The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1856-02-06

MrssRs. Eorroas: Thnse who have paid the
least attention To the business transacted by
Iaust &c the Legislatures II the different
States must have been struck with the great
facility with which bank charters are Pro
cured ard the States induced IL increase
their debts at every session. The thought
has occurred tome that there must be some
powerful artificial cause operating upon the
public mind IL produce these results.
There are nov if | mistake not, near seven.
teen hundred banks, branches and Offices Of
discount and depnslte in the United States,
aud vet every Legislature that con,enes IL
literally besicsea with applications TO grant
charters Tor ncw banks. Ii would seem from
,his that there is any aNi,diit ni capital IN the
cpuniry seeking investment. Why IS II
That so many shuald wish to invest their SUR
plus means in hank stGcks. and so few be
willing to came forward and aid their res
pectise States in constructing the necessary
works Of internal Improvement 70 deyelope
their resources! Ii is yident that railroads
find great favor sita the people, o. our legls,
laofs world net have been sustained IN the
course they have SO long pursued IN some Of
the States, TO Nit, borrowing money on the
faith and credit Of the State to construct
most Of their great works OF improvement.
Fortunately We are not left TO conjecture
ia accounting for tie preferences oicapitaiists
in their objects at investment.
The Railroad journal, in summing up tic
aggregate cost of all the railroads OF this
country. and taen contrasting this sum with
The cash vsiue of the stock III market, comes
10 the conclusion. BY figures, that The ssid
stock, On the average, is at least twenty eight
percent. under par, and, consequently, worth
little or nothing to the holder as an invest
ment, pecuaiary results alone beingiconsIder-
ed.
Il has never been ascertained, that know
Of, what is the average premium on the bank
stock Of the country; yet am confident, from
such observation and investigation as have
been able TO give this matter, that it cannot
be less than fifteen to TWENTY-FIVE per cent;
probably nearer The latter than tie former.
OF one thing ain confident, that the net
annual profits on the aggregate bank capital
Of the country average al least ten per cen
tum.
Nov, the fact is well sscertaiped that as
railroads increase, tie profits Of banking IN
crease also. 1t is not strange, then, thai cap
iialsts should combine, aid exert their ener.
ges, wealth, and influence. to produce the
very results, that We see Transporting around
us. Ii the capitalists Of the interior and
Southern States can procure bank charters
from their liberal Legislatures without being
required to pay the states cent for them,
and at the same time be able, with other IN
tefes;ed parties, 10 induce these same States
W increase their debts by issuing bonds and
borrowing money on them to constract their
great lines Of improvement, what more could
they ask: The constructors uf these improve
ments Il the expense Ut the States AND oG
those Who are engaged in the industrial pur.
suits OF life, must b. 10 them a.souree Of e.
tra0rdin.ry profit, BIZ increasing the deposits
in their banks. by the facilitating Of their
dealing in exchanges. and the general increase
of their business.
Ii will not do 10 saw that these moueyed
corporations are taxed, ~ common with IN.
diYideal citizens. and IN the same proportion
on their wealth and profits, 10 raise The re-
venue necessary 10 meet tie annual interest
an tie public debit. Sssii is not tie fact.
The b,.aksssre taxed, il j. true, from twenty
10 twenty-five cents On the shate; bot il j, not
true that the stockholders paJ the tar; their
customers and tie Pablo pas Il. 1t caly
dlminishes the iiYideads IL The stockholders;
bat. a. they realize more than the leg1l IN
terest Of the country, from four to eight per
centum, Il is worse than idle 10 call this
tax on the stock holders as individuals. This
will appear in strong light when We rcmem
Der that a who have mDneg to loan are limit
ej b. law % sis per cent1m per sunam, and
have also 70 pst neatly TIE SAME alaDgst of
Tax Oh the hundred .oilar. that the banks
have 10 pas PEI .iare III tlef stock. Now,
as tie Io.ses ar generally admitted TO BE-
greater III inditdual loans than they are oil
loans made BY tie babss. We can readily per.
oeise why il i that there i. such aHn.yegsai
rush making every where Tor bank charters
and bank stock.
There Is another fart which adds--greatls
20 The profits u hansing, and causes men IL
means u withhold peeaniary an Iron work
81 internal Improvement. 70 vii that most.
II noi al. Tie banls Il tie different State.
are exempted b. law irnm taxation, while tie
interest % mo.t case. i made payable Ill lie
city Of New Yofs.
Again: !, significant fact, and ur-
Nhts1 W.T. ~ thkttt at6hiNJf ttFt1ldtt1
in the agricultural states. where We see tie
rates 81 exchange stsadily advancing, that
neatly all the tanks have ibe privilege noi
oaiy 70 hold. bsi 70 trade IL public stocks 70
hall tie amount III ilseir rspital, and often II
Tie whole amount II .tlier surplus lpnd..
AMI. 10 this c0nneHi0n. We have never known
tgch surplus ftnds limited il ans given
amaant 10 any bank. Under these eirern.
stances We not ihr banks induced b purchase
up and deposit al ihe bnRds u tie States
which they can 20; u ARE authorized u Ibid
with tie banker. apI brokers II ihe tJmmrr.
rial eiiiess itnls, 81 remembered that il
il 10 The large commercial cities. aud under
such circumstances ait1e as Ne aiiule I'll,