The North-Carolina standard., 1843-02-22

the coin home to pay their debts WITH dollar fo
dollar, they make large profits, 1t was also urgec
as further excuse for the suspension of our Banks
"that if they had continued paying specie, they
would have been drained of all of it by brokers
and suspended northern Banks" In reply to this
| may say that they would have been so drained
is matter of mere conjecture, and whether they
would have been so drained or not would have
depended very much on their ability to meet theil
liabilities without exhaustion. But if they would
have been so drained it is no justification for sus
pension unless they are always to refuse to pay
when called on. For as soon as they get fairly
under way in business, they have more notes due
than they have coin to meet, and if it be a reason
to refuse because they cannot pay all and if they
attempt to do so will be drained of their specie
then indeed would all banking be fraudulent. Il
man from the very nature Of his business were to
create more and greater moneyed demands than
he knew he could pay and by so doing get pos
session of other peoples property in exchange for
his notes, and when called on for payment by any
| holder of his notes were to refuse because not
having enough to pay all, and as he might by
possibility be called on to pay all-then if in con-
sequence of refusal, his notes depreciate in value
and the holder has not the ability to wait to re-
cover his just dues by awor is rather fearful to
dertake it. and this man were then to take advan-
tage of the depreciation which his refusal had
caused, and buy in his notes with what money he
had on hand, either by an agent or by way of ex-
change, would not ask, such man be Justly
condemned and treated as a swnder? And does
a company doing the same alter the principle2
But Mr.. Speaker, it has been said that this bill
is unconstitutional because it violates contract
Considered as mere party question, we have
high authority on the federal side for the repeal OF
charters, as Gen Harrison, their late chief intro
duced in 1919 into Congress proposition to re-
! peal the late u States Bank charter. Other emf
nent ederalists have held the doctrine that State
could pass law imparing contracts between in
divldual and individual, but had the undoubted
right to annul contract where the State itself
was one of the contracting parties. The case OF
Brown rs. the Pcnobscot Bank decided in the
Massachusetts Supreme Court, at March term,
| 1912. also decides the same; but candor compels
me to acknowledge that this is the only either
in the U. States Supreme Court or any of the Su-
preme Courts of the several States which counte-
nances so odious doctrine. believe the follow
| ing, however, to be the settled doctrine of the
country. and think the uniform decisions of the
Supreme Court of the u. States will bear me out
in the assertion that the laws of the different States
may be in their nature and character retrospect
i've, and may even divest or determine vested
rights; and this, unless the obligation of a cont
tract is at the time impaired does not amour
to violation of the Federal Constitution. re-
L
case is, in my opinion, not regarded as good la",
and that the course of Gen. Harrison as alluded to
above was very agrarian. The law is settled,
however, that you may determine vested rights,
provided you do not at the same time impair the
obligation of contract Let us now apply the
principle to the case before u.s. Every thing is
implied in favor of the sovereign according to the
good old rule that no laches can be imputed to the
king. When the sovereign parts with any por-
,<Nft ba
terms and not implied from the words of the grant
If then North Carolina has made IL contract with
her banks that she will not force them into liqu-
dation or make them forfeit their charters for
suspension of specie payments, for one will ad-
NIT that she is bound by it, and this Legislature
cannot alter the terms. But insist that gentle
men shall show the paper, convince me that such
bargain was made. 1t must, however, be in ex
press terms for repeat that neither the previous
nor the present Legislature can dispose of any por
ton Of its sovereignty by implication. have read
the charters of the several Banks in this State and
find no such bargain. 1t is true that they pay IL
per cent to the note-holder in the shape Of DANA
ges to the individual sufferer, but find no pro-
mise on the part of the State that she will not en-
force the prerogative of sovereignty by altering,
increasing or enlarging the penalty or by chang
ing entirely its nature where the republic no less
than individuals may suffer. On this point l am
satisfied
regret that this bill does not contain a provi-
sion preventing the President and other officers
of these corporations from holding the proxies of
stockholders for it was this which placed the late
U. States Bank under the sole control CT one man.
This bill is very defective, as it docs not prohibit
the circulation of cut notes and post notes or sell
ing exchange when suspended, or prohibit our
Banks from receiving or paying out the notes of
Banks of other States issued and payable out of
the State of North Carolina, and many other salu-
tary provisions which we should engraft upon
these Institutions The truth is, that neither this
bill nor that reported by the committee propose
any indic;ous, practical and wholesome restraints
on the system The acts of incorporation of the
several Banks in this State prohibit the emission
of any notes ofa less denomination than three dol
lars but a practice prevails in many parts of the
State of cutting the notes into two parts and circu-
lating each half for half the amount Of the whole
bill. The Banks, sir, have given countenance to
such mutilation of their note and evasion of the
laws prohibiting the circulation or emission of
notes under three dollars, against both the letter
and spirit Of the act The object of such provi-
sion was designed to infuse into the common cir
culation of the country larger portion of specie,
and the reason for encouraging this violation of
the law is very apparent as thereby the notes are
GRADUALLY DESTROYED to the great profit and adj