„Economist“ (1866 und 1867)
„Money Market Review“ (1866 und 1867)|
Economist“ (Jahrgang 1866) vol. XXIV.
Saturday. Jan. 6, 1866. N. 1167.
The Economist, 6. Januar 1866. S. 1.
Eight Per Cent.
Bankrate at 8%. Bank hӓtte früher raise sollen, zu 7%. Dann jezt nicht nöthig, den screw so scharf zu drehn. »We … carry on the trade of the country on the minimum of bullion which will suffice; and if the Banks are but a little behind in their protective operations, the result may be very serious … . If Peel’s Act is to be worked, the Bank must keep so strong (its reserve) at the middle of a quarter that these calculable drains at the end of a quarter shall not become catastrophes in its policy, shall not spasmodically affect the value of money, shall not jerk the money market.«
The Economist, 6. Januar 1866. S. 1–3.
What The Value of Money in 1866 is likely to be.
Schließen Unter diesem heading entdeckt der wiseacre: 1) Daß seit dem Freetrade, Abnahme auf einem Markt, Expansion auf dem andern sich compensiren. Vorher we had nur access to a few markets; wenn diese overstocked, all our trade was suffering. Jezt »for the most part, trade augments with regularity[«];
2) Our system of credit is better than it used to be. Die Bank Kommentar von Marx.
Schließen (the world, sezt er emphatisch hinzu) kannte früher das Geheimniß nicht Bullion festzuhalten durch Erhöhung des Zinsfusses. »When in old times our credit system was shaken by catastrophes, our commerce languished for months, and money was cheap because no satisfactory persons wanted to use it.[«]
3) Now we lend more variously than we used to do … to foreign nations, to compagnies for purposes of work and construction in this country in forms and in quantities wholly unexampled. Daher the value of money, the average value, has permanently risen in Lombard Street.
We shall still deal very largely with the countries which take our bullion, and therefore the value of money will be to some extent affected by the abstraction of bullion. In 1866 his this cause of dear money will not be so potent as in 1864 and 1865, though it will be more potent than in common years. …
But, now there is no reason to fear the least diminution of credit. … As far as our credit goes, we may expect 1866 to be a normal year.
These variations of the rate of interest the moment a foreign drain sets in are inevitable, so long as we endeavour to conduct a vast trade, or rather two vast trades, one of selling, the other of lending, upon the minimum of bullion which will support that credit.
The Economist, 6. Januar 1866. S. 4/5.
The Duration of our supply of Coal. ( Titel
von Marx notiert in „Heft 3. 1868“ der „Hefte zur
Agrikultur“ (MEGA² IV/18. S. 587.14) und im Notizbuch
1878/1879 (IISG, Marx-Engels-Nachlass, Sign. B
Schließen Jevons’ book)
»At least half the coal raised in Gr. Brit. is consumed by the various branches of the iron trade.[«] |2 Bei der present rate of increase, our coal exhausted in 100 years. Wir kennen jezt thickness and accessibility of our coal mines. Bleiben in Great Britain, down to a depth of 4000 feet, 80,000 millions of tons. Unsre Jӓhrliche Consumtion 1860 war 80 millions. So die available coal would last 1000 years. Aber Consum increases 31/2% p.a.; in 1880 will be 160 millions; und if it continues thus to increase, the whole 80 000 mill. worked out before 1960. Aber früher. Weil gerechnet all coal down to 4000 feet: no coal mine has yet been worked at a greater depth than 2,500 feet. Going deeper enhances the price und mit dieser Preiserhöhnung gehn unser rate of progress und special advantages zum Teufel. Mit tiefrem Arbeiten: the heat grows more insupportable, the shafts and passages longer, the danger greater, the ventilation more costly, the quantity of water to be kept out or got out more unmanageable. A very short period may raise engine coal and smelting coal from 5s. to 6s. per ton. Now a cotton mill of ordinary size will often use for its steam power 80 tons of coal per week; this at 5sh. is £1,000 a year; at 10s. per ton it is 2000. Aber die cotton mill is full of machinery; grosses Kostenitem dieser Maschinerie ist coal used in smelting and working the iron of which the machinery is made. Ebenso in den Transportmitteln, welche von und zu der Fabrik führen, in den railways und steamboats Kohle grosses Kostenitem.
The cost of carriage, therefore, which is a very large item in the contingent expenses of our factories, will be greatly increased both directly and indirectly by a rise in the price of coal.
Grosse Oekonomie im Gebrauch der Kohle schon eingeführt; in smelting iron we use 2/3 coal less than formerly, in working the steamengines 1/2 less.
It is only a rise in the price of coal that will goad us into a more sparing use of it; and this very rise of price is the proof and the measure of our danger.
Of all articles of trade and industry coal is the most bulky in proportion to its value; and it is the fact of having it at hand that has given us our manufacturing superiority.|3
Of 136 millions of tons now annually raised throughout the world, Gr. Brit. produces 80 mill., the Un. States only 20.
Their (the U. St.) coal fields are estimated at 196,000 □ miles in extent, ours only 5,400. But this is not all: their coal is often better in quality and incomparably more accessible than ours, especially in the Ohio valley. In some places the cost at the pit’s mouth even now is 2s. p. ton in America, against 6s. in England.
Jan. 13, 1866. N. 1168.
The Economist, 13. Januar 1866. S. 29.
The State of the Money market.
For the present the foreign drain Zusatz von Marx.
Schließen (to the East) is checked; the silver market in London is dull.
Where does our gold go? Früher, in drain to India, silver went, nicht gold. Grund: Till a recent period, whatever silver was wanted for India was collected on the Continent and sent here. We sent it on to India. But now there is a French compagny sending silver, and French seamen carrying it from Marseilles without its coming here … Our gold goes to pay for the silver which formerly used to be sent to us bodily; but now it is used on our account indirectly, it is transmitted from Marseilles to India to pay our debts.
