The Sun.
London, England, 1865-02-03 00:00:00

Leeds Chamber of Commerce•

The annual meeting of this institution was held
on Wednesday at the Town-hall, Leeds. Mr. D.
Lupton, the president of the chamber, was in the
chair, and among those present were Sir J. W.
Jtamsden, M.P., Mr. G. S. Beecroft, M.P., and Mr.
E. Baines, M.P.

The Secretary (Mr. W. Hirst) read a long report
from the Council of the Chamber. The report dealt
with the varioy subjects which the chamber had
entertained during the year. Among them were
the pattern post, the statute of frauds, the extra
duty on bonded goods, the corn duties by weight,
the sugar duties, the registration of partnerships,
the County Courts Amendment the Factory
Acts Extension Bill, the railway schemes interest-
ing Leeds, the railway rates between Leeds and
London, and numerous other subjects. On the
question of foreign tariffs the council thus reported :
—" For some years
past an opinion has been gene-
ral that the mutual action of the Foreign-office and
the Board of Trade has not been satisfactory.
Three years ago the chamber issued a circular on
the subject, which was sent to all other cham-
bers and to some influential members of Parlia-
ment. The proposal then made was that the
Foreign.-office should comprise a department speci-
ally devoted to the care of our commercial interests
abroad, and which should be presided over by a per-
manent Under-Secretary. The subject has each
year been brought before the Associated Chambers,
and at their last meeting a resolution was passed re-
questing Mr. W. E. Foster, M.P., to move for a
select committee of the House of Commons to in-
quire into the whole question. This committee was
granted, and in its report it recommended the esta-
blishment of such a special department. The Coun-
cil is glad to learn from a speech of Mr. Milner
Gibson, as reported in the newspapers, that this re-
commendation will be followed out by her Majesty's
Government, and the Council confidently hopes for
good results from it. The Council has great satis-
faction in saying that during the past year much
greater attention has been paid by her Majesty's
Government to the wishes of commercial bodies than
has ever before been the case. This was particularly
shown by its sending down to the manufacturing
districts Mr. Herries, Secretary of the Legation at
Turin, and Mr. Ward, Charge d'Affaires at Ham-
burg. The Council, along with some members of the
Chamber engaged in foreign commerce, had inter-
views with both these gentlemen and the wishes of
the Council were explained to them. The Chamber
has repeatedly recommended this course to her Ma-
jesty's Government, and it trusts that the precedent
will be followed in other instances. There has been
no material change to report as to the tariffs of other
countries, The Prussian commercial treaty with
France has, however, been accepted by all the States
composing the Zollverein, and will shortly come
into operation. The Council has every reason to
believe that it will at once—so far as the rates of duty
are concerned, be applied to the productions of this
country. In Spain and Portugal there are few signs
of the adoption of a liberal fiscal policy. As regards
Austria, the Council entertain great hopes that a
change is near at hand. The Associated Chambers
have taken vigorous action in this matter, and they
deputed Mr. Allhusen, of Newcastle, to represent
them in Austria on his visit to that country in the
early part of the year. Afterwards they issued an
address to the Austrian Chambers of Commerce,
pointing out the benefits which this country had
reaped from its recent commercial policy. The ad-
dress was drawn up by Mr. Wurtzburg, assisted by
a sub-committee appointed by the association, and
there is every reason to believe that it has beenvery
successful in drawing attention to the desirableness
of a thorough change of policy in Austria. In Russia
also there are marked signs that both the Government
and the people are beginning to understand this
question better ; and here, also, a change is sooner or
later certain. Considering the great population of
that empire—its immense production of raw material
and other articles suitable for the consumption of
this country—a liberal tariff there would be produc-
tive of the happiest results. If Austria and Russia
join France, the Zollverein, Italy, Holland, Belgium
and Switzerland, in a nearer approach to free trade,
there is no doubt that the other States will be com-
pelled to follow, or see themselves altogether iso-
lated. The progress of sound commercial prin-
ciples is slow, but it is certain. The Council cannot
on this occasion offer the same congratulations on
.the state of trade in this town which it was able to
do last year. It has suffered from several causes.
The greater part of the ironworks in this district '
were standing all summer, owing to a dispute be-
tween the master and the men. The financial crisis
in London has also to a great extent restricted busi-
ness. This was accompanied by the suspension of the
Leeds Banking Company, followed by several heavy
failures. The Council need not particularise the dis-
graceful state of things then disclosed. The orga-
nised system of forgery and the negotiation of ac-
commodation bills which appear to have been adopted
might well create astonishment, and it is discredit-
able to the laws of the country that nearly all con-
cerned in this nefarious system should have escaped
punishment. It is a question worth consideration,
whether the time has not come when it is necessary
to appoint a public prosecutor, whose duty it
should be to bring to justice the perpetrators of such
frauds, instead of leaving them entirely to the chance
action of private individuals. Under the circum-
stances detailed, it can hardly be deemed strange that
a generalfeeling of uneasiness should be entertained.
This, however, very soon subsided; for a calm exa-
mination of all the circumstances of the case showed
the great soundness of the general trade of this town.
The failures were confined almost altogether to
parties either heavily involved with the bank as share-
holders, or whose whole business transactions were
based on the assistance given by this bank in advances
or in the negotiation of fictitious bills. No house
of standing or reputation failed, and in a very short
time confidence in the general stability and sound-
ness of the trade of this town and neighbourhood
was restored. The Council believe this confidence
was strictly warranted. There are strong evidences
that the productions of this district have not been
in excess of the legitimate demand for them, and that
the late dullness of trade must be attributed to gene-
ral rather than to local causes. The Council is glad
to see that already business has considerably revived,
and hopes that in all its varied branches the trade of
this district will soon enjoy its former prosperity."
-Mr. BAINES then addressed the meeting. He con-
gratulated the Chamber upon the success which had
attended the steps taken by them with reference to
the fire insurance duty, the pattern post, an amend-
ment of the Bankruptcy Act, the Austrian tariff, the
opening of a commercial department at the Foreign
Office, and a reduction of the sugar duties. He also
observed that the extension of the Factory Act to
warehouses had been so mitigated as to draw the
sting of the measure in that respect. In one point
only had the Chamber failed, and that was in at-
tempting to obtain a reduction of the extra duty of
one-quarter per cent. on goods transmitted to the
Leeds bonding warehouses. But out of that future
g°(3d might arise, for it had led already to the conside-
ration_ of whether the navigation of the river Aire up
to Leeds could not be so opened that vessels of 300
tons could come uto the whereas vessels of
only 150 tona Cold) town,
give Leeds
for reach it at present. That would
and manymake teed ses all the advantages of
a seaport,
hthe centre for the distri-
bution of foreign Preductsstrough the whole of the
West Riding. He thought
the
success which had
attended the operations of Leeds Chamber of
past yeare ought to encourage
Commerce during the
their objects ;
them to continue steadily to pursueforget that some-
but he thought they would not
thing was due to the Associated Chambers
coerce, that little commercial parliament of Com-
, which had been very useful in connection with some ve
portant matters. (Hear.) On the subject of bank-
ruptcy he (Mr. Baines) was not competent to pro-
nounce an opinion ; but Scotch merchants said that
they were satisfied with the existing Scotch system,
because it worked well and was very simple. The
power, however, to punish a fraudulent bankrupt
was not quite so satisfactory as the machinery for
collecting the assets of a bankrupt. But he hoped
the Bankruptcy Act for England, which was a scan-

