leges accorded by the terms of its charter.—
This provision merely Bays that when that
charter expires it shall not be renewed for a
new period, except upon certain conditions.
Then where is the injustice? One bank has
a charter for twenty-five years, and it expires
at the end of five years from this time—
Another bank has a charter for twenty-five
years, which expires fifteen years from this
time. When their charter shall both have
expired, each will have had the same privi-
leges tor twenty-five years; the one has had
the same privileges for twenty-five years that
the other has had. There is no discrimina-
tion between them; and the change from one
system to the other operates no injustice what-
ever.
Mr. PUGH. What I mean is this; there are,
we will say, one hundred charters granted in
this State for different periods of time. By
this provision, we state that after the expira-
tion of those charters, banking shall be done
in this State upon totally different conditions.
The result is, that if I happen to hold stock
in a bank whose charter has ten or fifteen
years to run, I estimate the value of that stock
by all the circumstances; I see that by the
organic law of the State of Maryland, after
the expiration of the existing charters bank-
ing is to be done upon a different basis, and
I therefore regard my stock more valuable
than the stock of a bank whose charter ex-
pires in one or two years. Or if I want to
buy stock, I will select the stock of that bank
whose charter has the longest time to run.—
I know of certain banks in the State of Ma-
ryland, for whose stock I would give more, if
this provision is incorporated in our constitu-
tion, than I would for the stock of other
banks, for the reason simply that the time
their charter has to run will keep them longer
from the operation of this provision than
other banks will be kept from its operation.
In. five or ten years there will be in the city
of Baltimore only a certain number of banks
in existence, doing business under what I
consider favorable circumstances, where there
are to-day twenty or thirty, and would I not
determine at once that if I want to buy stock,
I will buy the Stock of those five or six banks
in the city of Baltimore, that will then be do-
ing business under what I consider favorable
circumstances?
Mr. STIRLING I would like to ask the gen-
tleman from Cecil (Mr. Pugh) one question
Suppose a bank has a heavy surplus; will
not that stock be worth more, even if the
charter has but two years to run, than the
stock of a bank that has no surplus with a
charter that has ten years to run ?
Mr. STOCKBRIDGE. I have heard the expla-
nation of the gentleman from Cecil (Mr
Pugh.) I can only say that I understood his
position just as well before his explanation as
I do now. The value of stock in a bank is
regulated partly by the length of the invest- |
ment made, and partly by the dividends which
the stock is supposed to be able to pay.—
Now the first part, the length of the invest-
ment in point of tact is not affected at all by
this provision, and to what extent does it af-
fect the dividends which is paid upon the
stock while it continues? We have often
seen in this State, and in many other States,
banks come forward voluntarily, as a desira-
ble thing, as an improvement of their invest-
ment, and change their position from banks
of issue under State charters to national banks
upon the basis of the national law. Last
winter authority for that purpose was granted
to one or two banks in this State, and others
are now ready to embrace the same opportu-
nity. Then what becomes of the favorable
circumstances spoken of by the gentleman
from Cecil (Mr. Pugh) Suppose all the
banks of this State but four or five should
become national banks, will those four or
five banks be under more favorable condi-
tions, to use the term of the gentleman from
Cecil, than the others? On the contrary, will
not their bills be avoided both in the State
and out of the State? And will not every
bill issued by that bank and paid out over
its counter necessarily have a limited circula-
tion? Suppose the gentleman wishes to travel
to Philadelphia to New York; would he
take the bills of one of those banks and travel
with them as readily as be would with bills
of a national bank? Not at all. Their cir-
culation is restricted or limited. No sooner
is a bill put in circulation than it is turned
back upon them at the earliest possible mo-
ment, and all the advantages that are ever
reached, from being banks for the creation of
a circulating medium, are gone from them.
And any advantages which may be enjoyed,
after the expiration of the term for which the
charter is granted, is but a speculation upon the
temper of some future General Assembly of the
State. We all know when a bank is chartered,
that there is a certain length of time for it to
run, and that length of time is the only legiti-
mate basis of calculating the duration of the
investment. And when we come to presume
upon the amiability of the General Assem-
bly we may be mistaken. Upon either basis
we have proof to sustain that the position
that this provision is imposing no hard con-
dition upon any bank. It is merely placing
them all upon the same basis.
If this provision is not passed, what is there
to prevent the Legislature, if they see fit,
creating not only the apprehended inequality,
but even a much greater one? Because, un-
til the time specified in the amendment of the
gentleman from Baltimore county (Mr.
Ridgely,) when the last bank charter ex-
piles, they may renew each bank charter as
fast as the time of its expiration approaches,
for ten, twenty, fifty or one hundred years,
and practically may perpetuate the system,
instead of fixing a time when it shall come |
