matter of course, one of the first things which
induces the public at large to write for shares in
any new concern, is a good prospectus.

To draw out a prospectus for our bank, it was
necessary both to study the commercial statistics
of Patagonia, and to quote largely from papers
and other documents relating to its produce and
trade, or else to trust to chance, and write, as
it were, a pleasantly coloured picture respecting
our prospects of successful banking in that
country. The former I was afraid would take
up too much time, and therefore I chose the
latter. At first I attempted to get our secretary
to draw up such a document as I required, but
found him quite incapable of doing even so much
in the way of helping me. Beyond the writing
of mere official routine letters, he was unable to
put pen to paper effectually, and therefore I
took the task upon myself.

It was necessary to show, first, that the company
it is intended to bring out is very much
wanted; secondly, that to supply that want
there are certain specialities in the proposed
company which no other combination could,
by any possibility, meet. I commenced the
document by stating that " This company has
been formed for the purpose of extending the
advantages of banking to the country of Patagonia,
which was well known to be overwhelmingly
rich in all kinds of natural produce."
I then took a philanthropic view of
the subject, and endeavoured to prove, that, in
order to make men happy and prosperous, a
banking establishment was of all things the most
necessary in every country. After this I looked
at the question from a missionary point of view,
and showed that without banks there could be
no Christian teaching. Lastly, I quoted extracts
from letters—imaginary of course—written by
Europeans resident in Patagonia, proving that
with proper management a clear profit of not
less than twenty per cent must be made out
of any amount of capital employed in banking
operations between London and that country.
I then enlarged greatly upon the fact of ours
being the first bank ever started to do business
with that part of the world, and ended by assuring
the readers of the prospectus that we had
promises of support from all the most influential
native chiefs in the land, and that, in a word,
our success and triumph in the matter was certain.

Our capital was a million sterling, divided into
fifty thousand shares of twenty pounds each,
upon which only ten pounds were to be paid up
by easy instalments: one pound on application,
two pounds on the allotment of the shares, and
two pounds twice at intervals of three months;
the last instalment (not likely to be ever called
up), three pounds. All this told well on the
prospectus, and had the effect, when that document
was published, of causing the public at
large to apply for shares to a very considerable
extent.

In due time we " came out," as the phrase is;
that means, our prospectus was put before the
world in the advertising columns of all the chief
London papers, and applications for shares
poured in upon us in every direction. After
the first, week it was quite evident that we
should be fully justified in allotting the shares,
and therefore, after due notice that no more
applications could be received after a certain day
and hour, we—that is, the directors, for I had
handed over the company to the board— proceeded
to allot the shares. As I said before, there
were fifty thousand shares, and we had applications
for at least double the number, so that the
directors could afford to pick and choose who
they would, and who they would not, apportion
shares to in the concern. In due time the letters
of allotment and letters of regret (as those which
inform applicants that the directors regret they
cannot give them any shares, are called) were
posted, the one pound per share on each application
was paid into our bankers, the allotment
took place, I obtained a cheque for my five
thousand pounds, and Mr. Edwin Smart, our
respected secretary, got back all the money he
had advanced, besides having his appointment
as secretary confirmed by the board of directors,
with the amount of salary that had been previously
determined upon.

For a short time I felt content with the promotion-money
to the amount of five thousand
pounds, which I had earned. But, after a time,
the demon of avarice whispered in my ear a
query as to whether I could not make still more
than I had done by this bank. The company
did not flourish so well when it got fairly out to
sea, as it had when being built. The directors
soon found out that banking operations in Patagonia
were utterly impossible, and that it would
be better and safer for the bank to employ its
capital in England than abroad in so savage a
country. This was done, but not with much
success. A new bank has always to make
business for itself, and, in doing so, it must,
to a certain measure, make not a few bad
debts. In fact, there are certain misfortunes
which invariably happen to a banking establishment
of the kind, just as teeth-cutting,
measles, and whooping-cough, come to young
children; the one, like the other, has to get
over these troubles, and is very fortunate if
in so doing its very existence is not endangered.

The Bank of Patagonia had some of its misfortunes
a little too soon after starting, and its
troubles were a good deal talked about in the
City, although there was nothing very serious
in them—nothing but what might easily have
been got over with a little care and management.
But slight as were its difficulties, they
were sufficient to tempt me, when a demon, in
the shape of a needy solicitor, whispered in my
ear that I might make much more money out
of the concern than I had done hitherto, by filing
a petition for the winding-up of the bank, and
dividing the costs that were incurred with the
lawyer, who prompted me thus to kill, as it were,
my own offspring.

The offer that was made me was as follows:
A petition for the winding-up of the bank was