SOLVENCY GUARANTEE']). 
 
 gwreft 
 
 BANKERS, MERCHANTS, LANBLORRS, ETC. 
 
 of great'britain , 
 
 THE OUTLINE OF A PLAN 
 
 THE APPLICATION OF ASSURANCE 
 
 DEBTS, BILLS OF .EXCHANGE, . 
 PROMISSORY NOTES, RENT, & MONETARY RISKS 
 OF EVERY DESCRIPTION: 
 
 SUGGESTION FOR THE ECONOMICAL MANAGEMENT OF EM¬ 
 BARRASSED ESTATES, COMBINED WITH THE GUARANTEE 
 OF DIVIDENDS AND COMPOSITIONS THEREON. 
 
 C. S. CANS DELL. 
 
 nnd invested in Rentals .”—Fide page 14. ‘ 
 
 -“The common interest of every Man in Britain."—J tjnivs. 
 
 
 SECOND EDITION. 
 
 LONDON: 
 
 G. MANN, 39, CORNHILL; MITCHELL AND SON, 
 39, CHARING CROSS. 
 
 1850. 
 
 Price Sixpence. 
 
ADVERTISEMENT TO THE SECOND EDITION. 
 
 This Pamphlet has been most favourably received by the Press and 
 the Pubb'c, and the First Edition being exhausted, a re-issue has become 
 necessary—contemplating which re-issue, it was my intention to ma¬ 
 terially enlarge the Appendix, by adding documents confirmatory of the 
 fact upon which some stress is laid in the body of this Address—viz: 
 the actual practice of Debt Insurance in foreign countries. 
 
 I am now, however, persuaded that to increase the bulk of this little 
 work for such a purpose, is neither necessary nor advisable, since, 
 while its circulation has done so much by exciting Public interest upon 
 the subject, and by removing existing doubts and misapprehensions, to 
 smooth the way towards the ultimate realization of mv views, the fact 
 adverted to has not been contested in any quarter. Indeed, to judge 
 from the comments with which my Address has been honored by 
 journals of high standing, as well as from the experience of a personal 
 canvass among some of the leading firms of this metropolis, I am justi¬ 
 fied in considering the principles advanced to be fully acknowledged. 
 
 It now, therefore, only remains by more extended publicity to widen 
 the basis upon which I hope to see my project at length firmly estab¬ 
 lished. The chief impediment still to be overcome, is evidently not 
 want offaithinthe principle, novel as that may be, but rather the oppo¬ 
 sition offered by interests which its complete triumph is likely to affect; 
 for since the appearance of this publication, steps have been taken by 
 other parties indicating extreme readiness to avail themselves, inde¬ 
 pendently, of such parts of my scheme as w ill consist with particular 
 interests. 
 
 c. s. c. 
 
 rAGOz Place, Islimgtom, 
 June 1st , 1850. 
 
 
BANKERS, MERCHANTS, 
 LANDLORDS, Etc. 
 
 OF GREAT BRITAIN. 
 
 GENTLEMEN, 
 
 The importance to national as well as particular 
 interests of the purpose I have in view, is my apology for 
 trespassing upon your attention, 
 
 The objects which I submit to your consideration are, firstly, object, of 
 the application of the principles of Assurance to the Guarantee 
 of Debts, Bills of Exchange, Promissory Notes, Banking 
 Accounts, Bonds, Rent, and Monetary Risks of every descrip¬ 
 tion; and secondly—the establishment of an economical 
 system for the Administration of Bankrupt and Insolvent 
 Estates, combined with the Guarantee of Dividends and Com¬ 
 positions thereon. Considering that the losses resulting from Annual 
 Insolvency of Debtors are estimated for the United Kingdom insolvency, 
 to average annually £65,000,000 Sterling—a sum about equal 
 to the entire Government and Local Taxation of the Country, 
 inclusive of the Interest of the National Debt, it is presumed 
 that no improvement in trading economy can be more deserv¬ 
 ing public attention than that of an Institution for the purposes 
 suggested. 
 
 Personal vigilance does not sufiice to protect property from toss-bow 
 the risks in question, any more than from other casualties 
 affecting it, and hence the importance of enquiring whether 
 
6 
 
 such risks may not be annulled by an adoption of the principles 
 of Assurance. 
 
