Heft „1869 I Heft“. I. Bank of England and Money Market 1868

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

• 1. Handelsgeschichte 1868. Auszüge. 1–86. Register dazu 87–89.
• 2. Goschen, Theory of Exchanges. 90–138
• (Register auf Rückumschlag.)
• Mit Kaufmännischer Rechnung Heft I

1869 I Heft

Bank of England and Money Market.

January to March (incl.) 1868.

Operations of Clearing House. Week ending 1 January to week ending 25 March 1868.

Bank of England and Money Market. April to June (incl.) 1868.

Operations of Clearing House from Week ending April 1 to week ending June 24, 1868.

Bank of England and Money Market. July to September (incl.) 1868.

Operations of Clearing House from Week ending July 1 to week end. September 26, 1868

Bank of England and Money Market October to December (incl.) 1868.

Operations of Clearing House from Week ending Sept. 30 to week ending 23 December, 1868.

Bank of France

(Rate of Discount B.o.E. ditto) January to December 1868.

Notes to Movement of Money Market. 1868.

(January.)

Week ending Jan. 4. 1868.:

Reserve der B.o.E. decreases by ¾ of a million, obgleich Bullion und daher circulation issue increases. Aber wegen turn of year sudden and sharp demand for loans und discounts, daher increase von £2,606,510 in private securities. Da aber deposits zugleich rise by 2,888,766£ to be inferred that this demand to a large extent precautionary only, and perhaps due in part to the desire of people in business to increase their balances at the end of the year. Da aber Gvt disbursements on account of salaries etc, have caused the public deposits to be drawn down to the extent of £864,554, the reserve has decreased ¾ million.

Mercantile Embarrassments: Stoppage of Cardwell et Sons , of Heckmondwike (Leeds). Liabilities about £30,000.

Week ending Jan. 11. 1868.

B.o.E. Return: Effect of payment of dividends (began on Wednesday 8), hence large diminution in Gvt. deposits and increase in private deposits, accompanied by repayment to B.o.E. of considerable portion of the advances lately made by it on private securities. At the same time increase of 1,100,000£ in Gvt. securities in banking department; cause, probably, advances by the bank on deficiency bills. Trifling decline in coin und bullion, obgleich result der import und export movements of the week, so far as the Bank is concerned, was addition of about 53,000£ to its stock; but coin taken away by the receivers of the dividends.

Discount Market very quiet, with superabundance of money, owing to the payment of dividends, amount of which nearly £7,000,000. About 3,000,000£ of this, however, returns to the Bank in repayment of loans and advances obtained from it during the last few weeks.

Some fall in the London and Westminster old bank shares, ditto shares of the Union Bank, on announcement of a dividend of 15%, being 2½% less than for last year.

Railway Stocks: speculative operations on large scale, but entire absence of bona fide business. Decrease of traffick on all Scotch lines.

Week ending Jan. 18. 1868.

In Clearing House heavy business on 15 (Wednesday), in connection mit first settlement in the Stock Exchange for the new year; but the weekly returns continue to show that amount of mercantile bills afloat considerably below average.

Mercantile Embarrassments: failure of H. Bennett , ironmaster (Shropshire). His liabilities chiefly due to the makers of pig iron. Failure of J. Richards et Co , Smethwick (Birmingham), iron trade. liab. about £15,000

Railway Market decidedly firmer; with 1 or 2 exceptions prices rising. No increase of bona fide business, but large amount of stock has been bought to cover recent sales for a fall. Rise greatly helped by failure in connection with the settlement of an adverse operator, who had about £100,000 stock, chiefly Mitland, open for a decline, and whose transactions have within the last few days been mostly closed by the dealers to whom he had made sales.

Week ending Jan. 25, 1868.

Plethora of money extreme. Good bills taken at 1¼ to 1⅜%, or ⅝ to ¾ below the minimum at the B.o.E., where daher few applications. Mercantile Embarrassments: Schuloff et Co , Spanish merchants, Birmingham, stopped. liab. about £7000.

Bankshares continue to recover from late depression. In railway market buoyancy. Decided rise in London und North Western und North Eastern stocks by circulation of favourable reports on forthcoming dividends; public do not invest in railway stocks, but neither do they sell; and the unsettled speculation for the fall, acting upon a market bare of stock, occasions firmness, and an upward movement in prices. ⦗This afternoon (Jan. 24) sudden und rather severe relapse in Metropolitan stock.⦘ Large purchases to close speculative accounts.

