JOURNAL OF BANKING, CURRENCY, AND FINANCE. CREDIT MOBILIER. This institution of Paris has attracted much attention of late, in consequence of its great pretensions, its great temporary success, and the great fluctuations in the value of its shares. It has been regarded in some quarters as a remarkable emanation of genius, adapting itself to a peculiar want, developed by the vast aggregation of credits in Paris, and which encountered the danger of stagnation for want of some means of, so to speak, condensing public confidence in them. The great mass of real capital that goes into investments is earned and saved by persons who have not the means of ascertaining the exact values of the multitudinous securities offered upon the market. This idea was supposed to have been embodied by the leading bankers of Paris-the heads of the financial world -who were, as a company, to issue stock and bonds which should be known to everybody, and apply the proceeds to the wants of the most useful company. After the idea was well matured a grant or concession was made to the financial magnates of Paris, including Emile Pereire, Isaac Pereire, Benoit Fould, Adolph d'Eichtel, Ernest Andre, Le Baron Seilliere, Henri de Noailles, Le Duc de Monchy, Le Duc Raphael de Galliera, Jose Louis de Abaroa, Charles Mallet, Gedeon Marc des Arts, and others. The charter dated November, 1852; duration, 99 years. The capital is 120,000 shares of 500 francs each, or 60,000,000 francs, or $2,000,000. The powers of the company are to purchase public securities, shares and bonds in companies or corporations, particularly railroads, mines, canals, &c., established or to be established; to issue its own bonds for a sum equal to its subscriptions and purchases; to sell, pledge, lend or transfer, or exchange for others, all securities that it may acquire; to lend on stocks and to grant credits on pledge of stocks; to receive deposits; to act as agents for any other companies, make collections for them, pay the coupons or dividends, and all general business. The company is never to sell stocks short, or buy on time privileges. With these powers, the company had that of emitting its bonds to the extent of ten times its capital, or 600,000,000 francs, at long dates. If these, under such high names, could command public confidence, the means of the company would be almost unlimited. When speculation runs high in stocks, embracing all gambling transactions, a company possessed of such powers is at once recognized as of the highest utility. It is in fact a mere stockbroker. A chief part of its business is what is called "report" in Paris, "continuation" in London, and no distinctive name in New York, because stock gambling here, great as it is, is not sufficiently organized to permit of classification. The operation is simply to buy a stock for cash, and resell it at a higher price, the buyer to call for it in 30 a 60 days. Thus the stock list quotes New York Central at 84 cash, and 844 buyer 60; the per cent is the "report." The French 3 per cents being at 69, the holder sells them to the Credit Mobilier at that rate cash, and buys them back at 691 end of the month, paying interest in addition. The company employ from 50 to 80 millions in this way. In New York many stockbrokers operate in the same way when the market is active for a rise, because then the time price is high enough to pay. When the market is falling, as last year, the bears" would give a high price for the cash stock and throw it upon the market at less rates to produce a fall; the time price is then less than the cash price. This in Paris is called “deport.' Speculation ran so high in 1855, that the company was forbidden to issue its bonds for the present. The operations of the company each year since its organization have been as follows: 126,878,452 133,291,848 192,567,708 176,316,727 141,616,803 The year 1855 was the great year, and the profits were very large, mostly on "reports." This item of profits has subsided with the diminution of speculation. According to its charter the net profits are to be divided-1st. 5 per cent on the capital for interest to stockholders. 