Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1855-01-24
REMARKS OF T. H. WILLIAMS,


over, rose and said
Mr. CHAIRMAN: This is q subject of grave impor-
lance to the people of North Carolina, upon when
feel less competent to address the House than upon
any other that may probably engage Its attcntoh
the present session Involving, the discussion
necessarily will discrimination into the whole BANK
ing system of the State, it will indeed be task Oh
difficult undertaking for the ablest among us inuch
less for him who now attempts 1t. Being raised Ill
the country, unconnectcd with mercantile or probes
sional pursuits and therefore unacquainted to con-
siderable extent with the business operations vi
commercial life, places me under great disauVan'aSG
in the discussion of the question: but the reatlon
sustain to = constituency deeply interested IN the
success of this induces me to disregard theSe
personal disadvantages, and to claim the attention
of the House upon the merits of the bill
The subject of Banks and Banking, MIR. Chairman,
has for centuries engaged the profound consideration
of the ablest nancierS of the world. From the IN
cepton of its simplest principles in the tenth century
until the present it has undergone the ordeal OF rig
i'd scrutiny and public discussion; and upon 1n's
subject upon many others the amount OF aoliy
by which it has been advocated and opposed has
been very imposing and nearly divided upon ether
aide. In entering into the history OF this SUBJECT
and tracing it up to the present | hope not to be
understood Us certainly do not design giving any
thing of q partizan character to my remarks shall
make In turning to Roman history We md that
the great controlling element of modern tiines-the
commercial Interchange of the commodities OF the
world, owes its origin to limited commerce, carried
on from the tenth to the fifteenth century, between
few Italian States and that this alone IVES the only
species of national trade then known to Europe. To
the rise and perfection of this system indebt-
ed for the institution of banking. When Italian
commerce began to spread Itself to more distant
markets, other means of trade than the actual
exchange of property itself found to be neccS-
sary-some circulating medium was required-some
standard, which by legal we'll general consent,
should and represent the value of property
and thereby facilitate ITS exchange Various articles
were used for this purpose, but none found TO be so
well adapted TO the business of trade-unit-
ing such Just proportion between an intrinsic and
representative value that which we dcnominatc
money.
The word Bank is of Italian origin and derives its
name from the custom of the Jews III sitting upon
the benches of the market places to borrow money.
The first bank was established at Venice in 1l57 to
assist the expedition of the Crusades This Bank
answered but of the purposes of our present
banking system, being bank exclusive " of deposit
In 1345 bank established at Genoa andrces-
tablishcd in 1907 uniting the business of Oaning mo-
ney to receiving deposcs and dealing considerably
in bills of exchange. In 1850 the privilege of bank
ing were granted to the cloth merchants of BARGE
Iona, in Spain. In 1909 the Bank of Amsterdam
was established, in 1919 the Bank of Hamburger,
in 1885 that Of Rotterdam and in 1904 that of Eng
land This last mentioned Bank may be said to be
the great fount of our present banking SYSTEM unit
ing the three departments of deposits discounts and
1t pro ccted by merchant named
Patterson and was chartered to assist William and
Mary in carrying on the war against France. Here
alliance which mas ever SINCE existed, anu
been handed down to us, between governments and
such chartered institutions. In 1890 paper money
was issued in the colony of Massachusetts to assist
the expedition against Quebec In 17l2 Bank
in South Carolina, and 1870 in Rhode
Island, Connecticut, Ncw-HampShire, aud Pennsyl-
vania. But irregular was the value of this cur
rency-so destructive to the healthy trade of the
colonies-so injurious to their morals and pursuits
that the British Parliament in 1868 prohibited the is
sue of any more paper money by the colonies. This
prohibition lasted until the of the Revolution,
when our Congress, to enable to prosecute that
war, authorized the issue of what was denominatcd
Continental money, and made it treason on the part
of our citizens to refuse 1t in payment Of military
stores. This extraordinary legislation could only
be justified by the extraordinary crisis of our affairs
for its deeterious effects felt for long time a
ter the close of that war The Bank OF North Anne
rca chartered in 1881, repealed In 1873, but
chartered for fourteen years in 1877, and then
nued By successive acts of the Pennsylvania Leg |
stature. In 1871 the Bank of the United States |
Was chartered with capital of ten millions 10y the
General Government and expired in 1911. In 1876 |
the Bank of the U. S. chartered with capital |
Of thirty five Millions and at its expiration in 1886
the number of State Banks had increased from SO !!
to 567 in 1910 to 90l and on the LIST January, 1854
to l,20S with aggregate capital paid i'll Of $3Ol, !
t76O7l.
Thus we see, Mr.. Chairman, that from the foun-
dation of ours and almost every other Government,
paper money has been issued and recognised as !
par-value currency. Sanctioned by the different |
Legislatures they have issued and circulated their
notes in all parts of the country and been adopted
IS the universal medium of exchange. Purporting |
10 be convertible into gold or silver, which they |
promise to pay on demand, each note goes the
reputed representative and the aggregate issue of
hcse represent the specie basis of circulation
ANY increase elimination in the amount of this |
circulation alters the relation between debtor and |
creditor. A change of either may effect materially |
the price of money and therefore its relative value
as circulating medium while on the increase every
rade, occupation profession seems embucd with |
new life and activity. Every enterprise finds ready
purses and willing hands. Our whole population |
eels its stimulating effects-industry tolls with hope
commerce widens its scope, and wealth spreads |
is bountics to every eye. But change the scene.
Every thing is dark gloomy and uncertain.
Trade langushcs, business stagnates apprehension |
md dstrust are felt by the entire community. But
none feels sensbly its keen distress the aborer
Who tolls for his daily bread. Paralized in his eff
orts and encompassed with want, the gloom of des-
,ondency settles thickly around him, and the bright
tar of promise falls from the dark bosom Of his future
But sir, 1 admit that until a very recent date a
treat deal of the elements of party have been mix
d up in the charter and management of banking
Institutions. The one party opposed on the grounds
hat they saw in the incorporation of such nstitu-
ions return to the old system of Feudal tyranny
concentration of power in the hands of the few
he withdrawal of capital from other legitimate
sources of investment, and a consequent neglect of
agricultural improvement. The Bank of the United
States chartered under the auspices of one who
declared it to be political engine" assuming as
we'll to regulate the political the financial af
airs of the country. Was it not reasonable to sup
bose that the party against whom such formidable