Many people wonder why, when there is a quick rise of money in Lombard Street, it should be cheap on the Stock Exchange. It is cheap in the latter, because it has quickly changed in the former. The quick change makes people uncertain und dann der easiest market ist der Stock Exchange „from day to day“. Discount houses etc deal dann möglichst wenig in bills, use it daher on the Stock Exchange, where they can have it at once, just because they do not feel sure enough of the future to lock up their resources till definite dates.|
The Economist, 13. Januar 1866. S. 30/31.
Our Trade with America.
Zusatz von Marx.
Schließen (U. St.)
Alarmists raise warnings.
|Our exports to America||up to 31 Oct.||1864||15,403,017l.|
|Nun 1859 our export to the U. St.||24,417,000|
Wenn also nicht in Nov. und Dec. 9,600,000l. importirt, so geringer als 1859.
England und Europa jezt large buyers of American securities, railway debentures und 5.20 bonds the imports which balance our exports.
The Economist, 13. Januar 1866. S. 32/33.
Market Prices of Investments in the Year 1865.
As a rule, and in the long run, prices are the true indicators of value.
U. States: debt of more than 600 Mill. l. St. and annual charge upon that debt to be raised by taxation: more than 40 mill. l. St. Our Railwaystocks not improved in 1865. Erklärt dieß, weil sonst profitlichere investments. Daher preference shares declined. Ferner: the original railway stocks possessing no guarantee have been injuriously affected by the recent and prospective commitments of nearly all railway companies to raise additional capital for the formation of new railways. As yet there is no material decline in dividends.
Shares of the banks: On average prices wonderfully supported in 1865, mit exception of Indian and some other banks.
Nicht so die Finance Compagnies. Fall ihrer Prӓmien (z.B. Credit Foncier and Mobilier of England, Financial Discount, General Credit, International Financial, London Financial, Land Securities, Oriental Financial). Obgleich die meisten dieser undertaking undertakings »have been in appearance successful and have paid large dividends«.|5
Consols (1865) fallen von 893/8 zu 873/16. Actual decline von beginning to end of the year 2%. Hauptsächlich, weil andre securities profitlicher waren.
The Economist, 13. Januar 1866. S. 35/36.
A Practical Check on Bubble Compagnies.
Consols depreciated, aber noch mehr limited liability shares, manche wholly unsaleable or standing at a disastrous discount, with heavy calls looming in the future …
Limited Liability is not really the sole cause of the present pressure, which is due largely, if not chiefly, to the feverish energy imparted to trade by the inflation of the currency in America and to the derangement of the cotton trade.
Bubble companies for working a patent, or constructing a railway, or „taking over“ a line of steamers, or a private business, or purchasing and working a mine in Mexico, a tea estate in India etc
January 20, 1866. N. 1,169.
The Economist, 20. Januar 1866. S. 61.
The Effect of the 8%.
No bullion gone out; but none yet attracted from abroad. We have a great though suspended drain to India and Egypt for cotton hanging over the market. Dann hovering about Ejyptian Railway loan etc.
Market Prices of Investments in the Year 1865.
The Economist, 20. Januar 1866. S. 63–65.
Insurance Companies und Miscellaneous (embracing, die latter, the majority of the Limited Liability Companies recently created).
Insurance Cos. Meist profitable undertakings; singular steadiness of the market prices of their shares.
97 descriptions of stocks and shares quoted
in the insurance companies’ list of the Investor
Zusatz von Marx.
Schließen (leztres Beiblatt zum „Economist“) nur 16 at a discount, dieser trifling und [»]belongs chiefly to the shares of the new marine insurance cos«. |6 In den meisten lӓnger etablirten Dingern dieser Art (insurance) Prӓmiums der shares im market.
Miscellaneous: In dieser Liste 519 different descriptions of stocks and shares quoted of which 286 mit limited liability, 233 aber unlimited.
Die 233 descriptions of unlimited shares comprise canal, gas, steam marine, dock, water, and other cos’ cos, darunter nur a few cos’ cos of recent creation. 63 von diesen 233 quoted at the close of 1865 at a discount, der remainder meist at a premium.
Von den 286 denominations of limited liability shares in the miscellaneous list, 80 were quoted at a premium, 94 at a discount, 112 without any market quotation, which in effect may probably indicate that they were unsaleable in the market at any price. Also result at the end of 1865:
|Marketable and profitable||80 or||28% on the whole|
|Marketable at a loss||94 or||33%|
|Unsaleable, involving great loss||112||39|
So 72% dieser limited liability cos’ shares
entailed loss of principal upon the original subscribers at par, or
their representatives, the succeeding proprietors. Aber dennoch
nicht so large proportion »valueless or even unsound Zusatz
Schließen !« Kommentar von Marx.
Schließen By no means, dear me!
»there is not, so far as we
can judge from dividends and market prices, anything so rotten in
our new mode of speculation as to preclude its resuscitation at a
more propitious moment.[«]
Kommentar von Marx.
The Economist, 20. Januar 1866. S. 65/66.
Schließen Insurance is as unsafe as gambling; or, more correctly, it is gambling, if the number of risks to be insured is not enough to ensure an average result … Chance is eliminated from insurance by the number of ventures (Die Grösse der Area, worüber ausgedehnt:)|
The Economist, 20. Januar 1866. S. 68.
Un. States Commerce mit France
|In den ersten 11 Months||exports from U. St.:||34,492,632f.|
|Import into U. St.:||84,456,666.|
Assuming that the month of December averaged the 11 months preceding, 37,376,018f. import to 91,494,749f. export. So die U. St. indebted to France for 54,127,731f. worth of goods. Davon abzuziehn 5,793,000f. of gold coin and bullion und 169,800f. of silver received in the 11 months; also, 5,577,390f. of the payments of silver which French silversmiths call regrets. Rechnet man proportionell ab so viel für December, so bleibt indebtness indebtedness der U. St. to France von about 44 Mill. fcs od. 1,760,000l. St. Nicht viel. It only exceeds by a little more than 1 Mill. l. St. what was due at the end of 1864. Jedoch an important portion of the trade between France and the U. St. carried on via England, and figures in official returns as done with that country.
