D.) Taxes.
Landtax (other tax under the cover of which landowners escape payment of their fair quota) £1,106,695
Inhabited House Tax £1,068,984, almost as much as land tax.
Income Tax £6,287,079
2) Property and Income Tax under Schedule A (lands, tenements etc) £125,070,065

3) Income Tax under Schedule D (trades, professions etc)

Both are rated alike at 5d. in £.

£158,052,628.
Aggregate Amount of Inland Revenue.
Excise £21,323,848
[Stamps] 9,737,573
[Taxes] 9,752,561
£40,813,983
 Bemerkung von Marx.
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(turnover.)
|52
Inland Revenue: £40,813,983
Customs: 22,808,140
Post Office: 4,558,962
Total: £68,181,085.
Aus:
The Money Market Review, 21. November 1868. S. 472/473.
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The East India Irrigation and Canal Co.

 Zusammenfassender Kommentar von Marx.
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The alternative: Government takes the Orissa undertaking (see p. 50) oder die shareholders müssen verdammt blechen.

The Indian Gvt. has been forced by public opinion to give a great expansion to the practice of irrigation. As a rule better that the Gvt. should be the direct seller of the water, because it can adapt the price to the charge made for the land in such modes that the cultivator will be obliged to take the water. It was clumsy contrivance that Cos. with unguaranteed capital should first sell the water to the Gvt., and then the Gvt. to the cultivator. In the event of a failure of crops from want of irrigation, the Gvt. thus escaped its responsibilities. The Gvt. policy not always consistent in the matter of the Orissa works. At their commencement, and for some time afterwards, the Co. received the cooperation of the Gvt., which was cordially rendered. But, whether from the growth of conviction that irrigation ought to be the sole work of the Gvt., or from the feelings excited in consequence of the failures in the crops having produced famine, this cooperation began to be given in a perfunctory way, and at the present time it cannot be calculated upon. The East India Irrigation Co. has a right to complain of this change. But, on the other hand, the Gvt. complain of the delay which has occurred in the execution of some of the works undertaken by the Co., and forming part of their whole scheme; because, after all, the ultimate responsibility of disaster from the state of crops falls upon the executive. Before matters arrived to this point  Zusatz von Marx.
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(wo Gvt. offers to undertake the whole)
the directors reported to the proprietors that the completion of the several sections of the Orissa works would cost £1,500,000. But early in the present month the chief Engineer in India reported that £420,000 must be added to this estimate. The capital of the Co. being £1,000,000, it follows that £920,000 more required before the works undertaken can be completed. Though an area of acres 700,000 would be irrigated by this expenditure, the works could not be completed without the money, and, meanwhile, the call for their completion is urgent, under a sort of pressure impossible to resist. The directors applied to the shareholders to supply new capital, but subscriptions little more than £70,000, the payment of which extended over 4 years, while the balance of unexpended capital in England had been reduced to £33,000. Demonstrated by this fact that further share capital not to be raised.

Aus:
The Money Market Review, 21. November 1868. S. 474.
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The Board of Trade Returns and the Trade of the Country. Sept. ’68.

The Board of Trade Returns show improvement in September ’68, as compared with same month ’67 and ’66, but the great bulk of our export trade, consisting chiefly of the staples of Lancashire, is not only not flourishing, but the reverse. It has been so ever since the great fall in values, since the termination of the American war. There has no been no continued healthy trade with our Eastern markets since the Indian mutiny. The profits realised during the American war were spasmodic and unnatural, and the immense fortunes then accumulated, have since all been more than lost, and have been succeeded in Lancashire by a period of reverses unknown even during the cotton famine. Estimating all the charges upon shipments to our Eastern markets upon the most economical scale, and they are favoured by the low rates of freights now ruling, the prices obtainable at all the ports show a considerable loss of shipments now made, and there is no experience to show that the present is a less favourable time for ventures than any previous time of this year.

