2. By the Articles of Association, all the mortgages that make up the capital of a bank, are made mutually responsible for each other; because, if any one mortgage proves insufficient, no dividend can afterwards be paid to any of the bankers (mortgagors), until that deficiency shall have been made good by the company. The effect of this provision will be, to make all the founders of a bank look carefully to the sufficiency of each other's mortgages; because no man will be willing to put in a good mortgage of his own, on equal terms with a bad mortgage of another man's, when he knows that his own mortgage will have to contribute to making good any deficiency of the other. The result will be, that the mortgages, that go to make up the capital of any one bank, _will be either all good, or all bad_. If they are _all good_, the solvency of the bank will be apparent to all _in the vicinity_; and the credit of the bank will at once be established _at home_. If the mortgages are _all bad_, that fact, also, will be apparent to everybody _in the vicinity_, and the bank is at once discredited _at home_. From the foregoing considerations, it is evident that nothing is easier than for a _good_ bank to establish its credit, _at home_; and that nothing is more certain than that a _bad_ bank would be discredited, _at home_, from the outset, and could get no circulation at all. It is also evident that a bank, that has no credit at home, could get none abroad. There is, therefore, no danger of the public being swindled by bad banks. 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.: When the capital shall consist of mortgages, it will be very easy for all the banks, in any one State, to make their solvency known _to each other_. There would be so many banks, that some _system_ would naturally be adopted for this purpose. Perhaps this system would be, that a standing committee, appointed by the banks, would be established in each State, to whom each bank in the State would be required to produce satisfactory evidence of its solvency, before its bills should be received by the other banks of the State.