January 27, 1866. N. 1170.
The Economist, 27. Januar 1866. S. 89/90.
The Memorial of some Liverpool Merchants on the
They ascribe „the excessive and usurious rate of interest“ dem Act von 1844 und Bank of England monopoly. Both to be abolished. Jede Person und Compagny soll have power to issue notes, so viel they please, upon the deposit of sock stock or Exchequerbill, and so obtain a sufficiency of currency for the discount of bills and the commercial needs of the country.
Whether the currency be issued by 1 person or many, wether whether separated or combined with banking, it is equally a part of the credit system of the country; and that credit system can only be supported in one way. The credit of A means that A will pay gold or silver; it is a believed promise to hand over such and such sums in the precious metals if required. To secure the performance of such promises, a large stock of the precious metals must be kept.|8
The only known mode of keeping such a stock is by raising the rate of interest.
Das system, verlangt von den Liverpool memorialists, war das in New York before the civil war. Every bank could there issue notes, but every bank was obliged to deposit „security“; but that system did not absolve the banks from the necessity of keeping a stock of gold and silver, and it did not produce a low rate of interest. The normal rate was often very high – higher than the present rate complained of. The banks, as soon as they saw their reserve of bullion getting low, raised the rate of interest, and kept that rate high till the stock was replenished.
If the banks keep the rate of interest too low for a time, they make it too high afterwards.
As long as a nation keeps its store of bullion at a minimum, the money market will be most delicate. And as long as bankers, one or many, are guided by their own interest, it will be kept at that minimum.
Die Liverpooler beziehn sich auf den present lower interest in France. Aber the banking power of the B. o. France is infinitely more authoritative than that of the B.o.E., and its „monopoly“ of the currency is absolute.
The Economist, 27. Januar 1866. S. 92/93.
Cattle Plague. Government Relief.
Government in Lancashire lieh Stӓdten, damit sie Arbeiter beschӓftigten. The Lancashire loan was not a compensation to capitalists. It was a loan for utilising men … Result: good drainage and good pavement in some great northern towns.
Schlӓgt Eine einzige cattle insurance Compagny für ganz England vor; nicht to insure (to prevent fraud) more than 2/3 of the value.|
The Economist, 27. Januar 1866. S. 94/95.
The Recent dividends of Joint Stock Banks.
1865 rate of interest hoch, aber nicht so hoch als 1864.
|Bk. of England minimum rates of discount.||1864||1865.|
The Average Rate of Bank Dividends.
|June 30.||Dec. 31||June 30.||Dec. 31|
|Bank of London||20||20||20||20|
|Metropolitan and Provincial||71/2||nil||nil||5|
|London et Westminster||28||32||26||34.|
|Capital.||Dividends and bonus||Reserve|
|Created||Paid up.||Rate p. annum||from calls||from Profits|
|Bank of London||800,000||400,000||20||400,000||304,411|
|Metropolitan and Provincial (lim.)||2,000,000||337,420||5||1,662,580||14,904|
|London and Westminster||5,000,000||1,000,000||34||4,000,000||363,204|
|Liabilities to the Public||Assets|
|Deposits and Acceptances||Cash||Government and other securities||Bills discounted etc|
|Bank of London||4,335,877||820,497||302,167||3,985,036|
|Metropolitan et Provincial||860,069||125,592||90,259||984,592|
|Lond. and Westm.||20,779,301||1,677,841||2,489,412||16,600,522|
|Liabilities to Public||Cash and Securities||Calls to be made||Total means.|
|Bank of London||4,335,877||5,107,700||400,000||5,507,700|
|Metropolitan and Provincial (lim.)||860,069||1,200,443||1,662,580||2,863,023|
|Lond. and Westm.||20,779,301||20,767,775||4,000,000||24,767,775|
February 3. 1866. N. 1171.
The Economist, 3. Februar 1866. S. 121.
The Money Market.
Rate immer noch 8%. The demand for silver for the East to pay for cotton
is likely to last for a month or so to come. Ordinary
credit is sound.
Kommentar von Marx.
Schließen (! weiser Mann!) The revelations of the Joint Stock Discount Company and other such cos are disastrous to those concerned, but they have no diffused effect. The public at large never heard of them. There are no signs of collapse in industry, nicht einmal of mitigated or minor collapse wie 1865, viel less of such a collapse as in the spring of 1848 and 1857.
Durch den hohen Zinsfuß (höher als in Frankreich) französisches money wurde attracted to London. There is a very unusual amount of French money in London. This is now invested in short-dated bills becoming due, and renewed or not renewed, according to the rate. So long as the value of the money continues dear, this French money will stay; so soon as it becomes cheap, that money will go from us.
The Economist, 3. Februar 1866. S. 123.
Mobilier and the Finance Companies.
Schließen 1865 veranstaltete\[ver]ursachte der französische(?) Credit Mobilier die Bank enquête, um die policy der B. o. France umzuwerfen. Dieß Jahr bitterly attacked in Titel von Marx notiert in „Heft 3. 1868“ der „Hefte zur Agrikultur“ (MEGA² IV/18. S. 587.16), einem Exzerptheft 1878 (IISG, Marx-Engels-Nachlass, Sign. B 148) und im Notizbuch 1878/1879 (IISG, Marx-Engels-Nachlass, Sign. B 152).
Schließen Revue des deux mondes von Victor Bonnet. Verdoppelt sein Kapital. (Dazu berufen shareholders 12 February 1866).
