Heft „1868“. I. Chemie. Bank of England und Money Market 1866–1867

Nach der Handschrift, MEGAdigital (MEGA² IV/19).¹ Traducción al español

9 Sept. 1868, 34 King Street, Cheapside.

Ch. Burton. 8 Frankfurt Terrace, Harrow Road. (London Wohnung)

1868.

Chemie.

I) Metalloide.

1) Sauerstoff oder Oxygen.

O = 16 (Verbindungsgewicht). Dichte = 16.

⅕ der Atmosphäre, mit andren Elementen verbunden ½ der Erdrinde,  8/9 des Wassers. (Macht about ½ der Hälfte des Gewichts unsres Planeten aus.)

Alle einfachen Körper, außer Fluor, verbinden sich mit O. Bilden Oxide. Prozess der Verbindung Oxidation.

Wasserstoff, als leichtestes Gas, Gewichtseinheit.

Ozon, Sauerstoff in einem verdichteten Zustand.

2) Wasserstoff oder Hydrogen.

H = 1. Dichte = 1.

Wasser = H2O.

Wirkt Kalium auf Wasser ein, so wird aus: H H | O + K = K H | O + H = Kaliumhydroid + Wasserstoff. [(p. 16–17)]

Schwefelsäure= H2SO4. Sezt man Zink hinzu, so wird aus H2SO4 + Zn = ZnSO4 + H2; d.h. Zinksulfat + Wasserstoff.

Also 65,2 Gewichtstheile Zink erheischen 98 Gewichtstheile Schwefelsäure, und geben 2 Gewichtstheile Wasserstoff und 161,2 Gewichtstheile Zinksulfat. [(p. 19–20)]

Gase fast stets, nicht nach Gewicht, sondern Volum bestimmt.

Gase dehnen sich am stärksten bei Wärme aus und ganz gleichmäßig. Bei jedem Gas die Zunahme des Volumens bei Temperaturerhöhung von 1° des 100theiligen Thermometers = 1/273 des Rauminhaltes bei 0°.

Welchen Raum nehmen 1000 CC. Wasserstoff gemessen bei 0° ein, wenn die Temperatur auf 20° steigt? 273 Raumtheile bei 0° werden zu 273 + 20 = 293 Raumtheilen bei 20°. Also – da 273/273 = 1 – 1000 CC bei 0° werden bei 20° zu = 1000 × (273 + 20)/273 = 1000 × 293/273 = 1073,2. [(p. 21)]

Mariottesche Gesetz: Volum der Gase verhält sich umgekehrt wie der Druck, dem sie ausgesetzt sind.

Z.B. hat man 1 Vol. eines Gases und vermindert den Druck um ½, so nimmt es 2 vol. ein; ist der Druck nur ⅓, so 3. Wird dagegen Druck verdoppelt, so vol. reduzirt auf ½, wenn verdreifacht, auf ⅓ etc. Mittlerer Druck der Atmosphäre durch Barometer gemessen = 760 Millimeter Höhe. Luftdruck schwankt aber beständig. Wenn vergrössert, steigt Quecksilber im Barometer, wenn verkleinert, fällt es. Alle Gase an der Erdoberfläche diesem Druck unterworfen und ihr volumen in umgekehrtem Maß dazu. Will man also z.B. berechnen, welches vol. Wasserstoff eine bestimmte Menge von Zink liefern kann, so muß man die Temperatur kennen, wobei das Gas aufgefangen wird und den Luftdruck, bei dem es gemessen wird. Zur Vergleichung der volumina verschiedner Gase, sind sie zu berechnen für denselben Druck und dieselbe Temperatur. Man nimmt 0° als Normaltemperatur an und als Normaldruck den Druck einer Quecksilbersäule von 760 Millimeter. [(p. 21–22)]

Money Market. 1866. Von 16 May an. (Bank of England)

Saving Banks Deposits also in the Public Deposits.

State 16 May.

As a great deal of this borrowing (£.10,099,042 increase in Private Securities) was merely precautionary, £.5,105,135 has been added to the private deposits. The notes withdrawn mostly hoarded by Country Bankers etc. The £832,335 of coin and bullion withdrawn must have been taken away chiefly by provincial, Scotch, and Irish bankers, as a measure of precaution.

Bk.o.E. minimum rate of Discount : 10%. B.o.F. 4%.

Bankrutte in Liverpool unter cotton merchants und shipowners.

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B.o.E. Return. 23 May (Wednesday)

Withdrawal of gold from B.o.E., for exportation to Continent, continue upon large scales; the amount taken yesterday was £178,000, of which £128,000 bars, rest sovereigns.