Notes to Movement of Money Market. 1868. (February. March.) (April)

Week ending 1 February ’68:

B.o.E. return show reflux of coin from the provinces. Dann Bank parted mit £89,000 in gold for export in excess of the amount received from abroad; yet increase in coin et bullion of £118,722. Railway market: prices still supported by transactions to close speculative accounts. Relapse (Jan. 31) upon the announcement that an injunction had been granted to restrain the directors of the Metropolitan line from paying the proposed 7% dividend. Its stock fell 5⅜%. Hence reaction upon other Railway Stock.

Week ending 8 February, ’68:

Flow of gold from the B.o.E. to the Continent, chiefly in payment for foreign stocks imported into this country; has told upon the Bullion Reserve. Money Market has not been affected. In the general market good bills discounted at 1¼ to 1⅜%.

Nach circular of Mr. F. M. Page specie shipped to the East von 1860–1867 (incl.) yearly average £14,401,100. 1860 it was £13,500,372; rose in 1864 to £24,318,189, highest total ever reached, declined from that point till 1867, when exportation only £3,659,154.

Clearing House: Friday (Jan. 31) £20,452,000. This was Stock Exchange Settlement, shows decided revival of speculation in railway und foreign stock markets.

Week ending February 15. ’68:

B.o.E. £445,000 in gold withdrawn for exportation; diminution in its stock only: 149,274£, shows large reflux of coin from internal circulation. Mercantile Embarrassments: Failure of Gilchrist, Smith et Co. shipowners (Liverpool.) Welch et Son (ironmasters), Tipton. Failure of grocer (Dublin) liab. to about £32,000. 6s. in £ assets. Stoppage chiefly caused by speculations in the London Tea Market.

Week ending February 22. ’68:

Export from B.o.E. £573,000 (gold); in consequence of the continued receipt of sovereigns from the provinces, diminution in its stock only £413,811. In general Market rate: 1⅜ to 1½%. Owing to improvement in Paris exchange, demand for gold for exportation has diminished.

Week ending February 29:

B.o.E. shows increase of £157,640, though the net result to the Bank of the week’s import and export transactions was a withdrawal of £103,000. Hence must be considerable coin reflux from the provinces.

Indian Exchange: Owing to the recent rise of cotton here, and to consequent orders to buy the staple in the East, the exchanges at Bombay and Calcutta have risen, and a similar movement, adverse to this country, has taken place here. This will prevent the expected remittances of specie from India.

Mercantile embarrassments: Failure of W. H. Smith, Barry et Co , house in East India Trade, liab. £60,000. Failure of John Jones, coke and iron master, of Walsall and Netherton, large liab. Suspension of Msrs. Murcott, Wright et Co , of Lanesfield Ironworks, Springvale. Liab. 27,000.

Week ending March 7:

Increase of advances der B.o.E. on private „securities“ by £1,306,199, owing partly to preparations for the bills maturing on the 4th. This draught having been only partly made up to the Bank by the influx of deposits, decrease in reserve is £689,127. The decline – £213,597 – in the coin and bullion corresponds almost precisely with the gold withdrawn from the Bank for exportation. … The Foreign demand for wheat in British ports having fallen off, in consequence of further large arrivals at Marseilles, the demand for gold for the continent has increased, and further amounts are likely to be taken from the B.o.E., besides all the supplies that may come to hand from Australia and America.

Clearing House, the total unusually large (78,000,000) owing to Stock Exchange settlement on the 28., and the numerous bills which fell due in the first few days of March.

Railway Market: tendency to sell speculatively diminished. Public still hold aloof.

Week ending March 14:

Owing to increase in deposits, not accompanied by any corresponding increase in the advances on securities, an addition of £461,703 has been made to the reserve. As result of import und export transactions this week, the Bank parted mit £72,000 in gold; yet increase of £43,338 in its bullion und coin; hence evident that coin is flowing back from the internal circulation.

Discount market seems gradually tightening, and this tendency is likely to be increased by revival in the demand for silver for India. This owing to the recent important advance in the price of cotton here, and consequent despatch of large orders to buy in the East. Hence active demand yesterday (March 12) for bar silver for exportation to Bombay, and Calcutta, and upwards of £250,000 was purchased at quotations ranging from 5s. 0⅞d. to 5s. 1⅛d. per ounce, being ⅜d to ⅝d. above the last price. The whole of this silver must, it is stated, be imported from the Continent, and this will tend to increase the demand for bar gold for that quarter.

Week ending March 21:

Owing to return of specie from the provinces, the Coin and Bullion of B.o.E. have increased £101,897; though the Bank, on balance, parted with about £11,000 in gold for export during the week.

Discount market still gradually tightening, and it would appear that a distinct influence is now being exercised by the large revenue payments ⦗Steuern für Govt.⦘ into the Bank. The supply of money having diminished the rates for the best bills have advanced to 2%, and, the terms in the general market being thus equal to those of the B.o.E., brisk demand at that establishment.

