The Sun.
London, England, 1857-12-19 00:00:00

COMMERCIAL FAILURES.

(From the limes' City Article.)
A week ago an estimate was made in Parliament
that the liabilities of the houses which have failed
during the recent crisis make an aggregate of
45,000,0001. sterling—this being at least double
the total reached in 1847. It may be doubted
if the figures for 1847 would not be found to
have amounted to more than 22i millions, but
there can be no question that on the present
occasion their magnitude is much beyond any-
thing attained at any previous period. Subjoined
is a list of the principal suspensions announced
in Loudon since the beginning of October, when
the pressure first decidedly commenced. Only
a rough conjecture can be formed as to the
total they represent, since in many instances the
balance-sheets remain yet to be produced, but 15 or
1t millions may be taken as the lowest sum. The
failures in the provinces, of course, cannot be esti-
mated with an approach to precision, but, as the
debts of five banks alone amount to about 23 mil-
lions (the Western Bank of Scotland 8,911,9321.,
the Northumberland and D urham about 3,000-0001.,
the Liverpool Borough about 4,000,0001., the Wol-
verhampton and Staffordshire, 1,000,000 k, and the
City of Glasgow, 6,000,0001.), it is evident that 35
millions would be a very moderate computation for
this part of the question. The grand estimate is
thus raised to 50,000,0001., and with this before
them Parliament and the public are bound to use
every effort to probe the causes of the evil.. With
the constant extension of activity peculiar to all
commercial countries, it is plain if the same causes
continue to operate the new revulsion which will be
due in 1.867 will as much exceed that of the present
year as this exceeds what was witnessed in 1847.
At the same time the fact must be recognised that,
according to the opinion of Parliament, the ele-
ments of mischief actually in operation are but
faintly represented even in the totals now given.
The doctrine is that by the prohibitions and pre-
cautions enforced by the Legislature to prevent
the mercantile classes from exercising in banking
affairs their own independent judgment an immense
amount of disaster is averted. Indeed, upon no
other plea could the French system be tolerated for
a moment in any branch of business in England.
If under this paternal care we have suffered to the
extent of 50 milliona, what =not be the opinion of
these who uphold that system as to the total that
would have been exhibited if our traders, instead
of being taught to rely upon Government vigilance,
had been left to the free exercise of their own ? It
must be such as would far transcend allordinary con-
' ceptions. The discredit to their sagacity, therefore,
will be proportionably great if our legislators are
unable clearly to trace and expose the baleful influ-
ences that have been at work. Out of doors a few
persons venture to ask whether the vaunted remedy
may not, in fact, constitute the root of the dis-
ease, and if it would be very rash, after having
witnessed throughout the present generation the
things that take place under the Parli tmentary
guidance of banking business, to try the experiment
of leaving it to its natural course. In that case,
however, their functions as regards the concet ns of
trade would be limited to the simple duty of pro-
viding inexpensive means by which, while tueu
were left to make such mutual contracts as they
might deem best, every one attempting to falsify or
break such contracts might be dealt with according
to his deserts. It is much more pleasant to fancy it
possible to "control" or " regulate" trade. Any
man who can persuade himself, especially in a coun-
try like Great Britain, that he is called to take part
in such an operation must be conscious of immense
self-importance, and, as a general rule, neither
Ministers, members of Parliament, nor any other
of the existing race of human beings, are prone to
surrender the delusion of imaginary power
Ross, Mitchell, and Co.
W. H. Brand and Co.

47,609
6 1,263