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


| were only $4,000.
In 1888 in order that other institutions
should take the place Of those banks, tne
charters of which were to expire in 1885
and 1885, the General Assembly rechart-
| cred the Bank Of Cape Fear, but replaced
| the other two banks with new institutions.
| The new charter of the Bank OF Cape
Fear extended to 1859, with capital stool
| OF 100000 and with few changes in the
general arrangement In place of the State
| Bank of North Carolina, there was
lchartered in 1893 the Bank of the State
| of North Carolina with capital stock Of
$1,000, 600, $500 900 to be subscribed by
1.-THE State and 5000 600 by individuals.
| Its headquarters were at Raleigh, ard
| branches could be established at points
| designated by the directors. Besides
several agencies, branches were estab-
llshed at Fayetteville Elizabeth City,
Wilmington, New Bern and Tarboro. ara
| later at Charlotte and Milton. The agen-
!, oles only made discounts, and purchased
| bills Of exchange with money furnished
/ from the principal bank. The branches,
| however, could issue paper currency pay
| able at their respective offices. The gen
| eral features Of this bank were the same
as those OF the old State bank. though
/ there We're some important differences.
/ The new bank could not issue notes fol
smaller denominations than three dollars.
| nor could its circulation exceed twice
| its capital stock. and the refusal to
redeem made the paper interest
| bearing at the rate OF II per cent. per
annum from time of refusal.
TO take the place of the Bank Of New
| Bern, there was chartered in 1893 the
| Merchants Bank OF the Town Of New
Fern, to continue until January l. 1859
| Its capital stock was $250000 payable one
| half in gold or silver, and one-half in
bank notes or State paper or other kinds
| OF money, the bank to commence bust
ness when $4,000 had been paid in. No
notes under SO could be issued. the cir
eulation could not exceed twice It's capi.
tai stock, and the refusal to redeem made
| the note bear interest at the rate of 6
per cent. per annum from date Of refusal.
The same Legislature granted a charter
to the Albemarle Bank. and with practl-
cally the same arrangement as the Mer-
chants Bank Of New Bern No further
mention is made in the legislative docu-
ments concerning it. and not complying
with the terms OF its charter. did not
The period Of 1893 to 1886 was favor
able TO the bankers. and the generai
condition of the state was good. There
were three State banks in operation be-
sides the United States depositary at
| Fayetteville. At this time the Bank OF
| State commenced its memorable career
perhaps the most interesting and i'm
portant OF all the State institutions. For
| twenty-five years it was the head Of the
| financial system, and was probably the
most potent factor in advancing the re-
| sources of North Carolina during that
period. Yet, it was TO encounter several
| panics, crises, and mutations, from which
many older and larger banks Throughout
/ the country did not recover Where the
books were opened for subscriptions, the
| individual stock answered promptly but
4 with the States the bank was not so for
tunate. BY 1885 the State which had
| subscribed $500 900 stock had only .Aaid
! in $4,000, Of which 100000 belohgea to
the literary fund The state Treasurer
had only taken $4,000, leaving $403. 400
| yet unpaid which it seemed the State
| Treasurer was unable to meet The
banking facilities were curtailed and sew
erai branches were seriously affected TO
| overcome this trouble, the Legislature
/ of 1885 created a debt of 100000 by
issuing 400 1000 per cent. bonds ma
turing in 1860 and secured by all the
/ states stock in the bank. In this way
/ their full stock of 81, 100000 was paid IN
| BIZ the end OF the year 1886, by which tlmt
all the banks were in successful operation
and the stock Of the Bank of the State
sold at premium The combined capl-
/ sal Of all the banks. however. was only
| 2 425 GOO. or less than in 1915. The com
| 1ined caDital Of the Virginia banks at this
/ time was about $12.000,0 600 OF the capi-
| eal in North Carolina $4,000 was in
The principal bank OF the Bank OF the
| state at Raleigh and the remainder
| divided among the branches of this and
| The Bank of Cape Fear and Merchants
Bank
| Such was the condition of affairs Just
1rior to the panic Of 1897. In 1885 the
,nited states branch at Fayetteville was
| discontinued President Jackson had
| .ust previous to this time ordered the
| government deposits TO be placed in the
! different State banks instead OF the Bank
| 81 the United States North Carolina re-
eeived her share of the revenue. The
3anls throughout the country seized the
opportunity to issue a large amount Of
arer currency on these funds. The
country was flooded with new paper.
| values nuctuatcd and reaction followed
The banks III North Carolina joined the
aeneTal movement and suffered likewise
| The influx of paper currency from the
] wild cat" banks Of the South and West
| odded to the trouble Paoer was thrown
hack on the banks for redemption credit
suffered and fell prices rose. and large
number Of the banks throughout the
country were forced to suspend In Nav.
1851 the Bank Of the State Of North
Carolina suspended specie payment. and
the others followed the example. 1t can
lee said to the credit of the State, that
more prudence was shown GOODNESS and
good sense displayed and less speculation
INDUCED in t. an any state in the Union.
These years were marked by the absence
Of extravaganza among its citizens pru-
dence in trading and while they suffered
at the hands of the banks OF other States
the action Of the people aided IN restoring
confidence to a great degree.
In August, 1897 The Bank OF shc State
Of North Carolina resumed payment and
continued redeeming its paper until oc-