„Finance business“ hat nur den special and characteristic part that it cannot be carried on, except mit money, either belonging to the lender, or over which he has a long and sure control. Bekannt in Lombard street, daß Finance Cos in London (dieß jezt gezeigt durch ihre reports) invested money left with them in the bills of railway contractors „secured“ by the deposits in of shares in lines of railways either in course of construction, or not yet paying, and often in inferior districts of the country. The contractor commonly cannot get the money when his bill becomes due, except the shares should by good luck be then »saleable«, and, of course, they are not a „security“ till they are saleable. Yet, some Finance and Discount Cos have persevered in lending upon them money which was only left with them for moderate periods, and which at the end of those periods they knew they would have to repay again.
The Economist, 3. Februar 1866. S. 126/127.
The Master of Rolls recently remarked „that many new Cos were started merely for the purpose of being wound up“. … The case of a company quoted in the official list |12 of the Stock Exchange, and having, therefore, complied with their rules – the shares mit £15 paid, are quoted at £.12 discount: and why? Because it turns out that the scene of its operations positively lies within the Arctic circle. The operations, therefore, can only be carried on during some 90 days in the year, within which very limited period an income sufficient for the whole of the 365 days of the year, cannot, of course, be earned.
The Economist, 3. Februar 1866. S. 127/128.
Combination of Farm Servants in Scotland. Mid-Lothian
Overworked and underpaid. Let the Scotch ploughmen „strike“ for their union wages and terms, there would to-morrow be Irish substitutes.
The Economist, 3. Februar 1866. S. 129/130.
Grosser Unterschied z.B. in Midland Counties agreements, containing terms and stipulations so one-sided, so onerous and unfair towards the tenant farmers that incredible. Besides regulations as to cropping and farm-management, which place the tenants most completely at the landlord’s mercy, provided that the landlord shall have power to distrain for his rent a year or 9 months in advance! Z.B. where a tenancy commenced on 25. March, when one quarter’s rent due on 24. June, the landlord is empowered by the terms to enforce by distress the whole year’s rent to then following 25. March – 9 months in advance! Diese tenants have little or no capital, kaum any live stock of their own, also obliged to let their grass and aftergrass, or to take in stock to keep, in order to consume the produce of their land. In such cases, the hirers of the grass, or the putters out of the livestock, have no idea that their animals can be seized for payment of the tenants’ rent in advance. Yet in some districts the landlord or his agent relies on the opportunity of distraining the stock of strangers to secure the payment |13 of the tenants’ rent. Wenn Dazu reservation und preservation of game, the tenant farmers in a terrestrial purgatory. Lausestand dieser estates, charged too, meist mit debts and encumbrances.
Dagegen Musterfarm of Mr. Robert Leeds, of West Lexham (Graf Leicester landlord), near Brandon, Norfolk. 1200 acres land, 1100 arable, 50 water meadows. »Whoever knows the district will be aware that the soil is light and sandy, only to be farmed profitably by being farmed highly.« 20 years lease, Jagdrecht allein der tenant etc.
[„]The homestead is fitted up with the best possible machinery, where corn is dressed, chaff cut, seed crushed, and cake ground by steam power. This cake a grand consideration at Lexham, where from 3 to 4 times the rent of the farm is annually expended in feeding stuffs and artificial manures. Er buys [in] forward animals at from 20l. to 25l. each, and puts these on all the cake and corn they can eat, but never more than 2 bushels of roots a day. The beasts are on the farm 12–16 weeks, and the yards are continually filled up with animals as those fit are disposed of. Except the bullocks bought in for grazing the water meadows, and which do not require any until July, alles sonst at Lexham is always eating cake, and the flock of ewes are now having 1/2 pound of cotton cake, with a limited ratio of bran at night. The breeding flock averages 300 ewes, and about 1200 hoggets are fattened during winter.“
The Economist, 3. Februar 1866. S. 133.
Greatest depression in the shares of the London Financial Association, afresh quoted at heavy decline on in last week; Joint Stock Discount Co., on its Report, fell to 53/4 discount. Rumours. Selling of shares without reference to the positions of the different Cos. Imperial Mercantile Credit Shares also considerably lower.|
10 February 1866. N. 1172.
The Economist, 10. Februar 1866. S. 153/154.
»The Indian demand and the Brazilian demand having arisen from the same cause – from the cotton payments, have slackened. … Probably, in consequence of the diminished Oriental demand the bullion in the B. o. France has increased 700,000l.«
There is still much new trade with America, but under her altered circumstances, America is now a new customer.
There have during the week been several failures of contractors and others are still rumoured[.] The finance and discount cos which hold the bills of such contractors are necessarily affected … These contractors made railways (mainly on their own account) in positions where they could not pay, and they obtained the capital wanted to make them at great interest in Lombard Street.
»No one cares whether „companies“ stand or fall. Their credit is too recent to affect by its cessation the general public, to cause diffused fear.[«]
the whole, therefore, we
Zusatz von Marx.
Schließen (das Orakel) are not apprehensive as to the state of credit … we hope that they (the Bank of E.) soon may be strong enough to do so (i.e. reduce the rate of discount.)
Kommentar von Marx.
Schließen Wichtiger dagegen als der Economist selbst wußte, folgender Passus, der halb ironisch ist:
»These (limited) companies give means to great firms in difficulties
to get out of them, without a collapse that frightens the world. The
„shell“ of a great house once had to stand as long as it could; there
was nothing else for it to do. But now it has a
resource – it can turn itself into a
company. … The prestige of the great house is diminished
easily; it does not fall with a crash. Even if 4 or 5 years afterwards
the limited compagny gets into difficulties, no one cares; it affects no
one Kommentar von Marx.
Schließen (And Overend et Gurney, wiseacre!) but the company itself. Reid, Irving et Co. would not have failed nowadays. It would have become „Reid, Irving, et Co. Limited“, and lasted over, perhaps succeeded etc.«|
The Economist, 10. Februar 1866. S. 154–156.
