---
Title: Heft „1869 I Heft“. V. Economist 1868, Juni–Dezember; Inhaltsregister
Description: Marx’ Exzerpte aus dem „Economist“ vom Juni bis Dezember 1868 und sein Inhaltsregister zur „Money Market Review“ und zum „Economist“ 1868, im „1869 I Heft“.
Author: Karl Marx
Date: 1869
URL: https://marxismo.school/archivo/marx-engels/originales/1869%20Heft%20%E2%80%9E1869%20I%20Heft%E2%80%9C.%20V.%20Economist%201868%2C%20Juni%E2%80%93Dezember%3B%20Inhaltsregister
---


*Nach der Handschrift, MEGAdigital (MEGA² IV/19).[^lic] [Traducción al español](https://marxismo.school/archivo/marx-engels/1869%20Cuaderno%20%C2%AB1869%20I%20Heft%C2%BB.%20V.%20El%20Economist%20de%20junio-diciembre%20de%201868%20y%20el%20%C3%ADndice%20de%20Marx)*

### June 6. 1868.

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

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

* * *

### July 4, 1868.

#### Fall of Revenue. 1868.

Unfavourable Revenue. In *1860*, 1,964,000l. less than the estimated revenue und deficit, excess of expenditure over income, of £2,500,000. Im Jahr 1860 harvest schlecht, so dießmal. Dann diminution in industry, consequent on the panic of 1866. The effects of 1866 zeigen sich erst jezt in effect upon revenue. Der *immediate* effect einer crisis ist on the rate of interest. In a very few months capital becomes cheap, because no one engages in new business to use it. But old business has to be finished, contracts made in the days of prosperity have to be completed in a time of anxiety; the income of the working class is not at first greatly affected. (?) Gradually it is diminished: first the trade directly influenced by the panic are dull and disordered; the income of those employed in such trades declines: then their purchases from other trades diminish of necessity; then those trades suffer too; then the decline in those second trades affects other trades from which they buy; and so a general slowness of commerce and bad remuneration is propagated round the commercial world. But we must not look for the effect as if it were a sudden coup d’état – an instant decline of all things 10%. It is a gradual influence, not beginning till some time after a panic, steadily transmitted and steadily accumulated.

#### The French Railway and the French Government.

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

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

* * *

### June 13, 1868.

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

Msrs. *Crossley* , of Halifax, on the largest scale. The nominal capital £1,650,000, in 110,000 shares of £15 each, of which £10 are paid up. Of these, 88,000 shares, representing a capital of 1,320,000l., are held by John Crossley, Joseph Crossley, and Sir Francis Crossley, leaving only about ⅕ to be held by the public and the workmen. How the amount is shared between these is not stated, but the articles of association contain elaborate provisions for the holding of shares on account of married women and minors; and a memorandum annexed describes the measures taken to bring in the workmen. Not only is a decided preference given to applications from *managers* and operatives in the allotment of shares, but 5,000 shares were „retained“ for the *managers*, *clerks*, *foremen*, and (!) – *workpeople*, to whom the firm *lent money*, amounting in the aggregate to 56,150l., to enable them to take up the shares. For the sums thus lent, interest at the rate of 5 P.Ct. is charged, and the difference between that amount and the dividend is credited to the account opened. If a 20 P.Ct. dividend continues, the shares will pay themselves off in 1872. Beyond these measures to associate those employed, – who number altogether 4,795, of whom 1,881 are adult males, the rest being women or minors – the firm do nothing to stimulate the activity of the workmen, except paying ordinary wages by the piece. There is no mention of any system of bonus to shareholders and non-shareholders. The first dividend was 15 Pc., the second 20 P.Ct. The shares are now selling at 10l. p. share premium.

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

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

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

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

*11 March to 30 March, 1865 = 19 days:* This was to resist the notice *of 10 P.Ct. reduction* which had been issued by the *Iron Manufacturers’ Association* , of which we were then members. (obgleich sie ihren workmen verboten, members of a Union zu sein!) The great fall in prices had necessitated this.

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

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

#### Abraham Einhorn . French Finance.

In *„Salut au Troisième Milliard“* sagt er u.a. that in *country local taxes*, as well as those of the State, each family has to pay 300 fcs a year statt 250f. as he at first represented.

* * *

### June 27, 1868.

#### The Sources of our Subsistence. (U. States etc)

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

Also nach Caird:

Order in which various countries provided U. Kingd. mit wheat during the 12 years ending with 1866:

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

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

Wheat Import into U. Kingd. 1867, year preeminent for high price and scarcity among recent years.

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

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

Imports from U. States.

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

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

Wheat Imports from France into U. Kingdom.

