The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-11-10

the amount Of their shares, and as much
more, it is not so in reality. For, in tie
first place. special exemption is made
in the charter in favor of the large State
Banks. whose capital was five millions or
more, as an inducement to them to be
come National Banks. They are ex-
pressly admitted to come in, with their
stockholders bound ouly for tie value Of
their shares.
In the econd place, if a man wished
to take shares in a National cank, no
questions were asked him as to how
much he was worth o7er and above the
value of the shares Aud if share
holder becomes reduced in circumstances
so that the shares are all he is worth, he
is not REQUIRED to surrender them t some
one who has property equal to the dou-
BILE value of the shares. Neither is the
buyer of shares in bank, after its or
ganization, that may be sold for any
reason, required TO show that he is worth
double the amount of the stock he buys.
At the same me, there is clause in
the charter which relieves the rich stock
holders from responsibility for the de
fault, or deficiency, of these poor asso-
cIateS 1t Is IN THESE WorOs:
''The shareholders of each association
formed under the provisions of this
act, and of each existing bank or bank
ing association that may accept the pro
visions of this Act, shall be held indi-
vidually responsible, equally and ratably,
and not one for another, for all contracts,
debts, aud engagements of such associa
ton to the extent of the amount of their
stock therein at the par value thereof, in
addition to the amount invested in such
shares
individuals and firms of individuals
are responsible for the whole amount Of
their Indebtedness, and each for all, and
all for each.
These monopoly privileges are viola
tive of the Constitution, of the Declare
ton of Independence, and of the whole
spirit of American Institutions. They
violate the section of article ". which
declares that ''the citizens of each State
shall be entitled to all privileges and
immunities of citizens in the several
States" The meaning plainly is, that
all citizens of each State shall erj)y all
privileges, and not that only those who
are able to pay for them shall epjoy
them
These monopolies are in violation of
the clause of the frst article of the Con-
stitution, which declares that ''No title
of nobility shall be granted by the United
States " The mere term mobility" is an
empty word, taken literally, but it carries
with it the grant of exclusive privileges,
and that is what the National Banking
Act does.
The government and the holders of the
national bank notes are in no danger of
losing by the failure of the bank The
notes are secured by the deposits with
the U1ite0 States Treasurer OF greater
value of United States bonds But the
depositovs are not protected in this way,
except to the extent of the capital stock
and the delusive promise of double re
sponsibility2 The Comptroller's report
shows that down to the last fiscal year
there had been no less than 267 national
bank failures, involving immense losses
to depositors. An investigation iNsigns
the causes of failure. They are IS nu
merous as the letters of the alphabet,
and are destinated alphabetically
Under the heads A, B, and
D, the cause of failure is sta ed to be
defalcation of officers; in one case fraud
ulent management. E represents de-
probation of securities. T, q, Il, |, j,
K and L represent excessive loans to off
GERS, with other irregularities. M rep
resents failure of large debtors. N, O,
P, Q, r, s, T fraudulent management.
U, V and w represent injadicious. X
represents investments in real estate and
mort cages. Y repre- ents general strin
gency of the money market, shrinkage
of values, &c. z states that the bank
was wrecked by the cashier. II Is lucky
that there are no more letters III the al
phabet.
notice that the legal expen-es of the
settlement amounted TO 81, 081, 1911; that
the receivers salary and other expenses
were $3,76S, 536; that the balance in
hand OF the Comptroller, or receiver,
was 81 723 563; that the amount re-
turned to shareholders in cash was 81,
or, 344; that the amount assessed upon
shareholders was $24 ,051 $780, and that
the amount of claims proved was $S8,
064 636; and this is were the depositors
came in, | suppose.
DANIEL r. GooDLoE