The Sun.
London, England, 1858-04-30 00:00:00

THE SUN,

frigate, and her MAZESIT'S Advocate and Soli-
citor-General were of opinion that the capture
was not illegal, although they were unable
to see any ground whatever upon which the
condemnation as prize can be supported.
Very different, however, were the views of the
Attorney-General, which will carry with them
conviction to every disinterested and unprejudiced
wind. Sir FITZROY KELLY gave it as his " clear
and decided opinion," that even " the capture of
the Cagliari was contrary to the law of nations,"
and he sustained it by a reference to the undis-
puted facts of the case. These facts, as summed
up by the Attorney-General, are as follows, viz.:—
" 1. That at the time of the capture of the Cagliari,
pacific relations subsisted between Sardinia and the Tw'
Sicilies.
" 2. That the Cagliari was a private merchant-vessel,
well known to the captors as belonging, on account of
her occupations, in a marked and special manner to the
Commercial Marine of Sardinia.
" B. That under force and duress she had been com-
pelled to land convicts and rebels upon the Neapolitan
coast.

____
" 4. That at the time of her capture she was neither
de facto nor de jure, piratically employed,
" 5. That she was seized upon the high seas, within
no territorial jurisdiction, after a display of force, and
the menace of a shot fired at her by a ship of war be.
longing to the Kingdom of the Two Sicillies."

And to these facts the unquestionable proposi-
tions of international law laid down by Sir
FITZROY KELLY, are strictly applicable. They

are :

"1. That the merchant vessels of every State on the
high seas are subject to the jurisdiction of the State to
which they belong.
" 'All nations,' says Lord Stowell, a being equal, all
have an equal right to the uninterrupted use of the un •
appropriated parts of the ocean for their navigation. In
places where no local authority exists, where the sub-
jects of all States meet upon a footing of entire equality
andindependence, no one State or any of its subjects,
has a right to assume or exercise authority over the
subjects of another. I can find no authority that gives
the right of interruption to the navigation of Sates
in amity upon the high seas excepting that which the
right of war give to both belligerents against neutrals.'
" 2. That the right of search is, as a general rule,
strictly belligerent in its character, and cannot be exer-
cised in time of peace.
" 3. That the only exception is the case of professed
pirates; that exception being founded on the fact that
pirates are always enemies of every State, and therefore,
are equally subject to the jurisdiction of every Sate.
" 4. That a merchant vessel regularly incorporated in
the marine of a State. does not become a pirate by having
been itself forcibly seized by pirates; nor does she, when
having escaped from pirates, and forthwith return.
ing to her lawfal occupations from which, by force of
arms, she had been temporarily diverted, become liable
to be seized as prize upon the high seas.
" 5. That under circumstances of vehement suspicion
of piracy, the usage of States has allowed, though with
the most jealous reluctance, the right of approach, for
the purpose of ascertaining the national character of the
vessel.
" That if that character be clearly commercial—if the
State to which she belongs be undoubted—if her em-
ployment at the time of so ascertaining her nationalty be
lawful, then a suspicion of past unlawful conduct does
not justify seizure in time of peace, but does justify
application for inquiry to the proper authority and juriz-
diction of the State to which she belongs."
How then can it for a moment be asserted that
the capture was not illegal, and if so, the con-
demnation must be a fortiori perfectly unjustifi-
able.

The treatment of merchant vessels on the high
seas must of course be an object of deep interest
to every maritime nation, and more especially to
Great Britain, whose flag floats over every sea
and ocean. It is therefore incumbent on England
to sustain Sardinia in her just demands. But
before hostilities are resorted to, other steps
should be taken. The good offices of a
friendly Power should be claimed and acted
on. This was a principle clearly re-
cognised at the Conferences of Paris in
1856. A principle to which Count CAVOUR, the
representative, and, fortunately still, the Minister,
of Sardinia, was an assenting party. This was,
therefore, the obvious course ; and this was the
recommendation given by Lord MALMESBURY to
the Sardinian Government. But there is not the
slightest intention either to ei-bontion, Sardinia, or,
when the proper time arrives, to withdraw the
support to which she is justly entitled in her claims
for restitution of the Cagliari, and for full com-
pensation for the illegal conduct of the Neapolitan
Government.

Mr. HEADLAM was, on Wednesday, compelled
to postpone the second reading of his important
bill on the subject of Joint Stock Banking Com-
panies. The protracted discussion on the Agri-
cultural Statistics Bills rendered it impossible tl
hope that any progress could be made on a ques-
tion so interesting to the Banking and Commercial
community. The Honourable and Learned Gen-
tleman acted wisely in adopting the suggestions of
the Chancellor of the Exchequer and the Home
Secretary by fixing the next reading for the 20th
of May, before which time it is intended to give
orders of the day—not Government orders only—
priority over notices of motion. We trust that he
will be rewarded by the ultimate success of the
very valuable measure he has introduced for his
,forbearance.

