361 



Sect. iv. 



On Corporations. 



Corporations flowed out of the feudal fyftem ; and were ereiled, and 

 grew, under the countenance, and proteftion, of the ancient monarchs of 

 Europe, as a counterpoife to the tyranny, the turbulence, and power, of 

 their great barons. The fecurity of property, and relative tranquillity, 

 which they afforded, firfl gave rife to commerce and manufadures. This 

 has produced a prejudice, in favour of corporations, and erroneous notions, 

 on commercial fubjefts. It has been fuppofed, that the fame meafures, and 

 institutions, which, in times of outrage and anarchy, were neceffary to the 

 very exiftence of commerce, and the fecurity of the perfons, and poffeffions 

 of individuals, would, in times of peace, and good order, contribute to the 

 extenfion and profperity of trade. In thofe early days, the maxims of in- 

 duftry were ill underftood : trade was in low repute, and capital was not 

 generally diffufed. It was fuppofed neceffary to allure men to commercial 

 enterprife, by exclufive privileges. The crown, too, was fond of over- 

 ftretching its prerogative, and gratifying its favourites, by the creation of 

 monopolies. We find, in the early part of the Englijh hiftory, even down 

 to the unhappy reign of thzfrji Charles, perpetual complaints of the grofs 

 prevalence of monopolies. 



The predominancy of thefe notions, gave occafion to the marflialling and 

 arraying, the profeffors of various trades, into exclufive companies, embo- 

 died, by charter, endowed with beneficial privileges, inverted with extra- 

 VoL. XI. ( Z z ) ordinary 



