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EIG 4- AND North-Carolina State Ouri are the plant of faitdelightful Peace, Uawirp'd by party rage, to live like Brother!. No. 539 Vjl. XI. THURSDAY, JANUARY 13, 1310. 1 .AiL Gazette. Central assrmblp. 0 KB ATE TVi'l rc!. r.c to the Banks. Cop:'" iU! l 'm i at X i. HOL's- OF COM: 'NS, TuesJjt, Dec. 19 jr f.s proposed an amend ,.M. to the bill which had f T its ohj ft irc. of the proposed tax when - i i . I.. I,,!.. tli Pnllr 'IV.. i j."v, by the Presi d-nt or Cash-cr, in "'cii of sutTcring the money to go , (r ,ah he hands of the Sheriff, l k' ( f , r :.xcs md empowering be Tna- i cr, no ca-e of failioc, to ciiCotce pav-'--thv j summary process wnich , i;-ert! to. ( M'. IU'Rtox, a knowledged he d d n 'K--.n iv.uch about B inks ; hut it io mm that the 'as or po-c . V'.i.c '.' ! tht B.-nks wou'd f l u .- t . :;v. j-. i appeared fr .m ill" debate . . n j- t'kfi pice oi this subject. . , i;,- LA'rvu Bai'k sh i ; s .4 .liy: o: ivtuT cent. ..ml hiCpe I'ear v vi1: '.t. of cjrse trie pin;.oo . - tVd in the p op.1f.10n as 1j t. . ... 1 : ' .VJ two ! I'iKi ill !'- 1 cat 1 , V ! 1 c a ;jx f nnr c gmh of i;s rlri if.fi f.i . vb -ii t idy a ,ax 'd r , Cel. h. It. O'tkr l- 10 kc to-.x r .uc i-j 'y, he pr.pj'ti: ther 1 re j jX 'U tl d v d. K t ar.h H 1 .k crM.'h per renl. whidi would p'o t" ;:c r.i t!v h sime vim tliut w u!d . p- j ;ucil by one per cent. 0:1 the y'.k. , : Mr. Okku- wshrd to do equal .nd ex-1-. j !. u e u b.tb II inks as far as it n:-. Hi i"")e He bad th uiht of t ..- ta l.ixhiK thern, prop ed by ft ;-cr.:!tnui) from Mecklcah tr hii: h: 1 cr l it a.tctidcd w ilh tlitbc u!. its . h wrre in-; ?r irtouutable, and i- !i ' 1 r.v. b;U- t tux as it s ood w u!d b ' u'V ; 1 d as nn'u ne sut)p'ed, H. h i'cil the amend nent wouUl not t Mr. V. R. Kts'c was in favor of tlic a-runt u-n pr i ncv1 by the uentlenun j i: jti M i.bur as oo.-r rai -u dlv ; j V i i '.i.r.Li "O ti h Ila.ik. lirtli-T tf. ll C:.': U n s r r 1 11. M . K. went io- ij ca!cu;u:r-ns spirlar to those in it'.e . m m 1 c:nan 1 :n .M. Kiennur t ; : a i..x ' 1 lie IJ itik S ok : u;. (o 1 nd unju-t. M . '. J j.: h i cVw , ruth r to have the t tx nvi-iui ii-c: -t tlivi.lti d. Is ih.o ! ' i.-cd bv a year the t sx -. ti -n ih S t', whereas 10 per I : f '1 S-' () jh of it. u -; 1 -.f tl ttu, he vuu)(t siiCif'Si a - ,' i-r ani !i Imtnt whi b he tlrmib' '. A: to he rattle to the hil!. h w-ml-i w-vc t!iao umIcs to tax the Sto k ( 'U i S;.te holi!s r. th sr Hnk-, j ; f f 1 e u iJu Ik the trou')! rj u,v'm , ii rt.Tv n. wi h w any advwa rt 1- i .: -r. i.i p .utie to 'ax lb- shjr.s. lu th L .svcivity f.f this S'a'e in J '- tn. s-. In-titir.io.il. as it would i ... i " :e n:i-: in the l.cg'sla'ure, " ' g lUt. catli rrossed st tte of the ' la it va'u t'd- Seat of Learning. ! c i: s io.e reh'-f, f other thau lake t i.'ie iro.n i. He h ir.L ihf;-- t - V . V , t t :h,e shares belonging to ih- ' " j d t,,o L liUtrsii v, wouiil be ex- i:n t.; op ::a'.ion of the ).o ;ix l)r wish d he could at;ree t : -o ivni in from Sampson ; -": .-( J i, him. that the Direc ' . '.iv T. k-. f he tax i rc litl on v nCs rT.iht rot nuke as I rgt ' ' a inry tl a present. I h y 0ire tnc profits in ome other t u'd tveats he tho lght the tax - v . waul I be tiKt certain, 43 : Se cv.eicd v -' !; :van would be in favor - v.,.f!.-i is the most equitable, u ii:-- i, ro.ild not be evaded ; 1 t.ar-U thr o". j-.- ;. of tiie Legisla - ' 1 ' - t1 fc-ttd a'togetner if the ; " - 5 t ,, I. 1 1 j 1 4 :i as negatived, without a V, zz sai l, it oppeared to hir " - 1 ' anaeiiduu lit was ntcessa- - ! sec'ion. t)n rclcience to 'rr o th-e V ibc lrcasurev, it ,M ' ' ' la: Ur suu s that thr mo- lr ; ' o'i'V, wuh the irlm..r, v' v, ' tf.i lie more than s:i Tkiem t , I..