# The Economist. Jahrgang 1868.

## January 4, 1868.

### Money Market.  Zusatz von Marx. Schließen (Notes Reserves mit Country Banks.[)]

 B.o.E. Notes with the Public 1 Jan. ’68. 2 Jan. 67 3 Jan. ’66. £24,842,000 £23,740,000 £22,200,000

DerEconomist“ meint, daß die increase of 21/2 Mill. in the outstanding notes tells significantly of the larger Actual Note Reserves kept by Country Bankers.

### The Alleged Degeneration of England in Commercial Morality.

Spectator (chorus of lamentation over the pitiable condition of commercial morality in this country) affirms „that dishonesty is the besetting sin of the middle class.“ Aber Frage: „whether the commercial class of to-day is positively less honest than the commercial class of the last generation?“ … Not at all … Die „latent immorality“ gleich groß. Besondre Umstände develop sie nur oder besondre temptation. Great openings for safe fraud suddenly presented … What is it which really tries commercial morality in its most delicate essence? Clearly, a widely ramified system of credit. It is no great moral achievement not to cheat in a ready-money transaction … No national character for commercial honesty can … be fairly established at all, until thoroughly tried and tested by an extensive system of credit. Aber credit never developed in any age of the world, or country at the present time, wie recently in England und U. States. Man kann daher nicht compare the England or America of 1867 (in Bezug auf entwikeltes Creditsystem) mit France or Germany of 1867, or even mit England und America of 1837 or 1847. Und dann, nützlicher to compare a commercial morality exposed to the newest, most complicated, and heaviest possible trials, with a commercial morality exposed to very much less complicated and much lighter trials, and trials of a kind to which it had already become inured. Take Railways. Englisch Railways nicht subject to State Control, wie die meisten Foreign ones. Die Vergleichung fails again. … England nur zu vergleichen mit U. States, und da der comparison is not disgraceful to England.

### Considerable Fall in Prices. Seit 1866.

A) Wholesale Prices. London 1st January of 1868, 1867 und 1866.
Articles 1 Jan. 1868 1 Jan. 1867. 1 Jan. 1866. 1868 less than
1867 1866
I) P.Ct. P.Ct.
1) Cotton. Dhollera lb. 51/2d. 121/2d. 171/4d. 58 70
2) Silk Raw. Cossim lb. 16s. 19s. 20s. 18 20
3) Flax. St. Petersburg. ton. £53 £54 £80 34
4) Wool. English S. D. 240 lb. £141/2 £19 £22 24 33
II)
5) Oil, Seal, Pale. 252 gls. £41. £46 £50 10 20
6) Saltpetre. Eng. Refin. cwt. 31s. 24s. 28s.
7) Copper. T. C. ton £76. £86 £106 10 29
8) Iron. – B. Bars. £61/2 £7 £8 8 20
9) Tin. – English Bars. £96. £85 £104 8
III)
10) Yarn. Mule. 40.’s 40’s lb. 111/2d. 21d. 30d. 46 64
11) Cotton Cloth – Gold End. 10s. 4d. 15s. 9d. 18s. 6d. 37 44

During the same time, the wages in all the trades dependent on these raw materials have fallen from 20 to 30%. The cost of producing most of the great articles of export composing our foreign trade has been reduced 1/3 during the last 2 years. Suffering and distress inflicted by this gigantic revulsion was inevitable. Terrible penalty entailed by the infatuated notions of the Prosperity years. Export Trade feels  schon the effect of this Cheapness.

B) 1867, 1866, 1865. Eleven Months end. November. Exports of Manufactures. Value and Quantities.
Value. Million £. Quantities.
Articles. 1867. 1866. 1865. 1867. 1866. 1865.
Mlns. Mlns. Mlns.

Cotton Yarn.

13.7£

12.4

9.3.

153

126

94 lbs

Cotton Piece Goods. 48.8 53.1 41.0 2,567 2,341 1,850 yards
62.5 65.5 50.3 2,720 2,467 1,944

Iron. Puddled et Pig.

1.6

1.4.

1.4

0.53

0.45

0.49 tons

Bar and Bolt 2.2 2.1 2.0 0.27 0.25 0.23
Rail 4.6 3.9 3.3 0.55 0.46 0.40
8.4 7.4 6.7 1.35 1.16 1.12 tons
Iron. Total. All kinds. 14.2 13.7 12.2 1.77 1.56 1.48 tons.
Woollen Cloths. 5.0 5.0 3.7 29.47 32.31 24.27 Yards

### French Companies. (From „Le Finance“. 1866.[)]

In 1866 Calls made in France for French Cos. 496,000,000 (round figures) und für Foreign Cos. 514,000,000f. Davon waren:

In: French Companies: Comptoir d’Escompte (30 Mill. fc.) Société Générale (30 Mill. fc.) The Fives-Lille (6,150,000f.) Railways 300 Mls. fc.

In Foreign Undertakings: Suez Canal (100 Mill. f.) Austrian Credit Foncier (115 Mill. f.) Nagares of the Span. Gvt. (47,500,000f.) Conversion of Spanish Debt (2,500,000f. Tunisian Loan (31,500,000f.) Russian loan (89,500,000f.) Danub. Princip. (31,500,000) Austrian Railways: 33,750,000f.|

### Annual Rate of Mortality in 1867 per 1000 persons living in great cities of U. Kingd.

London, 23, Bristol, 23, Birmingham, 24, Sheffield, 25, Hull, 25, Leeds, 27, Edinburgh 27, Dublin 27, Salford 29, Glasgow, 29, Liverpool 30, Manchester 31, Newcastle-on-Tyne, 31. Decrease in almost all the towns upon the rates of 1866.

## 11 January 1868.

### The Succession Duties.

In 1796 Pitt’s proposal to apply Legacy Duties, without distinction, to Real and Personal Estates, defeated by the Country and Landed Interest, as to tax to Real Estate. Von 1796 to 1853 duties at the rate of 1% to children, 3% to brothers, 5% to uncles, and 10% to strangers in blood, have been assessed on all Legacies of Personal property, including in that definition leasehold and copyhold estates. Successions to Real Estate and the inheritance of fortunes secured by settlement where were wholly exempt from Legacy Duties, und auch Real Property exempt from Probate Duties, first imposed in 1694, and augmented from time to time till the last revision in 1815. These Probate Duties amount to 21/4% on sums up to 1,000£, 2% from £1000 to 10,000, 11/2% in the higher accounts, so that the smallest fortunes pay the heaviest rates.

Gladston measure of 1853: (The Succession Duty Act of 1853 (16 and 17 Vict. cap. 51)[)] did not touch the Probate Duties at all. Jezt noch Probate Duties nicht applicable to Real Estate. The Act (of 1853) so far extended the Legacy Duties to Real Estates as to provide that the rates of duty already named should apply to the capitalised value of the life interest of any successor – say A – according to his age at the time of his succession to the estate. F.e. A, in his capacity of brother to a testator, succeeds at age of 50 to a landed property worth 10,000l., producing say 300£ of income (annual). Then, according to tables appended to the Act, A pays Succession Duty of 111l., or 3% on 3,716l. – the calculated value of 300l. p.a. at age 50.

A bequest of the same value, £10,000, but in Personal Property, to a second brother B would be subject to –

 B. – Probate Duty 2 P.C. £200 Legacy 3 300 500 A. Real Estate, as above 111 Excess against Personality 389
 In 1852 Probate and Legacy Duties paid 2,286,000 1866 4,184,000

#### Rent of Land und Value of Land and Taxes etc

A Tenant hiring a farm frames his offer of rent on the produce of the land as diminished by taxes and all other outgoings, and any one who buys the fee simple of the farm, buys it on the basis of such net income – that is, he deducts, as against the seller, the incidence of the local taxes. If, therefore, the State should make any special exemption to landholders on the ground of Local taxes, it would be simply paying them twice over.

### Bad Trade and Short Employment in the U. States. (Times. New York Correspondent New York. 16 Dec. 1867)

Harvest and Cotton Crop of 1867 most favourable throughout U. St. ⦗Economist meint, damit habe auch zu thun growing pressure on debtors as paper gradual approaches towards par.⦘

Times Correspondent says: „Too much misfortune in business and to too many unemployed workmen. … Between Christmas 1866, und Christmas 1867, the sharpest contrast. Men in successful business then now bankrupt; Trades Unions then planning strikes for higher wages now willing to work for any wages at all … even breadriots apprehended. … The New York World declares that at present 50000 men out of employment in New York; that there is a complete stagnation in all trades, general poverty and destitution among the labouring classes. Armies of the unemployed crowd the docks and wharves, fill the employment offices, flock to the few situations that offer. Of the 4,000 jewellers in New York, 1500 unable to find work; 1,000 out of 2,500 jewelry boxmakers, and 300 out of 500 diamond setters are idle; of the 3000 others employed in the different branches of the jewelry trade, nearly 2,000 are adrift. 900 engravers in New York seek employment, only 200 can get it. 6,000 carpenters, of whom 500 idle, und 1000 working for half wages. Masons and bricklayers almost all employed, but only half their time. The 10,000 people in the hat trades are employed from 1 to 3 days in the week for small wages, the employers thinking this better than discharge 1/2 or 1/3 of them. The iron trades employ but 1/5 of their force a year ago, 5000 iron workers idle; in shipbuilding dulness supreme; shipcarpenters, in despair, have long since sought other employment; 1/2 of the 8000 cigarmakers without employment; of 6,000 stevedores or navvies 4,2000 4,200 without regular work; among the clerks and other assistants in business houses and retail shops sorrowful destitution, at least 5000 of them wandering idle over the streets; of house servants, a class constantly reinforced by immigration, 3000 want places.“

„Philadelphia, the leading manufacturing city, has 25,000 idle working people. From Baltimore, Boston, Chicago, Cincinnati, St. Louis, similar reports. Ebenso im South jezt kein work für die Blacks. In the agricultural regions of the North not the same destitution as in Cities, chance for procuring labour, so that the unemployed of the city are urged to go to the Country. They will starve if they remain. This sad state of affairs produced by the great stagnation of trade. Retail dealers in New York complain that they are not doing anything like the holyday average business.“ The New Haven Register, in Connecticut, says: „More men are out of employment to-day in New Haven than at any previous time in last 10 years. Our manufacturers are reducing, or have reduced, their forces, and it is a difficult matter for a mechanic or working man to obtain employment of any kind. In this city, not less than 15,00 1,500 working men unemployed.“ The New Bedford Standard, the organ of the whale oil business, says: „There has not been a transaction in oil or bone from first hands in this market for about a month.“ The Pittsburg Despatch Dispatch report that a general lock out imminent in the glass and iron works of that city, as the employers have resolved to close them to compel a reduction of wages.

The great Rensselaer Ironworks at Troy, New York, have stopped, thrown large body of men out of employment. The „Louisville“, Kentucky, Journal reports more unemployed people than at any time within its knowledge.

A correspondent of the Boston Journal writes from Portland that, ‘go where you may in Maine, business will be found crippled, |61 and the cry of dull times goes up on every hand. Never before our manufacturing interests in such languishing state.“ The Manchester Journal, in New Hampshire, says this gloomy report is true of all New England. Along the lakes the shipyards are idle, and their owners cannot get contracts. Dazu a sudden „cold snap“ has frozen up all our rivers and most of the harbours, before the cities and towns on them and in the interior had procured their winter’s supply of coals. This has raised the cost of fuel to – very high rates.

## 1 February, 1868.

### French Budget.

L. Bonaparte has borrowed upwards of £100,000,000, or at the rate of about 6 Mill. £ a year for every year of the Empire … On 27. Jan. (’68) Magne announces new loan of 440 Mill. fcs (nearly 18 Mill. £ St.) to be raised by open loan, in instalments spread over 20 months, and to involve at the price of the day an addition of 25 or 26 Mill. £ to the National Debt. … The Emperor’s system of open loans has produced one very remarkable effect unknown … except in France. The worse the price of Rentes, the more readily money comes into a loan. The real subscribers under this system are the better off peasantry and small bourgeoisie, who scarcely recognise any forms of permanent investment except land and Rentes; who look to interest rather than to the principal, and consider that a low price is „very liberal of the Emperor.“ Just as in England a fall of Consols below a certain point, z.B. 87 – is always the signal for a rush of bona fide purchasers; so in France, an open loan under 70 will be far more rapidly taken up than one above it. An Englishman would think it less secure, but that is not the French peasant’s mode of calculating.

### Liverpool on Commercial Morality.

Liverpool Chamber of Commerce met on 23 Jan. 1868 to discuss this „Liverpool“ fact.

### The Nature and Law of Commercial Crises.  Zusatz von Marx. Schließen (John Mills.)

Nach Mills Commercial Crises essentially of mental origin. Tendency in commercial mind to be at times elated, and at times depressed.

Nach Economist no great crisis in den 14 years 1825–1839; the violence of the collapse (er meint 1839) discounted by the minor pressure of 1836–37. Russian War dagegen 1854–56 did not prevent punctual recurrence of collapse in 1857. Failure of Overend anticipated by a year the normal occurrence of crisis. Mills thinks that in 10 years the personnel of most commercial firms and establishments must become greatly changed: Aber diese new men cannot so soon rise into commanding positions. Those who guide commercial affairs are Seniors, whose recollections run over 2 decades. Aber no profiting by experience. Those who possess foresight and experience rather use it to gain a profit at the expense of the incautious, than to moderate their infatuation. The part of a knowing man of business 2 or 3 years ago, was not to abstain from dealing in limited liability Cos, but to back out of them before the exposé which was inevitable. Panics have occurred under every kind of monetary regime. 1815–16, with inconvertible paper currency; 1825 with convertible currency and free issues; 1836–9 with the additional institution of jointstock issuing banks; 1847 und 1857 under the Bank Act; 1866, with the free creation of every kind of banking and finantial financial institution on the limited principle. In Holland crisis on purely metallic basis; United States in a system of universal freedom of issue. Prior to the creation of Bank o. Eng., in 1683, a well marked instance of speculative mania. The Bank o. England, the Bank of Scotland, the first Insurance Co. (the Hand-in Hand) and others of our most important institutions, were really the creations of the speculative mania of 1694–96, the forerunner of the bubble of 1720.

Wages and prices now reduces reduced. Circumstances favourable to real profitable investment, but Public opinion set against it. Hence abundance of ready money capital, small demand for it, consequent slack employment for artisans.

## February 8, 1868.

### Peasantry Proprietors.

The sphere of this system in U. States, Australia, colonies generally, where farm of 40 acres of finest land to be had at nominal price, und, with the aid of minimum of capital, the owner’s labour may raise crops from the virgin fertility of the soil. Anders in old und densely populated countries like England. First obstacle: Rent of Land, partly the pure rent due to the limited quantity of cultivable land, partly the interest of capital invested in fences, drainage, approaches, or other improvements. … It is the part of a statesman to detect those tendencies which have not developed their full effects, so that the future may be more surely anticipated. But the supporters of peasant proprietorship in the present in the present day display as little consciousness of the future as if they had 1/2 century ago urged their fellow countrymen to leave the mill for the spinning wheel. And now they urge us to recur to spade cultivation, or something very little better, when farming is already a matter of science, capital, organisation, and steam power. There are tendencies of |62 so high an import and so irresistible a character, that the more quickly we yield to them the more we show our sense, let them bring what apparent ills they may. … The „magic of property“ can do much, but it can hardly enable the labourer by his spade, to compete with the united forces of science, mechanism, and steam power …

### Exports and Imports.

In den folgenden Tabellen 3 Ziffern (000) ausgelassen. Also z.B. 140,000 = 140,000,000.

