MINERS’ & FARMUaS’ JOm^NAli.
_PUIrt i Ei> AND MATI'UI>AY, UY I IIO.nAH J. IIOI/rON..*.tllAllLO ri'i; MFX'KI ENBI K; COUN'i Y, NORTHt AUOLIN A.
»l *ru V imui VI M . '" ~ ~ * ■ ■■ — - “7 —— - • ■_ “ r.. r.T ..I. --- ! ■_ ~ ~t J
VOL. IV.
I WILL TKACH VOU TO Ht.>CE THK BOWmjl OF THB EARTH AND BRINU OUT FHOM TliK CAVERNIi OP TIIK MOL.NTAINS, METALS W HH H WII.L OIVE KTHENOTH TO (ItR IIASUS ANO 8U1JKCT ALL NATUREJTO OUR UiF. AND PLIASUKK. HR. JOHNBOW.
JSATITUII.iY, JANUARY 18, 18:11.
NO. 173.
THE
]HincrN^& FarinerH^ Joiiriiiil
- unuU d iiid publiUicd « very S#turd«jf iiiorniii(f
gt Two PolUirt i*r aniiuiii, if i«id iu «idv»n c;
J’lfo Daliart and Fifty Ceni$ 11 not |«id until
iftrr the e*|nr»tlon ol tlirce iiiontliii; TVntf
PUUi$ at the end of llit ye»r. No will
1^. diwoiilioued until oil arrfaragc. arc paid,
uiili'W ht thi' option of Iht t^itoi.
I)V|.;|{'riSEME>'TS w ill b«‘ inm-rtcd at Fifty
(>hM pet (not c »c« ding 20 liiiM,) lor
III,' Ar*t iu»i tlion, and 25 c«-iita for (nivh auc-
Ctfrfine wek—«' lor thrfc woeka, for one
njnire.
A lilirraldiKCouut will be madt- totlKMc
wIm »dvtrti»e by the yiar. 17'On all advi r.
ti, iiivnta ronuiitinicalrd for publication, the
aumbcr of inirrtionn niu*t he note d on thr inai.
»mol llte tniinuwript, or they will be umlinutd
,„nl lorbid, arsd cliarcia accordingly.
• All eonmtuni alioo» to the Editor inuat comc
*im o(ponlapf, or tin y may not he illfndtd to.
RKPORT
F THK ( OMMITThK ON RANKS AM»
TnC (TKKhNCY.
• he |>ayiiifnt ol uii mterenf, varyiu;*, ati the j inuiiity. A sound ciirroiicy ih to lli-iii a j increasing ilie tuxes on iho people by niuk- the eHtabiialiinent of a State Bank, to wit t
casH may b«‘, fniiti 8 to lU (tor cent. UecDtidary consideration, niul ih only kept in^j the prolilstlial otiifrwise would be made that it is tNcoNsxiTL’TiONAt to establish
0«vin^ to this stale of things, at no for- in view so fur nA it is tlieir interest to do | by corporations, surely pood policy requires
iiH.‘r period in our history has the condition j so. We have seen instances in our own j that wo should do so. We confidently be-
of North Carolina presented so depresM-d State, w here Bunk corjiorations have, by | lieve that this can Ix? done,
an aspect. We know that there are other | their nieusuri-!>, (lepreciatf'd tiieirown notes, j Sup|M>se the Stale shall borrow two mil-
cHus«-s; but wo believe this (o be one of | and then privately one tnlo market with ; lions of di-llars, at live |>er cent.; the annu-
the main ones. Besides the evils already l specie funds, and bought them up at a al inteie^it on this will bo 100,000 dollars.
