DAYS OF TRIAL 303 



all the companies that had got a start. They were rushed by the 

 public with avidity, at high premiums, and in several oases were 

 applied for three times over. More than once accommodating pro- 

 moters promptly increased the nominal capital to meet these unex- 

 pected demands. This mad business reached its climax by the 

 middle of 1888. Between the 12th of May and the 14th of June 

 in that year sixteen land companies, fourteen trading companies, 

 three coal and copper mining companies and three banks, in all 

 thirty-six companies, issued their prospectuses, with an aggregate 

 subscribed capital of 3,750,000, of which 1,550,000 was called up ! 

 In addition new capital was called up within the same period total- 

 ling 1,160,000, and carrying a further liability of 660,000. In 

 round figures it meant that apart altogether from the enormous 

 existing obligations, the public further undertook in one month to 

 provide 2,700,000 hi cash and to carry a responsibility of quite as 

 much more in the shape of callable capital. To those who could 

 afford time to think, and were able to estimate the population, this 

 must have indicated how widespread and deep-seated was the pre- 

 vailing aberration. 



It is worth calling to mind that these visionary schemes of 

 wealth took on an air of reality and encouragement from the fact 

 that instead of evoking condemnation from the colony's chief creditor, 

 they aroused a responsive echo in Great Britain. "The sweet 

 simplicity of the 3 per cents." was for a tune overshadowed by the 

 magnificent returns, said to be so easily obtained in Australia. Not 

 content with pouring their money like water into the coffers of the 

 local concerns, the British capitalists yearned to have a venture or 

 two of their own. In June, 1887, it was cabled that " The Australian 

 Town and Country Land and Mortgage Company " had been 

 formed in London with a capital of 1,000,000. A little later " The 

 London and Australian Trust Company," also with a capital of 

 1,000,000, blossomed into being, and captured the Agent-General 

 of New South Wales for its chairman. Again, in 1889, it was cabled 

 that a new bank for Australia was in course of promotion, with 

 2,000,000 of capital, to which Messrs. Baring Bros, had agreed to 

 stand as sponsors, if they approved of the Directors. Probably 

 they were too near a climax in their own affairs to give sufficient 