• Stoppage of McCulloch, John et Co, Liverpool. Liabilities nearly ¾ of million. Result of the estate depends upon the realisation of cotton, the market for which in a very unfavourable State. Principal creditors: the Anglo-Indian banks.
• Luckie, brothers (Fenchurchstreet) stopped. Liab. about 70,000l.
• Gellatly, Hankey, Sewell, mercantile and shipping firm.
• Robinson, Coryton, and Co, private bankers, of Manchester. Their difficulties ascribed to stoppage der European Bank , which acted as their London agents.
• Kynaston, Sutherland, and Co, colonial brokers, also failed. About £100,000 liab.
• Principal Liverpool failures of the past week, in addition to that of Messrs. Fernie, comprises Holderness and Chilton (iron and wood shipbuilders), Boult, English, and Brandon, merchants, liabilities in each case large. Duff, Cadell et Co, merchants and shipowners, Giannacopulo und Cochilani, commission merchants, also suspended.
• Stoppage of „European Bank“; Stoppage of the „New Zealand Banking Corporation“.

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Bank o. England. 30 May 1866.

Increase in advances: 2,397,057, aber nur precautionary; daher increase in private Deposits: £1,676,163. Since the date of the present accounts £592,000 in gold sent into the Bank. Great Arrivals of Specie from U. St.

Bank o. France.

Failures: Enthoven et Son (General Merchants), chiefly in the Metal Trade (Offices in Moorgate Street, London, und establishment at the lead works, Upper Ordnance Wharf, Rotherhithe str.) liabilities an 270,000l. Losses through Pinto, Perez et Co et Barned’s Bank. 30 May. Boult, English, Brandon, Liverpool, pay 9s. in £. Stoppage of the Consolidated , 27 May. Winding up Petitions für Masse of limited Liabilities Cos.

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(verte)

B.o.E. 18 July. 1866.

Failures etc: Netherton Iron Co. (Birmingham.) liabilities about £20,000. Carleton Brothers, Wholesale Warehousemen (City) their acceptances returned. Stoppage of Birmingham Banking Co (14 July) (Gross mismanagement.) Stoppage of Preston Banking Co. (19 July) Liabilities about 1 Mill. l. the difficulties of the undertaking caused by large advances to a few houses, including about £300,000 to a firm of cotton spinners at Blackburn. The Capital is £200,000, in 2000 shares, of £100 each, of which £100,000 is paid up. Reservefund 65,600£, and 8 branches, viz. at Lancaster, Ormskirk, Southport, Blackburn, Garstang, Blackpool, Lytham, Fleetwood. At a recent meeting a dividend and bonus equal to 20% p.a. declared. The bank had no note issue of its own, but issued B.o.E. notes.

Money Market and Bank Act.

Continental drain des Bullion. Every bill as it falls due to Continental holders is remitted in coin or bullion. The difficulty of the past 2 months has been much aggravated by the distrust on the Continent of English bills of Exchange.

No drain now for East (India and China). Hitherto, during this (German) War, money has been taken from us, and the Continent, contrary to all previous experience, wants, at a time of great disturbance, not only all the money usually deposited here but much more. About this fact there can be no difference of opinion. Continental money in British hands is now being generally withdrawn. In previous periods of Continental disturbance it was not so; nay, it has always increased. Our Bankrate 10%, in France 4 and less; und everywhere on Continent lower than in England. Continental league, though at war, and with money actually comparatively cheap, draws money from peaceful England, where the price of money is 10%! Dieß suits not the Overstone Theory. „A high rate of interest means bad security“ sagte Wellington, und so sagt Continent jezt von England. Speculation here is utterly crushed, and the alarm signal of 10% is still up.

A ruinous state of interest scares away both notes (durch die Countrybankers) and gold from the B.o.E.

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B.o.E. 25. July. 1866.

Mercantile Embarrassments: Capt. Bennitt (Bankrupt) Oldbury Furnaces (near Birmingham) Suspension of Pile, Spence et Co (Lim.) shipbuilders, of West Hartlepool. »The Co. was formed about 12 months ago, for the purchase of the extensive iron shipbuilding yards, graving docks etc, of John Pile and Joseph Spence, at West Hartlepool, and for carrying on the line of 7 steamers owned by that firm, and running between West Hartlepool and the various ports of Northern Europe.« Nominal Capital der Co £500,000, shares 20£, 10£ paid up, and a further call of £3 p. share was called for a few weeks ago. Chairman of the Co was: James Hartley, M.P., for Sunderland.

Progress of the London and Westminster Bank since 1862.

The capital having remained 1 million since 1849, the balance is the amount of the reserve.

