Cheraw gazette. [volume] (Cheraw, S.C.) 1835-1838, 1836-12-06

made, and with as much truth as 1t IS now
OF inc spirit Of banking and borrowing
il may BE- said with more philosophy than
poc,rv, that it is a monster which derives
increase ofappetite from waa: it feeds On.
The very act OF throwing ouS excessive 'S-
sues of bank paper, by dcprecia'Ing nc 'a;s
ue of current money, creates. to u" III"
extent of that depreciation, IN increased de-
sire AMI necessi Y for borrowing because
an increased quan2iiy Of money becomes
necessary to e!f,.:l the exchanges OF socle!E. ,
The constant and progressive aPpFcc'a'Ion
of all kinds of property, which IS a''onc'
form ofcxprcssing deprecated currency
pivcs moreover universal stimulus 10 me
sniri, ofoverrading. During the downward
propression every man finds ii to BE- his In
tcrcst TO borrow money and purchase prop
crty. because money will be less valuable
and more easily Obtained when the day OF
payment comes, than it was w.cn nc oo'
tanned the loan; the price Of proper V III
the meantime, rising in proportion.
TIE trading community. and indeed a.
most all classes of society. become lh'oHic3-
ted with the spirit Of gambling speculation
in stocks. in land, and in every thing Csc
and continue 20 move on under this high
nressurc system until awakened from Their
dcIirium by an explosion, when he m1y De-
deemed singularly fortunate who escapes
unhut from the general wreck. No state
of things can be more untarorable to the
pursuits of honest industry, more corrup-
ting 20 the public morals, or finally more
destructive to the prosperity OF an agrlcul-
tural community. In the final catastrophe
in which it must inevitably terminate, pro-
pertv becomes deprecated, money becomes
more difficult to obtain, and in this state OF
things, all those who are indebted 10 the
banks, have to sacrifice their properly to
discharge their obligations. Aad IN the
scene of general ruin which follows, he banks
alone flourish amidst the distress and bank
ruptcy of the great body Of the people: 1t
is devout!y to be hoped that the spirit oi
sock. .iobbing will not spread from New
York and Albany, to Charleston and Go.
]umbia: and above all that the system oI
mutual bribery-which has produced sGc'
fearful and demoralizing results in o,heI
quarters, will never pol,ute Inc sanctuary o.
our legislation.
A rerv strong. ii no: conclusive reason
against giving banking privileges to the
Rail Road Company, will be found IN the
fact. that the capital ofthc bank ofthe Stat
Of Sou h Carolina, will be increased during
the ensuing year to the ex'cnt OF something
like a million and a half Of dollars, by thI
sum which will be deposited in that bant
from the Treasury Of the United StaeS.-
This will enable it TO increase lis dIScoun
operations at least to the same extent, ani
will certainly supply ali the additional wani'
ofthe community for bank accommodations
bevond what can b. supplied by the exis'ln:
bank capital. And as The profits OF tn
Bank cf the State rebound to the bench! o
the people at large, it would be very unwls'
to diminish these profits at the present con
irYc.ure, bv the grant of banking privilege
70 a company OF individual stockholders
even if this could be safely done upon soun'
banking principles.
Ii is not easy to perceive upon what plai
this rail road company can be TRANSFORMED
into banking corporation consistently Will
its original purpose. Ii is certain that tn
same capital canno: perform two mcom
pa,iblc functions. Ii cannot be paid ou
and expended in constructing the raIl road
and at tic same time remain IN the bank Il
redeem its paper. Such an attempt as tn
would inevitably end in u mere paper banS
as it would be utterly impossible that ii couI
redeem its bills on demand. If TO obvlat
this objection it should be proposed to hav
a separate and dis;inc, capital to sustain tn
operations of the bank, the plan would stI
be liable 10 very strong obiec ions. 1t woui
BE- substantially forming the same body
persons into two distinct corporations, e.
sentialIy different in their character and OF
iects, and requiring entirely different quail
fi;atons for the conduct Other affairs,
Iris not reasonable to suppose that tn
confusion ofpurposes and contemplation
d tiles, would facilitate or expedite the con
pI ,tion of the undertaking for which the con
napv was organized. On the contrar.
there is too much ground to apprehend tn
this noble enterprise would be degrade
into a mere concern of speculation an
stock obbing. When it is rcco!Iected th'
the Charter of this Company positively pr
hbits it from all banking operations, 1t is
be presumed that some very cogcnt reason
will be required to induce you to repeal tn
prohibition. The only reason entitled
consideration, which has been suggeste
is the effect OF this banking privilege in s.
curing The requisite subscription OF slocI
but it is now apparent, that as lar as
can SEE our way clear for making the roa
the means are already secured, five add
the stock already subscribed, the suoscr