A) Value of Imports during 10 Months ended with October.
Ten Months ended with October. [Imports] Imports minus Raw Cotton
Value. Difference at each Period compared with its Predecessor. Value Difference of each Period compared mit its Predecessor.
£ £
1862 £140,316 £121,634
1863 156,563 16,247 Increase 118,888 2,746 Decr.
1864 181,283 24,720 Do. 119,184 296 Incr.
1865 160,499 20,784 Decrease 116,599 2,585 Dec.
1866 193,697 33,198 Incr. 126,521 9,922 Incr.
1867 181,371 12,326 Incr. 134,540 8,019 …
B) Value and Quantity of Raw Cotton. Imp. into U. Kingd. during 10 Months ended with October.
Ten Months ended with October. Value of Raw Cotton Imported. £. Quantity of Raw Cotton Imported. Cwts.
1862 £18,582 Cwts 3,125
1863 37,675 4,225
1864 62,099 6,147
1865 43,900 6,316
1866 67,176 10,610
1867 46,831 9,684
C) Value of British Exports during 11 Months ended with November.
11 Months ended with November. British Exports British Exports minus Cotton manufactures.
Value. Difference at Each Period compared with its Predecessor. Value. Difference of each Period compared w. Predecessor.
£. £
1862 £113,283 £84,818
1863 132,136 18,853 Incr. 97,043 12,225 Increase
1864 148,341 16,205 Do 105,847 8,804 do.
1865 150,832 2,491 Do. 108,112 2,265 do.
1866 137,913 23,081 Do. 118,068 10,956 do.
1867 167,932 5,981 Decr. 116,457 1,611 Decr.
D) Value and Quantity of Cotton Manufactures. Exported from U. Kingd. during 11 Months ended with November.
11 Months ended mit November. Value Quantity
Cotton Manufactures Exported. Cotton Yarn. Cotton Cloth (Plain and Printed) Cotton Sewing Tread Thread.
1862 £28,465 bbs lbs 89,101 1,586,944 yds 4,284 lbs.
1863 35,093 67,612 1,537,714 3,809
1864 42,494 69,592 1,617,060 4,035
1865 42,720 94,134 1,850,815 4,245
1866 55,845 126,180 2,341,748 3,828
1867 51,475 153,982 2,567,804 6,094

## February 15, 1868.

Durch Inland Revenue raised in Financial Year ending 30. June, 1867: £,31,000,000 (£ hier angenommen = $3). Nach Wells only 50% of what the taxpayer ought to pay reaches the National Treasury; of every 2$ which ought to come in, 1$either not collected at all, or stolen or wasted before it reaches the Exchequer. Vor dem Civil War the Federal Gvt. subsisted upon the Customs’ duties and the public lands. Die present production of Distilled Spirits in U. States wenigstens 50 Millions of proof gallons per annum. Present tax:$2 p. gallon. The largest amount of revenue collected in any one year, since imposition of present tax, 29,482,078$in 1866, und 29,164,409$ in 1867. Thus the Gvt. has collected the tax on somewhat less than 1 gallon of proof spirits to every 3 gallons that has been manufactured. Das enhancement of price in Folge der tax has given to the illicit dealers aggregate profit of at least 30 Mlns $. Daher great agitation in spirit trade for the spirit duty. Sound financiers like Wells, want to reduce it. But the lobbyers prevent them. The higher the duty, the greater its uncollected half. Ebenso mit dem nächst important duty, on Tobacco. Wells giebt Masse Methoden des Betrugs gegen den Staat etc.| ## February 22. 1868. ### France: Imports and Exports of Precious Metals during 1867. A) Imports. Gold Silver Countries. Bullion. (fcs.[)] Coin. fcs. Bullion. fcs. Coin fcs. England 175,083,123 97,353,450 51,108,266 37,640,856 Italy 997,100 123,457,527 2,017,620 54,822,596 U. States 38,510,875 Belgium 5,890,500 3,627,140 30,819,568 Zollverein 63,384,375 13,610,140 Turkey 14,184,000 Egypt. 14,847,000 Spain 7,742,656 Mexico 18,886,000 Other countries 10,299,068 50,534,226 13,752,144 20,402,790 Total 224,890,166 369,651,078 70,505,140 183,924,606 B.) Exports. England 12,449,042 3,300 2,949,400 Belgium 114,351 1,282,789 5,854,136 637,830 Spain 42,264,404 19,221,298 230,600 Italy 45,175 4,697,749 841,500 Engl. Poss. in Mediterrn. 802,060 10,604,000 796,630 Zollverein 4,590,925 1,760 1,292,254 Switzerland 16,253,928 Turkey 31,010,040 Egypt 22,476,380 905,400 Barbary States 921,400 1,363,000 British India 2,757,260 1,164,400 China 13,200 1,050,200 Roman States 1,189,800 Cochin China 2,345,400 Other States 1,744,584 28,218,549 26,539,762 4,192,582 Total 44,168,514 141,924,160 45,773,418 18,958,976 ## 29 February. 1868. ### Trade of France. 1866. Imports (fcs[)]. Exports (fcs) Figures relate to „Special Trade“ (Imports for French Consumption und Exports of French Productions. 1) England 637,300,000 1,140,500,000 2) Belgium 304,700,000 262,300,000 3) Italy 234,300,000 230,500,000 4) Zollverein 195,200,000 187,000,000 5) U. States 191,900,000 173,000,000 6) Turkey 129,500,000 58,400,000 7) Switzerland 111,100,000 226,300,000 8) Russia 80,300,000 23,400,000 9) Algeria 65,700,000 129,800,000 10) Spain 63,000,000 123,700,000 11) La Plata 59,600,000 51,600,000 12) Brazil 57,100,000 81,300,000 13) Egypt 55,100,000 44,700,000 14) Norway 45,700,000 6,800,000 15) Austria 40,300,000 4,700,000 16) Uruguay 35,700,000 34,500,000 17) Spanish America 35,200,000 28,500,000 18) Holland 33,000,000 27,800,000 Sweden 32,000,000 3,100,000 Other countries under Sweden. Total 2,793,500,000 3,180,600,000 Exports and Imports = 5,974,100,000 fcs  England 637,300,000 1,140,500,000 British India 62,200,000 9,100,000 British Poss. Mediterranean 15,600,000 12,800,000 Do. America 2,800,000 3,800,000 Do Africa 2,500,000 7,300,000 Australia … 4,800,000 Total 727,400,000 1,178,300,000 | ## March 7, 1868. ### Money Market. Rate of Discount. The deposits in the hands of billbrokers and bankers in London are our „Loan Power.“ Our Private Banks do not publish any account. Much of the deposits with B.o.E., London and Westminster Bank, and other strong Banks, used to be kept at Overends: other money transferred from the weaker to those stronger Banks. Trade of the Country by far not so profitable as formerly. Does therefore afford less means of saving. Therefore, no large increase from this source in the Deposits of Lombard Street. The Liabilities of the Bank o. E. much augmented. Therefore Reserve must be proportionaly proportionally augmented.  Public Deposits £4,450,713 Private Deposits 19,815,396 Seven day Bills 548,394 Total 24,823,503 Its reserve should be = 2/5 of liabil. = 10 Mill. £. This neutralises the result of the increase of loanable capital which augmentation of Private Deposits seem to indicate. Bullion: By last account in Febr. Reserve in Banking Department in Notes und Coin £13,231,939. If 10 Mill. Reserve necessary, this not much to be diminished. In England increase of liabilities is in Deposits, in France in Notes Circulation – the first and most elementary type of credit.  Bank Note circulation of France now is £47,580,020 In February 1866 it was 35,528,240 Increase 12,051,780. French Bullion Stock 45,000,000 admits large Reduction. Bank o. France subject to no Peel act. It keeps some proportion of bullion etc against all its liabilities, and gives no special favour to one sort of Liabilities, the Notes. Credit: Low State. Worse than after 1847 or 1857. Credit is the effectual demand for capital. When credit is good, discounters will discount many bills readily; when credit is bad, they discount fewer bills, and with qualms. The difference is between a brisk high market and a stagnant low one. ## March 14. 1868. ### Sir Morton Peto’s Examination in Bankruptcy. Has begun during 2 days, as to the claim of the London, Chatham, and Dover Railway against his firm. Bankrupts are debited mit £4,403,442 cash paid by the Railway Co to them or on their account, und mit £11,594,557 of stocks and debentures taken and realised by them; on the other hand credited mit 2 sums of £2,171,336 und £4,171,450 received in cash from them and the public, und mit £2,993,264 for work done, leaving a balance of £6,661,941, exclusive of interest, for which the present claim is made. Sir M. P. bis jezt examined is mainly that portion of the claim arising out of the Metropolitan Extension, so far as concern certain A and B shares and debentures; the inquiry of the C shares and subsequent proceedings having only commenced. The Nominal Capital dealt with £1,650,000 for shares, und 550,000£ for debentures, on which account the Co claims £962,500 – the difference between the par value and the sums they actually got. Metropolitan Extension Act passed 1860. Sofort die arrangements made. Peto’s firm were to be the contractors. They should accept payment in Shares at par less a Commission of 25%. They were also to advance money, apparently for the purchase of land, on shares and stocks, which they were to place at their option for a similar commission. In short, out of £; £2,200,000 they were to get 550,000. Yet, while arranging to make this large deduction, Peto did not know that the works authorised could be completed even by the capital to be raised, though he knew in 3 or 4 months afterwards that the amount would not be sufficient. The formal proposal to carry out this understanding or plade plan made in September, 1860, but in the agreements of 1. und 5. October, actually signed on Octob. 30, there were one or 2 material alterations. The contract prices were „somewhat“ (Peto’s expression) higher. The rate per mile for the permanent way, f.i., was increased from £5,107 to £6,180, a rise of 20 P.Ct. More important still, the provision that the Co. were to take the shares at par was omitted from the signed contract, an omission for which Peto cannot give any reason. There was another point in the agreement. The contractors were to pay a guaranteed interest of 6 P.Ct. on the B shares, half the total number, during the construction of the line, though Peto could not say whether he was aware at the time that the Act prohibited „the payment of interest or dividend out of money raised or borrowed.“ The Legislature never authorised a certain capital on the understanding that 25 P.Ct. would be absorbed in discounts for placing the shares and debentures. An important part of the plan was the „placing“ of the shares and debentures, which necessarily brought in the general public. Without their aid the combination must have failed, for the contractors never contemplated being the holders of the line they made. Peto says he was not responsible for the Prospectus issued to the public. He „only“ „revised it to see that his interests were protected.“ The first offer to the public was of B Shares, on which there was a guaranteed interest, and the Prospectus told them that the A Shares were all taken. In fact, the A shares had not been taken, but only subscribed for. So the B shares and debentures were all got rid of at par. At one place, Peto speaks vaguely of the changes incidental to placing so large an amount of capital, and he also describes an arrangement with Knight and Coleman, the Co’s brokers, who were „associated with a large number of brokers“, by which they were to get 10 P.Ct. for their share in the business of „placing“. Business succeeded, money was got. Deceit of the public, misinformed as to the A. shares, paid interest on B shares so as to induce them to take them up, not cognisant of the Discount arrangements. What became of the A Shares? They could hardly be disposed of at all. In July, 1862, Peto proposed that he should get a rebate of 50 P.Ct. on account of their „postponement“. Ultimately they were purchased at 37£ 10s. Peto explains, he was to have a commission of 25 P.Ct. on the whole capital, and the purchase of the A shares at 37l. 10s. „would make the commission larger, the nominal capital on these shares being £850,000“. Although he only gets 37l. 10s., Peto still deducts 25£., his commission being on the „whole capital“. In other words, whatever the sum of cash got, his commission remains the same, and it must have amount on the Ashares to more than 50 P.Ct. The upshot was, that out of the total authorised capital of £2,200,000 only £1,237,500 remained to carry on the works. Difference of £550,000 taken by Peto, according to his own confession, less £190,000 which he states to have been the broker’s Discount on the B shares, debentures, and works.| 65 The most marvellous part of transaction that Peto never met with any difficulty. The contract prices were raised 20 P.Ct. above the original proposal, on the mere „suggestion of Mr. Betts“. When Peto applied for a rebate of 50% on the A shares, at once conceded. One of the most formidable difficulties was the necessity of a subscription contract, in order to use the compulsory powers of the Act. Got over by the simple expedient of Peto et Co. subscribing the contract themselves, and paying £206,000 into the Union Bank as the first deposit on 82,000 shares. But whence came the money? On the same day, on which he paid the money, he got from the Railway Directors 100,000l., and on the following day 51,000l als Commission on the deposit of shares. Peto pays a deposit on certain shares, but gets back most of the cash he parts with in the name of commission, so that the deposit became a mere form. ### Negotiation of Foreign Bills of Exchange in London. At present, Foreign Bills of Exchange, drawn in this country on places abroad, are mostly negotiated in the following Manner: The seller or manufacturer of the goods – say A – at Bradford draws, as per agreement, on his customer, – say X – at Lisbon, and hands the set of Bills to B, a local banker at Bradford, who endorses them over to C, a Banking House in London, acting as B’s agent. C sells them through a broker on the Royal Exchange on some Tuesday or Friday – the 2 days set apart by long custom for the market for Foreign Bills. The buyer of the Bills – say D – is drawn upon by C for the proceeds, and the draft is payable on the following „Post Day“ – that is, Friday or Tuesday. In other words, the Buyer D gets possession of the Bills in time to be sent abroad on Tuesday evening; and he does not pay for them for 3 days. This gratuitous credit wünscht Bradford Chamber of Commerce abgeschafft. For all practical purposes the Tuesday and Friday „Changes“ are quite sufficient, and more advantageous to Sellers, because the they collect on the same spot at the same time all the important buyers, and, therefore, establish a real quotation. ## 21 March. 1868. ### Der Titel befand sich wahrscheinlich im Besitz von Marx, da er im Katalog der SPD-Bibliothek (Nr. 40541) verzeichnet ist. Schließen Horn: Le Bilan de l’Empire. Years. Total Expense. fcs. Annual average fcs. 1852–56 fcs 9,643,778,793 1,928,755,759 1857–61 10,213,760,472 2,042,752,094 1862–66 11,134,809,436 2,226,961,987 1847–1851 7,981,000,000 1852–56 added to Expenses: fc.166,000,000 1857–61 exceeded 1852–66 by fc.570,000,000 1862–66 exceeded 1857–62 by fc.921,000,000 und die Difference of 1862–66 und 1852–56: fcs 1,491,030,643 fcs. 1,491,030,643 fcs. Adding the 3 quinquennial Epochs of Empire gives fcs: 30,992,348,701 and Annual Average of 2,066,165,580 15 Years of Louis Philippe … fcs 19,083,000,000, nearly 12,000,000,000f. more than same period of Louis Phil., i.e. 800 Mill. fcs a year (32 Mill. £) Charge on Population, for last 5 years, 240 fcs p. family. ### Indian Cotton in American one. Zusatz von Marx. Schließen (Wichtigkeit der espèce des Samens) Seine Konkurrenz mit amerikanischer depends on substituting the cultivation of American for indigenous varieties in the Indian cotton districts. After many years of opposition and incredulity, A. N. Shaw, of Bombay Civil Service, succeeded in proving that New Orleans seed, acclimatised in Dharwar, produced cotton which yielded much more per acre, and sold or a higher price per lb., than the indigenous kinds. It was stated that there were then 214,000 acres in Dharwar sown with New Orleans cotton, which yielded this valuable return to the cultivator; and that that cotton, when made up in Lancashire, produced more yarn than ordinary New Orleans. Nach 1862, the Bombay Gvt. endorsed the mistaken views of Cassels, their Cotton Commissioner, and declared all attempts to substitute American for Indians als mischievous delusion. In Report published 30 November, 1867, stated: „In addition to what is described above (Dharwar district of Bombay) large sowings of New Orleans exotic have been made in the Ahmedabad, Khandeish, Ahmednuggur, Sholapoor, Sattara, and Broach district in the Bombay Presidency, as well as in other parts of India out of the administration of the Bombay Government, such as Central India, Punjaub, Coorg etc … The New Orleans variety is the most productive of any. At a rough computation, the yield of this description 20 P.Ct. in excess of most other superior varieties, und probably 40 P.Ct over some of the inferior kind.“ Four years ago 214,000 acres in Dharwar sown with American Cotton. 1867 dagegen acres 300,398 in that district sown with the same description und 465,086 acres in other districts of Bombay. See , 1. Febr. und 2nd March 1868. ## 28 March 1868. ### Influence of Price of Articles on Money Market. „High prices make dear money.“ I.e. the amount of money borrowed in times when Prices high larger than when they are cheap. The amount borrowed to hold the raw material is larger. Amount required for the discount of bills larger, because the bills are drawn for larger amounts. A rise in the price of all articles has a most sensible effect on the value of money. A rise in the price of a single article, especially when it promotes transactions, has sometimes some effect. ### Return of Income Tax etc (England and Wales) Annual Value of Property and Profits charged to income Tax in England and Wales: Rateable Value of Property, England and Wales, subject to local taxation. 1863: £273,404,918 £76,357,145 1864: 276,520,647 87,618,867. 1865: 296,031,791 90,137,365. | ### Annual Surplus in Sheep and Cattle. Australia. August 1867 it was stated that means sought to utilise the large annual surplus available after supplying all the requirements of the people; and that at meeting of owners of live stock it had been decided to erect on the Murrumbidgee River an apparatus capable of rendering into tallow 10,000 sheep per week. Nach Advices to 31 January, 1868: such establishments were in full work at Port Augusta und Guichen Bay (South Australia) at Echuca, Geelong, Ballarat, Portland Bay, und Melbourne; and also on many sheep farms in Victoria, for the sole use of their owners. Estimated that fully 60,000 sheeps boiled down per week in the 2 colonies of Victoria and South Australia. The average net proceeds of this method of disposing of sheep did not exceed 3s. 6d. or 4s. per sheep, except at Ballarat, Melbourne, and Geelong, where the hind legs could be sold for 7d. each, while at the other places they were simply wasted, as no population to consume them, and the excessive heat of the climate prevented their being cured for shipment to Europe. ### Yield of goldmines, Victoria, 1867. 1,493,831 Ounces. Average number of miners employed 65,857, their average earnings s.35 per week. The goldmining Cos. in the colony paid 1867 dividends to more than £820,000 > whole number of population, recking £’s und heads. Ausserdem profits of Private Mining undertakings und of Cos. not publishing yields and dividends. ### Preliminary Meeting of the Iron Masters of South Staffordshire district, at Birmingham. Large Attendance. Resolution passed by inconsiderable majority to reduce the price of finished iron 10s. p. ton, making bars £7; and reduce puddlers’ wages 1s. p. ton (10%), all other wages in the trade in proportion, 14 days’ notice to be given to the men on Saturday next. Minority will abide by the decision arrived at. ## April 4. 1868. ### French Taxation. Nach Einhorn fällt 10£ nearly on family ⦗da: Average Expenditure of Gvt. 88 Mill. l. p. an. und the number of families – counting 2 persons living solitary, as one family is, in round numbers, £9,327,000.⦘ Nur few von den 4,600,000 families, consisting of small proprietors, farmers, métayers, agricultural day labourers, clear a net revenue of £40 a year. Even in manufacturing industry, such an income not the lot of the large majority. Only the „privileged minority“ even in Paris, can make £60 a year. Smaller sum safely taken as income of the vast majority in France. Dann: Communal and departmental expenditure – the „budget des dépenses sur ressources spéciales“ – amounts to 11 Mill. £ St. p.a. Dann die „municipal budgets“, in Paris alon alone £10,000,000, only 1/5 of which supplied by the Imperial Government; the other great towns in France follow suit. Moderately calculated, the total taxation in Paris per family £24 p. annum. Larger part of French Taxes on Consumption, or are the price of services which the State is supposed to render. The license tax heaviest for small trader. Stamp duties, Registration Duties, Duties generally on the transmission of property, heaviest in proportion on small dealings, inverse progressive rate. Still more true of taxes on articles of consumption. „Petit bleu“, which poisons the workman, bears same duty as „Chateau Margeau“, quaffed by the Master; the same with fish, viands, liquors. Besides, the expenses affected by such taxes form a larger proportion of the budget of the garret than the budget of the first floor. 20% added to the price of his articles of living absorbs 1/5 of a workman’s income, only 1/20 of his richer neighbourʼs. Nach Einhorn the aggregate Income (Annual) der French Population: 373 Mill. £; nach A. Cochut, 640 Mill. £. French Economists reckon that the taxe Foncier alone takes 1/10 of the net produce of the soil. In fact, die French Gvt. takes 1/5, if not 1/4, from those least able to pay. Besides, many French taxes are clogs to industry. Patent, or licence tax, impedes every shopkeeper; duties on liquors, from their number und complexity, besonders troublesome to trade. Their Expense of collection 10% of receipts. ## April 11. 1868. ### American Finance. Internal Revenue Act von 1864, besides income tax, heavy series of stamp duties, excise on spirits and tobacco, tax on cotton, tax of 6% on all sorts of manufactures. Under this Act 39,700,000l. raised in Year ending 30. June 1867, wovon 21,900,000 „industrial“ taxe … Jezt bill introduced, repealing all the „Industrial“ sections of the Revenue Act, except those affecting petroleum, wines, manufactured tobacco, and a few other articles. The bill, however, imposes on those who sell more than$5000 worth yearly of any manufactured commodity a tax of 2$p. 1000 on the exccess excess over$5,000 – which is equivalent to a tax of 4s. P.Ct. on every one who sells more than £750 of goods annually. Against this bill letter of MCulloch (the Treasury Secretary) d.d. March 16, 1868. Bill has passed the House, now before the Senate.

