Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1855-01-06
BANKS AND CURRENCY.
To the Editors Of the Standard:

To the Editors Of the Standard:
Since my last hasty communication have had the
opportunity ofexaminins the reports as made by the
officers of the several Banks and looking into their
respective charters and am now able to speak with
greater accuracy. There in this State ten Banks
with an authorized capital of not exceeding six mil
lions two hundred thousand dollars Of this sum
there is reported subscribed and paid s., l55 $685.
leaving balance of capital authorized and not taken
of 81, 044 49, The Banks thus chartered, and whose
capital has not been fully taken,
Bank of Fayetteville, capital $500, COCO
taken $3.50 900, not taken 100000
Merchants Bank of Newbern, capital 100000
taken 1925 900, not taken $4,000
marlborough, capital 100000
taken S269, 1896, not taken 13O,605
Washington capital 100000
taken 100000, not taken 100000
Farmers Bank capital 100000
taken S270, 40, not taken 229,53O
Yanceyville, capital 200, 900
taken $l1O, 700, not taken $1,000
From which it appears that of the Banks thus
chartered more than million of dollars remains
subscribed, and these charters have as yet from
twenty to twenty five years to rum The points at
which they are located are Fayetteville, Wadesbo-
rough, Elizabeth City and Greensborough, and Yam
ceyvie. Thus proving that at these points there is
no necessity for any additional banking capital.
From these reports of the Banks am able to pre-
sent further facts of value, and from which
will draw some differences ofmportance to the public.
Whole amount of capital paid $685. 800
Aggregate amount of specie 1905, 35l
Notes in circulation 6,597, 379
Amount of notes discounted 7,7s1,5
From which it appears the notes of the Banks in
circulation exceed the specie in their vaults more
than five to one, whilst the amount due the Banks
from their debtors exceeds the thus due to the
public more than million of dollars. 1t may be
admitted that the Banks are solvent and fully able
in the end to pay their debts, and yet it is equally
clear if pressed they not able to do what their
charters require them to do and which the face of
their notes they have promised to do and that is to
pay in specie on demand. If we are to judge from
the statements made by the Banks the Bank of
of the State the Commercial Bank, and the Bank of
Yanceyvlle seem to have made the strongest efforts
to redeem their promises and thus supply the wants
of the public. In November, 1858, the Bank of the
State had in circulation 81 $685. 799, with GAL 744 of
November, 1854 her notes in circulation reduc
ed to 81 635 157 and her specie to $s72,2 thus
showing in the year she had paid out one half of
specie 1t may be that the Bank of Cape Fear has
been equally honest in its efforts but of this
not able to judge have not been able to find its
return for 1853 The report for 1854 states notes in
circulation to be $2,0s3l7l and specie 1864, 921,
with other available means for redemption. The
Commercial Bank of Wilmington had in circulation
at the end of 1868, $62O7s with $147 5s8 of spe-
Gle with other means for paying. In December, 1854,
the notes were reduced to $43S, 635 and specie to
$61,7I6. The Bank of Yanceyville had early in 49,
81 notes in circulation $175, 900 with $73 993 in
specieits notes in the latter part of the year
reduced to $l62 $50 and its specie to $685. 1853 The
returns from the other Banks do not show favor
able result. These statements prove beyond ques-
ton that the Banks have not been in condition to
do what by their charters they required to do
to redeem their notes in specie demand. I admit
the solvency and ultimate ability pay; but that
is not the question. Have they been able to keep
up and have they kept up sound specie-paying
currency? They most certainly have not Hence
their notes out of the State have been low three
per cent discount, and specie drafts not to be
had. And yet these Banks have and all been
dividing from eight to ten per cent and this as
shall show is of the great evils of our present
Banking system, and which demands the attention
of the Legislature.
The provision in their charters of twelve per cent
interest the failure of the Bank to pay on demand
has proven of no value. What has been the result?
The Banks have resorted to all sorts of tricks and
evasions to avoid these demands. Those that have
Branches issue notes payable at remote and distant
periods and the others issue nothing but small bills
and even these they manage not to pay. If yon de-
sire one hundred, fifty, twenty dollar bill
you will be unable to find it. The result is gold and
silver is not to be had, and circulating currency
consists of one two three and four dollar bills and
very rarely five ten note Yet with these facts
staring us in the face and meeting in every mon-
led transaction the Legislature is asked to add to
our present Banking capital twelve millions of dol
lars. Save us from such consummate rashness.
In my next propose to present some further OBJ
jections to free banking and banking stocks and
to offer some suggestions to what in my Judgment
ought to be done. PUBLIUS.
U. S. MEDIATION EUROPE. 1t is said that the
House Committee on Foreign Relations have agreed
unanimously to report in favor of Mr.. Clingman's
proposed mediation of the United States in the pend