In diesem lezten half year (1866) Deposits increased by £1,799,641; aber the Bank cannot prudently extend its assistance to its customs, so long as the distrust exists; consequently the increase in the deposits is almost exactly represented by the increase of £1,786,626 in the cash unemployed.

Net Profits for the Panic Half Year (1866) 250,813l., exceed ¼ mill. £. St., or more than 50% p. annum. Bankrate Minimum Discount during this whole period, on an average maintained at 8%.

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Bank o. E. 1 August 1866.

Rate for goodbills 8 to 9%, 1 to 2% below the B.o.E. minimum. Continued demand on Continental account for bills of the very best class at 6½ to 7%. Diminution in demand for gold for export, no demand for silver for the East.

• Failure of Edward Tiernan, tea broker, (Tower Street), owing to losses in tea and bad debts. Liab. about £30,000
• Failure of 2 unimportant private banks announced on 31 July: Kennedy et Co (Dublin), G. W. Hall of Congleton, Cheshire. None had note issues.
• 3 August: Stoppage of David Law (firm of Eddington and Sons, iron founders et engineers, Glasgow. Liab. £232,000. Stoppage caused by suspension of M.’Ewen and Bryson, on whose estate D. Law ranks for £.79,000.

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B. o. France and Bank o. E. (8 August)

Last year, when Bank of F. held 13½ mill., as the B.o.E. now, it reduced its rate from 4½ to 4%. As to „Reserve“, the B.o.F. scouts the absurd phantom. Minimum Rate of Discount der B.o.F. jezt 3½%.

Decrease in loans (Private Securities) £410,813 in Bank o. E. und in B.o.F. £.410,000. Both banks are therefore, losing Business at their respective rates of discount.

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Privileges of the B. o. England, and its Reserves.

Tendency of Legislation to make B.o.E. more and more a Gvt Bank; its notes are legal tender, its stock is alone put on the same footing as Gvt. funds with regard to the investment of trust moneys, and, from time to time, it has received assistance from the State when the money in its till insufficient for the wants of the day. Of its „private deposits“ at least 5 Mill. bankers’ balances.

In 1846 and 1848 rate not reduced till reserve more than ½ the liabilities, in 1865 reduced, when reserve considerably below that amount, and kept there till reserve hardly more than  2/7 of liabilities.

B.o.E. 8 Aug. 1866.

The actual purchases of gold and withdrawals for exportation were on balance only £50,000 against the Bank, and the further decrease therefore attributable to the absorption of coin for the harvest.

• Romanjee Framjee Cama et Co, East India merchants. Liab. about £250,000. Cause assigned failure of remittances. Large losses in cotton und share speculations.
• G. Evans, Evelyn Iron Foundry, New port. Heavy losses und the high rate of discount.

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Banks of England and France. (August und Sept. 1866)

The decrease in the rate of Discount (B.o.E.) from 10 to 7% (to 8% on 16 Aug. and to 7% on 23 Aug.) accompanied by large import of precious metals, steady Continental exchanges, decrease in the note circulation, large influx of specie and bullion into the B.o.E.

The amount of the increase in bullion shows that coin arriving back from the country, the actual sum sent in from abroad being £361,000.

• Failure of W. Hopwood and Son, Spinners and manufacturers of Burnley, liab. about 70,000l.
• Belfast, stoppage of firm in flaxtrade mit liab. of 40,000.
• Birmingham failure of W. Bates, ironmaster, of Tunstall, liab. £100,000.; also suspension of Brook mill Co.

Mercantile Embarrassments. Younghusband and Co, Australian trade. Ferner: Failure of Walley et Co, cotton manufacturers, of Blackburn.

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Banks of England and France. 1866 (Sept. Oct.)

Bank of England. 1866. (September. October.)

Moneymarket.

Week ending 1st Sept.

Shipments of Gold to New York continue, and 31 Aug. £150,000 taken from the Bank for remittance to that port, while about the same amount was sent into the Bank. There is at present no demand for bullion for any other quarter.

Failure of a Broker on Stock Exchange, caused by expansive operations for a fall in British Railway Securities. Wolverhampton: J. B. Dickinson, iron masters, offers 10s. in £, paying in instalments from October (1866) bis December (1867).

Week ending 8 Sept:

Yesterday demand for money active, owing to the extent to which bills had been held back in anticipation of reduction of Bankrate. Again £288,000 in gold taken from the Bank in gold for New York; no compensating influx from other quarters.

Week ending 15 Sept.

With diminution in bullion, large diminution in active circulation of the B.o.E., amounting to ¾ of a million. Daher, daß country bankers, who during the recent crisis crammed their tills with B.o.E. notes, are now sending them back to B.o.E. Dieß besonders heavy notes of £100 and upwards. Bk.o.E. has während der week parted mit £262,000 in gold, sent chiefly to the U. St.; only a small portion of this decline has made up through reflux of coin from the internal circulation.