 General With the nature of those principles in general I presume 
 Aasurance.° f that few persons are unacquainted, and all can easily conceive 
 that the destruction of a Manufactory, or the loss of a Ship, are 
 either of them a calamity ruinous if it fall upon an individual, 
 but that diffused among many the loss becomes inconsiderable 
 to each, decreasing in proportion to the number interested; and 
 provided statistical data be not wanting, by means whereof 
 the average loss upon any kind of property can be accurately 
 determined, a per cenfage is thus fixed, which, with a certain 
 addition for profit, constitutes the premium, in consideration of 
 which Assurance may be safely undertaken by an Individual or 
 by a Company. 
 
 Appiicabio The principle is applicable to Casualties of every class 
 sebu?l°c. whereof the records are constant and complete. Advantage 
 has been already taken of it to neutralize many kinds of 
 calamity, and I purpose to shew by indisputable evidence, the 
 great importance and propriety of extending the system to 
 the Assurance of Commercial Capital constantly adventured 
 on Credit. 
 
 The announcement of a project for the Assurance of 
 Bankers and Traders against losses by Bad Debts, and of 
 Landlords against loss of Rent, may be received with surprise 
 —by some with incredulity,—but upon unprejudiced investiga¬ 
 tion it will become manifest that my theory is not fallacious, 
 but is based upon calculations perfectly sound, and possesses 
 urgent claims to the attention of the Commercial World. 
 
 Arcrage of The chief obstacle to the reception of this Theory by the 
 determinable general Public will consist in the supposed irregular and 
 indeterminate nature of the events with which it has to deal. 
 It may appear impossible to reduce occurrences apparently so 
 variable, to a predetermined system. But this apparent irregu¬ 
 larity has no existence except upon circumscribed and 
 imperfect observation, Instead of such a partial examination, 
 let a sufficiently extended periodical average be taken, and 
 these variations submit themselves to the laws of probability— 
 the results obtained are uniform. 
 
7 
 
 If we confine ourselves to any single year, the number of Ascertained 
 Insolvencies in any one or any number of Trades must of lyixSS' 
 course exhibit a false proportion, exceeding or falling short of r“d"eib]“o 
 the true average, according as the year taken for example un ‘ f ° rmlly ' 
 may have been prosperous or the reverse; hut as we extend 
 our observations over decennial or longer periods, discrepancies 
 vanish, and returns in themselves anomalous, combine to 
 afford, as I have said, uniform results. 
 
 Upon data so collected Assurance may he soundly based, Affordasoua 
 and while the profit to be realized thereby may be calculated pJSJfmSof 
 beforehand, more readily than is the case in many branches of ssuraucc ' 
 Commerce, the Insurer exempts his adventure from all hazard, 
 and speculation is converted into certain mutual profit. 
 
 It is unnecessary for our purpose to examine into the Causes Trading sta- 
 of Insolvency , remote or proximate; we are only concerned to ject to laws 
 establish, that the Statistics of Trade in this respect form no ty.iiteau ‘ 
 exception to the universal law which has been proved to govern 
 those of Births, Marriages, Deaths, Diseases, Crimes, Ship¬ 
 wrecks, Fires, and other accidents, all of which Statistics it is 
 well known, and many others of less importance, are suscept¬ 
 ible of the nicest calculations, have been reduced to Tabular 
 form, and afford equally proportioned results for equal periods. 
 
 No class of accidents to which this sort of investigation has 
 been applied has hitherto proved an exception to the rule ; 
 we have therefore priina facie reason to conclude, that the 
 evils to which our attention is now directed obey the same law, 
 and are to be obviated by the same means,—the now happily 
 well understood means of Mutual Assurance. 
 
