No. XXX.] APPENDIX. 355 



The indebtedness of the Agra Bank, the Bank of London, or the 

 Consolidated Bank, would probably command an immediate price of 

 50 or 60 per cent., whilst that of other companies would not sell for more 

 than 20 or 30 per cent. 



I hear in all directions that this scheme may save hundreds of respect- 

 able persons who have deposits now locked up in the Agra and other large 

 banking establishments, so that the question is one which demands atten- 

 tion and immediate action. 



(Signed) ALFRED SMEE. 



From the ' Morning Advertiser, 9 June 12, 1866. 



SIR, My proposal to issue certificates of indebtedness to bearer for 

 money locked up in companies under liquidation appears to meet with 

 general approval, and it needs but parliamentary action to save creditors 

 now suffering from an inability to meet present requirements. 



These certificates would be useful under the three states which 

 liquidating companies present: firstly, when there are assets sufficient 

 to meet eventually the liabilities ; secondly, when the assets are ultimately 

 sufficient by making calls upon the shareholders ; and thirdly, when the 

 assets are insufficient even after exhausting the subscribed capital. 



When the assets equal the debts, the certificates would not only be 

 marketable instruments, but debtors could terminate their obligations by 

 purchasing them and paying them in as cash to the liquidator. 



For every 100 thus paid in 200 of transactions would be settled, and 

 thus the company would rapidly liquidate itself. 



It must be borne in mind that with liquidating banks debtors are 

 often great sufferers, from being suddenly compelled to pay an amount for 

 which, under any fair probability, time would be allowed. 



When calls upon shareholders are required, the certificate holders 

 would not only obtain a portion of their debt much sooner, and thus in 

 many cases be saved from ruin ; but the shareholders, by paying money 

 down, would lose a less amount, and in some cases be themselves saved 

 from ruin. 



When the total assets of the company are insufficient, a difficulty 

 apparently presents itself, but even here the certificates would be of 

 utility, as they might be used in payment of calls and debts, by which the 

 extent of the transactions would be narrowed every day ; and should the 

 certificates be ultimately found to be worth only 10s. instead of 1, the 

 parties paying the certificates as cash would be called upon to pay the 

 difference. 



Certificates of indebtedness might properly be called notes of liqui- 

 dation, and like bank-notes every one issued should be numbered, to confer 

 an individuality upon it, registered, and finally cancelled. A fee of 5s. for 

 stamping and registration would surely not be grudged, from the benefit 

 which would be conferred on all parties subject to the present terrible 

 process of liquidation, where creditors and debtors are alike sacrificed for 

 the benefit of accountants and lawyers. 



(Signed) ALFRED SMEE. 



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