Week ending 22 September.

On 21 Sept. 50,000£ in gold taken out for New York, but same amount received from Continent, ausser £5000 in bars. Zugleich, trotz des gold drain nach U. St., gold shipped from New York to England etc.

Mercantile Embarrassments: Failure of the great native speculator, Premchund Roychund (Bombay where he was director of a bank.) Liabilities 2 or 3 mill. £. St. Failure of the Bank of Upper Canada, established 1822.

Week ending 6 October.

Increase of £1,189,359 in the advances on private securities; this movement usual in the closing week of each quarter. The sudden demand has caused diminution of £1,136,090 in the Reserve; but in corresponding week 1865 it was nearly 2 × as great, and at beginning of Oct. 1864, it was about £1,300,000. Decrease of £219,732 in the Gvt. Deposits consequent to the payment of salaries and other quarterly accounts. As usual at this season, a large amount of coin has been transmitted to the provinces, and, consequently, although £.509,000 newly imported gold sent into the Bank during the week, increase of coin and bullion only £149,875. A very large amount of Indian bills fell due on Saturday last, gave life to the discount market.

Failure of Asiatic Banking Co (announced durch telegrams on 28 Sept.) Agencies and branches at Bombay, Calcutta, Madras, Kandy, Colombo, Penang, Shanghai, Singapore, Hong Kong, and Melbourne; headoffice at London; liabilities expected to 3½ Mill. £. St. Einer der Hauptshareholders und sehr connected mit der bank since its foundation der oben sub 22 Sept. für 2 or 3 mill. fallirte Roychund. On the establishment at Bombay of the Back Bay Reclamation Co. , of which Roychund was the chief promoter, 500 shares offered to Gvt., but refused by them. These shares subsequently sold by auction and realised in the mania the almost incredible sum of 1 Mill. £ profit, lent to the Asiatic Banking Corporation by the Reclamation Co., to be repaid on July next. The position of the bank weak for months past, owing to a constant run upon its resources at Bombay, promoted by the suspension of Roychund. Connection of this individual with all sharespeculations of Bombay well known. Fall in cotton and in the value of „Back Bay Shares“ had great effect.

Week ending 20 October:

The payment of the Dividends began on Saturday. The draught on the Gvt. Deposits largely made up to the Bank by the influence of private deposits, and the diminution in the advances on private securities; yet decrease in Reserve of £447,513. The coin and bullion present likewise a decrease of £334,143, chiefly caused by withdrawals of coin by the receivers of the dividends, since the import and export transactions of the week, resulted, on balance, in a withdrawal of only £60,000 from the Bank. Gold withdrawn for Alexandria to pay cotton. An unusually large proportion of the funds (paid in dividends by the Bank) is on the market seeking temporary employment, in consequence of the quarterly advances from the Bank during the last 2 or 3 weeks, and now repayable to that establishment, having been much below the average.

Failures announced from Melbourne.

Week ending 27 Oct.

Failures: Preston: Wilding and Strachan, spinners and manufacturers. Birmingham. G. Pell, Heyford Ironworks, liab. £.160,000.

Bankminimum, Prices of Wheat and Cotton. Prices of 1847, 1856 und 1866.

Profits of B. o. England. for 22 years.

Hubbard’s Reply to Watkin that „while borrowers have suffered, that lenders had gained, and that as both are citizens of this country, the gain, as well as the loss, would be felt throughout the empire“ would also justify the practice of the usurer who trades on the weakness and folly of profligates by discounting their acceptances at 50 and 60%. The real question, whether it is proper that those who, as directors of the B.o.E., manifestly make large profits out of a time of panic, should be left to regulate matters the decision of which affects so materially the duration and even the creation of panics.

Profits and Dividends of the B.o.E. since the passing of the Bank Act of 1844.

(verte)

The dates given in the first column (1) are those of the Bank’s returns which include the last days in the months of Febr. and August in each year, the practice being to strike the half yearly profit balances of the B.o.E. on the last day of those months.

Rest now (Sept. 5, 1866) £3,987,417, allows declaration of 13% p.a., which would absorb £945,945. This is the largest amount earned and available since 1844, and a balance of about £3,041,000 would remain to be carried forward.