We cannot feed the country on homegrown cattle. Year by year the amount of meat consumed in the country augments. Following shows how rapidly the trade is augmenting:
|Oxen, bulls and cows:||89,518||141,778||196,030|
|Sheep and lambs||380,259||412,469||763,084|
|Swine and hogs||24,311||68,777||117,766.|
The Economist, 10. Februar 1866. S. 157/158.
The whole argument reduced to essentials amounts simply to this, that free trade is absolutely sound over an entire world, provided that world is governed by Congress. … It is better, f.e., that Louisiana, with its splendid facilities for growing cotton, should grow it and send it to Lowell to be made up than that it should waste a special resource by diverting its supply of labour to the making up.
The Economist, 10. Februar 1866. S. 159/160.
Sir W. Armstrong, in his Newcastle address, assuming 23/4 as the average annual increase in the 8 years previous to 1861, exhausted the available supply in 212 years.
Mr. Jevons estimated the average annual increase between 1854 and 1863 at 31/2%, und exhausted in 100 years at that rate of increase.
|1863 exceeded||1862 by||4,654,177 tons|
So ultimate catastrophe still more proximate.|
|Amount (tons)||Duty.||Rate of Increase p.c. of Exports in 10 years|
|Production (Metric Quintal)||Consumption. (Metric Quintal)|
|From All Countries. (Metric Quintal)||From England (Metric Quintal)||From Belgium (Metric Quintal)|
|Increase||1,028,370||Increase 982,124||Decrease 5,569,449.|
The English treaty with France has seriously affected the Belgium coal trade, wovon der North of France is becoming comparatively independent. Der Belgian supply finds still a market in the East of France und from Brest to Marseilles. The French Gvt. does the utmost to stimulate national production, even at a pecuniary sacrifice. In the neighbourhood of Marseilles, f.i., where the coalfields are being worked, French navigation is exclusively supplied with French coal, which costs more than English; so, also at Brest, the dockyard is supplied with French coal at 36s., whilst British coal could be supplied at 17s. 6d.|17
The coal-producing district 1/22 of the territory. In 1840, Hainault alone produced more coal than whole of France, and Belgian production is said to have tripled since 25 years, whilst exports quintupled in the same period. English competition will now more and more limit them to their home market.
British coal hitherto largely imported into Northern Europe. In Prussia and the interior, cheapness of the indigenous coal and facilities of transport bid fair to drive English coal out of the market.
The most important supplies from the Westphalian coalfields, the value of which is greatly increased by the proximity to the metal industry. Production hier 1852: 38,000,000 Quintals, 1864 dagegen: 140,000,000. Westphalian coal is rapidly excluding English from Holland, and it is expected to do as much in Northern Germany by communication via the Elbe.
Might be unlimited supply of coal. Production only 4,500,000 tons p.a., half of which of inferior quality. Insufficient and expensive means of communications have limited operations.
Grosse coalfields, noch wenig exploitirt. The coal of the Moscow basin is of an inferior quality; the value of the Oural district is increased by proximity to iron, and that of the Don District by its easy access to the Sea of Azoff. Russia [spielt] bis jezt keine Rolle im coalmarket. Nur das country accessible from the Baltic und St. Petersburg, where the imports, chiefly English, have tripled since the Crimean war.
In Pennsylvania – the largest producer both of anthracite and bituminous coal – the value of coal mined has increased in 10 years at the rate of 179%, whilst the corresponding increase in all the States is estimated at 186%.
|Total produce der U. States||in 1860.||14,333,922 tons|
|in 1864||16,472,410 tons.|
1860–61 the ton of coal sold at Philadelphia at 4 dollars, the present price between 11 and 12 dollars. Coal at Boston sells at 17 dollars (3l. 9s. 9d.) per ton, and at Chicago, as high as 22 dollars (4l. 10s. 4d.)|
The Economist, 10. Februar 1866. S. 161.
The Banking Question.
Even discount bankers and capitalists, who have been reaping a golden harvest at the expense of the mercantile and industrious classes, should, from recent disclosures, perceive the danger to discount companies from the present monetary system.
The evils suffered from our banking laws have arisen, not from a want of circulation, but from abnormal fluctuations of Bullion – periodical superabundance with speculation in trade, and periodical scarcity with temporary ruin of trade.
The Economist, 10. Februar 1866. S. 162.
Game and Bankruptcy.
Manche kleine farmers (i.e. small capitalists) gehn dadurch kaput. his little capital is exhausted in providing food for the game, and has been literally drained off into the poulterer’s shop, whereto the game killed in the 3 or 4 grand battues of each season has been consigned by the landlord.
So case vor dem London Court of Bankruptcy, of James Harvey, late of Church Farm, in the parish of Eversley, in the county of Southampton. His creditors consisted of tradesmen and others living in neighbouring towns. The landlord was protected from all loss by his power of distress. His Debt 1355l., his effects small, deficiency of l.1162. Er stated in crossexamination:
„Never been bankrupt or insolvent before. … farming all his life … Began mit 3500l., had lost all that money. Five years ago he was worth 5000l., had lost the whole of that through the over-preservation of game on his farm. In 1862 he had 80 acres of wheat from which he did not get more than 6 bushels, in consequence of the destruction caused by hares, rabbits and other game.[“]
Mr. Read (his attorney): Then, instead of your land producing corn, it produced game for the London markets?
Bankrupt: Yes, Sir, and my landlord would not allow me to give up the farm unless I found another tenant.
Der tenant not unfrequently tempted by the apparent moderation of the rental, and then he is rather pleased to find that with his comparatively small capital so large and good a farm should be open to his acceptance. He knows not or heeds not the fact that the more wealthy and enterprising farmers of the district shun the farm as they would a pestilence. Having entered, he is rather surprised at the small returns of his first crops, and a little annoyed at the restrictions he is under for the sake of the game, and at the insolent interference of the game keeper.|
17 February 1866. N. 1173.
The Economist, 17. Februar 1866. S. 185.
