Old Mutual Banking Apk Download

A mutual bank is a cooperative financial institution owned by its depositors or customers. They include mutual organization, mutual savings banks and cooperative banking. Unlike traditional banks, which prioritize shareholder profits, mutual banks focus on serving their members' interests.[1] They reinvest profits back into the institution to benefit customers, offer a range of banking services, and often have a community-oriented approach.[2] Regulations around mutual banking vary by country.

Besides our bankers, on account of the facility to create credit not only with their own money but with that of their creditors and debtors squeeze high rates of interest from needy parties which are generally desirous of increasing production. If anyone carefully looks into the balance sheets of banking concerns it will be found that banks are making greater profits than industrial concerns. The banks get deposits at the rate of one or two percent interest and charge their customers from five to eight percent. Due to their big turnover they make exorbitant profits. We have seen that some of the deposit banks in U. S. A. and U. K. have made enormous profits in prewar times from 50% to 150% or over.

Download 🔥 https://tiurll.com/2y5U6D 🔥

The object of the mutualist bank is to advance money on sound personal guarantee on their future earning or production, even without the mortgage of property at the rate of one percent interest per annum. This amount of interest covers the whole expenditure of the establishment and leaves something to be carried forward to reserve funds. Besides, loans on low interest would give impetus to honest industry and it will also help to increase employment by creating efficient demand. It is very difficult in these days to borrow money from banks on high interest for honest and enterprising concerns; even on pawning the securities or estates and so what to talk of owners of small workshops and craftsmen, who have very little of fluid capital and hardly sufficient capital to pledge securities. In order to give some idea of how a mutualist bank, giving loans on nominal interest of one percent can be successfully run we have undertaken to publish this book. We hope that it will be widely read and we have priced it low, so that it will be within easy means of students of economics and small producers to purchase a copy.

Any community that embraces members of all trades and professions may totally abolish the use of hard money, and of paper based on hard money, substituting mutual money in its stead; and they may always substitute mutual money in the stead of hard money and bank bills, to the precise extent of their ability to live within themselves on their own resources.

It may be asked, "What advantage does mutual banking hold out to individuals who have no real estate to offer in pledge?" We answer this question by another: What advantage do the existing banks hold out to individuals who desire to borrow, but are unable to offer adequate security? If we knew of a plan whereby, through an act of the legislature, every member of the community might be made rich, we would destroy this petition and draw up another embodying that plan. Meanwhile, we affirm that no system was ever devised so beneficial to the poor as the system of mutual banking; for if a man having nothing to offer in pledge, has a friend who is a farmer, or other holder of real estate, and that friend is willing to furnish security for him, he can borrow money at the mutual bank at a rate of 1 per cent interest a year; whereas, if he should borrow at the existing banks, he would be obliged to pay 6 per cent. Again, as mutual banking will make money exceedingly plenty, it will cause a rise in the rate of wages, thus benefiting the man who has no property but his bodily strength; and it will not cause a proportionate increase in the price of the necessaries of life: for the price of provisions, etc., depends on supply and demand; and mutual banking operates, not directly oh supply and demand, but to the diminution of the rate of interest on the medium of exchange.

We have remarked, that when the trader, who does the out-of-town business of the inhabitants, buys coffee, sugar, etc., he does not pay cash for them, but buys them at, say, six months credit. Now, the existing system of credit causes, by: its very nature, periodical crises in commercial affairs. When one of these crises occurs, the trader will say to the city merchant, "I owe you so much for groceries; but I have no money, for times are hard: I will give you, however, my note for the debt." Now, we leave it to the reader, would not the city merchant prefer to take the mutual money of the town to which the trader belongs, money that holds real estate and produce in that town, rather than the private note of a trader who may fail within a week?

