Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1855-01-13
Bank of the state of North-Carolina.
To the Editors Of the Standard; ;,

lluS. AS this has been heralded by you as coiniis
from the pen of ' one of the abest men OF TINS OF
any other State, fear its glaring errors and mis-
statements unless corrected, may do ncalcuiaole
mischief to the credit of the Banks of this State
and tend still further dcpress the value OF ouI
currency both at home and abroad, and thus aud to
present difficulties. In fact, but for your an
nouncement, we might very reasonably have attrlo'
uted the article designing broker with that
object in view TOR nothing could be better calcuat
ed to suit their purposes. As L cannot suspect any
such d. sign desire, ask the insertion OF TINS re-
ply in your paper i'll order that the bane and anti
dote may so together.
1t is my Intention to discuss the question
whether there is already too much or not sufficient
banking capital in the State That is matter which
| l submit to the wisdom of the Legislature Nor do
des ign to enter into general defence of the Banks
! and Banking system of the State-further than TO
say that their reputation So far has come to my
knowledge, has hitherto been untarnished and nave
yet to learn the first instance i'll which amy OF the
present Banks i'll this State has refused or failed 10
redeem its notes in specie when demanded. lie says
" he admits the soivency and uttintte ability OF the
| Banks to pay" while at the same time he says
q" these statements prove beyond question that the
| Banks have not been in a condition to do what by
| their charters they required to do, ID redeem
their notes in specie on demand" If by this Pub
Illus means to say that the Banks have not sufficient
| specie i'll their vaults to redeem GU their notes IN
circulation if presented at time that fact is self
evident and did not require the sagacty of one OF
the ablest in this any other State " to dis
cuver and if this is the system of Banking which
"Pubius designs to recommend to the Legislature
| for adoption, he will succeed most etfectually In
| putting them down altogether.
But if this be such a monstrouS fraud in the COM
munity as Pubus " seems to consider it, he should
remember that the Legislature rs "particeps c1ini
nas, as it has in their several charters authorized
the Banks to issue twice and in some instances three
times the amount of their capital subscribed and
paid in lie says also " that the provision in their
charters of twelve per cent interest on the failure
of the Bank to pay demand, has proven of no
nj. tbat No IlunlS
within my knowledge has yet refused to pay, and
thereby subject itself to the penalty. But he says
the Banks have rcsored to all sorts of tricks and
evasons TO avoid these demands; those that have
branches issue notes payable at remote periods,
[points, presume is meant, and the others issue
nothing but small bills and even these they manage
not to pay" Hoo, he docs not inform US.
AS to the trick of making notes payable at dis
tant branches to evadc payment, | can only answer
for the Bank of the State, and say that such trick
has been resorted but the circulation of each
branch has been as far practicable kept in strict
proportion to the capital employed or its means of
redemption. This Bank has nine branches with Ger
tain amounts of capital apporhoncd to each. They
situated at Newborn, Tarboro, Fayetteville,
Wilmington, Elizabeth City, Charlotte, Milton, Nor
canton and W lndSor. None of these, except Nor
canton, beyond the convenient reach of brokers,
as has been fully tested during the past year. The
capital of the Branch at Morganton formerly
100000, but it has been lately reduced to S75 600
the present circulation at that point is "a 256,
and it has in specie SO, 6S3. Now if the object of
the Bank was to evadc the payment of its notes by
making them payable at distant branches alleged,
what would have been easier than to have made the
largest amount of notes payable at this inacces
siblc point? Yet you find the whole circulation at
that point $1G4 256 with ample supply of specie
to meet any reasonable demand might, but for
fear of being tedious, show the state of facts
to exist capital and circulation at all the other
branches, all of which perfectly accessible, and
each of which has been repeatedly visited by brokers
during the past year.
7 onnlt TO rootf haa Cxrh. Dbl
Illus makes far the Bank of the State is concern
ed, and to show to the satisfaction of all who will
take the trouble to examine that this Bank has the
present ability to pay not only its circulation but its
deposits, of which 'Publius' takes notice, without
calling in but very small proportion of her dis
counted debt
The liabilities of the Bank are:
1st For notes in circulation, S1,635, 1877
End. &c Deposits (including Pub
lie TreasirerO 395,el6
3rG. Debts due to other Banks, 24,7O6
4th. 4" Unpaid dividends and
checks in transitu, 1907
Making a total of, $4,000, OS6
The means to meet the above
liabilities exclusive of her discount
cd note debt
1St. Bills of Exchange which ]
are payable and CONVEX : l, los, $40
tibe into specie,
End Specie, 372,295
ard. Debts due by specie paying
4th. Notes of specie paying Banks, 15O974
--1, 737, $50
Leaving the sum of 324,447
to be called in from her discount
ed note debt
The discounted notes amount to 2,175,OO6
from which deduct the above
Of 324,447
And the dividend last declared, Il, 900
399, 447
Leaving balance OF, 1,775, $50
To which add real estate which
cost, s6,615
And would now sell for twice the
amount 1872, ia
From this deduct capital stock, 100000
S 3l2,174
And yet in the face of this statement, (Which
Publus must have had before him. he says that the
Bank may be ultimately solvent.
This much have thought it my duty to say in
defence of the Bank of the State, to the in
furious impressions which might be produced by the
article referred to.
GEO. w. MORDECAL
President, dc.
Bank of the State n. c., !
Raleigh, Jan. s, 1855. {
CARLYLE Friend Aver in this age of quacks
charlatans and mere windy. gaseous Dretendcrs to