Es würde sein Diminution of Taxes: £18,000,000 ⦗Cotton Tax Repealed £3,000,000 und Loss by proposed Repeal of Industrial Taxes £15,000,000.⦘

## April 18. 1868.

### Coal Export from Belgium. (Nearly the whole goes to France.[)]

 1867 tons 3,564,364 1866 3,971,772 1865 3,567,687
 1867 tons 3,442,226 1857 3,021,752 1847 1,689,984 1837 788,413 1827 423,225 1817 192,742. |

## April 25. 1868.

### Average Corn Prices.

Week ending April 18. Average Prices. Quantities sold.

Wheat.

s. d.

Barley.

s. d.

Oats.

s. d.

Wheat.

cwts bsh.

Barley.

qrs. bsh.

Oats.

qrs. bsh.

1868 73   8 43. 10 29  0 38,958  0   8,780  2 2,653  2
1867 61   4 39    8 25  5 54,046  1 11,608  7 4,318  5
1866 44   9 37    2 24  8 72,215  0 14,817  6 3,455  3
1865 39   7 30    0 22  7 62,003  5 19,049  3 3,145  5
1864 40.  1 30  10 19  3 74,164  0 25,652  5 8,069  5

## May 2, 1868.

### The Late Bank of Bombay.

Commission just appointed to inquire into collapse of Bank of Bombay. Failed despite its connection with the British Gvt.

In Folge des Gold influx wegen Cotton Schwindel. Bubble Cos Bombay in 1863. The commercial directors of the Bank o. Bombay went deep into the prevalent speculation. „One of them was the Chairman of the Victoria Land and Press Co., the chairman of the Scott Press Co., the director of the Mofussil Cotton Press Co., director of the Bombay Landing and Shipping Co, partner in business with a director of the Frere Press Co., partner in business with a director of the Elphinstone Land and Press Co., director of the Goa Coffee Co., director of the Western India Hotel Co, director of the Port Canning Co, one of the local committe committee of the Asiatic Banking Co, director of the Bombay Reclamation or Back Bay Co, also member of the mercantile firm that were secretaries and treasurers to the Victoria Land and Press Co, the Scott Press Co, the Bombay Shipping Co, the Port Canning Co, and the Bombay Reclamation or Back Bay Co.“, and others, though not engaged in quite so many Cos., still engaged in many.

The analogous Banks of Bengal and Madras prohibited by their Charter from lending on the shares of „Public Companies“. Bombay Bank not so restricted, lent freely. The Bank was ready to promote every sort of bad local Co. And the persons to whom it lent were as bad as the securities. Previous to April 1865, sagt official Report, nicht only firms und individuals of mercantile position credited weit über ihre means, sondern auch „persons not even engaged in any ostensible commercial pursuits were accommodated with large sums of money, which could only have been required for purposes of share speculation.“ Out of its capital stock of 2,090,000l. it has lost nearly 2,000,000.

### Zusatz von Marx. Schließen (Ireland) Emigration, Wages, and Land. (Eingesandt vonT. E. Cliffe, Leslie.[)]

The Edinburgh Review, ascribing the rise of money wages in Ireland to emigration adds: „We utterly reject the sentimental nonsense, which classes emigration among the misfortunes of Ireland. It is a blessing to the country. Nothing is more to be desired for the welfare of Ireland than that this emigration should be large and continuous.“

1) facts: Cairnes stated 21/2 years ago in the „We fail to perceive any solid improvement, scarcely any sensible improvement, in the present day labourers of Ireland as compared with their predecessors 20 years ago. Wages, no doubt, have risen in money, probably, on an average of the whole island, from 30 to 40 Pct. But potatoes have also risen, and in far more than this proportion. Indian corn is a new resource, but is by no means as cheap as potatoes formerly were. Tea and sugar have declined, but, on the other hands, whiskey has risen. As for butchers’ meat, it is of course as far as ever from the wildest dreams of the Irish peasant.“

Rise in wages is to a large extent nominal. Und die advocates of Emigration ascribe to it all the effects upon prices and commerce of roads, railways, proximity to English markets, increased demand in those markets, the equalisation of prices and the new gold mines. If Emigration were the chief cause of rise in the price of labour, it would have continued to rise with „large and continuous emigration“. For 9 years the money rate has remained stationary throughout the greater part of the island, and looking at the price of food, the real rate has considerably fallen in the last 2 years, while for some important kinds of labour wages have ceased altogether. See In many cases Emigration consequence of a fall of wages instead of the cause of a rise; in most cases, it has been the consequence of their continuing wretchedly low.

2) theory, that Emigration must have raised wages by diminishing the number of labourers.

»The result has been mistaken for the cause; and instead of causing wages in each particular case to be what they are, the aggregate amount of wages is the mere consequence of wages being what they are in particular cases, and amounting in the aggregate to what they do.« If only one labourer were left in the island, would he receive the whole of that „aggregate wages-fund“, the ratio of which to the number of labourers is said to determine the price of labour? Is it not possible that he might earn even less? … Is it impossible that employers may do without labour, or find substitutes for it, instead of raising its price as it grows scarce? Have employers not in point of fact dispensed with labour extensively in Ireland? where more than 1/2 million of acres have gone out of cultivation since 1860, where little more than 1/4 of an island especially adapted to root crops remains under crops, and where a startling decline has taken place in the produce of agriculture. … The economist economists imagine that wages in particular cases are made what they are by participation in a general fund called wages in general, which inheres in every individual labourer’s wages.

3) to divert attention from the real causes of Irish emigration, and to leave things as they are … Man hat sogar zu diesem Behuf gesagt, that Irish tenants farm all the worse for security und daß the worst farmed part of the island is 1/13 under lease.  |68 … At this moment in contemplation to introduce locomotive flax scutching machines for the small farmers in Ulster.

## May 16, 1868.

### The Cotton Statistics Bill.  Zusatz von Marx. Schließen (Sthaatseinmischung.)

No one can have watched the course of recent controversies without observing a considerable change; formerly the great object of commercial reformers was to exclude the Government from trade; now their object is to get it back into trade. And the persons who used to object to State aid are now the persons who invoke it. … The more exactly a merchant can know what is required, the more exactly he can regulate his operations; and Government can augment that knowledge by finding out what is the present supply in the world.

This is the principle of the „Cotton Statistics Bill“. To give dealers in cotton best account possible from time to time of the amount of cotton in the market. It requires all „warehousers“ of cotton (a term which is defined, as every person and Corporation having cotton in his or their possession at any port in the U. Kingd.) to make a return of 1st July of every year of the quantity of cotton in their possession; and every „forwarder“ of cotton – i.e. „every person and Corporation who carries or forwards cotton for toll or other consideration“ is required to make a return monthly of all cotton „forwarded or received“ by him within the preceding month. The effect of the Act, therefore, is, that on 1st next July authentic account of cotton now at hand at Liverpool and the other ports and by a similar account we shall also know how much is monthly subtracted from that store and how much is added to it. We shall have a certified amount to begin with, and be sure of all the changes.

These accounts are „compulsory“. If any „warehouser“ or „forwarder“ fails to make them, he is to be liable to fine for each neglect. Some objection is taking to this as rendering trade no longer free. But free trade means free bargains; it does not mean ignorant bargains.

### Paris. 14 May. ’68. Credit Mobilier.

Judgment of Tribunal de Commerce condemns the directors of Credit Mobilier in the early part of 1866 to restore the sum the shareholders were made to pay for doubling the capital – the restoration being ordered on the ground that irregularities were committed and misrepresentations made.

The report of the acting directors of the Credit Mobilier, presented in the recent meeting of shareholders, states that the losses at the end of 1867 were 40,547,788 fc, composed principally of a loss brought forward von 1866, and of depreciation in the value of securities held.

### Pauper Expenditure in Metropolis since 1863. (Annual Poor Rate Returns. Official[)]

Years. Expenditure in £. St.
do          do      1864 876,289
do          do      1865 905,640
do          do      1866 976,262
do          do      1867 1,175,362
 Jan. 1. 1863 106,407. July 1. 1863 94,735 do 1864 103,495 do 1864 94,612 do 1865 105,351 do 1865 97,981 do 1866 111,019 do 1866 106,202 do 1867 138,706 do. 1867 126,094

## May 23. 1868.

### The French „Credit Mobilier“.

It issued new shares upon a flourishing prospectus and a good account of profits, being all the while in difficulties and having hardly cash to pay its way. At two meetings, on 12. Febr. 1866 und 1st March, 1866, the Credit Mobilier doubled its capital; at these meetings a Report was read exhibiting large profits and declaring a good dividend. These meetings were informal und packed. The Co on. on the 1st. Febr. was insecure and dangerous. Unless out of the new capital it could pay no dividend upon the old capital. Court decides in this sense.

It is a bank which did the business of a Finance Co. It had deposits to amount of £4,783,074, of which all but insignificant part on demand. Its Assets, exclusive of Railway and other shares upon which advances had been obtained, were:

£
Bills Discounted 586,564
Do. To Sundry Debtors 1,868,497
Cash 837,246
Total 5,451,160.

But the Court says that the cash was mostly wanted to pay a Dividend due; that of the advances to sundry debtors hardly any could be easily called in, and of some the repayment was dubious; and out of 2,158,000l set down as advanced to Public Cos. more than 2 Mill. £ were advanced, without a security, to a single Co., the Compagnie Immobilière, which was insolvent. So scarcely any real cash in hand, and no means of getting it. The Court has decided that the directors must reimburse the new shareholders. The new capital of the Credit Mobilier is 2,400,000£.

### The Bonus System in Paying Workmen.

Evidence received by Trades Unions’ Commissioners on limited liability firm: „Msrs Briggs, of Whitwood and Methley Junction Collieries, near Normanton“, into which a number of workmen have been admitted as shareholders, while all have divided among them in bonus half the profits of the firm above 10% on their capital. The same mixed system of association and bonus tried with success by Greening and Son, Manchester.

