The Sun.
London, England, 1869-12-25 00:00:00

TOE SUN, LOINDON, SATURDAY EVENING, DECEMBER 25, 1869.

ungainly:presence, and work their deadly ends where
peace and plenty should be found, and a smiling and
industrious population render thanks to HEAVEN for
its manifold gifts. We are told by the philosopher
that such are among the inevitable results of civili-
sation, and that progress must entail suffering and
loss on many who come in its conquering path. If
this be true, it does not speak very forcibly for the
benefits that we, the heirs of all the ages, have de-
rived from the wisdom of centuries and the experi-
ence of bygone generations. Christmas, at any rate,
is an old institution, and modern iconoclasm has not
yet pronounced its doom. While it is honoured and
cherished there is something to hope for, and let its
recurrence on the present occasion lead us on
to the contemplation of brighter and better days.
If the poor should remember that they arc
not shut out from this festival, for its LORD
and 11.1AsTER had not even where to lay His
bead, the rich should also think why He be-‘
c.tme poor, and take to heart the les-3ons of
charity and goodwill. Many other truths might be
impressed on the minds o: those who were ready to
receive them, but they are sure to occur to the willing
mind, and the unwil:ing will not heed or hear. They
who exercise toleration and forbearance, who con-
sider the poor and protect the feeble, are carrying out
in their lives the precepts Tihich the Founder of
Christmas came on earth to inculcate. The avari-
cious and the sordid, the oppressor and the cruel,
may join in the celebration of the season, but they
cannot really enter into its meaning or its mysteries.
Christmas is the beacon of our earthly road, the re-
minder that we mortals have of our connection with
Him who once wore our nature and trod our sphere.
It is a time full of hopes and meet for rejoicing, and
long may the period be removed when its celebration
shall be neglected, and its ad-rent pass in silence.
We are told to rejoice, and the surest way of fulfill-
ing that Divine command will be to tread in the only
course our human footsteps can follow. He whom
the wise men honoured and the shepherds worshipped
now inhabiteth eternity, and dwelleth in temples not
made with bands; but while the world he came to
save shall last, the angelic strains shall linger on its
confines, and all who practise peace on earth and
goodwill to men, have tuned their hearts to the me-
lody of the first Christmas Anthem.

THE public mind will have been not unprepared
for the failure of the OVEREND, GURNEY, and Co.

prosecution. At an early stage of the trial the ver-
dict cast its shadow before. Time, which always

labours on the side of mercy, had worked a visible
change in popular sympathy. Long-drawn processes
tell in favour of the accused, for it is only in obedience
to a natural instinct that the mind shrinks from

inflicting further punishment upon men who
have already suffered the torture of suspense and dis-
grace. Delay should not, indeed, defeat justice; but
in most verdicts on long protracted cases may be
traced the influence of the equitable principle that
much suspense is in itself an infliction which may be
pleaded in mitigation of the strict letter of the law.

The legal strength of the two sides, moreover, was

deplorably unequal. Even with a better case, Dr.
- -

TCENEALY and his juniors could have had little

chance against the most formidable array in the
opposite camp. Small hope can be entertained
of a cause, the leading advocate of which is
repeatedly interrupte Iby the judge on questions of
fact, and who finds it necessary to apologise for
his inefficiency at the close of his address. Some
effect, no doubt, is to be attributed to the influence
of delay and the superior professional strength of the
defence. But, in addition, it is undeniable that the
defendant's case rested upon really powerful

pleas. The substance of the numerous charges was
that the directors, in order to transform the private
discount firm into a joint-stock company, put forth a
prospectus which purposely misstated the facts of
the case to the public, representing a ruined concern
as flourishing, and holding back important details. On
the other hand, it was contended that the old firm had
always possessed a splendid discount business of great
earning power, and that this business remained intact
up to the final catastrophe. But, besides the regular
trade, the firm unfortunately had of late years em-
barked in speculative and illegitimate ventures, most
of which had turned out badly. Heavy liabilities
from this source pressed upon the "corner house,"

