Weekly standard. [volume] (Raleigh, N.C.) 1858-1865, 1859-03-30
From the Charlotte Democrat |

We publish this week the Act incorporating the
Bank of North Carolina. A friend, in whose judg-
ment We place much confidence, having had consid-
siderable experience in financial matters land who
was an advocate of rechartering the old Bank Of
the State' reviews the charter Of this new Bank as
follows
l propose, Mr.. Editor, with your permission to
occupy small portion Of your paper with an exam
ination into the charter Of the Bank of NorthCar
DINA" This charter will be viewed in different
lights by capitalists desiring investments
thinking it liberal and hard in its provisions whilst
others will deem it in the main fair and reasonable
Let us compare the points Of difference with the
Bank of the State" charter and see how the case
stands. The difference of any consequence will be
found in the clauses requiring the whole capital to
be paid up in specie, restricting issues to IS notes.
requiring the Bank to hold onethi-d of its circula-
ton in con regulating exchanges with other Banks,
requiring loan to the State and last most impor-
tant to capitalists, the taxing clause.
As to the frst-the realization of the capital in
coin: This, it is true may be somewhat onerOus up
the subscribers, but will be decidedly for the in
terest of the Bank. Under former charters stock
could be paid in specie its equivalent, and the
greater portion was paid in the equivalent viz:
Bank notes payable from the mountains to the sea-
board; and upon this the Bank would go into oper-
alton, flood the country with her circulation and the
specie basis of the State not be increased one dollar
Under THIS new cnarter inc STOCK Will be paid IN
con the Bank starts into existence strong her issue
feels the benefit and is at once received with conf
dence and circulates freely ~
AS to the limitation of notes to five dollars with
privilege of restricting to ten This is not object
tionable. Our Legislatures, in this, are pursuing
the proper policy and in future charters the small
note privilege is gradually abolished the people will
be benefited, and the Banks uninjured by the re-
striction Coin will come in to fill the vacuum, and
Bank notes be used for purposes where specie would
be cumbersome. 1t is a popular idea that Banks
make largely on small notes by the wear and tear
of circulation. This, apprehend, will not be veri-
fled by experience. In this day of easy communica-
ton from part Of the country to another, with
mail facilities, and Broker shops scattered more
thickly the country than the swarms of locusts
which settled down on Egypt Of old not many notes,
ween, however ragged or torn, but what sooner OF
later find their way home for redemption. There is
no great gain or advantage, then, to the Bank OF
community in q small note circulation. The restric
ton is to the benefit of the Bank saving expense Of
| plates and much labor on the part of officials.
With regard to the requirement that the Bank
shall hold one third of amount Of circulation in coin
Bank Of such capital as this, paid up in specie
with the State largely interested will attract to it
self heavy deposits. This then becomes anothe,
specie liability, and may be equal not greater thar
her crcuation yet she is only required to run ths
specie. proportion on her circulation proportion
which will not in practice be found any too large