The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-12-26
English "Financing."
Eronl me 7Ymss.

From the Times.
The published statement of Mr.. J. II. Gurney,
late of the firm OF Overeud, Gurney & Co.
Cimited(, together with the proceedings In the
Court Of Bankruptcy present a significant and
at the same time, deplorable picture OF the
system of English Financing" There is hardly
a sitting of this Court of Bankruptcy in which
there is not presented number OF applica-
tions for the "winding up" OF this or that COM
pany. financially PROSTATE, and unable to carry
on its.operatons any longer. Without troubling
our readers with any details As much that was
of any interest on this side of the water has
already appeared In our columns, we only take
occasion to point out the rottenness to which
English financial corporations have reached
within the last ten years.
That England Is wealthy, perhaps the wealth.
lest country in accumulated capital in the
world no one will or can deny. But the
Management of this capital in its scattered opera
tions, covering the whole globe, is anything but
healthy. The statement of Mr., Gurney that his
house by q few years Of business, under a new
management since 1857, had actually sunk over
four Millions sterling, or over twenty millions
of dollars IN Exceptional operations" :" and that
the partners for a number of years did not
divide the profits of the house, amounting TO
about ndred and ninety thousand pounds,
OF nine hundred thousand dollars, shows to
certainty that this concern was bankrupt as long
ago as 1861. And yet 1t continued to enjoy the
confidence OF the public, and did not blush
undllJ W DclIdy IL OIu6I companies, though
not as prominently known to the financial pub
lic have done no better, and now, when conf
dence is utterly wiped out they all, one after
the other, come to grief, and amplty the records
OF bankruptcy,
We believe that these monster concerns and
private speculative corporations could never
have risen 10 the capacity of doing so much
mischief, had il not been for the huge monetary
monopoly enjoyed by the Bank of England.
There is no greater drawback from which
legitimate commence suffers tn Great Britain
than This very bank. All kinds of ''com-
panies Nimlted)" have the ear and purse.
strings of the Governor and Directors of
the bank at their service, and commercial
enterprise has TO rely upon these Com
panies" as go-betweens for assistance in time of
need. When money Is tight, for some reason or
other, and often for the reason that these very
"Companiesn have tied up large amounts in
speculative movements abroad, and when the
time has cone that the bank ought to succor
the suffering commercial and manufacturing
communities, the bank is the first that shuts
down its gates contracts its discounts raises its
rates OF interest, and thus gives the first show
oil panic. When money Is abundant, when
every boGy that needs it il legitimate transac-
tons has it or can easily get 1t, the bank throws
open its Golfers and distributes it with a lavish
hand among these very Companies" )" while the
lets from this very institution. That the English
people, SO closely welded to free trade in every
thing, should SO long have submitted to this
monopoly, is really subject of wonderment.
1t is not much better in France, though the
Bank of France is managed with great deal
more consideration for the general welfare of
tie mercantile and industrial interests. But
even here large speculative companies have
usurped the place of legitimate combinations OF
capital for one distinct and express purpose.
The Credit Mo6Uier, for instance, is rapidly
coming to grief Its shares, which year ago
commanded a premium OF thousand francs
upon five hundred, are now down to SIX hun
dred and City. We doubt not that France will
| soon experience the same results as England o
| faulty enhancing"