Over-speculation
During the prevalence of a speculative mania there is not one person in ten among the English public that can be induced to weigh any arguments or facts that run counter to their fancies; but by the small proportion capable of giving heed, the following résumé of British banking experience during the twelve years from 1846 to 1857 will be considered valuable.
In 1858 an interesting paper was published by Messrs. Waterlow and Sons, under the ominous title of British Losses by Bank Failures, and extending from 1820 to 1857. In the great mania for the establishment of new banks, it may not be out of place to call attention to the general facts proved in this document. Omitting, then, the years previous to 1846, which may perhaps be considered to be out of date, and taking the twelve years from 1846 to 1857 inclusive, it appears that the liabilities of the private banks which suspended payment amounted to 6,700,000l., and those of the joint-stock banks to 40,800,000l., making a grand total of 47,500,000l. To this, moreover, must be added another 1,500,000l. for some banks, the liabilities of which are not mentioned.