- t. v - r.f lk.. ( 1 , - Ill . VF USUI ' p: -ooses that this tax k so ill be applied to 1 f th- ia;-r Currency ; --cUan of the bill directs .the Treasurer to appropriate the inte res' ari ing f om our Sock in the funds of i he United S'a'es to the yime obj.ct Th Trea-tpy, he pt esu oe'l, would then be refill ed inn low to me t thede- niji'ds w I i . h wv.ul I b mad'? u.on if in 111 the corrse of ibe year. He nv?v.-d, tbertf jie, io st ik out th j w-irds whi b diret's that th- auufunt f this'tax shall vro to the icdemp ion of tlr pa oer in ney, io order th.tt it may into tne lre siry like cher t xes for th. ordi nary purposes of 3 vernment. Mr. Gstin s.id, if he understood the object of this l:dl, it was to prov de for tb- redemption of the pap- r money io the Ba-iks ; and fir this pu-pose, it w s ('ccned nec-sJ3y to p;vidc sooie i :i n: ; hut, according t th - a n-ndment of the gentleman frooi H .bl x, tb m an is t 1 be pr-stived, b it the t-nd ib.ndon;rd. Wli 1 proportion, ak-f! M (i. do-s "his tax be ir to any th - x ? Tiier is n lax pai l by any ci k'.i.L-ns f)i .n . v. mima tnai is equal o me-ten-h f this tax. The tax 011 ne roes is 2t. a 0 di. Negroes, on an utTJirc from the age o! 1 J to 5 ), wii! hire f r 2')! a vim , so that Mir ax oo his pro oettv is on'v o ic-iwo hund e!'Ji ; .rt f)f it" lure. 1 he la on town p'o pertv is Jj. on cvtrrv I '). value. Hul t's v ibi is g fi rai'y tied below what t w " fl s' d lor. This pr.jjrf y m y he es t oi c I the ef;e s worili 0L a J vear, wjoch is toe one-hundrcd'.'i par' of it an .u .1 proct ed: A rax ot Sd. is laid o:i v ry ICr) aces of I nd II land will rem lr any toinT it will r. ot for lj. an acre ; tins tax i-: '.nrrtdoie only a hundred and fiftieth p f of is it. lit. 11 the popjMi! la w u, there fore, to mttt liie current expences oi the (ii veni ii-nt o ie tenth of one p.; cm', on the sto-k of ibe Ha iks wool: ot a hi ii 'as. . So toot itthis a tx as h- o'u- proo m 1 was never before hei d d" in tl;; c u atry. T ie heaviest tax ver laid even in Kngland, where tli. oole pav h-i.'h'-r iaxes than in" am . b?r prt of the world, was the Ineoiii. l a ;, under Mr. lb t's Ad'ninis'.ra'ion. w . ;h was onv-t- nth part of a man's in-com-. Yet f lis tnaxirnum is here to be impruv d upo;. fir netting our oidi n irv snpolies. Mr. Vf. rem v lid, hrt the gen 1--niM ir nt Hi! fax hul not exh'biied Ins uMi d rorrec'ness on this occ.iston. The irst section of the bill, docs not no v orovide for at ?p iropriation of thr i'i terest ansitig from 'h stot.k belonging to this St iU in the funds of the U. s;. i'.h it pr ivision hid b-en s'mck out, on a nio.ioi m i le by himself. That sec tion n m pr iviiles ih it the d'vid nds ai i I , iro n 'lie sna:cs wuien me iai: h ,1,1 in th. lianki f Xewhcm k C i;k !'. when in-'l' '-p t.ion ot t!ie I'r ,incr to st a c of oil. rinaiices will per- . t 1... 1. e. .a mu. snan oc vnos u.i.i.ie.i. I ne motion was nega iveu, Mr. Rr c now made his motion for excepting f urn tlie ope1 atioo of the bill he bank "h res belonging to the S'.a e and the University. Not carri-.d. Th- sec'ion f th bill oein no lei , o is'drration which restric rd h- B t k from tsu. ng n ;cs f r ks than S" Mr. f.Asr" s oOs rv.d th t wn n he 'Irst heattl this scrti n re id, u di l itf ippea' t) hi 111 h it w "d t n . attended wi Ii any inj ir.ous eieds ; but on r -Meeting on the subject, ne w is satisfied hot n bench wvuld accrue to the St re from this pr 'Vision, and that it would b injuri nis to the citizens, an I emb.trr ivwue; to the IS a as. ilepresu- 1 oied that Wie olij'-ct of this res'riction ! as, if the Banxs were not permi'. j ted to issue notci for less tiian S3, that j I .r .ill le-s tums they wo ild be com- j pelled to part wi'h mecie. Bnt so long j as our pip-r cut ncy ex sts, tney win be at liberty to p.y in that; and at the moment the i.e slature is cramping their operations, it cannoi be sup.ioed that they will voluntarily cramp th-m-s-lves still more. What, then, will be rhe tlftct of ibis restriction ? When the B mks have to pay any less sum than S3 they will pay it in ragged 10. 