The present position of manufacturers is almost ruinous, as a profit upon production is rendered impossible from the high rates current for the raw material; and so hopeless seems the prospect of relief by a real improvement in the demand that shorttime working is universally admitted to be the only means of bettering their condition, an alternative never necessary in ordinary times, and only resorted to at the last extremity.

Question: If the trade is an unsound one, why are the returns not only kept up, but increased? The answer is: Chiefly for financial purposes. There being no healthy demand for consumption, the new and increased exports are for the purpose of providing for previous engagements falling due. A good portion of the trade is also contributed by producers, who, being unable to find a market for the whole of their production, and being too poor to hold, consign the remainder, upon which they are accommodated with partial advances through the commission agent or intermediate man, who knows that someone must suffer, and provides on the contingency not falling upon himself.|

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Aus:
The Money Market Review, 21. November 1868. S. 479.
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Import of Corn.

The Board of Trade now add to their usual monthly return a table showing the quantity of corn and wheat flower imported into the U. Kingdom between harvest and harvest, viz. in the 12 months, from 1st September to 31st August.

Import in 12 months ending 31st August 1866 equal to qrs 16,365,738: = (62,881,908 cwts.)
31st August 1867 qrs 16,423,923 = (63,186,726 cwts.)
31 August 1868 qrs 16,904,737 = (66,241,042 cwts)
31 August 1868 thus constituted. 36,333,087 cwts of wheat = 8,384,559 qrs.
3,149,815 cwts of wheat flower = 908,601 qrs.
5,583,086 cwts of barley = 1,563,264 qrs.
8,584,365 cwts of oats = 3,121,587 qrs.
999,118 cwts of peas = 222,026 qrs.
2,289,655 cwts of beans = 534,253 qrs.
9,301,916 cwts of Indian corn = 2,170,447 qrs.
Import of Wheat was:
Year ending 31 August 1866: 24,926,789 cwts = 5,752,336 qrs.
31 August 1867: 28,658,336 cwts = 6,613,541 qrs.
31 August 1868: 36,333,087 cwts = 8,384,559 qrs.
Aus:
The Money Market Review, 21. November 1868. S. 468/469.
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The Foreign Settlements on the London Stock Exchange.

Twice a month a settlement of the previous fortnight is made upon the Stock Exchange. On those days securities to the nominal value of at least 40 millions are handed about. „Handed about“ is indeed to too mild a term to describe the treatment to which, in the pressure of an „account“, the property represented by foreign bonds is subjected. The whole settlement has to be „got through“ before half past 2 in the afternoon. By Stock Exchange law a buyer is bound to pay for all bonds delivered to him up to that time, and when the half-hour has struck the seller can make no further claim for payment during the day.

 Zusatz von Marx.
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Money Market Review citirt Pamphlet (1868) eines Stockbroker’s über diesen diabolischen settling day:

„The enormous increase in the number of foreign loans recently negotiated or introduced in this country, and the small denomination of the bonds into which it is the modern practice to divide them, have multiplied the inconvenience and risk attending the present mode of settlement to so great an extent that it is believed no time should be lost in devising an adequate remedy. At present, after the clerks have reduced the account as much as possible in the limited space they have at their disposal, the balances remaining open are settled by delivery from A to B, from B to C, and so on, till the ultimate buyer is reached, so that the same bond frequently passes through 30, 40, or even 50 hands. To prove that this is no exaggeration we have only to look in busy times at the names on the back of a ticket in Consols, or in any of the principal Railways. These will be found frequently with 50 names on them. One result is that transactions, which could probably be adjusted by the passing of cheques to the amount of perhaps 2 or 3 millions £, involve now settlements to the average amount of 13 millions, as the figures of the Clearing House show. This value of 13 millions, however, represents but a portion of the total values passed under the present system; each of the leading jobbers’ office is, in itself, a small clearing house; a large delivery of Turks, f.e., made to him on the one hand, might and is often compensated, by a counter delivery of Italians on the other side. It is impossible to arrive at the amount of stock actually passed on the settling day, but the experience of the writer’s own office shows that the nominal amount of stock passed exceed exceeds, by 3 or 4 ×, the cash balances adjusted.“

