The Liverpool Standard and General Commercial Advertiser.
Liverpool, Merseyside, England, 1855-07-03 00:00:00

THE LAW OF PARTNERSHIP.

THE Bills for extending the privilege of limited
liability to certain Joint-Stock Companies, and also
to those who advance capital for trading purposes in
the position of sleeping partners, will, it is to be hoped,
be pressed forward for decision during the present
session, notwithstanding the late period at which they
have been submitted for a second reading. The ur-
gency is not so much for the necessity of making the
proposed alteration in the law, as it is for coming to a
settlement on the subject ; inasmuch as many concerns
are in a state of abeyance owing to the uncertainty
which prevails. Much may, no douht, be said on both
sides as to the propriety of disturbing the present
unlimited extent of security by which a creditor com-
placently views his position ; but it will not be disputed
that the Legislature should, as early as possible, come
to a decision, in order that the springs of industry may
be set free, and those who embark in commercial
adventures may know the reality of their position.
There is nothing at all novel in this question of limited
liability, except in its application to particular cases—
for it is repeatedly brought to bear in companies of all
descriptions, the only difference being that, by the
existing law, it must be conferred by a special Act of
Parliament, or a Royal Charter of Incorporation. But
since this question has been mooted, which dates from
an early period of last year, the bestowal of the coveted
privilege has been postponed until the fiat of the Le-
gislature on the general question has been given; and
the formation of new companies, for any object what-
ever, has been in consequence delayed.
The chief grounds upon which the Bills have
received the support of the House of Commons--for
the second reading was agreed to without a division
—may be thus briefly stated. It is firmly believed
by those who advocated the measure, that it would
induce many to embark their capital in trade who are
now deterred by the fear of unlimited liability, that
it would remove from the Board of Trade a power
which they ought not to possess, that it would
encourage the employment of a much larger amount
of capital than at present in the improvement of the
country, and that, by proper restrictions, it would
afford ample security to third parties by the publicity
which would be given to the terms of the contract on
which credit was extended. On the other hand,
fears were expressed that it might have the effect of
weakening, if not destroying that high commercial
position which this country has so long enjoyed, by
affording facilities for frauds and evasions.

In discussing this question, Mr. HORSFALL said,
that, while objecting to the abstract proposition of
limited liability in partnerships, he approved of the
general principle of the Bills, but thought it would
be better to adopt that relating to Joint Stock
Companies, and to leave the other, which concerned
private partnerships, for further consideration next
session. Mr. J. C. EWART supported both Bills,
alleging that there was a strong feeling in Liverpool
in their favour ; while Mr. W. BROWN opposed both

'as an unnecessary innovation upon a system of
commerniai Lam. Liaa worked ivus tml Du
'well. Both Bills were last night committed pro
forma, for the introduction of amendments, which,
it is to be hoped, will remove the most objectionable
provisions.

THE ALLIANCE WITH AUSTRIA.

AFTER the protracted endeavours which have been
made almost since the commencement of the war to
induce Austria, and with her the rest of Germany, to
join the Western Powers of Europe in an alliance
against Russia, the negotiations appear to have fallen
through, and England and France are left to carry
on the war for the liberties of Europe unaided, except
by Turkey, which is the more directly interested, and
the contingent supplied by the little state of Sardinia.
It will be remembered that when Austria •undertook
to occupy with her troops the Danubian provinces,
under the pretence of relieving Turkey and her Allies
from the onerous duty, a suspicion was expressed
whether Austria might not, in reality, be screening
the retreating Russians from the vengeance of the
victorious Turks, and enabling the CZAR to supply
more reinforcements to the Crimea. The Allies, how-
ever, treated the professions of Austria with respect,
and laboured indefatigably to bring about an active
co-operation which, if successful, might have had an
important influence on the progress of the war. In
the treaty of the 2nd of December last, Austria entered
into an apparently positive engagement that, in the
event of Russia refusing to concede the four points
which had been agreed upon as the basis of the nego-
tiations opened at Vienna, she would be prepared to
take some active measures for bringing the war to a
termination. This was construed to mean, in diplo-
matic language, a declaration of war against Russia
and an active co-operation with the Western Powers,
and in such belief the negotiations at Vienna were
entered upon. They have signally failed, because
Russia has refused to concede even the Austrian con-
structioi of the third point; and now, instead of re-
ceiving, as we had a right to anticipate, the promised
alliance of Austria and the German States, all that is
conceded is the maintenance of that neutrality which
has been a hindrance to our operations, even more,
perhaps, than active hostility.
It is pleaded as an excuse for the conduct of Austria
that she has great difficulties to contend with, her
poverty preventing her from maintaining a sufficient
army ; and that, as France has refused her assistance
in men and England in money, she dare not provoke
the hostility of so dangerous a neighbour as Russia, to
which her frontier is more exposed since the occupa-
tion of Poland by the latter power. She consented to
share in the partition, and now feels that the bargain
is a dear one, the source of weakness instead of strength.
This plea of inability may perhaps be a sufficient jus-
tification to Austria for thus holding aloof from a con-
test in the result of which she is so largely interested,
but its ultimate consequence may be more disastrous
than the present hostility of Russia, when the Allies
come to settle the terms of future peace. Austria and
the German States will have shut themselves out from a
voice in the arrangements, as Prussia did in the recent
conferences ; and since the occupation of Poland has
been the means of depriving the Western Powers of
AUstrian co-operation, it may be an element in their
future deliberations whether the revival of Poland as
an independent kingdom may not be necessary as one
of those material guarantees which the war was un-
dertaken to obtain. England and France have entered
into the contest with an evident determination to
achieve a triumphant result ; but, since Austria and the
rest of Germany hold aloof from bearing any share of
the burden, they can hardly be surprised if arrange-
ments should be made independent of any particular
consideration of their interests.