The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1838-10-05

Because 1t is a bad policy TO keep debt
outstanding aud pay interest on Il when the
debtor has money 10 pay II with-especial.
~ when he has so much money that he is
troubled TO devise a safe plan for investing
1t. .. II is bad policy TO loan the public
money at a per cent. as much Of this was
proposed to-be lent (see Report Of Com.
mit,ee of 20 } aud pay an interes, of per
cent. on State debt. 3. necessity here.
after should require the State 10 have IN
hand The amount OF her debt, it is easier TO
borrow il again than IT would be TO collect
it from debtors. 40 matter how solvent. 4.
There was no probability c, the States
needing II, and nothing would create need
Of II bu, the grossest imprudence-an i'm.
prudence which vas as likely TO lose the
money If on hand, or the debt II loaned out,
as il was 10 create this necessity.
Such reasons prevailed over the House,
and accordingly law was passed TO pay
off the debt. In the Senate it passed with
out obieclon--.n the House Of Commons
only one member voted against II THIS Is
Que Of the laws passed on the " surplus. -
Dare any one assert II IS giving away the
peoples money The law has been exc
cuied and our State is fre5 Fl dtbt.
I'd dFereaee.-The resolutions OF NJ.
Hoke, contained no provision for enlarg,ng
the Capital Of the Bauk ni the State. The
report Of the Committee Of % was accom-.
panied by Bill ior that purPose-Qhe dc.
tails stated IN my Ne. 81
That Bill was rejected and for these rea
sons. /. The Bank capital, some believed,
ought not to be increased al all. Others
thought 1t might be safely done, SO as 10
give the Bank Of Cape Fear capital
as large as that Of the :" Bank Of the State, =
/ bot rot more. . Some again, believed that
"a Bagk Charter - "priedie idU IN the
meaning OF our Constitution, which iorblds
/ the Legislature 10 pass such laws without
IA previous notice of the application Ind
! been published. =. There was no STATE
( policy, no good cause requiring the Bank
/ # the State to be half million stronger
T 'bau the Bank Of Cape Fear, nor any valid
reason for making the States interest ~
/ aai Bank greater than IN ID" other Bark.
! /. The stockholders Of the Bank had not
petilIoned for this amendment Of their
Charter-tbe Assembly had no night 10
+ force it upon them, aud they might no, as
i sent TO It. Whether they would do 80
could not be certainly known until after she
adjournment Of the Assembly ard It ihcy
reluscd this sum $500 ,00O) would remain
u deposite until the meeting Of the next
Assembly, and the State receive no inyer
! 5, for 20 mouths.
5. 1.-THE Report Tor Bill OF the Senate
we're passed Il was PLAIN that lhc Bank must
REJECT The offer unless II was put 81 their
Duwer to postpone the period at which the
State was 10 be entitled TO draw dividends.
1t Is principle OF Banks to consult their
own interest, and ic this Bill 1t was their
interest 10 refuse their concurrence -
Because the market pnce Of The Stock
was ID per cent. above par and the 81,
proposed to take i a, par. THIS premium
IN 100000 amounted 10 SO 900.
Because BY rejecting this subscription
he Bank nigh, have the u4s Of the money
Tor 20 months without interest.
Tbs amounted 10 10 per cen,. or $50.
000:-
Because the Bill proposed TO pay Cor the
stock by instruments at different periods,
bat ~ case the payments were made a.
early as AprlI, 1897 the Bank was 10 pay
discount at the rate of 6 per cent. year.
This amounted to about s. GOO.
The aggregate amount OF these sums
was Si3JG00--a temptation strong enough
10 prevent any Bank from permitting the
State 90 increase her shares.
6. Ii these advantages 10 the STATE, were
contingent, and TIE Bank iar that reason
might possibly accep, the offer; as they
constituted the principal inducements ior
the State 70 make the oifar; The confiHgea
81 should make The Assembly hesitate N
dong H. SuPpos,ng that the market prlce
II tie stock was above rs real value, and
that The Bank on that account would TAKE
the subscuptlon--it was clear, that upon
that supposliion The State should not aAKEu.
7. II the Stock was really ~0rih the pre-.
mum ); bore, then It was 50 plainly the IN.
iefest Of the Bank, 20 refuse thetr aseen, 20
me b'h. Cor the reasons already gwen,
that Their assent to ,hl paynert Of such a
Price for The privilege OF eniariyiup their
Capital, and increasing the shares ot III.
State and the other poaefs conferred by the
Bill, might well give rise to suspicious, that
the Institution bad reasons for ii-whch
had not been disclosed TO the public, and
that those privileges sefc such as State
ought poi 70 sell at aHy prize.
5. The Bill gave The State TOO linlo pow.
er 10 the Bank. for IFS stock; for whilst
North Caroiinn would own one haif RI the