Weekly North Carolina standard. [volume] (Raleigh, N.C.) 1850-1858, 1857-07-22
WHOLE NUMBER 1874

joint business In this light the meeting received,
canvassed, and decided upon the proposal And let
me assure you that, although the vote was very
decisive, il was given with great reluctance / do
not propose now, and perhaps never, to lay all their
reasons before the public, but allow me to say that
there were many provisions Of the charter Of high
importance, which were wholly irreconciabie with
each other and utterly incapable of construction.
Persons who have not read them will be astonished
to find SO many within so small compass of COM
position.
would not hesitate to appeal, for the justification
of the stockholders to any body party Of inteli
gent aad impartial men who might be assembled to
decide the question Besides the incongruities in
the act the capital was much too large and un.
wieldy for profit After carefully looking over the
State for its employment, were assured by our
President that it could not be used and If it
possible to it. that could be done only by stmu-
latng the public into unnecessary loans exravagant
expenses, and runous specuation-results which
have ever followed, and will always follow excessive
banking.
Now, gentlemen, ought the stockholders with the
apprehension of such evils before them have con-
tributed to introduce results disastrous to the
habits of an economical people and the industry of
our staid farmers? Besides q general demoraliza-
ton, the losses to the bank had been ruinous The
subscription Of $500 900 in State bonds was as you
say, great objection. No time was specified for
their redemption, and the Treasurer did not feel
authorized to give them q of less than thirty
years. Such bonds are now at about ninety. To
have taken them at par would have been paying
down at once bonus to the State of $50, ,000-an
exacton, | am sure, not contemplated by the legs-
lature. There is provision for redemption at an
early day. and there is no expectation that within
any reasonable time, the treasury will be in con-
dition to redeem them. The sinking fund is pledg-
ed only for their final redemption at the end Of their
time. II the Bank should have been pressed and
sold them, the loss would have fallen equally on
eoery corporator Now, just suppose that individu.
ais had claimed such privilege by subscribing their
bonds what would have been the opinion Of the
peoplef
But the most serious mistake in your remarks is
to be found in the following sentences:
"If the stockholders make fair profits, the School
fund and the University fund must make fair profits
also If the stockholders should be cramped in their
operations and their profits be lessened the School
fund and the University fund must suffer loss in
their income in the same proportion. The interest
of the stockholders and of the State is therefore
and indivisible; and this being the case il was
not, in our humble judgment to be fairly, or rea-
sonably, or justly presumed that the Legislature
would refuse to make such alterations and amend
ments in the charter as would be deemed best for
them and itself"
You forget that the School fund and the Univer.
sity stock not taxable while that of individuals
is subject to be taxed on the franchise, the
porate property, the share, and the dividends.
In all other Banks in the State the two latter are
now taxed seventy-6ve cents on the share and four
per cent on the dividend, SO that if the Bank has
declared dividend of seven per cent, these funds
would have received the full amount, and individ.
uals after paying their tax, would have received
less than six You perceive then, that the interests
not indivisble, and that the more shares there
be, the greater will be the State tax; yea, il the
Bank made nothing, and the present tax stood, the
income to the State would be seventy five cents
SHARE upwards of $14, ,O00
These funds might be well content to receive
seven per cent, and if they did, what would induce
the legislature to lower the tax or withdraw her
subscription of bonds, which, while yielding nothing
but coupons Of six per cent, would draw interest
| of seven
In conclusion, you should bear in mind that the
legislature cannot diminish the individual stock-tha
will be a uested interest. l feel confident that the
the charter is examined and canvassed in fair
ness, the more defended will be the stockholders
both in their motive and the wisdom of their conduct
| A STOCKHOLDER.