The state chronicle., 1892-12-18

uCCAoOAO aS CAO OPoAOA VI Viz So'CAA IL
ment in silver. Practically the holder
of the notes of a United States bank
that has failed is not put to this trouble
because the law provides that each
national bank shall receive at par the
notesof any other national bank for
debt due it; so the notes of these de-
funct national banks continue to cir
culate until they are all called in and
destroyed by the government. But
there is no in cerest allo we'd the holder
Of these notes after their protest until
their redemption and destruction by
the government. Now a state bank
currency secured by state or municipal
bonds, guaranteed by the state, re-
deemab,e on demand in gold or silver,
with penalty at the rate Of II or "a
per cent. per annum after protest un-
til redeemed by the state, the state
having first lien on the assets of the
bank as additional security, would
possess every rea sonable security, and
offer an attractive and convenient cir
culating medium-with certain features
more attractive than the national
bank circulation, viz: its redemption
or demand in gold or silver and the
penalty upon the protest. Should one
of these state banks fail the holder of
its notes need give himself no concern.
Until called in by the state he could
hold the note as an investment bearing
II or "a per cent. as the case mi ght
be. Or if he wanted his money he
could take it to Raleigh and have it
redeemed in gold or silver, or he could
take it to any other state bank and
that bank would have to receive it for
any debt due it. Such a note would
each day become more valuable instead
of depreciate OF course, on the failure
of any state bank, the proper officer
would give notice and call in such
notes; but we can imagine the holder
would be in no hurry to surrender
them as they would be appreciating in
his hands at the rate of II or "a per
cent. per annum.
The State bank notes should be
made receivable for all dues, taxes
excise and claims due the state; anc
for all salaries and other obligations
due by the S:ate except interest on itI
public debt.
1t would also seem expedient tina
as we are suffering for want of suffi
cient money in circulation, these State
banks should be required to keep il
circulation say IS or 90 per cent O
their capital, and not be permitted, a
is the case with National banks, t.
exercise the franchise of banking an.
not issue a circulation. The tota
banking capital circulation and depos
its in North Carolina do not to-da,
, amount to what they did before tn
, war by several millions of dol
lars; and do not aggregate sev
en- dollars per capita. Whereas
; the banks in the city Of New Yorl
alone have capital circulation an
. deposits aggregating over one hundre
, dollars per capita for the entire state
and the total capital, circulation an
deposits in the state of New Yor
D amounts to some two hundred an
' fifty dollars per capita.
1 1t would seem we must have % loc.
equal OF any nickel smoke in Raleigh.
|
currency, and in the light of the abov
facts 1t is not asking of the approach
ing legislature very difficult feat,
one which the many able patriot
e men who constitute it, will not be alb
n easily to accomplish, to give US sue
! general banking law, creating Sc
- arate department of the state govern
le ment that will establish our fnanci
le on firm, lasting foundation; that W
j. be a credit to those organizing 1t;
10 source of prosperity to our own pc
pie, and a matter of congratulate
- among our sister staees of the Uni
10 VIM. H. S. BURGwYN.