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

#### On the Ownership and Occupation of Land (Communicated) (Mortgagee etc)

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

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

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

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

I) Case I. Land belonging to the occupier, unmortgaged; he possesses besides 2,000£ of Active Capital.

| Rent | £300 |
|---|---|
| Profit on active capital, and pay for personal service, say 15 P.C. | 300 |
| Total: 5 P.Ct. on £.12.000 | £600. |

II) Case II. Suppose him to possess 12,000l, but that he hires the Land from another.

| Profit on active capital (2000£) as before | £300 |
|---|---|
| Return from 10,000l. vested in cottage property, on mortgage, or in railway bonds etc, at least 5% | 500 |
| Total income from 12,000£ | 800. |
| Or ⅓ more than in case I, with less risk. |  |

Let us now suppose that a man worth £2,000 resolves to purchase land and cultivate it himself, that he lays out £1,500 in the purchase, and retains £500 for cultivation. How will his income stand? *Rent:* £45. *Profits on active capital:* 50l. *Personal service:* £50. *Total income:* £145, little more than that of a mechanic. In all probability within a few years he will become embarrassed and borrow, or will be tempted or necessitated to sell his land, and at any rate he will occupy a lower position and more restricted income than if he had employed his capital in cultivating the land of another. … Im Ganzen income on land durch farming 10% (excl. of interest), on purchasing 3%, difference 7%. So long then as a class of persons is to be found who will hold or purchase land paying only 3 P.Ct., it will be the interest of the actual cultivator to hire rather than to buy land. The cultivation of land in small quantities especially by its owners bears a close analogy to the process of domestic manufacture once almost universal, which has generally yielded to the factory system.

* * *

### July 11, 1868.

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

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

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

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

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

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

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

Estate of Peto, Betts, and Crampton.

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

Also: 1,919£ Assets gegen 642,676 liab., abgesehn von claims of Lond., Chatham, and Dover. This is probably the worst asset that even the panic of 1866 can show, and no matter what you prove against it you are sure to get nothing.

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

Estate of Peto and Betts stands roughly thus:

| Liabilities |  |  |  |
|---|---|---|---|
| Unsecured creditors |  | £356,654 |  |
| London, Chatham, and Dover Railway |  | 119,842 |  |
| Secured creditors | £427,558 | 162,007 |  |
| Less Property held by Creditors | 265,551 |  |  |
| Total |  |  | £638,503 |
| Assets |  |  |  |
| Cash |  | 1,471 |  |
| Other Property |  | 529,375 |  |
| Total |  | 530,846 |  |

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

#### Finance versus Finance. (Lewis. Hauptschwindler)

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

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

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

Statement of Poorrates, their Expenditure etc for 16 years, ended 29 Sept. 1867.

| Year ended 29 Sept. | Net Annual Value of Property Rated | Amount of Poor Rate Collected. | Total Poor Relief Expenditure. | Total Expenditure. | Poundage of the Expenditure on Valuation. |  |  |  |
|---|---|---|---|---|---|---|---|---|
|  |  |  |  |  | Poor Relief. |  | Total. |  |
|  |  |  |  |  | s. | d. | s. | d. |
| 1852 | £11,172,586 | £1,109,630 | £883,267 | £1,099,678 | 1. | 7. | 1. | 11½ |
| 1853 | 11,308,015 | 1,009,493 | 785,718 | 1,053,987 | 1. | 4¾ | 1. | 10¼ |
| 1854 | 11,463,595 | 925,154 | 760,152 | 921,384 | 1. | 4 | 1. | 7¼ |
| 1855 | 11,565,466 | 835,894 | 685,259 | 788,873 | 1. | 2¼ | 1. | 4¼ |
| 1856 | 11,709,934 | 723,204 | 576,390 | 671,066 | 0. | 11¾ | 1. | 1¼ |
| 1857 | 11,877,088 | 585,583 | 498,889 | 590,765 | 0. | 10 | 1. | 0 |
| 1858 | 12,091,564 | 525,595 | 457,178 | 550,243 | 0. | 9 | 0. | 11 |
| 1859 | 12,213,620 | 523,065 | 413,712 | 513,614 | 0. | 8¼ | 0. | 10 |
| 1860 | 12,280,029 | 509,380 | 454,531 | 558,835 | 0. | 9 | 0. | 11 |
| 1861 | 12,442,510 | 584,548 | 516,769 | 621,474 | 0. | 10 | 1. | 0 |
| 1862 | 12,567,495 | 686,715 | 578,789 | 685,776 | 0. | 11½ | 1. | 1 |
| 1863 | 12,623,539 | 723,843 | 605,981 | 716,523 | 0. | 11½ | 1. | 1½ |
| 1864 | 12,754,954 | 744,894 | 596,465 | 734,219 | 0. | 11¼ | 1. | 1¾ |
| 1865 | 12,935,165 | 748,422 | 600,549 | 731,852 | 0. | 11¼ | 1. | 1½ |
| 1866 | 12,989,026 | 749,757 | 611,831 | 754,667 | 0. | 11¼ | 1. | 2 |
| 1867 | 13,045,725 | 762,644 | 676,776 | 824,449 | 1. | 0½ | 1. | 3¼ |