Railway Stocks: variations in prices nearly all in upward direction. No increase of bona fide business; improvement caused by purchasers to close speculative accounts.

Week ending 28. March:

Large influx of the revenue (gezeigt durch Increase of £1,360,252 in Public Deposits), as usual at the close of the quarter; this naturally accompanied by increase of corresponding amount in the loans from the Bank on private securities, and by some withdrawals of private deposits. The result is a diminution of £150,584 in the reserve. During the week the Bank parted with £12,000 in gold for export more than it received from abroad, yet the reflux of coin from the provinces has caused an increase of £156,656 in the coin and bullion.

Bullion market: Gold; demand for export now exists only for refinable qualities, the Continental exchanges having experienced a marked rise during the past few days.

Mercantile Embarrassments: Failure of Jordan, Craik et Co (Cape, Port Elizabeth) owing to „the continued depression in London market of our colonial produce“. Liab. 60 to 70,000£.

Week ending April 4:

Demand for money on B.o.E. – as tested by the position of the advances on private securities, heavy, as usual at the turn of the quarter; while, at the same time, there have been large withdrawals of Gvt deposits for the payment of salaries etc. Thus, notwithstanding considerable increase in private deposits, the falling off in the reserve £1,166,911. The decrease in the coin and bullion is £333,971, of which £133,000 was withdrawn for export, while the balance must have been absorbed in the quarterly payments on Gvt and other accounts.

Notes to Movement of Money Market. 1868. (April. May. June) (July)

Week ending April 11.

B.o.E. Return shows effect of the payment of dividends beginning on 8. April. The effect of the large withdrawals of Gvt. deposits largely neutralised by an influx of private deposits, and by the repayment to the Bank of heavy advances previously obtained from it on private securities ⦗besonders on the part of the discount houses and brokers.⦘ Net decrease in the reserve is thus: £721,311. The dividend and other payments usual at this season have caused a diminution of £279,035 in the coin and bullion, though the Bank received from abroad during the week £82,000.

Discount Market easy. The payment of the dividends attended with a large increase in the supply of money seeking employment, good bills daher easy to place at 1¾% or ¼ below the minimum Bank o. E. rate.

Mercantile Embarrassments: Failure of 2 manufacturers, Hargraves und Simpson (of Burnley) R. Massey (of Accrington) (Lancashire.)

Week ending April 18:

B.o.E.: The large withdrawals of private deposits fully made up by the influx of Gvt. deposits, combined mit repayment of advances on private securities; hence small increase in reserve. During the week the Bank received, on balance, £77,000 gold von abroad; the whole of which, zusammen mit further sum of £113,797 taken away by receivers of the dividends.

Week ending April 25:

Mercantile Embarrassments: Failure of A. Barlow , contractor, Stoke (North Staffordshire) liab. about £.27,000.

Week ending May 2:

B.o.E. discount (2%) und that of general market now the same. The prospect, however, of a large influx of Australian and other gold militates against prospect of any early advance in the Bank’s charge. (1,609,000£ gold reported on way from Australia)

Week ending May 9:

B.o.E.: diminution of £533,674 in the reserve attributable to revival in the demand for discounts and loans at the Bank. In general market discount rates show upward tendency. Only the best short dated paper being taken at 2%, whilst 3 months’ bills charged in most quarters 2¼ to 2½%. Hence applications large at B.o.E.

Stoppage of Msrs. Roskell, Arrowsmith and Kendal, bankers, of Preston and Lytham. Liab. valued at about 80,000£. Failure of J. Knight , earthenware manufacturer, Longton.

Week ending May 16:

Recent stringency in money market diminished. Best short dated bills more readily taken at 2%, and 3 months’ at 2¼. The terms at the B.o.E. now practically below those current at other discount establishments. Hence doubtful whether this quarter will end without an advance in the rate to 2½%; but the amount of gold on the way to this country from Australia and America is almost unprecedented, and any advance in the rates here would attract a portion of the enormous amounts of capital now unemployed on the Continent.

Belding, Keith et Co , American trade, liab. about 50,000£, little or nothing in the shape of assets.

Week ending May 23:

Failure of M. Couvelas (Merchant) Manchester, liab. 58,000£. Melbourne: failure of Darlot et Co , squatters (31,000l.), Appleton , draper (21,000l.)

Railway Stocks steady.

Week ending May 30:

B.o.E. Received from abroad £391,000 in gold, after allowing for a withdrawal of 150,000l. for Egypt; as the increase is, however, über 500,000l., evidently reflux of coin from the provinces.

Discount Market: Great ease; best 3 months’ bills taken at 1½ to 1⅝%, very few applications at the B.o.E. Continued influx of bullion.