 But, Gentlemen, it is not with mere inference or conjecture The fact 
 that I have proposed to myself to amuse your minds or occupy JStraied! 
 your time; I have laboured for a series of years upon the col¬ 
 lection, collation, and analysis of facls, and have proved to 
 demonstration the correctness of my assumption. From par¬ 
 liamentary returns and other official documents, public records, 
 gazettes, in short, from every attainable source, at the cost of 
 vast toil and some pecuniary expence, I have drawn my mate¬ 
 rials ; and I am at length in a position, not only to establish 
 incontestibly the conclusion to which I have arrived, but like- 
 
8 
 
 wise to furnish all the details requisite to the practical organi¬ 
 zation of the system of Assurance I would set on foot, as applic¬ 
 able to every branch of legitimate trade carried on in this 
 country. 
 
 j£r CT before concluding this part of my subject, permit me to 
 praJusEd adduce some instances from existing practice, whereby my 
 theory of Solvency Assurance receives confirmation;—not that 
 I rest my conviction upon collateral evidence of any kind, but 
 I am sensible that, in seeking to convince the Public, the 
 advantage afforded me by an appeal to your experience as 
 Bankers, Merchants, etc. should not be overlooked. 
 
 BreiS”' 0 ^ le practice is not unknown to Insurance Brokers, who, in 
 consideration of an additional premium, will guarantee the sol¬ 
 vency of an underwriter; but nothing is more common than 
 Prodnco the “ del credere ” of the Produce Broker, who, for an extra 
 
 Broken, ’ 
 
 per centage upon sales, guarantees to his principal the realiza¬ 
 tion of net proceeds at expiration of prompt, or in other words, 
 assures the solvencg of the luyers, whose names in such cases 
 are not declared. In the same way, the Importer or Com- 
 commneoa mission Merchant recharges, and thereby assures his corre¬ 
 spondent. 
 
 •osortEt It is also the custom of some Traders to assure themselves 
 from loss by charging upon all goods sold a certain per cent¬ 
 age, equivalent to the presumed average defalcations of their 
 debtors, opening for this purpose a regular debtor and credi¬ 
 tor account—called perhaps the Bad Debt Account; and, 
 indeed, every enhancement in the price of goods sold on credit, 
 submitted to for credit’s sake, may be regarded as a premium 
 paid to a reserved fund for Self-Assurance. 
 
 BUiDis- In the same position of Self-Assurer stands the Bill Dis¬ 
 counter, who exacts a higher than the current rate of Discount 
 in consideration of unusual risk. 
 
 yucoanUnj This however is not all, for though here perhaps less 
 apSi'raj known,* the practice has all but universally obtained in New 
 Aroriet ^ an( l other American cities of Guaranteeing Bills of 
 
 • Discounting "mlhmit recourse" has of late become more frequent even 
 ir, this country. 
 
9 
 
 Exchange; that is to say, the discounter for a consideration 
 exempts the endorser from liability. This, consideration of 
 course varying according to the character of the bill, as deter¬ 
 mined by the reputation of the other parties to it, is strictly a 
 Premium of Assurance. 
 
 But the principle has attained in European cities to a still insurance of 
 further developement. It is common with continental Bankers 
 not only to Guarantee Bills of Exchange, but also Ordinary SuEn 
 Trade Debts, upon the simplest, or even without any docu- countries, 
 mentary acknowledgement of the debtor; thus carrying out 
 my views to the fattest extent. The last-mentioned facts I 
 have on good authority, for which I refer you to my Appendix. 
 
 Now if all this can be done by individuals, how much more nown 
 advantageously, as regards both profit and safety, may this kind audad 
 of business be transacted by a Company associated for that tran™ ^ 
 object, provided with machinery constructed for the purpose, of a wetl¬ 
 and means of information commensurate with its requirements, company. 
 
 It needs no argument to prove that the system of Self- 
 Assurance adverted to, however it may serve the Trader in 
 ordinary times to equalize his losses, will afford little protec¬ 
 tion in periods of extraordinary depression ; for then, though 
 exposed to extra risk he is forced to cheapen, and will utterly 
 fail him in those tremendous crises or panics which sometimes 
 more or less suddenly overwhelm the Trading Community. 
 
