Smyrna times., 1866-01-17

applied to the payment of the principal. III
the fund arising from this source should not by |
future legislative action be diverted from the |
object contemplated by the Legislature Origina |
ting the law, but should be faithfully applied
to that object it will be sufficient to pay all the
bonds of the State before they arrive at matu-
rity. The wisdom of the Legislature in thus
providing the means for the extinguishment
of the debt they authorized to be constructed
cannot be too strongly commended, and it is
sincerely to be hoped that no part of this fund
will, by the action of any future Legislature,
be diverted from the object contemplated by
its OriginatOrs until that object is fully realized
The faith of the State is sOlemnly pledged for
the prpmpt payment of the principal and inter
est of her bonds; let not that faith be violated
To the keeping of the General Assembly alone
is cOnhded not only the funds, but the credit
OF the State, and it is your duty, gentlemen Of
the Senate and House Of Representatives, to
see that the one is not wasted or the other in
jured. This duty, | have no doubt, will be
faithfully performed. The credit of State
like that of an individual, is too sacred to be-
trifed with or neglected. | sugg, st to the Gen
eral Assembly whether there are not other lc-
gitimate objects Of taxation which might be
reached for the early eXtinguiShment of this
debt, which would not be burdensome to any
class OF our citizens.
State applicable to the support of the State
Government, together with certain taxes, fees,
fines, forteitures, &c, enumerated in Chapter
I OF the Revised Code has heretofore been
sufficient to meet the annual current expenses
of the State. For the nature and amounts Of
these investments and sources Of revenue, YOU
are referred to Chaptar :, page s, and for the
condition of the School Fund to Chapter 40,
page los, of the Revised Statutes.
I
ject intimately connected with, III fact cOnsti-
tute part OF the financial interests of the
State, and will demand the careful and delib-
crate consideration of the Legislature at its
present session. BY law of Congress, ap-
proved June 3Oth 1854, entitled An act to
amend an act entitled An act to provide inter
nal revenue to support the Government, to
pay interest on the public debt, and for other
purposes, 1t is declared, that every Ma
tlonal Banking Association, State Bank, or
State Banking Association, shall pay a tax Of
ten per centum on the amount of notes Of any
State Bank, or State Banking Association
paid out by them after the first day of July,
eighteen hundred and sixty-six. The circu-
latlon OF country banks constitute very large
proportion of their means of doing business
and aftordng accommodation to the communi-
ty. II Is therefore apparent that to continue
to do business after the first Of July and pay
to the Federal Government tax of ten per
centum on their entire circulation, while they
are permitted 10y State law to charge only six
per centum on their accommodations would
| be rulnOus to the State Banks. 1t is further
apparent, as it seems to me- that most, If not
all our State Banks will be compelled to cease
the banking business or to change the system
from that of State Banks to that Of National
associations under the provisions OF the act Of
Congress entitled AN act to provide Ma
tlonal currency secured by pledge Of United
States Bonds, and to provide for the circula-
ton and redemption thereof" Section A of
| this act provides, among other things, that
any bank Incorporated by special law, or any
banking institution organized under general
law Of any State may, by authority of this act,
| become n national association under it, provl-
slOnS, by the name prescribed in its OrganlZa-
! ton certificate; and in such case the articles
OF association and the organization certificate
required by this act may be executed by a ma
lorlty of the directors Of the bank or banking
lnstltutlon and said certificate shall declare
that the owners of two-thirds of the capital
stock have authorized the directors to make
such certihcate, and to change and convert the
SAID bank or banking institution into a ma
tlOnal association under this act" The whole
amount of the capital stock Of the Farmer $
Bank of the State Of Delaware is six hundred
and eighty thousand dollars. Of this amount
the State owns three hundred and sixty
thousand and seven hundred dollars and indi
viduals own three hundred and fourteen thou
sand three hundred dollars. 1t therefore ap-
pears that the Farmers Bank, with which pub
llc interest is more closely identified than al
the other banking institutions Of the State
cannot avail itself of the privileges Of bank
ing association under the act of Congress with
out tine consent and direction of the Legislature
Under these circumstances there was com
mItee appointed at an adjourned meeting OF
the stockholders, held on the 10Th of Decem.
bcr last, consisting of NJ. w. Bates, Edward
Rldgely and Joseph p. Comegys, Esqrs, tc
request the Governor, "if not incompatible
with his views, to recommend to the Legisla.
ture, which will meet on the 9th proxiuto, that
the State give It's assent to q conversion Of the
Farmers Bank into National Bank"
Having considered the subject as full as time
and opportunity would permit, | am convinced
of the wisdom Of the course proposed by the
individual stockholders, and earnestly recon.
mend that the Legislature comply with theil
request by giving its consent that the Farmers
Bank be converted into National Association
/ make this recommendation, not because
prefer the national to our present system Of
banking but as a choice of evils. Ii the Bank
could 20 on under its present system unatfect
ed BY the laws of Congress before referred to-
| | should greatly prefer it, but this cannot be
done. The question is between going into
liquidation, and going into the national sys
tenn prefer the latter. Under the natlona
system bank Accommodations will be greatly di-
minished. The capital of the Bank now loan
ed to the people will be required to purchase
Government bonds to be deposited with the
Treasurer thereof as the basis Of ban k opera
tions The Government, as soon as the necGs
sary amount of bonds are deposited with th'
: | will frrn oh 10
the Comptroller ole h Of the Currency, circulating
! notes OF different denominations, in black, reg
, lstered and countersigned, equal in amount {
, ninety per centum of the value of the bond
deposited. Fifteen per centum Of these note
are required to be kept in the vaults OF tn
bank, leaving but sevensy-fve per centum
the amount of capital for circulation this TO
gether with the deposits, will constitute .th'
whole means of accommodations For this in
convenience the bank will be partially compen
ssted by receiving from the Guverurgeut 81