The hurry and confusion which attach to this system are therefore due to the fact that all bargains are adjusted between each actual buyer and seller, although the same bonds may have changed ownership many times during the „account“. Common sense would suggest that this cumberous plan might be obviated, as is done in the transfer of registered securities, by placing the original seller and the ultimate buyer in immediate communication. But in the Stock Exchange, as in all other businesses, the credit of individuals differs largely, and the broker who deals readily with one firm in £100,000 stock might be chary of dealing with others in £100. Brokers who transact large operations naturally object, therefore, to forego the security they have in dealing with first class firms, and do not care to accept payment instead from individuals of whose standing they are ignorant. This difficulty might be avoided by adopting the ordinary course of procedure in bill transactions – viz, rendering each endorser personally liable. Such rule once established, the first broker on the Stock Exchange could have no objection to accept the „name“ or „ticket“ of any member, knowing that in case of default of the ultimate buyer, he would have immediate redress from the parties to whom he originally sold, and with whose endorsements he accepted the ticket.|

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28 November 1868.

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The Money Market Review, 28. November 1868. S. 491/492.
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The recent Advance in the Money Market.

 Zusatz von Marx. Mit dem „lausigen Vorfall“ ist die Erhöhung der Diskontrate der Bank of England von 2% auf 2,5% gemeint.
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In Bezug auf diesen lausigen Vorfall giebt die Money Market Review folgende Zusammenstellung:

Bank of England discount
Quarter ending Septem. 27, 1865. Quarter ending Sept. 30, 1868. Qr. endg. Nov. 25, 1868.
Public Deposits £5,968,000 £3,948,000 £5,428,000
Private Deposits 14,652,000 20,529,000 18,103,000
Private Securities 21,577,000 16,671,000 16,662,000
Gvt. Securities 10,389,000 14,252,000 15,075,000
Reserve of Notes et Coin 7,309,000 12,062,000 10,013,000
Proportion P.Ct. of Reserve to Banking Liabil. 341/2 481/4 411/2
Total Coin and Bullion 14,571,000 21,396,000 18,257,000
Active Circulation 21,912,000 24,334,000 23,243,000

5 December 1868.

Aus:
The Money Market Review, 5. Dezember 1868. S. 523.
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East India Irrigation and Canal Co.

Auf meeting der shareholders (London, 28 Nov. ’68) sale of the transfer of the Orissa undertaking to the Indian Gvt. beschlossen (cf. p. 52)

Aus:
The Money Market Review, 5. Dezember 1868. S. 515.
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Money Market. Fresh rise in the Bank Discount Rate von 21/2 to 3%. (Dec. 3. 1868)

Stets, after a lengthened period of monetary ease, the first movement upwards, particularly when limited to 1/2%, is insufficient.

1852–53 … 37 weeks of 2% followed by 21/2, which, as at this time, lasted only for a fortnight, when advance to 3%.

1862 … after 14 weeks of 2% the directors of the Bank moved to 3% at once

1859 1857: Reaction in the value after 10% carried the minimum down to 21/2%, for 5 months: then 31/2%, for 1 week; then 41/2%

1866, at beginning, after 27 weeks of 21/2%, rise to 3%, followed in 12 days by further movement to 3 4%.

After the reaction during the first 6 months of 1865, the advance from 3 to 31/2% was succeeded in a week by 4%.

The fact is, that no sooner is the monetary „screw“ turned, than merchants and others under engagements become still more anxious, as a matter of caution, to place themselves in funds. Hence the upward movement receives a further temporary impetus. Ferner: At this time of the year, the tendency of the rates of discount at the present period of the year is always almost towards firmness. Some of the banks help the market up by following the very absurd practice of restricting advances in order to show large reserves in their forthcoming reports. Customers also assist the movement by seeking discounts for the mere purpose of increasing their balances at the close of the year.