 Nay, the most prudent and sagacious man of business is at any 
 time liable, from misplaced confidence or other unforseen 
 causes, to heavy if not insurmountable loss. Misfortunes of Losses con- 
 tliis nature, it is evident, can only be met by the organization equalized 
 of a Company on the most extensive scale, by whose operations 
 alone the grand object of Equalization can be effectuated, the 
 loss no longer ruinous to the honest and prudent Individual, 
 be spread in an extremely comminuted shape over the Com¬ 
 munity, and the average loss of every Trader reduced to an 
 unalterable limit. Such a Company and such a system once 
 in operation, it is not too much to predict that those convul- anil PaniM 
 sions which from time to time occur with such fatal effect in the pr2Vcnloi ' 
 Mercantile World would, if still within the range of possibility, 
 be suppressed at the outset. 
 
 tm 
 
10 
 
 Who lias not known instances in which the failure of one 
 Commercial Firm, re-acting upon its connections in a con¬ 
 tinually extending circle, has set up a terrible growth of ruin 
 ramifying into every corner of the land ? What means short 
 of those I contemplate could be adequate to stem the pressure 
 of such a calamity, and by bearing the brunt of the first loss 
 prevent the indefinite series which would otherwise follow in 
 its train ? 
 
 I shall not be expected, within the limits of a pamphlet, to 
 expose in detail the system I design to adopt for the practical 
 working out of my scheme, but the following may answer the 
 purpose of illustration. 
 
 To effect a Policy of Insurance upon a plurality of accounts, 
 it will only be necessary for the Assured to deliver to the 
 Company a Schedule of the Names of his Debtors, and the 
 amount of Credit to be grauted to each of them. No further 
 particulars will be required, no inquisitorial powers arrogated 
 on the part of the Company; for its own protection, however, 
 the right must be reserved of rejecting persons unworthy of 
 Credit. This will be obviously no drawback to the general 
 utility of the system, since it will be little to the interest of the 
 Company to exercise such a right, or to discourage Credit, 
 except in cases where it could not under any circumstances be 
 safely afforded. 
 
 The Insurance of Rent is a subject requiring no elucidation; 
 and the Company by charging itself with the collection likewise, 
 will add materially to its profits, and greatly advantage Land¬ 
 lords, to whom the combination of services may be rendered at 
 a rate little exceeding the commission usually paid upon mere 
 collection, to say nothing of the privilege which may be accorded 
 within certain limits of anticipating their Rentals. 
 t Means have been devised, into which it is unnecessary now 
 to euter, of removing all legal and other difficulties, and fur¬ 
 nishing every requisite facility to Insurers of all classes. The 
 difficulties alluded to are wholly of a secondary order, occurring 
 chiefly in matters of form and detail, but that they are greater 
 than usually attend the developement of any new project, 
 especially one of such magnitude, or that they are insur- 
 
-11 
 
 mountable by ordinary sagacity, is a supposition incompatible 
 with the just appreciation of fundamental principles. 
 
 Can it be objected that the cost of Assurance will be an 
 obstacle to its adoption, by reason that the premiums paid 
 must be met by an impost upon goods—thus causing the 
 assured to compete pro tanto at a disadvantage with Non- 
 Insurers? This objection has no value, because the risk of loss, 
 which cannot be altogether evaded, has always entered into the 
 calculations upon which prices are regulated, constituting as 
 I have before said a premium for Self-Assurance. By the 
 Trader, in whose calculations this element is reduced to its 
 lowest term, the extreme of cheapness is most likely to be 
 reached. 
 
 May it be observed, that failures sometimes occur in num- ^ c ^ 5 t '“ a b d ‘I' 
 bers so great, and from causes so uncontroulable, as to defy 
 prevision ? I think I have already shown the fallacy of this ^i^con. 
 argument, Is it to be supposed that more extravagant delusions 
 are yet to shed their baneful influence upon Commerce—that 
 scenes of more extensive ruin are yet before us than those 
 through which we have already passed ? It cannot be! Granted 
 however, that the catastrophes which mark our past history 
 are to have their parallels in times to come ; well, these bygone 
 calamities have all been reviewed and taken into account,— 
 they are part and parcel of the facts upon which my conclu¬ 
 sions are founded. Nevertheless, Gentlemen, if any of you 
 entertain the opinion, from which I presume to differ,—that 
 future periods of national distress may yet surpass and 
 confound all former experience, then permit me to assure you 
 that I have left a margin to the extent of all reasonable appre¬ 
 hensions, that we may take in if needful, and yet not exceed 
 the limits within which Assurance would be resorted to with 
 advantage. I beg you also to bear in mind the tendency with 
 which I have already presumed to invest my system—to break 
 the force of a commercial shock—a property which can 
 scarcely be too highly estimated. 
 
