PARTNERSHIP "EN COMMANDITE."

Daily Southern Cross, Volume XXVI, Issue 3961, 3 May 1870, Page 5

PARTNERSHIP "EN COMMANDITE."

To the Editor of the Daily Southern Cross. Sir, —The commercial community is much indebted to you for your article introducing this subject, and it is to be hoped that it may excite the attention of those classes whose iuterests are so largely engaged in its obtaining a trial in this colouy. A residence of some years' hi an important manufacturing town in France has afforded me abundant opportunity of observing this law in its immediate and ultimate effects, and has qualified ,me, by the experience so obtained, to witness to the beneficial results it invaiiably produces, and the prosperity that everywhere flows from its adoption, It is not too much, indeed, to affirm of it that to it Franco of to-day owes its present robu it condition of trade, and the favourable promise afforded of the future. The process of application is very simple : A young man of talent in some branch of the useful arts desires to develop his specialty, and, to this end, requires the cooperation of a man of capital who shall, under certain conditions, furnish the requisite means. Demands of this nature have called into being a class of capitalists chiefly derived from among retired traders — old war-horses that love the din of battle — who are always on the watch for desirable investments, and for men of talent and integrity, in whose hands their capital may grow and be safe. With one of these we will suppose our ideal trader associated ; and their iirm, and the capital contributed, duly registered according to law. The capitalist, or " commanditaire, " makes the best bargain he can for' his share of the profits. This done, and the registered' capital paid up, he is henceforth irresponsible : nor can any misfortune to the concern he has connected himself with further implicate him. It is known that his stake is limited ; and no ! creditor « ould venture to force business to a speculative or unsafe extent, simply on the | -faith of the "commanditaire's" reputed credit. I The publicity of registration guards against recklessness in trading. As for the working partner (or " ge'rant"), he occupies precisely the position of a partner in any ordinary unlimited concern. His responsibility has no bounds, and by his prudence and skill, and having in view the capital lie has to work on, will his creditors measure the degree of credit they can in safety accord him. His success is the criterion of his capitalist in dealing with him, and as his actual tendency is t« pay out one who

demands high terms by bringing in another of modester views, he usually succeeds in securing the best conditions until he can, finally, dispense with all foreign capital and rely upon his own accumulation . In France there can be no doubt as to the smooth working of this old French law, nor as to the advantage it has proved itself. Under its benign influence trade and manufactures have received a great impetus ; industry has been largely stimulated; taste, in the useful arts, elevated ; and the standard of comfort of the middle classes vastly raised. It has brought into better intelligence money and skill ; and thus, indirectly, and upon a oasis of mutual interest, has almost realised the dream of the philosophic socialist. Our colony seems to me to offer a peculiarly advantageous field for the favourable operation of this measure. It must, however, be understood that, if partnerships "en commaudite" are ever to become an established "fact" with us, we must adopt, frankly, the well-tried French sy stem, andreject altogether that emasculated measure by which the Home law-makera have endeavoured (and have failed) to make limited private partnership a la Frangaise known" to English commerce. — I am, &c, G. H. Howell.