Aus:
The Money Market Review, 5. Dezember 1868. S. 531.
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Financial Affairs (U. States) (Circular of H. Clews et Co. New York)

Our produce exports continue to fall below those of last year, while our current imports exceed those of that period (1867). The importers have to a very unusual extent deferred their payments, so that remittances for the next few weeks must be heavy, and the more so as 12 Mill. $ to 14 Mill. $ have to be remitted against the coupons of foreign bondholders. Our foreign merchants are extensively „short“ in gold, having sold in anticipation of a decline to follow the elections and the active forwarding of the cotton crop. Advices from Europe indicate the probability of higher rates of interest at the Banks of England and France; which would check the demand for our securities abroad, and tend to attract gold in that direction. It may be owing to that tendency that so few of our bonds are going out in return for the November coupons.

12 December 1868.

Aus:
The Money Market Review, 12. Dezember 1868. S. 544.
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Bessemer versus Heaton.

Bessemer attacks Heaton in Money Article of Times of 2nd Dec. On 5 Dec. testing at Kirkaldy’s, when half inch bars of steel made from N. 4 Middlesborough pig stood an average of strain of 53 tons to the □ inch.

19 December 1868.

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The Money Market Review, 5. Dezember 1868. S. 567/568.
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Shareholders.  Zusatz von Marx.
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(Frauds of Directors in voluntary „Windings’ up“.[)]

During the last 3 or 4 years shareholders in Railway and other Jt. Stock Cos. robbed and defrauded to extent of many Mill. £. St. In a great number of cases the robberies and frauds unequivocal and indubitable. The fleeced victims have been able to discern, in the light of subsequent events, how the frauds were perpetrated and who were the perpetrators. They have not only known how much they have lost, but also who has got it. They have seen many of the persons by whom |55 they have been defrauded suddenly becoming rich, and madly rushing into all sorts of questionable speculations … The money thus transferred from the unfortunate class of shareholders to the more fortunate class of promoters and directors, has been so transferred in too many instances by fraud and falsehood, by deceit and misrepresentation, and the means by which the fraudulent transfer has been effected are equally well known. But where are the laws that define the crimes and award the punishment? where the prosecutors who should enforce the laws? … With regard to the numerous frauds upon Jt. Stock Co. Shareholders which the events of the last 3 years have brought to light, and which involved many 100ds of delinquents, only some 3 or 4 prosecutions have taken place, and only 3 or 4 of the culprits have been convicted, while of those convicted two were speedily released from further deserved punishment by the Queen’s Pardon. Even her Majesty, who never dreams of pardoning a thief or burglar, or common swindler, is made to seem to sympathise with the sufferings of culprits whose crime is swindling and defrauding 100ds or 1000ds of hapless shareholders.

Individual shareholders standing alone are but individual units – helpless and defenceless, as regards any combination that may be formed against them. Promoters and directors know this; and, knowing it, combine together to take advantage of it – and invariably succeed. The Joint Stock Co. shareholder is essentially a selfish animal. … The number of Cos. now undergoing the process of winding up, under the fostering but fatal care of the Court of Chancery – many of the liquidations being in the hands of the very persons who originated the Cos. and conducted them to ruin – imperatively requires that some means should be devised for protecting the unfortunate shareholders against calls and demands which, in too many instances, are both unreasonable and unlawful. In many cases where Cos. are winding up under compulsory orders, the proceedings are being procrastinated and the costs of winding up increased to an enormous and ruinous extent. In other cases which are being wound up „voluntarily“, … frauds of the most outrageous and unmitigated character are being perpetrated by quondam directors, who are now officiating as liquidators. In one recent case, property of the value of £5,000 has been sold and disposed of by the liquidator for £150. In other cases frauds of a similar or varied kind are being perpetrated, without question or hinderance, simply because individual shareholders feel themselves powerless to act alone, or can only act alone at great cost and risk, and have no means of acting in combination with their fellow sufferers. An organised combination of shareholders for their mutual protection now intended. ⦗Meeting deßwegen, Resolutions etc⦘

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The Money Market Review, 19. Dezember 1868. S. 569.
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The Railway Returns of the Board of Trade. (Published end 1868)

Umfaßt 18 Jahre.

