The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1859-03-15
BANK OF NORTH CAROLINA.

We publish this week the Act incorporating the Bank
of North Carolina. A friend, in whose judgment
we place much confidence, having had considerable
experience in financial matters, (and who advo-
cate of rechartering the old Bank of the State)
views the charter of this Bank follows:
Ipropose, Mr. Editor with your permission to occupy
small portion of your paper with examination into
the charter of the Bank of North Carolina" This
charter will be viewed in different lights by capitalists
desiring observation-disclosures thinking it iberal and
hard provisions, whilst others will deem it in the
main fair and reasonable. Let compare the points
of difference with the Bank Of the State charter and
see how the stands The differences of any
sequence will be found in the clauses requiring the
whole capital be paid up in specie, restricting issues
to s. notes. requiring the Bank to hold onethrd of its
circulation in coin regulating exchanges with other
Banks requiring loan to the State, and last and
important to capitalists, the taxing clause
As to the rSt-the realization of the capital in COIN
This, it is true, may be somewhat upon the
subscribers but will be decidedly for the interest of
the Bank Under former charters stock could be paid
in specie its equivalent, and the greater portion
paid in the equivaent, viz: Bank notes payable from
the mountains to the board and upon this the Bank
would 90 into operation flood the country with her
circulation and the specie basis of State not be in
creased one dollar. Under this charter the stock
will be paid in coin the Bank starts into existence
strong issue feels the benefit and received
with confidence and crculates freely.
As the limitation Of notes to five dollars with pri
yege of restricting to ten This is Objectionable
Our Legislatures, in this pursuing the proper policy
and as in future charters the small note privilege is
gradually abolished the people will be benefited and
the Banks unnjured by the restriction. Coin will come
fill the vacuum, and Bank be used for pur-
poses where specie would be cumbersome. 1t is po-
pular idea that Banks make largely small notes by
the and of circulation. This, | apprehend
will be verified by experience. In this day of easy
communication from part of the country another
with mail facilities, and Broker shops scattered more
thickly the country than the of ocusts
which settled down on Egypt of old not many notes,
/ ween, however ragged or torn, but what
aterh their home redcmDtiOn here is no
great gain advantage, them 20 the Bank commune
" small note circulation. The restriction is the
benefit of the Bank, saving expense of plates and much
labor the part of officials.
With regard the requirement that the Bank shall
hold one third of amount of circulation in coin /: 4
Bank of such capital this paid up in specie with the
State largely interested, will attract to itself heavy de-
posts This then becomes another specie liability and
be equal fnot greater than her circulation; yet she
only required to the specie proportion her cir
cuatiOn, proportion which will not in practice be
found any too large.
The next subject for remark is the provision requiring
loan to the State. This is not unreasonable
quirement, for the State will b. heavy dcPOsitor at
certain seasons, large stakeholder, and may well
claim discounts to the amount stipulated for small in
comparison with her interest.
Then we have the clause regulating exchanges de-
mands upon other Banks. No hardship will be found
in this for there have the sGring clause that the notes
of the Bank making the demand must first he used.
This protects the point making the demand and when
her issues thus taken up the balance of the notes
received to that extent much of the liabilities of
the Bank relieved without the loss of dollar of coin
exchange in the operation
And come to the pith of the charter, the tax
alton clause. Let see how this compares with the
Bank of the State. When the Bank of the State
chartered in 1893, the debt of the State little
nothing, the revenue required was SMALL and the Bank
tax then imposed sufficient and i'll proportion to
other taxes. But the is widely different nOwthe
State debt has up to miiOns-thc revenue neces-
sary, apprOximating to million of dOarS-every spe
cieS of property dlabOr has to bear heavy taxand
it be expected that Bank taxes alone shall be sta
tionary? Banks should not be oppressed for they
useful to the State and the people, but they should bear
their proportion of the burden. Then, while other
have increased, the State only proposes for the
present here from IS 80 cents with
the privilege of carrying it dollar, and then it
stops. This Share paid for the privilege of bank
ing-it allows individuals to associate their capital to-
gehe to make capital by issuing notes to take interest
advance and to deal in exchange all OF which prlV
leges certainly demand return to the State COM
penSatOn, and the tax demanded therefor is not OPP
pressive. The State it is true, derives benefit from
this association of capital in good, sound wholesome
currency, and the knowledge of this and regard to
her interest will operate to prevent her from
running the to point too heavy to be compatible
with good and prudent banking The tax on dividends
is different species of from the foregoing, and
would have to be paid matter from what source the
interest dividend (unleSs from State coupon
sxes and is certainly the interest of the recipient
of dividends to pay the tax when realizing 8, or 10
per cent. than when only receiving simple interest.
In conclusion, think have shown that the proposed
Charter is in the main good one not perfect one
grant but still one which rU do, and one which, with
the large State interest involved the subscribers
reasonably expect future Legislatures to modify de-
sired
This Bank is needed to take the place of the one
going out. Our State is growing, new Railroads are
opening new fields to agricultural and all other in
terestS are being and more developed, and the
State presents far larger and wider field for the profit
able employment of Bank Capital than it did when the
old Bank went into operation in 1898. There not
a Railroad then in State; we have three great
lines IN full operation others in progress seeking the
mountains, and one from our own town opening di-
rect communication to the Seaboard, the Coalhelds
being opened, and in short everything pointing to a
brilliant future and demanding Bank Capital to carry
on the increasing business of the State. 1.