 Some may be disposed to infer, that the sense of absolute 
 security from risk will have the effect of inducing recklessness bs 
 on the part of the Trader. It is however evident that, having 
 
12 
 
 once learned to value the benefits of Assurance, he would 
 rarely put in peril his future participation in those benefits 
 Seif-protect- by such an abuse of them; but should he be so minded, the 
 oMhTcom- right of rejection possessed by the Company must be resorted 
 panj ‘ to in its defence. 
 
 The Company will be guided in the employment of this its 
 necessary power, by an extent and variety of information 
 rapidly accumulating, of which the existing so called “Trade 
 Protection” Societies afford but a limited example. 
 
 Moreover, as a check upon imprudent dealing, I suggest 
 the assuring in all cases no more than the amount actually 
 ventured, and not the assumed loss of profit. All usual dis¬ 
 counts and allowances should likewise therefore be deducted 
 from Claims advanced. But I think (the premiums being 
 calculated to admit the payment of losses in full,) it will be 
 found in practice that any such precaution will be ultimately 
 unnecessary. 
 
 Fraudulent But it is unfortunately true that not to involuntary causes, 
 'r™ S ide°J nor even to improvident conduct and reckless trading is the 
 total number of Insolvencies to be ascribed; it cannot be 
 denied that Fraud in many cases plays an important part. As 
 regards this part of the subject, I may premise, that as Fraud 
 has always existed, so its effects have no more than others been 
 excluded from the review of facts upon which our speculations 
 are based. We have only therefore to take into consideration 
 the possible increase of Fraud, which there is no reason to 
 apprehend, for not only have the efforts of the Legislature of 
 late been more especially directed to the suppression of these 
 offences, but the dishonest Debtor who knows his debt to be 
 covered by an Assurance of the Company, will be consciously 
 exposed to a more active and inevitable prosecution than would 
 perhaps await him at the hands of a private Creditor. 
 
 Fictitious A species of Fraud, however, to which the Company may 
 iidered””" be peculiarly liable, is that of Fictitious Claims , and it becomes 
 really important to examine how far such fabrications by 
 dishonest Insurers be possible, and to what extent the Company 
 will possess power and ability to protect itself against them. 
 
 Tlie Law of Conspiracy, with the severe penalties attached 
 
to it, will of itself operate to l ender such attempts extremely 
 unfrequent: nor would they he more formidable to a Solvency 
 Assurance Company than they actually are, to any extant 
 Fire, Life, Marine, or other Assurance Company, of whom no Assurance 
 one was, is, or ever will he, entirely exempted from attempts HaEo'tL 
 at imposition: judicious caution in granting Assurances, and sai " c frauds ' 
 vigilance in investigating Claims must he the safeguards of our 
 Company, as of others, and would render it hardly possible 
 for such attempts to elude detection. 
 
 Now although we know from judicial proceedings and from 
 the evidence of those connected with Assurance, that Ships are 
 sometimes designedly wrecked and Houses purposely set on 
 fire with intent to defraud, etc.; yet we also know that the 
 precautions adopted, and means taken by the Underwriters and 
 Companies for the detection and punishment of such nefarious 
 acts, deter many from their perpetration, and suffice to prevent 
 the losses which accrue from these and all other causes from 
 exceeding the anticipated average and rendering the general Their safe- 
 business unprofitable. It is a reasonable inference, that if in equally 
 the prosecution of our undertaking the like risks are to be a •■'solvency 
 encountered, the like precautions will be equally successful. company. 
 
 If there be room for doubts as to the completeness and 
 conclusiveness of the data which form the basis of our calcu¬ 
 lations, let it be remembered that neither Marine, Eire, nor 
 Life Assurance were, in their infancy, better provided. Nay, 
 
 I may safely assert, that we have the advantage of statistical which win 
 information ten times more accurate and complete than were at 0?™!?™ 
 its outset available even to the latest of the above-named Insti- auspices 
 tulions. Allow me to remind you of the distrust which beset ed the com- 
 both Fire and Life Assurance at their commencement, and °( f Fi ^ c or 
 much more recently the Fidelity Guarantee System, (all which 
 are now flourishing Institutions,) without seeking for further 
 examples among the many monuments of successful enter- 
 prize which were once regarded as mere chimeras. To confound 
 difficulties with impossibilities is an error which, if indulged, 
 might, have deprived Mankind of many blessings, and doomed 
 to premature extinction the noblest plans for its advancement. 
 
