THREE:The winter of 1836-7 was marked by great commercial activity, and a strong tendency to over-trading, chiefly on the part of the banks. The result was a reaction, and considerable monetary embarrassment. In the reckless spirit of enterprise which led to these consequences, the American houses took the lead. The American speculators indulged an inordinate thirst for gain by land jobs, and over-trading in British produce. The most remarkable examples of this were afforded by three great American houses in London, called "the three W.'s." From an account of these firms, published in June, 1837, it appeared that the amount of bills payable by them from June to December, was as follows: Wilson and Co.,[411] ��936,300; Wigan and Co., ��674,700; Wildes and Co., ��505,000; total acceptances, ��2,116,000. This was upwards of one-sixth of the aggregate circulation of the private and joint-stock banks of England and Wales, and about one-eighth of the average circulation of the Bank of England. The shipments to America by Wigan and Co. amounted to ��1,118,900. The number of joint-stock banks that started into existence at this time was remarkable. From 1825 to 1833 only thirty joint-stock banks had been established. In that year the Charter of the Bank of England being renewed, without many of the exclusive privileges it formerly enjoyed, and the spirit of commercial enterprise being active, joint-stock banks began to increase rapidly. There was an average of ten new companies annually, till 1836, when forty-five of these establishments came into existence in the course of ten months. In Ireland there were ten started in the course of two years. The consequence of this greatly increased banking accommodation produced a wild spirit of commercial adventure, which collapsed first in America, where the monetary confusion was unexampled��bankers, importers, merchants, traders, and the Government having been all flung into a chaos of bankruptcy and insolvency. This state of things in America had an immediate effect in England. Discounts were abruptly refused to the largest and hitherto most respectable houses of Liverpool and London. Trade, in consequence, became paralysed; prices suddenly dropped from thirty to forty per cent.; and the numerous share bubbles��the railway projects, the insurance companies, the distillery companies, the cemetery companies, the sperm oil, the cotton twist, zoological gardens, and other speculations��which had floated on the pecuniary tide, all suddenly collapsed, and there was an end to the career of unprincipled adventurers. It is satisfactory, however, to observe that the sound commerce of the country soon recovered the shock thus given; and in less than two years the pecuniary difficulties had passed away. Commerce had resumed its wonted activity, and flowed steadily in legitimate channels. The American banks resumed payment, and the three great American houses, which had involved themselves to such an enormous extent, were enabled to meet all their liabilities.Soon it became apparent that the Italians were disunited, monarchists against republicans, and Milanese against Piedmontese. Radetzky, meanwhile, had received ample reinforcements, and in June set himself to reduce Venetia. Fortress after fortress fell, and by the end of the month the province, with the exception of the capital, was once more in Austrian hands. Then the sturdy[585] old warrior crushed the Piedmontese at Custozza and drove them pell-mell across the Mincio, after a battle which lasted three days. Charles Albert, unequal to his position, and worn out by the dissensions of his staff, surrendered Milan without a struggle, and by August, 1848, the fate of Lombardy was sealed. In vain the Lombards appealed to France; the cautious Cavaignac had there replaced the sentimental Lamartine. He offered, indeed, to join with England in mediation, and, with his consent, Lord Palmerston proposed the terms which had been previously offered by Baron Hummelauer. The Austrians, however, declined to negotiate on that basis, and at last on the 25th of September declared that they would consent to no cession of territory. However, there was a cessation of hostilities. Lorem ipsum dolor sit amet, consectetur adipisicing elit.