The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1903-06-28


paper currency. ON October goth, 1860
the circulation was Sl,311,S0l; the specie,
$3.50 ia Under the terrible pressure by
the State Treasury in January, 1862, the
maximum circulation was reached. 81 ,673,-
730, the specie being $517 Asa little over
8 to I. When we examine the wild CON
duct of the other banks the contrast is
striking
Again, observe the praiseworthy CON
servatism of the management in times
of peace and in the clash of arms Take
the condition on October 10th, 1860. The
total liabilities. counting dues to Bank
of State, were $1.005,3l3 deposits and
81, 81, 301 circulation. Total $2,316,61
whereas the assets were specie $49O, TIA;
loans $2.796,0S1, and bnls of exchange
/. 32S, 249. North Carolina bonds. dues of
other banks $275.730. In other words $4-
SCOTIA cash and securities to meet So
1854 liabilities to other than stock
holders Add real estate and the assets
reach 81, 944, 797, anu the seucurities were
undoubtedly sound when accepted
At the end of the war the bank had
S657 800 in North Carolina and 81 .068. 032
Confederate securities; total SLIPS, 532
This has an ugly sound but it must be
remembered that this amount was only
two-thirds of the stock; secondly, that
the owners of that stock did the same or
worse in their private business and
thirdly, that State and Confederate cur
rency was all we had. and the bank was
forced to use them or stop business
There still remained $379141 specie and
81, 959,3 1898 loans and discounts. with $780,
103 realty: total $2,418,6 42 to meet 81. :
1874, no circulation and $344 ,S21 deposits;
total $1,549,591. This showing was not
unhopeful, but the unknown quantity
was the solvency of the loans and dis
counts The deposits would have been
much larger, but in the second year of
the war the Confederate and State cur
rency rapidly deprecated, the stoey hold
ers ordered the officers to receive deposits
with the understanding that checks on
them should be paid in Confederate cur
rency.
When l became State Treasurer. in the
last week of 1865. it will be remembered
by all of you who lived in those bad
days that we had no circulating medium
except what was slowly brought in for
cotton, etc, sold Secondly, that bankers
and brokers were realizing from III to
2A per cent. per month on giltedged
paper. g. g., bills drawn on cotton, etc,
with bills of ladIng as collateral Third
that all the banks had. say $500. 900 in
gold, with $3.OOO.0OO credits and IS, 900 900
debts. | concluded that it would be bet
ter for the creditors of the bank and
OF great advantage to the public to sub
scribe this gold to stock of national banks
Gold was at a premium: United States
6 per cents We're at par: deposits would
have been attracted: currency obtained.
and the very large dividends. certain to
be obtained would have been used to
discharge the liabilities OF the State
banks; l am satisfied that the Bank of
North Carolina would soon have made its
stock of value. / prepared bill to carry
out my views, got Governor Worth to
recommend the project. procured the APP
prevail OF Mr.. Mordecai and also of the
Finance Committee of the two houses
The late Chief Justice Smith, as chair
man, was n warm advocate and by his
labors and the labors of others, the meas
pre passed the House of Representatives
1t was defeated in the Senate by the
z.
bank attorneys, and the speeches of
members, the chief of whom 10 my GER
tain knowledge was specializing in bank
bills. Mr.. Moore threatened an injunction
on the ground that this risk in new
venture would be violation of contract.
and this had much weight. as his repu-
tation as a constitutional lawyer was at
its height. I am quite sure that he
honestly believed he was right.
After this defeat Mr.. Mordecai. with
the assent of the directors. continued
actively the plan of compromising with
the bank creditors by paying one fourth
OF their claims in gold. and with fair sue
cess. Mr.. Dewey's salary as cashier was
very much reduced and he was allowed
TO accept similar position in the bank
ing house of Geo w. Swepson The pro-
cess of buying the notes and deposits
was rudely interrupted For convenience
OF picking up the notes of the bank nearly
100000 in gold was deposited in New
York. Mr. r. Y McAden learned of this.
| and, having large batch of notes. at
tached the fund and demanded to be paid
| in full Mr.. Mordeca and Mr.. Moore.
his attorney. complained of his action.
but to no avail. Throwing all the re-
sponsiblity on Mr.. McAden in a publish.
ed address of much ability written by
Mr. Moore, a meeting OF the stockholders
was called and they concluded to go into
| voluntary bankruptcy. Mr. Dewey was
made assignee and Messrs Moore & Cat
| ling attorneys After Mr.. Dewey's death
Mr.. George II. Snow was substituted as
assignee
Colonel Edward Graham Haywood was,
| in 1868, employed by the Board of Edu-
cation to attend to its interests. He con-
ceived the strange notion that the stock,
holders were entitled to be paid pro rata
with the note-holders and depostors out
| OF the assets in bankruptcy Being an
exceedingly laborious man, he prepared
an able argument, two hours long and
delivered it before Chief Justice Chase
| When he finished the Chief remarked, in
words which bring woe to lawyers
heart: Il do not care to hear the other
side" and promptly decided against him
Colonel Shaffer, who was registrar in
bankruptcy, tells me that still more
eminent lawyer offered to prove his
stock as debt due by the bank The