The Sun.
London, England, 1849-05-08 00:00:00

of a public building for their exhibition of British ma-
nufacturel.

INSOLVENT MEIIBER3 BILL.
Mr. MOFFAT postponed the sec)nd reading of this
Bill until the 6;h of June.
VOTE BY BALLOT.
Mr. IL BERKELEY postponed his motion for leave
to bring in a Bill to take votes for M‘ mb..2rs of Parlia-
ment by wad ~f ballot until the 24:h of June.
COLONIAL GOVERNMEN r.
Mr. ROEBUCK gave notice of his intention to move
on an early day for a Committee of inquiry into some
mode for the better government of the colonies.
Sir W. MOLESWORTH gave notice that on the 24th
inst. he would move for a Committee to inquire into the
cost of our colonial government, with a view to giving
free scope to private enterprise on the subject of colo-
uizltion.

DEBTS' FROM FOREIGN GOVERNMENTS.
Mr. ROEBUCK gave nutice of his intention to move,
on an early day, for a Committee to inquire into the
amount of debts due to this country from toreign states.
REPE IL OF THE MALT.. I'AX.
Mr. FEEWEN preFented a petition from farmers
attending Hay ward's Heath Market fur the repeal of
the malt
CANDIDATES FOR 'ME ARMY.

Mr. E WART said he had understood-from the Secre-
tary of War some time ago hat he would lay on the table
of the House the regulations for the examination of
he candidates for the army; he begged to ask again if
the Right Hon. Gentleman was disposed to lay a copy
of those reguNtions on the table of the House.
Mr. F. MAULE said he would have no objection to
produce the paps ri in question if the Hon. Member v; oukl
move for them.
Mr. E WART—Then, Sir, I do move for them now.
JOINT STOCK BANKS.

On the order of the dayebeing read,
Mr. HEADLAM rose to move for leave to bring
in a Bill to render lawful the formation of Incor-
porated Joint-Stock Banks, bawd upon the principle
of a limited lielsility of the shareholders. In doing
SO he said, in a commercial ceuntry like this it was of
the highest importance that the laws which regu-
late the system of joint-stock banking companies
should be based on the clearest principles which
reason, fortified by experience, could discover. Nut
the least of the evils of the present state of things
was, that it had brought discredit upon the
whole system, and prevented that full development
of it which was necessary fur the full play of the
capital and energies of this great country. When they
considered the infinity of mercantile transactions that
were constantly carried on, and which affected the em-
ployment of the labouring classes, and especially, when
the House contrasted what we had dons with
what had been done in other countries, they
could not fail to be of opinion that if a bet-
ter system had been adopted the country would
have been greatly benefited. When the failure
of one of these banks took place, the energies of the
whole district were paralysed, public confidence shaken,
whole masses of the people left unemployed, and irrepar-
able injury thrown upon a banking system which under
a wise limitation of responsibility would not exist.
Joint-stock banks were comparatively of recent growth
in this country. When they were first established men
were sanguine of their success, and shut their eyes to
the dangers that attended them. It was held out to the
world that a limit could be placed upon the responsibility
of the shareholders, and clauses were inserted in the
deeds of settlement providing that in case a certain
amount of the capital were lost the business of the bank
should be wound up, but so long as the present law ex-
isted, it was perfectly right to attain the object of limit-
ing liability by clauses in deeds, or conditions in
charters.—(Hear, hear.) And yet such allurements and
misrepresentations were held out to the public to this
day, and in districts too where the public might be sup-
posed to have had some experience in such matters.—
(Hear, hear.) He held in his hand the prospectus of
a bank in which this captivating condition of limited
responsibility was held out to the shareholders, and,
without mentioning names, he might state that these
prospectuses were continually appearing in paragraphs
and advertisements in the public prints.—(Hear, hear.)
Another characteristic of the evil of the present system
was, that it allowed every bank a degree of credit
which wss thoroughly false in principle and
perfectly injurious in practice. A joint-stock
bank did not borrow money upon real security,
but generally upon the security of its proprietors.
there were instances in which as much as two millions
had been raised upon the security of the proprietors,
and he held that that was the most dangerous power
which they could possibly place in the hands of any
body, unless controlled by a superior power. In case
of failure, if the law worked well, two alternatives
ought to be held oat to the proprietary, either to make
oud the capital which had be, n lost, or to wind up the
bank and bring it to a conclusion at a comparatively
trifling loss. But as the law now stood, the batik could
continue its operations for a considerable time upon
borrowed capital after it became bankrupt.—(Hear.)
£he law gave the strongest possible inducement that any
yst,En could give to every individual in the bank to
maintain the unhealthy sy stem which he had been en-
deavouring to describe. From: the first commence-
ment of the bank till the failure took place
the operation of those laws marked the road

to ruin ; and not until that failure had taken

place did the bank come to any healthy operation. It
ould be in the knowledge of the house that