*(Verte)*

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

|  | Gold. (£) | Silver. (£) | Copper. (£) | Total. |
|---|---|---|---|---|
| 1853 | 11,952,391 | 701,544 | 10,190 | 12,664,125 |
| 1854 | 4,152,183 | 140,480 | 61,538 |  |
| 1855 | 9,008,663 | 195,510 | 41,091 |  |
| 1856 | 6,002,114 | 462,582 | 11,418 |  |
| 1857 | 4,859,860 | 373,230 | 6,720 |  |
| 1858 | 1,231,023 | 445,896 | 13,440 |  |
| 1859 | 2,649,509 | 647,064 | 8,512 |  |
| 1860 | 3,121,709 | 218,403 | 37,990 |  |
| 1861 | 8,190,170 | 209,484 | 273,578 |  |
| 1862 | 7,836,413 | 148,518 | 352,800 |  |
| 1863 | 6,997,212 | 161,172 | 151,648 |  |
| 1864 | 9,535,597 | 535,194 | 18,069 |  |
| 1865 | 2,367,614 | 501,732 | 57,493 |  |
| 1866 | 5,076,676 | 493,416 | 50,624 |  |
| 1867 | 496,397 | 193,842 | 33,301 | 723,540. Consider difference of 1853 und 1867. |

Computed Real Value of the registered Gold Bullion and specie. Imported into U. Kingdom from 1858–1867.

| 1858 | *Gold:* | £22,793,126 | *Silver Bullion and Specie:* | 6,700,064£ |
|---|---|---|---|---|
| 1859 |  | 22,297,698 |  | 14,772,458 |
| 1860 |  | 12,584,684 |  | 10,393,512 |
| 1861 |  | 12,163,937 |  | 6,583,108 |
| 1862 |  | 19,903,704 |  | 11,752,772 |
| 1863 |  | 19,142,665 |  | 10,888,129 |
| 1864 |  | 16,900,951 |  | 10,827,325 |
| 1865 |  | 14,485,570 |  | 6,976,641 |
| 1866 |  | 23,509,641 |  | 10,777,498 |
| 1867 |  | 15,800,159 |  | 8,020,888 |

### July 18. 1868.

#### Trades Union and Shipbuilding.

*See 9th Report. Trades’ Union Commission.*

#### Russian Railways.

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

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

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

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

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

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

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

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

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

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

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

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

* * *

### August 1, 1868.

#### Paris Correspondence. 30 July. 1868. (Jecker Bonds etc) (Crédit Mobilier)

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

At The *Imperial Court*, im appeal presented by the Credit Mobilier (i.e. its *directors*) against the judgment of the Tribunal of Commerce, the Advocate General held that the directors, in order to induce the shareholders to double the capital, had made false representations. Z.B. in the transactions with the *Immobilière Company* , the directors had employed „98,000,000 fcs in the acquisition of building grand, for which there were no buyers, and in constructing houses for which there were no tenants, and had afterwards disbursed 100,000,000 fcs to prevent these errors from being seen.“ In the balance sheets there were no traces of these things; on the contrary, the situation was presented as most favourable. In the balance sheet of 31 December, 1865, f.i., the assets were stated to exceed the liabilities by 70,000,000 fcs, of which 60 Mill. fcs were represented by the capital, the rest by the reserve and realised profits. But in reality the capital was absorbed in the advances to the Immobiliere Company, and could not be recovered, existed in fact only on paper; and the liabilities exceeded 180 Mill. fcs, of which a large part were in deposits and the rest in Bourse and other transactions. Moreover, nothing was said of a sum of 46 Mill. fcs due to the Southern Railway Co., though it was liable to be called for every day. For these and other reasons, the Advocate General held that the shareholders had been wilfully misled when they consented to furnish an additional capital of 60 Mill. fcs, and that consequently the directors must reimburse the sum with interest. Two of the Directors, Michel Chevalier and Renouard de Bussière , contended, as they did before the Tribunal de Commerce, that they ought to be relieved from liability because they had been kept in ignorance by their colleagues as to the real state of the Co; but the Advocate did not admit their pretension, held another director, the Duc de Galliera, not responsible, not having been present at the meeting at which the doubling of the capital was decided.

### August 8, 1868.

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

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

Obgleich das Judgment des Court Impériale milder, fügen seine considérants neue Anklagepunkte zu und, sagt der Economist , The Impression given by the first judgment is strengthened – that there is something worse behind than what appears. All the dissimulations practised, it is said, by *the directors of the 2 societies who were nearly one and the same*, had evidently for their object an *appeal to credit*, this being what the doubling of the capital of the Credit Mobilier came to. The relations of the two societies ought to have been brought to the knowledge of the shareholders.

„In effect“, says the judgment, „the directors of the Mobilier Society by their advances and by discounting bills and bonds of the Co. Immobilière, which the respective position of the 2 societies rendered inalienable, *gave credit in reality to the latter to the extent of 4 Mill. £. St.* – that is to say, more than 1½ times its capital, and nearly half the amount of the Creditor’s Assets.“ The judgment finally contrasts the omission even to name the Comp. Immobilière in the published reports while the new capital was being got, and the long exposition of the prosperity of the latter Co. put forth at a subsequent meeting – an exposition which assisted in lulling the vigilance of the shareholders. Thus „the directors have caused the shareholders an injury for which they owe reparation“.