There is nothing so conducive to the welfare
and prosperity of the industrious classes as well
regulated banking facilities. It was the legiti.
mate use of credit that placed Great Britain in the
proud position which she long since attained, and
enabled the tax-paying community to endure the
enormous burdens by which they have been
oppressed. Without that credit we should long
since have sunk in the scale of nations. The pub-
lic establishments would have bsen reduced far
below what was essential, even for defence, and
the dividends on Consols might have been placed
in jeopardy. By its means we have been
enabled to weather the storm, on many trying
ocoasi,ens, and by its means we shall still do so,
if it be not practically annihilated by the panics
produced through the workings of the monetary
code.

The acts of 1844 and '45 conferred a virtual
monopoly on existing establishments, by restrict•
ing all that might subsequently be formed from
issuing their own notes. Free trade in banking
was virtually prohibited, and no adequate meats
were provided for replacing those who might have
succumbed through the deaths of partners, the
withdrawal of capital, or the casualties of trade.
It therefore became essential that additional
inducements should be given to joint-stock under-
takings, constructed on sound principles, and
judiciously and properly managed. But theis
was, and still is, a formidable obstacle in
the way of their success. Every person who
held even a single share was thereby rendered
responsible, in purse and person, to his last acre
and bis last shilling, for the success of the under-
taking. Although men of wealth and respec-
tability would gladly risk a few hun-
dreds, or a few thousands, according to their
means, in a concern calculated to promcti
the welfare and prosperity of the district,
they would not endanger all they posse.,sed, or
subject themselves to even a remote chance of
being reduced from wealth to poverty, and ren-
dered beggars, through the failure of an under-
taking, over the management whereof they had no
adequate or real control. With "limited liabi-
lity," anything that would show then at once the
full extent to which they could be callA ou as
contributors, they would not have hesitated ; but,
however desirous of serving
could the locality, they
perimennot.t be expected to try so perillous an ex-

This feeling has not in any degree been lessened
by recent experience. The Tipperary, the Royal
British, the Borough of Liverpool, and the West-
ern of Scotland Banks, have taught intending

shareholders painful lessons respecting the position
in which they may be placed, and the formidable
nature of the instrument always suspended over
their heads—an instrument more terrible in many
instances than the sword of DAMOCLES, Until
something be done to mitigate the danger, few
will be disposed to try similar experiments ; and,
unless Mr. HEADLA3eS or some similar bill be
carried, we may easily conceive that the extension
of joint-stock banking capital will be virtually
prohibited.

The principle of limited liability has received
legislative sanction. But banking establishments
where it is more urgently required than in any
others, have unfortunately been excluded from
its operation. The cry has been altogether for
" innocent" depositors; but " innocent" share-
holders—men who have had nothing whatever to
say to the management, who invested their money
with the most perfect good fath—who sought no
unfair advantages, are deserving of at least equal
sympathy. Besides, the very notion that men of
known wealth and resources are involved, has
fostered and strengthened that blind confidence,
which has in some instances led to such deplor-
able results. So long as deposi tors knew that
they had only the paid up-capital, with a fair
margin perhaps of equal account, they would in-
quire for themselves as to the proceedings, and
solvency of the concern. But the knowledge that
there were one or two millionaires amongst the
shareholders, dispensed with this salutary cau-
tion, and they went on blindly and recklessly
because some wealthy neighbour, some provincial
CRaisus, should be reduced t) destitution, and
surrender all his property, real or personal, before
they could sustain any serious loss.
Such persons would be willing to contribute
handsomely towards the losses, although not to
give up their all. There are too many instances
where they have become exiles from their country
in consequence of the stringency of the law, and
where consequently those who were grasping at
everything obtained nothing. The evils on both
sides were palpable. They would be averted
by the passing of Mr. HEADLAar's bill, but still
it is strenuously opposed not only by those inte-
rested in maintaining the existing banking mono-
poly, but also by well meaning persons, who can-
not shake off old prejudices, and who are misled
by the speciou s fallacies propounded against it.
We trust that the next discussion will remove
many of the objections, and that notwithstanding
the delays that have occurred, the salutary mat-
ter may yet pass into a law during the present
session, and that Mr. HEA.DLIM may obtain the
complete success which his indefatigable exertions,
and clear and convincing reasonings have so well
merited.