 But for the skill and energy of speculative men, exerted under 
 
14 
 
 circumstances of more or less difficulty and discouragement, 
 how many a problem bearing importantly on the interests 
 and business of life would have remained unsolved. 
 
 Now, if we glance for a moment at the range of objects 
 already embraced by the system of Assurance, we see the Ship 
 and her cargo committed to the perils of wind and wave, the 
 Warehouse with its merchandize, the Dwelling House and 
 its chattels, the Stack, and the Granary, all exposed to the 
 frequent devastations of another element, not to exclude the 
 Growing Crops liable to the destructive effects of hail; we see 
 Man threatened with inroads upon his resources from the 
 ravages of disease among his Cattle—to the paralysation of 
 his industry from its attacks upon his own person; we see him 
 surrounded by dependents, whom his sudden or premature 
 death may leave helpless or defenceless,—nay, not defenceless, 
 for this feature of the evil is obliterated by the same means 
 which in another form protect his possessions. Even from the 
 depredations of unfaithful servants he is efficiently secured, and 
 the employe himself provided with the invaluable advantage of 
 a Guarantee, which it is so difficult to obtain, and so embar¬ 
 rassing to require from the kindness of a Friend. The system 
 however must be regarded as incomplete while it remains 
 unextended to the immense amount of Capital constantly 
 adventured in Trade and invested in Rentals,—equalling if not 
 exceeding in the aggregate all that portion of the Public 
 Wealth to which the science of Assurance has hitherto been 
 applied; and I am thoroughly convinced that so obvious a defi¬ 
 ciency cannot much longer escape attention from the all-impor¬ 
 tant interest which is concerned in supplying it. 
 
 1 trust. Gentlemen, I have made some progress in leading 
 your minds to the same conviction. I have shown, that to 
 Guarantee the Solvency of Traders and Tenants falls within 
 the legitimate province of an Assurance Association, and is one 
 essentially analogous to those which the system already includes; 
 that the plan is not altogether untried, and if it were, that 
 its novelty would form no argument against its practicability. 
 I have shown that sufficient data are at hand upon which 
 to found its operations—that the difficulties attendant thereon 
 
are trivial, and the objections not unanswerable. I need not 
 expatiate on the advantage to the Trader, of a security from 
 risk, which leaves his mind untrammelled by anxiety in the 
 prosecution of his business, nor on the economy which I have 
 endeavoured to illustrate in contrasting my system with that 
 of Self-Assurance; to which I may add the reflection, that avast 
 National Saving must accrue from the avoidance of Law and 
 Bankruptcy Costs, not to mention the improvement on the 
 existing system of realizing and distributing Assets, of which I 
 will say more presently. Permit me however to add a word 
 concerning the morality of Trade, which would appear from 
 recent disclosures to be at a very low ebb, but will be assisted 
 to reach a higher standard by the influence contemplated. 
 The imprudent Creditor, as I have said, will be restrained 
 by fear of debarring himself from advantages which I am 
 persuaded need but to be offered to be generally desired, and 
 the Debtor be chary of committing himself to any questionable 
 act which may make him the object of suspicion to Assurance 
 Associations ; certain of whose wakeful supervision, he will, on 
 the contrary, be likely to make every effort to maintain 
 his position as an honest trader. The important duty of 
 prosecuting dishonest Bankrupts and Insolvents and the whole 
 class of Swindlers, a duty so often neglected or systematically 
 avoided by Individuals, on account of the trouble and 
 expense attending it, will be inflexibly performed by a 
 Company, whose interests will be so deeply and extensively 
 involved in its due execution, that no delinquent can hope to 
 escape conviction. 
 
 We commence this undertaking at an auspicious time, the 
 Nation having recently recovered from a Commercial Crisis. 
 Confidence and enterprise are reviving, and so much of Credit 
 as has withstood the shock may be considered as standing on 
 a more solid foundation. 
 
