The Express.
London, England, 1864-01-25 00:00:00

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LONDON, MONDAY, JANUARY 25.

THE growth of commerce and the increase in the
savings of the country are both progressing at •
rate that is eminently calculated to foster a fur-
ther extension of joint-stock associations. The
application of the limited liability principle has
done much to popularise them. While the whole
fortune of each shareholder was liable on partner-
ship account, anything short of the very pro-
nounced success of an undertaking, or at least the
strongest probability in its favour, could hardly be
sufficient inducement to anyone to commit his
fortune to the chances of an enterprise over which
he could only exert the most limited control. The
necessities of the times have outburst the tram-
mels of an earlier period, and the nominal liability
represented by the amount of the shares held, now,
for the most part, indicates the extreme risk of the
purchaser of part interest in • public company.
Although the Limited Liability Act has, by extend-
ing
the field for joint-stock enterprise, conferred
great advantages on commerce and trade, those
rendered to society are in some measure alloyed
by the greater facilities for speculation which it
admits. No longer deterred by the danger of total
ruin in case of the failure of • company, very
many persons allow themselves to be deluded by
the efforts of professional promoters and speculators;
they, in turn, become premium hunters, without
possessing the skill necessary to preserve them from
danger, and unconsciously assist in the operations by
which they are ultimately duped. A voluntary
winding up, or the administration of the Vice-
Chancellor's Court, has terminated the existence
of very many companies projected for the pur-
poses of a class instead of being launched for the
public benefit.
It is quite evident that abuses of this nature
would be likely to end in the destruction of public
confidence, and that they would constantly assist
in the accumulation of fresh obstacles to new un-
dertakings, till at last suspicion would impede their
formation as well as their success. It is precirdy
at this juncture that the advent of the financial
associations professing to guide the public judg-
ment to well-considered schemes of enterprise is
announced. The active interest of various bodies
of mercantile men who individually belong to the
most eminent firms of the commercial capital of
the world is not unreasonably expected to be exer-
cised to the advantage of those who choose to
avail themselves of its direction. When a pro-
spectus is laid before a board whose combined ex-
perience is as great as that of the members of
the directing bodice of the existing financial
societies should be, from the individual knowledge
possessed by each, it may be expected to undergo
a searching examination. The endorsement of the
names of merchants holding the highest rank in
London ought only bo even upon condition that the
statements it contains are true. An unfounded
assertion or an uncertain hope should not be suf-
fered to deceive the public ; and an undertaking
that ultimately receives the'- sanction should only
appear if its successful operation be fairly probable.
It is no less in the choFce of directors that the
control of the financial societies is calculated to be
of utility. There can be little question that, to
be effective, the supervision of • financial com-
bination assuming to guide the public choice should
embrace every important detail. And it may be
readily concluded that as no great commercial de-
linquency can escape the knowledge of the chief
merchants of London, they should not suffer the
names of incompetent or unfit men to go forth,
charged, under their assent, with the care of any
tittle of public commercial interests. There is
another great point in which their knowledge
and practice may be made eminently useful.
The professional speculator has been accustomed
to write almost indiscriminately for shares in new
projects. He sells to the first bidder of a pre-
mium, intending merely to take shores from the
all otters and to deliver them at once to the buyer.
He has, and professes to have, no interest in the
ultimate success of the company.
A board newly constructed cannot have much
experience as to the position, means, or character
of the mass of applicants for the shares which it is
their business to allot. It must inevitably happen
that a very large proportion will go to professional
speculators, who take refuge in abundant ruses
and schemes, in which by long practice they
have become adepts. That shares so allotted will
be at once sold is certain ; and hence, by the mere
accidents of allotment, a really good undertaking
may be subjected to ill repute through a ono-
cession of sales that drive the shares below per.
The practise which the directors of the financial
societies acquire from the constant supervision of
application lists for shares in the new institutions
they support should afford the opportunity of
eliminating the mere speculator. The testa to
which the good faith of applicants may be sub-
mitted ought to ensure a judicious distribution of
shares in the interest of the proposed company.
Ruder careful treatment the general public should
benefit by receiving at first hand the investments

THE

they are now often compelled to buy at a needles
Ices of premium.
These are some of the ways in which the finan-
cial associations may serve the public. And to a
certain extent they have already done so. It rests
with their directors to determine how far they
shall further deserve the thanks of the investing
portion of the community. It must be obvious
that in proportion to their opportunities of doing
well are their means of doing ill. They may
exercise their power in a public spirit, and so
establish a strong claim to public confidence ; or
with ruinous short-sighted greed they may abuse it

to serve private ends, becoming little more than
associations of premium-mongers; and then the pub-
lic, quick to discern the truth through the veil of
false pretences, will leave them to discredit and
dccay.

bt Court.

WWDSCIR CALK JAR. 23.
Her Majesty, accompanied by Princes' Louise
"ad Princess Bestricm orrieed at Windsor to-day. at a
ovular Feet owe o'eleek, from Osborne.
Her Dlajesty was met by the Primo of Wm at the
Gnat Wasters steam, and drove with his Royal Highness
t 2 Frogmen-home.

_
The suite la attendance coariated cl Indy CharchM, the
Hon. M.& Brace, Colocal th. Hon. Sir Obarke Phipps,
Colonel Sir T. M. Biddniph, and Dr. Hohmann.

Juan: 24.
The Qasse and Penner Loeb* attended Divine service
tide naming in the Fiesta shapeL
The Hon. end Very Re►. the Dean of Windsor odiaiated.
Her Majesty paned the afternoon at Frogroore-hoote.

A Cabinet Council was held on Saturday at the
Foreign-office. The ministers present were Lord
Palmerston, the Lord Chancellor, Karl Granville,
the Duke of Argyll, Sir George Grey, Earl Russell,
Earl de Grey, Sir Chula; Wood, the Chancellor
of the Exchequer, the Duke of Somerset, the Right
Hon. T. Milner Gibson, the Right Hon. Edward
Cardwell. Lord Stanley of Alderley, and the Right
Hon. C. P. Villiers.