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

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

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

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

| A) During the first 6 months. (Manufactures and Produce) |  |  |  |  |  |  |  |  |  |
|---|---|---|---|---|---|---|---|---|---|
|  | Imports. |  |  | Exports. |  |  |  |  |  |
|  | 1868. (fcs) | 1867. (fcs) | 1866. (fcs) | 1868. (fcs) | 1867. (fcs) | 1866. (fcs.) |  |  |  |
| Alimentary Substances. | 486,850,000 | 327,521,000 | 198,954,000 | 531,377,000 In dieser Rubrik für Exports sind Alimentary Substances und Raw Materials zusammengeworfen. | 541,288,000 | 669,082,000 |  |  |  |
| Raw Materials. | 1,058,276,000 | 1,009,158,000 | 1,004,628,000 |  |  |  |  |  |  |
| Manufactured Goods. | 121,744,000 | 119,470,000 | 110,458,000 |  |  |  | 826,568,000 | 848,875,000 | 918,443,000 |
| Other Articles. | 71,427,000 | 66,597,000 | 51,122,000 | 52,438,000 | 47,054,000 | 47,075,000 |  |  |  |
| Totals: | 1,738,297,000 | 1,522,746,000 | 1,365,162,000 | 1,410,383,000 | 1,437,217,000 | 1,634,600,000 |  |  |  |
| Thus as for some time past, imports continue to increase, and exports to decline; and whereas exports formerly exceeded imports they are now below them. |  |  |  |  |  |  |  |  |  |
| B) Imports and Exports of the Precious Metals. During the first 6 months of 1868, 1867, 1866. |  |  |  |  |  |  |  |  |  |
| (fcs) |  |  |  |  |  |  |  |  |  |
| Gold Bullion | 116,752,730 | 97,936,560 | 96,816,376 | 22,818,893 | 27,475,042 | 1,198,883 |  |  |  |
| Gold Coin | 190,010,379 | 204,410,220 | 325,915,171 | 158,820,950 | 72,910,392 | 107,374,404 |  |  |  |
| Silver Bullion | 34,658,852 | 23,316,397 | 41,728,386 | 17,533,685 | 31,659,664 | 81,720,265 |  |  |  |
| Silver Coin | 75,087,343 | 94,964,906 | 74,024,497 | 28,171,983 | 10,039,849 | 78,642,167 |  |  |  |
| Totals | 416,509,304 | 420,628,083 | 538,484,430 | 227,345,511 | 142,084,947 | 268,935,719 |  |  |  |

| The exports | in 1868 | being deducted from the imports, the *stock of bullion* increased | by 189,163,793f., | or | 7,566,551£ |
|---|---|---|---|---|---|
|  | in 1867 |  | by f.278,543,136 | oder etwas über | £11,141,725 (£ = 25f. gerechnet) |
|  | in 1866 |  | f.269,548,711 | = | £10,781,948. |

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

* * *

### August 15, 1868.

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

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

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

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

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

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

As last Thursday the quotation of Three P.Ct. stock on the Bourse was 70f. 27½c., whereas the new stock is issued at 69f. 25c., with the right *of paying in advance, with a discount of 2 P.Ct.*, the small 5f. subscriptions – a right which *large* amounts are not to enjoy – it is evident that the speculating fraternity had a considerable interest in getting into their hands as much of the 5 fcs scrip as possible. And to succeed in this object, not only did they employ poor men to subscribe, but by a premium which at one moment was as high as 3f., they induced bona fide subscribers to sell their certificates. When this became known among the lower orders of Paris, a considerable number of men and women hastened to inscribe themselves, and they carried their paper straight to the Bourse for sale. For some days the outside of that famous establishment was quite encumbered with a class of people whose dress and manner proved them to be strangers to the place, and they had no difficulty in making the bargain they sought. But the inevitable result was that the influx of scrip caused the premium to decline, so that the late comers were grievously disappointed about the sum they had counted on. Some of them having very confused notions on the great law of offer and demand were excessively indignant at being told that they must take less than the 3 fcs their friends and neighbours had got, and they applied ugly epithets to the buyers who told them so; at one moment, indeed, a band of these got up a little emeute. The upshot of all this is that whereas the Minister of Finance was most desirous to keep his loan in the hands of people of small resources, and the belief that they would hold it permanently as an excellent investment, and whereas he even, after opening the subscription, took special measures for preventing speculators from getting it and from carrying it to market, he has sadly failed. The speculators have obtained the greater part of it, and to the market it will go.

