Note 14 — Chapter VII

Note 14. Page 307.

The system of joint-stock companies' speculation, as described in the foregoing and subsequent pages of the text, so far from being an exaggeration, falls far short of a complete illustration of the stupendous scale of swindling which has, during the last ten or fifteen years, been tolerated in this great commercial country. At length, however, in the year 1844, the legislature has struck a blow calculated to demolish the whole fabric, or, at all events, prevent any similar erection. By statute 7 and 8 Vict. c. 110, entitled, "An Act for the Registration, Incorporation, and Regulation of Joint-stock Companies," passed on the 5th Sept. 1844; and by act 7 and 8 Vict. c. 111, entitled, "An Act for facilitating the winding up the affairs of Joint-stock Companies, unable to meet their engagements," passed on the same day—such restrictions are placed upon fraud and improvidence, as are calculated to paralyze much of their powers of practising upon public credulity. Publicity and responsibility are two objects which are effectually attained by the combined operation of these acts, which are masterpieces of commercial legislation.