ABSTRACT
Morethananyotheractorsontheeconomicsceneexceptgovernmentitself,corporationsarecreaturesofpolicysince,being artificial,theyderivetheirpowersfromthelawsthatcreate andlimitthem.
Itisoftensaidthatthecorporation,thoughnotnatural,was necessary,forrapidindustrialdevelopmentcouldnothave takenplacewithoutthismeansoforganizingthefundsofmany investorsintolargeblocksofcapital.Butthereisnoreason whyasimilaragglomerationofcapitalcouldnothavebeen organizedotherwise,whysavingsbanks,forinstance,couldnot haveamalgamatedlargenumbersofsmalldepositsintoafew largeloanstounincorporatedbusinesses.Inanyevent,the chiefattributesthatnowdefineacorporation-itsindefinite lifeandthelimitedliabilityofitsowners-couldhavebeen graftedontothepartnershipform,andinsomeplaceshave been.Besides,earlycorporationsusuallylackedtheseprivileges;theircharterswerevaluedforthespecificsubsidiesand occasionalmonopolypowerstheygranted.
