COMPOUND CAPITAL. 529 



tion, was commissioned to make discoveries and take pos 

 session of new lands in the king s name; at the same time 

 that it was to have, like others of these companies, exclusive 

 privileges of trading within specified limits. Out of indefi 

 nite unions, which necessarily possessed compound capital, 

 in some way derived from the contributions of the associ 

 ated merchants, the change to definite unions possessing 

 compound capital as we now know it, was initiated by the 

 East India Company. But the change was not sudden. 

 At first 



&quot;Those who entered the Company did not trade as individuals, but 

 combined to take shares in fitting and loading several ships one year, 

 and then formed a new subscription for each subsequent voyage.&quot; 

 That is, there was a joint-stock company formed for each 

 voyage, which did not commit its members individually to 

 the general fortunes of the Company. However 



&quot;In 1612, the charter of the Company was renewed in a different 

 form, and it became a joint-stock company, in which all the partners 

 had larger or smaller shares.&quot; 



Nevertheless the kinship of these forms of organization to 

 earlier forms was still displayed. These companies for 

 carrying on foreign commerce in one or other region, had 

 the character of gilds for external business, possessing cer 

 tain local monopolies, and being just as hostile to those they 

 called &quot; interlopers &quot; as were the town-gilds to unprivileged 

 competitors. Moreover, the militant character survived, 

 and in some cases grew predominant; for these companies 

 became bodies employing troops and making conquests. In 

 deed this ancient trait continues down to our own day. The 

 great nations of Europe, called civilized, when they do not 

 themselves invade the territories of weak peoples, depute 

 companies to invade for them; and having aided them in 

 conquering a desirable region, eventually &quot; annex &quot; it the 

 euphemistic word used for land-theft by politicians, as &quot; con 

 vey &quot; was FalstafFs euphemistic word for theft of money. 

 Companies formed like these for carrying on foreign 



