Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1856-02-23
For the Standard.
THE CURRENCY

THE CURRENCY.
Editors N c. Standard:
= GENTLEMEN: The interesting communication of
=" Darie" on the subject of the currency, has no
doubt been perused with attention by your readers
generally. The author is doubtless correct in his
exposition Of the different sections of the 36h chap
ter of the Revised Code the subject Of the
rency 1t is perfectly clear from his showing, and
from the words of the statute, that bank or cor
poration in the State has the right to ISSUE nor any
person or corporation the right to pass or circulate
as money, any note, bill or certificate "for less
sum than three dollars" Such is the statute, and
such law the Legislature had the right 10 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 marlborough, the Farmers Bank, the
Bank of Charlotte and the Bank of Yanceyville-
each restricted by their charters from issuing any
bill note of less denomination than three dol
lars, arid the Merchants Bank of Newborn limited
to five dollars. We had also the Bank of Fayette.
vile, and the quasi bank, in the Life Insurance
Company Of Grcensborough, without any express
restriction, and, their friends say, with the right
to issue bills of any denomination, at their discrc
ton. At the last session, the Legislature endeav-
ored far might be in its power. to correct this
state OF things and to place our currency on a
sound basis, by raising bank circulation to five
dollars. With this view and to this end in the char
tiers granted or amended, the new banks for.
hidden to issue any bills for less amount than five
dollars. The policy and object to lessen the
high and cxtravagant profits of the banks, and to
force them to give to the community specie circula
ton and change. For, as has been shown from the
experience of other States, well own it is
idle to talk of specie circulation while the banks
are authorized to issue small notes. This being the
laudabe object of the Legislature, the third section
of the currency act forbids any bank from issuing
auy note bill of less denomination than three
dollars under penalty Of fifty dollars and for
fixture of its charter Such is the general law, foun
ded on public policy, and the Legislature thought,
| for the public good
The question is, was it competent for the Legs-
lature to pass such statute in respect to banks al
ready in existence, without violation of their char
| ters? Some say it was not-thc friends of legisa-
tive control over vicious and fraudulent currency,
say it The cry is that it violation of vested
rights and of chartered privileges and the appeals
to the decision of the Supreme Court of the United
States in the celebrated Dartmouth College CASE
The decision i'll this case afirms the principle that
corporation possesses only such powers as its char
ter confers "espressy, incidental to its rery
existence" Thus far the decision controls the legs
lative power, and no farther This principle rule
| of constitutional law settled by that great ex
FOUNDER Chief Justice Marshall. l shall not con-
trovert it. Banks stand on the same ground as in
dviduals SO far constitutional rights con-
ccrned, but no higher. The Legislature can no more
violate contract with an individual than with
|
the benefit and protection of the whole community;
and this power is to be exercised, though the banks
or individuals may think it invadcs their "vested
rights The same Court has said-"any privilege
which exempts bank from the burthcns common
to individuals, does not flow necessarily from the
charter but must be expressed in it, they do not
erist." Such being the rule as established by the
highest authority the question is, docs statute
conflict with it? 1t doubtless is greatly 10 the ad-
vantage of the Fayetteville Bank to enjoy the cxclu
a.
two dollar notes, thereby dcbasng our bank curren
cy and driving the specie from circulaton but il
will hardly be contended that this privilege is
sary to its Every existence" If 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 is
fully examined, and the power Of the Legislature
over corporations considered the Chief Justice, If
very able and lucid opinion, says:
at is true that a statute destroying the business
or profits of bank, is void. Hence, statute for
bidding banks from taking interest," or discountine
bills or notes, would be void, as striking at the gen
eral objects and purposes of the charter. But 9
general statute, reducing the rate of interest pun
shing usury, or the issuing Of bills Of a giren de
nomination, has always been regarded as valid
If this be so-and that it is can admit of no lega
Doubt covers the case, and brings the Bank o
Fayetteville and the quasi bank of Greensborougt
within the prohibition Let any one test the ques
ton, by warrantng for the fifty dollars, (and it is
surprising that it is not done.) and carry the ques
ton before the Supreme Court, and we shall SEE
whether the law be constitutional.
The Legislatures of Virginia and Maryland have
forbidden their banks to issue notes under five dol
ars and there you find gold aud silver circula
ton. South Carolina has forbidden her banks te
issue notes under five dollars, except her State
bank-a disgrace to the State, as every honorable
man is forced to acknowledges; and there gold ant
silver, with US, are not 10 be seen. Tennessee
authorizes dollar notes-silver and gold are ban
shed-the bank falls in recent case, and the
loss falls, it always will do on the poorer class
the least able to bear it. What the people of th.
State want is sound bank specie circulation; ant
this they will have, however much spectators ant
interested persons may complain. MACON.