Oriental demand for silver very much diminished. Supplies of gold coming to the Bank. Continental exchanges improving … we certainly hope that perhaps, even next week, the Directors of the B.o.E. will be able to diminish their rate of discount.
The Economist, 17. Februar 1866. S. 187–190.
The Report of the American Commissioners on
Revenue (appointed by the President) Zusatz
Schließen (Blue Book.)
1) Effects of war on people: „the consumption of coffee in the U. St. decreased from the annual average of 200 Mill. pounds in 1860 to less than 80 Mill. pounds in 1863. During the same period consumption of sugar decreased from 31 to 19 pounds per capita; and of tea for the whole country about 23%.“ the rise of price caused by the immense issues of Gvt paper money greatly straitened all classes mit small fixed incomes. Even now the Commissions estimate 60l. before the war as equal to 100l. now. Such a diminution of effectual income contemporaneous mit immense increase of taxation.
2) The original parts of American finance are breaking down. Z.B. die Yankees erfanden wӓhrend des Kriegs 6% tax on the industrial products of the country, subject to some exceptions and modifications. Nun question: What is a product? The law decided that a thing was produced when it was „made“. Of course when it is completed, and the only test of its completion is its being sold. But owing to the division of labour many articles produced in a 100 places, and the result which the consumer gets is the aggregate of a 100 previous sellings and makings. The law could make no distinction between articles sold to a manufacturer and a consumer. It would have been baffled by wholesale evasion. It taxed all „makings“ 6%. The Commission describes the curious result: „Under the operation of this law the Gvt. now levies and collects from 8 to 15%, in some instances 20%, on almost every finished industrial product. … A good illustration … is presented in the manufacture of umbrellas and parasols, as carried on in the cities of New York and Philadelphia. It was formerly the practice of umbrella-makers to manufacture the main constituents of their product as one business; but now the business of an umbrella-maker is rather to assemble the various constituents of an umbrella or parasol, which are made separately and in different parts of the country. Thus, f.e., the sticks, when of wood, are made in Philadelphia and in Connecticut; part of native and part of foreign wood, on which last a duty may have been paid. If the supporting rod is of iron or of steel, it is the product of still another establishment. In like manner the handles of carved wood, bone or ivory; the brass runners, the tips, the elastic band, the rubber, of which the band is composed, the silk tassels, the buttons, and the cover of silk, gingham or alpaca, are all distinct products of manufacture, and each of these constituents, if of domestic manufacture, pays a tax when sold of 6% ad valorem, or its equivalent. The umbrella manufacturer now aggregates all these constituent parts, previously taxed, into a finished product, and then pays 6% on the whole. It is, therefore, evident that under the existing excise system, all the parts of the umbrella are taxed at least twice, and, in some cases, three times, thus adding from 12 to 15% on the umbrella direct; while we may feel certain, moreover, that each separate manufacturer makes the payment of the 6% tax on his special product an occasion for adding from 1 to 3% additional to its cost price, in some instances over 6%.“
„Again, in the case of books, pamphlets etc, it is claimed that, including licenses and income tax, the finished book and its constituent materials pay from 12 to 15 distinct taxes before reaching the reader. Every separate item that enters into the book – paper, cloth, boards, glue, thread, gold-leaf, leather |20 and type material – pays from 3 to 6% in the first instance, and then 5% on the whole combined; and this not upon the cost of the manufactured article, but upon the price at which it is sold.“
The effect of this tax, in appearance so equitable and simple, has been to impose a burden differing almost in every instance upon the different industries of the country.
Nor is this all. The tax of 6% on domestic products has led to the oddest results when compared with the tariff on imports. That tariff is necessarily a tariff on consumable articles: not on the bits and components of such articles. Umbrellas or books come by ship as wholes, and must be taxed as wholes. How then is an Excise-duty to be made equal to the Customhouse system, and no more than equal to the Custom-duty? The Commission describe describes the present contrast:
„In the case of the umbrella and parasol manufacture, the cover, as a constituent element of construction, represents from 1/2 to 2/3 the entire cost of the finished article. The silk, the alpaca and Scotch gingham, of which the covers are made, are all imported, the former paying a duty of 60% and the latter two about 50% ad valorem, the variation being slight on the quality of the texture. The manufactured umbrella, covered with the same material, whose constituent parts are not taxed, either on the material used in their fabrication or on their sale, are, however, admitted under the present tariff at a duty of 35% ad valorem, or at a discriminating duty against the American and in favour of the foreign producer of from 15 to 25%. If we make allowance for the various U. St. internal revenue taxes, it is claimed by the American manufacturer that the discrimination in favour of the foreign producer is fully equal to 40%. It needs hardly to be added that, during the past 6 months imported umbrellas have been sold at auction in New York and Boston, with the original cost, duty, freight and charges paid in gold, for a less price than the American article can be manufactured; or that the business of making umbrellas and parasols in New York and Philadelphia, involving a capital of 2,000,000 dollars and employing the labour of some 5000 persons, a majority of whom are females, is threatened with utter destruction. In two instances cited to the Commission, umbrella manufactures have closed their factories in the U. St., and, with a view of exporting to this country, have transferred their capital and skill to Europe. In a communication submitted to the Commission by a committee of umbrella manufacturers, they state that, unless relief is speedily obtained, we can perceive no other possible course to pursue but the alternative of retiring entirely from the field, and leaving it entirely to foreign hands.“
Ebenso mit books.
„The Commission would add that at the present time the one article which, above all others, would seem to be a peculiar product of American industry, viz. Webster’s Spelling Book, is now being printed in large quantities in London for the use of American schools.“
In practice no system of Excise pressing on all commodities can be made equal to a tariff pressing on all commodities. The home imposts cannot be too small, or they will not be worth collecting; the Customs duty must not be too large, or it will be a prohibition unproductive to the revenue and useful only to the smuggler.
