Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1856-02-13
cox,lun1cAT1oHs
For the Standard.


wears standing, and in part OF recent e"Sc'"'e">'
ought to be well understood
I propose, in very brief manner, to relieve tue"
Of the erroneous Interpretation to when '"ey u~:o
been subjected and, at the same time, 10 eAP'"'"
the policy Of their foundation.
In my opinion, the regulations are paul. """ ~'
of comprehension.
There are five sections which relate to the issue,
and two to the circulation Of paper as CURRENCY
these are sections 2, 8, 4, 8, =. .,.
Sec. forbids the treasurer to receive IN payment
public taxes, the notes OF any oa" %o,,srs
This section was intended to discourag" the ISSUE
Of small notes. (under three dOllarsJ II any oa,A
had the power to do so. IL was passed rs u resou'
tion in 1854 Although new law, 1t was not
new conception; for it had been spoken OF oy 'nnu-
entail members during the sessions OF looo-oa
The other five sections have clear and definite
aims: all of which are to restrain corporations Win
in the limits of their lawful being, and to preserve
the State from an inundaton of worthless paper, IN
70 which all substitutes for coin have constant ten
dency to degenerate, anu are prevented only ~ ''o
most careful restrictions.
The sections 9, 5, and 5, all on the same SUD-
ject, nanlely-the issue Of paper as a currency:
Sec. 2. By this section the banks are prohibited
from drawing drafts and checks, &c, payable III cur
reney-a practice prevailing at the passage OF the
act; but never known in the State, until the suspect"
sion Of specie payments, in May, 1851 =,
On the occasion of that extraordinary nnanciai
crisis A one of the means devised to accommodate
the public with the best currency, then aVa'iaoie'
and at the same time, to avoid the payment ana .ne
CONSEQUENT entire withdrawal OF specie from tue
State, the banks resorted to this species OF checA
and draft. -.
Upon the resumption Of specie payments, the
banks still continued the of this expedlen adop
ted in moment OF unparalleled emoarrass"'e"''
and tolerated then only because of its absolute ne
cessty and brought its down to the FIRST OF 'au'
arv, is56!-a period of nearly twenty years!
After the exieencv had raised, the banks, in good
faith ouoht at once have this selfdishon-
ored exchange and restored themselves to the entire
confidence Of commerce. both within and without
the State. But. as the public had submitted for
season. under the necessity of the occasion, with but
little complaint. the hanks ungenerousy took ad-
vantage of the forbearancc and continued to dis
pense az daily food, what was at first offered as
an unpalatable but necessary medicine, and taken
because it promised to be temporary.
In Justice, however. ought to say, that some two
years since, (nexcusably late. to be sure the bank
Of the State made efforts to drop this species OF mon
srel CURRENCY and to this laudable end invited the
cooperation Of all the other banks of the State
They all declined the measure; and the bank OF the
State alone undertook return to the specie check
system and has followed it alone. until the section
under consideration became the law of the land.
Whether some wretched device. i'll fraud OF the
we'll known intent of the power which gave them
ion of the slippery ecclesiastical corporations OF DID,
remains to be
Sec s. By this section the issue of small notes by
banks. under any pretence whatsoever, unless the
power be expressly given to them, is positively for
hidden.
This section was intended to inform the banks in
plain language that when they issued notes of less
denomination than three dollars. they must have a
better warrant for the emission, than mere legisa-
tive silence In other words. that such power
must be granted, "plainv and express "" in their
charters and not conured into life by constructive
implication.
An existing example gave birth to this section.
The charter Of "the bank Of Fayetteville" passed
in 1S4S. s silent to the denomination of the note
allowed to be issued At that time, the bank Of the
State and the bank Of Cane Fear. both chartered in
1888 were prohibited from issuing notes of less
amount than three dollars; and "the Merchants
bank. Of Newbern," chartered in 1884, was prohb-
tied from issuing notes of less amount than fire
dollars.
The old banks. in existence in $780, chartered
many years before, were allowed to issue notes of
small denomination one dollar. Their race
however, was near to its close in $780,
In that year the legislature deeming the circula-
ton of small notes an evil, undertook to redress it.
as far as practicable, by general law, to operate
not only on the present, but the future. And in
the session of that year, law was enacted which
may be found in the Revised Statutes mot Revised
Codc,) c. II. s. ]. by which it is provided, that it
shall not be lawful to pass " any bank note under
the denomination of five dollars issued bv any State
or sovereignty. or any body polite corporate not
authorized to issue the same by the laws of this
State"
This law at the time of its enactment. It il prob
ablc not supposed to be applicable to the banks
Of the State then in existence because of their ex-
pressly chartered rights in regard TO such issues:
and by the charters granted in 1888 and 1884 after
the passage Of the act of $780, the bank of the State
the bank Of Cape Fear, and the Merchants bank of
Newberne, were all substantially withdrawn from
its operation, by clauses expressly and plainly fix
ing the minimum denomination of notes allowed to
be issued BY them respectively
Still, however, the act in force as to the cir
cuation OF all notes under five dollars which might
be issued by any corporation not authorized to issue
the same by the laes Of tile State and so remained
in force, unmodicd, until the first day of January
1856, when it was substituted by the section under
consideration.
In the meantime to wit, in 1913, "the bank of
Fayetteville" was chartered. At this time Qs4s,)
is as certain as any proposition ofthe kind can be-
that the legislature did not intend to fall back ON the
sznau note currency and encourage its issue after
setting face against it. eithout a squint eren in
ah taror for eighteen gears. And it is not to be
questioned, that the legislature which granted the
charter OF the bank Of Fayetteville" either unin-
clause prohibiting the issue of small notes or relied
on the sufciency of the general law of 1870 to efct
that established policy. ~'~'
Nevertheless the bank of Fayetteville, because of
the silence in its charter, as to the denomination Of
notes allowed to be issued claimed the rcht to ;a
notes of any and every denomination 30 we'll sr
ten cents as ten dollars; and was exercisine this
claim as low as one dollar, solitary and alone Of MI
the banks Of the State excusing itself on the ground
that the act of 1880 affected only the notes Of banks
incorporated out of the State. " '"-A'
With knowledge of these facts. the lco;s,t,,,o -
1854 by general law, provides against all POSSIBLE
surprise in future and likewise against all pretence
for evadng, by constructive license the fixed and