PROSPECTUS OF THE LAND BANK
OR MANUFACTORY COMPANY.
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THE LAND BANK OR MANUFACTORY SCHEME.
Province of the Massachusetts Bay in New England.
In order to Redress the distressing Circumstances which the Trade of this Province labours under for want of a Medium, other Methods having failed, it is proposed to set up a Bank on Land Security, no Person to be admitted but such as dwell in this Province, and hath a Real Estate therein.
I. THE Stock to be One Hundred and fifty Thousand Pounds Lawful Money; no man to subscribe for more than Two Thousand Pounds, and none less than One Hundred Pounds; the Subscriptions not to be binding unless One Hundred Thousand Pounds be subscribed, each Subscriber for One Hundred Pounds to have one Vote, Five Hundred Pounds two Votes, One Thousand Pounds three Votes, Two Thousand Pounds four Votes, and no Person to have above four Votes.
II. Each Subscriber shall pay into the Hands of the Committee Forty Shillings Lawful Money for One Thousand Pounds, and so in Proportion for a greater or lesser Sum, toward the Charge of bringing forward the Affair.
III. Each Subscriber shall make over an Estate in Lands to the Satisfaction of the Directors, and shall pay in three per Cent. per Annum Interest for the same in any of the following Manufactures being the Produce of this Province, viz. Hemp, Flax, Cordage, Bar-Iron, Cast Iron, Linnens, Sheeps Wool, Copper, Tann’d Leather, Flax Seed, Beas-Wax, Babary-Wax, Sail Cloth, or Canvas, Nails, Tallow, Lumber, or Cord-Wood, or Logwood though from New Spain; whoever pays in any of them, shall deliver them to the Directors or such as they shall appoint, at such Prices as the Directors shall from Time to Time regulate, or pay in the same in the Company’s Bills.
IV. Every Subscriber shall pay annually five per Cent. as Part of the Principal until the whole is paid, under the same Regulations, and in the same Manner, as in the foregoing Article is express’d.
V. There shall be Twelve Directors and a Treasurer, chosen on such Allowances as shall be thought proper, who shall appoint Clerks and other Attendants as they shall find necessary, and agree with them for their Salaries; and as there May be Occasion may dismiss them and chuse others: they shall also appoint Persons to value the Lands taken for Securitys, who shall be paid by the Mortgager: All the said Officers to be under Oaths, and give Security for the faithful Discharge of their Trust. The Apprisers to be under Oath.
VI. No Person shall be capable of being a Director or Treasurer who signs less than Five Hundred Pounds, and if any Director or Treasurer die, or is removed, the vacancy shall be filled at the next Meeting of the Company by a major Vote of the Partners present; and if any of them be found guilty of any Fraud in the Execution of his Office, a major Part of the Directors, concurring with the major Part of the Partners, shall put his Bond in Suit, and he shall be declared no longer a Partner.
VII. All Mortgages and Bonds shall be made to the Directors for the Use of the Company, except what is given by any Director which shall be made to the rest of the Directors; and all Mortgages shall be put upon publick Record, to prevent clandestine Conveyances; the Charge of recording to be paid by the Mortgager; and every Partner shall be obliged on Demand of the Directors, or the major Part of them, to give such better Security as they shall think needful, in Case their Security already given be by them esteemed insufficient, and if any of them refuse so to do, his Mortgage shall be sued out, and he shall be no longer a Partner.
VIII. To oblige all the Partners to pay their Interest and Dividend of. the Principal punctually, whoever neglects paying above a Month after it is due, his Mortgage shall be put in Suit, and he shall be no longer a Partner.
IX. The Directors shall from Time to Time put out upon Lawful Interest on good Security, all such Sums as shall be in the Treasurer’s Hands, for the Use and Benefit of the Company; the annual Contingent Charge first deducted; the Borrowers to pay Principal and Interest in the Company’s Bills, or in the aforesaid Manufactures.
X. There shall be a Meeting of the Partners on the second Tuesday in June annually; and at the End of five Years at that Meeting, there shall be a Dividend made of so much of the Profits as shall be agreed on by a major Part of the Directors, concurring with a major Part of the Partners then present; and from that time there shall be a Dividend at every annual Meeting; Provided always, That in all such Dividends, Care shall be taken that there still remain in the Stock double the Principal paid in from Time to Time as aforesaid.
XI. It shall be in the Power of any Partner to redeem the Estate he hath Mortgaged at the End of five Years, or afterwards, he having the Consent of the major Part of the Directors, with the major Part of the Partners, by paying in the Money he received out thereon, with the Interest then due, either in the Company’s Bills, or in the Manufactures before-mentioned.
XII. Whereas it is principally designed that all the Subscribers shall give Land Security, as before mentioned in the third Article; yet as there are many Artificers and Traders in this Town of Boston, in good Credit, who have not Real Estate to Mortgage, but can give good Personal Security to the Satisfaction of the Directors; Now that such Persons and they only may be encouraged in their respective Occupations, it shall be in the Power of the Directors to admit such Persons to be Subscribers, but none for more then One Hundred Pounds, they giving Bond with two sufficient Suretys in double that Sum.
XIII. As the Signers of the Bills oblige themselves to the Possessors in behalf of the Partners, so the Partners must oblige themselves by an Instrument to indemnify the Signers.
XIV. At the annual Meeting in June all Accompts relating to the Company shall be laid before them by the Directors and Treasurer, and a major Part of the Directors, concurring with a major Part of the Company then present, may agree upon any other pules or Methods for the better observing and fulfilling the Articles aforesaid.
The Bill to be as follows, viz.
TWENTY SHILLINGS.
WE Promise for our Selves and Partners to receive this Twenty Shilling Bill of Credit, as so much Lawful Money, in all Payments, Trade and Business. Boston &c.; And after ye Expiration of Twenty Years to pay ye possessor ye Value thereof in manifactures of this Province Boston &c.;
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Note, Every Wednesday and Friday, from three to Seven a Clock Afternoon, at the Exchange Tavern in Kingstreet, the Committee will give Attendance to take in Subscriptions. And this printed Scheme may be had at the Printing House in Queenstreet.
Boston, March lOth. 1739, 40.