* * *

### August 22, 1868.

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

The Minister of Finance, with that desire for theatrical effect which characterises the French, issued on August 15, because it was the Emperor’s fête, a report on the subscription to the new loan which closed at 5 p.m. on August 13. And yet, seeing that the subscription had been opened in every part of France and in England, it was impossible for him to be in possession of the precise Results. This he himself admits; but the importance of striking the popular imagination on a festive occasion, by the publication of startling figures, outweighed the desire, which, as a financier, he must have felt, to be precise. And startling his figures were: he wanted a capital of 450,500,000 fcs (18,020,000£), representing 19,516,245f. of Three P.Ct Rente, and the subscription gave him, he says, in round figures, a capital of 15,000 Millions fcs (600 Mill. £ St.) being equal to 660,184,270f. rente, nearly 34 × more than he demanded. Of the rente (of 19,516,245f.) f.3,141,170 were in the minimum subscription of 5f., and were taken by 628,234 subscribers. The rest, amounting to 657,043,100f. was taken by 153,058 persons. The 5f. subscriptions will be accorded entire, but the rest will be reduced pro rata. The amount of cash deposited as guarantee by the subscribers exceeded 660 Mill. f. (26,400,000£.) On these results the minister is triumphant. They surpass, he says, what was attained in any preceding loan, and surpass the last one, that of 1864, by 240,000 in the number of subscribers, 440 Mill. f. in the amount of rente subscribed, 430 Mill. f. in the guarantee deposited; 3 × the amount of capital. And he draws from these „really unexampled figures“ the conclusion: That the extraordinary desire of the public to obtain the largest part possible in the sum to be divided evidently shows regard being had to the price of issue, that the Credit of the State does *not find in the present rate of the public funds* its true and definitive expression. That the importance of the sums deposited with such facility in the space of a week, and which alone cover almost 1½ of the total of the loan, is a sign of an immense force, and gives the highest idea of the accumulated wealth of France; and, lastly, he says in language somewhat awkward, „the most striking manifestation of the grandeur of the country, and of its confidence in itself, in its political institutions, and in the wisdom of the Sovereign.“ But in sober truth considerable abatement must be made from the minister’s exultation. The thing shows ways of *unemployed wealth* and confidence in the public funds as a security. But in great part the subscription quite fictitious, inasmuch as 1000nds of the larger subscribers knew well that they would not get what they demanded, did not want to get it, and would not be able to pay for it if they had; the far greater part of the petty subscribers put down their names with the intention, not of making a permanent investment, but of realising a small profit by an immediate sale of their scrip at the Bourse. Und selbst das deposit of 660 Mill. fcs as a deposit bedeutet something queer wenn considered that political distrust for some time past has been so great that scarcely any investments have been made in commercial or industrial enterprise, and that really money holders have little choice between placing their money in the funds or hoarding it.

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

Countries from and to which the Imports into France of Precious Metals and Exports of them took place. First 6 Months of 1868.

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

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

* * *

### October 10. 1868.

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

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

* * *

### November. 21. 1868.

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

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

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

* * *

### December 5, 1868.

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

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

Assets.

|  | f. |
|---|---|
| Houses and Building Ground at Paris | 125,000,000 |
| Ditto at Marseilles | 93,000,000 |
| Divers. Paris and Marseilles. | 13,000,000 |
| Total. | 231,000,000 |

Liabilities.

| Capital | f.80,000,000 |  |  |
|---|---|---|---|
| Debentures | 69,000,000 |  |  |
| Credit Foncier | 73,000,000 |  |  |
| Credit Mobilier | 83,000,000 |  |  |
| Various | 19,000,000 |  |  |
| Prevision for Paris and Marseilles | 20,000,000 |  |  |
| Total | 344,000,000 |  |  |
| Deficit | 113,000,000 |  | = £4,520,000. |

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

Speaking of buildings and building grounds at Marseilles, it says u.a. „The Immobilière Co. let to the *English Company* with a promise of sale 228,000 metres (about metre = 3 ft 3¼ inch) of ground payable in 30 annuities, on condition of covering the said ground with buildings. The Immobilière, moreover, engaged to open to that Co. a credit of 20,500,000, to convert in favour of any other lender an anteriority of mortgage to the amount of 21,000,000 fcs, and to remove 20,000,000 of mortgages, guaranteeing to the City of Marseilles and to the holders of debentures the payment of the price of the purchase of the said ground by the Company. These conditions could not be executed in the conditions in which the Immobilière was placed, and the existence of these inscriptions constituted a permanent menace against purchasers obliged to cover with buildings in a brief period the mortgaged ground. The concessions made to divers sub-purchasers by the English Co. of the rights resulting from its convention with the Immobilière aggravated the position. These sub-contractors constituted a new class of claimants, who pursued with great energy the execution of the contracts, from the fact that the Co. found great difficulty in fulfilling them. It was evident that the Immobilière had not executed and could not execute the obligations contracted. The demands for damages and interest to a large amount of the English Co. and the subcontractors could then with difficulty be opposed. … We find that the English Co. is in possession of a convention of which it preserves the execution, and by which the Immobilière is bound to make it 20,500,000f. of advances, and to raise 21,000,000f. of mortgages.“