alluded to, we may mention, as another
c®nse|uence, the tide of emigrution which
is DOW setting to the South and West from
our tmrders. Many of our most int‘lli|^ent,
wealthy and enterprising citizeiiM have al
ready jfone, or are prepnrin}; to jo; all who
,^o, take from us weiiltli, capital and enter
prise, and, what is worse, prefture the way
for others to follow ; thus unsettling our
|K>(iulalion, and turning their minds from
improvements at home, to the advantajfes
of the new Stales. 'I'he coiniinttee believe
that a restoration of a sound circulating
medium, cummensurute with the wants of
the communitv, will contnhule much to
wards reviving trade, awakening the enter-
pnze of our citizens, and us a necessary
The Joint S«*lect CoHimittee on Curren-
and Bdiiks, hnve had the subject under
i bidem tiou, aVd iti.i-ou i:
Thill, in the o|Hiiion of the Conmiitlee, c..i.sequence, lend on tb> public iiiiiid to
f l>rc-*ent cocd.lKHi t>l'the currency of the
ale loudly calls for tl»»« pnmipt action of
I.i^iilHture. It mny almost be said
I the Stale, al this tiiite, is deatilute of
cirruUiing loediuin : it bss scarcely anv
Its own, noH of that which our people
p coni|>el|i'd to employ, there is a detki-
■;) in qiianlity and ijualily.
't his »ulH ol' ihiii;:* IS altocelhcr owinjt
tit« circumstance ol’the e«i4tnig Hanks
iw wiiMlini; up their Imoiiifsa, colleiiin^t
■ \r d btti, and wilhflmwin^ llieir notes
,ni ciri ul:iliofl. 1 tie slock hi'Idt rs in
ii.siituitoiia coiistder this necessary,
»t\rr D*‘cenitief n« *l, they are re-
luted bj law (Voui d*)ing any new busi-
N »ihinj e»er more powerfully (Jisliirtis
lxMiM IS of a cotnmunily, and uf](H!ls
prosperity, lhiu a rapid anti cuiilmueii
.:iirti(»n of Ifie g neral currency. It
iii^s miburraMsments on the p‘Oj»!e, des-
ji ciKiti kjiice in Tedil, clieekB trade,
iiitiiriuhly depn*'ai s the prices of lalK>r
i projierfy. W • tiave seen, if, al anj
ito, in ottHir Stales, a reduction of tO or
I |iei cent, takes place id ibe aiiioiinl of
- furn-ijoj, it IS followed bj bHnkruplCH n
l Ji'trc>«. Can il be a inattei of woiuhM,
n, that tlirre should tie a stagnation ol
'iiieiis in North ('aroluM, that imiuitrv
ameliorations in our moral and phy^sicul
condition. Undor these views of the subject,
unite in the opinion, iIihI this lj«‘gislu
Inrce discount. I The Bank, on this capital of two millions
On the «ither hand, tlie jrrimary object of; with safity, can do business to the amount
a Stale Bank is to irive a sound currency lo j of two to one ; and thus make an interest
the people, anti to make profits is only the jof six per cent, on four millions of dollars—
jec«n^/«rf/Consideration. equal to two hundred and forty thousand
If the State ii]Ntitutir>n isives a sound cur-I dollars. Of this sum, say one hundred
rency to the community, it pains a great ob- | thousand jioes lo pay the interest of the loan;
ject, though il may fail in nmliing large pro- i forty thousand goes to pay for the admmis-
lits; hut if it can do l«>th, then the measure 'tiution of the Bank—leaving one hundred
stands recommended with double force,— tlioiis;ind ns profit; x»hich is double the a-
We Inlieve it will do ln.th ; and, therefore, ; mount of Innd and poll taxes annually paid
we recommend a State Bank in the hkcono to the State. If the Bank should find it safe
place as a nieasuie of Finance. I lo issue two nml a half fur one, tlu n the pro-
All banking is a species of taxation im- (is would Is* still greater, innkitig all just
posed on the community in which it is car- ! allowances foi* bad debts. 'I hat this can be
ried on, and whenever I'he l.cgislalure gives : done, wo are warranted in telieving irom
lo i(idi\iduals the privilege of banking, it the n (-ults of I he Banks in this State, and
clothes them with the power of taxing. It ; from Iho experience ol several of our sister
IS true, that, in one sense, !lie lax is volun- Slates.
tarily paio by those who deal with the Banks;
but still it IS a lax iiiifHised by virtue of law
lure ought not to adjourn without the es- j „„ th«- priKluctive industry o’f the countrv,
lablwliiiH-iit of a Bunk or Banks, of Bome |n favor of unproiiuctive c'apilal
character or odier.