before 1826 joint-stock Canks were not lawful
in this country. The Bank of England then
possessed what were generally, though erro-
neously, called exclusive privileges in banking.
Chi Bank of England had not an exclusive monopoly in
banking, but it had an exclusive privilege, in the tact
hat it was the only corporation which build carry on the
rade in banking. The Bank of England was a corpora-
ion in the strict term of our law, a corporation being the
complete merging of the individual in the body corporate.
rile Bank of England had two of the greatest elements
of stability and permanence ; first, a limited liability in
a corporate character, and, secondly, a paid-up capital.
rho Bask of England by its paid-up capital and the ad-
vantages conf. mil by its charter, had been enabled to
cooler much public good. The liability of the share-
holders being limited,that establishment possessed an ad •
vantage over other smaller ones, which was unjust. They
gad applied to be plac, d upon the same footing, but the
Bank had objected, though Mr. Huskisson and Lord
Liverpool were of opinion that the advantages possessed
by the Bank of England should be extended, since they
eould not fail to tend to the promotion of commerce.
tie had now said sufficient to enable the House to form
some idea of the origin of unlimited liability, and she
same effects which resulted from it in early years ful-
!owed in 1833. At that time, however, the Charter of
he Bank of England came to an end, and then an
opportunity was afforded to Government of placing the
banking system upon a safe footing. Lord Althorp did,
indeed, endeavour to pass a Bill of this nature, but cer-
tain objections were raised against it, and he failed to
pals it. Since then, however, the Bank of England kad
eursued a more liberal policy, they had given up all their
restrictions but this one, and he had no doubt, if the
House now expressed an opinion adverse to its eolith u
mice they would be prepared to give that up too.— (Hear.)
Having stated the defects of the existing law, he would
now mention the nature of the provisions which he pro-
posed for the purpose of remedying them. In the first
forma bank withoutl,raeehereiquiredth the sanctionindividualatnoof th
she administrative
tiesatbrlar
able to
Government of tiie country. He proposed that a pe-
tition should be laid before the Board of Trade, stating
the circumstances which rendered it expedient
that an additional bank should be created, so
judge
whether the governor should be able to
whether it was properly constituted, and whether
it was desirable thet another bank should be formed.

He also rf quired that, before the promoters received
letters patent, a certain sum should be invested in
the public funds ; but he would not prevent the
Bank availing itself of the sum so invested
when periods of difficulty and danger arise,
although he required that no dividend should be
declared until the sum was reinvested. In addition he
provided that a bank should produce its accounts,
which were to be kept in a particular form, four times
during the year; and that if there were any material
error in them, that the parties who were aware of it
should forfeit the share which they had in the bank. He
did not think that there would be any practical
difficulty in putting that provision into operation.
The t ffect would be that the accounts would be
perfect accounts, and the public Might depend on
such accounts. The public would have first
the capital paid up, and they would know secondly bow
the bank was going on by the continued publication of
its accounts. The security of the public would, therefore,
be considerably greater than it was at the present moment.
There was a provision in the Bill to enable existing
companies to come within its provisions. There were
some other minor provisions; but looking at the length of
time he had addressed the Hous,4 he should not deal
further with the provisions of this Bill. He did not
propose the Bill as a theoretical measure; for
they had tried that plan in this country, and
in Scotland ; and in America, where much attention
had been pad to the science of banking, a similar plan
to the one proposed had worked well. France also
had tried it, and looking at the extension of new banks,
and to the disastrous results that had taken place
with respect to many, and that the plan he
proposed had been approved of by Mr. Hes-
kisson and Lord- Liverpool, he thought he had a
right to ask the House to permit him to introduce this
with the view to the protection of shareholders,
who were exposed to greater temptations than men
should be subject to,—(Cheers.)
Mr. E WART seconded the motion, having for many
years entertained similar views to those enunciated
by the Honourable Member. He was opposed to
unlimited liability, because it aff'rdfd no definite
protection to the public. The Scotch system had been so
stpcessful because it was based upon the principle of
limited liability.
The CHASCELLOR of the EXCHEQUER said he
was opposed to the principle of litnitcd
[LEFT SPEAKING.]

THE ARMY.
CHATIIA3I, MAY 7.—MILITARY OFFICERS FOR INDIA.
—The foll,,win}, officers from the several &pots form-
ing the Proviional Battalion, aim selected by Colonel
Thomas W. ate, ICH., for embarkation to join their re-
giments in India:-
1 Oth Foot—Li, ut. James Van Hartnals Montague,
Lieut. A. Montgotnerie, Lieut. M. Valera 13nd, Eosign
F. B. Sand.% ith, Ensign R. M'Culluch Peurd, and En-
sign F. Beatty.
18th Foot (Royal Irish)—Captain Thomas Barnes,
Lord Cohrance, Captain Ashton, Lieut. Thos. Martin,
Lieut. Anthony W. S. Armstrong, Lieut. C. Wood-
wright, Lieut. William T. M'Gregor, Ensign Elliott,
and Ensign A. M. Jones.
24th Foot (2d Warwickshire)—Capt. F. C. Skurray,
Lieut. Acton Do Valle, Ensign W. V. MunDinga, En-