A Co (in the case of Briggs) was formed on 1st May, 1865, with shares of 15£ each, of which 10£ paid up. The number of original shares was 9,000; but 1000 more since created, the whole being allotted as follows:

6,450 or above 2/3 to the old partners of Msrs Briggs, 1,068 to customers; 1,874 to the public, 114 to non resident agents, and 264 to workmen; 230 not allotted of the last issue of 1,000 shares being reserved to the workmen. The actual number |69 of shares held by the workmen is 178 – the remaining 86 counted to them being held by 9 managers, clerks etc; and of these 178 shares, 94 are held by 83 miners, and 84 by 61 top hands, 6 being the largest number held by one individual. As there are 989 workmen employed – 785 miners and 204 surface hands – this gives a proportion of 1 shareholder out of every 91/2 miners, and 1 out of every 31/3 surface hands. Two years have now elapsed – and it is the practice – there is no condition in the articles of association – to divide the profits above 10% between the workmen and the firm, the shareholding workmen getting both the bonus and the dividends on their shares.

During the first year, the profits amounted to 14 P.Ct. on the capital, of which, according to the arrangement, shareholders got 12%, and 2% went for bonus. During the second year, the profits were 16 P.Ct., the shareholders getting 13 P.Ct., and the bonus being 3 P.Ct. The actual amount divided in bonus was in the 1st year 1,800l. und in the second 2,700l. And these sums were sufficient to add 10 P.Ct. and 12 P.Ct. to the earnings of working shareholders, and 5 P.Ct. and 8 P.Ct. to the earnings of nonworking shareholders. The two classes have not received alike, the working shareholders receiving in the first year double what was paid to their to their fellow workmen, and in the 2nd year one half more.

The average bonus of the whole workmen, top and bottom, was in the 1st year 3l. 9s. 2d.; 2nd year: 3l. 3s. 2d.; and the highest sums got by any single workman, 10l. 18s. 101/2d. and 9l. 17s. 10d. The payment of the bonus was made conditional on the workmen taking out a pass book, in which the amounts of their wages were to be entered, the pass book costing 1d; and in the 1st year only 30% qualified, but in the 2nd 80%.

The proprietors are satisfied, because formerly, with disputes, waste, and loss of time, they never got 10% on their capital, but have now been getting 12 and 13 P.Ct. The bulk of the men are satisfied, though some are „not sure about it“. In the open market, the shares quoted at 4l. 5s. to 4l. 10s. Premium.

The Briggs had quarrels mit their workmen since 1853 „off and on“, but with violent crises in the dispute in 1853, 1858, and 1863. In 1858 there was a deal of rioting, and some of the men were sentenced to imprisonment. Briggs received letter, that he would be shot in 13 days. In 1863 the dispute was very bitter. The distrust shown by the neglect of the men to take out the passbooks so as to ensure the bonus. They were utterly incredulous that any bonus would be paid. … Calmness with which a late reduction of wages was accepted. … Formerly the Briggs had endless wranglings about weighing, and the men voted themselves frequent play days – a very serious matter, as the daily expenses for pumping etc 120l., whether the men work or not. Scheme still in an experimental stage. Und difficulty in adjusting matters between shareholding and nonworking shareholders in regard to the Bonus.

Circumstances hitherto favourable to the experiment. Business was profitable. In the 2nd year, besides making all necessary allowances for wear and tear etc, the dividend 16 P.Ct., but in addition 8,000£ was carried to a general reserve fund, so that a profit of upwards of 20 P.Ct. made. Failure of similar experiment by Fox, Head, et Co in the Iron Trade, through business being unprofitable. … A distinction cannot be made between stores required for repairs and new works…

Briggs explains that in a business where 70 P.Ct. of the annual outgoings is for wages, it is essential to have the workmen on the capitalist’s side and bestowing extra care on the work. They had the power to throw away nearly all the profits by carelessness and indifference.

Among the miners, the most numerous and important class, the proportion of shareholders only 1 to 91/2. A good many of the men still keep subscribing to their Trades Union. The second qualification to the success is the difficulty about the bonus. First of all, it is not secured in any way. The firm can do each year what they please about it, and for all practical purposes the Briggs are the firm – the public and the workmen do not count.

The Briggs wish to make the bonus of all equal; it is to the bonus chiefly that they trust – and not to the shareholding – for extra care. The workmen shareholders on the other hand are anxious to make the holding of shares a real part of the programme, desire to keep nonshareholders from an equal bonus.

Even if the workmen become all shareholders, the substantial character of the whole undertaking – the grant by a capitalist of a bonus to his workmen terminable at pleasure – will not be altered. … It will [be] a long time, the more enthusiastic of the men believe, before a miners’ cooperative association can do what is done in cotton spinning in Rochdale.

## May 30. 1868.

### Are Trades Unions really insolvent?

In der Evidence vor der London Commission on Trades Unions’, Mr. Finlaison, of the national debt office, beweist daß „Engineers“ und „Amalgamated Carpenters“ Unions must die out within certain time from ineradicable insolvency. Gesezt er habe Recht. So beweist das nach ihm selbst, daß die Contribution zu niedrig, 50% höher anzusetzen ist. Dieß geht das Wesen der Sache nicht an. Der Theil, den die Unions als benefit societies, annuation societies, etc auszugeben haben – also der nicht Strike Theil – ist leicht zu berechnen, wie bei jeder andern Insurance Society. Und Inquiry beweist nur, daß die Unions bei Fixirung ihrer Beiträge sich von professional accountants diese Sache berechnen lassen müssen.|

### The Bill for abolishing Houses unfit for Human Habitation.

The „Artisans’ and Labourers’ Dwellings Bill“ is the first of a series which is likely to be a long one. … The price of houseroom in the great cities, and more especially in London, has increased with the increase of their population, until the poorer sort of labourers, the men who earn from 12s. to 18s. a week, are wholly unable to pay the sum demanded for lodgings of any decent kind. That sum is usually 1/3 of their incomes, and if the family is large even more, and the labourer is tempted to reduce it by every possible device. Either he retreats to a room so unsafe, illprovided, or unhealthy, that it is let cheap, or he takes in lodgers who pay a portion of his landlord’s demand … The consequence in great cities is that small, rotten, or otherwise cheap houses, near the centres of work, are found crammed to the roofs with families who set all sanitary rules, etc and live, as Lord Chelmsford said, like animals, or, as the Bishop of London still more forcibly put it, like vermin. The landlords or lessees of such houses, very often poor men, spend as little as possible on repairs, dig no cesspools, open no drains, supply no water, and leave as few openings for light and air as they possibly can, windows being conveniences which will break. Such houses become of course centres of disease, depôts where certain forms of fever are storedup to await the first hot day, when they spread far beyond the „rookery“ where they were originally generated.

It is essential that the State, as guardian of the lives of its subjects, should abolish these pest houses, and expedient that it should so far as possible compel a more civilised mode of life. No landlord can have a moral right to let a house in a state unfit for human habitation any more than he can have to sell poison at his own discretion, because it is profitable. He is bound to see that the article he sells either is innoxious to the community, or to abstain from selling it, and can no more plead his right of property against the Legislature than a chemist could plead his right of property in arsenic or prussic acid. He is bound to obey the laws regulating the public health, and is bound also to take heed that his conduct does not lower the general level of morality.

Under this Bill, whenever a house is condemned by competent medical authority as unfit for human habitation, the „local authority“ – that is the Board of Health, or Commission, or Town Council, or Vestry – may direct the owner to make the necessary improvements. If he declines, the local authority may order the House to be closed, or may purchase it on a valuation and rebuild, or may delegate its right of so doing to a speculator in houses. This is the main provision, that a landlord may be compelled to choose between allowing his tenantry habitable accommodation and selling his property to some one who will. Difficulties of the detail. Unless they are removed the Act may prove almost a dead letter. In the first place, the Bill gives no security that the „local authority“ will not be entirely in the hands of petty landlords – the class, which of all others, seeks most for municipal office. In that case the Act either inoperative, or will be used to secure high prices for worthless property. In the second place, the Act provides no fund for the work beyond a 2d. rate, which will be insufficient and unpopular, and compel the local authorities either to delegate their right to a builder, or to exert their alternative power of closing the houses altogether. In the former case the builder is pretty certain to look to profit, and put up rooms a little too good for the poor, thus increasing the overcrowding elsewhere; and in the second, the population must be expelled very often by sheer force. Again, the Bill does not in any way prevent overcrowding, for a house may be in a perfectly habitable state for 4 people, and quite uninhabitable for 14. We fear the Act will lead to very little except a few considerable clearances, which will intensify the surrounding misery and disease. The suffering produced by such clearances for the benefit of railways has been already considerable, and threatened once or twice to breed formidable riots.

The evil to be met is a huge one, namely, the inability of London to hold its population until it is raised higher into the air. Way out of the difficulty is an extension of 2 measures already sanctioned by Parliament – the Lodging House Act, and the Act offering loans of money to the builders of houses for the poor. If a properly constituted Authority were allowed to condemn small districts one at a time as unfit for human habitation, and such districts were then cleared by the Dwelling-House Associations, and covered with their lofty dwellings out of capital lent by the State, the gradual relief would no doubt be very great – as great, that we might in a few years carry the Lodging House Act to its logical conclusion, and absolutely prohibit overcrowding beyond the limit of health, viz., 500 cubic feet of air to each sleeper. Problem: to house decently in a space already overcrowded the 80,000 immigrants who add themselves every year to the population of London. The present Bill may work well for Liverpool, Manchester, or Norwich, where local authority strong, and possible to extend the area to be built on.

## June 6. 1868.

### French Finance. Paris. 4 June. (68)

André Cochut, Revue des Deux Mondes, shows that by loans and by various – such as transactions with Railway Companies – the appropriation of the army dotation – a compromise with Spain for the sum it owed – the sale of forests – the augmentation of the caution money of certain public officials, – the grant to the Bank of France (10 years before its privilege expired) of a prolongation thereof on condition of its providing 100 Mill. fcs and receiving Gvt. Stock for the same (the operation was called „doubling the capital“) etc. etc., the Empire has contrived to raise 4,322,478,508f. over and above what was obtained by means of taxation, and that by doing so it has cast an annual charge on the country of 549,149,862f., being 257,522,700 fcs more than had to be borne before the Empire was established.

## July 4, 1868.

### The French Railway and the French Government.

Meaning of 1st, 2nd, 3rd réseau: Gvt in various ways induced the old Cos to undertake the new railways. Each reseau belongs to a distinct kind of bargain with the State, and each bargain has features of its own which other bargains in the same reseau have not. To some the State gives more aid, to some less; from some it exacts more service, from other less. … Pouyer-Quertier, a Rouen manufacturer, boldly asserts that the French Gvt. lavishes vast sums on these railways; that under the name of „subvention“ the State |71 maintains the Cos; that were it not for State help some Cos. would be insolvent, and that nearly all of them would be less prosperous than now, if the State exacted all its rights and enforced on the Cos. all their duties. … An absolute Gvt necessarily acting through men who were poor yesterday, and who wish to be rich to-morrow, influenced by corrupt motives … the present Gvt. of France has always had a taint of share dealing. Some of the principal actors in the coup d’état were deep on the Bourse … Nach Pouyer-Quertier large sums have been spent by the Gvt. on subordinate railways; state made bargains by which it is impoverished that these subordinate railways did not pay and never could have paid; that they were not selected because as railways they were likely to be permanently profitable, but because as momentary instruments of speculation they were likely to augment the gains of influential persons. A gvt of new men, a gvt of poor men, and a gvt. with Bourse connections, is always likely to do this.

Im Lauf dieser discussions (Corps Législatif) kam auch heraus, whence the „Crédit Mobilier“ obtained its deposits. Some of the French railway Cos. have been made to keep money idle. The Company du Midi had nearly 2,500,000l. on deposit in the Credit Mobilier in 1865 and 1866. The managers of the Credit Mobilier were managers of the railway, managers of the concessions, managers of the Bourse, managers of the Gvt., and somehow this large sum did permanently stay as a deposit in the Caisse of the Credit.

## June 13, 1868.

### The Association of Workmen and Capitalists. Vol. VI in the Reports of the English Commissioners on the Paris Exhibition

Msrs. Crossley, of Halifax, on the largest scale. The nominal capital £1,650,000, in 110,000 shares of £15 each, of which £10 are paid up. Of these, 88,000 shares, representing a capital of 1,320,000l., are held by John Crossley, Joseph Crossley, and Sir Francis Crossley, leaving only about 1/5 to be held by the public and the workmen. How the amount is shared between these is not stated, but the articles of association contain elaborate provisions for the holding of shares on account of married women and minors; and a memorandum annexed describes the measures taken to bring in the workmen. Not only is a decided preference given to applications from managers and operatives in the allotment of shares, but 5,000 shares were „retained“ for the managers, clerks, foremen, and workpeople, to whom the firm lent money, amounting in the aggregate to 56,150l., to enable them to take up the shares. For the sums thus lent, interest at the rate of 5 P.Ct. is charged, and the difference between that amount and the dividend is credited to the account opened. If a 20 P.Ct. dividend is continues, the shares will pay themselves off in 1872. Beyond these measures to associate those employed, – who number altogether 4,795, of whom 1,881 are adult males, the rest being women or minors – the firm do nothing to stimulate the activity of the workmen, except paying ordinary wages by the piece. There is no mention of any system of bonus to shareholders and non-shareholders. The first dividend was 15 Pc., the second 20 P.Ct. The shares are now selling at 10l. p. share premium.

Nominal capital is £50,000 in 10,000 shares of £5 each, but only £4,000 have been issued, viz 2,000 to Edward Owen Greening and Joseph Greening and 2000 to all the others. The number of partners altogether is 45 to 50, and the number of employed is about 70, of whom only 30 are adults. Since the establishment of the Lim. Co. there has been a dividend at the rate of 15 P.Ct., the average of former years, and in addition a bonus of 5% has been paid to the workpeople on their wages – the average weekly wages to adults being 28s. and the highest 2l. The same bonus, as far as appears, has been paid to shareholders and non shareholders, the former getting no preference as in the case of Msrs Briggs.

In dem system of Mssrs Fox, Head, and Co., there is little more than an arrangement for paying a bonus. There are no shareholders. After reserving 10% p.a. for interest on capital, the profits above that amount were to be divided equally among the employers and the employed. Besides, although no partnership or association is allowed, the amended law of partnerships is taken advantage of to allow workmen to invest their savings in the works, withdrawable on 6 months’ notice. On the amount 5 P.Ct. interest certain is to be paid, and a share in the profits above 10 P.Ct. Investing workmen would thus not be in the position of shareholders in Crossleys etc, but then they run no risk or of loss.

The iron trade bad und this has perhaps helped to cause failure in the Fox concern; but looking at the strikes which have taken place, the objects of the system can hardly have been gained. Although Msrs. Fox place foremost amongst the conditions of employment with them that no Union men shall be employed, they have had according to their own report the following strikes:

From 21 October to 31 Octob. 1864 = 10 days; this was to obtain the same wages for forge rolling (notwithstanding an improvement in the machinery by which the make was nearly doubled) that was paid in other works which had not the same improvement. The extra cost of the improved machinery to us was about £1,000, for which they wished to credit us nothing. Part of this 10 days was, however, the result of a breakage.

11 March to 30 March, 1865 = 19 days: This was to resist the notice of 10 P.Ct. reduction which had been issued by the Iron Manufacturers’ Association, of which we were then members. The great fall in prices had necessitated this.

14 July to 22 August, 1866 = 39 days: This was to resist a second notice of reduction on account of the still greater depression of trade and prices.

