Inasmuch as railroads could not be used as capital, without a modification of their present charters, mortgages are probably the best capital that is immediately available. Supposing mortgages to be the capital, they will be put into joint stock, held by trustees, and divided into shares of one hundred dollars each. This stock may be called the PRODUCTIVE STOCK, and will be entitled to the dividends. The dividends will consist of the interest on the mortgages, and the profits of banking. The interest on the mortgages should be so high--say six or seven per cent--as to make the PRODUCTIVE STOCK worth ordinarily par of specie in the market, _independently of the profits of banking_. Another kind of stock, which may be called _Circulating Stock_, will be created, _precisely equal in amount to the_ PRODUCTIVE STOCK, and divided into shares of _one dollar each_. This _Circulating Stock_ will be represented by certificates, scrip, or bills, of various denominations, like our present bank bills--that is, _representing one, two, three, five, ten, or more shares, of one dollar each_. These certificates, scrip, or bills of the _Circulating Stock_, will be issued for circulation as currency, as our bank bills are now. In law, this _Circulating Stock_ will be in the nature of a lien on the PRODUCTIVE STOCK. It will be entitled to no dividends. Its value will consist, _first_, in its title to be received in payment of all dues to the bank; _second_, in its title to be redeemed, either in specie on demand, or in specie, with interest from the time of demand, before any dividends can be made to the bankers; and, _third_, in its title, when not redeemed with specie, to be redeemed (in sums of one hundred dollars each) by a transfer of a corresponding amount of the capital itself; that is, of the PRODUCTIVE STOCK. The holders of the _Circulating Stock_ are, therefore, sure, _first_, to be able to use it (if they have occasion to do so) in payment of their dues to the bank; _second_, to get, in exchange for it, either specie on demand, or specie, with interest from the time of demand; or, _third_, a share of the capital itself, the PRODUCTIVE STOCK; a stock worth par of specie in the market, and as merchantable as a share of railroad stock, or government stock, or any other stock whatever is now. Whenever PRODUCTIVE STOCK shall have been transferred in redemption of _Circulating Stock_, it (the PRODUCTIVE STOCK) may be itself redeemed, or bought back, at pleasure, by the bankers, on their paying its face in specie, with interest (or dividends) from the time of the transfer; and _must_ be so bought back, before any dividends can be paid to the original bankers.