DOI Page / Citation link:
https://doi.org/10.11588/diglit.22140#0156
INDUSTRIAL AND COMMERCIAL HISTORY.
what he called democracy. The principal interest to me, how-
ever, in these ancient collegia, is that they formed a characteristic
part of the later Roman municipium^ and that from these muni-
cipia, with their existing institutions, were derived the chartered
towns of France and England. I am only concerned at present
with those voluntary associations in England, known as partner-
ship and joint-stock enterprise, the latter having been recently
developed by very modern Acts, and constituting a most important
aspect of modern production and trade, the principles and practice
of it being sometimes very adversely criticized, and quite as
frequently eulogized.
Partnership, and the regulation of partnership by law, must
have been as early as trade and mercantile law. In English law,
from early to recent times, the liability of the partners, whether
they entered into a private arrangement, or adopted as far as
possible a joint-stock principle, was unlimited, each partner or
shareholder being responsible for all the defalcations or debts of the
firm or association. Now it was early seen that certain forms of
trade or production could not be carried on, or even exist, on this
principle. The stock of the Bank of England carried no liability
to its partners beyond the amount of each person's subscription or
holding, and this, I conclude, was the reason why the greater part,
if not the whole of the capital, beyond the freehold premises of
the Bank, was invested in Government securities. When, in 1816,
the Rest of the Bank of England amounted to near nine millions,
(you will remember that the Rest is the difference between the
assets and liabilities of the Bank), that accumulated profit was
undoubtedly invested in securities ; and when in that year the
directors, with the sanction of the proprietors, added 25 per cent,
to the capital stock of the proprietors as a bonus, the 'form
which the new stock took was a security. Similarly, when the
South Sea Company was formed in 1711, and expanded in 1719,
the whole of the stock was in public securities, and so far was a
guarantee to the subscribers, whose liability was limited to the
amount of their subscription or holding.
It would have been plainly impossible for the great works which
have been carried out by private or joint-stock enterprise in
England, to have been even contemplated, if the old law of part-
what he called democracy. The principal interest to me, how-
ever, in these ancient collegia, is that they formed a characteristic
part of the later Roman municipium^ and that from these muni-
cipia, with their existing institutions, were derived the chartered
towns of France and England. I am only concerned at present
with those voluntary associations in England, known as partner-
ship and joint-stock enterprise, the latter having been recently
developed by very modern Acts, and constituting a most important
aspect of modern production and trade, the principles and practice
of it being sometimes very adversely criticized, and quite as
frequently eulogized.
Partnership, and the regulation of partnership by law, must
have been as early as trade and mercantile law. In English law,
from early to recent times, the liability of the partners, whether
they entered into a private arrangement, or adopted as far as
possible a joint-stock principle, was unlimited, each partner or
shareholder being responsible for all the defalcations or debts of the
firm or association. Now it was early seen that certain forms of
trade or production could not be carried on, or even exist, on this
principle. The stock of the Bank of England carried no liability
to its partners beyond the amount of each person's subscription or
holding, and this, I conclude, was the reason why the greater part,
if not the whole of the capital, beyond the freehold premises of
the Bank, was invested in Government securities. When, in 1816,
the Rest of the Bank of England amounted to near nine millions,
(you will remember that the Rest is the difference between the
assets and liabilities of the Bank), that accumulated profit was
undoubtedly invested in securities ; and when in that year the
directors, with the sanction of the proprietors, added 25 per cent,
to the capital stock of the proprietors as a bonus, the 'form
which the new stock took was a security. Similarly, when the
South Sea Company was formed in 1711, and expanded in 1719,
the whole of the stock was in public securities, and so far was a
guarantee to the subscribers, whose liability was limited to the
amount of their subscription or holding.
It would have been plainly impossible for the great works which
have been carried out by private or joint-stock enterprise in
England, to have been even contemplated, if the old law of part-