The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1856-02-06
affords an insEnce Of the extreme to which
nther SfaIes are tending k

aAorus an tnste nee OF the extreme 70 Whtci
other States are tending. IS
Toremedy the evils here enumerated, With
many others which arise under our present
unjust, expensive, and impolitic financial
system, we see but one way which appears at
all practicable, aud that is in a slight modifi-
cation Of our bank charters and Of the terms
upon which they are hereafter TO be granted
By our State Legislatures. Each State should
resolve las England did in l844) to consult
date all its banks into one, with such branches
as time and experience my demonstrate to be
necessary to transact the business of the
country. The mother bank shnuld have the
supervision Of the officers of the branches; but
the branches should be left as independent
Of each other in the arrangement of their bu-
sness as possible. The State should own at
least two-thirds of the capital stock of the
bank, nor should any individual be permitted
/ TO subscribe for share Of the remaining
third, unless he first deposit with the COM
missioners appointed to procure such SUBJ
lscriptians certificate Of stock representing
a share OF one hundred dollars in some rail,
road in fall operation in the State, for every
4 share Of fifty dollars which he subscrbes to
1 the bank. II should be required that all
subscriptions be paid in gold and silver, and
that the capital be called in as fast as the
charters uf the present banks expire or the
business Of the State reqires it. 1t shold be
also required that the certificates OF railroad
stock he deposited with the,State ComptroI
\ Ter. as soon as The bank is authorized to com
mence business under its charter. to serve as
a criterion by which that officer is to issue the
circulation Of the bank. as well as TO afford
collateral security Tor The redemption Of the
same in case Of the failure Of the bank. The
directors should all be chosen from. the indi-
vidua stockholders and the said stock-hol-
ders should have the privilege of selecting a
majority Of the directors in the bank and all
its branches; but no officer of any railroad
company in the State should be eligible as an
officer or director in the bank or any OF its
branches.
II is apparent that il each State would
organize bank on the basis indicated, aud
make The interest Of fts public debt payable
at some one or more Of It's branches, and in
its own currency, ii wouli do much to keep
the debt Of the State at hnme and strengthen
its credit, BIZ identifyins.the entire bank cir-
calation with the Indebtedness and the i'm
pruycmcnts If the State. This principle.
unee adopted and firmly adhered 10, would
soon furnish the people sound and abundant
currency; and il Sir Robert Peel is TO be ~.
lied upon as good authority. make the in.
debtedness Of the States thus managed blcs-
sing instead OF curse or burden to. them. 1t
would also SOM bring up tile stuck in all
great works OF Improvement to par value, By
giving The bank the benefit of their gross earn
ings as deposits, and, in the interior States.
the advantages Of the exchange that might
arise on the produce sent over them to for
eign markets. And this is but small pnr.
tion OF the benefits that would arise to the
people by the State keeping the power Of
banking 50 circumscribcd and limited as to
be able at all times to centred it. Forexample,
it there were but one bank in each State, the
State could, BY increasing the rate Of discount
and limiting the dividends to be paid TO the
private stockholders, thus raise all the taxes
necessary 10 meet the demands on its trcasu-
~ without having to resort TO direct taxation.
Aaoller important advantage of the proposed
system would be this il no individual is per-
mitted 10 put paper dollar IN circulation IN.
I'll he contributes dollar t, aid the State in
developing her resources. il will do much to
relieve the state IN the future from the ne
eessity Of borrowing NANCY and increasing
its debt IL extend works 81 improvement.
II Is certain that. under such an arrange.
meni, mol bank or railroad company Gould pos
s!biY issue or put in circulation n,nrc noies or
certificates ii stock than they were respsc-
lively authorized 10 do by their charters
Nor could any individual or creditor Of the
baak possibly be made 10 luss as much, by
City per cent, as The stockholders AMI man
ayers 81 The bank woui1 be liable 10 do III
case oi failure. Thus their personal and IN.
divided. interest. both il tie bank and the
raads Of the State. under the responsibilities
indicated, would lead to the exercise 81 all
their energies. with tie seyPrest economy
ihai car possibly be brought 70 bear on both,
10 make these combined interests profitable
aud beneficial 70 the public 10 proportion.
With these great ends secured, the statee
could gradually proceed with safety aud all
sniage 10 tie extension IL their systems 81
Internal Improvement.
STATE RIGHTS.
sorih Carolina, Dec. 90. 1855.
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