Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1866-02-08
State md National Ranlxs

State and National Banks.
We publish to-day the lucid and able report of
of the Finance Committee submitted on Friday
last In the House of Commons, in recommending
the passage of the bill introduced by Mr. Smith of
Hartford, to authorize the banks of the State to
take stock in National Banks.
As the report explains thoroughly the bill, we
do not think it necessary to publish the latter.
similar bill has been introduced in the Senate
by Mr. Leach of Davidson, and has been reported
on favorably by the committee on Banks and Cur
cy, and is now pending in that body
The Committee on Finance, to whom referred the
to authorize the banks of the State subscribe stock
in National banks respectfully recommend its passage
and IN support of such recommendations offer the follow
TIE chief of the State is circulating medium
Her resources lie undeyeloped, industry and trade
stagna creditors and debtors the poor all
suffer from the same common From the want of
from prosraton of of sacrifice Money must
be supplied, or they will fall into despair
The only available in the relieving this
distress lies with tbs banks though they share in the
@en at its special request The notes then Issued are
stu out standing and must be paid Still another loss has
resulted from the calamities falling the debtors they
60 INTO Liquidation now, those loans will be many times
But with all their misforunes by ndefatigable
erons from financial dangers perils of robbers the
specie in their vaults remains to aid the State if properly
cannot remain i'll their esent condition The pursuits of
creditors will force the to action. The question
ing out their assests, from time to tme where collected
to their creditors whether these assets shall be used
bonds
bank artificial person. the powers and duties of
which enuncated in it's charter created, not for the
benefit of indvduas but to supply sound currency
are, first and chiefly the community all of whose opera
tons will be obstruced by bad circulating medium
depOSltOrs thirdly, debtors
the bank and their sures, and last and least of all the
The committee of opinion, that all these classes will
sgnay E suffer from winding up the banks at this time
amount of their stock The University the bank of
North Carolina balance of $4,000 for purchase Of $780,
have all taken oath preserve will be ruined The
bank investments in the State the Literary Fund, will
schools while thousands Of widows and orphans will
be deprived of their sole dependence for bread
81. The creditors of the banks the note holders and
general deposors will lose large portion of their dues
The Sd in the B odn ds about sd their debt
This fund will only pay ten cents the dollar and the
credits will be almost worthless from the general prosra
3D. The debtors of the banks being called upon their
must succumb under the additional burden. Nor will the
principals alone be ruined Their securities large and
by the sure slow approach Of the Judgment which may
sweep away the relics of their fortunes.
4 me eommuy While this rnoFs is going
dunn with the of relief wrenched from them before
lie at the mercy of their richer neghbors of the North
The usur1os e1aclons of the past few months will be
city money will Continue to give as has been
three per per month"; for temporary loans
committee learn has been done in Georgia and perhaps
in North Carolina seven per cent per annum, with one
fourth OF their entire secured by mortgage real
estate
The debtors of the banks their fall will carry
thousands of others connected with them the operations
their taxes and the holders of the public debt will fail to
receive interest for series of years to The gold
of the people of this State Most of the notes held
abroad and the gold will go swell the Golfers of those
boarded the notes have been during the and the
scarcity (which forced from distressed debtors,
The committee of the opinion that this wide-s read
ruin may be averted by the policy showed forth il the
let it be used in bringing into midst the circulating
medium which we Sc much need This will be of equal
benefit to the community the debtors and creditors OF the
banks; and evenualy to extent to the stockholders
It will make the gold Of the banks an bearing
their obligations, and will give the creditors their dues
The first section of the bill authorizes the banks sub
scribe for stock in national banking associations Each
bank to decide for itself whether to exercise the author
iy, if So what extent When the stock is taken
be entitled to accrung dividends The liability of its cred-
holders be changed in any degree.
Section second commands That the dividends paid the
profits Of the institutions have generally been large and
successful TIE creditors Of the old bank will be gamers
The stock itself will not be beyond their reach 1t will be
subject to the same liabilities the funds with which it
purchased. In spite of their interest," the note
though by the Sale the old bank viii not reap the full bene
fits Of the proposed planthe chieest goodthe relief of
tinuance of a national bank of large means
Section third repeats clauses of the charter III conflict
with this act when 1t Is accepted and section fourth
authorizes the banks to make assignment of their
assets for the equal benefit Of their creditors This is
necessary to prevent noteholders in other states from
bringing suits in the Federal courts and thereby gaining
precedence the home creditor whose
decided in the State courts
The committee find the beneficial effects of this policy
so well portrayed in the message of his Exceency, the
GOVERNOR that they beg leave to quote his words this
subject:
The large amount of money which the University and
Board OF Literature have in the two principal banks and
the Investments held by citizens in all Of Them (in-
Guiding the widows and orphans and the great
some suggestion on these subjects. make them with
much diffdence, having been interested in any
banking institution, and not having made the subject
matter of much consideration. The United States has
adopted system of national banking looking to uniform
currency throughout the United States 1t is our duty to
conform to this policy.
The fortunes our capitalists have been swept away
How to raise the of establishing national
banks
and railroad companies, hope may be DONE Several
of railroads. in which the State holds large stock
in sound condition. Some of them little moth
The reports of the banks which were procured under
the orders of the Provisional Governor and have been
printed and laid before show round numbers that
these banks have little above $500 900 of speceand
that they to the holders of their notes and deposit
tors about So 000O and that there is due them
discounts before the about 900 OOO and for dis
counts since the about So, 600 OO0
If the banks forced to make assignment and &c
into general liquidation in order to make equitable
rata distribution of their assets among all their cred
tors (Which must be the nothing be done by you
cents in the dollar in specie and such further dividend
collections from their debtors might enable them make
manifest that little be expected from these collec
tons.