Having arrived at this conclusion, the
next {Miints if inquiry t .at present them-
st'lves for c«i|iHideratn>n, are,
1st. What amount 4' l>anking capital is
nee«N>ary to supply the want* of the [>co-
plo of .North Can>lina?
2nit. W hat shall be the churactcr of the
Bunk ur banks lo f>e established f
South-Carolina has had a Bank of the
State in operation since tiie year ISliJ; and
though, at fir!«l, this institutinn was defec
tive in sitne of its details, the Slale soon
Stjpm.se II reiiuiies a banking capital of corrected them, and the Bank has gone on
three millions of dollars to sui.plv the wants pro.-peiously ever since. I rom the
of North.Carolina, an.l on the.^e three mil -''‘Port •' '1“’ i^r^sioent of the Bank to
hons then- be made Bank issues to the ex- ;»he Legislature ol that State, now in ses
lenl of three for one, as is the case w ith ..ur I “ appears that during the past fi^al
I.K^al banks, then it is clear that ihe ou ners I «'»i‘l'‘ a pnht of more than
of the three millions,/.w'^a«.vo/r/lcircA«r hundred and hi I y-one thousand dollars
t,T, instead of SIX iH^r c nt. on ihtee mil- capital of one mil ion one hundred
, hons, are enabl. 1 lo exact six jKjr cent, on fif'.' -ix thousand dollars; and so well
Firot, as loihe ariK.unt of capital that j nme millions; as individuals, they 'l'»' nistitution been managed, thal
may be n« r«M«ry. '1 he am.nint of bank- ■ could ..nh . barge six per c^iit, .m Ihe /A/-e. 'lK.-en loft, In bad d^bt^ smcc
ing capital needed for tbe Slate depends on millions—c.jual to one humirid and eighty
Ihe amount .>f circulating fii.dium that. thousand dollars; but,acoi[K)ration, they
om\ be n-quisile to conduct the Ixisiness I can charge six |>er n nt. .in «/'ic nii!Iions
the present incuii.beni has been in .iffice,—
Governor llayne, in his message to the I,o-
"I'-latuie, uses this language res|»e. ting the
oiav oe requisite lO con.iuci ino uu!tmrsB> 11 jii c lurie si\ iwr .. in. .‘ii ii ■« uii.iixim ,, , ,, n i T i i i i’ ,u
uiid facilitate the exchanges of Ihe com- equal to fi\e Imn Ired an.l fi.rly llmusand 1‘ nc er I le a • e an ai -
munitv ; for lo preserve a sound c.»iidili*ni, d.dlars; making a difP r^-nc*'of three huii-| ‘i H n|'P'‘>r®
the one mu^l bear a cerUin pr..porlion to dr.d an.i .ixtv il.ou^and .loMnrs extra inter- means will be runple to provide lor the
the lit fir r.
in each var: .>r, in olher words, the extinclion of the iinblic d. bl, as it
' iiall become due, without the imposition of
NUialever may be Ihe character of the ncl i f incorporation giv. s thp.n the powi r :
■ * - anv additional taxes.
Itaiik l«» l)e establiHhed, it* sjiecie should to cha^^e tlie commu:nly six p‘r ccnt, on
be Micli MH lo eiiMf>lu II at all times prompt- six millions of d»»llar» winch they do not > Aliilxima, i.exl ^j’
ly lo r«*d**rm wilfi 8is-Tie its ii.Ht-s, when- p«ssi*ss; oi it enables Ihfiii to cxact eigh- I '** I’" ‘‘ ' ^ ®
such a Ba>ik.
The clause of the Federal Consfifutioni
which, it is alleged, prohibits the eitablish*
ment of a Bank of the State, is in these
words t
“ No Staff*,” shall “ emit bills of credit.*^
From this Inngiiage it is very clear ihat no
Slate can “emit bills of credit.” But what
are “ bills of credit,” in the sensf; used by
the Constitution? Let Judge Marsfiall an
swer* In the decision of the Supreme Court
on the question of the Missouri certificate!,
he uses this language : “ At a very early
period of our colonial history, the attempt
to supply the want of the precious metala
by a ptiper medium, was made to a consid*
erable extent, and the bills tmUied for this
|>urpose were denominated bills of credit.
