Weekly North Carolina standard. [volume] (Raleigh, N.C.) 1850-1858, 1856-02-27
For the Standard.
THE CURRENCY.
Editors NJ g. Standard:


Editors ~ C.. Standard:
GENTLEMEN: The interesting communication of
" Dauie" on the subject Of the currency, has no
doubt been perused with attention by yCur readers
generally. The author is doubtless correct in his
exposition of the different sections of the seth chap
ter Of the Revised Code on the subject of the cur
rency. 1t is perfectly clear from his showing, and
from the words of the statute, that no bank
pora.ion in the State has the right to issue, any
person or corporation the right To pass or circulate
as money, any note, bill certificate for less
sum than three dollars" Such is the statute, and
such law the Legislature had the right to pass,
and, as conceive, it was proper to pass.
We had in the State, the Bank of the State, the
Bank of Cape Fear. the Merchants Bank of New
bern, the Commercial Bank Of Wilmington, the
Bank Of Wadesborough the Farmers Bank, the
Bank of Charlotte, and the Bank of Yanceyville-
each restricted by their charters from issuing any
bill or note of less denomination than three dol |
lars. and the Merchants Bank Of Newbern limited |
to five dollars We had also the Bank of Fayette- |
vile, and the quasi bank, in the Life Insurance |
Company OF Greensborough, without any express |
restriction and, their friends say, with the right
to issue bills of denomination at their diScrc-
ton. At the last session, the Legislature endcav-
orcd far might be in its power to correct this
state of things, and to place currency |
sound basis, by raising bank circulation to five
dollars With this view and to this end, in the char
tcrs granted or amended, the new banks for
hidden to issue any bills for less amount than five
high and eXtravagant profits of the banks. and to
force them to give TO the community specie crcula
ton and change. For, as has beeh shown from the
experience of other States, as well own, it is
idle to talk of specie circulation while the banks
authorized to issue small notes. This being the
laudable object of the Legislature the third section
Of the currency act forbids any bank from issuing
auy note or bill of less denomination than three
dollars, under penalty of fifty dollars and a for
fcturc of its charter Such is the general law, foun
sl,o
for the public good
The question is, was it competent for the LegiS
lature pass such statute in respect to banks al
ready i'm existence, without violation of their char
ters? Some say it was not-the friends of legisla
tive control vicious and fraudulent currency.
say it The cry is that it is violation of vested
rights and of chartered privileges and the appeals
to the decision of the Supreme Court of the United
/ States i'm the celebrated Dartmouth College caSe-
The decision in this case affirms the principle tiata
ooration possesses only such powers its char
ter confcrs erpressly, incidental to its rery
existence" Thus far the decision controls the legis
| lave power and no farther This principle or rule
Of constitutional law w; settled by that great
|. FOUNDER Chief Justice Marshall. shall nni con-
| trnvert it. Banks stand on the ground in
| d;viduals SO far constitutional rights
crrned, but higher. The Legislature can more
| violate a contract with an individual than with
bank; but it has the power of police regulation, for
the benefit and protection of the >hole community;
aud this power is to be exercised though the banks
or individuals may think it invades their "vested
! rights" The same Court has said" any privilege
| which cxempts bank from the burthens common
| 10 individuals, does not flow necessarily from the
charter, int must he expressed an it, they do not
erist." Such being the ulc established by the
highest authority, the question is, does our statute
conflict with it? 1t doubtless is greatly 10 the ad-
vantage of the Fayetteville Bank to enjoy the exclu
sive right of flooding the country with its one and
two dollar notes, thereby d.basng bank curren-
cy and driving the specie from circulation; but il
will hardly be contcndcd that this privilege is
sary to its "very existence" Ii it be, then the
sooner the bank is forced to wind up the better
In case recently decided by the Supreme Court
of Vermont in which the Dartmouth College case is
fully examined and the power of the Legislature
corporations considered, the Chief Justice, in
a very able and lucid opinion, Aays:
sit is true that statute destroying the business
or profits of bank is void. Hence, statute for.
bidding banks from taking interest, or dscounting
bills, notes, would be void striking at the gen.
cral objects and purposes of the charter. But
general statute reducing the rate Of interest pun
| ishmg u<ury the issuing Of bills Of giren de-
nonination, has always been regarded as valid"
If this be so-and that it is admit Of no legal
, doubt-it covers the Case ard brings the Bank OF
Fayetteville and the quasi bank of Greensboroush
within the prohibition. Let any one test the qnes
tiun, by warran,ns for the fifty dollars, (and it is
surprising that it is not donc) and carry the ques
) ton bcfo,e the Supreme Court, and we shall sec
t whether the law be constitutional.
The Legislatures OF Virginia and MaryF have
forbidden their banks to Issue notes undc dol
lars; and there you find gold aud silver IN crcula
ton. South. Carolina has forbidden her banks tc
! issue notes under five dollars, except her State
bank-a disgrace to the State, as every honorable
man is forced 10 acknowledge; and there gold anC
silver as with u.s. aresnot 10 be seen. Tennessee,
authorizes dollar notcs-slver and gold ban
ished-the bank fails in recent case, and th
loss falls, sa it always will do, the poorer class
the least H' to bear it. What the people of thi
, kopl- mr.
this they will have however much spectators ant
A interested persons may complain. MACON.
the Standard.