Suspension of F. Mitchell , manufacturer, Blackburn; ditto Nichols and Monk , manufacturers, of Halshaw Moor (Manchester). Stoppage of Bassett etc, hop and seed factors, of the Borough. (Depreciation in value of hops cause)

General improvement in Railway Stocks, despite unfavourable traffick returns of some principal railways. Greater buoyancy in public securities (Stock Exchange) than since panic of ’66. Abundance and cheapness of money, impossibility of finding employment for it in ordinary commercial channels, influx of gold, satisfactory reports on crops etc.

Week ending June 6:

Discount market extremely easy; owing to continued influx of gold, rate still drooping. Best 3 months’ bills at 1½% , occasionally at 1⅜. Hence few applications to B.o.E.

Mercantile Embarrassments: In connection with recent important fall in prices, failure of firm in London Corn trade (liab. about 20,000l.) Failure of John et W. Sanders , builders, Gray’s-inn-road. liab. about 20,000l.

Railway Stocks: Public still avoid making purchases, but considerable transactions for the rise on account of speculators, mostly in the country, who are enabled to take up stock during the present plethora of money, through advances made by bankers. Caledonian, Great Eastern, Great Northern, Lancashire and Yorkshire, Brighton, Midland, and Berwick, have been in demand, and advanced.

Week ending June 13:

Discount Rate in General market lower than ever. Stock Exchange so fully supplied mit money that it is difficult to place loans on English Gvt. Securities at 1% p. annum. No demand for bar gold on the continent, except for refinable qualities. Gold continuing to flow in from Australia and America.

Week ending June 20:

B.o.E. During the week a net amount of £126,000 in gold sent into the Bank von abroad, aber increase von £366,230; hence considerable reflux of coin from provinces. Plenty of gold is still coming. (von Australien und America)

Mercantile embarrassments: Failure of Cutler and Barker , seed and hop factors, London, house existed for 82 years; difficulty arisen from their being creditors to £17,000 on Bassett, who failed in the hop trade on 28. ult., and show only about 5s. in £. Liab. about 120,000£. Sydney: Failure of L. Lockhart , New Zealand Trade, liab. about 24,730.

Week ending June 27:

B.o.E.: The increase – £391,936 – in coin und bullion exceeds by about 180,000£ gold sent into Bank from abroad during week; difference must be occasioned by reflux of coin from the provinces. Discount Market somewhat tighter – effect of the temporary movement usual at this season. Railway Market heavy this week.

Week ending July 4:

During the week B.o.E. received about £107,000 (gold) from abroad, but the payments incidental to the season have carried away this sum, und further caused a decrease of £211,760. (Ende des halben Jahres; gvt payments etc) At this turn of year people in business, as well as joint stock banks, desirous of accumulating large balances. The terms for good bills in the general market 1¾%, and a strong demand experienced at the B.o.E. Rate of Discount in open market at Paris 1½ p.c., Hamburg 2¼, Amsterdam 2½, Berlin 3, Vienna 4, Turin 4½, St. Petersburg 6%.

Week ending July 11:

B.o.E. Return shows the effect of one day’s dividend payments which commenced on 8. Gvt. deposits drawn down to £2,624,630, plus £1,400,000, advanced to Chancellor of Exchequer on some Gvt. security. Aber private deposits swelled by £1,661,172, while £2,038,846 repaid of advances on private securities; the reserve only diminished by £150,824. Decrease in coin und bullion only £199,697, despite a large shipment of specie to Buenos Ayres on account of the Argentine loan.

Mercantile Embr. Smith (of Smith, Knight et Co) Contractors, applied to Court of Bankruptcy (on 8.) for order of discharge granted. Liab. over £490,000; assets £4000 of bills „considered good“; £407 land at Hornsey; „doubtful claim of £118,000 on the Penarth Harbour, Dock, and Railway Co, not yet realised.“

Railway Stock: Flat. Several Stocks fallen considerably. Public, on balance, sell. Speculators on rise hesitate in face of existing uncertainty as to forthcoming dividends.

Week ending July 18:

B.o.E. Of £365,007 decrease in coin et bullion £241,000 withdrawn for exportation. The sum of £250,000 (sovereigns) was withdrawn from the Bank on July 11 for Buenos Ayres on account of Argentine loan. The remittances of specie to the East show an increase. The steamer Massilia, which left Southampton on 11. inst., took £148,955, wovon £10,000 for Point de Galle, £40,000 for Bombay, £4,285 for Madras, £73,500 for Singapore, £5,000 for Batavia, £13,960 for Hong Kong und £2,210 for Yokohama.

