Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1829-01-06

ought not to DC trusted TOO much and too long
We cannot look at the cnbarsssments of Ken
lucky, arising very much from the wild multi.
phcauoo oil her banks-we cannot recollect what
Pennsylvania has suffered from over banking, and
the psngs which the good people OF North Caro-
lima are now enduring from the same cause, with
out thanking the good fortune of Virginia, that
she too has not been subjected TO similar ca!ami-
ties. Many years ago there was a batch Of banks
brought forward in our Legislature, supported too
by some Of the highest names, (there were % or
81 banks in the same bill, was then the fashion
| 10 cry out, that there might be- bank ut each
i court-house. I'VE said all we could against this
maddenng schemc-at some risk Of sharing in
the general odium ot,thc opposition-and we shall
never cease to congratulate the good sense OF the
| Legislature, for extinguishing, after n violent
struggle this many headed monster in the cradle
| -otherwise, we might now be in the situ-
alton with the State Of North Carona-The
situation OF her people, us drawn by some Of her
members on the floor, is gloomy and almost
| irishtfu!. They cannot get along, in this despe
rate case, they say, without desperate remedy.
"With the view OF relieving their d;sresses, they
have now a bill before the Legislature "to consol-
date the several Banks of the State and TO es,ab-
shed nav bank, TO be called the Bank of the
State of North Caro!ina.''-We have before US the
Speech Of Mr.. Fisher, on the first reading of this
hi'l.-He paints with truly sombre pencil, the
debts Of the people 10 the Banks, and their ncom-
petent means for ex'ingu;shing them. He comes
to the following conclusions:
Farsi. That the Banks are rapidly calling in
their notes, and that SOON all will be withdrawn
from circulation.
Secondly. That this will no. only deprive the
state ola circulating medium--a great evil in it.
self-but that, after every note ia called in, the
people will still owe the Banks 4 l-2 millions OF
dollars. and rs much more to other persons--ina-
king in all debt of s i-2 OF millions
"Thirdfy. That owing 10 circumstances alrea-
dy stated our surplus produce will not bring into
the State suiiiciency OF money 10 meet those
debts and supply medium.
"And, that, consequently but two alternatives
a:e now presented TO the Observation-Disclosures 10
stand by and thousands Of its citizens ruined
or to step in and nterpose the arm Of protection
Which OF the two shall we adopt? Shall we
sill here with folded arms. and see ruin sweep over
the land? Shall we calmly witness an opera ion
going on, that will in the end break up and drive
from our State, thousands Of our most valuable tho
unfortunate citizense
90 He hoped not; ne believed that the people Of
NJ Carolina looked with great anxiety to This Leg.
slature for relief, and if we adjourned with
out adopting measures TO give that relief, we would
merit their eternal cXccratior"
Ia advocates the establishment; Of a new Dank
under new regulations, 10 furnish the Gil cuiating
medium TO assist the people and give time for pay
ing off their debts.
REPORT.
The Legislature having laid down, in ,he char
tiers OF the several Banks, certain fundamental
articles for the government thereof, the committee
assumed these articles a. the bases of their inves-
tigation, and proceeded accordingly to inquire, in
the brst place, whether the stock Of the several
Banks had been raised in the manner required by
their charters? The evidence received by the
committee on this point shows that the charters of
the Banks were disregarded and violated in the
very creation OF their capital.
The charter OF the Bank os Cape Fear, enacted
in 1904, authorized that corporation to raise
capital stock Of two hundred and fifty thousand
dollars and the charter of the Newbern Bank, en-
acted in the same year, authorized that Bank to
raise a stock of two hundred thousand dollars;
both charters directing the capital to be paid by
the Stockholders IN gold or silver. The under.
signed have received no evidence as 10 the mode
in which these banks got into operation II would
seem, however, that they contemplated, at the
outset, an evasion of the provisions of their char
ters. IL is in evidence 10 the rndersigned that
soon after they went into operation, they contriyed
to get possession OF nearly all the paper money!
which had been issued on the faith of the State
which, being at the time n legal tender, enabled
them TO evade demands tor specie, which they
did by thrusting this ragged paper at these who
presented their notes for specie. In 1907, twenty
five thousand dollars was added 10 the capital
SOCK OF each OF these banks; in 1914, their char
tiers were extended and they were authorised TO
increase their respective capitals to eight hundred
thousand dollars each, viz: the Newbern Bank
was authorised 10 raise addition 10 its stock of
five hundred and seventy-ive thousand dollars
ana the Bank oil Cape Fear, addition Of five
hundred and twenty five thousand dollars. Ii is
in evidence 90 the undersigned that the whole Of
this additional stock was manufactured by the
banks Themselves and that in many instances
favored individuals were permitted TO acquire
stock by subscribing their names and putting their
notes into Bank without advancing single dollar
OF actual capital. i: follows that the whole a.
mount OF the interest drawn from the people, on
the loans made on ihis fictitious capital was
'oui aud Illegal exorton The effect Of the trans
acton was the same as ii the pretended stock
holders had indiv iualIy executed their notes Of
band, without interest, 10 the amo,t of the notes
which cIey issued from the bank, and exchanged
them with the people for their notes, bearing in
tercsl and renewable every ninety days. Taking
The issues made on this fabricated capital TO be in
with those made on their former CAPT
tai, they must have put into circulation, OH the
faith OF this assumed Stock, between three and
four millions Of notes; and thus a parcel OF indi-
viduals under Che name Of Stockl pldcrs, but who
in fact, held no stock, coDrived TO exchange their
notes, without interest 10 the amount oil three
four millions, for the notes Of the people, bearing
an interest Of more than per cents and while the
property Of th' people was pledged for The pay
mcnt al The notes, they had given 20 tic stock
holder, there not dollar or an atom Of pro-
perty pledged 10 them for shc payment Of the
notes tliey had received fom the stockholders:
so that Tor The use of their notes. which, ntrinsi-
caly, were of no value of all, The stockholders OF
these two banks have drawn from the people, Ivy
way of interest. something like two hundred
thousand dollars annually.
The charter Of the State Bank enacted in 1910
authorised that corporation 10 raise capital stock
of one million six hundred thousand dollars and
directed books TO be opened 20 receive subscrip-
lions for that sum, requiring, at the same time |
that individuals subscribing for stock should pay
three fourths Of the amount subscribed in gold or
silver, and the Other fourth in the paper currency
issued on the faith Of the State Books were ac-
cordingIy o,ened. and the sum subscribed, in.