The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1878-02-20
RllIsbusuugp Rsfarpsr.
WEDNESDAY. .,.. FEB. 10 ssTs
TIM BANK TAX.

THE BANK TAX.
We hase frequently before urged the re-
seiDdiag Of the imposition Of the ten per
cent ma on the issue Of State banks as the
measure above al others pregnant with
good for the South. We ara glad TO have an
endorsement Of our views by the ablest Of
or State prsss, and BY gentlemen through-
on. the State experienced in financial opera
,ions. Aud we are specially pleased to lind
confirmation given 70 the soundness Of our
opinions from quarter ahers interests and
habits might have been expected to create
opposing tendencies. In recent New York
letter in the Raleigh Observer. We see qaot
I'd the remarks Of prominent Official o.
Que of,he leading Raleigh National Banks.
lie Is represented rs expressing hearty
concern iur lhe. restoration Of the old State
banking system. rs one. among other COM
mepdable features. be,tsr suited TO the ha.
bits and practices Of our people than any
other; but above NIL. as having the qualities
81 economy in management BY which aid ~
given 70 the operations az business a rca-
sonable charges lie says tia, money could
be easily loaned BY such State Banks a .
rate Of interest not exceeding six per cent
per anuum ! whereas the Natiopal Bsuks
cannot or viii not agree to accept less
rate than IL pei cent. There are many
reasoss far this. A~ong others. the capt
tai invested in them is largely foreigui con
sequently there is not the slightest lie OF
sympathy between lender and borrower.
Agaio. these banks are restricted BY their
constitution to circulation not so large as
their, eapisal stock. which is fr.rolously
small 10 proportion to the needs Of basi-
ness. fheir ability therefore to enlarge
their powers Of accommodation Is dependent
upon lde2osfs. Dspositos expect 70 draw
inissa upon tbsir money. and this il ada
eds IN additional charge upon the borrow
En- This then. With the ordinary items o.
espsnss issidsrtsl 70 babLipg operations I.
Increases the inability Of the National
Banks. ifitvere their desire or policy to do
-. 70 make loans st less rate than IL per
cent. And he national banks do not look
#E.&@ W..
80 much 70 loans as The principal source Of
tSeir profits as to buying Of exchange, and
such operations as were once the peculiar
province Of commission houses. If they had
the amount Of Currency needed 10 give ease
10 the country by liberal loans. il is not
their policy 10 use il IN that way. The
whole system is not il harmony With the
customs Of our section.
The State bank system bad its dsfsets
and might hare had it.abuses. Experiences
ofthese IN their past history would probably
avoid . recurrence Of them should they be
revived. For thu there j. al urgest dc,
mand. With the resriuding Of The tar
which nos fspressss them, they would
spring again into existence. They would
invite as capital. the hoardipgs and the
earnings Of the thrifty who look for safe
places u investment. They would attract
the capital Of The more prosperous. which
hesitstes 70 60 abroad. which Is distrus,ful
Of manufseturipg ventures, but which will
not put confidence in the national banks.
owned and controlled abroad. and conpli,
csted ia the destiny Of all similar ius,ita.
tions over The country. oil trembling in ac.
cord At one breath Of disaster. al shocked
by the sane calamity which sssails any Que
oftben, even the most remote. The Stat
b.uks. restored TO their legitimate faDetivus,
would issue their Oss currency, discouii
literally . the chief source 81 their profits,
aud . rnee give relief to the people " ii,
Stsie. o. The whole country. sapposins
that their notes will be Iittls below psr;
that will no. impair their capacity for BON,
sSefslsess. and IN The Transmission Of fund,
sbrosd. tie prsnium demanded will Ii
paid ~ors sasily than present bsak accOm
muda,iops are nov had. -
Thisr isf M connection With he pa-sag,
Of the,il,er bill would seem TO our cOinprs,
7. 1T " =
hsasiou 81 that i.heeded to restore prospe.
n;J o tbe soutl. A larger s,reuIslion ',
must hare. aud ~, We will never have
dependent upon tie national banks alone.
-s5ts. &C.. 5.-.zs 5z@s ~
att s THE wAR a*s' f. rrie
As We shts, there is 90 much ia. 10,
course ofssiiOu which few days ,in de-