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

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

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

* * *

### December 12, 1868.

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

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

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

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

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

Jevons distributed a circular letter and blank form to a number of bankers and other gentlemen, requesting them to take out one or two hundred sovereigns at random from those received in the ordinary course of business, and count the number of each year. He thus got statistics from every great centre of population in the country, and from every variety of district – 321 returns in all relating to 213 distinct towns and localities; and he received unexpected assistance in his plan. The gentlemen to whom he applied went beyond his requirement; The *Governor of the Bank of Scotland* procuring an enumeration of 48,647 coins at the various branches of the bank, and the *General manager of the London and Westminster Bank* a similar complete return for his district. Altogether he received an enumeration of 90,474 sovereigns and 75,036 half-sovereigns, a total of 165,510 coins. The result is stated in an elaborate table, showing on the data thus obtained the proportion of 100,000 sovereigns and half-sovereigns belonging to each year; but the principal conclusion for the present purpose is that „out of every 100,000 sovereigns now in circulation, 18,671 sovereigns are found on an average to bear the dates 1863 and 1864.“ The proportion varies in different localities; but after drawing up many averages, he had found this to be near the truth. According to the plan of procedure this result brings us very near the end. The proportion of the whole coinage of sovereigns to that part of it bearing the date of 1863 and 1864, being as 100,000 is to 18,671, or as 5.356 (5⅓) times greater, we have only to ascertain what the circulating coinage of those years (1863 and 1864) is, and multiply by 5⅓, to find out the total amount of the circulation.

This last step is easily performed. The coinage of sovereigns of 1863–64 was £14,578,000, but of this amount £600,000 at the date of the circulation were lying in bags as received from the mint – had never passed into circulation at all. The quantity of 1863–64 sovereigns circulating cannot therefore exceed 14,578,000l. minus 600,000l., or just about 14,000,000l; the whole circulation of sovereigns cannot exceed 5⅓ times 14,000,000l., or in round numbers £75,000,000. A similar calculation for half-sovereigns shows that 12,819 out of every 100,000 are of the coinage of 1863–64, or about ⅛ of the whole coinage. As the coinage of those years amounted to £1,565,000, the total number of half-sovereigns cannot exceed 8 × that amount (or, exactly, 7.8 times), also nicht 24,000,000 in Number or £12,000,000 in Value.

Maximum of whole Gold Coinage in U. Kingdom.

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

The real figure must be considerably below. Although 14 Mill. £ of the coinage of 1863–64 passed into circulation, some portions of it must have been exported or melted; and every deduction necessary on that account must be multiplied by 5⅓, and deducted from the above total. Now the export of coin in 1865, 1866, and 1867 was £8,664,653, and it may be safely assumed that the export of the 1863–64 coinage corresponded in amount at least to the proportion of that coinage to the whole coinage; it may have been greater, as exporters prefer the newest and heaviest coinage, but it cannot well have been less. In other words as the sovereigns of 1863–64 form about ⅕ of the sovereign currency, they must at least form ⅕ of the above exports. We have thus to deduct l,750,000l. from the 14 Mill. £ of 1863–64 coin which passed into circulation, giving 12,250,000l. the figure which we must multiply by 5⅓ to arrive at the total amount of sovereigns in circulation. This would yield 65,600,000l., but reducing this a little for the sake of round numbers, Jevons gives the following as his final estimate:

Gold Coinage in U. Kingdom.

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

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

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

Estimate of the Whole Circulating Medium in the Country.

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

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

Return of 1,000 Sovereigns in Bank o. England, and in London and Westminster Bank.

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

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

Per Centage of light coin in the following places.

|  | Sovereigns P.Ct. | Half Sovereigns P.Ct. |
|---|---|---|
| *Ballyshannon | 25 | 50 |
| Birkenhead | 63 | 66 |
| Buckingham | 57 | 48 |
| Dartford | 65 | 48 |
| Dublin | 47 | 48 |
| *Dundalk | 25 |  |
| *Dundalk | 20 |  |
| Farnham | 56 | 74 |
| *Halifax | 25 |  |
| Lampeter | 15 | 87 |
| Leominster | 29 | 58 |
| Liskeard | 38 | 30 |
| *London | 62 | 70 |
| London | 66 | 88 |
| *Liverpool | 50 | 50 |
| Nenagh | 23 | 49 |
| *Norwich | 70 | 70 |
| *Ramsgate |  | 66 |
| Wells | 75 | 94 |

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

Assuming that on the average all the deficiency on coin since 1850 is covered by the allowance for wear, it is found that the deficiency on the earlier sovereigns amounts to 307l. in 100,000l., or nearly ⅓ P.Ct. This would give a total deficiency to be made good of 200,000l. The proportion of deficiency in halfsovereigns is greater. *The average life of a* half sovereign as legal tender is only 7½ years; but taking 10 years as a safer figure it is found that this gives a proportion of 47 P.Ct. as light, or 5¾ millions out of 12 Mill. The actual amount of the deficiency in coins which are not legal tender is 100,000l. Altogether the recoinage necessary will be 20,300,000l. in sovereigns and 5,700,000l. in halfsovereigns, on which the loss will be as stated – 200,000l. and 100,000l. respectively. Hence:

Total Probal Expense of Recoinage:

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

Folgende Table is the Basis of Jevon’s calculation:

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

### December 26, 1868.

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

|  |  | d. |  |
|---|---|---|---|
| 1) | Grain | 1¼ | per ton per mile |
| 2) | Drink | 1¾ |  |
| 3) | Salt provision | 1¾ |  |
| 4) | Pitwood | 0¾ |  |
|  | Cut timber | 1¼ |  |
| 5) | Artificial manure | [1¼] |  |
| 6) | Groceries | 2½ |  |
| 7) | Bale goods, including wool | 2½ |  |
| 8) | Bricks, Tiles, slate, Stone | 0¾ |  |
|  | Drain pipes | 1¾ |  |
| 9) | Iron castings and machinery | 2½ |  |
|  | Iron agricultural Implements. | 4½ |  |
| 10) | Potatoes | 1¼ |  |
| 11) | Coal and Coke | ¾ d to 1d. |  |
| These charges often the highest the Co. can by law make. |  |  |  |

#### The Difficulties of American Finance.

Johnson, the President, in his message: proposes to pay off the debt *and* interest, by paying the interest alone for 16½ years.

