Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1854-09-27
BANKING CAPITAL.

States. In some of the Western States, however,
the system has been much abused and this has
brought Banking generally in that quarter into dis
repute Issues have been made on mortgages of real
estate, and bonds not well secured the notes
have not been redeemed, failures have ensued, and
the loss has fallen the people of all conditions
and pursuits except the shaVers and those concern
ed in these fraudulent operations. There can be no
doubt, we presume of the safety of this system
when well founded and properly guarded. 1t oper-
ates thus Any person having, for instance United
States or State stocks, depostes of them, say
hundred thousand dollars with the Comptroller of
State who holds them, and puts his signature to
notes for circulation to the same amount These
stocks thus pledged, in the last resort, for the
redemption of the issues; and in the
issues exceed the amount thus deposited, for they
must be signed by the officer referred to, some
officer of the State, who keeps record of the
The Banker must, of course be provided with the
specie to redeem such of his notes may be PIE
scented but this demand, with the basis of issue
we'll secured, would not be likely to be- to any ex
tent the result of want of confidence in the MAX
or of the notes. Issued thus, he would of course
realize, first six per cent his deposited stocks;
and secondly six per cent. on his circulation. A
system like this would perhaps afford more gener
opportunity DdHh tndIl is
now enjoyed; and would, we repeat, if properly
guarded, be safe the present Still it is not
purpose to advocate change of the Banking system
of the State to intimate preference for
system over the other These are matters for the
enlightened legislators of the people, who, coming
from all sections of the State. will be fully acquain-
ted with the condition of the currency and the wants
of the people of all means and pursuits.
Rntif he iS TO he continued and
its operations enlarged there principles connec-
ted Herewith which ought to be rigidly insisted
In the first place, the motive to the issue of small
bills ought far practicable, to be met and
terbalanced. These issues if permitted at all be-
yond three dollars ought to be made dependent
more on the demand of the public than upon the
profits to be derived therefrom; and this might be
accomplished by providing in all subsequent char
tiers, that every Bank should be required on wind
ing up its business to deposite with the State Urea
sufficient amount in cash to redeem all its
notes, of whatsoever denomination, which might be
out These small notes seldom or never lost to
wellinformed persons, those engaged in trade for
they know how and where to apply to have them
redeemed, OF to get new notes in their place; but
the laborng classes are, in many instances unable
to obtain either the specie or the new bills. The
consequence is the notes lost to them-that is,
so much cash and the Bank makes the profit. The
chances that the evidences of Bank Indebtedness
Will be lost destroyed are, of course. increased by
the issue of small bills and this it is assumed
leading motive in putting so many of them in crcu-
lation. These losses to the farming and laboring
classes not, it is true, large frequent
to occasion general complaint; but then the correct
principle ought to he established, and the Banks
should be anxious to secure and retain, in all their
operations, the confidence of the people of all pur
suits and conditions.
We do not propose to state, at length, the objec-
tons to small bills These objections will TO
almost every one; but of the leading objections
is that they keep the precious metals out of circua
ton. After all gold and silver constitute money
they property, and the only really unfailing and
at all times reliable representative of property
In the second place, the private property of the
stockholders ought to be pledged in every instance,
for the redemption of the notes. This principle
at one time srenuousy opposed in this State, but is
regarded as we'll settled There is no probability
that any future Legislature will depart from it.
Some of the Banks of this State have uniformly
acted upon the rule of making all they could in
cordance with their chartered privileges with little
or no reference to spirit of accommodation towards
business men. Some of them have, and then,
IHuuiSeu III species OF 1aVOrltlSn; out THIS IS 10
some extent nseparable from the institutions them
selves. 1t is in some sort to be expected. Compe-
ttIon will have tendency to check and correct this
and cannot fail to produce the conviction on Bank
officers that their institutions if they would have
them prosper and declare good dividends, must be
at all times not merely willing but anxious to secure
and maintain well the friendship of the commu-
nifty as the confidence of note-hoders and the pub
lie generally. A Bank which has as much business
as it do without seeking it. will not be apt to 60
out of it's way if it should lose nothing there
by, to accommodate
We have doubt, from the Indications that ap-
plication will be made to the next Legislature for
number of new Banks. This is matter in which
the people have deep interest-the price of prop
ert the proceeds of honest trade and industry and
the prosperity of all are involved in it and trust
and believe that the Legislature will give to the
subject more serious consideration than has hereto
tore been bestowed upon it in that body. 1t is a
subject which may well engage the attention of our
abest public men. The State has reached point
IN this respect from which she is to take forward
start Tor many years; the question must be met,
ana much depends upon the manner in which it may
De settled. The policy which may be adopted now
is not likely to be changed unless-in case too
great circulation of Bank notes should be author-
Aed-a reVuision consequent thereupon should force
change. 1t is better that some should suffer the
inconvenience resulting from the want of Bank ac-
o'ihhooatons than that many should incur losses |
nun eHtraVagant issues; better too little than too