20i. and b'.lls, and when they be come so t rn as to be good for nothing, they will perish in the hands of our ci tizens for they cannot gtt them ex changed for . o hers, as they could ex clnnge Bank Notes, if they happened to be torn. He thought, thrrefore, the o:dy consequence of jhis provision would , to embarrass unnecessarily the ope rations of th- Banks, at the same timt bat it would njure individuals, as long s the piper cu r.ncv remins, Sc it would ' of no benefit when the paper. curren cy shall be extinguished ; becauic Uen, whenever a Note shall be presented to the Bank, sperie must be given fr it of coue, If th - house were willing j to rmke their restriction to all notes less hthau he would not-object to it ; and concluded with moving that a'mend- incut. Mr. Drf.w siid, if he could be induc ted to belu.ve tint th.-se liinks were of any b.Mieftt to the- people of NTor h-Ca-f'l'ina, he wou'.d h ive no objection to join th. gentleni in from Newbern in his notion ; bu1 deemi ii thvir couduct si uis r us and nj irious, he c u!d not a iree to it. He wished not to embarrass the IVinks ; but to revive their credit, aid to infuse a por'ion of heal'h into their yr'tem, th.it their Notes mii!jht iot co itinue 10 drpreciate, and, w'i'h t'iem, our vd S'a'.e currency. If these lijuks wt-re considered as ben- ficial to c. S ate, no comoi nnts would be heard tin t them. They do not support th Ii;nitv TBtnks for'h Bank of N- a--hern isu s n tes as low as five centr. hi ii is uuprecedeu'ed in the ann Is f ii. uk ng. Tii - B iik f England, fiil ely, never issued a n t- for 1- s- than Tne B ink of Kdiinmrg, had is-ju-e I no es for JOt. b it these were com-nlaio-d of. 'I'.lese sm d' notes u3.nihi at-, toe runniog change jf the C(un' ry ; jfid we cao get na fiimg- that will pass ail a ljoi ling St l'h- Bank ol V ir rnii has no notes of less value 'h in ' M I), pricssd hii object io i p;oh;')iti' g no'es of h.ss w.'ne b ;n S I ai, i: m.i tii. o. int 'lu'ii'.a uui i,ij v i old t')f. hills, wo b were far preferable to inese n lies. But i. is s.u I these bills wili be ried ; but they will not In refused if they b i.igg.tl th-y a'e a ieal ttnd;.r. Be ft) e these: B.mks, went iot j o.i'jrati )'i, no r ampiaitu of the vvant of snail chi'tr was heard. Where there were no 10,. bills there were b ird loMars. He hoped, therefore, if gen ilemeri consulted the charade of out Banks at hone and abroad, they would rooibit the issuing of these small oott s. Mr. Gaston replied, that whatevei might be the intention of the gentle man from II ibfa."., he had no doubt that if this section was suffered to remain, it vo'dd be injuri us to the community Hid embriass tiie proceedings ol the i 1 k .. It was Siid these small Notes b id ?m effect upon our current change ; ut wbit, he asked, was this change ? It wis not silver; but ihe good old 'pr Mon v of N. Carolina, as the gentleman from H di'ax termetl it, bu; what lie calletl ragged, inconvenient 10j. lOf. and 4 1 vt bil.s, many of which were touiUe: f it. In order to knotv whether us vooil oil fiAp'r mon'y is superior to J i.us notes, let us