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

Last financial year ending 30. June 1868. (3s. berechnet = 1$.)

| Revenue. |  | Expenditure. |  |
|---|---|---|---|
| Customs | £24,669,000 | Civil Service | £9,002,000 |
| Lands | 201,000 | Pensions and Indians | 4,182,000 |
| Direct Tax | 268,000 | War Department | 18,487,000 |
| Internal Revenue | 28,663,000 | Navy Department | 3,866,000 |
| Miscellaneous Sources | 7,042,000 | Interest on Public Debt | 21,064,000 |
| Total | 60,843,000 | Total | 56,601,000 |
|  |  | Surplus. | 4,242,000. |

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

„The Secretary’s estimate for the year ending 30. June, 1869, based upon the Actual Return of the first Quarter.“

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

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

| Sum actually spent in first quarter of the year | £15,772,000 |
|---|---|
| If remaining quarters proportionally, the total will be | 63,000,000 |
| On a revenue of £51,209,000 this would leave Deficit of | 12,000,000 |
| If the Expenditure was as that of last year 56,601,000 Deficit would be | 5½ Millions £. |

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

Rapid Diminution in the great Branch of Receipt, the Internal Revenue.

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

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

Yield of the Customs

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

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

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

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

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

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

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

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

#### Paternal Landlordism.

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

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

* * *

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

### I) U. Kingdom.

- *1) Money Market, Bank o. E. etc, Currency. Exchange.* Movement at Bank o. England and Clearing House. 1868. (p. 3–10) Notes to same. (13–18) Capital of Bank o. E. (44) Profits of (29) Joint Stock Banks Profits und Rate of Discount (23, 28) Banking Progress, First Half Year ’68 (39) Money Market. Anfang 1868 (59) March (64) October (47, 48) August. Alleged Influence of French Loan (78) Bank Act. 1844 and Gold Export. (41) Changes in Rates of Discounts. Action and Reaction. (50) 28 Nov. und Dec. 5 (54) Annual Average Minimum Discount Rates of B.o.E. (42) Influences of Prices of Articles on Money Market (65) Gold, Silver, and Copper coined 1853–’67 (75) Gold Imported und Exported. U. Kingd. 1858–1867. (75) Worn Coin (31) Seignorage on Coin (46) Amount and Condition of Gold Coinage in U. Kingd. (Jevons) (80–84) Foreign Settlements on London Stock Exchange. (53) Negotiations of Foreign Bills of Exchange in London (65)
- *2) Crisis of 1866 und Nachwirkungen.* *Das Jahr 1867.* Bullion movement. (42) Rate of Discount (19) Dates of ’67 (21) Silk. Agricultural Implements. (22) Its Commercial etc aspects (19) Alterations in values of securities (20, 23) Causes of Present Depression (22, 25), Influence of Commercial Depression on Railway Revenue (44, 45) Crisis of ’66 und Nachwehn. (31) Fall of Revenue ’68 (70) Panic and investments. (40) Market Value of Financial Co’s. Shares (33–35) Fall in Prices since ’66. (59) Nature of Commercial Crises. (61) Agra and Masterman’s Bank (40)
- *3) Commercial Morality.* Greenland. (19) Leeds Banking Co. (37) Contract Corporation (21) Insurance Cos. Bescheissen von workmen (21, 22) Overends. (24, 30, 57) Commercial Credit and Morality (31, 39) Winding up of Cos. in Chancery (49) A Joint Stock Discount Syndicate. (25) Director’s Liability. (36) Alderman Dakin (38) Frauds of Directors in Winding up (voluntary) (54, 55) Bank Directors and Promotion of Public Cos. (79) London Flour Co. (32) City Offices Co. (32) Internat. Contract Co. (33) European Bank (35, 36) Bank o. Bombay (36, 37) Smith etc (40) General Estates Co. (41, 42) Grand Trunk Railway of Canada (43) Royal Bank of Liverpool (45) Merchant’s Co (45, 46) Peto. (64, 65, 73, 74) Finance versus finance. Leopold Lewis (74) Troubles of shareholders. (57) Joint Stock Cos. Parli. Return. May 1868 (46) English Commercial Morality vertheidigt durch „Economist“. (59)
