A New Banking System
A New Banking System
A New Banking System
[H]
[G]
[D]
[F]
[E]
[C]
[B]
[A]
[I] [Pg
[Pg 77]
76]
75]
74]
73]
72]
71]
70]
69]
68]
67]
66]
65]
64]
63]
62]
61]
60]
59]
58]
57]
56]
55]
54]
53]
52]
51]
50]
49]
48]
47]
46]
45]
44]
43]
42]
41]
40]
39]
38]
37]
36]
35]
34]
33]
32]
31]
30]
29]
28]
27]
26]
25]
24]
23]
22]
21]
20]
19]
18]
17]
16]
15]
14]
13]
12]
11]
10]
9]
8]
7]
6]
5]
4]
3]
The Project Gutenberg EBook of A New Banking System, by Lysander Spooner
This eBook is for the use of anyone anywhere at no cost and with
almost no restrictions whatsoever. You may copy it, give it away or
re-use it under the terms of the Project Gutenberg License included
with this eBook or online at www.gutenberg.net
Language: English
*** START OF THIS PROJECT GUTENBERG EBOOK A NEW BANKING SYSTEM ***
A
NEW BANKING SYSTEM:
THE
NEEDFUL CAPITAL FOR REBUILDING
THE BURNT DISTRICT.
BY LYSANDER SPOONER.
BOSTON:
1 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
Printed by
WARREN RICHARDSON,
112 Washington St
CONTENTS.
PAGE
CHAPTER I.—A New Banking System, 5
CHAPTER II.—Specie Payments, 12
CHAPTER III.—No Inflation of Prices, 21
CHAPTER IV.—Security of the System, 35
CHAPTER V.—The System as a Credit System, 41
CHAPTER VI.—Amount of Currency Needed, 48
CHAPTER VII.—Importance of the System to
59
Massachusetts,
CHAPTER VIII.—The True Character of the "National"
70
System,
CHAPTER IX.—Amasa Walker's Opinion of the Author's
75
System,
2 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
time.
CHAPTER I.
A NEW BANKING SYSTEM.
3 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
The use of this real estate as banking capital would break up all
monopolies in banking, and in all other business depending
upon bank loans. It would diffuse credit much more widely than
it has ever been diffused. It would reduce interest to the lowest
rates to which free competition could reduce it. It would give
immense activity and power to industrial and commercial
enterprise. It would multiply machinery, and do far more to
increase production than any other system of credit and
currency that has ever been invented. And being furnished at
low rates of interest, would secure to producers a much larger
share of the proceeds of their labor, than they now receive.
All this capital can be brought into use as fast as the titles to
real estate can be ascertained, and the necessary papers be
printed.
The system would not inflate prices above their true and natural
value, relatively to specie; for no possible amount of paper
4 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
The system would not tend to drive specie out of the country;
although very little of it would be needed by the banks. It would
rather tend to bring specie into the country, because it would
immensely increase our production. We should, therefore, have
much more to sell, and much less to buy. This would always give
a balance in our favor, which would have to be paid in specie.
The following is
5 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
6 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
Such are the general principles of the system. The details are
too numerous to be given here. They will be found in the
"Articles of Association of a Mortgage Stock Banking Company,"
which the author has drawn up and copyrighted.
CHAPTER II.
SPECIE PAYMENTS.
7 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
those cases where the holders desired to invest their money; and
would therefore prefer a transfer of PRODUCTIVE STOCK, to a
payment in specie. If they wanted specie for exportation, they
would buy it in the market (with the bills), as they would any
other commodities for export.[D] It would, therefore, usually be
only when they wanted an investment, and could find none so
good as the PRODUCTIVE STOCK, that they would return their bills
for redemption. And then they would return them, not really for
the purpose of having them redeemed with specie, but in the
hope of getting a transfer of PRODUCTIVE STOCK, and holding it
awhile, and drawing interest on it.