en;dire into licts. .Vhen persons a.e in p-iSsession of lank notes, will tb y exchange them 'i' this piper miotkv ? They would no. I . le knew hat the lj 01k notes .ver p-e- f rred, because less worn md 'Jire was o risk of their b i -i? counte feit. He b I 11 ' know ib.it the practice of the j iank of L'. igland or I'.dinourg had u.y j 01 ng :o d in the rase. I is true, th st j he B ink of lnglan 1 did not issue Noics 1 for a less sum than 10'. but thre were ouks in every to vn, an-' m mnv l heir villages, which isii-d notes far s o tiler su ns. Mr. k. wished the 1 inns' not to i nigine iii it by ta'kine: oTj digoi'v, tlv:y w ul 1 impart dignity to! 'he B nks nothing but the correct! manag mem of these institu ions would : insure them this char icter. The motion was carried. Mr. JIre v wished to mtroduce an a mendmcnt which he believed to be im oortant, not from any h )S'ility to the inks'but in order to restrain them within their proper bounds. In the act incorporating these Banks, they are oermitted to issue N:otes to three limes. the amount of their capi'al, over and a bove their deposits. He believed an improper use bad bten made of the li berty gran ed of issumg notes on depo- a ' m 'sits. In order, to prevent this being lone in future, h : proposed a proviso, That nothing in the act of incorporation should au h irise the Sinks to issue Notes on temporary deposits. Mr. Gaston' hoped this amendment would not be agreed to. In the charter granted to these Banks by the Legisla ture, il is said, the Dbectors may rssu notes on the am unt of meir deposits ; and are the members of this house pre pared to sav, tha', after this bargain has betn made, and after the Ba k -nave gotie into operation, we will rW :omply with the stipulated ter ns ? l hoped ihe bouse would not adapt an auch monsous amendment, M -. (ii said, in his apprehension there, to the Batks for payment.. H- had was no fu'nd more safe than these depo- j seen a -person' carr off 15 or 20 000 its. In all places" where Banks exts? ; .' hard dollars in this way. But a Ru:K the current business is chiefly done ' ; monJ paper is now introduced con ain there, without drawing any money out j' ing the opinion of two of thr'ir Judges of its funds. Suppose fjr instance, I have dep isired in the Bank one thousand dol'ars, wiih the liberty of drawing for it as I w.w. il. I have to pay a man $500. - I pay him: by writing him a check on the Bank fr; that sum. He dots not rerj ceive the money, as he also keeps his m ney in the Btnk, but sends the check, w 'h directions to h ive it placed to his credit. Afer.a B nk has bt:en some time in op ration, it can axc-nain the sum below which these deposits will ne ver fill. P ovided, th-refore, the B.mks keep money in their v ults ta mttt the demands wh'ch m.tv be nade up otuhem, thnre is' no fund on which thev can more j ; saf ly i sue their notes. If the Bi7ks m wt re thus to be limited iti th.ir progrrts, ! how could they gain sutricientlv to pay all th. ir expences of clerks, seo'ionarys : ll a id even -hare one per cent. A s- ; mit a principle I ke this, sai l Mr. (i- an I I would not g ve y u one-tenth part ! of he pri:- which the S-ate bis pti I f r i her shirks in In -se B inks All w:i.ers! on :he subje' t were agreed as io the ? re "ietv f his practice. Be referred to the Rep rt of th Brst, as well a, the '. ! oveseot Secre' :u y of the Preasurv of the. U. S.iie and added that it was the ; constant pi actice of the Bank of the U States, and that ali Ba iks mu t be per- j nittt-d tf act in this way, or they could j not carry on their business. He hoped, th r' fort -, the motion would be rejected. M v D - ew