The actual increase in the amount of „rest“ during the period of 14 weeks when minimum rate discount 10%, was £583,605, and in the remaining portion of the half year, or 12 weeks, excluding the present week’s return (nämlich that of Sept. 5, ’66), it was £220,327, i.e., less than ½, although there was not a very great difference in the average Bankrate of the 2 periods. If we apportion the increase in the last or balance week, between the 14 and the 12 weeks, the result is as follows, there being 27 weeks included in our figures:

In other words, during the 14 weeks of pressure or period of distress in the commercial world the B.o.E. earned at the rate of 17.16 P.Ct. p. annum, and in the remaining period only 8.32 P.Ct. p.a.

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The B.o.E. Rates of Discount for 22 years.

The only periods during which anything like a steady rate prevails is when value of money is extremely low, or when trade is stagnant, or has become paralysed from the effects of a crisis. A continuous increase in the rate of discount to a high point is invariably followed by a severe reaction to the other extreme. Thus, after 4 weeks of 8% in 1847, the rate successively declined without interruption to 2½%. After 6 weeks of 10% in 1857, the rate again, without a break, fell to 2½%. Early in 1861 there were fears that a crisis would occur; numerous failures were taking place among the Greek Houses engaged in the Levant trade, Bankrate placed at 8% for 6 weeks, after which another fall to 2½% repeated. In the 2 last months of 1863 and during all 1864 Bankrate high, between 6 and 9%. It was generally thought that the rate of money had permanently risen, owing chiefly to the numerous new lending and borrowing Cos. established; but the revolution in the cotton trade accounted for the increased value or demand for money. The new cotton-producing countries required payment in specie, and not in manufactures, for the raw material they sent us. After the exaction of 9% for 9 weeks, towards the close of 1864, a reaction followed, ultimately carrying the rate to 3%. Lately 10% for 14 weeks, and the reaction has already made rapid progress.

After the crisis of 1847 we had 6 years of very cheap money, and during more than 4 of these years the rates oscillated between only 2 and 3%. After the crisis of 1857 we had nearly 3 years of very low rates, 2½ and 3% prevailing for 97 weeks during that period.

Rates of Discount before and after the Gold discoveries.

1st Period, ending Dec. 31, 1851, before the new gold arrived in quantity. 2 Period ends with 4 May 1859. Whatever may have been the immediate effect of the actual receipt of the gold on the rates of discount, it must have been shown or felt in that period. Third Period 7 years and 4 months the ending with the present week. On the 2 occasions when there were the 2 rates of 6 and 7% at the same time, both occurring in the 2nd period, average of 6½% is taken in the following analysis:

Analysis of the Bank Rates of Discount for 22 years.

In the 1st Period of 382 weeks only 20 weeks during which rates over 5% prevailed; nearly 5 years of 2½% and of 3%, or more than 2 years of each. 2½% the lowest, 8% the highest.

In 2nd Period low rates of shorter and the high rates of longer duration than in the first period. 5% prevailed longer than any other rate, lasting for nearly 1½ years. Lowest rate 2, and highest 10%.

In 3d Period: Further reduction in the duration of the lower rates, and another very considerable increase in that of the highest rates of 7, 8, 9 and 10%. 2% again the lowest and 10% the highest rate. Rate most prevalent in this 3d period 4%, lasted more than 18 months.

Aus der lezten column (die whole 22 years) folgt, daß 4½ years of 3% rates, nearly 4 years of 2½%, 1 year of 2%, and about 2 years each of 3½, 4½, and 5%. (verte)

There were 17 alterations in the rate in the 1st period, 24 in the 2nd , and 86 in the third, or over 5 × the number of the first. The total number of alterations is 145.

The average Bank Rate for the whole Period has been £4. 4s. p.C.; in the 1st period it was £3, 5s. 11d., in the 2nd Period £4, 8s. 2d., and in the 3d Period it was £4, 17s. 11d. The 2nd period is 33% and the 3d is 50% higher than the average rate of the 1st period; so that – against the general expectation – the great discoveries of gold have not reduced the Rate of Interest.

Gold and Silver Production in U. St. (1866)

Estimated at from $82 Mill. to $106 Mill. Davon figures California for 25 Mill. $, Montana for 18 Mill. $, Idaho for 17, Nevada 16, Colorado 17, Oregon 8 Mill. $.

Gold in New Zealand for quarter ended 30 June 1866, and year ended 30 June 1866.

Evils of two distinct departments in the B.o.E. shown by her weekly Returns.

While the Banking Department was so much weakened, the Issue Department was actually strengthened, despite increasing liabilities.

Both Departments together.

From 3% of July 1865 to 10% of May 1866 (15 months). Principle: on every occasion of an increase in the rate of discount a decrease in the comparative strength of the Banking Department is shown in the returns; and again, each reduction in the rate has been preceded by an increase of strength. But one main evil is that these frequent alterations, so detrimental to the commerce of the country, very often occur irrespective of the General Position of the Bank. Z.B. The serious and unexpected advance von 4½ to 7% 12 months ago, caused by sudden reduction from 33 to 24% in the strength of the Banking Department, whereas, at the same time, the position of the Bank in its entirety was but slightly affected.