Number of miles in Operation.
Double Line. Single Line. Total
1849 5,034 998 6,032
1867 7,844 6,403 14,247
Increase in 19 years 2,810 5,405 8,215
1849 1867. Increase in 19 years. Average yearly Investment of fresh Capital
Capital paid up £229,747,797 £502,262,887 £272,515,108 £14,290,000
Average Cost p. Mile of Rail in operation: £.38,088 35,113 showing apparent decrease of £2,975 p. mile; not accurate, as the capital paid up at both periods was applied more or less to unproductive works und proportion of single line larger at the close of 19 years’ period.
Traffic Receipts from all sources: £11,806,498 £39,479,999 Incr. of £27,673,501 or Average Increase of £1,456,400 per Annum.
Gross Revenue per Mile £1,957 £2,770 Increase of £813 p. mile. Gross Revenue p. mile 411/2% higher in 1867 than in 1849, with a gradual but uniform improvement every year.|
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1852 (Erst von diesem Jahr number of miles run by trains returned by Board of Trade) 1853 1856 1867.
Average Receipt per train mile 5s. 2d. 5s. 5d. 5s. 111/4d. 5s. 33/4d.
Notwithstanding, therefore, the increase of 411/2 pct. in the receipt per mile in the 19 years. years, there was for 16 years rather a decrease in the receipt per train mile. In other words, the diminished receipt per train mile, by contrast with the largely increased receipt per mile, indicates conclusively that more work was done for the money earned; and herein consists another reason for the comparative depression of British railway Property. Railways have run too many trains and have done too much work for the return in money. Worn out with competition, and with unnecessary expenditure upon too frequent and badly filled trains.
1860 1867
Working Expenses; Average Rate on Receipts 47% 50%
Cost of working has undergone no diminution relatively to the traffic receipt but has rather increased.
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The Money Market Review, 19. Dezember 1868. S. 571.
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Heaton’s Iron and Steel.

As one of the points of opposition, asserted that the strength of the iron and steel produced may prove inferior to those produced by other processes, such as Bessemer’s. Facts most decisively contradict this. (d.h. the recent experiments.)

Heaton’s process uses the poorest ores, Bessemer’s only the richest ones. The majority of the ores in the iron bearing districts are poor – that is, the they contain phosphorus and sulphur in abundance; and neither puddling nor any mechanical process yet discovered can remove these deteriorating ingredients. The admission of atmospheric air is powerless against them; otherwise Bessemer would have been able to extend his process indefinitely. Chemistry alone supplies the means of neutralising and removing them.  Von Marx übernommen in Manuskript II zum zweiten Buch des „Kapital“ (MEGA² II/11. S. 194.32–35).
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The plant needful to carry out Heaton’s process is absolutely inexpensive. The smallest ironmaster may command it; but only the greatest ironmasters can command the capital and appliances requisite for the pneumatic process.
8 Advantages of Heatons system: It deals with cheapest raw material; it produces steel direct from pig iron; the plant is inexpensive; the cost of maintenance of the plant is insignificant; the waste of material in conversion is almost nil; puddling is dispensed with; the process of conversion is simple, rapid and, certain; the results are remarkable for their uniformity. No preceding invention connected with the manufacture has offered such a combination of advantages. … Will strongly tend to revolutionise the iron manufacture.

Aus:
The Money Market Review, 19. Dezember 1868. S. 571/572.
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Collieries in U. Kingd. Insurance.