For the reasons now given, the system is practically the best
specie paying system that was ever invented. That is to say, it
would require less specie to work it; and also less to keep its
bills always at par with specie. In proportion to the amount of
currency it would furnish, it would not require so much as one
dollar in specie, where the so called specie paying system would
require a hundred. It would also, by immensely increasing our
8 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
Thus under the system now proposed, the real estate and
railroads of the United States, at their present values, are
capable of furnishing twenty thousand millions
($20,000,000,000) of paper currency; and furnishing it
constantly, and without fluctuation, and every dollar of it will
have an equal market value with gold. The contracts or
certificates comprising it, can always be fulfilled to the letter;
that is, the capital itself, (the PRODUCTIVE STOCK,) represented
9 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
10 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
Suppose, now, that these notes of Sam Jones, and Jim Smith, and
Bill Nokes, for five dollars, were the only currency allowed by
law; and that they were worth in the market but two cents on
the dollar. And suppose that the few holders of these notes,
wishing to make the most of them, at the expense of the rights of
everybody else, should keep up a constant howl for specie
payments; and should protest against any issue of the notes of
the Astors, the Stewarts, and the Vanderbilts, upon the ground
that such issue would inflate the currency, and postpone specie
payments! What would we think of men capable of uttering such
absurdities? Would we in charity to their weakness, call them
idiots? or would we in justice to their villainy, denounce them as
impostors and cheats of the most transcendent and amazing
impudence? And what would we think of the wits of forty millions
11 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
CHAPTER III.
NO INFLATION OF PRICES.
SECTION 1.
12 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
13 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
14 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
SECTION 2.
15 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
reduce gold below its only true and natural value, viz.: its value
as a metal, for uses in the arts. The paper cannot reduce the
gold below this value, because the paper does not come at all in
competition with it for those uses. We cannot make a watch, a
spoon, or a necklace, out of the paper; and therefore the paper
cannot compete with the gold for these uses.
That gold and silver now have, and can be made to have, no
higher value, as a currency, than they have as metals for uses in
the arts, is proved by the fact that doubtless not more than one
tenth, and very likely not more than a twentieth, of all the gold
and silver in the world (out of the mines), is in circulation as
currency. In Asia, where these metals have been accumulating
from time immemorial, and whither all the gold and silver of
Europe and America—except what is caught up, and converted
into plate, jewelry, &c.—is now going, and has been going for
the last two thousand years, very little is in circulation as money.
For the common traffic of the people, coins made of coarser
metals, shells, and other things of little value, are the only
currency. It is only for the larger commercial transactions, that
gold and silver are used at all as a currency. The great bulk of
these metals are used for plate, jewelry, for embellishing temples
and palaces. Large amounts are also hoarded.
But that gold and silver coins now stand, and that they can be
made to stand, as currency, only at their true and natural values
as metals, for uses in the arts; and that neither the use, nor
disuse, of any possible amount of paper currency, in any one
country—the United States, for example—can sensibly affect
their values in that country, or raise them above, or reduce them
below, their values in the markets of the world, the author hopes
to demonstrate more fully at a future time, if it should be
necessary to do so.
SECTION 3.
16 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
currency.
The consequence is, that the people of all those nations, that
have but little money, are engaged mostly in agriculture. Very
few of them are manufacturers. Being mostly engaged in
agriculture, each one producing the same commodities with
nearly all the others; and each one producing all he wants for
his own consumption, there is no market, or very little market,
for agricultural commodities; and such commodities,
consequently, bear only a very small price.
17 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
18 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
SECTION 4.
On the other hand, all kinds of real estate fall in price under a
scanty currency, for these reasons, to wit: Agricultural real
estate falls, because, manufactures having been in a great
measure stopped, and the manufacturers driven into
agriculture, there is little market for agricultural products, and
those products bring only a small price. Manufacturing real
estate falls, because, manufacturing industry having become
impossible for lack of money, manufacturing real estate is lying
dead, or unproductive. Commercial real estate falls, because
commerce, the exchange and distribution of agricultural and
manufactured commodities, has ceased. Railroads fall in price,
19 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
By using their real estate as banking capital, they can not only
get an income from it, in the shape of interest on money, but by
20 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
It is, therefore, mere suicide for the holders of real estate, who
have the power of supplying an indefinite amount of capital for
mechanics and merchants—and who can make themselves and
everybody else rich by supplying it—to suffer that power to be
usurped by any such small body of men as those who now
monopolize it, through mere favoritism, corruption, and tyranny,
on the part of the government, and not because they have any
claim to it.