8 September to 20 November, 1866: = 73 days. This was a continuance of the last strike, a 3 weeks’ interval having intervened on a temporary arrangement which could not be prolonged indefinitely. … In all cases everything must depend on the capitalist, and the giving of a bonus anyhow might seem sufficient, but the facts are the other way; the how is a detail of importance. The capitalists, as in the Crossley case, may provide expressly that the „governing directors“, that is the old partners, shall have entire control; yet the concession of modified rights to others, the public procedure consequent on the formation of a limited Co., and all the other effects of co-operation, create confidence such as is not so easily called forth when the capitalist „makes no fuss about it“, and does nothing to disguise his authority. Of course it would never do for the employer to give up any real control or veto, his interest remaining far preponderant to that of all others; his retention of control is the condition precedent of any mixed system of cooperation in which he takes part; but the machinery of an association seems useful in securing all the advantages of a plan for making the workmen participate in profits.

### The Economist: J. E. Horn Schließen Abraham Einhorn. French Finance.

In „Salut au Troisième Milliard“ sagt er u.a. that in country local taxes, as well as those of the State, each family has to pay 300 fcs a year statt f. as he at first represented.

## June 27, 1868.

### The Sources of our Subsistence.  Zusatz von Marx. Schließen (U. States etc)

Caird observed „our principal dependence must be on the U. States of America“ and he gave as the result of careful investigation the following figures, which in their order show the proportions in which the various countries have contributed to our wants in wheat:|

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Also nach Caird:

 1) United States 35 P.Ct. 2) Germany 20 3) Russia 17 4) France 12 5) Egypt 6 Other Countries 10 Total 100.

In 1862Caird remarks – the year of largest wheat import ever known, America sent 5/11 of that whole import.

 1) Russia: Northern Ports: qrs. 312,292 Southern Ports: 2,924,300 Total: 3,236,592. 2) Germany Prussia: 1,285,906 Schlesw. Holstein. Lauenburg: 29,359 Hanse Towns: 161,746 Germany: Other Ports. 162,135 Total: 1,639,146. 3) Un. States 966,464 . 4) Chili 449,129 5) Turkish Dominions (not otherwise specified) 439,526 6) Egypt 335,025 7) British North America 157,644 8) France 137,862 9) Illyria, Croatia and Dalmatia 125,223 10) Wallachia and Moldavia 125,082 11) Denmark 96,464 12) Spain 30,170 13) Venetia 27,407 14) Other Countries: 229,375 Total: 7,995,109 .

During the Civil war and till end of 1864 the U. St. had ample harvests, which helped materially in the great struggle, but in 1865 and 1866 very deficient crop, and the effect upon the English Imports was immediate.

 1862 qrs 3,724,770 In 1862 a time of low price 1863 2,008,708 1864 1,821,926 In 1864 und ʼ65 in Europe the harvests were good. Americans had little to send, and did not want to send. 1865 271,758 1866 146,601 1867 966,464

France imports in bad, exports in good years. Mostly seasons same for France as for England. So France competitor in the general food market when English harvest bad, and on additional competitor with our English growers when our harvest is good. Adds to an abundance, intensifies a scarcity.

 1859 Qrs: 1,096,672 1860 552,601 1861 181,672 1862 224,835 1863 34,034 1864 135,485 1865 519,893 1866 810,490 1867 137,862.

### On the Ownership and Occupation of Land (Communicated)  Zusatz von Marx. Schließen (Mortgagee etc)

Economists regard little a very important [person] in agriculture – the mortgagee. He is to be found wherever land can furnish a valid security for a loan. In countries where the custom of hiring the land of another is unpopular or little practised, he becomes to a great extent the recipient of the rent. Thus in the U. States, instead of letting his land the proprietor sells it out and out, receiving we will suppose 10 P.Ct. money down, and the remainder of his claim in nine annual instalments with interest, retaining his hold upon the land as his security until the debt is fully discharged. In this case, he really receives rent in the shape of interest and capital. The same thing exists in Norway: Land is rarely, if ever, sold in that country for ready money, and the proportion of landed property mortgaged is very large.

In Flanders, a large portion of the cultivators are tenant farmers holding on short leases and at rack rents.|

73

The occupier is in the most favourable position, other things being equal, when he can devote the largest amount of capital and intelligence to the actual cultivation of the soil. This the case in the English system. He ought to be regarded as a borrower of the land or its value, at a rate of interest probably less than 3 P.Ct.

Suppose case of a farm of 200 acres, with rent of 30sh. p. acre. This represents a sum of 10,000l., which, did the land belong to the occupier, he must find from his own means or borrow at a rate of certainly not less than 4%, perhaps higher, with the risk of being called upon for repayment at the most inconvenient moment.

 Rent £300 Profit on active capital, and pay for personal service, say 15 P.C. 300 Total: 5 P.Ct. on £.12.000 £600.
 Profit on active capital (2000£) as before £300 Return from 10,000l. vested in cottage property, on mortgage, or in railway bonds etc, at least 5% 500 Total income from 12,000£ 800. Or 1/3 more than in case I, with less risk.

Let us now suppose that a man worth £2,000 resolves to purchase land and cultivate it himself, that he lays out £1,500 in the purchase, and retains £500 for cultivation. How will his income stand? Rent: £45. Profits on active capital: 50l. Personal service: £50. Total income: £145, little more than that of a mechanic. In all probability within a few years he will become embarrassed and borrow, or will be tempted or necessitated to sell his land, and at any rate he will occupy a lower position and more restricted income than if he had employed his capital in cultivating the land of another. … Im Ganzen income , on purchasing 3%, difference 7%. So long then as a class of persons is to be found who will hold or purchase land paying only 3 P.Ct., it will be the interest of the actual cultivator to hire rather than to buy land. The cultivation of land in small quantities especially by its owners bears a close analogy to the process of domestic manufacture once almost universal, which has generally yielded to the factory system.

## July 11, 1868.

### Contract Price per Cwt. for Bread. (figures just issued by the Board of Guardians of Whitechapel).

For Workhouse per cwt. For school. cwt.
s.   d.  s.   d.
From Dec. 1864 to June 1865   9   8 10   3
June 1865 … Dec. 1865 10   2 10   8
Dec. 1865 … June 1866 12   6 12   2
June 1866 … Dec. 1866 12   6 12   9
Dec. 1866 … June 1867 16   9 16   6
June 1867 … Dec. 1867 16   3 16   6
Dec. 1867 … March 1868 17   3 17   0
March 1868 … June 1868 17 10 17   0

One must never forget how great a pressure a high price of wheat is upon the poor, and how much money a low price sets loose to be expended on other things. Im obigen Fall rise of 70 P.Ct. in the first necessary of life – a most heavy burden on poor consumers, and which at once affects all the producers of the other articles which such poor consumers are by it prevented from consuming.

### Sir Morton Peto and the London, Chatham, and Dover Co.

We shall never know the truth. The parties in the Bankruptcy Court have agreed to a compromise.

The Commissioner (Bankruptcy judge) said he could give no judgment; the information before him was so incomplete. In the Bankruptcy Court, there is no one to enforce the investigation of that which the parties to the suit are willing to hide.

Originally; the Lond., Chath. and Dover Co claimed from the joint estate of £6,600,000, and Peto, Betts, and Crampton claimed £210,000 from them; now, by an „arrangement“, the Co. still reserve their right to claim for the £6,600,000, but they agree only to prove for 365,000£; Peto, Betts, and Crampton resigning all claim, of course, to the £210,000. The Lond., Chath., and Dover could not do otherwise. There are no assets of Peto, Betts, and Crampton worth the name. Omitting the Lond., Chath., and Dover Co’s claim and securities, the estate stands thus:

Liabilities.
Unsecured creditors £260,000
Dto secured £1,098,263 382,150
Less property held on security 716,113
Summa 642,676
Assets
Cash 774l.
Debtors’ Goods 1,145
Summa 1,919. |
74

This is probably the worst asset that even the panic of 1866 can show, and no matter what you prove against it you are sure to get nothing.

As is usual in such cases, there is an unsettled account which might be litigated between the joint estate of the two bankrupts, Peto and Betts, and the estate of the three, Peto, Betts, and Crampton. But it is not worth while litigating it; the estate of Peto, Betts, and Crampton will be still very bad, and if each item is thoroughly argued, the lawyers will have all the money from both estates. If both firms had money in hand, it would have been spent „on law“. Now as one litigant had no money there has been a compromise.

Estate of Peto and Betts stands roughly thus:
Liabilities
Unsecured creditors £356,654
London, Chatham, and Dover Railway 119,842
Secured creditors £427,558 162,007
Less Property held by Creditors 265,551
Total £638,503
Assets
Cash 1,471
Other Property 529,375
Total 530,846

Of course, the property will not yield that amount; and there are to be contingent liabilities in addition.

### Finance versus Finance.  Zusatz von Marx. Schließen (Lewis. Hauptschwindler)

Case decided by the Master of Rolls. Both parties eager for sudden gains, the keenest ruining the other in the end. The 2 parties: The National Land Credit Co. of Ireland, and Mr. David Leopold Lewis (a bankrupt in 1852, and 1858, and well known as one of the „inexplicables“ of the old firm of Overend, Gurney, et Co.). The contract was for a loan to Lewis from the Co. of £460,000, of which he was to have £200,000 at once in acceptances, and for which he was to pay (besides interest) a bonus of £46,000, and take shares in the Co. for £200,000, paying up £100,000. The securities deposited were debentures on certain Irish Railways, and if they were good the transaction was certainly favourable to the Co. They got an immense bonus, sold of off a great many of their own shares, and gave no real money; as was the case then with all such Cos., they made their loans in acceptances. But Lewis became a director of the Co., and used his influence there – first, to get additional bills accepted to which he was not entitled; and next, to take away the securities which he pledged for the bills to which he was entitled. He received irregular paper, and abstracted deposited security almost simultaneously. Of course, he failed without assets and the Co. have nothing except acceptances for which they are liable and which they will have to pay.

The case came before Lord Romilly in the matter of Overends. At one time that firm had lent Lewis – a man without a shilling – 500,000l., and he proposed to reduce that debt by giving acceptances of the Irish Land Credit, and transferring to them the „debentures“ or whatever it was that the Overends were pleased to call part of their security (against Lewis). The bills so deposited were above the amount which the Chairman of the Co. was authorised by the board to sign, and under the articles of association the Chairman could only accept bills by the board’s authority. The National Land Credit Co. argued that they ought not to pay the bills because they were given ultra vires and void ab initio. Lord Romilly held, that in the hands of indorsers for value and without notice such bills were good; and Co. must pay.

### From: Annual Report (1868) of the Irish Poor Law Commissioners.

Statement of Poorrates, their Expenditure etc for 16 years, ended 29 Sept. 1867.
Year ended 29 Sept. Net Annual Value of Property Rated Amount of Poor Rate Collected. Total Poor Relief Expenditure. Total Expenditure. Poundage of the Expenditure on Valuation.
Poor Relief. Total.
s. d. s. d.

1852

£11,172,586 £1,109,630 £883,267 £1,099,678 1. 7. 1. 111/2
1853 11,308,015 1,009,493 785,718 1,053,987 1. 43/4 1. 101/4
1854 11,463,595 925,154 760,152 921,384 1. 4 1. 71/4
1855 11,565,466 835,894 685,259 788,873 1. 21/4 1. 41/4
1856 11,709,934 723,204 576,390 671,066 0. 113/4 1. 11/4
1857 11,877,088 585,583 498,889 590,765 0. 10 1. 0
1858 12,091,564 525,595 457,178 550,243 0. 9 0. 11
1859 12,213,620 523,065 413,712 513,614 0. 81/4 0. 10
1860 12,280,029 509,380 454,531 558,835 0. 9 0. 11
1861 12,442,510 584,548 516,769 621,474 0. 10 1. 0
1862 12,567,495 686,715 578,789 685,776 0. 111/2 1. 1
1863 12,623,539 723,843 605,981 716,523 0. 111/2 1. 11/2
1864 12,754,954 744,894 596,465 734,219 0. 111/4 1. 13/4
1865 12,935,165 748,422 600,549 731,852 0. 111/4 1. 11/2
1866 12,989,062 12,989,026 749,757 611,831 754,667 0. 111/4 1. 2
1867 13,045,725 762,644 676,776 824,449 1. 01/2 1. 31/4

(Verte)|

### Amount of gold, silver, and copper monies coined in each year 1853–67.

Gold. (£) Silver. (£) Copper. (£) Total.
1853 11,952,391 701,544 10,190 12,664,125
1854 4,152,183 140,480 61,538
1855 9,008,663 195,510 41,091
1856 6,002,114 462,582 11,418
1857 4,859,860 373,230 6,720
1858 1,231,023 445,896 13,440
1859 2,649,509 647,064 8,512
1860 3,121,709 218,403 37,990
1861 8,190,170 209,484 273,578
1862 7,836,413 148,518 352,800
1863 6,997,212 161,172 151,648
1864 9,535,597 535,194 18,069
1865 2,367,614 501,732 57,493
1866 5,076,676 493,416 50,624
1867 496,397 193,842 33,301 723,540.
Consider difference of 1853 und 1867.
 1858 Gold: £22,793,126 Silver Bullion and Specie: 6,700,064£ 1859 22,297,698 14,772,458 1860 12,584,684 10,393,512 1861 12,163,937 6,583,108 1862 19,903,704 11,752,772 1863 19,142,665 10,888,129 1864 16,900,951 10,827,325 1865 14,485,570 6,976,641 1866 23,509,641 10,777,498 1867 15,800,159 8,020,888

## July 18. 1868.

See 9th Report. Trades’ Union Commission.

### Russian Railways.

Despite all fuss, little done till now. Computation at end of 1867 only 2,880 miles opened for traffic, and that figure has not been much added to since. Less than 3000 miles represents all the open railways in an empire nearly 10,000 miles in extent, from Prussia frontier to the East of Asia. Many of the lines actually constructed are in unprofitable districts und only calculated to develop the resources of the country when their connections are made; or they have been constructed like the Warsaw and St. Petersburg line with a definite strategical purpose, and for no other end.

Lines open for traffic:
• 1) The Polish Lines, about 450 miles extent, and perhaps the most profitable of all.
• 2) St. Petersburg and Warsaw line, 800 miles, and the St. Petersburg and Moscow line, 400 miles.
• 3) Three lines from Moscow, viz.
• Northward to a town named Serguievsk, 44 miles;
• Eastward to Nijni-Novgorod, 275 miles;
• South EastWard by Riazan to Voronej, 420 miles, with a branch from Riazan to Morchansk, 90 miles.
• 4) A 4th line from Moscow by Orel to Koursk, part of a great „trunkline of the South“. 350 miles.
• 5) A line from Riga in the Baltic to the town of Orel, intersecting the Warsaw and St. Petersburg line at Dunaburg, actually opened as far as Vitepsk only, but so far advanced that it may be considered finished throughout its whole length, 630 miles.
• In addition there are a few disconnected branches –
• from Helsingfors to Tavasthus in Finland;
• from the Volga to the Don;
• from Acsai on the Don to Grouchevka;
• from Odessa to Balta and to Tiraspol.

The North remains completely severed from the South, and the East from the West, so far as the entire country South of Moscow is concerned. By a strange fatality the South has been hitherto neglected. The main objects of a Russian railway system are commercially the opening of roads from the Baltic to the Black Sea, by which the produce of the country traversed may be sent to the ports of either sea, and strategically the opening of roads from the heart of the country to the Western frontier; and with regard to both objects it is the South which is most important. It is the most productive district, and the most populous. At least, one trunk line from sea to sea may be opened in another year.

From Koursk, which is the Southern terminus of the trunk line of the South, two branches are to proceed to the Black Sea, one by way of Kiev to Balta and Odessa, the other by way of Kharkov to Taganrog on the sea of Azoph; and the former branch is well advanced. The works are divided into two sections. The first between Koursk and Kiev (290 miles) is expected to be opened before the close of the present year, and has actually been completed for a considerable distance.

The second between Kiev and Balta (also about 290 miles) ought to be finished at the same time, but delays, opening may be retarded.

