Cheraw gazette. [volume] (Cheraw, S.C.) 1835-1838, 1837-05-24
CHERAW GAZETTE L
WEDNESDAY,, MAY 81, 1897
DIR BANK.

1t will beseen BY notice Of thslns:ltutlon,
to be found in our columns, that it has suspend
cd specie payments. In this it has the approba-
ton of our entire community, and has only fol-
lowed the example of all other banks, not only
in this State, bnt throughout the country from
Maine to Louisiana, except two or three deposit
banks IN the neighborhood of Washington city,
sustained, thus far by the Government. Ably
and wisely as it has been administered it is
manifest that, in the present state of things, it
had no other alternative that would be safe
either to itself or the community. When there
is, every where, so great demand for specie, Ii
it should continue to redeem its bills as pre-
sented, all the specie in its vaults would very
soon be drawn out, and locked up in other
banks either IN this State, or at the North,
while it would be unable to obtain more. For
although there are due to it, by individuals and
banks compassionate solvency, hundreds Of
thousands, from which it could, but short
,ime since, and will bye and bye again. be able
to realize, at pleasure, the specie yet, at the
present time it could not raise from these dues
one dollar Of specie. Suppose then it should
60 on to pay on, till its present fund is exhaus-
ted, how much better offwould the holders Of
is bills be atthat time than they now are !! they
would be worse off; because its credit would
most probably be somewhat impaired; and
what in that state could it DO! 1t would Of
necessity cease to pay specie; and after lesen-
ing its ability to serve the public. it must get
along as it now does, without such payments;
or, the only other alternative, it must at once
wind up its coucerns in the midst of the present
scarcity of money and arrangements of the
currency, to the incalculable distress ofts cred
itors, and the very great depreciation Of its
notes which of course, would injure every
individual whoholdS one OF them. This IS an
alternative which no man in his senses would
recommend.
We said that the condition OF tie bank is
sound. To satisfy the public that this is the
case, an authentic statement CT its condition
will, we understand, soon be published. In
the mean time, we state, on the best authori-
ty that it has command ofmeans equal to abou:
toco hundred and serenity percent upon its liabiE-
ties. That is. for every dollar which it owes,
1t can command means of payment equal to
two dollars and seventy cents. It's ability
then to meetits engagements does not admit
OF the shadow OF doubt. There is not bank
III the United States-we make no exception
which has been managed better. or which
is at this time i'll sounder state. Although
so much of its busines has been done through
New York, such was the caution and forecast
with which it guarded its funds in that city,
that, notwithstanding the numerous failures
which have taken place there. it is not likely
to loose by them, at most, more than very
few thousand dollars. and suppose that all
the funds which it now has in situations where
they could be endangered by any possible con-
tingency arising out of the present commercial
embarrassments, should be entirely lost, the
loss would be more than covered by either the
profits realized since the last half yearly dlvi-
deud or the surplus Of profits remaining un-
divided at that time.
But as many are obliged to receive bank
notes and now actually have them in posses
sion, who have not knowledge enough ofbank-
ing opcratians to understand how it happens
that solvent and we'll managed bank can
have in circulation SO great an amount Of bills
above the specie on hand to redeem them,
and who are therefore liable, in the present
state OF the country, to be alarmed; for the
satisfaction of such, we shall attempt an cx-
pianation.
If bank issued bills equal in amount only
to the amount of its capital, or to the specie
na;d in, it could receive in return only the IN
terest of so much OF the capital as was loan
cd out: from which must be deducted the
expenses Of managing the institution, such as
.,ficc~e' sa'a-;a- hn.,i;-,o hr.lsoS. enrrGE Einr