The Providence news. (Providence [R.I.]) 1891-1906, 1895-11-29
abandoned

On par With the South Sea bubble and
the Kaifir craze was the financial scheme
so widely ruinous to confiding investors
operated by Jabez Bgrlfour. The losers
through the collapse of his companies
were literally to be numbered by hundreds
OF thousands. These werc largely the
very people who could least afford to lose
widows and orphans and aged people of
small means They had been induced to
invest because "Mr. Balfour was such
good mani"
His father and mother had been temper
ance lecturers He was n temperance
lecturer. He was leader in church af-
fairs. He looked with the strongest dis
approval upon thcntcrs, music halls,
cards, dancing and all sueh worldly
things. lie vas. moreover, u mcmbcr Of
the house of commons. where he was one
of the most enthusiastic followers of Mr..
Gladstone, one OF the stanchcst champions
of home rule and one Of the stprncst re-
provcrs Of the house OF lords for It's plutoc-
racy and its contempt for the common
people.
Strange as IL may appear, he laid the
foundation OF his colossal scheme upon
the ruins OF varions similar scheme. that
had ended in disaster.
"The Liberator," his chief concern, was
built upon the ruins OF tho Alliance Ma
tional Land. Building and Investment
society, and the States bank and number
of other allied concerns known us the Al.
lance group.
Appealed TO Religions Societies.
The basis OF the organization was ex-
pressed ia tho Latin motto: "Llhera
sedcs liberum facit''--a free home makes a
free man. It's name WAS success; hun
dreds OF ongrcgat'onalists were attracted
by its prospectus, and an appeal was made
to Nonconformist ministers ana others
connected with temperance and religious
societies oil over the land 20 prom tic its
beneflcent objects. In 1875 another asso-
ciations was hitchcd. tho Lands Allot-
ment company" with practically tie
same directorate and Jaboz Spencer Ral-
four as the controlling genius.
From this period onward thero was n
regular succession of new companies. In
most OF these concerns thcro WAS a re,,u-
larly paid dividend Of per cent 10 The
shareholders and per cent to dcpostors.
The recklcssncss OF the financing was
never SURPASSED. Balfour discovered a
progressive builder named Hobbs. Such
large amounts Were advanced 10 Hobbs
that when he failed his concern was in.
debtcd to the Liberator to tho extent OF
$40, 495 900.
Apart from these transactions, "the
Balfour group were flnaAcing properties
OF a more or less speculative character all
over the country. Though disastcr fol-
lowed these concerns from 1rst TO last.
dividends were always found in the new
subscriptions and deposits. and directors
remuneration never failed The total
amount of ruin Brought upon investors
through the fnal crash may bc reekoued
thus:
Liberator society, stockholders. g., ,305.-
8o5. and dcpositors s. 2jl, 400; Lands All.
lotmont company, capital subscribed
50, S3l ,050; House and Lands trust, stock.
holders, s360,725 and Gopositors, s1906-
'25; Building Securities company. capital
subscribed, 81, 3iS,G75. and Hobbs a. Co.,
capital subscribed, SJO5,slO.
These aggregate $50, 2s9, 40. colossal
sum. But there are various other items
which, II added. would bring IL up Ia
nearly or quite $35, 600, 600.