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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

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    J < &fr $ mk Bank ** , III

• Citation
  • 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/