Delaware Republican. (Wilmington, Del.) 1843-1874, 1866-01-15

Hnu 'ne ttA tfcM the fhtiadelph1a, wilmington
and Baltimore Railroad Company, tor th
month OF November, should equal the averag,
for the eleven months preceding, the Who'll,
amount OF revenue from this source would no
be less than from one hundred aud six to one
hundred and ton thousand dollars for the year
ending the inst OF december last; a sum sutii
Client TO pay the annual interest on all the
bonds OF tho State, amounting to sixty .si,
thousand and six hundred dollars, aud lsav.
log balance Of about forty thousand dollars
to be app lied to the payment OF the principal.
" the fund arising from this source shsuld
not by future legislative action be diverted
from the scbIect contemplated by the leeisla-
tnre originating the law, but should be faith
fnlly applied 10 that object, II will be sufficient
to pay all the bonds OF the State before they
arrive a. maturity. The wisdom of the Legis.
luture In thus providing the means for the er
unguishment of tho debt iLey authorised to
DO contracted cannot be too strongly commeu-
dsd, and 1t Ia sincerely to be hoped no part Of
TINS iund Will by the action of any future Leg
| islature, be diverted from the object eontem.
plated BY its orlginators until that object Ia
rally realized. Tho faith of the State Is SOL
smniy pledged for tue prom pit payment OF the
principal aud interest of her bonds; let
! not thai faith be violated. To the
keeping OF the General Assembly alone 10 con-
aded, not only the lands, but the credit OF the
State, aud 1t Is your duty. Gentlemen OF the
Senate and House OF Representatives, to see
thai the ons is not wasted or the other injured.
Thls duty have no donbt, will be faithfully
reformed The credit OF State, like that Of
an Individual, 10 too sacred to be tr,aed with
or neglected. suggest TO the General As
sembly whether there are not other legitimate
subjects OF taxation which might be reached
tor the early extinguishment of this debt,
which would not be burdensome 10 any elass
of our citizens
The Income from the Investments OF the
state applicable to the support OF the State
dovernment, together with certain taxes, fees,
lines, forfeitures, &C., enumerated in Chapter
OF the Revised Code, has heretofore been
somoient 10 meet the annual current expenses
OF the State. For the nature and amounts Of
these investments and sources OF revenue, you
are referred TO Chapter I, pages; aud for the
condition OF the School Fund to Chapter 40,
page los, of the Revised Statutes.
Tho condition OF our State Banks is = sub
Jset intimately connected with in fact consti.
tute psrt Of the financial interests of the
State, and will demand the careful and delib-
crate consideration OF the Legislature at its
present session. By a law OF Congress, ap-
proved June sO'h, 1864, entitled IAN act 10
amend au act entitled An act TO provide inter-
nal revenue to support the Government, to pay
poses, II Is declared "that every National
Banklng Association, State Bank, or State
Banking Association, shall pay q tax of ten
per centum on the amount OF notes of any
state Bank or State Banking Association, paid
out by them afier the FIRST day Of July, 1896"
The circulation Of country banks constitutes q
very large proportion of their means OF doing
business and afordlng accommodation 10 the
community. 1t is therefore apparent that 70
Continue to do business after the fret Of July
and pay to the Federal Government a tax oil
ten per centum on their entire circulation,
while they are permitted by State law to charge
only six per centum on their .aceommo modations,
would be ruinous To the State Banks. II 10 fur
ther apparent, as II seems to ne, that most,
If not all, OF our State Banks will be compelled
TO cease tho banking business or TO change
eheir systsm fron that OF State baaks to that
OF National Associations under this provisions
OF the act OF Congress entitled "An act to pro.
vide national currency secured by a pledge
OF United States Bonds, and to provide for the
circulation and redemption thersoI." Section
- OF this act provides, among other things,
"that auy bank Incorporated by special law,
or any Banking institution orgauizsd under
general law Of any State may, by authority OF
THIS act, become national association andsr
i1s provisions. by the name prescribed In its
organization certificate and in such case the |
certificate required by this act may be execu-
ted by majority of the directors OF the bank
or banking institution aud said certificate
snail declare that the owners Of two thirds OF
The capital stock have authorized the directors
10 make such certificate and 10 change and
convert the said bank or banking institution
into national association under this act."-
The whole amount Of the capital stock of the
Farmers Bank OF the State of Dslawa are 10 siI
al md dnll In |
amount the State owns three hundred and six
ty-6vc thousand and seven hundred dollars,
and individuals own three hundred and four
Teen thousand three hundred dollars. II there
fore appears that the Farmers Bank, with
whichpublic interest 10 lore closely Identified
than all the other banking Institutions OF the
Ststs, cannot avail itself OF the privileges of q
baking association under the act OF Congress
without the consent and direction Of the Leg
lslsturs. Under these circumstances there was
c'nmittss appointed at an adjourned meet
ng Of the stockholders, held oi The 26th of
December last, eonsisting of N. W. Bates, Ed
ward Ridgely and Joseph P. Comegys, Rsqrs.,
70 rqnest the Governor, "if not incompatible
Win his views, to recommend TO the Lsgisla-
lure, which will meet on the 9th proxlmo, that
the State give Its assent to a conversion of the
barners' Bank into National Bank.
Having considered the subject as fally ss
time and opportunity would permit, am con.
yiuced OF the wisdom OF the eourse proposed
by the Individual stocking oldsrs, and earnestly
recommend that the Legislature comply with
their request by giving Its consent that the
fsrmers' Bank be converted into a national
association. | make this recommendation not
because prefer the national to our present
System Of banking, bat as a choice Of evils. II
the bana could 60 on under lts present system
unaffected by the laws of Congress before re-
ferred to, should greatly prefer it, but This
cannot be done. The question 10 between GO
log into liquidation, and gotug into the nstionsl
system. prefer the latter. Under the nation
al systsn bank accommo odatIons will be great,
ly diminished The capital OF the Bank now
loaned TO the people will be required to pur-
chase Government bends to be deposited with
the Treasurer thereof Us the basis Of bank op
erations. The Government, as soon as the
necessary amount Of bonds are deposited with |
the Treasurer will furnish to the bank through |
the Comptroller of the Currency, circulating |
notes Of different denominations, in blank reg |
istsred and countsrSgned, equal in amount to |
ninety per centun of tho value of the bonds |
deposited. q Fifteen per oentum OF these netes |
are required to be kept In the vaults Of the |
bank leaving but seventy fve per esntu9 of
the amount OF capital for circulation this, |
together with the deposits will constitute the |
whole means OF accom- N odatiOns. For this |
Inconvenience the bank will be partially com
pensated by recsivng from the Government siA |
per cent In gold on the amount of bonds trAus-
fsrred and delivered to the Treasurer of the |
III. "a. NTt-