During the war of our revolution, we wer»
driven to this exjtedient, and necessity com*
{>elled us to use it to a fearful extent-”
Judge Sfory, in his new work on tlieCoD’
stitulion, says of “ bills of credit,” “the
phrase (as we have seen) was well known,
and generally used to indicate the p»(ier
currency issued by the States during the
colonial dependence. During Ihe war of
the revolution, the papier currency issued
b) Congress was constantly denoftiiuated
in the act of that body hills of t-rcdit, and
the like ap(>ellation was applied to similar
currency issued by the States. 'I'he phraso
had Ihiii. acquired a determinate and a/T.
jtropi'iatc name.”
.Mr. Muaixdti, in his letter toC. J. In'*
gersol, in 1S32, wriiten on this subject,
says: “ The evil which produced the pro
hibitory clause in the Constitution of tb:>
Slates making hills of credit, and in some
instances appiaised pro|ierly, a ‘ legal ten*
der.’ If the notes of Stale Banks, there
fore, whether chartered or unchartered, be
Hot made a legal tender, they do not lall
within Ihe prohibitory clause.” This ho
says, IS the true meaning of the 44th No.
of the Federalist.
It is verj clrar, from this, what is meant
by ‘ bills of credit.’ The Stales, as well
as the old Congress, had been in the prac
tice of issuing large amounts of paper ino-
tiey, culled ‘ bills of credit.’ These bills
of credit were made redeemable at some
ver .tf^i.-d for ment. W .thout this, ieen |H.-r cent, on their a. tual capital, VV e |'r.ci, the p..!icy is engrafie.l m th.' provis-
ra,xM bi.ls maj sa> tw.Mity-» ru‘|K'rc.Mif., since pnyin-‘ffuture clay, and no funds were_ set apart
ifie turreiicy cannot be Bouiid. i ai»-r oi.is maj sa> n«-|nr him., "nn. iii^; i . i- ’
..ave no lulriiiMC value of ibeir own, and tfie u,;er. st in'a.Ivance, makes it n^'arly e-I"• Son h Carolina, prove the | redemption even at
it the I ''I*"'’day, 'I'he people were conip«-
njld Ije pjiralized, and tfio energies .»l oui I ^old or bilv»T, whicli eve
ill- deprenerd, when we coi>si>er whul n « ■>«, have an intrinsic «
•ire «»nly valual>|e as the ,reptejenttiives .>1 qnal to m \cn per cent. It is true that the j
»hicfi evi'iv wliere and al- corporations do not rcal>z'all this as pro-' • now in
intrinsic value. I'he first (it. f.r a pa,I ..f it :.o^s to pny for manac.- .ten. us worked
Ton-, of a good p.,K-r cur- „„-nt; Ix/t ih.s d- s lu.t make it le^s a tax J «'•
. inUioe. iis convertibilit) m- on that account paid by tlie pr(«liirtive class
. how our fieoplo bavo sustained them-llo gold and siUer, ai«J this is one ..I the of the comnuinitv to ihe priviN-ed * ^vv. ^
U-. a. well as they have, under this j tnam checks lo over-u.sues by the tS.uiks, | Smre. then.--« species o| tnxa.ion, I,**'
III eftCiiimtihtf lh« RUM»Uht ot and iIh' iK*\vi*r ol tiixm;; U*inp HlJiilmtc » „ . ,
••at re!uctK>n our curreiirv tian undergoing ; n quisite, iftert f
IImg Iho p«!«t few \earn? Tbe wonder [ rei»cy is its iiistanUiiH
that future
day, 'I'he people were conip« lled to take
them,for they were made a ‘legal tendi rj*
ami the h.dders of them had no remedy,
fi>r they could m’ither sue a Stale nor Con-
_ . . gress ; ’so that Ihe evil became very great,
l!ank, by incrensing its capital three and a jj avoid the recurrence of this
evil that the prohibitory clause was inserted
in the ('onstitntion. Hence, when the
Legislature of Missouri altempled to supply
that Stale w ith a currcncy by issuing rcr-
tifcatt s to circulate as a medium, tlie Su
preme Court could not do otherwise than
pronounce them unconstitutional 'I'his
however, is a very difTereiit thing front
what ue prop.>se lo do. W e propose la
rieate a corporation, to invest it with spc-
rati'Mis the exclusive pt.wrr of Iwink- prudetit m»i.--.--meiii of its concerns (ihe cific avaliable funds; authorising it, in its
Bank) will, m a lew years, di!pense w ilh Qor|xtrate name and capacity, to issue notes
Iher.” I to a limited amount, on the credit of its
X[>eriment of. f'unds; make these notes (not a legal tender)
Stale and convertible, at the pleasure of the holder,
re, limt ' into gold or silver; and make the corpo-
lo the ration, like individuals, liable for all its
all the debts and responsibilities,
in the If any additional authority was necessary
\* re ont'ralioii
gricultural,
unpnralh lcd pr* iw*iie then exfienence.l i
known that an agricultural |Mipulation re
!l is well known
iriu,liout Ihe
. I other Slntes, i»o^-M.ing a much less f>opula- , onl\ one pret. n.
