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

invested in State company and corporation stocks,
subject at all times to disastrous fluctuations, the
distressing scenes of 1867 which almost abolished
our code of public morals, would not now be so in
deibly impressed upon the recollection of the pub
lie mind. The banks Of Scotland possess this bind
ing clause, and am told uniformity present her
citizens with reliable par value currency.
While then the public interest is sufficiently pro-
tected in the charter of these institutions, it only
becomes question for Legislatures to determine
what the commercial wants of the communities,
praying for more banking facilities?
1t is not very difficult and underlined PROPOSE
ton in political science to adjust proper proper
ton between the monied capital and the permanent
wealth. of country The real wealth of nation con-
sists in its natural cndowments, and the accumuia-
tons therefrom resulting from the employment OF
labor, after pay ny the expenses OF that labor. NO
nation can be said to be improved, or her agrlcul-
tural commercial wants supplied until she can
command labor to improve all her property ana the
pecuniary ability to pay for that labor. Is North
Carolina in this condition? what is her banking
capital and what the extent of her agricultural, me-
chanical and commercial wants? Has she the re-
quisite capital to bring all her lands into cutiva-
tion-to build her Railroads.&c. Encourage her man.
ufactores-to increase her comInerce-to foster her
common Schools and seminaries OF learning, anu 10
give hope to every ntcrprse and protection to every
interest? Does she not rather present the extraor
binary spectacle of being rich in all the varied re-
sources of wealth. of power and of population, with
out the means of either enjoying her natural ard
benhccnt endow,nents, or of adding one gem to her
glory, her grandure and her power!
The permanent wealth of North Carolina Is cStl-
mated to be not less than four hundred millions OF
dollars, while her banking capital is less than tive
millions, not enough either to buy the products
carried TO one Of her market-tewns, or OF sup
plying the means to the farmers OF making these
products When this extraordinary dlSpEoportlon
exists, the principal amount of existing capital is
usually absorbed in commercial banking, without
extending encouragement to agriculture IN that
ratio its great Importance demands. Commercial
banking to be safe and profitable requires loans to
be made actual Values at too short intervals Tor
these values to be produced hom the soil, in order
that the bank may receive from one man as much
it loans out to another Its use therefore is to
supply dealers time sufficient to enable them to
resell OF exchange their purchases, that the re-
endorsement may meet the loan at maturity
But little capital in proportion to the business done
is required in this operation. An example will bet
ter illustrate my meaning. The diStillcr who buys
turpcntine requires his note TO be discounted at
bank only time sufficient to enable him to effect
the process of dstillaon and convert the spirits and
rosn into money. The commission merchant turns
his outlay i'll still less time, requiring only the
delay Of shipment o" resae. These purchases Il
judciouSly made yield profit which with the orr
gnal outlay is often invested and brought back
in exchangabe values and barttre, to the ftrmcr for
his second crop. Now the only permanent capital
required in all this operation is in the farm that pro.
duced the artclc-the land, trees and labor that
made the turpcntine, and i'll the still and fixtures
that manufactured it into spirits and rosn. Now it
is evident Mr.. Chairman, if this farmer wished to
extend his business by purchasing more land, or
labor, he would require loans to be made 20 him al
times long enough TO enable linn to produce the
amount from his investment. This could not be
done with the rapdity of commercial operations
Hence the farmers Of our country find but little ac
commodatoH at the counter of our banks; the
shareholders of these Institutions, pretrrling like
all other occupations to deal in that business
which the largest profits in the shortest
time This, although usually practised, is, in my
opinion, mistaken policy for all interest depend
upon the success of agriculture, the community as
well the banks themselves, must ultimately feel
its deliterious effects. And here, Mr.. Chairman, by
way of parenthsis, would remark, that IN all conf
munities where this scarcity of capital prevails the
legitimate purpose of banking to be pervcrt-
ed from that of leaning to that of 6orroacing
ey-men Of limited means work themselves into
high places and become themselves the largest bor
rOweIS.
In order illustrate the truth Of the proposition
1 have here laid down. l have been at some |
trouble to collect the statistics from the of
1850, showing the comparative amount and means !
of wealth of North and South Carolina.
Car0iiDo