Lords Sitting of 25 March 1825

EQUITABLE LOAN BILL—JOINT-STOCK COMPANIES.
The Earl of Lauderdalepresented sundry petitions against the Equitable-Loan Bill. After which, the noble lord said, that when the noble lord who was to move the second reading of the bill, should do so, he should move their lordships that these petitioners be heard by counsel at their lordships' bar, against the principle of the bill; and he thought he should then be able to make out such a case, that their lordships could not refuse to grant the prayer of the petition. He would not then enter into any observations on the fury for Joint-Stock Companies which has taken possession of the people. But, in dealing with the present bill, their lordships would have to consider, not only this measure but in what way they should stem the torrent for speculation, which bid fair to do more mischief in this time of peace than he ever recollected. He would ask their lordships to consider, what might be the consequence to the country, and to the persons involved in those speculations, if a war were to break out? There were at present placed at the command of the directors and other managers of Joint-Stock Companies, more than 200,000,000 l; one-fourth of which, he believed, was more than the minister had raised by loan, at once, during any year of the late war.
The Earl of Liverpoolwished to take that opportunity of saying a few words on the subject which had just been alluded to, not, however, with reference to this particular bill, or any measure of the kind. In a country like this, where extensive commercial interests were constantly at work, a great degree of speculation was unavoidable, and, if kept within certain limits, this spirit of speculation was attended with much advantage to the country. In a moment like the present, in a time of profound peace, and when the interest of money was low, it was to be expected that speculation would exist in a very considerable degree. To this he had no objection; but he wished that the

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public should be set to rights as to the situation in which they stood. He never knew a moment when there was a greater prospect of lasting peace than the present; but still, no man could answer for events. No man could say how long that peace might last. Now, he would ask any man to reflect what would be the situation of the public, if (not to speak of actual war) any thing short of war—any embarrassing event, were to occur? Their lordships would recollect that, when commercial embarrassments occurred during the late war, bankers and merchants came forward and applied to parliament for aid, which they obtained by issues of Exchequer bills. He wished it, however, to be clearly understood, that those persons who now engaged in Joint-Stock Companies, or other enterprises, entered on those speculations at their peril and risk. He thought it his duty to declare, that he never would advise the introduction of any bill for their relief; on the contrary, if such a measure were proposed, he would oppose it, and he hoped that parliament would resist any measure of the kind. He thought that this determination could not be too well understood at the present moment, nor made too publicly known. He had felt himself particularly called on to make this declaration, because he understood that the speculations were not confined to this metropolis, where people might have a better opportunity of judging for themselves, but that endeavours were making, by means of country bankers, to engage persons in the country to embark in speculation, the object of which they could not know. He would be one of the last men ever to interfere, by legislative provisions, with the property of individuals, or to endeavour, by any means, to prevent men from spending their own money as they pleased. But as the consequences of the present extensive speculations might be so serious, he had thought, filling the situation which he did, that he should not discharge his duty, if he did not give that warning, and say, that he should be found, in common with their lordships, determined not to give relief, or listen to any claims made on account of distress, arising from such sort of speculations. In stating his opinion, it was in reference to no particular measure, but to that general spirit of speculation which was going beyond all bounds, and was likely to bring the greatest mischief on numerous individuals.
The Lord Chancellorsaid, that he ought
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to apologize, if he might so express himself, for not having brought in the bill of which he had formerly given notice, relative to Joint Stock Companies: but, parties had come before him while he was exercising his judicial duties, and he did not think it right to be declaring the law in that House, while he had to give judgment in another place. He had been employed, since September last, in hearing persons engaged in speculation, who had been quarrelling among themselves. A noble lord near him had, for the last two days, witnessed the proceedings in the court of Chancery. From what had taken place, it would appear, that these parties had enough to fear from the state of the law as it now stood; to say nothing of any new act. They could not be aware of the extent of the danger in which they were placed.