Existirt bis jezt keine Insurance gegen Collieries’ Accidents. Capital in Collieries 100–150 Mill. £. St. mit net income of £30,000,000, besides giving wages to upwards of 300,000 men.

Times 21. Dec. 1866 Mr. Lonsdale Bradley made propositions, as to Insurance. Hat für Jahre diesen Gegenstand verfolgt. Apparent difficulty to discover a sufficient average against loss, so as to ascertain the exact risks of the Assurers. Prosecuting his inquiries during long period, and carefully examining all the conditions that lead to loss of life and property in coal mines, he ascertained that such a recurrence of accidents prevailed as indicated the operation of a law uniform in its action when spread over a long period. Though apparently capricious and irregular, colliery accidents, when examined over a long period, are found subject to averages exactly as vital [as] statistics are; and, assured of this, they certainly ought to be provided against in the same way. Bradley further discovered, that from all causes there are annually not less than 900 accidents involving the loss of life, and that about 1000 colliers are killed every year. With great labour, but within very small limits of error, the costs of accidents from explosions, fires, fall of roofs, inundations, and breaking of machinery, have also been ascertained. In 1865 there were 3,268 collieries in U. Kingd., employing 307,542 miners, who produced 98,150,587 tons of coal, valued at the pit’s mouth, at £24,537,646. Small premium upon either of these large quantities would be sufficient to produce an income to defray the costs of accidents to property, and to support the widows and children of the miners killed until in situation to provide for themselves. … In collieries, the supervision exercised by an Insurance Co. would be an addition to the means of providing against accidents.

Aus:
The Money Market Review, 19. Dezember 1868. S. 574.
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Cotton Trade. (Stokes, Mc Haffie, et Co.) (New York)

With every prospect of free receipts at the ports caused by present high prices, and with a visible supply of cotton, only about 71/2 P.Ct. below last year (1867), our prices are 45 P.Ct. above the same date in 1867.

Aus:
The Money Market Review, 19. Dezember 1868. S. 579.
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The Currency of Sovereigns and Half Sovereigns in India.

Notification of Financial Department, Simla, October 28, 1868: In modification of the notification of 23 Nov. 1864, vor und after this new notification, sovereigns and half sovereigns coined at any authorised royal mint in England and Australia of current weight shall be received in all Treasuries of British India and its dependencies in payment of sums due to the Gvt., as equivalent of 10 Rupees and 4 Annas, and 5 Rupees and 2 Annas, respectively. They shall, whenever available at any Gvt. treasury, be paid at the same rates to any persons willing to receive them in payment of claims against the Gvt. The gold pieces stated in Sect. 13 of Act 17 of 1835 will also henceforth be received as above according to the values stated in that Act. Gazette of India, Oct. 31.|

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Nachtrag zu November 14. 1868.

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The Money Market Review, 14. November 1868. S. 448/449.
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The Troubles of Shareholders in Banking and other Jt. Stock Cos.

Mr. William White, a banker of 40 years standing, has published in one Manchester paper, about this subject. Nach ihm viele Banks „are buying their own shares to keep up the price, as case with Birmingham Banking Co. and Royal Bank of Liverpool .“

The banks which buy up their own shares will generally take care to have them registered in the name of nominees, so that the transaction may not appear upon the register.

Limited banks are required by law to exhibit at their head office a statement of their assets and liabilities according to a prescribed form „or as near thereto as circumstances will permit.“; and some avail themselves of this liberty to vary the form thus as to conceal the amount of their overdrawn accounts by blending them into one item with bills of exchange, or by merely stating the whole of their assets in one sum. In either case the real position of the bank not seen. Uniformity of accounts is as much required in other joint stock banks as in Railway Cos. Sir William Hutt’s bill would have given us this uniformity; but that Bill, instead of being supported by Board of Trade with all the weight of Government, was opposed by that Board, and consequently withdrawn.

