The years 1835 and 1836 were unmarked by any event out of the regular course. The business of the house was taking a great extension (purely as agency); but in 1837 occurred the failures in London of three important banking houses having a large American connection. We had negotiated their 'credits' for some of our constituents to a considerable amount for the payment of teas and silks. Those houses were Thomas Wilson & Co., George Wildes & Co., and Timothy Wiggin, commonly known as the three W's. These failures were within a short time of each other. On reference to our register of bills drawn, we found the total amount of which we had not yet received advice of payment or acceptance to be close upon 200,000_l._ They were all drawn on 'clean credits,' without 'collaterals' (which were not yet in vogue), and at six months' sight. We had confidence in our American constituents, but as the shipments occupied, say, four months in getting to market, and could only be sold at the usual credit of six months, very little margin of time existed. Our own credit, however, was the first consideration. One of our partners, then in Boston, had in his charge a very large amount belonging to Houqua, who gave us an order on the former to hold at our disposal any sum required. Enclosing this, we directed remittances to be made to Messrs. Barings of a sufficiency to cover all such bills on the W's as could not be relied upon for payment by those for whose accounts they had been drawn, and simultaneously we informed Messrs. Barings that remittances would be made to them to provide for such bills, so that our signature could be promptly honoured. Communication with the Western world was long in those days; there were even no 'clipper' ships yet. Accustomed, however, to such delays, we waited patiently the result. Our first advices were from London. They informed us that the writers, Messrs. B. B. & Co., would honour all bills bearing our name on the three bankrupt houses in question. This was a gratifying thing, as they had not yet received our communication above referred to. Everything worked with regularity. Some of the firms for whose accounts the bills had been drawn were ready to meet them, others furnished securities, and the ultimate loss was inconsiderable on the whole account. So rapid had been remittances from our Boston partner that, when the final account current was received at Macao from London, 1840-41, the balance of interest was in our favour, while Houqua was recouped in full as payments were made to our home partner by American constituents. If I am not very much mistaken, 1837 was the first of those years ending with '7' which have become proverbial as attended with great commercial troubles in the Western world. * * * * *