The Sun.
London, England, 1857-07-22 00:00:00

BANDING BILL.

On the motion that the house go into committee,
Mr. HEADLAM said he had a very important mo-
tion on the paper respecting this bill, it was to
move an amendment to provide for the formation
of joint-stock bank, based , upon the principle
of limited liability, but in the present state of the house
be appealed to his hon. friend the Vice-President of
the Board of Trade not to press forward the b)11 at
A morning sitting. He doubted much if there were
sufficient members present to constitute a house legally,
And as the measure was one that would require the
greatest attention he hoped that the committee would
be postponed until a future day.
Mr. HADFIELD thought the best course to pur-
sue was to withdraw the bill altogether for the present
session.

Mr. LOWE reminded the house that the bi l was to
establish a system of winding-up, in place of that which
bad proved to be so disastrous in the case of the Royal
British Bank. The subject was of such importance to
the commercial community that he could not consent to
postpone the progress of the measure for a single day. ,
The boo. member, if he thought proper, could bring for-
ward his amendment upon the bringing up of the report.
After a few words from Mr. GLTN,
The house went into committee on the bill.
Clause 1 was agreed to.
On clause 2 being read,
Mr. HEADLAM moved the omission of certain words
at the end of the clause, for the purpose of introducing
words to provide for the formation of Joint-Stock Banks
upon the principle of limited liability. The hon. mem-
ber having complained of being compelled to proceed
with his amendment in so thin a house, proceeded to
explain that some time ego he had to investigate the case
of several Joint-Stock Banks in the north of England ;
the result was, that he became thoroughly conscious
that the principle of unlimited liability, as applied to
Joint-Stock Banks, was attended with very great evils,
and it was to put an end to such anomalies as he then
discovered that the present amendment was proposed.
Having entered into a statement of the evils of unlimited
liability, the honourable member said he believed that
the direct tendency of the present law was to lower the
character of the shareholders in such companies. Un-
limised liability prevented the establishment of joint-
stock banks, for but few gentlemen would be found
disposed to enter into a concern by which they ren-
dered themselves liable for every shilling of the liabi-
lities of the company. He looked upon joint-stock banks,
in which there was unlimited liability, as possessing a
character purely fictitious. The business transacted was
of the same nature, and it sometimes happened the whole
capital was frittered, and cases had occurred in which,
he was sorry to say, it had been traced into the hands
of the directors. He maintained that the existing sys-
tem did not work well, on the contrary, he thought it
was impossible to exaggerate the evils it occasioned ;
bearing out this view of the case he need only point to
the Tipperary Bank—(hear, hear)—as an illustration of
the bad effects of the system, and then again the Royal
British Bank, at the constitution of which it was said to
be based upon limited liability, but the shareholders had
found to their cost that it was not so, but on the con-
trary, they were liable for the debts of that bank to their
last farthing. If his amendment was agreed to cases
similar to those he had mentioned could not occur.
Mr. BERNARD Raid, as a very large shareholder in
certain joint stock banks, he gave his cordial support to
the amendment of the gentleman opposite. The un-
limited liability principle had proved to be erroneous by
the failure of the Royal British Bank.
Mr. HASTIE thought the principle of limited liability
was most dangerous, and he looked upon a person enter-
ing into one of these company's as one playing with
iaded dice. It allured parties to speculate to the extent
of 20,000/, although only possessed of capital to half
that amount. Ile looked upon Vie limited liability
system as one which will prove most disastrous to the
trade and commerce of the country. The hon. member
for Newcastle bad totally failed to prove the superiority
of the limited liability principle, and therefore he trusted
the house would refuse to adopt the amendment.

Mr. GLYN regretted that the hon. member for New.
castle bad thought it Hs duty to bring forward this
amendment at a morning sitting. The limited liability
principle, during the time it bad been in operation, bad
not had a fair trial, owing to the state of the money
market. He thought the present was not the best time
for bringing forward the amendment, and that it would
be much better to leave the subject in the hands of the
Government, in order that next session a measure might
be brought forward which would meet the views of a'l
parties.
Mr. SHERIDAN said he should support the amend-
ment of the hon, member for Newcastle. He thought
the liability of shareholders should be fixed at three
times the amount of their holding.. If such a plan was
adopted be thought loss would scarcely ever occur in
case of the failure of the concern.