CHAPTER IV.
SECURITY OF THE SYSTEM.
What guarantee, then, have the public, for the sufficiency of the
mortgages? They have these, viz.:
21 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
A bank that is well founded, and that has established its credit
at home, has so many ways of establishing its credit abroad, that
there is no need that they be all specified here. The mode that
seems most likely to be adopted, is the following, viz.:
22 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
In this way, all the banks of each State might unite to establish a
joint agency in every large city, throughout the country, for the
redemption of all their bills. In doing so, they would not only
certify, but make themselves responsible for, the solvency of
each other's bills.
23 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
Where railroads were used as capital, all the banks in the United
States could form one association, of the kind just mentioned, to
establish agencies at all the great commercial points, for the
redemption of their bills.
Of course each railroad would receive the bills of all other roads,
for fare and freight.
CHAPTER V.
THE SYSTEM AS A CREDIT SYSTEM.
SECTION 1.
24 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
But the real estate and railroads of the country are probably
worth twenty thousand millions of dollars ($20,000,000,000).
This latter sum is fifty-six times greater than the former; and is
all capable of being loaned in the form of currency.
25 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
Under the proposed system, the real estate and railroads of the
country are capable of furnishing one hundred thousand
(100,000) banks, having each a capital of two hundred thousand
dollars ($200,000); or it is capable of furnishing one hundred
and twelve thousand nine hundred and ninety-four (112,994)
banks, having each a capital ($177,000), equal, on an average,
to the capital of the present "National" banks. That is, this
system is capable of furnishing fifty-six times as many banks as
the "National" system, having each the same capital, on an
average, as the "National" banks.
Under the proposed system, we could have one bank for every
five hundred (500) persons; each bank being authorized to issue
$200,000; or $23,000 each more than the "National" banks.
SECTION 2.
But the proposed system has one other feature, which is likely to
be of great practical importance, and which gives it a still
further superiority—as a credit system—over the so-called specie
paying system. It is this:
26 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
The old specie paying system (so called) could add to the
loanable capital of the country, only by so much currency as it
could keep in circulation, over and above the amount of specie
that it was necessary to keep on hand for its redemption. But the
amount of loanable capital which the proposed system can
supply, hardly depends at all upon the amount of its currency
that can be kept in circulation. It can supply about the same
amount of loanable capital, even though its currency should be
returned for redemption immediately after it is issued. It can do
this, because the banks, by paying interest on the currency
returned for redemption—or, what is the same thing, by paying
dividends on the PRODUCTIVE STOCK transferred in redemption of
the currency—can postpone the payment of specie to such time
as it shall be convenient for them to pay it.
For example, suppose the banks should pay six per cent. interest
on currency returned for redemption—(or as dividends on the
PRODUCTIVE STOCK transferred in redemption of such
currency)—they could then loan their currency at nine per cent.
and still make three per cent. profits, even though the currency
loaned should come back for redemption immediately after it was
issued.
But this is not all. Even though the banks should pay, on
currency returned for redemption, precisely the same rate of
interest they received on loans—say six per cent.—they could
still do business, if their currency should, on an average,
continue in circulation one half the time for which it was loaned;
for then the banks would get three per cent. net on their loans,
and this would make their business a paying one.
But the banks would probably do much better than this; for bank
27 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
CHAPTER VI.
28 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
We, as yet, know very little what wealth mankind are capable of
creating. It is only within a hundred years, or a little more, that
any considerable portion of them have really begun to invent
machinery, and learned that it is only by machinery that they
can create any considerable wealth. But they have not yet
learned—at least, they profess not to have learned—that money
is indispensable to the practical employment of machinery; that
it is as impossible to operate machinery without money, as it is to
operate it without wind, water, or steam. When they shall have
learned, and practically accepted, this great fact, and shall have
provided themselves with money, wealth will speedily become
universal. And it is only those who would deplore such a result,
or those who are too stupid to see the palpable and necessary
connection between money and manufacturing industry, who
resist the indefinite increase of money.
