The Express.
London, England, 1866-08-27 00:00:00

JOHN BROODEN.

nRIGINAL GOLD CHAIN MANUFACTORY,
IL" HENRIKITA43TILFXT, COVIST-OLADIN.

JOHN BROODEN'S 18-carat GOLD MAINS.

JOHN BROGDEN'S GOLD GUARD CHAINS.

JOHN BROGDENB GOLD ALBERT CHAINS.

joarr 4R.OGDIM'S GOLD BROOCH CHAINS.

BENSON, J. W. by Special Appointment to
11.1L11. dm Prince of Wales

BENSON'S WATCHES. Prize Medal, 186 b.
Bent ate by pat.

BENSON'S ILLUSTRATED PAMPHLET. 2d.

BENSON,OId Bond-street andWestbourne-grove.
Waal Factory sad City Shaw Room,
58 and SO, Ludgata-101.

AFTER WHAT 7—After Mellon's Promenade
Concerts, KVLIM to eup. We Mall meet there.

eke vi`etio•

TO OORRESPONDENTB.
Advaribensento intended for " The Express," London Evening
Popov, mart be at She Odes, 10, Bonverlootarest, by Two
o'clock on the day of publication.

PRINCESS'S.

311111110, THE HUGUENOT CAPTAIN. Mews. Vining,
and G. Honey; Mimes Neilson. Augusts Thomson, and Mn.
Ildrinsg.—And Qum LODGINGS.

BRITANNIA.

TEN Brewing, THE MUTINY AT THE SORE.—Mr. F.
Evans & Mir Amy Rosalind; Mr. H. Macarthy : Mr. C. Wood-
man : Master E. dandera—And JACK MOW, MD LONDON
STEIL! MOY.

MGR WATER AT LONDON BRIDGE.
Tail DAT —Morning, 2h. ♦lm Afternook, Th. 5912 L
To-MOlSOw—Morning, U. Ihm Attachoos, U. I.

LONDON, MONDAY, AUGUST 27.

AMONO the many sufferers by the recent crisis,
not the least are the railway companies. The
crash occurred at the worst possible period for
these undertakings, not long before the close of
the half-year, when the amounts of debentures
falling due are very considerable. If, however,
the pressure had not been unnecessarily prolonged,
the 30th June might have seen the commencement
of a revival in confidence which has nevertheless
been delayed to within the last two weeks. Un-
fortunately, the maintenance of 10 per cent. effec-
tually interfered with the placing of railway de-
bentures. It was no longer a question upon what
terms they could be renewed, for renewals were
everywhere refused. Some of our largest com-
panies have been at their wits' end for means to
meet their current obligations. One has actually
been obliged to stop payment, and it may be
feared that other suspensions would have taken
place if the monetary pressure had existed but •
short time longer. With regard to the re-
newal of debentures, it may be observed that
this operation partakes in no degree whatever
of speculative enterprise. These securities repre-
sent simply a mortgage upon improved real estate.
The original borrower may have used, either
rashly or injudiciously, the means thus raised, but
that is beside the present question. A debenture-
holder renewing his security for a further term of
years m no way lends himself to over-trading,
improvident expenditure, and the like. If the
mischief has been done it has been done in the
first instance, and cannot be repeated, no matter
how often the debenture has been paid off and re-
issued. Of course the case is different when it
comes to a question of an entirely new creation.
Perhaps ten per cent. has been productive in this
way of some good, since it has effectually curbed
for the moment, although for the moment only,
railway expenditure. It is questionable, however,
whether this transient benefit nearly equals the
loss which has been occasioned by the positive
working of the crisis. Next to the banks the
railway companies must have passed an anxious
time during fife last three months. A panic that
has shaken public credit generally must in par-
ticular have severely affected these institutions.
On turning back to the reports of railway meet-
ings in past years, nothing is more common than
to find the chairman congratulating the share-
holders upon the excellent credit their company en-
joys, which has enabled them to place their deben-
tures at the low rate of so much per cent. It has
been a regular test of the success and stability of
an undertaking that it can borrow money on the
most moderate terms current. The effect of a
credit crisis can, therefore, be easily appreciated.
It was not so in former years. In 1847 the
railway companies were well able to hold their own.
The prices of the ordinary stocks were very high,
and preference or debenture capital was compara-
tively little wanted. Besides, the panic then oc-1
cured in the autumn, and had entirely passed off
by the close of the year. In 1857 the case was
in some respects different. Ordinary stocks wore
nine times out of ten below par, preference shares
had accumulated with extraordinary rapidity, and
the borrowing powers were mostly exercised to
their utmost limit. Again, however, the crisis
occurred in the autumn, and was all over in a few
weeks. Hence, before the dreaded 31st December
came round the railways were in a position to
exercise their ordinary credit. Three.months un-
mitigated pressure in 1866, extending from May to
August, was far more trying. Thus far the com-
panies, with but one exception, have passed
through the ordeal, if not without loss,
at least with safety. There appears good
reason for believing, however, that in common
with all classes of the community, they have had
to make their sacrifices. Until the accounts for
the current half year are made up, we have no
means of judging what the cost of " temporary
" loans from bankers" may prove to be. The
public already seem to have misgivings on the point,
and to expect a material increase in this item of
expenditure at a time when the traffic must more
or less suffer by the contraction of trade.
The official returns for the railway expenditure
of 1865 have not yet been published, but a suffi-
ciently accurate idea of the mode in which the ca-
pital expended is distributed can be gathered from
the accounts for the previous year. Up to the
close of 1864 the total capital authorised for rail-
way purposes was 520,522,3341., viz. :
Share capital £290,413,137
Loans 130,109,197

£520,622,334
The actual sums rained were as follow' :
Ordinary shsres £214,735,479
Preference ditto
Debenture stock 13,049,341
Debentures

£425,483t438

In 1863 the total authorised was 474,999,5451.
and the sum raised 404,215,8021. It will be
noticed that in 1864 the loan capital was divided
partly in stock and partly in debenture bonds, in
the proportion of rather less than one of the
former to seven of the latter. The railway com-
panies have, in fact, been for some time alive to
the great advantage of consolidating their floating