and though the discount business was unimpaired, it
of course required much capital. The locking
up of large sums seriously impeded the
working of the regular trade, and at length
threatened to stop it altogether. A. fresh supply of
funds became indispensable. It was open to the firm
to declare itself insolvent, but this course would
have simply dissipated the legitimate business, the
goodwill of which was calculated at half a
million. The alternative of inviting new capital
was clearly reasonable, provided it were carried out
in a proper manner. The project of a company was
accordingly drawn up, the capital to be a million and
a half, of which the firm would take £250,000. The
discount house proposed to sell its legitimate
business for half a million, but to retain the
liabilities arising from the speculatiOns. These
liabilities were represented by a deficit of
four millions upon an account of fifteen millions.
The old firm were to guarantee the now company
against loss from this enormous aggregate of insol-
vency. The securities which the partners set off against
the four millions were good assets to the extent of
one million, the price of the goodwill, half a
million the private property of the members of
the old firm, and other items. Three-and-a-half
years were to be given the partners to deal
with this deficiency. Meanwhile the discount
business was to go on, it was hoped that the insol-
vency would ultimately be got rid of, and then a great
career of prosperity awaited the new company.
Such was the programme. Was it so-carried out
as to leave reasonable ground for the supposition that
a fraud was intended? There can be no doubt that
the prospectus which described this scheme was of
the glowing type, avoiding disagreeable topics, and
altogether of that " business " character to which we
are but too well accustomed. Still the question,
in a criminal sense, turned on the point
whether the projectors had made a reasonable calcu-
lation of success, or whether they had invited the
public to share in a concern which they knew must
inevitably come to ruin. To issue a " glowing " pro-
spectus is not creditable, but it is not a fraud, and
cannot be held answerable at criminal law, any more
than the ordinary extravagant laudation of goods by
a tradesman. Both this and various other transac-
tions, including the total suppression of the second
deed, which described in detail the arrangements by
which the deficiency was to be covered, were of ques-
tionable morality. But various circumstances pointed
to the conclusion that these doubtful acts did
not amount to a criminal fraud. In the
first place, the partners and. their colleagues on the
new directory risked and lost large sums in the com-
pany. The Messrs. GURNEY and Mr. BIRKBE cic staked
everything on the issue, and Mr. BARCLAY and Mr.
GIBBS, although they had no connection with the old
firm, invested £50,000 in the venture which they
undertook to conduct. Then, again, the testimony
went to prove that the estimate by which the partners
hoped to cover the deficit was not at that time unreason-
able. The amount which the private estates actually
did realise fell far short of the calculations, and so
did the assets; but both these species of security
were converted at an unfavourable time, after a great
commercial crisis had taken place, and when sales
were numerous and buyers few. Lastly, the imme-
diate downfall of the company is to bo attributed to
an extraordinary run upon the private deposits. The
public became suspicious, and withdrew its money
from the bank at the rate of a million a month.
Hardly any concern could withstand such a shock,
and the drain, added to an increase in the rate of
interest, speedily brought about the end.
But for these exceptional circumstances the business
might have flourished. It was the consideration that
some of these influences were beyond the directors'
control, and that in other respects they had coui-

mitted errors of judgment rather than deliberate
wrong, which led the jury to decide that the moral
offence of which the defendant's were guilty did not
amount to a crime. It must not be forgotten, how-
ever, that the moral offence is a reality. It is a fact
that the public were invited to take part in
an enterprise the full nature of which was
not disclosed to them. It is equally a fact
that the members of the firm, after bringing them-
selves to ruin by their own recklessness, sought aid
from the public through a scheme which, though not
impossible, was, as the result proved, exceedingly
dangerous. To hunt men down for the sake of
revenge is bad ; but to forget the wide-
spread disaster with which this memorable case
is connected is worse. Whatever the LORD CHIEF
JUSTICE may think, there is a great public question
involved in this case. The doings of the directors
were only one specimen of the evil which lies at the
root of all these joint-stock catastrophes—the power
which individuals possess under present con-

ditions, of securing supplies of money for
personal ends by means of a trading
company. No doubt OVEREND, GURNEY, and
Co. (Limited) might have done well under
different circumstances ; but the primary idea in
starting the concern was undoubtedly to save the
original firm from ruin. It was through undertakings
of this kind that the last great panic was brought
about. The most prominent representatives of the
evil are surely no more to be free from censure than
lesser offenders. In this sense it is impossible to
acquit the defendants in the late trial; and it must
be admitted on every hand that Dr. THoM, in prose-
cuting, performed a thankless but valuable public
duty. Let us hope that the LORD CHIEF JUSTICE'S
advice will be taken, and that such a task will not
fall to a private individual again.

THE GOVERNMENT AND THE VOLUN-

TEEMS.

