In the beginning of the year 1856 I commenced business on my own account, as a merchant in a Northern City. Previous to that time I had been engaged in an unsuccessful partnership, but I paid my creditors in full with the small capital advanced to me by my friends for the purpose of my new adventure. When I began operations, therefore, I was literally without a shilling in the world, but I had a spotless character, enjoyed good credit, and possessed a thorough knowledge of my business; advantages which I easily persuaded myself would enable me to succeed without the actual possession of capital.--My business connections were scattered over various parts of the world, and generally ranked among the very best class of foreign merchants. I usually received orders by letter, sometimes I gave open credits to houses whose orders I could not otherwise secure, but frequently I had remittances long before the merchandise could arrive at its destination. The trade was one of confidence, requiring both character and position for its development, and had I been prudent enough to confine myself strictly to this branch of the business, I would now, without doubt, have been a wealthy and successful merchant. At the end of my first year's operations my ledger showed a satisfactory balance to my credit. The year 1857 opened auspiciously, and I continued to prosper almost to the end of it, when a storm swept over the commercial world, which involved hundreds of firms in bankruptcy and ruin. From the nature of my business it was scarcely possible I could escape, and although I succeeded in avoiding bad debts, I incurred indirect losses to a very considerable amount. In May, 1858, I paid a visit to the Continent, in order to ascertain on the spot how my connections there had weathered the recent storm. This visit resulted in a large increase of legitimate business, and up to this point I had taken no false step. Shortly afterwards, however, I was induced to embark in two different and distinct branches of trade, which led to my ruin. The first was the manufacture of novelties, which, after a large expenditure, I was obliged to relinquish, in consequence of my not having sufficient capital to make it profitable. The second was a mercantile business, managed by an agent resident on the Continent. This agent was without means, and, as I afterwards found, without the abilities necessary for the position. He had not long commenced operations when a war broke out in Lombardy, which furnished his customers with an excuse for rejecting the goods they had ordered before prices began to recede. The consequence was that I had thousands of pounds' worth of goods thrown upon my hands abroad, which resulted in large direct and still larger indirect losses. It was at this juncture that I ought to have stopped payment, but, being of a sanguine disposition, and my regular business continuing to prosper, I hoped the