The rt'duclion wilh us has c»n
No returns of the present year have b.'en
'ffi\ed. .if later dates than June and Jiilj,
r»iii Ihe^, however, it app.*ar« that the
fiction is still going on, and, as Ihe Bunks
lid lip, inusl continue lo goon, i’lofnibly
I tills time, the whole ainouni of n.>les in
imiliitioii fally shorl of one million of dol
; whiU ll'.e debt due lo these Banks,
I'lif, m coniiidrrabiy more than two mil- j
I'lis, It must t»e recollected, t«Mi, ihul the ,
inch of the |.oiled Slates Bank in this
coni.ti-aiti> d by circuinslances, has
■asd lomiikenny further discounts ; while
•' 5's * on collfctmg its debts Hgainsi oiir
ilia-ns to tlio ninoiinl «)f nearly an.ilher
ment of a Bank, the limds “/..Vular ca.e ; and, should it be th.u^ht State Bank, wi'ih a capital of five mil-! mark of dissent,
b»‘ exclu-ivelv owned b>, and tin r .,o|„.v t,, establish .me or more Banks ii„„s „f joHars, the money to be obtained Inion. If they
J.O I., the Slate, and to In- managed b> a estat
rorpon.l...n created lor ihn l>»^P"r;;* " , ,n.,Uo n fair acknow ledc.-ment to the State , ' yfi,,^g:nppi, during the p.ist year, pul in- have admitted h
oiiwl'rs and liabilities. >* e lu.m ' _ ... i. ...i ,,, • .• .k,. r niiae had been
of Alabama contains a
the Legislature to tbe es*
State Bank, with branches,
ovcrnmcnt, with this clause
face, without a single
mark admitted Alithanut into the
believod that a Stale had
establish such Bank, would they
her into the Union until that
s,^;-ifi- jv.wers and liabilities. We de.-m I b> a'l'i’annuartax or i o[,|l7oh.ra^'jankT.f''u^ opi- clause had been expunged ?
It our duty I.. pr. s.-nt our reasons in lavor i | borrowed in the norlhein But, say Ihe opponents of this measure,
..f thi. measun-, and bricfl> lo notice tbe . ,„,,.,sl„ture shou
bj.TtlOIlH lM.lt>
'I’he first reason we advance in favor of
''Hion of d.dlars, U bat amoiin'l of notes | this Bank, is, that, m ..ur opinion, il is the
" may have m circulation in North Carolina. I.. SI means we can adopt lo restore a souiul
' linve no means of aM ertaming. Ihongh ! circulating medium to I le •-la e. p
I-hrved that Ihe mn..unt IS considerably :m.l. s of an in.litntion owned by ihe State
Ihsn It.* d. bt. miiPinm h as the n.^les of will Im receive.l with more confi. . n. e ban
'!»• I n.t. d .Slates Itank have alwavs rather ! th.*e ..f private crpoialions. In a UanU
-f*n.!urtcd the exchnngeH with Ilie Norlli , owned b> imhvnluals'he notes ..l.lain cur-
•Itiii composed a part .»f the circulalmg ' rency ab>ne from the r-uppose su ici» nc
""■duim of the State, What riiak. s this ..f the capital, un.ler g.H-d nruiaaement. u
luld act on Ihe
policy of ch»rferini.'one or twocoriHirnlions,
with’liimted capitals, will it not be well in
the Stale to reiain the most of the |>ower in
its own hands, and lo.-xercise it for the Ik--
nefil of the whole ! So that if the comniii
nity pay ihew> treble exactions in one shu|H-,
they will rcceive them Iwck in another.
