MUTUAL BA:NK1IsG. 37 



the issues of mutual money ought— at least, here in New England, 

 the theory of Froudhon to the contrary notwithstanding— to be re- 

 lated to a basis of determinate actual property. 



Our plan for a Mutual Bank is as follows: 



1st. Any person, by pledging actual property to tlie bank, may 

 become a member of the INIutual Banking Company. 



2nd. Any member may borrow the paper money of the bank on 

 his own note running to maturity (without indorsement) to an 

 amount not to exceed one-half of the value of the property by him- 

 self pledged. 



3rd. Each member binds himself in legal form, on admission, 

 to receive in all payments, from whomsoever it may be and at par, 

 the paper of the Mutual Bank. 



4th. The rate of interest at which said money shall be loaned 

 shall be determined by, and shall if possible, just meet and cover, 

 the bare expenses of the institution. As for interest in the com- 

 mon acceptation of the word, its rate shall be at the Mutual Bank 

 precisely 0. 



5tii. No money shall be loaned to any persons who are not 

 members of the company; that is, no money shall be loaned, ex- 

 cept on a pledge of actual property. 



6th. Any member, by paying his debts to the bank, may have 

 his property released from pledge, and be himself released from all 

 obligations to the bank, or to the holders of the bank's money, as 

 such. 



7th. As for the bank, it shall never redeem any of its notes in 

 specie; nor shall it ever receive specie in payments, or the bills of 

 specie-paying banks, except at a discount of one-half of one per 

 cent. 



Ships and houses that are insured, machinery, in short, anything 

 that may be sold under the hammer, may be made a basis for the 

 issue of mutual money. Mutual Banking opens the way to no 

 monopoly; for it simply elevates every species of property to the 

 rank which has hitherto been exclusively occupied by gold and sil- 

 ver. It may be well (we think it will be necessary) to begin with 

 real estate; we do not say it would be well to end there! 



