36 MUTUAL BANKING. 



utes of the new bank, the issue of paper would be equal, at every 

 instant, to the the totality of circulating values. 



"I do not conceive it necessary to insist longer. Men acquainted 

 with banking will understand me without difficulty, and will sup- 

 ply from their own minds the details of execution. 



"As for the vulgar, who judge of all things by the material aspect, 

 nothing for them is so similar to an assignat as a bill of the Bank of 

 Exchange. For the economist, who searches the idea to the bot- 

 tom, nothing is so different. They are two titles, which, under the 

 same matter, the same form, the same denomination, are diamet- 

 rically opposed to each other." — [Organization du Credit de la 

 Circulation — Banque d'Exchange; p. 23). 



REMARKS. 



We have several objections to Proudhon's bank. We propose 

 them with diffidence, as Proudhon has undoubtedly prepared an 

 adequate answer to them. Nevertheless, as he has not given that 

 answer in his writings, we have a right to state them. They are as 

 follows: 



1st. We ask M. Proudhon how he would punish arbitrary con- 

 duct, partiality, favoritism and self-sufficiency, on the part of the 

 officers of his bank. When we go to the mutual bank to borrow 

 money, we desire to be treated politely and to receive fair play. 



2nd. We ask him how he would prevent intriguing members 

 from caballing to obtain control of the direction; or how he would 

 prevent such intrigues from bringing forth evil results. 



3rd. We ask him how he would prevent the same property, 

 through the operation of successive sales, from being represented, 

 at the same time, by several different bills of exchange, all of 

 which are liable to be presented for discount. For example: Sup- 

 pose Peter sells John $100 worth of pork at six months credit and 

 takes a bill at six months for it; and that John sells afterward this 

 same pork to James at a like credit, taking a like bill; whatshall 

 prevent both Peter and John from presenting their bills for dis- 

 count? Both bills are real bills, resulting from sales actually 

 effected. NcMthor of them can be characterized as fictitious paper, 

 and meanwhile, only one represents actual property. The same 

 barrel of pork, by being sold and resold at credit one hundred times 

 will give rise to one hundred real bills. lUit is it not absurd to 

 say that the bank is safe in discounting all this paper, for the rea- 

 son that it is entinily composed of real bills, when wv. know only 

 one of them represents the barrel of pork? It follows, therefore, 

 that not every real bill is adequately guaranteed. How, then, can 

 Proudhon be certain that his issues of l)ank-paper "will never be 

 exaggerated?" 



4th. We ask him how he would caus<^ his bank to operate to 

 the decentralization of the money power. 



For ourselves, we submit (and for the reason that it is necessary 

 to have some systfm that obviates the foregoing objections) that 



