Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1856-02-20
THE CURRENCY.


THE CURRENCY.
The editorial of the Fayetteville Observer of the
18th inst, entitled Pursuit of knowledge under
difficulties" is we'll calculated to the sober
minded people of the State not because of the in
situation that the laws the currency as they ap-
pear in the Revised Code, were never passed. sur
mise both silly and wicked-silly, because the re-
cords of the State department bear conclusive evil
dence of its alsy, and wicked, because it can SLAM
der those only who caused to be published what had
become, in due form, the law of the land and was
duly certified to them such,-but because of the
daring pretence that the "Greensborough Mutual
Life Insurance and Trust Company" were invested
with the franchise of furnishing circulating medi-
UNI for the State. Hear this exposition of charters,
who quotes without rebuke the substance of certain
remarks of the Greensborough Patriot:
'The Patriot makes some important statements
evidently by authority. For instance: A member
of the Legislature asked and obtained the privilege
of a hearing by the committee whose duty it
made to enquire whether the Greensborough Savings
Bank and the Bank of Fayetteville had violated
their charters by issuing 81 and 50 notes. Not be-
ing called upon to appear before the committee, he
enquired of one of its members how the matter was
progressing? when he informed that the COM
mittec had come to the conclusion that the nstitu
tons above named had the undoubted right, under
their charters, to issue the SIS and $2s complained
OF. There the matter was thought to be at an end.
1t was admitted that the Legislature had granted
certain privileges; and they could not now repeal
these charters could not, by direct acts de-
stroy these Banhs."
With the powers of the Bank of Fayetteville we
shall in these remarks have nothing to do. 1t is
bank, chartered for the purpose of furnishing
rency for the State, endowed with al! the faculties
for that purpose, plainly and expressly Its purpose
is to increase the paper medium of value and prices.
1t possesses all the requisites of bank designed to
extend commercial facilities Its character is stamp
ed on every section of its charter, and every
understands its objects. 1t has all the liberties ola
bank of circulation, exchange and deposit, and is
fettered expressly-saving the limitation to the
minimum denomination of the note allowed to be
issuedwith the restrictions imposed on other banks
1st the capital is limited. I'd, it is not allowed to
bank until certain portion is paid in. Sd, penal
ty of twelve per cent. is imposed on its notes. when
payment is refused. 4th, individual stockholders
made liable for the redemption of its issues. 5th
embezzlement and fraud are made felonies 9th, a
tax of twelve and half per cent is imposed each
share. 7th, annual reports are to be made to the
Legislature Sth false statements subject the Of
tenders to indictment. 9th, proceedings provid-
ed when its charter is violated. 10th, the Cashier
is required to take an oath. 11th the capital is to
be paid in specie, its equivalent 18th, the off.
to give bonds of 900 for good behavior.
18th, the bank is allowed to issue two dollars FOR
one of capital. The foregoing some of the most
prominent guards in the charter of this bank, for
protecting the currency against depreciation.
Now, what the provisions of that other "bank,"
for which is claimed the undoubted right " bv its
charter to issue one and two dollar notes? Let us
analyze its purpose end and view, as the same
disclosed on its face; and when We have done, we
think there will be rarely found bare.faced as
sumption and yet the Observer is content to speak
of them the taoo banks authorized to issue rs and
2's-the "insttutions Aauing the "undou6ted right
to do so under their charters.
Now, gentle reader, let us see by what authority
"the Grecnsborough Life Insurance and Trust Com
pany exists bank of the State.
There is certainly nothing of the odor of a bank
in its name
During the session of 1850 there were chartered
" the Milton Savings Institution" with capital of
$3.50, 600" the Raleigh Savings Institution" with
a capital of $3.50, O0O-"the Mechanics Savings So.
ciety of Weldon" with capital of $20,009-and
the Jackson Savings Institution in Northampton
County, with capital of $50, 900. To each of these
corporations wus given the power to receive sums
on deposit to invest the funds deposited in public
stocks other securities and to issue certificates to
the depositor to be paid to him when required, at
time certain or at such times with such interest,
and under such regulations as the companies
might severaly prescribe. There is no difficulty
in understanding the benevolent purpose of these
acts 1t was to encourage industry and morality,
by providing place of safety in which every one
might deposit his or her small gains, and have them
turned over with interest and repaid with the in
crease, just in the way (but with more certain
ty,) if the sums had been loaned by the persons
themselves on security The advantage was that
every surplus quarter of dollar would be actively
employed, and would ultimately swell into a fund of
practical value; when if left to ITSELF it would soon
be sqnandered, and, after long run of years, the
laborer would be no better off than when he COM
menced his toll, simply because his small gains were
too Insignificant to lend
Certainly, there was nothing in the name of "the
Greensboro Mutual Life Insurance and Trust Compa-
N.Y. to alarm the opponents of paper issues large
small. Its name indicates two-fold employment:
First that it will insure lives secondly THAT it will
hold funds in trust. In this latter capacity it indi.
Gates the purpose to as a savings institution,
company. The first section incorporates the COM
pany without declaring its purpose; the second de-
signates the corporate name, and grants to it the
usual incidents of corporation the third provides
for membership and election of officers tho fourth