The weekly North-Carolina standard. [volume] (Raleigh, N.C.) 186?-1869, 1866-02-14
REPORT ON BANKS AND BANKINe

REPORT ON BANKS AND BANKING
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The Joint Select Committee, to whom so
much Of the Goyemor's Message as refers to
Banks and Banking, and the Resolutions in
quiring into the conditions Of the Banks Of
the State were referred, beg leave to submit +
the following report !. s',a,.a III ,ss4,
If the corporations of the Banks still ex.
list unimpaired by the revolution and its lie. I
gal consequences, the Legislature cannot
legitimateIy interfere with their capital, Or
divert it to any other purposes than those
authorized by their charters, until the out
standing obligations are discharged: for such
legislation would tend to impair contracts,
which the Constitution of the United States
forbids. These institutions are largely in
debt; the debts contracted on the faith and
them to keep in their vaults Any legisla.
ton authorizing the transfer Of that coin in.
to another direction by the corporation is.
in the opinion Of the Committee, in spirit
if not in letter, q violation of a contract.
After carefully Investigating the subject
the Committee is Of the opinion that ali, or
nearly all, Of the corporations of the State
have ceased as corporations to exist, as Ie.
gal consequence of the revolution. and fine
complete conquest Of the State. Ii isawell
settled principle of international law. $50 we'll
settled 1t IS unnecessary to refer to authors
ties that In conquered country all laws and
all nights OF persons and property cease to
exist, except such laws and such rights as the
conqueror chooses to decree. No one will
deny that the South was conquered and sur
rendered without terms no one can doubt
that in the opinion of President johnson, we
were conquered people, and that he, as
Commander-in-chief of the armies of the
conquering power, had right to decree such
laws as to him seemed best He refused to
accept the terms offered by General Sherman
to recognize North Carolina as de tacto gov
ernment He proceeded in manner un-
known to our laws, to appoint Provisional
| Governor; without the forms of law, he de-
prives the people of the State of two-thirds
of their property, without "just compensa-
tion;" he declares in his proclamation, not
that part of the civil laws were at an end,
| but that all civil government was at an end
in North Carolina" He provided for call
of Convention, not in accordance with our
Constitution, prescribing qualifications for
| delegates and voters in manner unknown
| to our laws. In obedience to the will of the
President, the Provisional Governor declares
all civil offices in the State vacant, and pro-
ceeds to fill the same, prescribing officers for
corporations, and qualifications for stock.
holders in said corporations as voters, or
proxies: regulates our Courts, when and
where to be held, and what subjects should
be cognizable before them. In obedience to
the proclamation of the Governor, a Conven-
ton assembled, which Convention, by acts,
accepts of and recognizes the fact that it was
called by the authority of the President as a
conqueror, and proceeded to act according to
said terms, receiving messages and dispatches
from the President controlling the action Of
the Convention in matters of vital impor-
lance to the people of the State, abolishing
slavery, removing all civil officers, and de-
claring by ordinance, that Whereas, doubts
may arise from the late attempt of North
Carolina to secede from the United States,
whether any and what laws have been and
now are in force, &C." and ordaining by said
ordinance all laws not inconsistent with the
/ Constitution of the United States, &c. The
Convention gives legality to the principle
that it was decreed by the President as con-
queror, otherwise, we have had no Conven-
ton. There is now no civil government, no
LtylSldIQTt, us Ill OWc tIltlI cAlStcuCt W tHc
permission of the President, and not to Con-
stitutional forms. This idea of the supreme
power of the President has been acquiesced
in by the people, by the Convention, and is
now recognized by the Legislature enacting
such laws as are decreed by the President
he not only recommending, but demanding
such and such measures as a condition prece-
dent to civil government Measures at va
! rance with what we deem to be our best in
terest. and repugnant to all of our feelings
have been, and are continually being enacted
simply becauseit was so decreed by the Pres
ident. 1t is our interest to continue to con-
form to the DEGREES of the President
The question arises, what is the legal eff
feet of the ordinance of the Convention de-
claring what laws are in force or corporations
it being admitted by the whole theory of the
government and implicitly in said ordinance
| that during the revolution, corporations with
all other laws ceased to exist? No one will
doubt but that with the consent of the Pres
| ident, the Convention had power to ordain
charters for corporations. Yet the corpora
lions being in the nature of contract be-
tween the State and its citizens, once ceasing
to exist, the corpN1ators can accept of the
charters or not; but until accepted by the
cOrporators, the ordinance is of no effect
The Committee is not informed that the
stockholders of any Bank have accepted the
ordinance of the Convention, and it is not to
be presumed they will do so, as such an act
would be against their interest, as from the
recent message of the Governor we learn that
the Banks are hopelessly insolvent not being
able to pay ten cents in the dollar 1t is a
well settled principle of law in this State,
that corporations expiring, the debts both
due from and to the corporations cease to ex-
1 ist as liabilities. Judge CASTOR says in the
case of Fox o. Horah, 1 Iredell Equity" it
is not to be questioned, we think, that on the
expiration OF the charter, the debts of every
kind due from the Banks were extinguished
as completely as debts due to it." The same
| principle is decided in Jones' Equity, vol.
Malletr cs. Malloy. From the reasons above
set forth, the Committee is of the opinion
that by the effects of the revolution in the
language of the President, dcpriying the
people Of North-C Carolina of all civil govern.
ment" the charters of the Banks expired, and
cannot be renewed except by the consent Of
the corporators, and this Legislature cannot
interfere, as all the questions connected with
the corporations are for judicial and not leg
islative action. 500
Respectfully submitted,
.g' il,9e A. ]. JONES, Chairman.
JOS. II. WILSON,
-'a92 r. Y. McADEN,
~ is8 w. A. CALDWELL.
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