Mercantile Embarrassments: Liverpool, failure of cornmerchant, partly caused by stoppage of Marassi et Sons, of Galatz and Ibraila. Australia: Stoppage of Hendrick, Livermore, et Co, of Rockhampton, Queensland, liab. 45,000£.

Railway Stocks firmer, rising. Now that quarter has turned and their supply of floating capital largely increased, bankers anxious to lend on railway securities.

Notes to Movement of Money Market. 1868. (July. August. September. October.)

Week ending July 25:

B.o.E.: During week result of import and export operations to add £17,000 to Banks bullion stock; yet return shows a decrease of £109,201, owing, doubtless, to harvest requirements. Australian advices to 21. June announce additional shipments of gold to England to £381,000, making the total on the way hither, including the sum previously advised, nearly £1,200,000. The steamer Bangalore will take to-morrow (25. July) £60,631, of which £34,892 is silver for Hong Kong, £21,400 silver for Shanghai, und £4,339 gold for Madras.

Railway Stock. Good demand, changes in prices upward. The large supply of unemployed money in the hands of bankers, and the more favourable traffick returns issued by some of the principal Cos., have induced purchases.

Week ending August 1:

Bullion Market (July 30): Gold: Since 23. July following arrivals: £170,000 (per China), £53,500 (per Saxonia), £69,500 (per Hansa) £23,000 (per City of Boston) all from New York; £2,000 (per Etna) from Halifax; £31,000 (per Reigate) from Melbourne; £26,000 (per Countess Kintore) from Otago; £44,900 (per Tasmanian) from the West Indies; total, £420,900. The demand for abroad so active that only £22,000 sent into the Bank; the balance, together mit £96,000 withdrawn from the Bank, has been sent away. Silver: The Tasmanian brought about £65,000 from the West Indies. The demand is only for the Continent; prices are therefore slightly lower, may be quoted as 60⅜d. p. ounce standard. Mexican dollars: As the demand for China has ceased prices are lower, and the coin is now only taken for refining purposes.

Mercantile Embarrassments: Failure of John and Ed. Corderoy et Co , provision merchants, London, liab. about £50,000. Liverpool: Zeigler, Meiss et Co , liab. about £200,000, chiefly in connexion mit transactions in cotton to arrive.

Railway Market buoyant, important rise in prices. The fortnightly settlement has shown a comparatively small supply of stock in the market, und besides bankers more desirous to make advances upon these securities wegen absence of any active demand from merchants and others for discount.

Week ending August 8:

Increased demand for money. Decline in coin and bullion £592,662, exceeds by about £392,000 amount taken from Bank for export during the week, absorption of coin in harvest payments. Ferner amounts withdrawn privately for transmission to Paris in connection with the new French Loan.

Mercantile Embarrassments: 2 members of Stock Exchange failed, owing to losses in operations for a rise, chiefly in Consols, Spanish Bonds of 1867, and Turkish of 1865.

Railway Markets flatter, fall in prices; unfavourable traffick returns issued by most of the principal Cos., und increased demand for money in the discount market.

Week ending August 15:

Traffick Returns of Railway unsatisfactory, most of them showing a decrease, compared with the corresponding period of 1867.

The Exchanges: The disturbing influence exercised by the new French Loan having now exhausted itself, Foreign Exchanges once more moving in favour of this country.

Week ending August 22:

B.o.E. bullion fallen off (£65,528), although £150,000 in gold sent into Bank during week. Absorption by increased circulation of coin for harvest labour and tourists’ purposes. On the other hand, Reserve increased (by £222,322)

Week ending August 29:

Mercantile Embarrassments failure of Lond. firm of stockbrokers. Glasgow – Newlands et Co (Brazilian trade), liab. about £120,000.

Week ending September 5:

B.o.E. Addition to Bullion less than sent in. Difference from addition to coin circulation, owing to harvest and other temporary demands.

Week ending September 12:

B.o.E. adds to Bullion stock as result of export und import movements, on balance; but return shows decrease (110,505£), considerable absorption for travelling purposes.

Railway Market: firm this week, most of the principal stocks improved. Few bona fide purchases, but satisfactory character of traffic has induced many of the recent operators for a fall to close their accounts.

Week ending September 19:

Discount Market: good bills at 1½ to 1⅝%, the supply of money being very large. However, we are now approaching the end of the quarter, and the unsatisfactory condition of the public balances renders it probable that Gvt. will be obliged to seek a considerable advance from the Bank. At Paris discount in open market 1¼%, Hamburg, Frankfurt, Brussels 2%, Amsterdam 2½, Berlin 3, Vienna 4, Turin 4½, St. Petersburg 5½%.

