Ryckman, who on seeing it objected entirely to the principle which it
embodied. Subsequent consideration has convinced the Direction that the
statement was in that respect erroneous, and that the transactions of
previous years ought not to affect the operations of this, in the way
proposed in the statement. It should be borne in mind that the deficit
before spoken of is not a debt in itself, but is the difference between
the amount of our debts and our joint stock, and the nominal value of
our assets. The Association is not bound to pay the sum or to make it
good in any way. It pays interest upon it, but can never be called on
to pay the principal. The sum total of the actual liabilities of the
Association, that is, of debts and obligations which it is bound at
some time or other to pay, is much exceeded by the cost value of its
property. Its joint stock, which it is not bound to pay, much exceeds
the deficit we are speaking of, so that clearly the deficit is not to
be paid, but only the interest upon it, that is, five per cent per
annum forever. So that it is evident that the principal is by no means
chargeable upon the industry of the present or of future years, but
only the interest. And even if the said deficit were a debt to be paid
it would still, as we conceive, be perfectly just and legitimate to
issue stock for its amount to those members by whose labors it was made
up.
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