 The immense amount of Insolvency lately exposed (and 
 greatly overrated) need not discourage us ; for however little 
 we may be disposed to rely on the presumed periodicity of 
 Panics, (a theory strangely according with experience,) yet 
 the fact is indubitable, and might, if space permitted, be de- 
 
16 
 
 monstvated by tables of Statistics,—that Insolvency is a 
 decreasing and not an increasing evil. The Panics of 1793-4, 
 1810-11, 1825 especially, and even 1835-6, were each in its 
 sphere of greater intensity than that of 1847-8; and I have 
 found, by comparing the Insolvency returns of past years with 
 the progress of National Wealth, as deduced from the Popula¬ 
 tion, number of Traders and of Dwelling-Houses, the amount 
 of Revenue, of Exports and Imports, the number and tonnage 
 of Vessels, and all other items indicating the resources of the 
 country, that those returns exhibit decennially a constant 
 diminution. 
 
 1 I now take leave to subjoin a suggestion relative to the 
 subject before alluded to ,—the Administration of Bankrupt 
 and Insolvent Estates ,—a suggestion sufficiently invited, by 
 the acknowledged inadequate, unsettled, and always expensive 
 character of the means afforded by Law. 
 
 To avoid an appearance in the Bankruptcy and Insolvency 
 Courts, a private arrangement is resorted to wherever practi¬ 
 cable, and there are two ways in which such an arrangement 
 may be legally effected. Firstly, by calling together the 
 Creditors and obtaining iheir consent to a Composition,— 
 perhaps the most desirable, certainly the most facile mode of 
 dealing with the case, where honest intentions on the one side 
 are met by confidence on the other; but it is in reality a mode 
 encumbered by great difficulties, too often arising from the 
 absence of these conditions, usually attended by delay and 
 uncertainty, and resulting in dissatisfaction. The other 
 method consists in an Assignment of his Effects by an Insol¬ 
 vent to two or more Creditors for the benefit of all; but such 
 an arrangement is obnoxious to the suspicion of preference, 
 whereby the interests of the many are possibly sacrificed to 
 the few; or, as has been frequently the case, the same thing 
 may happen by the dishonesty of the Trustees. The evils 
 incident to either course I propose to obviate, by superadding 
 to the functions of the Company, the faculty of mediating 
 between Creditors and Debtors in the character of Trustee. 
 The Debtor, for instance, will make to the Company a full 
 disclosure of his circumstances, which being investigated by 
 
17 
 
 its Accountant, upon his favourable report, an Assignment 
 will be taken, and the Creditors waited upon for their consent 
 to the best Composition the Assets may warrant, to be imme¬ 
 diately liquidated, less a discount, or payment thereof guaran¬ 
 teed, without deduction, as soon as the Effects are realized. 
 
 No distrust could attach to the Company in its capacity of 
 mediator, as it could have therein no adverse interest; no other, Compaq 
 in fact, than that of sustaining its own Credit by careful and 
 economical management, and of realizing the utmost possible 
 benefit to the Creditors, inasmuch as it will receive remunera¬ 
 tion for its services (for that is part of my plan,) by a per 
 centage, regulated on a sliding scale according to the rate of 
 Dividend secured. 
 
 Thus would be saved a large proportion of Law, Court, 
 and Accountancy expenses. Many cases are on record in 
 which these have consumed the entire Estate, and few in which 
 they have not trenched largely upon the Dividend, which 
 suffers not less encroachment by reason of the waste insepar¬ 
 able from forced Sales of Property and Effects. The Company 
 will go to work in no such precipitate manner; it will be 
 competent to the honest Debtor to place himself in its hands 
 before ruin has become inevitable ; in proper cases, advances 
 may be made, and a catastrophe altogether avoided; and in no 
 case will the Company be obliged to proceed to Sales under 
 unfavourable circumstances. 
 
 In conclusion, Gentlemen, I have to solicit your inspection 
 of the extract contained in my Appendix, taken from the 
 published Prospectus of the Association I am endeavouring 
 to establish ; and which, if I have been so happy as to gain 
 your attention to the foregoing Address, I cannot doubt will 
 be honored by your approval and support. 
 
 I have the honor to be, 
 
 Gentlemen, 
 
 Your most obedient Servant, 
 
 CHARLES STUART CANSDELL. 
 
 11, MONTAGUE PLACE, ISLINGTON. 
 
 2nd Nov. 1849. 
 
IS 
 
 APPENDIX. 
 
 Certificate from XV. S, B. XVooliiouse, Esq., F.R.A.S., etc. 
 