observed, though he saw the house was restless under the inves tigition of this subject, he hoped he sh uld be, permitted io show that his a tnend'nent was calculated to prevent a- 1 bo es in the Banks and to serve the State. Th nigh the gentleman from NVw b rn had not directly questioned the constitutionality of putting this restrain; jpon the conduct of the Batiks, yet he nnd said that the Lvgisl-uure were a bout to disoosst-ss ihem ot a right iriven to them by charter. This is'tlir own out to deter the house from acting upon rhe subje ct .; bir he c nte oded, that if this orsv lege of issuing on deposits was f .und to be attended with injinious con sequences to the Slate, tiiis Legisltttre have a right to correct the evil. In or der to prove the cotrec'ness of the o;i oion, M. D. reivl a late deci-i n iii a corporati n cause by Judges Roane a :d Flem ng, in 'he Su uv:neC u:t - f Yir- to issue more notes han. three times -ginia, wuere they declare, th t where I their capitel, over and ,ib vc the amount any charier has been g anted by the Legislature, the object of which, instead f proving serviceable, to the communi ty, as it was intended, operates inj.n i- , ouslv, they have a right to umend or annul it altogether." He also cited Go j vernor Tyler's opinion, in confirmation A' tne s i ne doctrine. If the dep sits in question wrere made for the ourpose of increasing the funds )f the Baok, he would not object to V;tes beifig issued upon them ; but 'he deposits' he wished to guard a gunst w re sucl as might be made o day and withdrawn to-morrow, per il rps f ) the v ry purpose of authorising he Bank to emit Notes upon them. Exclusive of any deposits, the Banks are at lib ;rty to issue Notes to the a mount of three times their cap tal. This in one of the Banks (provided all their S ock were suoscrioed for) would be ! 3750,0'.;0 and in the other SSOOOQO, ! which wou'.d surely b.- as' many Bank No'es as ought to be in circulation in this S ate. Besides, this au hority to j ssue on deposits, eludes all possibility I of prescrib-ng any limit to their ends-! sions, Each Bank may, if its Directors j choose, issue a rndlion of dollars on this ! ground. , " As toils being necessary to issue un on these deposits, to enable the Banks' to pay their expences a'nd insure a pro per dividend, he had no doubt th t the profits arising fr.nm an issue of three j ! times their capital would be amply suf- tlC-e',t I M . W. W. Jones s?.id, 'that after rhe house had been wearied out by te dious argument, it became necessary that he .should confine himself closely m the subject under discussion. The gentleman from Halifax had introduced another newspaper into the house. On j 1 former occasion he brought forward a j Petersburg paper to shew th.t our Bank Notes were there depreciated. He be ieved it was a practice with some men there to cry down our Notes, thut they might purchase them and bring them on i m a certain case, whir i he believta to ii. be no wjv oarellel to this. It was aidj that no charter ought to be granted but for the good of the community. This, Mr. I. allowed ; but rhe proper time forj making this enquiry, is at th peiiod when the charter is about to be grant ed. ; He agreed in opinion with these Judges ri.tt corpora-ions m y be cor rected where they att amiss ; but these Judges hive not said that our Corpota lions may be taken away ; if they had, such an opinion would not be sanction ed, by the Judges, of this State. Tne Legislature of -N rlh'--CAro!ina once m de themselv s ridiculous by -.taking"" from thf Uuiversity property which nev h id give n to it ; but the Jvidges declared they had acted uncons cumo. nally