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

should be returned by the State and in case of fail
ure by the State so to return it that then her bank
might continue suspended until the State could d.
so. If then the public debt of New York was 81
great (ike that of Great Brittany that the Stat,
could never redeem the principal then her bank.
may continue non-paying forever And accord
ing to the argument of the Senator from Guilford
we must endure here all the evils of permanent
suspension irredeemable and depreciated-because
torsooth New York has incurred heavy debt fol
Internal Improvement and has to borrow money
of her banks to sustain her character. And this
alleged by men of discretion in this chamber as
reason why the interests of our people-almost an
entirely, agricultural population should suffer
This sir, is no fancy-picture-no speculative
dream. At the memorable session of the Penn
sylvania Legislature, when certain hitherto violent
opponents of this system suddenly supported the
federal side, what was the law-the offspring OF
such an unhallowed union. Why, the banks a.
greed to loan the State millions, provided the
State would permit them to suspend for five years
longer and further, that they should not be com
PEELED to resume even then unless the State were
then able to return the three million loan. Here
was plain bargain between the State of Pennsyl-
vania and her banks for a permanent suspension
ofspecie payments-fora permanent, irredeemable
and deprecated paper currency Here the liber-
ties of this State were contracted away-bargained
and sold to pay her enormous public debt And
is this good reason why we who have no public
debt should equally suffer for the extravaganza and
prodgality of sister State?
Here Mr.. Moye the Senator from Pitt rose and
asked Mr.. Shepard ''fthe Legislature of Pennsylva-
mia was not then democratic" Mr. Shepard re-
piled that 'lf we were to judge simply and without
reference to this particular case, it is generally and
almost universally true that wherever the liberties
of the people arebarered away for gold the act is
perpetrated by the federal or whig party" MIR.
Mr. Moye insisted on a direct answer to his ques
ton. Mr.. Shepard said that he would candidly
state the facts. Thedemocrats be said had MAORI
ty of one or two but still the measure he had allu
ded to was a whlg measure as every whlg voted
for it and all the democrats against it, except one
or two, just sufficient to change the RESULT
The Senator from Guiford says that ''the banks
north of Us suspended" Is this, l would again
inquire, good reason for Bank suspensions in
North Carolina? Certainly not unless the banks
north had all their means and refused to pay it to
them. 1t is no more, Mr.. Speaker, a good reason
than it would be for me to say that would moi
pay my debts, because you cannot or do not pay
yours when you do not owe me dollar and my
means are neither diminished or increased by your
paying pa not paying your debts. The suspension
of the banks anywhere causes coin to be sought
after to pay foreign debts or debts that are conrac
ted in our commerce with the world where our
bank notes will not answer as money. Throwing
impediments in the way ofgetting the coin by one
set Of banks would cause it to be sought elsewhere,
where it is paid more readily, and as most of our
foreign commercial transactions require prompt
and people generally cannot suffer the delay
of enforcing payment from delinquent CT refusing
bank and many of those that are able to do So re-
frain from it, either from policy because they are
interested in the Banking Institutions or from the
fear of offending large and wealthy class Of citi-
Zens, such as generally compose the stockholders
Of banks the effect of such suspension is an imme-
date depreciation of its notes. and enables the
banks in suspcndng to realize larger profits
They have no check or limit to their business
then except the refraining of the community to
ask loans, for ifthey can exchange their mates not
bearing Interest, and which they have proclaimed
they will not pay for yours bearing interest," they
are doing a very profitable business and it can be
extended las far as the bank is concerned) infinite
ly for they only have to be at the expense of pa
per and engraving to circulate theirs bearing no
interest to exchange for the note of the community
bearing interest The profits indeed are great
that no bank has yet ever been found wanting in
plentiful supply of engraved notes. By suspend
ing the banks make large profits also by what IS
called exchanges. The proper exchange between
any two places is the cost of carrying and the in
surance Of safe carriage-e. g. take 100000 at
Tarboro', Elizabeth City, Wilmington or New
bern for IA per Ct freight $3.50 and 38 to 1-2 in.
surance 1875 to $500, viz. from $675 or $3.50 at
most you can send the 100000 to New York
and insure it to get there safe. Now in the late
suspensions North Carolina bank notes were at
Il depreciation of from 8 to 6 per ct. discount, so
that the bank at any one of those places by relu
sing to pay their notes at the counter, promised
and as bound to by every principle fjustice and
good morals, can make and does make very large
profits.
Thus the cost of getting 100000 to New
York, and insurance, is, at the highest
say I5U
After gcting it'thcro, by drawing on it and
selling exchange at 8 per cent premium,
they would get 5000
Thus realizing profit, by that operation,
And if the premium for which they sold
was per cent. it would give 5000
And yield profit of $3.50
more than they could make if they paid their debts
honestly and as required and expected to do by
the Legislature when the charter was granted
And this is a gain to the Bank and a loss to the
people among whom the Bank is situated and cir
culates its notes. And again, unless the Banks
norhof us held the notes of our Banks or had de-
postes withthem and call onthem for payment the
suspension of the northern Banks can be no more
n Il, ali 6cafion of the Southarn Ranks SuSDendjno