Mr. BItISCOE opposed the amendment. He con-
sidered the limited liability principle to be a total failure.
In the yecr 1837 no less than 600 banks en the limited
principle failed in America.
Mr. BUCHANAN opposed the amendment. He
thought the moat reckless set of trustees were th,ee
who transacted their business on the limited liability
principle.
Mr. RIDLEY said he was not yet certain that the
principle of limited liability could with safety be adopted,
and for these reasons he could not support the amend-
ment of his lion, coleague.
Sir J. GRAHAM said be thought ucder all the cir-
cumstances', the state of the house, and a committee now
sitting on banking upstairs which was examining the most
important questions, it wenn be unfortunate fix tie
bon. member for Nea ca All even to push this amend.
ment to a division. He thought it intxdedient that the
Government should be csllel upon to express an opinion
upon the sul-j,ct at that time, and he therefore again
appealed to the hon. gentleman to withdraw his amend-
ment.

Mr. LOWE thought the rigbthon. baronet, the mem•
ber for Carlisle, had given the house good advice, and
be hoped the hon. gentleman would assent to his pro-
position.
Mr. LIEA.DLA.D.I said after the remarks he had just
heard be should not trouble the committee to divide.
The amendment was then negatived without adivision.
Clauses up to 11 svcra agreeSto.
Oa chose 12 being proposed,
Mr. SHERIDAN wished to know why the govern-
ment had fix Id the shares of joint sto.:k banks at 10,:1.
each. He thought such a determination wal most .x-
-traordinary ; as be could not see why 10 shareholder,
of 101. were not as good as one shareholder of 02.0 larger
suns.

Mr. LOWE said there was strong reason why the
sbares should be fixed at 1001. The existing law fixed
the amount at 100/, and as this act was to supersede that
law that rum hal been retained. His object in fixing
upon that amount for this bill was for the convenience
of maculating, supposing the limited liability principle
was ext-ndel to joint,stock banks, the value of each
member's share.

Mr. SHERIDAN said he did not feel satisfied with
the explanation, and he ehould therefore wove that the
snares be fix di at 101.

Mr. FIfZitOY said it was not competent for the hon.
memb,r t move the amendment. The question was
that the clause stand part of the. bill, therefore no
amendment could be put.
The clause was agreed to, a 3 were the remaining
clauses of the till.

LOAN SOCIETIES BILL.
This bill wag reari a thir I tiu,e passed.
COMMONS ENCLOSURE BILL.
This bill wag read a third time and passed.
BOUNDARIES OF LAND.

This bill waA also read a third time and passed.
PUBLIC WORKS (IRELAND) BILL.

This bill %was read a third time awl passed.
LAND AND ASSESSED
_TAXES (SCOTLAND)

BILL.
This bill was read a third time and passed.
PUBLIC HEALTH (ALDERSHOT) BILL.

Tbis bill Was also read a third time and pacsed.
BANKRUPTCY AND INSOLVENCY (IRE.
LAND) BILL,

The arnendments on this bill were considered and
agreed to.

MALDON ELECTION.

Sir J. TROLLOPE brought up the report of the
committee appointed to try the merits of a petition
against the return of tae sitting members for the borough
of Malden. The report stated that Thomas Sutton
Western, Esq., and John Bramley Moore, Esq , ha
been duly elected. That bribes were offered by an elec.
for named John Riley, bat it was not proved to hare
been done with the cognizance of the sitting member or
Isis agents, and that the petition against the return of J.
B. Moore, Esq., was frivolous and vexatious, baying been
prevented for the purpose of inducing the withdrawal of
the petition against the other sitting member.
The sitting of the house was suspended.
The Sretexen resumed the chair at six o'clock.
LISBURN ELECTION.
The SPEAKER informed the house that he had r--
calved a letter from the agents for the petitioners com-
plaining of an undue return for the borough of Lisburn,
stating that it was not their intention to proceed with
the petition.
THE INSPECTOR OF LUNATIC ASYLUMS IN
IRELAN D.
Mr. CAIRNS asked the Chief Secretary for Ireland
whether the statement which had appeared in the public
newspapers, that Dr. Hatchell had been appointed In-
spector of Lunatic Asylums in Ireland was correct • and,
if so, whether Dr. Hatchell had had any, and what
ex-
perience, in the management of lunatic asylums, or in
the treatment of the insane
Mr. H. A. HERBERT replied tha. statementctheorrect.
That
haast
to Dr. Hatchell't appointirent was quite
gentleman never ha.d any connexion with a lunaticaosdye.
lum, but he had been professionally employed in a mode
which frequently brought him into communication with
lunatics.
COMMUNICATION BETWEEN DUBLIN AND
• LONDON.
Mr. REPTON asked the Secretary to the Treasury,
if the Government bad finally settled the arrangement
for an improved communication between London and
Dublin, and whether he would have any objection to lay
the minute on the table
Mr. WILSON said that in consequence of the ab-
sence of Lord Chandoe, the arrangements had not been
definitively concluded, but would in a few days.
THE SLIGO ELECTION.
Mr. somERS asked the Chief Secretary for Ireland