The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-06-28
Early History of Banking
In City of Wilmington

! be paid at the time OF subscription, ant
one-fourtn in two, four and six months
/ thereafter until the full amount was paid
i IN.
| The Act provided for eleven directors, all
of whom were to be citizens of the State
OF North Carolina of whom at least
seven were required to be residents OF
| Wilmington, or within fifteen miles there
/ of. and were elected yearly by the stock
holders at general meeting to be held al
| Wilmington on the first Monday III Janu-
airy of each year.
The charter of 1904 provided for q
branch ban kto be established at Fayette-
vile. in the discretion of the corporation.
And it was further provided that the
State might become interested IN SAID
bank to the extent of $50 shares OF the
par value of 800 each.
in 1907, an Act was passed providing
that the notes of the bank should be re-
ceived in payment of all public dues at
the public treasury. In 1914, the original
charter was amended providing for an
increase of the capital stock by adding
thereto $3.50 shares, making total capt
tai stock of SITS, 900, and 1000 shares OF
this was reserved for the State OF North
Carolina.
There is a peculiar provision in the
charter. which required that in ''consid-
Grafton of this amended charter granted
to the said bank the State should be en-
titled to 180 shares of the said 1000 shares
reserved for it, without paying anything
therefor, and that the State should re-
ieve its dividends on the 1870 shares just
as if it had paid the regular subscriptions
In. the year 1888, the charter again
amended and the capital stock was in
creased to 5000 shares at the par value
of 500 per share, and many restrictions
were placed upon the bank and many ad-
ditional powers given it under this amend
ed charter Among other things. there
was the following provision. That the
president and directors of the said bank
shall at all times, from and after the
passing of this Act and during the con-
tinuance of the same, be bound and
obliged to make loan or loans 20 the
State of North Carolina, if required and
authorized by law, of any sum or sums
of money, not exceeding in the whole at
any one time ITO part of the actual
stock of said bank. and at rate of in
terest not exceeding s per cent. per year,
to be paid hall yearly"
1t seems that the State of North Caro-
lima in granting powers and privileges to
the bank took good pains to protect it
self and to receive some benefit from
the charter which it was granting.
In 1886 the capital stock was increased
to 81 SOC, 600. and there was served for the
State OF North Carolina 5000 shares of
this
And the Act of 1895 provided that the
said bank shall establish two or more ad-
ditional branches i'm this State. neither of
which shall be less than one hundred
miles distant from the principal bank, and
one of which shall be west of the Yadkin. =
Branch banks were established at
Washington Fayetteville. Greensboro and
other places in North Carolina.
The Bank of Cape Fear was the lead
ing and strongest financial institution of
its kind in the State, and from 1904 up
to the close of the Civil War. did an ex-
tensive business in the State of North
Carolina as well as in other States.
During the war. Mr.. William A.
Wright was President, and Mr.. James
G. Burr, Cashier; Julius Gardner was
Teller. and the bookkeepers were Thomas
IL Hardin and Joseph McLaurin. The
bank rendered valuable assistance to the
State of North Carolina and to its bust
ness interests from 1860 to 1865 but
finally was forced to suspend business
on account of the crash that followed
the Civil War