Miscellaneous Legislative Provisions. 
409 
dividends from capital stock they may be compelled to replace 
them at their own expense. Finally access may be had to the 
assets of a company for the payment of debt through a process, 
strictly prescribed by law and denominated “winding up.” 
This may be instituted by the company, in which case it is 
voluntary, or by its creditors, being then involuntary. * 1 
This brings us to the subject of bankruptcy in regard to 
which a few points may be noticed. It is obvious that a very 
great influence must be exerted upon the general conduct of 
business by those regulations which are designed to prescribe 
what shall be done when a person’s assets are not equal to his 
liabilities. The character of these provisions will determine to 
an important extent how severely the effects of an economic 
crisis are felt by those immediately concerned in bringing it 
about, and through them, as one means, will be expressed the 
attitude of trade toward such practices as are considered to lead 
up to crises. 2 
followed by its failure (1882) and a severe financial crisis was brought 
upon France; one of the few which that nation has suffered. 
1 A general summary of the advantages and disadvantages of the joint- 
stock business form is thus given by Schaffle,“Fo?’^iige :—rasche Bildung 
und Ausdehnung grosser Zwecke,—Theilunggefahrlicher undumfassen- 
der Risicen,—Loslosung von der Zufalligkeit individueller Kapitalkraft 
und^Betriebsamkeit,—Continuitat des Grosskapitals,—umfassender und 
dauerhafter Kredit. Nachthezle: Hang zu maassl’oser dauernder ver- 
schuldung,— fortlaufende Abtretung der Kapital—eriibrigungen an 
fremde Zwecke, Disposition der Betriebsleitung uber grosses fremdes 
Vermogen ohne geniigende privatwirthschaftliche Yerantwortlichkeit,— 
Schwerfiilligkeit in Ausniitzung der Conjnnctur und im Uebergang auf 
veranderte Unternehmungsgebiete,—Grlindungsgefahren,—Vermengung 
der Privatgeschiifte und der Gesellschaftsgeschafte durch Directoren 
und Verwaltungsriithe, -Schwierigkeit, eine wirksame Kontrole liber die 
Yerwaltung rechtzeitig zu flihren, “Tiibinger Zeitschrift” 1869, pp. 336- 
338, Cf. Conrad’s Lectures, 3rd ed., (privately printed) pp. 67-68. Rog¬ 
ers, “Industrial and Commercial History of England,” Series I, ch. VII. 
Roscher, “Nationalokonomik des Handels und Gewerbfieisses,” 2 aufl., 
§ 28, 29 und 30. 
2 “ Private credit is always conditioned, and in a great many ways, by 
the situation of the whole nation’s business; in other words, by their 
politico-economical situation. It is especially in the higher stages of 
civilization, that one bankrupt may easily drag numberless others down 
