Cheraw gazette and Pee Dee farmer. [volume] (Cheraw S.C.) 1838-1839, 1838-12-05
The first chartered banks y

OF respectable Standing, mas eVos oee' AZ
fused re.char,er when applied for. M.
tiona politics have never entered into Their
management; and their contractions aud
expansions can never affect The business
of the country like national bank OF large
capital ramifying inlo many States.
A considerable reformation, alteration
and improvement. would be necessary, how.
ever, in order 10 make the loIal banks
meet my views. They are at present TOO
numerous; their capitals generally TOO
small; and the variety of heir notes so
great 'ha. it is almost impossible to fix upon
the memory the character ofthe signatures
and vignettes, so as 10 avoid The danger OF
forgeries. Some Of their locations are in
convenient as repositories; it will inevitably
lead to rivalry and dissatisfaction, jealous.
les, and more than al, 10 depreciation Of
the issues ofrhe rejected banks.
propose, then, that our State lead the
way in the reform of our banking system,
and respectfully recommend the chartering
of Bank with capital of ten millions Of
dollars, allowing the existing Banks to sub.
scribe all their capital stock into it.; the re-
manning stock to be taken by Individuals,
into the details Of which II is not necessary.
| now 10 enter.
The State 10 transfer all its stock and
funds TO the Bank, and TO offer its services
to the federal government as depository o:
;ts funds, the safety and forthcoming Of
ofwhich, in the kind Of money deposited, to
be guaranteed by the Sta:e in such manner
as shall be satisfactory 10 The general gov
ernment. And, in the event of the Bank
being unable to meet the payment Of the
deposaes Of the general government, tho
State to issue sock for the amount in favor
of the government, bearing 5 per cent. in.
,erest, until the Bank is able 10 resume pay.
ment.
For these services rendered to IL gener-
al government, the notes issued by the
Bank to he received in'payment Of all its
dues and on the further condition that tho
other States prepare their Banks in like
manner and for like purposes, namely: That
each State and Territory shall designate by
law one bank, and more, if its trade and
necessities require it, Of capitals not exceed.
ing ten nor less than two millions of dollars.
as its own depository AMI the depository OF
the general government; and, II requested
by the President Of the U. States, other
Banks for that purpose. A second Bank
however, in no case to be chartered Or de.
signate1, until the capital Of The FIRST, which
shall be the maximum amount shall be en-
irely taken and so on 10 the third, fourth
! and fifth, when necessary. The notes OF oil
The Banks thus made repositories to be en-.
graved on similar paper, and TO be made to
! resemble each other as nearly as possible.
Each State shall designate 10 Congress
The particular Bank rendered as deposito-
ry; AMI the acceptance by the general gov. =
ernment shall be under an act of Congress,
and all their inc rco 'rse regulated by law.
Ifany State refuses or neglects to come
into the arrangement, the money collected
in such Slate by the general government
shall be transferred 10 depository ,ofsome
other state, nor shall the money collected
in the refusing State be received in any
thing but coin.
Thus fostered, sustained, and patronized
by the general government and guarded by
the supervisory power of the States which
guarantee their Fl 1elity, these institutions,
have no doubt, would afford as near ami.
formiiy of currency and of exchanges BY
any possibility can be arrived at. Under
such high sanctions, too, capitalists wouA
be induced to invest their funds in sucb
stocks with alacri,y and confidence; and
the rotes ofthese institutions, from the cred.
it reflected on them, would circulate so free
" and extensively as to enable them to sup.
ply the amount necessary for all the leguti.
mate uses of the country.
An increase Of banking capital in our
own States is certainly necessary to meet
the wants If industry, ond to operfsct the
works of improvement already commenced
10 say nothing of other works equally neces.
sary to be made. But, unless some ar.
rangement can be effected to convert the
unnatural hostility Of the general govern.
ment into favor to Ie state banking lnstliu-
tons, YOU may charter banks, but capitalists
will not be induced TO hazard their means
in the stocks. To borrow money, as some
of the States have done, in order to furnish
capital for their banks, is idle. lfthe Sub-
Treasury is established, Bank notes in.
stantIy become discredited, or their sphere
of usefulness is made so limited that they
will find it hazardous if not impracticable.
to loan out more than their capitals, and
their profits will be insufficient to sustain
them. The suggestions have made to
YOU are the results Of an anxious reflection
upon an intricate and all important subject
and it affords the only probable outlet which
has occurred TO me of exrication from our
J., ra..I.:. hava aS,orooxoJ