The fulfilment of all these obligations, on the part of the bank, is secured by the fact that the capital and all the resources of the bank are in the hands of trustees, who are legally bound--before making any dividends to the bankers--to redeem all paper in the manner mentioned; and also to buy back all PRODUCTIVE STOCK that shall have been transferred in redemption of the circulation. 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. Although the banks, under this system, make no absolute promise to pay specie _on demand_, the system nevertheless affords a much better _practical_ guaranty for specie payments, than the old specie paying system (so called); and for these reasons, viz: 1. The banks would be so universally solvent, and so universally known to be solvent, that no runs would ever be made upon them for specie, through fear of their insolvency. They could, therefore, maintain specie payments with much less amounts of specie, than the old specie paying banks (so called) could do. 2. As there would be no fears of the insolvency of the banks, and as the paper would be more convenient than specie for purposes of trade, bills would rarely be presented for redemption--otherwise than in payment of debts due the banks--except in 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. [D] There would always be a plenty of specie for sale, in the seaports, as merchandise. 3. The banks would probably find it for their interest, as promoting the circulation of their bills, to pay, at all times, such _small_ amounts of specie, as the public convenience might require. 4. If there should be any suspensions of specie payments, they would be only temporary ones, by here and there a bank separately, and not by all the banks simultaneously, as under the so called specie paying system. No general public inconvenience would therefore ever be felt from that cause.