Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1856-12-10
BANK or THE STATE or NoRrH-cARoL1NA.


North Carolina having, at their general meeting in
July, 1885, after matnre delberation declined to ac-
cePt the Charter rendered them by the last Legsla-
ture, thought it due to themselves as we'll as respect
tul to the Legislature to state the reasons which
duced them to do So and at their last general meet
ing in July, 1885, appointed the undersigned COM
mittee for that purpose.
Before proceeding to discharge this duty the COM
mit:ee think it not irrelevant or improper to take
retrospective view of the operations of the bank since
its commencement in September 1884 SO as to en-
able the Legislature to how far it has its
duties to the community, as well as to the State
In November, 1853, the capital stock of the bank
amounted to $755, 1888 60. In November, 1885, its
capital was increased to the sum of ,O96 600 and
in November, 1886, the whole capital of one million
tive hundred thousand dollars had been subscribed.
at which time it was in complete and successful CD.
Grafton. Of this capital stock the State or Ltera-
~ Board owned 5O27 shares, amounting to $780,
700. The University owned 1000 shares amount
ing to one hundred thousand dollars and individu.
al stockholders held the residue of 1913 shares
amounting to eight hundred and ninety seven thou
seven three hundred dollars making the whole cap
ita Of $4,000 shares million five hundred thou
sand dollars
The first dividend of p per cent was declared in
july 1885 from that time to the present the bank
has continued to declare never less than per ce.t.
semiannualy, and for several years it has declared
B per cent. semi-annually.
There has been paid to the State or Literary Board
by way of dividends, from july 1885 to July, 1856,
the aggregate of 1884, 500 75 Exclusive of the
has amounted during the period to tire sum of
OO0D and there has also been paid to the State,
by way of tax, during that period, the sum of 49,
4O5 So making in all received by the State in div.
idends and taxes, the sum of 1914, Ol5 25-nearly
double the sum originally subscribed besides re-
turning to the State the whole amount of her sub.
scrpton together with the dividends of profits here
after to be declared.
Although under no obligation to loan to the State.
by virtue of any provision in its charter, this bauk
has uniformly, and it is believed without single
exception, complied with all demands made upon it
by the treasurer, for his accommodation and some
times with great inconvenience to the bark. These
loans have averaged about one hundred thousand
dollars per annum. The total average loans of the
bank, since its commencement have been 50 066 OlO
per annum, and its circulation has averaged 81 1885,.
63l per annum.
1t is not pretended or believed that the operations
of the bank have been always conducted with entire
satisfaction to the community, as in the manage
ment Of such an institution, many cases of apparent
individual hardships, or want of accommodation
must have unavoidably occurred but it is believed,
that in the main, they have been conducted impair
tally and with much regard to the interest Of its
dealers, and the community, as was consistent with
the discharge of its duties to the stockholders and
the State, as one of its principal ones.
The committee will now proceed briefly to state
cline accepting the charter rendered them b. the
last Legislature.
The first objection in order as well as in impor-
lance, is the provision contained in the fifteenth
section, imposing the tax-although an absolute tax
of thirty cents only is thereby imposed-on each
share of stock held by individuals The stockhold-
ers in view of the wants and liabilities of the State
thought it right and proper to consider the utmost
extent to which that tax might be increased believ-
ing that in short time the Legislature would con-
slider themselves justified, by the "exigency of the
State" to increase the tax to its utmost mits-this
was one dollar on each share-in addition to which
they also reserved the right of taxing the dividends
on the stock owned by individuals and corporations
dd Nbitum limited only by the rate of tax which
they might think proper to impose on interest or
money loaned. On referring to the dividends de-
clared by this bank it is ascertaned that the
age annual rate of dividend its stock is about u
per centum-from this deduct one dollar per share
for tax and even the present tax of three cents on
each dollar of interest," say twenty-five cents, and
there would be left to the stakeholder a nett dvi-
dend of about six and quarter per cent per an
nun, or very little more than the ordinary, legal
rate of interest to compensate him for his risk
penses, &c. This calculation is founded too on the
supposton that the bank will continue to make the
same dividends, and to do safe and profitable
business it has heretofore DONE This, the stock
holders think more than doubtful, the vast in
crease in the number and capital Of the banking in
situations in this State will, in their opinion.
der the operations fthe banks far precarious,
and much less profitable, than they have heretofore
been.
The next objectionable provision is that contain
ed in the eighteenth section, restricting the choice
of stockholders in the selection of persons to repre-
sent them proxies in their general meetings.
While it certainly right and proper that this choice
should be restricted far that none but stock
holders should be allowed to be present at their
meetings and participate in their deliberations and
admitting the propricty Of prohibiting the President
who is saarcd officer, from being allowed to act
as proxy, and thereby, possibly, to secure his own
election, against the wishes and interests OF the
stockholders, Though this could scarcely ever hap
pen) vet the same reason will not apply to the d
rectors, who render their services gratutousy. And
it seems strange well as unjust, that stockhod
er should be prohibited from selecting to represent
him in those meetings, the very person, in whose
prudence, skill and judgment, he has such conf
dence, as to entrust him with the whole management
of the affairs of the bank.
The thirty second section prohibits the bank from
issuing or paying out notes of less denomination
than five dollars either of its own issue or of that
of any other bank, except in settlement with the
bank banks issuing such notes. While the |
stockholders do not object to this general pro-
vision, if it were made applicable to all the banks
in the State they doubt the policy Of restricting one
banks within these bounds, while all others
permitted to issue and circulate notes OF TINS oe
scription-and this far from attaining the oo)ect
they believe, tend to increase the amount OF the
notes in circulation. They suggest that 1t would |
have been better to have reserved to the Legislature
the right of imposing such restriction whenever the
same could be made applicable to all the other
banks instead of imposing an immediate and abso-
lutte prohibition.
The proyision contained in the forty third section,
as to the mode of settling with other banks is con-
sidered highly Objectionable and very onerous, as
in fact so far as these banks concerned requires
Il. NADIA onSf uvho cr,oA