29 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
All these things attest the perfect knowledge that men have, that
a money capital is indispensable to manufacturing industry;
whatever assertions they may make to the contrary.
30 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
31 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
32 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
33 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
And yet this man, and his policy, represent the government and
its policy. The president keeps him in office, and Congress
sustain him in his measures.
34 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
CHAPTER VII.
IMPORTANCE OF THE SYSTEM TO
MASSACHUSETTS.
SECTION 1.
35 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
agriculture, and at the same time forbid all but a favored few to
own land, or have cattle, horses, seed corn, seed wheat, or
agricultural implements. It is just as absurd as it would be to
give bounties to encourage navigation, and at the same time
forbid all but a favored few to have ships.
So great are the natural advantages of the South and West over
those of Massachusetts, that it is doubtful how many of these
men can be persuaded to remain, by all the inducements that
capital can offer. But without such inducements it is certain they
will all go.
36 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
SECTION 2.
When this shall have been done, she will have but $44,106,686
left. And as this will be more than three times her just
proportion on a basis of population, and nearly twice her just
share on a basis of wealth, there is no knowing how soon the
remaining excess over her just share may be withdrawn.[G]
37 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
SECTION 3.
38 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
But the whole is not yet told. The present "National" system is so
burdened with taxes and other onerous conditions, that no
banking at all can be done under it, except at rates of interest
that are two or three times as high as they ought to be; or as
they would be under the system proposed.
In the first place, they are required, for every $90 of circulation,
to invest $100 in five or six per cent. government bonds.[I] This
alone is a great burden to all that class of persons who want
their capital for active business. It amounts to actual prohibition
upon all whose property is in real estate, and therefore not
convertible into bonds. And this is a purely tyrannical provision,
inasmuch as real estate is a much safer and better capital than
the bonds. Let us call this a burden of two per cent. on their
circulation.
Here is another burden equal to at least one and a half per cent.
39 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
on their circulation.
Here, then, are taxes and burdens equal to seven and a half per
cent. on their circulation.
40 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
and for which they are thus enabled to get, say, fifty per cent.
more than they are worth.
Thus the joint effect of the bank system and the tariff is, first, to
deprive the mass of the people of the money capital that would
enable them to manufacture for themselves; and, secondly, to
compel them to pay extortionate prices for the few manufactures
that are produced.
CHAPTER VIII.
THE TRUE CHARACTER OF THE "NATIONAL"
SYSTEM.
SECTION 1.
41 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
Under the "National" system there are less than 2,000 banks.
But let us call them 2,000.
And this one bank is, in law, a person; and only a single person.
In lending money, it acts, and can act, only as a unit. Its several
stockholders cannot act separately, as so many individuals, in
lending money.
42 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
But the "National" system says, not only that the money lender
shall be a soulless person, and one having only a little money to
lend, but that he shall also have the whole field—a field of
10,000 borrowers—entirely to himself!
It says that this soulless person shall have this whole field to
himself, notwithstanding he has so little money to lend, and
notwithstanding there are many other persons standing by,
having, in the aggregate, fifty times as much money to lend as
he; and desiring to lend it at one half, or one third, the rates he
is demanding, and extorting!
SECTION 2.
43 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
for himself; and that all the rest of the four hundred shall be
compelled to labor for this one, at such occupations, and for
such wages, as he shall see fit to dictate.
44 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
CHAPTER IX.
AMASA WALKER'S OPINION OF THE AUTHOR'S
SYSTEM.
These extracts are given to show the spirit and principle of his
article, and the kind of arguments he employs against all paper
45 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
Yet he says:—
He also says:—
46 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
FOOTNOTES
47 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
*** END OF THIS PROJECT GUTENBERG EBOOK A NEW BANKING SYSTEM ***
Creating the works from public domain print editions means that no
one owns a United States copyright in these works, so the Foundation
(and you!) can copy and distribute it in the United States without
permission and without paying copyright royalties. Special rules,
set forth in the General Terms of Use part of this license, apply to
copying and distributing Project Gutenberg-tm electronic works to
protect the PROJECT GUTENBERG-tm concept and trademark. Project
Gutenberg is a registered trademark, and may not be used if you
charge for the eBooks, unless you receive specific permission. If you
do not charge anything for copies of this eBook, complying with the
rules is very easy. You may use this eBook for nearly any purpose
such as creation of derivative works, reports, performances and
research. They may be modified and printed and given away--you may do
practically ANYTHING with public domain eBooks. Redistribution is
subject to the trademark license, especially commercial
redistribution.