Mercantile Emb. Bankruptcy of Quarles Harris et Co , Oporto Merchants, London. Liab. about 40,000l.

Railway Market: Depression in Caledonian Stock, North Brit. , Great Northern A, Chatham et Dover , London and Northwestern , Sheffield, Lancashire and Yorkshire , Great Western ; Dagegen improvement in: Metropolitan , North Eastern etc.

Week ending September 26:

B.o.E. Increase in coin et Bullion £188,848, whereas £293,000 in newly imported gold sent into Bank from abroad during the week.

Week ending October 3:

B.o.E. Increase of coin et bullion of only £36,296, although during week £235,000 in newly imported gold sent into the Bank. At this period of the quarter considerable amount of coin usually withdrawn in connexion mit Gvt and other disbursements.

Week ending October 10:

B.o.E. received during week from abroad £159,000 in gold over and above what it parted with for export, and, as the coin et bullion show a diminution of £293,191, a total of £452,191 must have been absorbed into the internal circulation.

Mercantile Embarrassments: Suspension of Salavy et Co , French House (London), besonders in silk trade, mit connections at Marseilles. Liab. about £100,000. Melbourne: failure of James Anderson , squatter, liab. £200,000, and virtually no assets. The losses chiefly made in land speculations in the colony.

Week ending October 17:

B.o.E. Payment of dividends commenced on 14. inst. As no immediate employment could be found in the market for the dividend money, it was largely transferred to the private deposits, so daß reduction of reserve only £411,695. On the import and export transactions of the week the Bank parted mit nur £10,000 in gold, as diminution of its treasure £543,695, continued absorption of coin (internal) far beyond what usual at this period of the quarter.

Week ending October 24:

B.o.E. During week upwards of £100,000, in newly imported gold sent into the Bank, yet decrease of its treasure of £217,076, thus indicating still an unusually large absorption of coin in the internal circulation. This may be due, in part, to the pending elections.

Discount Market little alteration. General decline in the rates of foreign exchange, in consequence of which the bulk of ½ mill. of newly imported gold diverted to the Continent. Disposition on part of public to embark in new Colonial and Foreign Securities; inferred that the payment for these will be attended with a certain effect upon the moneymarket. The principal feature of the week was large business, und almost general rise in Foreign Stocks, which have been extensively taken, in consequence of the high rates of interest they offer, and the great abundance of money. Dabei xxx thätig speculative holders on borrowed money.

Railway Business quiet, transactions upon limited scale.

American Securities: Rise.

Notes to Movement of Money Market. 1868. (October, November, December.)

Week ending October 31:

B.o.E. During the week the Bank, on balance, parted with £71,000 in gold for export.

Discount Market: influenced a little by the alteration in the character of the Bullion movement. Discounters insist upon 1⅝ to 1¾% for the best 3 months’ bills. The demand showed a sensible increase to day, partly in connexion mit dem settlement in the Stock Exchange. At the Bank discount office applications to-day likewise increased.

Foreign Exchanges: At the present rate of exchange – 110 – increased remittances of gold from New York may be expected. The Foreign (European) Exchanges without recovery; on Oct. 30 the rates for bills on France, Hamburg, and Italy quoted rather worse for this country than on Friday last.

Stocks: Funds without important movement. Yet the continued flatness of the foreign exchanges, combined mit some withdrawals of gold from the B.o.E., have led to a number of operations for the fall, resulting in a decline of 1–16 to ⅛ p.ct.

Railway Market. Flat. Amount of business limited, but consisted almost entirely of sales. There has been an increased supply of stock at the settlement (completed Oct. 30) and decrease of traffic in several lines. Almost general fall in prices.

Week ending November 7:

B.o.E. Advances on private securities still unusually low, but increase in commercial demand for money shown by the withdrawal of £1,298,459 private deposits. Decrease in treasure £367,123, obgleich gold withdrawn for abroad, on balance, nur £204,000. Coin still temporarily absorbed for electioneering purposes.

Discount Market: Better demand at B.o.E. In general market upward tendency; best short bills 1¾ p.c., 3 months’ paper 1⅞ to 2%.

Foreign Exchanges: somewhat more in favour of this country, except Spain.

Clearing House: On 4 Nov. 1867 clearances £11,948,000, 4 Nov. 1868 dagegen 12,710,000. This increase in number of commercial bills afloat zeigt improving trade.

Mercantile Embarrassments: „United Service Bank“ (lim.) stopped payment. Stoppage of F. W. Hancock , insurance broker, of Lloyds. Manchester: failure of Hockmeyer et Co , commission agents.