The great vice of „Lancashire banking“, White says, „is making large advances to customers on overdrawn accounts, thereby locking up the capital of the bank banks, and jeopardising their very existence.“ And the auditing of some of the banks accounts seems to be equally lax and perilous. „I have now lying before me“, says White, „the reports of 2 banks, in one of which two of the directors have kindly audited their own accounts; whilst in the other case the balance sheet does not balance by a difference of nearly half a million. Yet in this latter case the auditors certified the balance-sheet as ‚examined and found correct. correct‘, and the report was received and adopted.[“] He also mentions two other bank reports „in which the rebate on bills on hand is deducted from the amount of such bills, instead of from profit and loss account.“ Such things could not occur in the midst of a great mercantile community like Lancashire, if the leading members of that community were prompt to expose and denounce them. Even White does not name the banks he denounces. The sickly and sentimental delicacy  Zusatz von Marx.
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(!)
with which these things are regarded by mercantile men, otherwise men of probity and honour, is a great social evil.

26 December 1868.

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The Money Market Review, 26. Dezember 1868. S. 593.
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Overend, Gurney, et Co. Prosecution of the Directors for Conspiracy to defraud.

Times, Money Article, of 21 Dec. denounces the prosecutor. (Dr. Thom) Calls it „a party movement“, „an attack upon the individuals in whose entire good faith the belief in the City has been so repeatedly expressed and is still so strong“; says that the proceeding „will be viewed with a feeling of reprehensions“, and that in certain eventualities the authors of this proceeding must be prepared for „proportionate censure“.  Zusatz von Marx, der das Exzerpt mit Angaben aus der „Times“ und dem „Economist“ ergänzt. Er bezieht sich wahrscheinlich auf The Times, 5. Januar 1869. S. 9: „To attempt to win such advantages at the cost of a pecuniary risk to strangers without first obtaining their consent to the hazard is what in equity is called a fraud. But there is a wide interval between a fraud in the view of the Court of Chancery and a fraud which subjects the wrongdoer to penal consequences at law. [...] To make out equitable fraud against the Directors, it would have been sufficient to show that the terms offered openly to the shareholders did not comprise the truth, or the whole truth [...]“. – Siehe auch The Economist, 9. Januar 1869. S. 29.
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In spätren leaders calls it „an equitable fraud“, kein criminal one. Economist in same strain.

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The Money Market Review, 26. Dezember 1868. S. 594/595.
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Cotton in U. St.

Average Annual Value of Cotton Produced in South of U. St.
1857 £38,243,248, at $50 per bale in gold.
The war then stopped the production, but in next four Years Annual Average Value
1858
1859
1860
1865 £47,500,000 per bale in gold at $100 per bale.
The planters are thus receiving more money for less cotton, while they have produced it a at less cost, so that, in point of fact, they are actual gainers by the war.
1866
1867
1868
Aus:
The Money Market Review, 26. Dezember 1868. S. 601.
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A City of Tents. (Town of Ballarat, Victoria)

18 years ago the spot on which stands the now daily growing City of Balarat Ballarat was literally a desert; 10 years ago a city of tents – a host of golddiggers then peopling the former solitude, housed under canvass canvas. Now a town of stately buildings, with a railway station that alone cost £40,000 £60,000. Theatre, Alfred Hall, churches, chapels, townhalls and other public buildings. It forms the centre of, perhaps, the most productive agricultural district in the colony of Victoria, and the very dust of its streets may be said to have at one time teemed with gold.

