Merdle and Clennham

Finance

In one of his works of non-fiction, the book about his travels in the United States, American Notes for General Circulation, Dickens criticised Americans for their love of "'smart' dealing which gilds over many a swindle or gross breach of trust". That was in the final chapter. The actual title of the book first published in 1842, is the punning allusion to the situation arising from the financial crisis in 1837 which led many of the States to repudiate their debts that they had incurred by lavish borrowing from foreign institutions. Two real scandals formed the background to one of the novels of Charles Dickens. In Little Dorrit, Dickens depicts the rise of the financier Merdle in social esteem, the eventual failure of his speculations and his subsequent suicide. In marked contrast to the dishonest financier, Arthur Clennam after losing his savings in Merdle's schemes, settles for a "modest life of usefulness and happiness" by marrying Amy Dorrit afterwards. Little Dorrit was originally published in 1856 (many of Dickens' works first appeared in serial form) during a time when the collapse of the Royal British was receiving much publicity. The collapse was a result of the institution having channelled most of its capital into Welsh gold mines in the vain hope that Wales would prove to be the next California. (The discoveries which sparked the California Gold Rush had been made in 1848). After the collapse it was discovered that the directors had made secret loans to themselves and their friends. Dickens used the preface to Little Dorrit to defend what he called "that extravagant conception, Mr. Merdle, by alluding obliquely to "a certain Irish" - the Tipperary which failed in 1857 - and he also mentioned "the curious coincidence" that the public examination of the former directors of the Royal British took place when he was finishing the book.