The Pall iffalt Gazette gives some most important infor-
mation, if it be correct, upon the Government and the
volunteers. On Thursday (according to our contempo-
rary) Mr. Cardwell had a conference with volunteer
officers of the artillery and engineer branch of the service,
and propounded to them the views of the Govern-
ment as to future allowances and requirements.
It seems that the maintenance of light field
artillery will not be encouraged, and as the
present grant is thought to be enough for garrison artillery
and engineers, there will probably be very little alteration
with respect to these branches of the force, but it is
thought that some substantial support will be given to the
Shoeburyness meetings of the National Artillery Asso-
ciation, affording, as they do, such excellent oppor-
tunities of giving practical instruction in gunnery.
Stated as briefly as possible, the following are the
alterations which the Secretary of State for War
proposes to make in the volunteer regulations so
far as they affect rifle volunteers. It is understood that
Mr. Cardwell wishes the proposals to be considered and
discussed by those who are interested, and he will confer
with the officers again at the end of next month :—First,
' it is proposed to reorganise the force so as to bring it into
closer connection with the regular army; to put it under
the command of the district generals, but not to interfere
with the functions of the lords-lieutenant. Secondly,
the grant is only to be expended on " neces-
sari s," and the old system of payment by the
adjutants, and the vouching of every item of expenditure
will be reverted to. Under the head of necessaries will be
classed-1. Expenses of head-quarters. 2. Caro and
repair of arms. 3. Shooting ranges. 4. Travelling to and
from ranges and parades. 5. Allowance to buglers.
6. Expense of uniforms and accoutrements. The War
officials have calculated (supposing all companies to be
eighty men strong) that Class No. 1 costs £2l per
company in administrative battalions, £23 in country
consolidated battalions, and £25 in metropolitan bat-
talions. Class No. 3 costs £l3 for administrative battalions,
£l7 for consolidated, and £2l for metropolitan battalions.
Class No. 6, £3 19s. 3d..—that is to say, for uniform and
accoutrements complete. Provided the capitation grant
is raised to 30s. per efficient, it is thought that all these
" necessary " expenses will be covered. Thirdly, efficients
in future will have to attend nine drills, fire sixty
rounds (ten of them "volley "), or shoot out of the third
class, and attend the official inspections ; or, failing that,
to attend two extra drills. Fourthly, company drills must
be with at least twelve files and battalion parades four
companies of sixteen files. Fifthly, no charge will be made
for the .conveyance of Government stores, nor for fair
wear and tear of Government property, not for regi-
mental books and snoucuig bargts.
tive battalions are, so far as discipline goes, to be put on
the same footing as consolidated ones. Seventhly, com-
missioned officers will have to pass an examination or
attach themselves for a month to a line regiment or to the
county militia, and schools of instruction open to volun-
teer officers will probably be established. Lastly, non-
commissioned officers will have good service badges, and an
increased allowance may, under certain conditions, be
earned by them for their corps.

THE OPPOSITION TO DR. TEMPLE.

--

The John Bull has the following :—" Some persons
Imagine that the opposition to Dr. Temple will now cease.
Such might be the case if it had anything of a per-
sonal character in it; but this is not so. We
learn on the best authority that as Dr. Temple
made no declaration, and as the protests were so weighty
and numerous, the gravest doubts rest, in the opinion of
many best able to judge, as to the canonicity of his con-
secration, and of the validity of the orders which he may
confer. We understand that the question of his
right to hold a seat at all in Convocation will be
questioned; and certainly many bishops will decline to unite
with him in committees and other private business.
Churchmen should also be alert to prevent any surprise
in placing Dr. Temple on the list of vice-presidents of the
S. P. G. We believe that no lapse of time can make Dr.
Temple a rightful bishop, accordfng to Church principles
and Church law; and that nothing but a public and solemn
retraction of the essay will enable orthodox bishops to hold
communion with him."

A meeting of the Chapter of Exeter was held on Thurs-
day evening to receive and discuss a copy of the proposed
address of the clergy of Exeter to Bishop Temple. The
address, slightly amended, was agreed to after some discus-
sion, in the course of which it was said that however much
they (the clergy) might personally disagree with Dr:
Temple, yet they should receive him with hope,
trust, and reverence. The tenor of their address
was in accordance with this expression of opinion.
The local friendly societies also met in Exeter
on Wednesday night, and decided upon presenting
Dr. Temple with an address, on his arrival in that city. It
was understood that the friendly societies were to take
part in the procession on the occasion of the Bishop's
arrival. The following telegram which had been received
from Dr. Temple was read, much to the satisfaction on
the working men present :—" The Bishop does not arrive
in Exeter until Wednesday morning. The Bishop will
be very glad to receive the working men a few days later.
The Bishop is very grateful for the kind feeling the work-
ing men have shewn towards him." The day on which the
address should be presented was not fixed. Bishop Trower
has declined the invitation of the Town Council to be pre-
sent at the banquet. The following is his letter declining
the invitation :—" 9, Nevill Park, Tunbridge Wells,
December 20, 1869. Bishop Trow•er acknowledges,
with due feelings of obligation, the invitation which he
has had the honour to receive from the Mayor
and Corporation of Exeter to a chjefiner at the Guildhall on
Tuesday, December 28, to meet the Right Rev. the Lord
Bishop of the diocese. Bishop Trower regards the con-
secration of that prelate (under his present circumstances)
as perhaps the greatest sin with respect to the duty of
fidelity to revealed truth in which the Church of England
has been involved since the Reformation, and is, there-
, fore, constrained, notwithstanding his hearty respect for
the Mayor and Corporation of Exeter, to decline being
present at a festive gathering in celebration of this event."
The Duke of Somerset, Lord Lieutenant of the county of
Devon, and Sir Lawrence Palk, Bart., M.P., have also de-
clined to attend the thsciiner. The Duke declines on the
grounds that he regards the reception as a city, rather than
a county, reception.