2d. 5 per cent for a reserve fund. The surplus then belongs one-tenth to the directors, and the remainder to the stockholders. Under this arrangement the dividends have been as follows:- Gross receipts. Expenses. Net. -Dividends.- Per share. Per Extra. Francs. c't. Price p'r share. 1853.. 7,582,723 2,158,561 5,424,161 3,000,000 1,200,000 40 8 640 a 960 1854.. 10,335,040 2,556,477 7,779,563 3,000,000 4,080,000 59 12 430 a 792 1855.. 31,870,776 3,788,775 28,082,001 3,000,000 22,627,901 213 43 1856.. 17,216,424 1,966,443 15,249,981 3,000,000 10,800,000 115 23 1857.. 7,982,905 849,172 7,133,733 3,000,000 none. 1858.. 722 a 1,650 1,140 a 1,982 25 5 1,410 a 712 962 a 725 ..... After paying as high as 43 per cent on its stocks in 1855, the profits have rapidly fallen, and this year, although the company received nominal profits of 7,133,733 francs, they confined their dividends to the 5 per cent required by the charter, intimating that the attempt on the Emperor's life had produced such an adverse state of affairs as to make this course prudent. The sources of profit in three years were as follows: These large fluctuations show the gambling nature of the investments. In the same period where this has risen 400 per cent, the funds have varied 10 per cent. The profits have now declined on "reports ;" last year they were under 700,000 francs, against 4 millions in the previous year, and this source of profit is now nearly extinguished. The directors of the society are some of the greatest financial speculators of the age, and can buy for the company, as directors, securities from themselves as individuals. In 1854 the company had invested 57,000,000 francs in rentes and bonds, and nothing in "shares." In 1857, after the panic, it holds 71,175,000 francs of "shares," and 12,300,000 francs only of rentes and bonds. The investment is evidently for the worse. In 1857, on the employment of 141 millions the profits were only 7,133,000 francs, while in 1854, on the employment of 133 millions, the profits were 7,779,000 francs. On the large amount of shares and advances which the concern holds they show but 177,000 francs depreciation, which would be per cent, whereas the fall on all stocks has been severe. The company have, however, reserved the nominal surplus of 4,133,733 francs to meet depreciation to be yet ascertained, and which they intimate may have resulted from the attempted assassination of the Emperor, January 14. The shares of 500 francs of the society that were at 1,982 francs in May, 1856, are now at 700. Loans. CITY WEEKLY BANK RETURNS. NEW YORK WEEKLY BANK RETURNS. Average Specie. Circulation. Deposits. clearings. Actual deposits. Jan. 9 16 2 $98,549,983 $28,561,946 $6,490,403 $78,635,225 $13,601,357 $65,033,867 98,792,757 29,176,838 6,625,464 79,841,362 13,899,078 63,942,284 99,473,762 30,211,266 6,349,325 81,790,321 14,066,412 67,723,909 23 101,172,642 30,829,151 6,336,042 82,598,348 13,074,762 69,523,836 30 102,180,089 31,273,028 6,369,678 83,997,081 13,519.330 70,477,751 Feb. 6 103,602,932 30,652,948 6,873,931 86,000,468 15,439,083 70,561,405 13 103,783,306 30,226,275 6,607,271 84,229,492 13,803,583 70,425,909 20 103,706,734 31,416,076 6,542,618 86,773,222 14,769,565 72,003,657 27 103,769,127 31,658,694 6,530,759 87,386,811 15,657,056 71,729,805 March o 105,021,863 32,739,731 6,854,624 90,382,446 18,002,665 72,370,781 13 105,293,631 32,961,076 6,755,958 90,063,432 16,511,506 72,552,926 20 107,440,350 31,902,656 6,853,852 91,238,505 17,064,588 74,173,917 27 109,095,412 30,929,472 6,892,231 90,644,098 16,429,056 74,201,709 April 3 110,588,354 31,530,000 7,232,332 93,589,149 17,567,160 76,021,989 10 110,847,617 32,036,436 7,245,809 93,566,100 16,775,237 76,790,863 17 111,341,489 24 May 1 111,003,476 111 868,456 8 112,741,955 16 114,199,288 33,196,449 7.190,170 96,448,450 17,329,431 78,121,025 34,113,891 7,140,851 95,340,344 16,141,451 79,198,893 35,064,213 7,431,814 98,438,506 17,875,203 80,563,803 35,453,146 7,735,056 101,165,806 19,438,661 81,727,146 34,750,728 7,502,975 101,884,163 18,284,868 83,599,295 22 115,658,082 34,047,446 7,307,445 101,917,869 17,620,131 84,297,738 29 116,650.943 31,496,144 7,252,616 99,351,901 16,199,657 83,152,244 June 5 116,424,597 32,790,333 7,547,830 101,489,535 17,982,648 83,506,887 12 116,022,152 33,367,253 7,867,725 100,787,073 16,503,899 84,283,194 Dec. 22.... 