- *4) Railways.* State Control (21) Caledonian (21) (28, 29) Accounts. Ersatz des Verschleisses (24) Midland Rail. Börsenmogelei und Directors. (24) Brighton Railway Verschleiß von steamers (25) Falsification of Accounts. Working Expenses (34) Wear and Tear (31) Paying weight, dead weight (28) Construction and Management (31) Steel and Iron rails. (26) Patterson: Railway Finance (27) (29) Railway Trains. 1866. (25, 30) Capital of Railways in U. Kingd. 1866 (24, 42) in 1867 etc (55, 56) Bird: Railway Accounts. (27) Estimate of intrinsic Value id. (38, 39) Railways Accounts defended durch Saturday Revue (27) Railway Profits. Delusive Gvt. figures. Their Competition. (22) Railways, 1845–46. Hudson. (37, 38) Banks and Railway Cos. (24) Lawyers and Rail. (24) Chatham, Lond., Dover and Landed Property (45) Rates charged on goods in Ireland on a main line. (84) New Act of ’68 (41) Injuries from vibration und smoke of Railways (34)
- *5) Cotton.* Cotton Prices 1866, ’67, 68 (28) Manchester Trade Circular Jan. 1868 (27) Import, Export. 1867. (30) Market 1868 (32, 43, 48, 49, 50, 56) Cotton in U. States. (57, 58) Cotton Statistics Bill. (35, 37, 40, 68)
- *6) Wheat.* Importations. 1868 (43) Imports ’66, ’67, 68 (53) Average Cornprices. (67) Sources from which U. Kingd. draws wheat. Rangliste der in U. Kingd. wheat importirenden Ländern changed in last years. U. St. Russia. Germ. (71, 72) Contract price per cwt. for Bread. Board of Guardians of Whitechapel 1864–68 (73)
- *7) Notes on Trade. (facts, Statistics)* Board of Trade Returns. (29, 31, 40, 44, 48) Foreign Trade. First Half Year ’66, ’67, ’68 (43, 52, 53) Imports, Exports ’68. (62) Wool Trade. Oct. 68 (45)
- *8) Land* Freetrade in. (Fawcett) (58) Rent and Value of Land. (60) Peasantry Proprietors. (61, 62) Ownership and Occupation of land (72, 73) Paternal Landlordism. (86)
- *9) Wages, Pauperism, Unions etc. Incomes, Taxes etc.* Insolvency of Trades’ Unions. (69) Bonus System (68, 69) Industrial Partnership etc (71) Meeting of Ironmasters. Reduction of Wages. (66) Collieries. Insurance (56) Pauper Expenditure in Metropoles since 1863. (68) Labor of Superintendence (Venezuela) (38) Bill for abolishing Houses unfit for human habitation. (70) National Income. (Dudley Baxter) (26, 27) State Revenue and its sources. (51, 52) The Succession Duties. (60)
- *9) Miscellaneous.* Fires and Incendiarism. (58) Council of Foreign Bondholders (49) Conversion of Iron into steel. (46, 47, 49, 50, 54, 56) Annual Rate of Mortality U. K. 1867 (60)
- *10) Ireland.* Income Tax (39) Emigration. Wages etc (67, 68) Annual Report of Poor Law Commissioners 1852–1867 (74)

### II) Italy:

Deficits (24)

### III) Russia:

Railways. (75, 76)

### IV) Belgium:

Coal Export. (66)

### V) France.

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

### VI) Un. States.

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

### VII) India.

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

### VIII) South African Goldfields. Colony of Natal. (43)

### IX) Australia.

- Australian Trade (34)
- Cultivated Land (43)
- Annual Surplus of Sheep and Cattle (66)
- Gold for 10 years ending 1867 (39) Yield of Goldmines. Victoria (66)
- Ballarat. The City of Tents (57)

* * *

Unter den Gründen, die Goschen im folgenden Buch für Versendung des Goldes aus einem Land ins andre giebt, ist ein sehr wesentlicher ausgelassen.

Im Jahr 1859 (noch in Frankreich und in Preussen, I suppose) war das

| durchschnittliche Handelswerthverhältniß von Silber : Gold | = 1 : 15,338. |  |
|---|---|---|
| Gesetzliche Verhältniß in Preussen | = 1 : 15,692 | *zu hoch* Gold = 2,23% |
| Gesetzliche Verhältniß in Frankreich | = 1 : 15,5. | *zu hoch Gold* = 1,07%. |

Es kann also Gold nach Frankreich verschifft werden (resp. Preussen), um *dort Silber zu kaufen*, mit einer Prämie von 1,07% im ersten, von 2,23% im 2. Fall. Unter welchen Umständen dieß mit Vortheil geschehn kann, hängt, selbst bei ungünstigem Wechselkurs für Frankreich mit z.B. England, Preussen davon ab daß die Differenz des Wechselkurses + Spesen der Verschiffung etc *unter* 1,07% in einem Fall, 2,23% im andern Fall steht. Die Verschiffung wird natürlich nur eintreten, wenn England Silber braucht, z.B. für Ostindien. Jedoch kann der Engländer bei günstigem Wechselkurs Wechsel nach Frankreich schicken, dort Silber dafür sich zahlen lassen.

---

[^lic]: 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.