Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1855-02-02

this binding clause, and am told uniformity present
her citizens with reliable per value currency
While then the public interest is sufficiently pro-
tected in the character Of these institutions only
becomes question for Legislatures 70 determine what
are the commercial wants Of the Communities praying
for more banking facilities - 8 - -
II is not very difficult and underlined proposition
in political science to adjust proper proportions be-
tween the moned capital and the permanent wealth of
country The real wealth of nation consists in its
natural endowmeHts, and the accumuIations there
from, resulting from the employment of labor, after
paying the expenses of that labor No nation can
be said to be improved or her agricultural or COM
mercial wants supplied until she command labor
to improve all her property and the pecunlary ability
pay for that labor Is North Carolina in this
diton what is her banking capital, and what the
extent of her agricultural, mechanical and CONNER
cial wants ! Has she the requisite capital 10 bring
all her lands into eultivationto build her Railroads
Ito Encourage her manufactoles-to increase her
commerce-to foster her common Schools, and semi
nares of learning, and 10 give hope to every enter
prise, and protection TO every interest? Does she
not rather present the extraordinary spectacle of be-
ing rich in all the varied of wealth, of pow
er and of population, without the means OF either
Ijoying her natural and benefcent endowments, or
Of adding one gem to her glory, her grandue and her
power?
The permanent wealth ofNorth Carolina is estima-
ted to be not less than four hundred million of dol
lars, while her banking capital is less than FIVE mil
! hons, not enough eltnef 10 DuY the products now
carried to one OF her narkettowns or of supplying
the means to the farmers of making these products
When this extraordinary disproportion exists. the
principal amount of existing capital is usually absorb
ed in commercial banking, without extending encour
agement to agriculture in that ratio its great impor
lance demands. Commercial banking to be safe ant
profitable requires loans be made on actual values
short intervals for these values to be produced
from the SOIL in order that the bank may receive from
one much as it loans out to another. Its ust
therefore is to supply dealers time sufficient to
able them to resell exchange their purchases, tina
the reimbursement may meet the loan al maturity
But little capital in proportion to the business dom
is required in this operation An example will bet
ter illustrate my meaning. The dlSttler who buy
turpenne requires his note to be discounted at ban
only time sufficient to enable him 10 effect the pro
cess of distillaon and convert the spirits and ros
into money. The commission merchant turns owe
his outlay in still less time, requiring only the della,
of shipment resale. These purchases ifjudicious
ly made yield profit which with the original outla
is often invested and brought back in eXchangeabl
values and bartered TO the farmer for his second crop
Now the only permanent capital required in all thi
operation is in the farm that produced the article
the land trees and labor that made the turpentine
and in the still and fixtures that manufactured it in
to spirits and rosn. Now it is evident, Mr. Chair
man. if this farmer wishes to extend his business b.
purchasing iand or labor. he would require loans Il
be made TO him at times long enough to enable hin
to produce the amount from his investment Thi
could not be done with the rapidity of commercial op
eraOns Hence the farmers of our country find bu
little accommodation at the counter of banks
the share holders of these Institutions, perferrng Xix
all other occupations. to deal in that business whic
turns the largest profits in the shortest time
This although usually practiced, is, in my opinion
mistaken policy, for as al! interest depend upon tn
success of agriculture, the community well tn
banks themselves, must ultimately feel its deiteriou
effects. And here, Mr.. Chairman, by way of paren
thisis would remark, that in all communities wher
this scarcity of capital prevails, the legitimate pur
pose of banking seems to be perverted from that
) loaning to that of borrowing money--men Of lime
means work themselves into high places and becom
themselves the largest borrowers
In order to illustrate the truth of the proposltio
have here laid down, have been at some troubI
to collect the statistics from the OF 1850, show
ing the comparative amount and means of wealth
North and South Carolina