dal to the Legislature, would be amended, so that
some fair and effectual mode might be arrived at of

securing the rights of ereditors against those, whom
they had trusted. (Hear.) The hon. member went
on to mention the zeal and perseverance which had
been shown by Mr. W. E. Forster, M.P., in get-
ting a commercial department in the Foreign-office.
He said it was intended still to keep up communi-
cation with the Board of Trade on the subject, in
the hope that further important improvements
might be effected. He was sorry to have to
speak of the disastrous and disgraceful circum-
stances which had attended the stoppage of the
Leeds Banking Company. He deeply lamented
the events which had occurred, and he could
not but ask, had this Chamber done all it could and
ought to do to prevent other directors of that kind?
It was only so many persons as they could count
on their ten fingers who really had been culprits. It
was not the tradesmen of Leeds who had participated
in the mischief, but there were certain persons going
on in a most reckless manner, and altogether un-
checked who brought about the calamity. He was
travelling in Germany at the time of the bank failure,
and he was told that one of the largest creditors was
a man whom nobody in Germany would have trusted
with £5. (Hear.) So that something had been known
in Germany which was not known in Leeds. In Ger-
manythey suspected that wrong operations were going
on ; they knew that forged bills were going through
the bank. But it had occurred to him (Mr. Baines)
whether it was not the moral duty of those who
knew these things to have revealed them. Still, it
was a delicate position in which a banker was placed.
He might very soon have an action for libel upon
him, and the exposure might be ascribed to his
rivalry. But certainly the representative of the com-
merce of Leeds should ask themselves whether it was
possible to do anything to prevent such a reckless
and miserable course as had been pursued by several
firms in Leeds, home and foreign, and also in one of
the banks in Leeds. (Hear.) There was also to be
borne in mind the amount of money called up by the
various companies, and in his opinion it would be
much safer if such companies called up a larger pro-
portion of the capital than they had hitherto done.
In conclusion, he renewed the caution he gave last
year as to the state of fever and mania which then
existed in the local trade. He rejoiced to believe
that the trade of Leeds generally was as sound as
that of any town in the kingdom, but considering
the number of new companies there were of every
description, which called for funds to an undesirable
extent, it was necessary that the members of this
Chamber should inculcate prudence in all with whom
they were connected. (Hear.)
Mr. BEECROFT next addressed the meeting. He
said on previous occasions they had had the plea-
surable satisfaction of congratulating themselves on
the increasing prosperity of the good old town, and
he much regretted that the Council could not to-day
offer similar congratulations. No doubt the trade of
the town had suffered from severe causes. The dis-
pute between the masters and the workmen in the
ironworks was a serious affair and greatly to be
lamented. With that part of the report which re-
ferred to the failure of the Leeds Banking Company
and stigmatised the mismanagement which led to it,
every commercial man must concur, while all alike
must sympathise with the wide-spread misery which
the stoppage of the bank had occasioned. (Hear.)
The incomes of many of the fatherless and of the
widows had been entirely swept, away, and many a
cheerful and happy home had been made desolate.
It was idle to blink the fact that a system of for-
gery had prevailed which proper vigilance must
have detected, if indeed, it has not been prevented
altogether by the knowledge that a more whole-
some control was exercised over the affairs of the
company. (Hear, hear.) Second only to this (if
second at all) had been the extent of accommoda-
tion bills with which the country had been inun-
dated under the sanction of the bank's endorsement;
and many of them, he was told, of that worst form
of accommodation bill for which just so much of
apparent consideration had passed as to baffle the
ordinary means of inquiry. (Hear, hear.) It was
to be regretted, too, that any of the perpetrators of
frauds like these should escape punishment ; and if
further legislative measures were required to meet
such cases, it could scarcely be supposed that Par-