Important and long continued decline in the private securities, which commenced with June, after the first 3 weeks infliction of the 10%. The demand for loans and discounts was reduced considerably through an uninterrupted settlement of outstanding engagements, while comparatively few fresh ones were entered into.

Total Net Reduction on the above 21 weeks: £12,894,276

At the close of each quarter the advances on other securities invariably augment by 2 or 3 mill. Daher on Oktober 3 xxx

Bank of England (1866 November and December.)

Week ending 10 November.

Rapid decline in the Bank’s Discount has chiefly prompted the reduction to 4% on 8 Nov. Owing to the extent to which bills had been held back, in anticipation of reduction in the Bankrate, increased demand for discounts on 8 und 9 Nov. Moderate Remittances to the East (Alexandria, Madras, Calcutta, Singapore and Hong Kong, all silver except £20,175 gold für Alexandria. The whole: £38,046)

Mercantile Embarrassments: Dent et Co (influential China Merchants), their drafts refused acceptance by their London agents, Dent, Palmer et Co. House has agents at Hong Kong, Shanghai, Foo-chow-foo. Liab. 2 to 3 Mill. £. St. Bradford, failure of spinner mit £25,000. Burnley, suspension of Uttley et Lee, manufacturers, Liab. about £20,000. Wednesbury: James Russell et Sons, Crown Tube Works, liab. about £40,000. Russell was director of New Zealand Banking Co , which suspended during recent panic.

Week ending 17 November.

Increase of Reserve owing to diminution of Discounts (Loans) and influx of Gvt. Deposits. Amount of gold gained to Bank by Import und Export transactions only £57,000 und daher die Increase of 253,001 indicates reflux of coin from the provinces.

Mercantile Embarrassments: Adelaide (South Australia) Suspension of Philip Levi et Co, merchants, liab. over £300,000. Largest mercantile failure ever known in the colony. Sidney: Love et Sons, wholesale grocers (liab. £46,000) und Drynan et Co, warehousemen, liab. £42,000. Gillespie, Churchill et Co, most extensive merchants, failed on 23 April, deficiency now shown of £489,490, which has resulted from 4 years trading, £263,831 by bad debts, £212,863 lost on ships, produce etc. Creditors will have 8d. in £.

Week ending 24 November.

Increase of Reserve durch influx of public und private deposits. Mercantile Embarrassments: Will. Dargan, Extensive Irish contractor.

Week ending 1 December.

Increase of Reserve: Owing to influx of Deposits, including lodgments in the Bank by the liquidators of failed Cos. Notwithstanding some little absorption of sovereigns in Ireland, there is, on balance, a steady reflux of coin to the Bank from the provincial circulation.

Mercantile Embarrassments: Liverpool failure of firm of wine brokers, owing to transactions in China trade. Scott et Co, extensive shipbuilders of St. Nazaire, declared bankrupt. They built 5 of the extensive steamers of the Transatlantic Co., employed large number of people.

Week ending 8. December:

Increase in Gvt. und diminution [in] private deposits, usual at this season. Mercantile Embarrassments: Manchester, Abraham Troost et Sons, old mercantile house. Stirling: Suspension of G. Shand et Co, Petroleum trade. Liab. about £100,000. Acceptances of Ramsay, Elder, et Co, Barbadoes, of J. et A. Elder (Antigua) und Elder, Stevens et Co, Bushlane (City) returned. Liab. of H. A. Holden, contractor for public works, about £800,000.

Week ending 15 Dec:

Mercantile Embarrassments: Great Towerstreet (City), failure of Mitchell and Aspinal, teabrokers, liab. considerable. Wm. Alphonse, of Newgate Street, importer of foreign goods. Liab. over £10,000. Liverpool et Singapore: Grant, Murdoch et Co, Indian and African Merchants, liabilities about 300,000. Glasgow: Liddell, M’Gillivray et Co, spinners et manufacturers. Glasgow: Scott et Co, of Cartsdyke, extensive shipbuilders. Owing to this stoppage and that of Scott et Co., of St. Nazaire, the Greenock Foundry Co. compelled to suspend payment.

The advises from Australia by present mail show general revulsions in trade, accompanied by numerous large failures at Sydney, where the pressure for money and consequent sudden contraction of credit by the banks has brought down about 13 establishments mit aggregate liabilities of mindest £800,000. The most important failures were Threlkeld et Co, auctioneers (£400,000), Wilkinson brothers, merchants (£100,000) Joubert et Boucher, merchants, J. et E. Row, wholesale druggists and chemists, Church Brothers.

