The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-11-25
Outlets to British Capital

From the London Times Nov.
The prospect that the steady increase in the bull
lion of the Bank may continue for a heightened
period Is regarded in the city as giving additio nal
urgency TO the question Of the law Of partnership
With consols already approaching par, II Is evident
on for several months, some new outlet will be
forced II s equally evident, from the condition OF
Europe, that that new outlet must be found either
at home, in the colonies, or in the United States.
Whether each shall enjoy its healthy proportion
will depend much upon the boldness and prompti-
tude OF our commercial legislation. No one can
have mixed in business during tho last four
years, without arriving at the conviction that
the day Of Joint stock companies, under their
old form, is at n end, and consequently that
If capital is to be diffused and employed at
home, 1t must he under some new conditions.
ceived deathblow. Sardinia and Denmark are,
perhaps, the only two borrowing States in Europe
that could now raise even small amounts In our
markets, and these have already been supplied to
the extent their resources warrant. Austria and
France indicate respectively an annual want OF
about 5000, 0O0t sterling; but II has been demon
sated that although IL the present state Of things
in those countries Is to continue, the money must
be raised In manner, IL will be impossible for
the smallest fraction Of it to be obtained here.
The fate OF the recent proposals connected with the
Western Railway OF France shows that as regard
public works in that country the prospect Is the
same, aud that hence the scheme for the Lyons
and Avisnon line, which is to be Of the earliest
measures before the Assembly, will fail TO derive
any support from this side Thus, while enter.
prise az home is checked by the state OF the law,
IL Is shut out from the entire continent By politi-
cal causes. AS regards the colonies, the Cape can
afford no field while IL Is the scene OF war, aud
capitalists win not venture their money In Aus
tralia when they must wait eight months to hear
even Of its arrival In India, government In
reference and supervision 10 inconsistent with
the possibility Of commercial progress, and
Canada can never comp etc, on q large scale, with
the attractions Of her immediate neighbors Under
ri a. Ia lasr hat nhant a
external rush Of capital takes place, IL will be TO
the United States. Indeed for the past Eve year,,
the value OF money in the two countries has been
Sc disproportioned that all who were conversant
with the opportunities that presented themselves
were surprised the natural course Of operations
which was sure, sooner or later, TO bring ab,ut a
nearer adjustment Of the rates, 80 long delayed
A knowledge Of the way in which our partnership
law operates to discourage individual enterprise
and TO dam up capital till Il breaks all bounds In
sympathetic mania, is sufficient, however, TO sx-
plain the anomaly. There is no reason why the
rewards Of enterprise should not be almost as
would become 90 II capital were equally free. That
the undertakings which have been carried forward
in the various states fori the past Eve years. have
yielded high rewards which have had nothing 10 do
with any artificial excitement, has been proved by
the fact OF the rate Of money during the whole time
having ranged from to II per cent, period Of
scme months having, moreover, just been passed
with safety, in which il was as high as from IL to
- per cent With the growing intercourse be-
tween the two countries IL will be impossible that
such disparity can much longer continue The
thing TO be desired, however, Is that enterprise
should be 80 facilitated ia England az TO render il
worth while TO pay high rates fer money here in
place Of letting the equalization be effected by a
sudden drain TO TO the other side There are IL is
true, abundant openings in the United states in
which English capital might, in moderate supplies,
be constantly employed, and still more numerous
are the projects In VII ch union Of the two nations
would be advantageous; but violent and inds-
eliminate OutrourHg is ruinous alike 10 both,
since IL corfupts the one and engages the her by
all The conse quent loss Whether this result which
pas witnessed In 1889, Is again 10 be seen few
years hence, must. therefore, very much depend
upon The coarse Of legislation meanwhile but, n
such should be the case It il 20 be hoped when We
experience lie Inconvenience we shall be sufficient
lyjust 70 bear in mind that The rcproach at own
doors will be heavier iEan aryWe can be entitled 10
throw elsewhere.