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Current of first fifteen months from the moment of a suspension of monetary payments
Issue has increased by 50 %. It. cit., p. 45.] formally monetary payments were
Are renewed in 1817, however in 1819 the new suspension has followed,
Stretched for two years.
The establishment of these first banks resulted often from the political
Processes, instead of real commercial necessity. Their education
It was accompanied by abusings at formation of authorised capital stocks, more often
Directly financed by state structures. In case of the First Bank
The United States a 200-million subscription of the government of the United States
Was no more than fictitious accounting conducting. Some banks had no
Almost any capital, and almost at all the capital was less than that figure, on
Which has formally been made a subscription. As responsibility
Shareholders has been limited, investors in these conditions appeared practically
The defenceless. When a legislature of states, eventually, has solved
To resist to unfair practice, formation of the corresponding
Legislations it has appeared for them extremely a hard task.
Their close connection with was other feature of these first bank structures
Exchequers of states. Usual practice was to demand from bank, that that in
Necessity case has given credits to the staff which has given out to it charter-party.
Specially stipulated articles about it were brought in charter-parties of banks, and, except
That, from time to time certificates with the order were accepted by staff about
Granting of loans for those or other needs. Result of it it is frequent
There were so large volumes of crediting of the governments of states that for
Maintenance of commercial demand at the disposal of banks practically not
Remains real means. Possibly, this factor in the considerable
Degrees has provoked originally superfluous issue of banks.
Owing to autonomy small on territory, sparsely populated areas
The countries, the bank system began to gravitate to fragmentary structure. Bank
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