and would -.not 'carry the law into effect. They Avoold, no doubt, on a si milar occasion, shew similar firmness. But, said Mr; J. suopose these cor nrraions have acted improperly, - do you constitute the proper tribunal be t br which their conduct plight tp be ar raigned ? You are not to try whether or not they h 've complied with their charter in, every particular. The opi nion of the Ju Iges Which the gentle man has introduced, is a proof of this. The reason is obvi us, sid he, that' aN though we can make laws, we are not always correct expounders of them In addition to what had been staged by the gentle'rnan from Newbtrn re soecting deposits, he would obsi'tve-, that in the town from which he came the merchants trad, d principally to the W. Indies. When vessels came in to purchase cargoes of our produce, the persons concerned were not desirous of paving for it in gnl t or silver, they de posit this therefore in the Bank, nd make their purchases by checks upon the coshier, When such deposits were made, Mr. J. said it w right to issue Notes up 'ri th - m, and it was a right granted, to the Banks by their charter. -Mr. Gaston said, the gentleman nom Halifax eniertained an idea that gieat abuses have been, or may be com mhted by means of issuing notes ort temp i' ary deposits. He would venture to s y that this evil has not, nor can it, in ihe nature of things exist. Wh it d e the chaf er, of the B mks say ? 5 Th Jt it shall not be lawful at any time.- of their deposits. It is said that a sum of money maybe depositedv notes issu d upon -it, and the 'next moment it m iy be vi hdrawn. The B t ks never h .ve issued notes on such deposits as these. Mr. G. would infirm the house on what kind of deposits the Banks issued notes. Ascertaining by a course of ex perience, the lowest sum to which the deposits ever amount, which, happens at the time vvleen the merchants of this State go to the Noithward to procure their g ods and make payment, because then they w, ni all the money which they can get, the Directors can safely issue upon this amount. And if the Banks were not to hive this advantage from the deposits, they, would get no thing for the risk of keeping the-m Mr. G. supoosed the lowest sum at which the deposits in the Newberri Bauk 00 dd be a any time estimate,d vvas about 50 000. Mr. G. would add one Word with res. pect to the legality cf the proposed a- -mendment. That this house, that this S' te, may make a specific contract, by which mey are' to receive a bene fV, and afterwards legaliy violate it, he trusted w lul l never be seriously maintained. ir Afi r all that th. y rnd-neard 00 the Un consiitutioriality .of impairing Contractsf thai thrs Legislaivre shall sey to a cor- poratian, 1 -t u have so m .ny shares of your slock, and y u mav issue so ni .nir no-.U , and now, af'.er we have L-ot ih r . s: oc;, we sluuld turn round and say . we will not be bound by this contract. wai l by this contract, was to him un-iccountabie conduct, and such as he trusted could not be ftanctiontd by tiiis house Tiie motion was negatived. Mr. Gaston supposed -some amend ment was necessary in the last section :f the bill. As ii stood, the heirs of . he present stockholders would be liable for any deficiency which might tak. place by the misconduct ot their successors, after they were dead and gone,. fee their shares possessed by others. This, hi: snppostd, could not have bsea the in Ii I .1 1 n Ml if S.i 1 , it mm H'!p :)'- ': , '51 LU i ' '
The Weekly Raleigh Register (Raleigh, N.C.)
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Jan. 18, 1810, edition 1
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