Repairs: The Americans put a tax of 36/10% on the repairs of every article if the cost of that repair exceeded 10% on the value. Aristocratic legislation. A repair of trifling cost is more than 10% of an article of small value; much less than 10% on articles of great value: hence, expensive articles of luxury can be repaired without a tax, but cheap articles of common use must pay a tax. „If“, say the Commissioners, „the worker in wood repairs a wheebarrow wheelbarrow worth 1 dollar by adding 10 cents to the value, it is taxable; but if he repairs a carriage or piano worth 500 dollars, no tax accrues unless he adds 50 dollars to the value.“
It is amusing to think that the American financiers should have established a system so favourable to articles of luxury as well as to articles of foreign manufacture.|21
3) The great revenue now to be raised will necessarily
bring about in America a great political change. Kommentar von Marx.
Schließen (Hierüber kohlt aber „Economist“ nur das Oberflӓchliche der Commission nach über die Nothwendigkeit stehende skilled collectors zu haben und dem finance minister neue Stellung zu geben.)
On the whole, the finance management of America is falling back into the old humdrum inevitable channels of Europe, just as the finance itself is falling back. Money can only be got by certain modes and by certain men, whether on the eastside of the Atlantic or the West.
The Economist, 10. Februar 1866. S. 190.
The Bill authorising loans for the Construction of
Houses for the Poor.
One half the population of Gr. Brit. now lives in towns. The Metropolis has a population equal to that of Scotland, twice that of Denmark, necessarily 3 × that of Greece. London receives new inmates at the estimated rates of 300 a day. This packing has now reached a point at which it threatens to be destructive – typhus has become endemic in London … The railways become a swath of erased houses, until it is officially calculated that, within this single year, 16 000 houses have been marked for destruction, and upwards of 80 000 persons will be thrown upon quarters already overburdened. This cannot go on without one or 2 results – pestilence or an attempt on the part of the dispossed dispossessed to obtain a remedy by force … . Besides, a population so overcrowded must deteriorate in virtue, civilization, and in the capacity for works.
Mr. Childers’ bill, sanctioned by Gladstone, authorises the Commissioners of Public Work Loans to lend money at 4% to municipalities, vestries, companies and private persons to construct dwellings for the poor, the security being the buildings, and the duration of the loan 7 years.
Saturday. Jan. 6, 1866. N. 1167.
Jan. 13, 1866. N. 1168.
January 20, 1866. N. 1,169.
January 27, 1866. N. 1170.
- Saturday. Jan. 6, 1866. N. 1167.
February 3. 1866. N. 1171.
10 February 1866. N. 1172.
17 February 1866. N. 1173.
- 17 February 1866.
N. 1173. (Fortsetzung)
24 February 1866. N. 1174.
March 3. 1866. N. 1175.
10th March, 1866. N. 1176.
March 17, 1866. N. 1177.
24. March 1866. N. 1178.
31 March 1866. N. 1179.
April 7. 1866. N. 1180.
April 14. 1866. N. 1181
April 21. 1866. N. 1182.
- April 28, 1866. N. 1183.
5 May. 1866. N. 1189.
12 May. 1866. N. 1185.
May 19, 1866. N. 1186.
26 May 1866. N. 1187.
June 2. 1866. N. 1188.
June 9. 1866. N. 1189.
June 16. 1866. N. 1190.
23 June. 1866. N. 1191.
- June 30. 1866. N. 1192.
Saturday, 7 July 1866. N. 1193.
July 14, 1866. N. 1194.
July 21. 1866. N. 1195.
July 28, 1866. N. 1196.
4 August 1866. N. 1197.
- August 11. 1866. N. 1198.
August 18, 1866. N. 1199.
August 25, 1866. N. 1200.
Saturday September 1, 1866.
8 September 1866. N. 1202.
September 15. 1866. N. 1203.
September 22, 1866. N. 1204.
September 29. 1866. N. 1205.
October 6 1866. N. 1206.
October 13. 1866. N. 1207.
Saturday. October 20. 1866. N. 1208.
October 27. 1866.
November 3. 1866. N. 1210.
November 10. 1866. N. 1211.
November 17. 1866. N. 1212.
24 November 1866. N. 1213
1. December 1866. N. 1214.
December 8. 1866. N. 1215.
15 December. 1866. N. 1216.
22 December. 1866. N. 1217.
29 December 1866. N. 1218.
January 5, 1867. N. 1219.
January 12, 1867. N. 1220.
19 January, 1867. N. 1221.
- January 26, 1867. N. 1222.
2 February 1867. N. 1223.
- 9 February, 1867. N. 1224.
16 February. 1867. N. 1225.
23 February 1867. N. 1226.
2 March 1867. N. 1227.
9 March, 1867. N. 1228.
16 March 1867. N. 1229.
- March 23, 1867. N. 1230.
March 30. 1867. N. 1231.
April 6. 1867. N. 1232.
13 April. 1867. N. 1233.
20 April. 1867. N. 1234.
27 April. 1867. N. 1235.
May 4, 1867. N. 1236.
11; 1867. N. 1237.
May 18. 1867. N. 1238.
25 May, 1867. N. 1239.
June 1. 1867. N. 1240.
June 8. 1867. N. 1241.
June 15. 1867. N. 1242.
22 June 1867. N. 1243.
June 29. 1867. N. 1244.
July 6. 1867. N. 1245.
July 13, 1867. N. 1246
20 July 1867. N. 1247.
July 27. 1867. N. 1248.
3 August 1867. N. 1249.
10 August, 1867. N. 1250.
17 August, 1867. N. 1251.
August 24, 1867. N. 1252.
31 August. 1867 N. 1253.
September 14, 1867. N. 1255.
- 21 Sept. 1867. N. 1256.
September 28, 1867. N. 1257.
October 5, 1867. N. 1258.
October 12, 1867. N. 1259.