If, under the existing system, all transactions were settled on the spot in cash, things might be different; but as almost all transactions are conducted on the credit system, and as the credit system necessarily involves periodical commercial crises, the mutual money will find very little difficulty in ultimately forcing itself into general circulation. The Mutual Bank is like the stone cut from the mountain without hands, for let it be once established in a single village, no matter how obscure, it will grow till it covers the whole earth. Nevertheless, it would be better to obviate all difficulty by starting the Mutual Bank on a sufficiently extensive scale at the very beginning.

The bill of a Mutual Bank is not a standard of value, since it is itself measured and determined in value by the silver dollar. If the dollar rises in value, the bill of the Mutual Bank rises also, since it is receivable in lieu of a silver dollar. The bills of a Mutual Bank are not standards of value, but mere instruments of exchange; and as the value of mutual money is determined, not by the demand and supply of mutual money, but by the demand and supply of the precious metals, the Mutual Bank may issue bills to any extent, and those bills will not be liable to any depreciation from excess of supply. And, for like reasons, mutual money will not be liable to rise in value if it happens at any time to be scarce in the market. The issues of mutual money are therefore susceptible of any contraction or expansion which may be necessary to meet the wants of the community, and such contraction or expansion cannot by any possibility be attended with any evil consequences whatever: for the silver dollar, which is the standard of value, will remain throughout at the natural valuation determined for it by the general demand and supply of gold and silver throughout the whole world.

The bills of Mutual Banks act merely as a medium of exchange: they do not and cannot pretend to be measures or standards of value. The medium of exchange is one thing; the measure of value is another; and the standard of value still another. The dollar is the measure of value. Silver and gold, at a certain degree of fineness, are the standard of value. The bill of a Mutual Bank is a bill of exchange, drawn by all the members of the mutual banking company upon themselves, indorsed and accepted by themselves, payable at sight, but only in services and products. The members of the company bind themselves to recieve their own money at par; that is, in lieu of as many silver dollars as are denoted by the denomination on the face of the bill. Services and products are to be estimated in dollars, and exchanged for each other without the intervention of specie[5].

The main objections against mutual banking are as follows: 1. It is a novelty, and therefore a chimera of the inventor's brain; 2. It is an old story, borrowed from provincial history, and therefore of no account!

But all money is not the same money. There is one money of gold, another of silver, another of brass, another of leather, and another of paper: and there is a difference in the glory of these different kinds of money. There is one money that is a commodity, having its exchangeable value determined by the law of supply and demand, which money may be called (though somewhat barbarously) merchandise-money; as for instance, gold, silver, brass, bank-bills, etc.; there is another money, which is not a commodity, whose exchangeable value is altogether independent of the law of supply and demand, and which may be called mutual money.

Personal credit is one thing; real credit is another and a very different thing. In one case, it is the man who receives credit; in the other, it is the property, the thing. Personal credit is in the nature of partnership; real credit is in the nature of a sale, with a reserved right of repurchase under conditions. By personal credit, two men or more are brought into voluntary mutual relations; by real credit, a certain amount of fixed property is transformed, under certain conditions and for a certain time, into circulating medium; that is, a certain amount of engaged capital is temporarily transformed into disengaged capital.

The existing organization of credit is the daughter of hard money, begotten upon it incestuously by that insufficiency of circulating medium which results from laws making specie the sole legal tender. The immediate consequences of confused credit are want of confidence, loss of time, commercial frauds, fruitless and repeated applications for payment, complicated with irregular and ruinous expenses. The ultimate consequences are compositions, bad debts, expensive accommodation-loans, lawsuits, insolvency, bankruptcy, seperation of classes, hostility, hunger, extravagence, distress, riots, civil war, and, finally, revolution. The natural consequences of mutual banking are, first of all, the creation of order, and the definite establishment of due organization in the social body; and ultimately, the cure of all the evils which flow from the present incoherence and disruption in the relations of production and commerce.

The FDIC is proud to be a pre-eminent source of U.S. banking industry research, including quarterly banking profiles, working papers, and state banking performance data. Browse our extensive research tools and reports. 17dc91bb1f