liament would be backward in supplying the want.
(Hear, hear.) It should, however, be recollected
that with general amendments of the law the con-
stitutional functions of Parliament cease. (Hear,
hear.) It did not legislate for individual cases, and
still less could it supply defects of evidence. He
might observe that when the Leeds Banking Com-
pany stopped payment there was immense excite-
ment in London, and great alarm was created
generally in commercial circles. It was, no doubt,
the means of hastening the monetary panic which
was at that time looming in the distance ; but
sometimes good came out of evil, for the longer
the panic had been delayed the greater would have
been its severity. (Hear, hear.) The stoppage
of the bank came upon the world like a thunder-
clap, but as a thunderstorm usually cleared the
atmosphere, so they might hope that it would
prove to be a beacon and a warning for the future.
(Applause.) It was gratifying, however, to know
that, notwithstanding these drawbacks, the general
trade of the town and neighbourhood was healthy
and sound. (Hear, hear.) Although a general
feeling of uneasiness and alarm prevailed, it was a
remarkable and most encouraging fact that in Leeds
ne house of standing and reputation failed, the
Leeds houses, as a rule, having exercised great pru-
dence. (Hear, hear.) Confidence had been restored,
for there were abundant evidences to prove that
there had been no reckless overtrading in the dis-
trict, and that the production had not been in excess
of the legitimate demand. (Hear, hear.) Having
taken some interest in the pattern post, he was
much gratified to learn that its usefulness had been
largely extended during the past year at reduced
rates. When it was first brought into operation the
Post-office authorities were greatly disappointed
with the results, but this arose simply from the pre-
posterous rates charged in comparison with the
rates charged by the book post. (Hear, hear.)
With more enlightened views th'e authorities re- i
duced the rates, and now the results were satisfac- I
tory. Patterns were the pioneersi. the ready avail-
able means by which all the t branches of our
industry are developed and fostered, and he had
not the slightest doubt but that year by year the
results would be found to be more and more satis-
factory. (Hear, hear.) It was much to be re-
gretted that the extra charges on inland bonding
were not abolished. (Hear, hear.) This difficulty
however, be met by adopting the suggestion
7thoatdLeeds should be made a port, and this could
easily be accomplished at- a.' comparatively trifling
expense by deepening the river and enlarging
om a few
much larger
rg to
er
locks. Steamers of 250 toils might then
Leeds-bridge, and sailing vessels of a uc
tonnage. He believed a similar scheme was proposed
about 30 years ago. The trade of the town was
then insignificant in comparison to its present g
nitude and importance. The commercial traffinica-of
the country was increasing so rapidly that the large
railway companies found great difficulty in meeting
the demands for conveyance. In proof of this he
might state that a short time before Christmas the
Camden-town station of the London and North-
Western Railway was for a week completely blocked
,
up with the pressure of traffic. (Hear, hear.) Well,
such being the case, water conveyance should be
made available wherever practicable, so as to relieve
the railways from a superabundance of the heavy
traffic of the country. He therefore ventured to
hope that speedy measures would be taken to
make Leeds a port.
With its daily increasing trade
every facility fot conveyanee should be rendered
at the lowest possible cost. (Hear, hear.) The
town had a noble river, and therefore why not
utilise it for the public advantage ?
(Hear, hear.)
He was informed that the locks between Castleford
and Wakefield were about being enlarged, so that
that Leeds
sea-going vessels of large burden could get up to
(Applause
Wakefield. He would therefore venture to suggest
respect.
pass such a mea
ought not to be behind Wakefield in this
of PartherahiPs h ..
As
that the House
1 regarded the registration
of Conimona
was; e was sorry to say
Bill introduced'
a direct
not at present in the humour to
say one word
a:lire. In the next place he would
It was session into the. House. of Lords.
to the County Courts Amendment
trader, affording
y encouragement to the dishonest
more easil
white:az' hra greater facilities for being
ea (Hear, hear.) The pro- ,