Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1857-01-07
REMARKS OF Mr.. HIf.Is
d Halitar, delicevsd IN tia HoHse Of Goasnsons
on the bill to charter The :" PeopkS Band or NORTH

EMAHAS. OF Nh HIt1lS sssssst .,5,%
Of Halifas, deliovsd IN tia House cf Gossnsons
on The biz to charter lhe !" People, Bans e 1eertk
Mr. SPEAKER: did not intend TO say word on
the Peoples Bank. belong sir, toa political par
ty in this House which is largely in the majority
They will be held responsible for the consumption Of
the public time. WAS therefore, unwilling uselessly
to protract this debate but since the gentlemen from
Guilford and Henderson have CONSUMED two days
in discussing the merits Of the BILL and defending
against objections, not one of which has been urged
upon this floor. I find it necessary to state
the reasons why the committee currency have re-
commended to the House that the bill do not pass.
was surprised, sir, after the time consumed by
both gentlemen in setting forth the great profits OF
banking, and in Dissenting to the House upon the
improperly of the States parting with the great
boon and portion Of her sovereignty, without just
and adequate compensation, to find in the charter
which they SO warmly advocated, that the State
restricted to paltry tax dividends equal to the
tax on the interest of money. And this, too, when
the institutions Of which they complain-thc old
banks--were paying in addition to this tax thirty
cents on every share Of the capital stock held by
private individuals but Sir. rs they have consented
to amend the charter in This respect will not dwell
longer upon it.
But Mr.. Speaker, there are two objects designed
to be effected by this charter which are unusual in
acts of similar character. The one is to enhance
the price Of railroad Stock and the other to confer
the sovereign and profitable privilege Of banking
clusyely on railroad stockholders Now, sir, con-
tend that twill not effect either object and ought
not to effect the latter. So =.
price of every article, and which Is fixed and i'm
muab.e the laws of gravitation 1t is the law Of
supply and der,and-when the supply is smaller
than the demand prices will rule high, when the
demand is less than the supply prices will rule low
nor can you begin favorably to effect prices until
r. L. m.
lustrate this by familiar example,: If there are
thousand bushels of wheat on the market, and de-
/ mand is created for only five hundred, it will not
effect the price for the reason that there will be two
sellers for buyer, and the competition created
by the desire of each seller that his wheat shall be
portion of the five hundred sold will rather carry
prices below the romnal quotation than carry them
up. So here with many millions Of railroad stock
upon the market. The fictitious demand which the
gentleman from Guilford would create by his bank
bill could not enhance its value for there would be
two sellers 70, every buyer of stock and the COM
in all probability carry the price below the present
nominal value, rather than improve it Thus it seems
to me, Mr. Speaker, the bill must fail to effect one
object intended, viz. the enhancement of the price
of railroad stock. -
Nor will this bill confer this privilege of banking
exclusively on the old railroad stockholders; who
have, we are told, made patriotic sacrifices in the
cause of internal Improvement and ought to be IA
vored by the State Money will, sir, seek invest
ment wherever it can profitably do so and if this
privilege of banking held out by this bill, is de-
srabe, and likely to be profitable, whoever has tho
money will buy the stock necessary and enjoy the
boon. So that, even the stockholders of the old
banks, who. are told have SO long fattened upon
bank dividends, may be the very recipients of the
bounty intended by the Peoples Bank to be confer
red upon those who have made sacrifices in the cause
of internal improvements. : .s -.
n..k. - ~ L. IL
it could be, created. Gentlemen tell us about pat
riotic sacrifices in the cause of internal improve
ment; but sir, those only make patriotic sacrifices
for the cause, who vote large appropriations here
without any personal interest in them, guided and
melted BY aloyeof the State of North Carolina her
prosperity and her fame Among her sisters. Ninety
out of every hundred Of those who subscribe to
these works of improvement, do so under the i'm.
pulse of that universal passion sef.interest, and
ninety out of every hundred, though they new
er realize one cent on their stock investment are
repaid by the enhanced value of their property, ten
twenty, fifty and some one hundred fold. This, sir,
is the very argument I have heard used by the
friends of railroads in this hall and elsewhere that
If their whole stock should be lost, the property
holders would be more than repaid by the enhanced
value of their property and yet notwithstanding
this admitted fact the gentleman from Guilfo,d and
the gentleman from Henderson, would make the
stockholders of railroads privileged Glass; and
fer upon them what they regard as great and SOW
ereign privilege while the constituents Of gentle
men of this House. who have never seen or heard of
these works of interna improvement except through
the Increased taxes, which the sheriff yearly col
lccts are to be excluded and set aside for lack of
meritorious service. IT. Mr.. Speaker, there is any
Justice, popularity reason in such course, have
not been able to perceive it. .-r..
But sir, if as we have been told and It seems
agreed to all hands, the State needs capital and
cannot do without it, advise gentlemen to pass
supplemental bill, that in case the bin should not
accomplish its purpose we may not be without the
requisite capital am one of those who believe il
you pass the bill, it will remain dead letter among
your laws; for sir of all things, money is the most
cautious, timid and practical; it despises theories
and novelties, and enters only where experience
and profit point the way; it takes all the chances
and never rejects one scheme to embrace worse
one of more doubtful character. +.
The bank of Cape Fear was authorized by the
Legislature of 1854 and '55 to increase its capital
$500. 900. The books of subscription were opened
at thrtyhree places in the State, and only SOL 900
was subscribed. Let recoect that this is the
oldest bank in North Carolina; chartered first in
1904, it survived all the financial difficulties created
by the failure of the Bank of the United States,
and having always been conducted with prudence
and profit stands deservedly high in public conf
| dence.
The Bank of Wilmington, with an authorized
capital of $500 0OO has had actually subscribed but
little over $500 600; SO that there is now with
these two banks nearly $7O0 600 Of stock not taken
ask then, by what reasoning upon known motives
of human action, can we expect the stock of the
Peoples Bank to be taken, when, in addition to the
ordinary payments of subscription, it is required
| that further investment of q share of railroad
stock be made? If men refuse to invest q hundred
dollars in bank capital, unencumbercd, is it natural
| or sensible to suppose they will do 30, when you
cucumber the investment with the tax of purchase
ftwo shares of railroad stock, confesscdly unprof
I'M rod tn hp hpca il
profitable; in other words, will men purchase thai
which they reject freely offered2 The question an
swers ITSELF and shows if we rely upon this charte,
to increase the banking capital Of the State we lear
! upon broken reed ~ go. s-.5.S -,
| Mr.. Speaker, such are some of the objections t.
that feature of the bill Of the gentlemen from Gull
ford which proposes to connect bank and RAILROAD