25. January 1868.

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.)

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.|


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

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

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.

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.

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.

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.|


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.

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.


  • 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.