Thus by the beginning of next year there will be a complete through line from St. Petersburg to Odessa by way of Moscow and Koursk, and also from Riga to Odessa by way of Vitepsk and Orel.|

76

The second branch from the trunkline of the South, viz. from Koursk by way of Kharkof to Taganrog on the sea of Azof is, however, little more than begun. A concession has been granted for its construction, and the inauguration of the works took place last spring, a term of 18 months being fixed for the completion of the embankment. The opening of the completed line hardly before 3 years hence.

More rapid progress has been made with a connecting line between these 2 Southern branches viz, from Balta by way of Elizabethgrad and Krementchoug to Kharkov – about 160 miles (viz. from Balta to Elizabethgrad) of the whole distance of 410 miles have been completed.

There will be many deficiencies even after the second branch from the trunk line of the South has been constructed

Ausserdem in construction some other lines. More important: Railway in Georgia, from Poti, on the Black Sea, to Tiflis, nearly 200 miles, now approaching completion. Intention to extend this line ultimately to the Caspian, but the construction of a line no farther than Tiflis will be sufficient to attract to a Russian road a considerable transit trade between Northern Persia and Europe, as well as develop the resources of the Province itself. Former: a short branch of about 20 miles from Kiev to the important market of Berdytchef, a branch of the Kiev Balta line, to Volostchisk on the Austrian frontier, at which point it is anticipated a junction will be effected with the Galician railway of Austria; and an extension of the Tiraspol line to Kichinef in Besserabia to be connected ultimately with the Austrian lines through Moldavia. None of these branches far advanced. Dasselbe gilt von branch from Petersburg to Helsingfors, which will unite Finland and the line already made there with the rest of the empire.

Perhaps the most important of all in this view is the projected line from Warsaw to Moscow, on which the preliminary works only commenced this year, under the immediate direction of the Government, in consequence of rather a sudden resolution. This is a purely military line, planned to establish a firmer hold on Poland and facilitate military movements against Austria or Prussia.

Taking into consideration the branch from near Kiev to the Galician frontier, there will be 3 railway roads at least from Central Russia to Western Europe, viz. the St. Petersburg and Warsaw line, the branch from Kiev, and this new line from Moscow to Warsaw – so that the strategical objects of a Russian railway system cannot but be well provided for. This Moscow and Warsaw line will also provide a short cut from the South of Russia to the German ports on the Black Sea, and even the German Ocean, while the Russians themselves are urging strongly its connection with the Russian port of Libau, which is the only one entirely open throughout the winter. But, on the whole, these lines do not promise to be und it may be questioned whether the immediate future of Russian railways is not compromised by this renewed devotion to strategical lines. The guarantees on interest are already becoming very serious in amount, and unless met by the productiveness of the lines opened will render the railways altogether rather cumbersome than otherwise to the finances of the empire.

## August 1, 1868.

### Paris Correspondence. 30 July. 1868.  Zusatz von Marx. Schließen (Jecker Bonds etc) (Crédit Mobilier)

The famous Jecker bonds, the fons et origo of the Mexican expedition, vehemently discussed in corps législative. One strange revelation made, viz. that after an arrangement had been come to with the Mexican Government, the amount of them should be reduced 60 P.Ct., and that it should be paid at the rate of 1 Mill. piastres a year in Mexico, by means of a public sale of the bonds, the holders by some means obtained a few months later a draft in Paris for 12,600,000 fcs, and that sum was paid by the Mexican Commission of Finance without the knowledge of the French Gvt. This is one of the mysterious things about the Jecker bonds.

## August 8, 1868.

### The Credit Mobilier Judgment (in Appellation durch Court Impériale. 1. August. 1868.)

the loan to the Compagnie Immobilière, without security, and on open account, of 2 Mill. £ was entered in the accounts under the heading of „loans with security repayable at fixed dates.“ The debts with which the loan was classed were only 2,158,000l. in all. The directors had also neglected to comply with a statutory provision for depositing accounts every 6 months at the Tribunal of Commerce. It was not only wrong to conceal its nature, but the loan to the Co. Immobilière was under the society’s charter illegal.

The Impression given by the first judgment is strengthened – that that there is something worse behind than what appears. All the dissimulations practised, it is said, by the directors of the 2 societies who were nearly one and the same, had evidently for their object an appeal to credit, this being what the doubling of the capital of the Credit Mobilier came to. The relations of the two societies ought to have been brought to the knowledge of the shareholders.

„In effect“, says the judgment, „the directors of the Mobilier Society by their advances and by discounting bills and bonds of the Co. Immobilière, which the respective position of the 2 societies rendered inalienable, gave credit in reality to the latter to the extent of 4 Mill. £. St. – that is to say, more than 11/2 times its capital, and nearly half the amount of the Creditor’s Assets.“ The judgment finally contrasts the omission even to name the Comp. Immobilière in the published reports while the new capital was being got, and the long exposition of the prosperity of the latter Co. put forth at a subsequent meeting – an exposition which assisted in lulling the vigilance of the shareholders. Thus „the directors have caused the shareholders an injury for which they owe reparation“.

The superior Court is of opinion that the inferior over-estimated the damage. Die directors sollen blos ersetzen what actual loss was sustained, and for that purpose an account must be ordered. The effect in the long run the same for the original subscribers; whatever loss they are found to have suffered the directors will have to make good „jointly and severally“. The case different to those who bought under par; the directors will only have to make good what they paid for their stock. An incidental effect of the judgment will be to knock on the head certain Bourse speculations which have been gone into on the expectation that the directors will be held bound for the whole subscription.

The directors, including Michel Chevalier , who were not likewise directors of the Co. Immobilière, exempted by the superior court from the liability which the inferior Court imposed. These grounds of exemption are too favourable to negligence. Diese Kerls waren aber paid „for examining closely“, have failed in their duty.

The Imperial Court held that the directors liable were Emile Pereire, Isaac Pereire, Salvador, Piesta , and the Duke the de Galliera because they knew the situation of the Co., and because they were also on the board of the Immobilière Co.; nimmt aus, weil nicht in this predicament, M. Chevalier, Renouard de Bussière, Baron Sellière Seillière , and Grieninger. Das Urtheil erklärt that the balance sheets submitted to the Credit Mobilier shareholders were „absolutely erroneous“, inasmuch as one item figured in them – „Investments at fixed dates“ – whereas, in reality, the said investments could not from the situation of the debtors be recovered; also that another item was … „Advances to Companies and different persons, on deposit of shares and bonds“ – whereas, out of 53,000,000 fcs advanced, 52,000,000 fcs were to one Co., and no securities were held for them. Abgesehn von dem Vorschuß von nearly 100,000,000f. to the Immobilière.

### Return by Board of Customs on Imports into and Exports from France.  Zusatz von Marx. Schließen (Bullion Export Import)

A) During the first 6 months. (Manufactures and Produce)
Imports. Exports.
1868. (fcs) 1867. (fcs) 1866. (fcs) 1868. (fcs) 1867. (fcs) 1866. (fcs.[)]
Alimentary Substances. 486,850,000

327,521,000

198,954,000

531,377,000

In dieser Rubrik für Exports sind Alimentary Substances und Raw Materials zusammengeworfen.

541,288,000

669,082,000

Raw Materials. 1,058,276,000 1,009,158,000 1,004,628,000
Manufactured Goods. 121,744,000 119,470,000 110,458,000 826,568,000 848,875,000 918,443,000
Other Articles. 71,427,000 66,597,000 51,122,000 52,438,000 47,054,000 47,075,000
Totals: 1,738,297,000 1,522,746,000 1,365,162,000 1,410,383,000 1,437,217,000 1,634,600,000
Thus as for some time past, imports continue to increase, and exports to decline; and whereas exports formerly exceeded imports they are now below them.
B) Imports and Exports of the Precious Metals. During the first 6 months of 1868, 1867, 1866.
(fcs)
Gold Bullion 116,752,730 97,936,560 96,816,376 22,818,893 27,475,042 1,198,883
Gold Coin 190,010,379 204,410,220 325,915,171 158,820,950 72,910,392 107,374,404
Silver Bullion 34,658,852 23,316,397 41,728,386 17,533,685 31,659,664 81,720,265
Silver Coin 75,087,343 94,964,906 74,024,497 28,171,983 10,039,849 78,642,167
Totals 416,509,304 420,628,083 538,484,430 227,345,511 142,084,947 268,935,719
 The exports in 1868 being deducted from the imports, the stock of bullion increased by f. 189,163,793f., or 7,566,551£ in 1867 by f.278,543,136 oder etwas über £11,141,725 (£ = 25f. gerechnet) in 1866 f.269,548,711 = £10,781,948.

Also hat Frankreich allein in den ersten Halbjahren 1866, 1867 und 1868 seinem Stock of precious metals zugefügt: £29,480,224, about 30 Mill. £.

## August 15, 1868.

### French Loan. Its alleged influence on England  Zusatz von Marx. Schließen (withdrawing Gold, raising discount.)

The coin in the Bank of France has augmented, but on all former occasions the offer of new Gvt. security has tempted new money from the secret hoards of that country. Every house in France has a caisse; the amount of deposits in banks is for such a country contemptible; the whole country deposits of the Bank o. France in all its branches are only £2,000,000. So large a portion of the circulating capital of France is out of the banks in coin, that a subscription to a loan cannot be effected, as in England, by cheques and transfers; it requires an actual deposit of coin. The increase in the coin of the Bank o. France is no proof that any coin has been sent from England.

### Subscription to new French Loan. Paris Correspondent 13 August. 1868.

The loan 18,000,000£. The only money yet payable on it is the deposit of 3% = 540,000£. The loan has been subscribed for many times, say between 30 and 40 times, and the deposit is consequently much greater. Dauerte eine Woche der loan, schliest on Thursday, 13 August.

The great bankers and capitalists have reserved, as their way is, their subscriptions to the last moment, in order to be able from the manner in which the small public have „gone up“, and it may be also from private information they have the means of getting, to proportion the amount demanded to that which they want and are likely to obtain.

But that a very considerable portion of the loan will be covered by the minimum subscriptions of 5f. rente is certain. For though the petty capitalists for whom the minimum was fixed, have not, especially in provincial towns and agricultural districts, displayed anything like the enthusiasm they manifested on former occasions, and have thereby grievously disappointed the expectations that were formed, Bourse speculators, in order to get as large a number as possible of small subscriptions which are irreductible, have employed men of straw to subscribe. At Marseilles, it is even stated, one peculiarly sharp fellow „purely and simply“ hired almost a whole battalion of soldiers to take several subscriptions of 5f.

As last Thursday the quotation of Three P.Ct. stock on the Bourse was 70f. 271/2c., whereas the new stock is issued at 69f. 25c., with the right of paying in advance, with a discount of 2 P.Ct., the small 5f. subscriptions – a right which large amounts are not to enjoy – it is evident that the speculating fraternity had a considerable interest in getting into their hands as much of the 5 fcs scrip as possible. And to succeed in this object, not only did they employ poor men to subscribe, but by a premium which at one moment was as high as 3f., they induced bona fide subscribers to sell their certificates. When this became known among the lower orders of Paris, a considerable number of men and women hastened to inscribe themselves, and they carried their paper straight to the Bourse for sale. For some days the outside of that famous establishment was quite encumbered with a class of people whose dress and manner proved them to be strangers to the place, and they had no difficulty in making the bargain they sought. But the inevitable result was that the influx of scrip caused the premium to decline, so that the late comers were grievously disappointed about the sum they had counted on. Some of them having very confused notions on the great law of offer and demand were excessively indignant at being told that they must take less than the 3 fcs their friends and neighbours had got, and they applied ugly epithets to the buyers who told them so; at one moment, indeed, a band of these got up a little emeute. The upshot of all this is that whereas the Minister of Finance was most desirous to keep his loan in the hands of people of small resources, and the belief that they would hold it permanently as an excellent investment, and whereas he even, after opening the subscription, took special measures for preventing speculators from getting it and from carrying it to market, he has sadly failed. The speculators have obtained the greater part of it, and to the market it will go.

## August 22, 1868.

### The French Loan. Paris Correspondent. August 20. 1868.

The Minister of Finance, with that desire for theatrical effect which characterises the French, issued on August 15, because it was the Emperor’s fête, a report on the subscription to the new loan which closed at 5 p.m. on August 13. And yet, seeing that the subscription had been opened in every part of France and in England, it was impossible for him to be in possession of the precise Results. This he himself admits; but the importance of striking the popular imagination on a festive occasion, by the publication of startling figures, outweighed the desire, which, as a financier, he must have felt, to be precise. And startling his figures were: he wanted a capital of 450,500,000 fcs (18,020,000£), representing 19,516,245f. of Three P.Ct Rente, and the subscription gave him, he says, in round figures, a capital of 15,000 Millions fcs (600 Mill. £ St.) being equal to 660,184,270f. rente, nearly 34 × more than he demanded. Of the rente (of 19,516,245f.) f.3,141,170 were in the minimum subscription of 5f., and were taken by 628,234 subscribers. The rest, amounting to 657,043,100f. was taken by 153,058 persons. The 5f. subscriptions will be accorded entire, but the rest will be reduced pro rata. The amount of cash deposited as guarantee by the subscribers exceeded 660 Mill. f. (26,400,000£.) On these results the minister is triumphant. They surpass, he says, what was attained in any preceding loan, and surpass the last one, that of 1864, by 240,000 in the number of subscribers, 440 Mill. f. in the amount of rente subscribed, 430 Mill. f. in the guarantee deposited; 3 × the amount of capital. And he draws from these „really unexampled figures“ the conclusion: That the extraordinary desire of the public to obtain the largest part possible in the sum to be divided evidently shows regard being had to the price of issue, that the Credit of the State does not find in the present rate of the public funds its true and definitive expression. That the importance of the sums deposited with such facility in the space of a week, and which alone cover almost 11/2 of the total of the loan, is a sign of an immense force, and gives the highest idea of the accumulated wealth of France; and, lastly, he says in language somewhat awkward, „the most striking manifestation of the grandeur of the country, and of its confidence in itself, in its political institutions, and in the wisdom of the Sovereign.“ But in sober truth considerable abatement must be made from the minister’s exultation. The thing shows ways of unemployed wealth and confidence in the public funds as a security. But in great part the subscription quite fictitious, inasmuch as 1000nds of the larger subscribers knew well that they would not get what they demanded, did not want to get it, and would not be able to pay for it if they they had; the far greater part of the petty subscribers put down their names with the intention, not of making a permanent investment, but of realising a small profit by an immediate sale of their scrip at the Bourse. Und selbst das deposit of 660 Mill. fcs as a deposit bedeutet something queer wenn considered that political distrust for some time past has been so great that scarcely any investments have been made in commercial or industrial enterprise, and that |79 really money holders have little choice between placing their money in the funds or hoarding it.

To prevent as far as possible inconvenience from the locking up in the Treasury of the vast sums deposited for the subscriptions liable to reduction, the Minister of Finance began on 16. August the reimbursement of them at the rate of 9/10, and continued it on the following days.

Countries from and to which the Imports into France of Precious Metals and Exports of them took place. First 6 Months of 1868.
Imports. fcs Gold Imports Silver Export. Gold. Export. Silver.
Gold. Bullion. Coin. Silver. Bullion. Coin. Bullion. Coin. Bullion Coin.
Engld. 84,896,175 106,004,920 15,551,351 17,774,460 7,789,135 1,617,176
English poss: Mediterranean. 69,700 22,000
Italy 341,250 35,434,920 994,180 30,889,786 33,565,562 17,946,730
U. States 24,173,505
Belgium 8,383,950 32,340 10,852,486 77,620 1,114,480 1,530,190
Zollverein 4,135,050 2,119,600 30,796,792 286,732
Turkey 3,795,000 11,694,300
Egypt 3,300,000 40,995,160 168,000 168,600
Barbary States 430,780 1,747,000
British India 7,845,420 367,000
Spain 6,697,445 6,262,295 693,600 28,400
Mexico 8,490,700
Roman States 1,864,000
China 299,000
Other Countries 7,341,800 28,957,179 18,680,981 9,262,866 16,478,978 19,959,843 8,573,785 2,295,155
Totals 116,752,730 190,010,379 34,658,852 85,087,343 22,818,893 158,820,950 17,533,685 28,171,983

Switzerland ausgelassen im Export von Gold Coin für 12,826,078 fcs.

