The Sun.
London, England, 1857-07-21 00:00:00

BANKING BILL:

On the motion that the liousegoint:o 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 banks, based upon the principle
of limited liability, but in the present state of the house
he appealed to his lion. friend the Vice-President of
the Board of Trade not to press forward the bill at
a morning sitting. He doubted much if there were
sufficient members present to constitute a house legally,
and a■ 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 bill 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 importlince to
the commercial community that he could not consent to
postpone the progress of the measure for a single day.
The hon. member, if be thought proper, could bring for-
ward his amendment upon the bringing up of the report.
After a few words from Mr. GLYN,
The house went into committee on the bill.

Clause 1 was agreed to.
On clause 2 being read,
_ _ ____ . _ _ _ _

Mr. HEADLAg 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
up_ s the principle of limited liability. The hon. mem-
ber basing complained of being compelled to proceed
with his amendment in so thin a house, proceeded to
explain that some time ago 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 that 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-
limited 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
was
possessing a
character
itTedhe.libaubislity,
s transacted business
of the same nature, and it sometimes happened the whole
e which
purelyth e r e
fictitious. was
unlimited
capital was frittered, and cases had occurred in which,
he was sorry to say, it had been traced into the bands
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
[LEFT brEAKING.]