 “To C. S. Cansdell, Esq. 
 
 “Sir, —I have perused your Prospectus of the proposed “ Solvency Guarantee 
 Company,” and after due consideration think it of great importance to the 
 Commercial World, and capable of being made practicable ; and I am of 
 opinion, that the advantages offered to the Public would insure its success if 
 efficiently carried out. A Friend on the Continent has promised to obtain some 
 practical information on the subject for me, and I shall have great pleasure in ' 
 giving you all the assistance in my power. 
 
 “ I am, Sir, 
 
 “ Yours truly, 
 
 “ 26, Ccrnliill, London. “ W. S. B. WOOLHOUSE, 
 
 “2bt Sept. 1849.” “Actuary.” 
 
 Letter from Michael Hava, .Esq. of the Firm of Messrs. Hava 
 & Co. London. 
 
 “ To C. S. Cansdell, Esq. 
 
 “ Dear Sir, —I have much pleasure in certifying that the Assurance of Debts 
 and Bills of Exchange has been practised successfully for a long time in many 
 parts of the Continent. 
 
 “ I am, Dear Sir, 
 
 “ Yours truly, 
 
 “ \5th August, 1849.” “MICHAEL HAVA.” 
 
 JS.B._Authentications of this fact I could readily multiply if it would 
 
 answer any purpose. The reason for omitting them will be found in my 
 Advertisement to the present Edition.—C. S. C. 
 
19 
 
 The Solvency Guarantee Company, 
 
 (Provisionally Registered pursuant to 7 & 8 Viet. c. 110,) 
 Established to secure Bankers, Merchants, Manufacturers, and Traders 
 generally, against loss by Bankruptcies, Insolvencies, Assignments, and 
 Compositions; to insure Debts, Bills of Exchange, Promissory Notes, Banking 
 Accounts, Bonds, etc.; to secure Landlords against Loss of Rent by Insol¬ 
 vent Tenants; to Guarantee and Liquidate Dividends and Compositions; and 
 undertake the economic Management of embarrassed Estates, when such Assets 
 are Assured. To be Incorporated by Act of Parliament. Capital £500,000, 
 with power to increase to £5,000,000, in Ten Series of 25,000 Shares of £20 
 each. Deposit 2s. per Share, until complete Registration, when a call of 18s. 
 per Share will be made ; and it is confidently presumed that no farther advance 
 of Capital will he required, bnt the balance to remain as a Guarantee Fund. 
 
 The Objects of this Company are ,—The Assurance of Bankers, Merchants, 
 Manufacturers, and Traders generally, from Losses by Bad Debts occasioned by 
 Bankruptcies, Insolvencies, Assignments, and Compositions; the Assurance 
 of Landlords from Losses by Insolvent Tenants ; the Guarantee of Monetary 
 Risks of every description; the careful Management of Embarrassed Estates, 
 
 Application for further Information, Prospectuses, and Shares, to be made to 
 Charles Wellborne, Esq., Solicitor, 31, Tooley Street, Southwark, to Thos. 
 Eden, Esq., Solicitor, 3, Salisbury Street, Strand, or to C. S. Cansdell, the 
 Promoter, 11, Montague Place, Islington.” 
 
Just Published—Second Edition, Price 6d.—Post Free 8 d. 
 
 SOLVENCY GUARANTEED, 
 
 The Outline of a Plan for the Application of Assurance to Debts, 
 Bills of Exchange, Promissary Notes, Rent, and Monetary 
 Risks of every description, etc. etc. 
 
 BY C. S. CANSDELL. 
 
 G. MANN, 39, CORNHILL; MITCHELL AND SON, 39, CHARING 
 
 OPINIONS OF THE PRESS. 
 
 “ A Company, under the title of 1 The Solvency Guarantee Company,’ 
 has been provisionally registered,pursuant to Act of Parliament. * • • 
 Mr. Cansdeu,, the originator of this Society, has issued an Address to the 
 Bankers, Merchants, Landlords, and the Public generally of this country, 
 giving the outline of his plan for the application of Assurance to debts, bills 
 of exchange, promissory notes, rent, and monetary risks of every description. 
 
of any undertaking 
 :h Mr. Cansdell ha 
 lty of the plan forn 
 
 obstacles mav oddo