- October 19, 1867. N. 1260.
October 26, 1867. N. 1261.
November 2. 1867. N. 1262.
9 November 1867. N. 1263.
November 16, 1867. N. 1264.
Nov. 23. 1867. N. 1265.
- 30 November, 1867. N. 1266.
- 7 December 1867. N. 1267.
December 21, 1867. N. 1269.
- December 28, 1867. N. 1270.
- Saturday. May 19. 1866. N. 311. Panic.
Bank o. E.
- Money Market. (Reserve of B.o.E.)
- The Recent Panic and Bank Act Suspension.
- The Panic and its Remedy.
- What to do with the Act of 1844?
- The Times and the
- Investors Losses from „Bear“ Frights.
- The Stock Markets of the Week.
- The Limited Liability Act of 1862.
- Railways. (don’t pay)
- The Reports of the Asiatic Banking Co., and the Bank of Hindostan, China
and Japan (Limited.)
- The Economy of B.o.E. Notes. 1000£ Notes.
- Money Market. (Reserve of B.o.E.)
- May 26, 1866. N. 312.
- The Bank of England and the London Bankers in the
Lord Clarendon on
- Transfer of Business of the Bank of London to the Consolidated Bk.
- Loss in Investments since beginning of 1866 – May
- The Stock Markets of the Week.
- What is a Five-Twenty Bond? (Neue Art Convertibility for paper
- The Annual Circular of the American
Commercial Agency. (Vehmgericht)
- Act of 1844 and Bank of England.
- A Pluralist Director.
- The Directors of failed
- The Bank of England and the London Bankers in the Panic.
- June 2, 1866. N. 313.
Hubbard, M.P. On the Bank Act and the
Currency. (Letter to the Times on 14 May.)
- The Theory of Panic etc.
- Board of Trade Returns.
- The Consolidated Bank
- American Exchanges and Grain Trade.
- Pressure and securities.
- Variations between Prospectus and Articles. The
Russian Iron Works Co. (lim.)
- America. U. St. (Trade)
- John C. G. Hubbard, M.P. On the Bank Act and the Currency. (Letter to the Times on 14 May.)
- July 21, 1866. N. 320.
- 28 July 1866. N. 321.
- August 4. 1866. N. 322.
- 11 August, 1866. N. 323.
- August 18. 1868. N. 324.
- 25 August, 1866. N. 325.
- 1 Sept. 1866. N. 326.
- 8 September 1866. N. 327.
- Sept. 15, 1866. N. 328.
- 22 September, 1866 N. 329.
- 29 September 1866. N. 330.
- October 6, 1866. N. 331.
- 13 October. 1866. N. 332.
- 20 October, 1866. N. 333.
- 27 October 1866. N. 334.
- 10 November. 1866. N. 336.
- 17 November 1866. N. 337.
- 24 November, 1866.
- December 1. 1866. N. 339.
- 8 December 1866.
- December 15, 1866. N. 341.
- 22 December, 1866. N. 342.
- 29 December 1866. N. 343.
5 January, 1867. N. 344.
12 January 1867. N. 345.
Proposed Expansive Clause in the Bank Act of
Evidence of John Henry Gurney
and Mr. Robert
before Vice-Chancellor Malins.
Cotton Market. Past and Present.
Hankey: (formerly Governor of B.o.E.) „The Principles of Banking, its Utility
and Economy; with Remarks on
the Working and Management of the Bank of
- Proposed Expansive Clause in the Bank Act of 1844.
19 January, 1867. N. 346.
26 Jan. 1867. N. 347.
February 2, 1867. N. 348.
9 February, 1867. N. 349.
. N. 350.
23 February 1867. N. 351.
2 March 1867. N. 352.
The Joint Stock Co’s Directory for 1867. London.
Charles Barker et Sons. 8, Birchin-lane.
Overends. Report of Liquidators and Report of Defence
Leeman’s Bill respecting
Dealings in Bank Shares.
Limited Liability. High Nominal Shares.
London, Chatham and Dover
Plethora of money.
London, Chatham et
Investigation Committee) (Solicitors)
- The Joint Stock Co’s Directory for 1867. London. Charles Barker et Sons. 8, Birchin-lane.
9 March, 1867. N. 353.
March 16, 1867. N. 354.
23 March. 1867. N. 355.
30 March 1867. N. 356.
April 6. 1867. N. 357.
13 April 1867. N. 358.
April 20, 1867. N. 359.
April 27, 1867. N. 360.
May 4, 1867. N. 361.
11 May 1867. N. 362.
25 May. 1867. N. 364.
June 8, 1867. N. 366.
15 June. 1867. N. 367.
22 June 1867. N. 368.
29 June. 1867. N. 369.
July 6. 1867. N. 370.
July 13. 1867. N. 371.
July 20, 1867. N. 372.
July 27. 1867. N. 373.
August 3. 1867. N. 374.
August 10. 1867. N. 375.
August 17, 1867. N. 376.
August 31, 1867. N. 378.
14 September. 1867. N. 380.
21 September, 1867. N. 381.
28 September, 1867. N. 382.
Gold mines of Victoria. (Kitto: „The
Goldminers of Victoria.“ Lond. ’67)
Expropriation of Individual
Public Debt of Russia. Consul
- Robert Knight: Letter to the
Honourable Sir Stafford Northcote on
the Present Condition of Bombay. Lond.
Limited Liability Cos formed since
- Gold mines of Victoria. (Kitto: „The Goldminers of Victoria.“ Lond. ’67) Expropriation of Individual Labour. (Property)
5 October. 1867. N. 383.
Money Market Review. 12 Oct. 1867.
- 19 October 1867. N. 385.
, 1867. N. 386
9 November, 1867. N. 388
16 November 1867. N. 389.
- 23 November 1867. N. 390
7 December 1867. N. 392.
21 Dec. 1867. N. 394.
28 December 1867. N. 395.