The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1841-04-15
From The Fayetteville ot,errer, alst sh.
CAUSE OF SUSPENSION.

CAUSE OF SUSPENSION.
In noticing the suspension OF the Banks
OF this State, our respected neighbor of the
Cheraw Gazette endeavors to account for
II, but does 50 IN a manner so unjust (unin
tentIonally we doubt not, TO those insiitu
tons, that We sci constrained TO say few
words in correction.
The first cause suggested by the Gazette,
IS, that our Bank capital being less IN pro.
portion 10 the demand than that Of South
Carolina, our Banks may " find II necessary
Tor the accommodation Of the public, 10 is.
sue a larger amount Of bills in proportion
to their capital" An examination into the
facts will show that an excessive issue u
notes is among the last reasons which can
properly be assigned for the suspension IN
thls Stale. By the charters of our Banks,
they are allowed TO issue in notes, treble
the amount of their capital stock, Why
was this privilege 80 extended Surely
because, when the charters we're granted,
80 recently as in l>35-'6,) It was admit.
ted to 5e safe 10 allow such proportional
issue. Bu; what IS the fact A, only one
period sluce their incorporation, have our
Banks had as much as one dollar Of issue
for Que Of capital. AZ The date Of the las,
return 10 which We have access, they bad
only &c per cent. OF their capital stock in
circulation. THIS fact shows, what is wei
known IN this State, that overl.sues have
not been the cause Of suspension here.
A comparison of the assets and liabilities
Of the Banks Of this Stale with those OF the
Banks Of 5. Carolina viii show most favo
rably for the former. From the Official
returns We make the following abstracts.
We iahe the returns immediately proceed
ing the FRS; suspension IN 1881, and the
latest 10 our possession, viz; Nov. 1888,
al. Oct. 1890
5 NoETH CAROLINA BASKs
Arailoble Immediate
Capital. Asssts liabilities
Dec. 1876 S2525.0oO Sl.745,762 Si.s6s, 6ls
Nov. le3S, 3,l0J,sj0 l,377,099 2,s5s. Cos
36s,663 a,I09, $50 !
y SouTH CAROLINA BANEs.
Jan. 1851, sb36,lle 3,366,402 l4.950.sIi .
Oct. le39, Il,5eL355 3.l33lOl lO,575,GI7 +,
233,295 4,31LI97 /
In the assets, we include specie, notes OF !
other Banks, and amounts due by other
Banks, which form the fund Immediately
available, and exclude loans and discounts,
which can never be realized upon any sud.
den emergency. la the liabilities We In
Glide the Circulation, deposi;es, and amounts
due 70 B1nks, and exclude capital stock.
1t appears from these abstracts, that
whilst the immediate liabilities ofo Banks
are bot very li;tle more than as 2 10 of
immediate assets, those Of the South Caro-
Ina Banks are nearly as 81 TO !. The
comparison Is greatly N favor OF our Backs;
ahd It We had later returns il would be still
better, for the circulation has been 10 reg.
llar state OF reduction, and specie and spe
cie funds have been accumulated.
The next reason assigned by the Ga.
ze;le IS, that much Of our produce is ship.
ped through South Cardinal and Virginia,
which enables the Banks Of those States to
realize specie funds, which Of right should
20 10 support our csn Banks, if the trade
fas carried on through our own rors.-
" hist the fact IS so, lis eject is overra,ed. I
Dur Banks did not suspend .or want of spe
-, o-' , =, because. Il they continued
- pay whist Virginia did nGI, r:iey uouId
be drained of their means, BY the Banks
and Brokers Of Virginia, and be obliged to
refuse all accommodation 10 their dealers.
! he South Carolina Banks will be remark
n ~ if9[ rllnaie II they escape such fate, or
continue TO pay whilst all their her gynh6tsb
are 10 a state Of Suspension.