Stock Market: signs of heaviness, owing to the constant creation of new securities, and the belief that the steady introduction of foreign loans, by affecting the exchanges, and drawing away gold from this country, will result in somewhat higher value of money. Railway Market on the whole steady. Little bona fide business except in debenture and other guaranteed stocks, which have been absorbed to a considerable extent by investors. The speculative transactions in the ordinary stocks are now mostly regulated by the traffic returns, which are closely scrutinised.

Week ending November 14:

B.o.E.: Increase of £588,774 in the private securities indicates revival in the Bank’s discount and loan business.

Discount Market: Idea that Bank would raise its discount (on 12 Nov.) No such action having taken place, and many persons having apparently supplied themselves beyond their actual requirements, market to-day (13.) quieter, but the rates not below 1⅞ to 2% for choice bills. Exchanges now steady, and the foreign drain of gold from the Bank has almost ceased.

Mercantile Emb. Liverpool suspension of D. Robertson et Co , timber merchants, liab. about £50,000.

Stock Market: Many purchases on the Foreign Stock Market; result: important rise in many cases. Public tired of low rates afforded by the banks and discount houses for money on deposit, seem still disposed to buy securities yielding a much higher rate of interest, and this, too, with comparative safety.

Week ending November 21:

B.o.E. The amount of the decrease in the coin and bullion (£1,002,191) agrees very closely with the sum (£1,076,000) known to have been withdrawn from the Bank during the week for exportation – chiefly to Russia. Inasmuch, however, as the drought which these withdrawals have made upon the private deposits have been less than might have been expected (£486,144), and as the Gvt. deposits have increased (285,771l.), the reduction in the reserve does not exceed £554,976, in spite of increase of £556,817 in the Banks advance on other securities. Diminution zugleich of £447,215 in active note circulation.

Discount Market. Rise in minimum Rate of B.o.E. von 2% (at which it has stood for 69 weeks) to 2½%. On 17. inst. 1,000,000£ in gold withdrawn from B.o.E., for shipment to Russia, through Msrs. Baring Brothers and Co. The money forms part of the proceeds of the Russian railway loans lately issued in this country. The form of remittance is Russian imperials, and nearly the whole amount of that coin held by the Bank has been thus absorbed. Immediate effect: increased demand for money, and an advance in the rates in the general market. On 19. inst. Directors of B.o.E. raised to 2½%. General terms for good bills 2⅜ to 2½%. For choice 6 months bank bills 2¾ to 3%. 16000 sovereigns for Nova Scotia, and 12,000 for India withdrawn from the Bank on 19. Of the Australian gold now on the way to England, amounting to £994,500, about £150,000 will be due within next week or 10 days.

Stock Markets: Foreign stocks have mostly receded, being sensitive on account of the existence of a large floating speculation for the rise, and because a considerable amount of the new loans lately issued is still held on borrowed money. In the Railway Market sales preponderated. Extraordinary rebound of no less than 6½ p.c. in Erie Railway shares, the speculative excitement prevailing in these shares at New York being to some extent reflected here.

Week ending November 28:

B.o.E. Decrease of treasure (£100,022) less by about £60,000 than the sum withdrawn from the Bank for export during the week. Hence coin is beginning to flow back from provinces.

Bullion market: About 30,000 sovereigns withdrawn from the Bank Nov. 26 for India. Some large supplies of bullion just reported will be sent to Continent, the demand for that quarter having increased. Railway Market: decided depression.

Week ending December 5:

B.o.E. Increase in mercantile demand for money (£531,209 addition to the advances on private securities.) Result is diminution of £436,044 in the reserve. Decline in treasure of £169,189 accords almost exactly with the amount of gold withdrawn from the Bank for export during the week.

Discount Market: Further rise of minimum rate von 2½ to 3 p.c. In the general market the terms have risen to a level with this advanced minimum; best 3 months’ bills 2⅞ to 3 p.c. Bank o. E. hat heavily invested in Gvt. securities; da es diese nicht verkauft, so, sobald rate in the General Discount Market stieg, und daher increase of business at Bank o. E., forced to draw on reserve; hence rise in the rate of discount.

Bullion market: 22,000 sovereigns taken from the Bank on Dec. 3 for India, in connection apparently with the telegraphic announcement that sovereigns and halfsovereigns are to be received at all the treasuries in British India at the rate of 10 rupees 4 annas. On 4. Dec. 24000 sovereigns withdrawn for Egypt. Moderate demand for bullion for the continent.

Mercantile Embarrassments. Manchester: failure of W. Morris et Son , spinners and manufacturers. Liab. about £20,000. Ditto Swain Rhodes , spinner and manufacturer.

Railway Market: Heavy speculation, causing severe fluctuations in Metropolitan. The amount of Railway stock held on borrowed money very heavy; this constitutes always element of uncertainty. Except Brazilian, Portuguese, and Spanish, which have fallen, Foreign Stocks mostly improved, despite the rise in value of money and the existence of a large outstanding speculation for higher prices.

