The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1837-01-27


he securities usually furnished by eahef
banks. Bal ahm bsak o6rrs beyond al
this, he liability % he whole ran rad
j. capital. amounting 70 swelEe millions o.
d0llzrs. with 81 the properly Of The enm.
psny. and The personal credit Of ~ lnd'.
sid1sl siarkholders. ss far As lhsy are
] bound under The charter. When The ca.
pilal 0f the bank increases. is notes are
slill further secured By rail road wIth
double raek. The entire extent IRON
Charleston u he Tennessee, keniurky
and Ohio line successively; together with
eli The real estate. repositories. engines
and materials apprrtainlng thereto. II
may safely Be affirmed. tha, no bank 10
Inc United Slales can offer equal secure
~.
But lis soIEency j. still further secured
by the precautions taken 70 prevent over.
banking. Is issues are limited one.ihird
below Ihase allowed other banks. II -
denied The privilege of lending. either
upnn lis own 0r the Rail Road stock. IN
I'll ihree-fonrlhs Of The capital Is actually
paid IN. and then Il can only lend To The
extent Of one half. II cannot permit the
Rail Road Compsny 10 oserdrsw--and u
Al any time II delays paving lls own
notes in specie. Il is liable To The exnrhi.
lsnl interest uf ~ per cen. To Illustrate
any specializing schemes or the Pari Of
the officers of the bank. they are forbid.
den fmn acting as brokers. and The di
rect0rs can receive no compensation Tor
iransaciing business Tor others with The
Bank.
Bnt there is vet another provision
which is particularly important inasmuch
a. il no. only operates as restraint. but
consul,s the dignity Of earh Of the states
granting the charter. The act requires
reports 10 be made annually 10 the re.
speciiye legislatures not only Of the con-
dilion Of The parent bank. but Of all The
branches. THIS gives a supervisory pow
rr 10 each Legislature: and b, requiring
4 branch 90 De 10 each state. The laws Of
each can he made efrctuaily TO operate
upon The whole corporation. Without .
branch. il would be- difficult Tor any OF
The states In ACT upon the institution; but
with that provision. not only process can
be served. but can in due course be en-.
forced BY the courts. Another salulsry
effect results from the establishment Of
branch within the state. A place Is there
by provided within your reach. ii whieh
The notes mag be redeemed; and in case
they are received al The Treasury, specie
can be demsnded for them within The H.
Iniis of the s,s,r-and the soundness Of
ths carrencs thereby tested.
3. Having thus exhibited the means
taken 10 ensure a sound currency. lee Us
pass To the last remaining consideration
are sufficient precautions taken ~ com
pei the Bank IN have the Road construct
ed!
0n this pninl there can exist moi even
a duLb,. Before the bank can be Great
ed -Igh, millions mus, firsi BIZ subscribed
tn Ihr Road Then the Road must at no
tine be suspended for year. "r The char
ter Il the hank Is lost Moreover. if an
Expenditure 81 three millions be moi made
on the Road within five years. and Of l2
millions within ten years. the charter is
forfeited But besides all this. the bank
capital rannpi BE- increased beyond q mil
lInns unit an amount equivalent To any
contemplated increase shall have been
first called IN and expended on the Road.
II cannm even then be increased beyond
SIX millions until the road reaches Ten
nessee; nor beyond nine millions until
the road reaches Kentucky; nor can il
reach twelve millions until the road is
CONSTRUCTED Ia Lexington. @.l
The rail road funds are put in charge
Of separate beard II directors. and The
payment Of their lnstatmenis by the sub.
scrIbers is secured BY their beirq subject,
in eases Of default, not only 10 forfeiture
Of wha. they have paid To the rail road. |
but also TO The bank And when II is !.
observed. that ~ The commencement The
payments on each share ia the bank will
be twenty dollars 10 advance Of the pay !.
menls Ia the rail road, this forfeiture will
he serious check. Then there can be
no sale Of bank stuck. unless The pur>
chaser charges himself with correspond. !.
ing rail road share; and the two are IN.
separately united With these precau
tons. il will be impossible Tor tle bank |
to GEL along withou, making the road.
Having thus considered the various !
pririsIons Of The charter, it is hazarding .
li',le nnw to affirm. thai the public can
suffer nothing from this 'bauk. and that
the advantages presented to North Ca.
rollna by The rood, are chesply purchas.
ed BY gran, Of the banking privileges
nos asked. Nay. ] am prepared TO adj
vance one step further, and assert, thai
The charter itself will afford a gain 10
North Carolina. II Is known to all the !!
Senators from the Western portion &c the
Staie. that the present circulation along
the route Of this road. is South Caroline