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Note: This text has been automatically extracted via Optical Character Recognition (OCR) software. The text has not been manually corrected and should not be relied on to be an accurate representation of the item.
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Untitled Article
fl $ kfgfe JiSWfnt mtemWe amy be tte property po « tt * ied fey $$ f # § pf $ tiv § partners . Ifq ? haa this been a solitary instance ; fqf one J § in ^ tpck Banking Company has still nmre recently been in the situation to be unable to fulfil its engagement * , and it i $ understood must have suspended payments , had no * th $ Batik of England taken up the affair and afforded relief td \ y $ rd oif the eyil to the public , until the affairs of the Banking Company can be finally wound up .
Mr Clay ' s chief remedy may at first sight appear rather paradoxical , but we believe it will bear the test of examination . | Js proposes that , instead of each shareholder being answerable to the full extent of his property , he should be merely answerable for the amount of his particular share , Coupling this with publicity of the affairs of the Company , would , be conpeive 4 f cause B ^ qking Companies to be formed , which would owe ^ heir solidity to the real capital they embarked and not to t ^ ei ? credit s which , as he justly observes , might be ^ tlrea ^ y twkmr
dently piortgaged individually , without being again mortgaged collectively . No one forms a worse opinion of the solidity of the BstnJk pf Ei ^ g land because each shareholder is merely liable foe His ill * divi $ u $ l share . Yet this is a case in point , for it is precisely c * n that fqupcl ^ tion that it rests ; namely , the amount of p&id * ud cftpitat
TThe ISdi&burgh Review starts the objection \ —If adSQciati ^ Qflf of limited liability are admitted for the purposes of bank ^ ng ^ iyhy not for other commercial purposes ? Mr Clay avpiqf m ^ Qting the full fprce of that , by saying that banking should be an exception ; but really we think lie might have echoed the question—Why not ? Under wise and judicious regulations
we do not see why associations might not be formed for a variety of manufacturing and commercial purposes , limiting the liability of the undertakers to their individual subscriptions . The great mass of consumers might thus participate in the profits of production . The dowager sipping her souchong might ha . ve bet spare four or five hundred pounds employed m cultivating tfcfe plains of China , or in transporting the produce of the Souther ^ elime ^ to the shores of England . Commerce might be dilated
of its aggravated vicissitudes , which plunge individuals and families into sudden ruin ; and gigantic undertakings * for beyoncl the power of individuals or companies , constituted as they now are , might be successfully carried through . From the day of the publication of Mr Clay's speech , a
check was given to the formation of ill-digested companies , the rage for bank shares cooled down from fever heat to temperate , and a more cautious system was introduced by the Managers and Directors of the existing Companies . Mr Clay
Untitled Article
J < &fr $ mk Bank ** , III
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Citation
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Monthly Repository (1806-1838) and Unitarian Chronicle (1832-1833), Feb. 1, 1837, page 111, in the Nineteenth-Century Serials Edition (2008; 2018) ncse.ac.uk/periodicals/mruc/issues/vm2-ncseproduct1828/page/64/
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