Notes to Movement of Money Market. 1868. December.

Week ending December 12:

B.o.E. Decrease in coin and bullion £245,779, which exceeds by about £127,000 the gold withdrawn from the Bank for export. Hence extraordinary absorption of coin in the internal circulation still going on.

Bullion Market: About 46,000£ (in bar gold) sent to Bank (Dec. 10), there being no inquiry for the Continent, in consequence of the firmness of the Paris Exchange. On the other hand, 20,000 sovereigns were withdrawn (from Bank) for India.

The Exchanges: Nach wie vor Rate of Discount in open market at Paris 1½ p.c., Brussels 2, Hamburg, Frankfurt, Turin, Amsterdam 2½, Berlin 3, Vienna 4, St. Petersburg 5½%. Owing to the recent rise in the value of money here, which has not been accompanied by any corresponding movement abroad, the foreign exchanges this week are generally higher; the movement in favour of this country extending to bills on Holland, Hamburg, France, Frankfurt, and Vienna.

Clearing House: Clearance on 4 Dec. £14,120,000 against only £10,715,000 on 4. Dec. 1867. Hence may be inferred that trade is improving.

Mercantile Embarrassments: Suspension of Wyman and Arklay , merchants, of Dundee, Boston, and New York. Liabilities large, at Dundee alone 80–100,000£. Manchester Knowles (spinners und manufacturers) Liab. £35,298 und assets £10,558. A committee of investigation was appointed.

Week ending December 19:

B.o.E. Coin and bullion increase of £316,646, though the nett amount received by Bank from abroad not over £45,000. Hence reflux from internal circulation.

Bullion Market. (to Dec. 17): Gold But one arrival, from the Westindies £39,000. French Exchanges firmer, and now no demand for the Continent; hence Bank o. E. receives all present arrivals, and £69,000 sent in since 10. inst. On the other hand, sovereigns have been taken to India and Ceylon, the Brazils, Egypt. Silver: The Ripon has taken £57,800 to India, and the Marseilles steamer of 13 inst. £185,000 to Bombay. Rather large purchases made at von 60¾d. to 60⅞d per oz. standard, the supplies coming chiefly from the Continent. Mexican Dollars: The Ripon has taken £47,260 to China and the Straits. Fair demand for this coin, the amounts sold have come chiefly from Holland. The Germania has brought £3,000 from New York.

Clearing House: £74,908,000 the week ending Dec. 16. The magnitude of the total solely owing to the Stock Exchange settlement on Tuesday (Dec. 15) The extraordinary extent of the speculation afloat in that establishment, especially in foreign stocks, is demonstrated by the clearances having reached 25,927,000£ against £19,866,000 on the same occasion last year.

Mercantile Embarrassments: J. Dixon et Son , Preston. W. Morris and Son (spinners and manufacturers) Manchester.

Stock and Share Market: The Market for Foreign Stocks is in a state of tension, the recent creations having been put forward with a degree of rapidity greatly in excess of the absorbing capacity of the investing public; result that a large amount of stock remains in the hands of speculators. Fall in foreign securities severe. In English Funds reduction of this week about ¼ p.ct. In home Railway Stocks fall moderate, except as regards Metropolitan which has been much depressed.

Week ending December 26:

B.o.E. Decided increase in demand of money indicated by inc. of £844,417 in Priv. Securities and withdrawals of Priv. Deposits (121,691). Yet in consequence of heavy influx of Gvt. deposits, diminution in reserve trifling. Increase in treasure exceeds by upwards of £100,000 gold sent into Bank from abroad during week. Hence Reflux from Provinces.

Discount market: influenced by changes customary at this season. Diminished supply of money, as usual endeavours by mercantile public and Joint Stock Banks to increase their balances. Best 3 months’ bills 2⅞ to 3%. Business very active (Dec. 23) at B.o.E. discount office. No change in the continental discount rates (See Week ending Dec. 12)

Bullion Market: Amount of Australian gold on way to England £534,000. The shipments of specie for the East by steamer Syria, to leave Southampton on Dec. 26, show a considerable increase, the total being £213,386. These are the particulars: For Galle, gold, £5,932, Bombay, gold, £5,400, ditto silver £10,000, Madras, gold, £4,993, Calcutta, gold, £5000, ditto silver, £157,000, Hong Kong, silver, £24,766 and Shanghai, silver, £245.

Mercantile Embarrassments: Knowles zahlt 7s. 6d. in £.

Exchanges favourable. No shipment of cash for Continent.

---

---

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. ↩