## October 10. 1868.

### Vidal. French Export of cotton goods nach England. Rouen „International Strike“. Paris Correspondent 8 Oct. ’68.

Vidal, member of the Chamber of Commerce of Manchester, has made known in France that he is forming an association for the purpose of promoting the sale at Manchester of French fabrics, suitable for export, and that he intends to have in that town a depot of the cotton, wool, and mixed fabrics of France. Some of the principal manufacturers of Alsace are, he says, cooperating with him, and the Industrial Society of Mulhouse has taken it under its patronage. At the present moment it is under the consideration of the Chamber of Commerce of Amiens, and no doubt of other manufacturing towns also.

## November. 21. 1868.

### Bank Directors and the Promotion of Public Companies.

Decision of Master of Rolls on 19 Nov. ’68 in the winding up of the Lundite Granite Co.

The Lundite Granite Co. was established 2 or 3 years ago to work the granite of a certain small island in the Bristol Channel. Having got into difficulties, there are now 2 petitions for winding it up – the first, presented by the National Bank of Ireland, which claims 13,000£; and the second presented by ordinary shareholders, who contest altogether the claim of the National Bank of Ireland and make grave charges against that Bank with relation to the Co. The substance of them is that four at least of the Directors of the Bank „had carried on a species of trade in launching and winding up joint stock companies for their own benefit; that the Debt claimed by the National Bank was illusory, and such as the shareholders of the Lundy Granite Co. were not legally liable to pay.“. Master of Rolls declares to be there subject of inquiry on the face of it; that „the conduct of the directors of the National Bank could not be conveniently or properly disposed of under a winding-up order obtained by themselves and carried on by themselves. He was satisfied of this – that the Lundy Granite Co. was under the control of the National Bank.“

## December 5, 1868.

### Credit Immobilière. Paris Correspondent 3 Dec. ’68.

The meeting of the shareholders of the Immobilière Co., which was held last week, called for permission of exposure of the situation of the Co to be made by the Directors; no votes were proposed. The situation was presented as follows:|

80
Assets.
f.
Houses and Building Ground at Paris 125,000,000
Ditto at Marseilles 93,000,000
Divers. Paris and Marseilles. 13,000,000
Total. 231,000,000
 Capital f.80,000,000 Debentures 69,000,000 Credit Foncier 73,000,000 Credit Mobilier 83,000,000 Various 19,000,000 Prevision for Paris and Marseilles 20,000,000 Total 344,000,000 Deficit 113,000,000 = £4,520,000.

Report complains of difficulty of making an exact estimate of the value of the real property of the Co. The above estimate, it avows, 61,000,000f. below that made in April previous.

Speaking of buildings and building grounds at Marseilles, it says u.a. „The Immobilière Co. let to the English Company with a promise of sale 228,000 metres (about metre = 3 ft 31/4 inch) of ground payable in 30 annuities, on condition of covering the said ground with buildings. The Immobilière, moreover, engaged to open to that Co. a credit of 20,500,000, to convert in favour of any other lender an anteriority of mortgage to the amount of 21,000,000 fcs, and to remove 20,000,000 of mortgages, guaranteeing to the City of Marseilles and to the holders of debentures the payment of the price of the purchase of the said ground by the Company. These conditions could not be executed in the conditions in which the Immobilière was placed, and the existence of these inscriptions constituted a permanent menace against purchasers obliged to cover with buildings in a brief period the mortgaged ground. The concessions made by to divers sub-purchasers by the English Co. of the rights resulting from its convention with the Immobilière aggravated the position. These sub-contractors constituted a new class of claimants, who pursued with great energy the execution of the contracts, from the fact that the Co. found great difficulty in fulfilling them. It was evident that the Immobilière had not executed and could not execute the obligations contracted. The demands for damages and interest to a large amount of the English Co. and the subcontractors could then with difficulty be opposed. … We find that the English Co. is in possession of a convention of which it preserves the execution, and by which the Immobilière is bound to make it 20,500,000f. of advances, and to raise 21,000,000f. of mortgages.“

In speaking of the property of at Paris the Report estimates the value of the Hotel du Louvre and the Grand Hotel at 40,000,000f. from the revenue they produce.

With respect to the Liabilities it says that the capital is composed of 160,000 shares of 500f. entirely paid up, and that the debentures are 232,672 of 3 P.Ct., and 19,540 of 6 P.Ct.; that the debt of the Credit Foncier is for mortgages, and that as to that of the Credit Mobilier it is a question whether a reduction cannot be demanded, on account of „the excessively high rate of commission and interest“ with which the Immobilière is charged

Opinion of Count de Germiny. (appointed by the Gvt. as President of the Co after the retirement of the Pereire) advices avoiding legal proceedings, and to obtain from the exdirectors an „important sacrifice“ which would constitute „the basis of reparative combination“. He found zealous cooperation from some of the exdirectors; but others have given a categorical refusal oder unmögliche conditions gestellt. Doch hofft er still on settlement. If he succeeded, propably probably proposal would be made to amalgamate Immobilière mit dem Credit Mobilier. On Bourse durch diesen Report Immobilière went down 90 fcs.

## December 12, 1868.

### Prof. Jevons: Amount and Condition of the Gold Coinage.  Zusatz von Marx. Schließen (Verschleiß der Goldmünze.)

At last meeting of the „Statistical Society“ this paper read by Jevons. His main conclusion summed up in these words:

„There is a mass of about 20,000,000 of light sovereigns and 5 or 6 Mill. £ in value of half-sovereigns circulating in defiance of the law. This light coin forms almost a third part of the sovereign circulation and nearly a moiety of the half-sovereign circulation; but being unequally distributed we find that in some of the agricultural districts the proportion of light sovereigns rises to 44 P.Ct. The average of deficiency of the sovereigns is fully ·53 P.Ct., or more than 10s. in 100£, while the half-sovereigns are depreciated more than twice as much, or about 24s. in 100£.“

The first branch of the inquiry relates to the amount of the coinage. … The most approved plan has been to assume the probability of a certain amount of coin being in circulation in a given year, add the ascertained amount of coinage from that time, deduct the amount exported and cancelled for lightness, and so arrive at an approximation to the truth. Jevons has applied it with great care to a new subject.

What Jevons proposed was, to find out the proportion of coins in circulation belonging to each year since |81 1817, when the previous coinage was called in. Though it would not be possible by this means alone to arrive at the amount of the circulation, it would be possible to say what proportion of it was derived from the mint-issues of recent years; and this would furnish the means of arriving at the truth. The amount of recent coinage probably circulating may be guessed at with some accuracy, and having previously ascertained its proportion to the whole coinage we may know what the whole is too.

Jevons distributed a circular letter and blank form to a number of bankers and other gentlemen, requesting them to take out one or two hundred sovereigns at random from those received in the ordinary course of business, and count the number of each year. He thus got statistics from every great centre of population in the country, and from every variety of district – 321 returns in all relating to 213 distinct towns and localities; and he received unexpected assistance in his plan. The gentlemen to whom he applied went beyond his requirement; The Governor of the Bank of Scotland procuring an enumeration of 48,647 coins at the various branches of the bank, and the General manager of the London and Westminster Bank a similar complete return for his district. Altogether he received an enumeration of 90,474 sovereigns and 75,036 half-sovereigns, a total of 165,510 coins. The result is stated in an elaborate table, showing on the data thus obtained the proportion of 100,000 sovereigns and half-sovereigns belonging to each year; but the principal conclusion for the present purpose is that „out of every 100,000 sovereigns now in circulation, 18,671 sovereigns are found on an average to bear the dates 1863 and 1864.“ The proportion varies in different localities; but after drawing up many averages, he had found this to be near the truth. According to the plan of procedure this result brings us very near the end. The proportion of the whole coinage of sovereigns to that part of it bearing the date of 1863 and 1864, being as 100,000 is to 18,671, or as 5.356 (51/3) times greater, we have only to ascertain what the circulating coinage of those years (1863 and 1864) is, and multiply by 51/3, to find out the total amount of the circulation.

This last step is easily performed. The coinage of sovereigns of 1863–64 was £14,578,000, but of this amount £600,000 at the date of the circulation were lying in bags as received from the mint – had never passed into circulation at all. The quantity of 1863–64 sovereigns circulating cannot therefore exceed 14,578,000l. minus 600,000l., or just about 14,000,000l; the whole circulation of sovereigns cannot exceed 51/3 times 14,000,000l., or in round numbers £75,000,000. A similar calculation for half-sovereigns shows that 12,819 out of every 100,000 are of the coinage of 1863–64, or about 1/8 of the whole coinage. As the coinage of those years amounted to £1,565,000, the total number of half-sovereigns cannot exceed 8 × that amount (or, exactly, 7.8 times), also nicht 24,000,000 in Number or £12,000,000 in Value.|

82
 Sovereigns in Circulation £75,000,000 Half Sovereigns 12,000,000 Coined but not circulated 3,500,000 Total £90,500,000

The real figure must be considerably below. Although 14 Mill. £ of the coinage of 1863–64 passed into circulation, some portions of it must have been exported or melted; and every deduction necessary on that account must be multiplied by 51/3, and deducted from the above total. Now the export of coin in 1865, 1866; 1866, and 1867 was £8,664,653, and it may be safely assumed that the export of the 1863–64 coinage corresponded in amount at least to the proportion of that coinage to the whole coinage; it may have been greater, as exporters prefer the newest and heaviest coinage, but it cannot well have been less. In other words as the sovereigns of 1863–64 form about 1/5 of the sovereign currency, they must at least form 1/5 of the above exports. We have thus to deduct l,750,000l. from the 14 Mill. £ of 1863–64 coin which passed into circulation, giving 12,250,000l. the figure which we must multiply by 51/3 to arrive at the total amount of sovereigns in circulation. This would yield 65,600,000l., but reducing this a little for the sake of round numbers, Jevons gives the following as his final estimate:

 Sovereigns in Circulation £64,500,000 Unmixed Sovereigns (i.e. coined but not circulated) 3,500,000 Half sovereigns 12,000,000 Total 80,000,000

Even this is a maximum figure, for the extent to which the heaviest new coins are melted (erst selected für that purpose) by the most respectable capitalists and bullion dealers cannot be calculated, though the practice is known to prevail. Aber even so, this estimate considerably less than the lowest of the most authentic estimates previously made. The most important that of , in one of his appendices to Tooke’s „History of Prices“, applying the old method. His figure for 1856 was 75,000,000l., and would now be 94,000,000, 14 Mill. £ in excess of the one now made.

Prof. Jevons concludes this part of the subject by an estimate of the whole circulating medium in the country, deducting from the note circulation the amount which merely represents gold.

 Gold Coin £80,000,000 Silver Coin 14,000,000 Copper Coin 1,000,000 Bullion (say) 15,000,000 Notes issued by Bank o. E. on securities 15,000,000 Issues by other English Banks: £5,000,000 Specie to be subtracted: £1,500,000 3,500,000 Scotch and Irish Issues: £10,000,000 Specie to be subtracted: 4,500,000 5,500,000 Total £134,000,000

The second branch of the inquiry relates to the condition of the coinage – the practical question being how large a portion of the coin in circulation are under legal tender, and how much the deficiency is. To obtain a conclusion on this point Jevons weighed singly, upon a delicate chemical balance, 434 Sovereigns and 178 half Sovereigns drawn from the ordinary circulation at Manchester. He finds the Average Annual Wear of the |83 Sovereign to be .043 grain (43/100) or .00276 grammes. As the coins when issued weigh 7.9871 grammes, and cease to be legal tender when they fall below 7.9379 grammes (122·5 grains), about 18 years will suffice to reduce a sovereign on the average below its legal currency. Age and weight of every sovereign will of course not correspond, for some are coined heavier than others and the wear is different, but the average is true. „It would“, says Jevons, „be hard to name a subject in which reasonings by average may be more safely trusted than the present, because the coinage consists of an immense number of pieces which are constantly circulating through every part of the country and in every kind of business.“ Having thus settled the average annual loss and knowing the average weight of issue, Jevons has the means of calculating from the first table he prepared how many of the coins now in use are under legal tender and what the deficiency in those coins is. As to what are under legal tender the calculation simply is that as a coin falls below legal tender in 18 years the proportion of sovereigns in circulation of a greater age than 18 is equivalent to the proportion of illegally light sovereigns. The proportion of coinage of a greater age than 18 being 31.5 P.Ct., it follows that this is also the percentage of the light to the total coinage. In 1840 and 1841, when there was a partial recoinage, the proportion of light gold did not rise of 25 or 28 P.Ct. There is an extraordinary difference of age between the sovereigns in the Bank of England and those outside it. The Bank being rigorous in cancelling light gold, light coin avoids it.

Return of 1,000 Sovereigns in Bank o. England, and in London and Westminster Bank.
Bank of England. Per Cent London and Westminster Bank per cent.
Coined in 1817–1819 0.0 .2
1820–1829 .4 6.9
1830–1839 .2 7.7
1840–1849 2.3 18.7
1850–1859 23.5 30.3
1860–1867 69.1 33.6
Australia 4.5 2.6
Total 100.0 100.0

There is a general complaint of the lightness of the coinage. In the following estimate the percentage determined by weighing except in the places marked with an asterisk:

Per Centage of light coin in the following places.
Sovereigns P.Ct. Half Sovereigns P.Ct.
*Ballyshannon 25 50
Buckingham 57 48
Dartford 65 48
Dublin 47 48
*Dundalk 25
*Dundalk 20
Farnham 56 74
*Halifax 25
Lampeter 15 87
Leominster 29 58
Liskeard 38 30
*London 62 70
London 66 88
*Liverpool 50 50
Nenagh 23 49
*Norwich 70 70
*Ramsgate 66
Wells 75 94

The result is curiously illustrated by tables which Jevons gives as to the age of the coin – showing that the coin is newer in the manufacturing and mining districts, and that the proportion of old coin increases as we pass in the agricultural districts. The motion of the coin is mostly indiscriminate, but there are prevailing currents such as those caused by the influx of tourists into Wales and North Scotland. The main current however is produced by the habit of dealers in cattle and farm produce to make payments in gold, which is the cause of the influx of coin into agricultural districts. The consequence of this is that as the imports of those districts are likely to be paid for in draughts gold tends to accumulate in them, and it becomes necessary from time to time for the local banks to make remittances to London. But very naturally the banks select and remit the heaviest coins so as to avoid the loss on light gold which they are obliged to receive in the regular course of business. Notwithstanding, this „sieving and picking“ which is constantly going on, Jevons has unquestionable information that in the year ending 30. Sept. 1868, one large banking establishment lost on its light gold no less a sum than £6,716, in addition to „a large loss in interest on the stock we keep, so as to avail ourselves of any opportunity of placing the coin in circulation.“

Assuming that on the average all the deficiency on coin since 1850 is covered by the allowance for wear, it is found that the deficiency on the earlier sovereigns amounts to 307l. in 100,000l., or nearly 1/3 P.Ct. This would give a total deficiency to be made good of 200,000l. The proportion of deficiency in halfsovereigns is greater. The average life of a half sovereign as legal tender is only 71/2 years; but taking 10 years as a safer figure it is found that this gives a proportion of 47 P.Ct. as light, or 53/4 millions out of 12 Mill. The actual amount of the deficiency in coins which are not legal tender is 100,000l. Altogether the recoinage necessary will be |84 20,300,000l. in sovereigns and 5,700,000l. in halfsovereigns, on which the loss will be as stated – 200,000l. and 100,000l. respectively. Hence:

