The North-Carolina standard., 1845-09-03


his letter published week or two since, stated that
Mr.. Fisher, owing TO the exposure and excite
ment of the contest, was laid on bed Of severe
sickness We have since learned that this is cal
together mistake, and that Mr.. Fisher. with the
exception of few hours indisposition We'd
nesday after the election, occasioned by tempo
.rary cause, never enjoyed better health than he
did during the campaign and since. OF course
our correspondent was misinformed.
Banks and Banking IN North Carolina.
In suit lately brought by the Elizabeth City
Branch of the Bank of the State on note where
the loan had been made in Virginia Bank notes
to needy debtor, when they were at a discount
of from five to seven per cent, THAT is they were
worth from 93 TO 95 cents instead Of 100 cents to
the dollar and his note taken for the loan in the
usual form, the plea of ~s~ry has been sustained
by our Supreme Court, and the Bank has lost a
debt of several thousand dollars, and is liable,
apprehend, to lose many others, where the same
nefarious practice has been adopted-that of palm
ing off their deprecated assetts if for full val
ue, needy men. And it seems fairly deduct
bic from the opinion delivered in this case, that
the Ioaning of Bank notes payable at distant off,
ces from the place where the loan is made and
the money paid out-so as to subject the holder
to considerable expense and trouble 10 make a
demand for their payment and get them paid-is
liable to the same objection for the notes paid
out by the Banks are not IN fact worth 100 cents
to the dollar, unless payable and paid when de-
mauded, at the place where they are paid out, be-
cause they arc not made payable, and aOiU mol, be
paid there.
We rejoice to see that our Supreme Court is
composed of learned and independent Judges,
who do not hesitate to declare practices that would
be deemed by every one iniquitous and oppressive
in an individual, to be equally so in Banking
corporation. Akin to this abominable practice Of
loaning out uncurrent and deprecated notes 10
needy borrowers, is one which most of the South
ern and many of the North Carolina Banks have,
we understand, adopted of late-that Of drawing
their checks on each other and giving certificates
Of deposite payable in current notes, and requiring
drpositors to check on them in the same way.
BY this term current notes we suppose they mean
something of less value than the constitutional
currency; and they generally take pains, NC are
informed, to pay these current note checks and
certificates Of deposte in notes payable any where
else but nt the place where they are paid out.
All this is eertninly wrong morals, aHd,
think, in good policy-for we are very certain
that such practices would not be tolerated single
day in a strictly commercial community, but the
Banks that resorted to such petty subterfugcs
would be secuted and dscountcnanccd by every
respectable Merchant. And it is right that they
should be. for they have privileges enough in all
conscience TO induce and require them to meet in
good faith their obligations to the community.
They have special partnership privileges. in be-
ing liable, should the Bank fail (by fraud or 9TH
erwise) to pay only so far as they have subscribed
to the Stock, though they may be worth thousands
and millions besides, while the note-holdcr or de-
positor must lose the notes he has on hand and
the money he may have deposited with them.
Again They authorized to issue their notes.
which bear no interest, MONEY, for the notes
Of individuals bearing i'ste,est, t1leu tnis
interest by way of discount in advance and yet
not satisfied with all this, they must piful
efforts and practices to avoid an honest payment
of their debts We wish to see this shameful
practice abolished at least in North Carolina !; and |
- "a 10 IOI pro,
fable to induce capitalists To- invest their money
in fair Banking, let it be abandoned. If the
Banks cannot pay, and do not intend to pay, let
hem say SO, and cease to issue their notes as mo-
ney; for no man, not in the most necessitous cir.
would be willing to pay interest on
81 900, when the paper he has received for it
rs money is worth only $3.50 or 1890, or any
other sum less than he purports to borrow and
binds himselfto pay, with interest If the rate of
interest is not high enough, let application be made
o the Legislature to increase it; but in the name
If all that is far and honest let the Banks aban
Ion and abolish all these pitiful evnsions of the
aw and of honorable dealing, and act in good
aith to the community among whom they are
ocated, and from whom their great and special
privileges are derived.
Insour- next we shalEhave. word or so to say
Ibout small notes.
We learn that Mr.. Hampton Sydney Smith
delivered Lecture. on Saturday evening last, in
his City, before the students of the North Carolina
Military Academy and IN ;ptoll;o.,. s.l:..> |