Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1858-11-03


As there is now calm in the public mind we'll
fitted for the consideration Of financial matters and
that mind, although the press Of the State is silent
on the subject is deeply engaged in inquiry and de-
liberation on the currency and debt of the State,
propose to offer some suggestions for the consdera.
ton of the members elect to the General Assembly.
is known that THE body must provide the
of redeemng about $700 600 of the debt Of the State
1860.
There are two modes of doing this which at once
occur to the mind: LIST, by taxation I'd, by the is
sue of State bonds.
The former is not likely to be resorted to except
to limited extent. The addition in each year 1859
and 1860 of $350,00O to the sum necessary to be
raised to supply the current governmental expenses
and interest on the debt already created and in the
process of creation, would be very onerous and not
likely to meet with favor from any quarter.
The latter mode would involve a sale of the bonds
at discount, and would not tend to strengthen the
credit of those already in being. Indeed, unless
some strong and reliable provision were made for
date the debt thus postponed. the very issuing of
them would depreciate the State credit Such brief
~, is our monetary condition.
The public mind seems also to be settled in the
conclusion that the present Bank of the State must
be re-chartered or another one created. Now, my
suggestion is this
l. Charter a bank, recharter the bank of the
State, with capital of 81, 500, 600 Its stock to
consist of the School fund, and the University fund.-
and the residue Of individual stock.
O. Let it be the duty of the bank to redeem $780,.
600 in value of the bonds they fall DUE earlier
It the bank and holder can agree; the bank to hold
them and receive six per cent. on them until they
shall be redeemed by the State,-the State redeem:
ing at least 600 each year, and if it shall
choose; thus making the total redemption at the
furthest, in ten years. As the bonds shall be
deemed the amount paid to become stock in the
han he incre IF 81 fhnc ho al
and il, by the accumulation, shall become too great
it may be curtailed by application to the Legisla-
ture.
8. The basis of capital, however, on which dis
counts are to be made, is not to be larger than the
amount of actual money capital, not reckoning as
part thereof any portion of the unredeemed bonds.
This will prevent the dangerous experiment of bank
ing on permanent basis Of State credit. In the d.
vision of dividends the stock will be represented in
full at $2,5O0,OoO.
4. Let the bank be required to lend the State
5000, COO without interest.
5. Let the bank pay out no notes in the negotia-
ton Of paper but its own issue. This is found to be
the sqrest guaranty aganst excessive issues
on individual stock be paid to the State far the
school fund.
z. Let there be contingent .fund, not exceeding
or per cent on the operating capital, which, on
the winding up of the bank, shall belong to the
State.
O. Let tnere Oe no TAX on tue Oank, IN cOnSluera-
ton of the advantages and bonuses to the State.
9. Let there be no bill issued under S..
l omit to specify any other provisions, because
they mere matters of detail and if these
ceptabe it cannot be readily supposed there will be
much difficulty as to those of less importance.
If such charter shall be passed at the early part
of the session, the success failure of it will be
shown in few weeks-whether the charter shall
continue the present bank or originate one.
A CITIZEN.
NoTE-Ths scheme is presented after much and long de-
liberation. well know how easy sefdecepton is in
pursuit OF fvoe policy and guard against that
present this scheme now with the approval of several
whose experience strong proof that the features
least, are uttarian and practical.