Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1857-01-03

In 1886, the actual mot chartered) CAPT.
tai of her banks, was $3.50, 900
Bank notes in circulation, 1,439,u0O
Specie in banks 53l,O 900
In 1916, all her chartered capital had be-
come actual capital, and it was 3,225,000
Bank notes in circulation, 1,137,O 900
Decrease, 300, 600
Specie in banks, 100000
Increase, 571, 900
In 1866, the actual* capital was $685.. 600
Increase. 5000, 600
Bank notes in circulation, 5,9l6,OOO
Increase, 4779,OO0
Specie in banks, 100000
Increase. only $4,000
So it is seen that, while between 1886 and 1916,
there very trifing addition of actual and none
of chartered capital there was, between 1916 and
1865 an Increase of actual capital in the State of
about double, or upwards of So, 100000.
Taking heads of families to be, as indicated
by the number of voters, say about 100, 900, and
the issue to have been two for one, the paper cur
rency for each head Of families in 1886, was about
S57 per head. The increased currency, between
1915 and 1855, $64 per head and if the capital
be now increased 81 ,5OOOO an additional issue
will be authorized of So 900 900 more, equal to $50
per Matchmaking an increase in our paper curren-
cy of $94 per head, in the short space of twelve
years! Whether the interests of the public demand
this sudden increase in the circulating medium and
whether it can be protitaby absorbed in the egitim
ate trade ofthe State, deserves more attention than
to have been given thy the Legislature espe
ciay too, when the fact presents ITSELF that chartered
capital to the amount ota million md hatt light
ty tnred has, during sererat years past, fond no
subscribers. Does not prudent caution teach
us to pause awhile, or, at all events, to make short
STEP if we step ALL until We are able to see wheth-
err for good for evil this vast increase of the pa
per currency will control the affairs of business?
If such an increase is not, in fact demanded bank
profits must fall, the appetite for speculation must
be stimulated 10 enable the banks to use their priv
ege with profit IT. in the course of the expert
ment, which yet lies 6tore US, ascertain whether
the occupations of the people may usetully employ
this large augmentation Of the currency, these nsi
tuions should discover there rcdund ,ncy be-
20 I'd tn. wants of sober industry, and should be
self denying and wise enough to limit their accom-
modatons the actual wants of the community,
the profits must be diminished, and of all the suf-
erers the school fund, from its nappreciabe utility,
will be the greatest and its suiferngs will be most
deporably ielt. Again, if the tax on the banks is
high, this will serve stimulant to push redund
ant issues into USE and to produce, first imitation
Of the circulation then speculation, and ultimately,
ruin both TO the people and the currency.
The great and overruling interest of the public is
to preserve sound currency. This is the only le-
ultimate purpose Of banking. All else beside is
mere stock jobbing. The idea of providing profits
for the school fund.- for the State sinks into utter
insgni6cancy, when weighed against sound cur
rency. This is the very apple of the eye of public
parties, WILL at this day. be guilty of the folly Of be-
cunning banker. The managers Of politics have
never vet discovered the art of managing money,
more than they have of making their own bread
If the State would have good profits from her in.
vestments, she must have prudent partners; and
she can only have such partners by giving them
deep interest, and generous share OF the gains
These bestowed, not to enrich him, but the
surcst and only mode of enrichins the Stnte.
The first and great duty being to furnish and pre-
serve a sound currency, the means to do this ought
to be the best that can be procured, and abundant
enough to withstand the constantly recurring en-
barrasnents to which the currency 8 subjected; not
only from causes here but from causes happening
in every great mart of Chrstendom. For the mon
eyed connections of trade are as subtle and
sitivc the fluid that flies along the wire, and their
undulations are borne from the centre of shock,
through every region traversed by sail or steam.
BANKING ON STATE BONDS
The proposition which is spoken of, to substitute
State bonds for specie, basis for circulation, Is
ilusory, and if used to much extent, will prove both
deceptive to profits. and disastrous to the sound.
ness of the currency. They not specie, and can
not be used or relied on as such, in any crisis
True they impart confidence in the ultimate redemp-
ton Of the circulation much assets OF the bank;
but in this respect they better than any other
good notes due to the bank; and as prompt cash
fund, they are no more available than those notes.
A little consideration will demonstrate it. In pros
tent. At all times considerable portion Of the
capital is invested in what called specie funds
that is, for instance in bills of exchange drawn ON
points Of appreciation abroad. This is but an easy
and secure mode of removing the specie OF the bank
to distant places of trade, where our citizens may
need it, This is convenient to the people, and great
y contributes to enlarge the profits. Ofttlmes' Ia
this way considerable portion of the capital OF the
bank is in the form of exchange, and IN Northern
BANKS or in our own bonds, payable on tme' at the
North When trade is easy, and, indeed uaess a
crisis comes of such severity to PROSTATE general
CT edit they are convertible into SPECIE nstanter-
When however, such q crisis comes. this exchange
is often locked up in heavy amounts; ana the same
prostraton of credit will render State Dohos una
vailable, except by sale, at exorbtant rates OF ais
count. And thus, not only the capital necessarily
employed in exchange but that which is retained IN
the vault in the form of State bonds, will cease TO
be means of redemption, and the bank IS paraiyzed
at once Its only mode Of escape will be TO sell tue
bills at runous discount, or the State bonus d.
10 still more ruinous. Such bilis are now q. pa,
selected as least injurious to the indivIduni Stock
holder, the State will clamor forthwith against the
bank and, if in her power she will seize TIE ea!n
est opportunity to indemnify herself oy stretching
her prerogative Of taxation to its utmost limit II
the bank will save the State and sacrifice ITSELF there
is no prospect of indemnity to the individual stock
holder and If to avoid the sale OF both, tue 0ank
resort to suspension Of specie payments the state
becomes enlisted, in advance, as partlzan IN de-
fence of the measure, to the great injury OF the CIT
izen. &C. - Co. So =, ~
But it is obvious that in such an event, as an act
Of the commonest justice, the bonds ought trst to
be sold. at whatever price they may command Tor,
inasmuch as the State will have shared the profits
of the individual stockholders specie, while she sub
.ttuted these bonds for her specie, she is bound,
Il = -