Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1829-01-08
in letter aud iupractice bona tido spccie-paying

in letter and inprac,ice, bona ide specie paying
Bank.
Asto the inquiry, whether the Banks lave
ceat or traded ia any articles unauthorized by their
charters, your committee report no evidence has
teen brought before them to show that the Bank
o; NewbeGn has ever dealt in any article not
literally and strictly cornprehendeI in is char
GER. Ihst both the 8ap.f " Cape Fear and the
State Bank OF North Carolina have purcha stock
a. the Bank Of the United States; and the former
Bank Is now owner Of a considerable amount of
that stock. That said Banks were induced TO nur-
chase that s'ock, fret as ready means OF acqur-
tog fund at nj! times equal 20 specie, and when
IN tact, s?ecie vas nst atiainahle; and secondly
because, IN consequence Of the Immense capital
OF the Enite,, States Bank, il was deemed pru.
dent ami proper 20 avoid facility in paying its de-
manis, aud better 70 pay interest on its demands,
as the payment OF interest, without a profitable
invcs,rnent of their specie funds, would produce
heavy losses ca those Banks. The stock of the
hank OF the United States on which regular divi
aends We're received, afforded not ony specie
fund. but one yielding a regular profit. Your coin
nitee are satisfied, these investments were con-
erary TO charter. but were the result of the situation
OF the Banks, and the peculiar situation of the
country and the times; and from them, much good
has resulted TO the Banks and no harm 10 the
country. On this head, il IS further shown that
the State Bank of North Carolina has on differ
ent occasions, in this State. and in South Carolina
and Georgia. purchased cotton TO "a considerable a.
mount. That these purchases were made n, a
time when the Bank was greatly in need of sncc ie
TO meet the constant and heavy demands made ,,u-
onit, and when specie was not a,tainabIe; aud
were made for the purpose Of placing funds in
rev York which would be at ali times equal 10
specie.
On the inquiry. whether the Banks have cx-
acted usurous Interest," your committee report,
they have evidence, that the State Bank and
Bank OF Newbern have required applicants for
accommodation. to exchange with them an equal
amount oil Northern funds for their own notes
when their own notes were & per cent below par
and that the State Bank has taken interes, for 81
Days on note payable s3 days after date. There
- not any evidence that the Bank Of Cape Fear
has ever taken more than legal interest.
Your committee further report they have not
had any evidence that the Bank OF Newborn has
eyer bought up, or spcculated in its own notes
4, has been proven to your committee, that the
State BANK of North Carolina and the Rant n,
Cape Fear have, at different periods. purchased
their notes in The Northern markets 10 some ex.
TENT The State Bank to the amour. of 3
aud The Bank OF Cape
that these purchases were made a, a dis
count on their notes. but always at higher price
than others would give for them in the market;
ana that the Bank did so, only for the purpose OF
aRpreciating their notes and giving them greater
currency. q
froin the whole investigation, your committee
ore SATISFIED, tiiat during the years 1917 1915 and
1919, all the Banks ia \ orth Carolina in common
WIN almost all the Banks in the United States IL
sued their paper 10 amount exceeding the i'm
lis OF produce. Tha. since their error has become
manifest, from great anxiety TO avoid oppres.
fing their debtors, they have not called in their
debts to the extent they might have DONE but that
INC effect OF that indulgence has been 10 add
greater security 10 the debts o! the institution and
10 avoid much individual ruin and distress
.0ur committee are further satisfied that ,l,e
condition OF al the Banks is now much improved
and that the Bank of Cape Fear has already be-
come bona fide specie paying Bank
Sour committee recommend TO the Legislature
'opass law imposing penalty OF
percent on all the Banks OF this State, which NAV
after ,,av Of
next refuse, 90 pay specie (on demand) for their
no'es-' GEO. L. SPRUn.L.
Chr pro. tenn.