 To make up deficiency of weight: £300,000 Dt. Dt. of fineness 7,000 Mint expenses 41,000 Total 348,000

Folgende Table is the Basis of Jevon’s calculation:

Sovereigns Half Sovereigns
Year of coinage Number issued from Mint. (000’s omitted.) Number existing in 100 Sovereigns circulating Number issued from mint. (000’s omitted) Number now existing in 100,000 Half Sovereigns circulating
1817 3,235 198 2,080 384
1818 2,347 8 1,030 136
1819 4 1 3
1820 932 308 35 43
1821 9,405 738 231 8
1822 5,357 485 8
1823 617 87 224 35
1824 3,768 334 592 167
1825 4,200 1,239 761 247
1826 5,724 2,201 345 181
1827 2,267 915 492 172
1828 386 38 1,245 430
1829 2,445 1,057 4 12
1830 2,388 843 11
1831 599 428 1
1832 3,737 1,718 8
1833 1,225 645 16
1834 15 134 4
1835 723 340 773 542
1836 1,714 937 147 113
1837 1,173 1,080 160 148
1838 2,719 750 273 245
1839 504 223 1 53
1840 8 67
1841 124 109 509 774
1842 4,865 3,057 2,223 4,654
1843 5,982 3,298 1,252 1,277
1844 3,000 1,918 1,127 2,796
1845 3,801 2,178 888 645
1846 3,803 1,987 1,064 2,395
1847 4,667 2,797 983 897
1848 2,247 685 411 885
1849 1,755 898 845 1,912
1850 1,402 1,285 180 438
1851 4,014 1,756 774 1,649
1852 8,053 4,082 1,378 2,559
1853 10,598 6,536 2,709 8,400
1854 3,590 2,277 1,125 253
1855 8,448 4,020 1,120 7,606
1856 4,806 2,831 2,392 4,374
1857 4,496 3,200 728 2,804
1858 803 1,060 856 2,412
1859 1,548 1,565 2,204 9,561
1860 2,556 3,070 1,131 4,185
1861 7,625 5,226 1,131 4,438
1862 7,836 7,005 550
1863 5,922 8,202 1,372 5,281
1864 8,656 10,469 1,758 7,538
1865 1,450 1,437 1,835 9,005
1866 2,774 7,542
1867 63 1,054
Australian 1,619 1,078
100,000 100,000

## December 26, 1868.

### Rates charged in Ireland on a main line.

d.
1) Grain 11/4 per ton per mile
2) Drink 13/4
3) Salt provision 13/4
4) Pitwood 03/4
Cut timber 11/4
5) Artificial manure
6) Groceries 21/2
7) Bale goods, including wool 21/2
8) Bricks, Tiles, slate, Stone 03/4
Drain pipes 13/4
9) Iron castings and machinery 21/2
Iron agricultural Implements. 41/2
10) Potatoes 11/4
11) Coal and Coke 3/4 d to 1d.
These charges often the highest the Co. can by law make.|

### The Difficulties of American Finance.

Johnson, the President, in his message: proposes to pay off the debt and interest, by paying the interest alone for 161/2 years.

By Act of Congress of 1867 adopted against the open remonstrance of the Secretary of the Treasury, a large part of the internal revenue was sacrificed. No deficit yet, but the process of diminishing debt arrested.

Last financial year ending 30. June 1868. (3s. berechnet = 1\$.)
Revenue. Expenditure.
Customs £24,669,000 Civil Service £9,002,000
Lands 201,000 Pensions and Indians 4,182,000
Direct Tax 268,000 War Department 18,487,000
Internal Revenue 28,663,000 Navy Department 3,866,000
Miscellaneous Sources 7,042,000 Interest on Public Debt 21,064,000
Total 60,843,000 Total 56,601,000
Surplus. 4,242,000.

At this rate of surplus it would take a very long time indeed before the American Debt was discharged. But the real situation not so good as this. The law which diminished the resources of the Treasury was not passed till 31 March, 67. Its effect will be only seen this year. What that effect is may be gathered from:

 He got in 1867–68 £60,843,000 Now expects according to the altered laws 51,209,000 Difference: 9,634,000

He expects a small surplus, by estimating the expenditure at £50,422,000, which is a mere hypothesis.

 Sum actually spent in first quarter of the year £15,772,000 If remaining quarters proportionally, the total will be 63,000,000 On a revenue of £51,209,000 this would leave Deficit of 12,000,000 If the Expenditure was as that of last year 56,601,000 Deficit would be 51/2 Millions £.

The Situation made still plainer, if, as Secretary does, observed the:

 Year ending June 30, 1866 £46,384,000 from Internal Revenue 1867 39,904,000 1868 28,663,000 1869 part estimate 20,810,000

Descent from 46 Mill. £ to 20 Mill. in 3 years is very great and upsets every calculation. Partly there are great difficulties in Collection and the complaints of the Department are very loud; but partly also, as by the measure of last year, part of the war taxation deliberately thrown off by the American people. Still the pressure of the remaining taxation is still severe. The yield of the Customs has been stationary.

 Year ending June 30, 1866 £26,856,000 1867 26,462,000 1868 24,669,000 1869 part estimate 26,201,000

This is not the statement of a progressive country. Probably the increasing skill of smugglers keeps the revenue down and hides the real progress made – the tariff likewise growing more and more prohibitive; but there is also great depression, as the complaints about ship building and other trades prove.

American Industry suffers because of an irredeemable currency, which causes fluctuations in prices and consequent uncertainty in performing contracts. McCulloch wishes to get rid of this irredeemable currency, suggesting last year the contraction of the currency till it equals gold in value. That suggestion was scouted. His idea now is to make contracts to pay in coin, as well as „in lawful money of the U. St.“ permissible. In practice it is hoped this would lead to the abandonment of irredeemable paper.

The interest of the debt is out of all proportion excessive when the position and resources of the State are considered. It would be a great gain to pay less. But credit of U. St. bad, mainly through fear of repudiation, especially through the fear that the principal of certain debts will be paid off in depreciated currency. McCulloch verlangt daher a declaration of the Legislature, that the principal shall be paid in „that currency which is alone recognised as money in the dealings of nation with nation.“ It is the height of folly to go on paying a burdensome interest for 17 years for the sake of paying off a smaller sum in principal at the end of that time. Repudiation loans in the future.

Johnson, in his message, directs attention to the circumstances under which high rates of interest were agreed to. He dwells on the huge profits of the capitalist who holds obligations for 300 and 400 P.Ct. more than the U. St. received. He represents America as paying tribute to the foreigner, and national debts as characteristic of monarchies.

Even McCulloch speaks quite frankly of the people of the West being „more sensible of the burdens of Federal Taxation than are those of the Eastern States“, because few bonds are held in the former.|

86

The recent declaration of the House of Representatives passed in consequence of the President’s proposition:

„That all forms and degrees of repudiation of the national indebtedness are odious to the American people, and that under no circumstances will their representatives consent to offer the public creditor as full compensation a less amount of money than that which the Gvt. contracted to pay him.“ … this does not settle the grave doubt about the 5-20’s – the dispute as to what money, whether coin or greenbacks, the principal is to be paid in.

### Paternal Landlordism.

M. A. Shelton (dieser case a few days since before the Birmingham Bankruptcy Court), having become bankrupt, applied to pass her last examination and for an order of discharge. She was somewhat sharply examined by her assignee, who, as her and her late husband’s attorney, had become her creditor, as to her disposal of some ewes and lambs, and some cows, which it appeared she had given to her children. Paternal system of landlordism in the Midlands. Her husband had died some time ago, and since his death she had been struggling to maintain her family by the occupation of the farm. „We were there 40 years”, she said, „and we did everything – buildings, gates, and everything on the farm; for it was like an uninhabited place when we went there; and we never got a farthing for all we had done. My poor husband said on his dying bed: I am sorry for you. I have been working all my lifetime for the Squire, not for you and my family“. Those were his dying words.

She said: „Only 6 years ago all the land wanted draining and we had to do it all, except just putting the tiles in. Then my poor husband lay ill 11 weeks, and we never had the least transactions of any kind, and I had to sell my beasts and pay some debts directly after his death. Then I had half a years’ rent and above 170l. odd to pay. I was obliged to sell my stock and I paid all that off. Then at the latter end of the year I had another rent to pay, and then they sent me out of the farm without a farthing for all we had done upon it. There was not anything in the world on it but what we built ourselves – we improved the land as well as the building. We built a lime-kiln, and we bought all the manure round that ever we could get … . After the death of my husband it became time to sow turnips and oats. The landlord said he would enter an action against me if I sowed oats, and I did not do it. He said he would take the ploughed land to himself at Michelmaas, and I did not expect to pay rent after that. He took the ploughed land at Michelmaas, and charged me with with rent to Ladyday.“ Und wegen dieser lezteren rent after the land was given up, erzwingt der Squire noch adjournment des Verfahrens vor dem Bankruptcy Court.

# Inhaltsregister für 1868 Jahrgang. („Money Market Review“ und „Economist“.[)]

## I) U. Kingdom.

• 1) Money Market, Bank o. E. etc, Currency. Exchange.
• Movement at Bank o. England and Clearing House. 1868. (p. 3–10) Notes to same. (13–18)
• Capital of Bank o. E. (44) Profits of (29) Joint Stock Banks Profits und Rate of Discount (23, 28) Banking Progress, First Half Year ’68 (39)
• Money Market. Anfang 1868 (59) March (64) October (47, 48) August. Alleged Influence of French Loan (78)
• Bank Act. 1844 and Gold Export. (4 41)
• Changes in Rates of Discounts. Action and Reaction. (50) 28 Nov. und Dec. 5 (54)
• Annual Average Minimum Discount Rates of B.o.E. (42)
• Influences of Prices of Articles on Money Market (65)
• Gold, Silver, and Copper coined 1853–’67 (75)
• Gold Imported und Exported. U. Kingd. 1858–1867. (75)
• Worn Coin (31)
• Seignorage on Coin (46)
• Amount and Condition of Gold Coinage in U. Kingd. (Jevons) (80–84)
• Foreign Settlements on London Stock Exchange. (53)
• Negotiations of Foreign Bills of Exchange in London (65)
• 2) Crisis of 1866 und Nachwirkungen.
• Das Jahr 1867. Bullion movement. (42) Rate of Discount (19) Dates of ’67 (21) Silk. Agricultural Implements. (22) Its Commercial etc aspects (19) Alterations in values of securities (20, 23)
• Causes of Present Depression (22, 25), Influence of Commercial Depression on Railway Revenue (44, 45)
• Crisis of ’66 und Nachwehn. (31) Fall of Revenue ’68 (70)
• Panic and investments. (40) Market Value of Financial Co’s. Shares (33–35)
• Fall in Prices since ’66. (59)
• Nature of Commercial Crises. (61) Agra and Masterman’s Bank (40)
• 3) Commercial Morality.
• 4) Railways.
• State Control (21)
• Caledonian (21) (28, 29) Accounts. Ersatz des Verschleisses (24)
• Midland Rail. Börsenmogelei und Directors. (24)
• Brighton Railway Verschleiß von steamers (25) Falsification of Accounts. Working Expenses (34) Wear and Tear (31) Paying weight, dead weight (28) Construction and Management (31) Steel and Iron rails. (26)
• Patterson: Railway Finance (27) (29)
• Railway Trains. 1866. (25, 30)
• Capital of Railways in U. Kingd. 1866 (24, 42) in 1867 etc (55, 56)
• Bird: Railway Accounts. (27) Estimate of intrinsic Value id. (38, 39) Railways Accounts defended durch Saturday Revue (27)
• Railway Profits. Delusive Gvt. figures. Their Competition. (22)|
• 88
• Railways, 1845–46. Hudson. (37, 38)
• Banks and Railway Cos. (24) Lawyers and Rail. (24)
• Chatham, Lond., Dover and Landed Property (45)
• Rates charged on goods in Ireland on a main line. (84)
• New Act of ’68 (41)
• Injuries from vibration und smoke of Railways (34)
• 5) Cotton.
• Cotton Prices 1866, ’67, 68 (28) Manchester Trade Circular Jan. 1868 (27)
• Import, Export. 1867. (30)
• Market 1868 (32, 43, 48, 49, 50, 56)
• Cotton in U. States. (57, 58)
• Cotton Statistics Bill. (35, 37, 40, 68)
• 6) Wheat.
• Importations. 1868 (43) Imports ’66, ’67, 68 (53)
• Average Cornprices. (67)
• Sources from which U. Kingd. draws wheat. Rangliste der in U. Kingd. wheat importirenden Ländern changed in last years. U. St. Russia. Germ. (71, 72)
• Contract price per cwt. for Bread. Board of Guardians of Whitechapel 1864–68 (73)
• 7) Notes on Trade. (facts, Statistics)
• Board of Trade Returns. (29, 31, 40, 44, 48)
• Foreign Trade. First Half Year ’66, ’67, ’68 (43, 52, 53)
• Imports, Exports ’68. (62)
• Wool Trade. Oct. 68 (45)
• 8) Land
• Rent and Value of Land. (60)
• Peasantry Proprietors. (61, 62)
• Ownership and Occupation of land (72, 73)
• Paternal Landlordism. (86)
• 9) Wages, Pauperism, Unions etc. Incomes, Taxes etc.
• Insolvency of Trades’ Unions. (69)
• Bonus System (68, 69) Industrial Partnership etc (71)
• Meeting of Ironmasters. Reduction of Wages. (66)
• Collieries. Insurance (56)
• Pauper Expenditure in Metropoles since 1863. (68)
• Labor of Superintendence (Venezuela) (38)
• Bill for abolishing Houses unfit for human habitation. (70)
• National Income. (Dudley Baxter) (26, 27)
• State Revenue and its sources. (51, 52) The Succession Duties. (60)
• 9) Miscellaneous.
• Fires and Incendiarism. (58)
• Council of Foreign Bondholders (49)
• Conversion of Iron into steel. (46, 47, 49, 50, 54, 56)
• Annual Rate of Mortality U. K. 1867 (60)
• 10) Ireland.
• Income Tax (39)
• Emigration. Wages etc (67, 68)
• Annual Report of Poor Law Commissioners 1852–1867 (74)

Deficits (24)

## III) Russia:

Railways. (75, 76)

## IV) Belgium:

Coal Export. (66)|

## V) France.

• Movement of Bank of France (11, 12)
• National Debt. (36) Le Bilan (65) Cochut on French Finance (70) Einhorn (71)
• French Budget. (61)
• Subscription to New French Loan (68) (78) Ditto Correspondence von Aug. 22 darüber (78, 79)
• French Railways and Gvt. (70, 71)
• Gvt. and Messageries Impériales (38)
• Calls of Companies in 1866. (59)
• Credit Mobilier und Immobilier (61, 68, 76, 77, 79, 80)
• Jecker Bonds. (76)
• Vidal. Internat. Rouen (79)
• Imports and Exports of Precious Metals. ’67 (63) First 6 Months ’68 (77) Countries of Import of Precious Metals and Export from France during same time (79)

## VI) Un. States.

• Finances on 1st Jan. 68. (26) Report of Wells. (62) New Act of ’68 (66) Difficulties. ’68. McCulloch’s Report. (85, 86)
• U. St. Debt (35)
• Currency. (27) Premium on Gold (47, 48)
• Decline in Trade. Depression in Industry (28, 40, 54, 60, 61)
• West Wisconsin Railway and Land (38)
• Pacific Railway (40)

## VII) India.

• Exchanges. Past and Present. (20, 21) Currency of Sovereigns etc (56)
• Indian Trade during last 15 years (31) Indian Trade ’68 August (40)
• Irrigation (36, 37, 50, 52, 54)
• Indian Railway Financial Aspect (41)
• Indian and American Cotton. (65)