January 4, 1868.

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.
(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)

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?“

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
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.|

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


less 208,400




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


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.

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.
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.

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.

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.

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.


  • 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.