29.. Jan. 5... 25 BOSTON BANKS. Due Due Loans. Specie. Circulation. Deposits. to banks. from banks. $50,209,500 $4,579,000 $5,627,000 $15,606,000 $4,054,800 $5,888,000 50,377,000 4,789,500 5,130,400 16,326,600 3,998,000 5,688,000 50,726,800 5,028,000 5,416,000 17,073,800 3,911,000 5,732,600 12.... 51,221,000 5,449,000 5,938,400 17,226,700 4,368,000 5,969,500 18.... 51,740,926 5,661,216 5,669,028 17,722,553 4,754,006 5,891,800 51,772,412 6,073,680 5,494,721 18,129,649 3,531,721 1,949,031 Feb. 1.... 51,854,178 6,402,460 5,251,006 18,395,692 5,111,278 5,725,357 8.... 52,011,821 6,872,977 5,498,600 18,602,984 5,317.764 5,756,068 15.... 52,137,972 7,079,606 5,898,660 18,429,945 5,568,464 5,523,012 22.... 52,089,500 7,257,800 5,299,000 18,450,500 5,329,600 5,377,900 Mar. 1.... 51,970,800 7,316,800 5,170,000 18,525,000 5,778,000 5,625,000 8.... 52,251,300 7,497,700 5,182,400 19,031,682 5,764,000 6,137,000 52,068,743 7,559,698 5,291,549 18,909,682 5,837,534 6,011,377 51,999,451 7,235,531 5,163,492 19,029,251 51,632,451 7,905,491 5,159,569 18,895,249 51,918,000 8,259,500 5,477,500 20,136,400 6,576,900 6,386,000 52,042,428 8,505,312 5,852,991 20,675,028 15.... 22.... 29. April 5 12. 19. ... ... ... 51,752,500 9,007,000 6,224,500 20,657,500 6,110,000 7,259,400 51,388,977 8,851,719 6,007,628 20,671,569 5,884,533 7,363,702 May 4.... 51,499,700 9,248,000 5,903,600 21,257,900 5,925,900 7,444,000 26. 10.... 51,679,315 9,351,861 6,165,768 21,143,973 5,949,986 7,562,885 18.... 52,622,000 9,210,000 6,117,000 21,527,700 7,187,800 6,263,000 25.... 53,396,741 9,015,146 6,096,417 21,418,578 7,175,486 6,756,792 31.... 53,469,179 9,120,846 5,903,020 20,846,860 6,530,828 6,929,062 June 7.... 53,407,693 9,315,086 5,870,808 20,668,037 7,265,607 6,399,061 14.... 53,951,082 9,410,569 5,732,900 20,815,560 7,532,900 5,755,268 Jan. 26... 2... 9... 16... 23... 30... Feb. 6... 13... 20. 27... March 6... Short loans. NEW ORLEANS BANKS. Specie. Circulation. Deposits. Exchange. $3,230,320 $6,196,459 $7,442,142 $2,297,348 Distant balances. Oct. 17... $19,200,583 Dec. 12... 18,069,088 8,841,370 4,148,859 9,993,370 2,838,878 $816,132 19... 17,818,222 9,942,880 4,224,042 10,996,494 3,526,929 1,266,660 17,741,355 10,820,714 4,336,624 11,579,048 8,951,212 1,863,478 18,149,456 10,505,188 4,535,951 11,948,905 4,114,622 1,590.072 10,626,260 4,778,539 11,754,593 4,675,028 1,349,781 14,804.320 10,592,617 4,797,746 12,323,808 5,095,771 1,552,855 14,559,131 10,693,330 4,767,816 12,573,173 5,201,368 1,459,861 14,674,217 10,844,246 4,803,071 12,678,696 5,249,136 1,379,908 14,490,001 11,187,398 5,037,906 14,539,408 5,934,781 1,256,815 14,937,807 11,110,763 5,100,916 14,368,835 6,624,657 1,283,609 4,890,351 11,065,597 5,254,181 14.640,976 7,124,477 1,274,034 15,062,058 11,061,832 5,524,209 14,894,714 7,623,252 1,327,750 15,832,181 10,967,225 6,005,769 15,201,909 7,919,605 1,378,846 15,888,347 10,978,759 6,299,957 15,421,499 8,220,000 1,347,623 15,937,924 10,897,866 6,654,434 15,765,084 8,776,621 1,172,552 16,157,998 10,947,636 7,068,240 15,792,554 8,880,798 1,271,084 16,641,554 10,848,605 7,572,094 15,453,850 9,147,709 1,664,614 10... 16,481,249 10,952,570 7,692,634 15,658,182 9,321,352 1,410,349 17... 16,480,547 10,854,012 7,685,539 15,640,948 9,035,522 1,381,527 24... 16,094,721 10,798,455 7,828,399 15,589,151 9,221,277 1,473,994 May 1... 15,933,046 10,892,453 7,945,334 16,681,593 8,754,140 1,263,882 8... 15,459,435 10,615,530 8,023,429 16,386,529 9,159,848 1,112,188 15... 14,958,401 10,478,675 7,972,599 15,035,182 9,418,151 1,429,660 14,772,173 10,394,638 7,954,829 15,096,528 9,184,271 1,266,140 13... 20... 27... April 3... 22... 29... 14,250,529 10,299,135 June 5... 13,521,534 10,257,171 The Legislature of Michigan, at its late session, passed a law authorizing a loan of $266,000-$216,000 to be applied in taking up old bonds, and $50,000 to be placed in the hands of the Governor and State Treasurer to be used if they deem it necessary. |