354 APPENDIX. 



No. XXX. 

 LOCKED-UP MONEY. 



From the ' Standard,' June 6, 1866. 



SIR, Permit me to call your attention to a practical remedy for tlie 

 great inconvenience which the public now suffer from large sums of money 

 being locked up in monetary companies now under liquidation. At the 

 present time persons are distressed, not so much from having lost some of 

 their money, as from having been suddenly deprived of the use of all their 

 available cash, although, perhaps, only for a time. On Saturday nights 

 masters cannot pay their workpeople, and even private individuals are 

 placed in an awkward position from their inability to command a single 

 shilling. This difficulty might be easily met by the liquidator granting to 

 the creditor, on his releasing his debt, a certificate of indebtedness, payable 

 to bearer, or, where the sum is large, a number of certificates represent- 

 ing the total amount. These certificates would doubtless be immediately 

 marketable at a price, and also available as a security. Debtors to the 

 estates, and shareholders having calls to pay, would be glad to purchase 

 these certificates to extinguish their liabilities, and thus the company 

 would gradually liquidate itself. Perhaps an order in Chancery would 

 suffice to carry out this recommendation, or, failing that, a short Act of 

 Parliament might be obtained to enforce it. 



(Signed) ALFRED SMEE. 



PROPOSED FORM OF CERTIFICATE. 



Overend, Gurney, and Co. in liquidation. 



This is to certify that Messrs. Overend, Gurney, & Co. 

 (Limited), in liquidation, is indebted to bearer 100. 



(Signed) , Liquidator. 



From the ' Standard,' June 12, 1866. 



SIR, In my letter recommending that certificates of indebtedness to 

 bearer should be immediately issued by liquidators of the banks and 

 companies, where so many companies are now locked up, I omitted to 

 point out that the certificate would not place the holder ultimately in a 

 better position than the other creditors, as the bearer would receive the 

 same dividends under the bankruptcy. 



The advantage of issuing certificates of indebtedness to bearer would 

 consist in the grant of a document to the creditor, which might be readily 

 rendered marketable. 



The highest judicial authority has called my attention to the fact that 

 this scheme requires the sanction of Parliament, but surely Parliament 

 will not withhold an Act which must prove a blessing to many, and can 

 inflict an injury on none. 



These certificates of indebtedness would doubtless, as soon as issued, 

 bear a price in the market, according to the estimate of the amount which 

 the estate will realize, and the time in which that realization will be 

 effected. 