48 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
1.D. The copyright laws of the place where you are located also govern
what you can do with this work. Copyright laws in most countries are in
a constant state of change. If you are outside the United States, check
the laws of your country in addition to the terms of this agreement
before downloading, copying, displaying, performing, distributing or
49 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
1.E.1. The following sentence, with active links to, or other immediate
access to, the full Project Gutenberg-tm License must appear prominently
whenever any copy of a Project Gutenberg-tm work (any work on which the
phrase "Project Gutenberg" appears, or with which the phrase "Project
Gutenberg" is associated) is accessed, displayed, performed, viewed,
copied or distributed:
This eBook is for the use of anyone anywhere at no cost and with
almost no restrictions whatsoever. You may copy it, give it away or
re-use it under the terms of the Project Gutenberg License included
with this eBook or online at www.gutenberg.net
1.E.6. You may convert to and distribute this work in any binary,
compressed, marked up, nonproprietary or proprietary form, including any
word processing or hypertext form. However, if you provide access to or
distribute copies of a Project Gutenberg-tm work in a format other than
"Plain Vanilla ASCII" or other format used in the official version
posted on the official Project Gutenberg-tm web site (www.gutenberg.net),
you must, at no additional cost, fee or expense to the user, provide a
copy, a means of exporting a copy, or a means of obtaining a copy upon
50 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
- You pay a royalty fee of 20% of the gross profits you derive from
the use of Project Gutenberg-tm works calculated using the method
you already use to calculate your applicable taxes. The fee is
owed to the owner of the Project Gutenberg-tm trademark, but he
has agreed to donate royalties under this paragraph to the
Project Gutenberg Literary Archive Foundation. Royalty payments
must be paid within 60 days following each date on which you
prepare (or are legally required to prepare) your periodic tax
returns. Royalty payments should be clearly marked as such and
sent to the Project Gutenberg Literary Archive Foundation at the
address specified in Section 4, "Information about donations to
the Project Gutenberg Literary Archive Foundation."
- You provide a full refund of any money paid by a user who notifies
you in writing (or by e-mail) within 30 days of receipt that s/he
does not agree to the terms of the full Project Gutenberg-tm
License. You must require such a user to return or
destroy all copies of the works possessed in a physical medium
and discontinue all use of and all access to other copies of
Project Gutenberg-tm works.
- You comply with all other terms of this agreement for free
distribution of Project Gutenberg-tm works.
1.F.
51 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
1.F.4. Except for the limited right of replacement or refund set forth
in paragraph 1.F.3, this work is provided to you 'AS-IS' WITH NO OTHER
WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
WARRANTIES OF MERCHANTIBILITY OR FITNESS FOR ANY PURPOSE.
1.F.6. INDEMNITY - You agree to indemnify and hold the Foundation, the
trademark owner, any agent or employee of the Foundation, anyone
providing copies of Project Gutenberg-tm electronic works in accordance
with this agreement, and any volunteers associated with the production,
promotion and distribution of Project Gutenberg-tm electronic works,
harmless from all liability, costs and expenses, including legal fees,
that arise directly or indirectly from any of the following which you do
or cause to occur: (a) distribution of this or any Project Gutenberg-tm
work, (b) alteration, modification, or additions or deletions to any
52 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
53 of 54 12/09/2010 04:29 PM
The Project Gutenberg eBook of A New Banking S... http://www.gutenberg.org/files/34187/34187-h/3418...
Please check the Project Gutenberg Web pages for current donation
methods and addresses. Donations are accepted in a number of other
ways including including checks, online payments and credit card
donations. To donate, please visit: http://pglaf.org/donate
Most people start at our Web site which has the main PG search facility:
http://www.gutenberg.net
54 of 54 12/09/2010 04:29 PM