The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1892-09-15
BANKS And BANKING.
ADDRESS OF COL. Vim. 4. 5. BURGWYN,
Delivered Before the Business
Mems Meeting" at Morehead
City, August 11th, 1892.

Complying with your invitation t
make an address on Banks and Bank
ing IN North Carolina, | feel that tn
short time allowed me for preparation
does not permit me to do justice t
the great theme that | am to discuss
| desire, however, to do my part t.
aid your committee in their patriotic
efforts to make this meeting success
as hope its results will rebound te
the welfare of the State. Were | ;
politician, seeking political office,
might we'll question the advisabilty o
expressing my views on SO burning q
question.
When one of the three political
parties in the Nation, in its platform
of principles, openly favors dispensing
with all Banks; another, favors the
substitution of National Banks to a
large extent by State Institutions; and
the third party proposes to let matters
remain as they are, occupy a posi-
lion as speaker, that in no sense can
be an enviable one.
But it is just such times as the
present, described by the Latin poet
when he says Ci01um arAor brae0a
JH6enhnm, that it behoves every citizen
10 take a stand for what he thinks is
right, and regardless of consequences,
give his people the benefit of his views.
A leader of one of the political
parties in this State, in a recent public
manifesto, used this languages: "The
farmers want change of condition
growing out of shrinkage in values in
all kinds Of property; of inability to
sell what they own for money; of
inability to borrow money on any
property they have, and of the general
lack of capital to build works that can
use our timber, iron and other raw
materials, and convert them into
money" Is this SO, and if SO, what is
the remedy?
HISTORICAL REVIEW OF BANKING IN THE
UNITED STATES AND IN NOTRH CARO-
A.
Here follows in the address an his
,orIcal review of Banking in the
United States and in North Carolina,
including an account of the ante Rev
olutlonary Currency and "Bills of
-redit' issued by the Colonies
and by the Continental Congress =;
The Currency Acts of 1717 and
1927, of the General Assembly
IF North Carolina )" "The Bank
of North America, 1884," the
4rst permanently organized Bank
IL the United States. Under the head
ng Banking under the Federal Con
titution,'' was given history of the
United States Banks Of 1891, and
1916, " Removal of the United States
lcposits, by order of the President
Andrew Jackson, Sept. 26, 1885," The
financial Panic of 1897 "The es-
ablishment of the Independent Treas
ry in I841," under Van Buren's ad
nlnistration, and the financial status
If the Nation at the beginning of the
ate war. Valuable and instructive as
S this matter, our space is limited to
he publication of the latter part of
he address beginning with the head
ng "The National Banking Act of
1856 5.'-EDIToR.]
THE NATIONAL BANKING ACT OF 1863.
Says Chief Justice Chase in deliver
ng the opinion of the Court in Veazie
Bank VS.. Fenno, 8 Wallace, 533, de-
;ided Dec. 1869: "At the begin
ling of the rebellion there was no Ma
lonal currency except coin there was
10 general regulation of any other
by National legislation, and no
NATIONAL taxation was imposed in any
orm on the State Bank circulation
IN Dec. 81, 1861, the State Banks
uspended specie payments. Up to
his time the expenses of the war had
'een paid in coin or in the Treasury
.emand notes, issued under Act Of
uly II, 1861, and payable in coin.
GA new policy became necessary in
consequence Of the suspension Of the
,tate Banks, and the condition of
he country, and the Act of Feb. IS,
S62, was passed. This Act author
zed the issue of United States notes
'ayable to bearer, and were converti-
lie into or receivable at par for bonds
'ayable in coin and bearing coin in
crest at a rate not less than five per
ent., and were made lawful money
nd legal tender" They amounted
D 5o,ooo,ooo. These notes are now
allied Greenbacks.
On Feb. IS, 1868, the Act author
ling National Banking associations
as passed. The main difference be- 4;
Neen the National Banking system Of
S63, and the great National Banks OF
791 and 1916 was that The latter had
Ill control of the Government mon
VS. which were deposited with them.
MI financial business pertaining to the
Government was transacted through :
hem. In return, they were expected
. furnish uniform and safe currency
# Bank notes, on which they also OBJ :
lined profit.
The National Banking system of
S63, provides for number of Banks
limited orly by the necessities of bus
ness, each acting independent Of the {
ther, but all bound by the uniform
aw. They may become repositories
f Government money, but only as {
elected by the Secretary of the Treas {
ry, and for these deposits they are {