From underneath the soil of Ballarat gold to amount of £40,000,000 was extracted. From one little plot, a little over 600 yards in breadth, now situate in the very centre of the town, with several streets crossing it, £750,000 rewarded the diggers’ search. This is going on to the present day, only that shafts have taken the place of „holes“, and expensive machinery been substituted for the pick and washpan of the first explorers. The operations of the various Cos. which have worked on Ballarat ground have had the effect of distinctly marking out the track which the main lead of gold and its various tributaries have taken. In certain directions, indeed, the houses would have spread faster were it not for the almost certainty that gold lies beneath the surface, for which shafts must be sunk and machinery be erected before the space is encumbered with buildings. In a plot of ground on the western side of Ballarat, into which the very main stream of gold is found to run, dipping to a considerable depth, on which operations have been already commenced, it has |58 therefore been decided to mine on a scale hitherto not attempted in the colony of Victoria, so that the gold may be brought to the surface in the shortest possible time, and the ground revert to agricultural or building purpose. Land is too valuable close to Ballarat to be hampered with mining operations longer than is absolutely necessary. This undertaking will require larger instant outlay than the locality can well manage; very early in 1869 John Bull’s Packet will be applied to.



[The Economist. Jahrgang 1868. Nachträge]

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The Economist, 11. Januar 1868. S. 33.
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Fires and Incendiarism. Economist. 11 January. 1868.

The evidence given before the Select Committee on Fire Protection startling. After carefully weighing the evidence presented to it, the committee reports that apparently 1/3 of the fires which occur in England are intentional. … There is such a competition for business among the various offices, that it is better worth their while to pay fraudulent claims than to alienate new insurers. „The sympathy of the jury, and of the Court, is always against the office“, says the Imperial Fire Assurance Office. – Insurance office which prosecute are supposed to do so with an eye to personal advantage – and that the verdict of guilty for which they strive, is in reality a verdict for the amount of the policy. … The assessor to the County Fire Office gives as a list of the classes with whom fires are most frequent: „small shopkeepers on the verge of bankruptcy; foreigners principally of the Hebrew Persuasion, Germans or Poles; the stock of these persons consists principally of dummies or imitation goods made of plaster of Paris; cheesemongers and chandler-shop keepers have half-tubs of butter, sides of bacon, bladders of lard, cheeses; grocers have loaves of sugar, chests of tea, and reams of paper; tobacconists have cigars in bundles; tailors and linendrapers, rolls of cloth made of straw, and parcels filled with sawdust; publicans, wine merchants, and perfumers, the contents of bottles are coloured water.“

The insurance offices remark that whenever one branch of trade is depressed, fires are sure to happen among their votaries.



Aus:
The Economist, 18. Januar 1868. S. 60.
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January 18. 1868.
Mr. Fawcett on „Freetrade in Land.“

All free trade would do for him (the wealthy buyer of land) would be indefinitely to increase the security of his investment, by removing all difficulties about title; by enabling him to grant any kind of lease he pleased, whether wasteful or not; and by facilitating sale whenever he wanted his money, or part of his money, back again. … Land might be raised in price, doubtless would be, but the richest would get, just as in open market they get everything else. The poor might as well compete with them for coals. Even with perfect freetrade, the dealer always prefers „a large order“, and a visibly solvent customer … It is conceivable, that if the labourers desired the land energetically, a class of land pawnbrokers would spring up as in India and Southern France, who would buy for the labourers, and exact, in the form of interest on mortgages, an excessive rental from the cultivator … In Yorkshire agricultural labourers are greatly in advance of wages in the South, owing to the competition of other modes of livelihood.



Inhalt:

  • Inhaltsverzeichnis von Friedrich Engels
  • 1869 I Heft
  • Money Market. 1868.
  • Money Market Review. Jahrgang 1868.
  • The Economist. Jahrgang 1868. Nachträge
    • The Economist. Jahrgang 1868.
    • Inhaltsregister für 1868 Jahrgang. („Money Market Review“ und „Economist“.)
    • Kommentar zu George Joachim Goschen
      • George J. Goschen: The Theory of the Foreign Exchange. 7th edit. London 1866.
      • Friedrich Ernst Feller, Carl Gustav Odermann: Das Ganze der kaufmännischen Arithmetik
      • Inhalt.