Week ending 22 Dec.

Addition to Stock of Bullion et Coin almost exclusively from return of coin from provincial circulation. Mercantile Embarras sments: J. Schofield et Sons, cotton spinners, Oldham. James Barber et Co, East India Merchants. This due to debt of £36,000 owing by the Calcutta agent of the firm (i.e. Gordon, Stuart et Co. who caused the stoppage.)

Week ending 29. December.

Increase of Reserve, owing to continued influx of deposits. Augmentation of coin et bullion £432,145, about £120,000 less than amount sent to the Bank during the week from abroad. Difference due to withdrawal of coin by bankers et others to meet Christmas and New Years payments.

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Bank of England and Moneymarket. 1867.

From January to May 1.

Bank of France. (Rate of discount of B.o.E. and B.o.F.)

Notizen über Money Market.

Week ending January 5.

B.o.E.: Government payments at the end of the year have caused diminution of £544,231 in Treasury Balance, and tended to swell the circulation. £800,000 became payable for dividend to creditors of Overend. Yet, owing to anxiety of commercial firms to have good balances at their bankers on 31 Dec. combined with the efforts of the Jointstock Banks to draw in money, private deposits increased 2 mill. At the same time the demand for money usual at turn of year caused increase of more than 2½ Mill. in discounts (Loans). Hence Decrease in Reserve.

Rise in Home Railway Shares, traffic returns good, trotz slackness of trade in the North. Renewed demand for Jointstockbank Shares, nearly all somewhat scarce in market.

Week ending 12 January, 1867.

Advance in Railway shares for some weeks past. Upward Tendency for Bank Shares. Australia: Improvement from Melbourne, under influence of wool export. At Sydney better feeling, in expectation of early improvement of business, owing to more favourable news from England. It was thought that the natures of the advances sent home would tend to diminish shipments to Australia, and enable holders at Sydney to relieve the markets of the surplus stocks which had been accumulating for months. Several additional failures, important nur der of A. Morris mit liabilities for 103,000l.

Week ending 19 Jan. 1867

Return shows the effect of completion of dividend payments. About 2 mill. withdrawn from private deposits; almost wholly made up by repayments on advances on private securities (the decrease in these advances being £1,751,260); and result is a draught of only £144,617 upon Reserve.

Mercantile Embarrassments: Telegrams from China, via Galle, dated Hong Kong, 15 Dec. (1866) announce that Dent et Co. have provided for their draughts, which were refused acceptance by their London correspondents at beginning of Nov. last, through the assistance of Msrs. Jardine, Matheson et Co. and others.

Week ending Jan. 26. 1867.

The heavy retrenchments of private deposits von B.o.E. counteracted by considerable influx of Gvt. deposits. The decrease of coin et bullion by £389,497 is by £96,000 less than the amount of gold withdrawn from the Bank during the week for exportation. Hence coin must still be flowing back from the internal circulation. – Failure of firm in Sugar Trade, liab. £30,000.

Week ending February 2, 1867.

9 Jan. stock of gold and silver coin and bullion in B.o.E. the enormous amount of £19,438,000. Since then up to 30th reduced by withdrawals for the Continent to £18,890,420, a decrease of £547,578.

Week ending Febr. 9. 1867.

On 8 Feb. Bk.o.E. minimum rate of discount reduced to 3%. This lowest point since 15th June 1865. A 3% rate has prevailed at the Bank only 3 times since 1860 and 4 times since 1853.

Improvement in Foreign Stocks: Brazilian, Russian, and Egyptian all quoted higher. Colonial bonds continue favourite medium for investment. Bankshares higher prices. English Railway Stocks dagegen less than dull. (Collapse of London, Chatham and Dover .)

Week ending 16 Febr. 1867.

During the week the Bank parted mit £51,000 in gold for export, dennoch increase of £153,189 in coin et bullion; shows that the reflux of coin from the provinces is considerable. Mercantile Embarrassments: Manchester: N. J. Amies, smallware manufacturer, liab. about 30,000£. Bradford: Edward Craven et Co, stuffmerchants. Australia: Sydney: failure of G. A. Lloyd et Co., merchants, liab. about £200,000. At Adelaide Younghusband et Co stopped payment, liab. £65,000.

Week ending 23 Febr. 1867.

B.o.E. Government deposits diminished, large increase in private deposits, accompanied by repayment to the Bank of a further portion of its advances on private securities. Increase of £134,031 in coin and bullion, in face of the fact that the import and export movements of the week were almost exactly balanced, shows continued reflux of coin from the internal circulation.

Week ending 9 March 1867.