icities: the stock was sold at a premium of the creationofa corporation, in this instance,
i mi |)er cent. In addition to these exam-, is merely an invasion, and we cannot do in-
: pics, the committee might refer lo facts to directly what we are forbidden to do direct-
i show lhat other Stales have now umier con- ly. Thai a Slate can no more “emit bifis
I sideration the [K.licy of adopting this sys- of credit” indirectly, than she can directly,
; tem ; and lhat. w herever it has b«‘en ndop-' is very clear ; but we deny that the tiolea
' ted. mid conducted on true Banking princi- j of the Bank of the State will lie bills of crc-
ples, the results have always more than re-! dit. The bills of credit which occasioned
alizi'd Ihe expeclulions of its a.lv.H-ates.— the prohibitory clause In the Constitution,
Huie ibings mIiII worse, is, that neither
*'t tlie Hanks in the State will receive, in
iwyment «)f their defits, the notes of Vir
redeem them ; but. in a Bank owned by
tbe State, m a.I.lition I., this, the chiiracier
of the Stale will ensur.' public confidence.
We see, from the re|x>rt of the Public i aliz' d the expeclul
B'niii, South Carolina, or (Jeorgia, which land give und.nbte.lcre.lii
>"'W e.mstitnle the largest portion of our In.lividnal .-oriM.rations, in^ le
- ■ I .... . n,„|;
ci?rrl^ne!w's^^^^^^^^^^ Ikmks were not established «.n s..Iid capitals, - not i^ionev, but only the r jie«. ntative of
ver[ evKlent ilnit we must either increase- i nor conducted on legilimato banking prin- money. I be opixments.d this niensure ad.
;^e taxes.^r we must a.lo,.l some other s, s- i eiples. Based as they were on wild laws, mil the power of the Legislaluie lo iticor.
I.s.k alone ly Iheir ' t. in «.f finance. I., enlarge the r.-vemies— | an.l on
*^inulating medium. The cons’.pi.-nce i*, | ment ol Iheir “ "J’ ^ iiy -videnl we must have a Bank , tained good credit. 'I hr
tlmt.lelitors to tlie Banks haveoO.’ntimes to I own inter.sl. they g.> ^ .„no|v a currenrv. Upurious Banks has given
piy n prennnin of 2 1.1 4 |«*r cent, lo obtain ! Ihe »“‘l« p»i |>ose .»l making . I j 'if i),,. State can supply a better cur-i jiidi. es w hich exist agaiuf
uni) .liwriplioiis of niones as will be re-i lher.-bir‘, whut.^ver ni."a«ure is .^h J ^ „„j„l il,csame tune, | Tfie I’.imniittee will no
I'he opi>onents «if this mensure ad-
,wer of the Legislaluie lo incor.
empty pimlgcs, Iheir notes never ob- perate Banks, to be owned by individuals,
(rood credit. 'I he failure of these with the privilege to issue notes. But i»
IM Banks has iiiven use to all the pre- . the notes of the Bank of the Slate tje billf
'■'•'''’din llieBMnks; which, added lolhe'tomc pli-.inl.is obj.« I. lh.> Un.lhv the same acl
f'gular r.ank interest, subjects the debtor lo i adopt, regardless of its cflec s on i
gaiust State Banks. i of credit, will m-t Ihe m.les .^f indivi. ual
nis. anu ai me same .iinr, ; ..... - iH now pr.s-.-e.! brielly Banks the same ’ If the
;l, avoid the necesbity of tonoticcthepiincipalobj. i lioniirs;.-dagain-?t Jv> unronsfitutiot>n1. ,.ow nan the t.ot^sof tht