The Sun.
London, England, 1850-09-03 00:00:00

ettellita4 Int
LONDON, TUESDAY, SEkTEMBER 3, 1850.

Tbe circular of Messrs. JOHN RAILTON and SONS,
the eminent stock and sharebrokers, of Manchester,
(which will be found in another part of this day's im-
pression) will be perused with deep interest by all
holders of railway property. it shows that the tide
which was so long ebbing has at length turned, and
that there is every reason to hope that these im-
portant undertakings have seen their worst days, that
henceforth there will be a gradual improvement,
affording a reasonable expectation of fair, but
moderate remuneration to those who have invested
their capital therein. The extraordinary panic and
depression of the last few years were but the natural
consequences of the mania and extravagant prices
of 1844 and 1845. It was then thought
that •railways constituted a mine of incalculable
wealth, which could not possibly he over-
worked. Fortunes were, in many instances,
realised in a few weeks which would have taken a life
to accumulate. There was no labour, no anxiety;
nothing was required but the friendship of some pro-
vieional committeeman, who could put in a good word
during the distribution of shares. The letter of al-
lotment was issued, and in many instances sold for
hundreds, aye, thousands of pounds, without a single
farthing being required from the fortunate allottee.
Every instance of successful speculation stimulated
new adventurers to enter the Capel-court El Dorado.
The lines in existence or process of construction did
not afford a sufficiently ample field fur those embarked
in pursuit of the Golden Fleece ; every quarter of
the island was ransacked. It was enough to find a
few rowne without direct railway communication.
Ate engineer was sent out to inspect, and in
fewa days a hasty report was returned,
a provisional committee formed, prospectus issued,
shares allotted, and brought out at a considerable
profit in a few clays. In many cases the visit of the
engineer was dispensed with. The promoter only
required a railway map of England, and to draw a
few lines from town to town in order to send forth a
flaming prospectus. Wherever the names were high-
soenelieg, or large towns on the route, two, three, or four
competing companies were in the field, and a fierce con-
test was waged before the Parliamentary Committees.
Nearly 1,400 schemes were registered, which would
have required for payment of the deposits alone
Learly 60,000,0001. sterling, or 600,000,000/. for
their completion. Men wholly without capital, or the
means of paying a single call, fearlessly 'signed sub-
scriptions, undertaking to pay tens of thousands, and
thought that their fortunes were made if they could
scrape suffiCient to pay the deposit.
Swett was the state of f; Ira rs, when in the latter
end of October, 134.5, the first panic in the share
market commenced. Many ill-digested projects were
nipped in the bud. Even the borui fide lines in ac-
tual operation Llt the effect of the shock, and were
quoted at red uce3 prices: There was as great an
anxiety to " get out" as there had formerly been to
" get in," and stock and shares were thrown indis-
criminately on the market, to be sold for anything
they could bring. Still the panic was not as com-
plete as it subsequently became. Many companies
went to Parliament and obtained the necessary
powers, and some have actually been carried out,
notwithstanding the pressure on the money-market.
The commercial crisis of 1847, which depreciated