Discount market characterised by the increased movement often noticed in the last month of each quarter. Good deal of money transmitted from Paris to this country to be invested in the best bills, though, in some cases, on such transactions.

Notizen über Moneymarket.

Only 2¼% obtainable. Railway Market gloomier than ever. (This week the Great Western announced its inability to pay the 1% dividend it had declared. Fall of 2% in Midland , 2½ in Gr. Western, 2 in London and North Western , 1½ in Lancashire and Yorkshire etc. Hopes founded on Paris Exhibition traffic continue to support South Eastern, which has declared only ¾. – Failure of Th. Gaskell jun, an underwriter at Lloyd’s.

Week ending March 16. 1867.

The falling off of £117,730 in coin and Bullion (B.o.E.) is almost exclusively due to demand for coin for Ireland, the Bk. having parted mit only £13,000, on balance, for export during the week.

Mercantile Embarrassments: Failure of a dealer on Stockexchange on 14 March. Manchester: Laurence, Hindle, et Son commission agents at Manchester, and cotton spinners at Accrington. Australia: Marsh, Cumberland et Co, warehousemen, liabilities in Melbourne 3000£, in England £17,000; ditto Chalk and Price, in the same business, liab. £24,550 (Assets: £22,300). At Sydney failure of Dibbs et Co, merchants, liabilities 31,624.

Week ending March 23, 1867.

During the week, on balance, £113,000 in gold sent into the Bank from abroad, and increase of £205,211, this difference must be represented by the coin returned from the country. Mercantile Embarrassments: London, Goodyear et Co, St. Paul’s Churchyard, straw-hat warehousemen, liab. more than £200,000. Leeds failure of Wilkinson et Co, flax spinners of Hunslet. The difficulties have chiefly arisen from connection mit Leeds Banking Co , in which one of the partners was large shareholder.

In British Railway Stock speculation considerable. The tone, upon the whole, steadier, with some disastrous exceptions. After a prolonged mania, during which any concocter of a prospectus could realise a fortune out of public credulity, months of unwarrantable distrust, when even the soundest securities could find no purchasers. Now all streams into channel of Indian Guaranteed securities. Investors rush wildly into the India 5% stock, good, but whose present price about its merits. With the same unreasoning concord a large number of proprietors willfully sacrifice, good, bad, and indifferent railway stock etc. Is all originality, all discrimination in such matters utterly out of the question?

Week ending 30 March 1867.

B.o.E. Increase in bullion and coin of £165,786; there must, over the gold received from abroad, have been between 60 and 70,000l. returned from the provinces. Embarrassments: Ch. Newton, brothers, Australian trade (London). Liab. 240,000. (consequent upon failure of F. Goodyear et Co in Australia, and inadequacy of remittances from Australia to meet engagements.) Leeds: S. Sykes, flax spinner, liab. about £30,000. Glasgow failures of Weir, brothers, wine and spirit trade, liab. about £100,000.

Week ending April 6, 1867:

B.o.E. Heavy Gvt. and other payments at end of quarter. Hence, trotz increased deposits, advance on private securities has trenched upon Reserve to nearly 1 Mill. Bank received during week about £289,000 from abroad (gold), but owing to temporary demand for coin at this season the whole has disappeared in addition to further sum of £118,294. Mercantile Embarrassments: Manchester W. Horsfall, of Albert Mill, liab. £20,000, chiefly due to mortgages. Ditto Leming, spinner und manufacturer, Glossop.

Week ending April 13. 1867:

B.o.E. Payment of dividends began on 9. April, has produced only diminution of £221,844 in Reserve. What Bank lost through payment on Gvt. Account, made up by influx of private deposits and repayment of its quarterly advances. Failures etc: S. Lella, merchant, City, direct liab. £30,000, for endorsements about £50,000.

B.o.E: The 209,617£ withdrawn from coin and bullion consists fast nur of coin taken by the receivers of dividends.

Week 20 April 1867:

B.o.E: Some coin withdrawn for internal circulation, since Bank received from abroad about 200,000 in gold und its increase in coin and bullion nur £88,198. Failures: Halifax; Rothery, brothers, worsted spinners, liab. about £9000. Stockport, Robinson et Co. manufacturers, considerable liab. Australia, one failure only of importance: Strachan and Co, Sydney and Maitland.

Week ending 4 May, 1867:

B.o.E. Reflux of gold from provinces, da falling off nur 88,032£, obgleich gold export withdrawn £192,000.

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1. Text nach MEGAdigital (Berlin-Brandenburgische Akademie der Wissenschaften), MEGA² IV/19, Lizenz CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0/); der editorische Apparat der MEGA ist nicht wiedergegeben. ↩