October 31. 1868.

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.

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.

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).
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).
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.

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.


  • 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.