The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1840-03-21
THE TAX ACT AND THE BANKS.

THE TAX ACT AND THE BANKS.
The subject Of the late Tax Act and its probable
effects upon the Banks and :ho People, has hereto
fo.e attracted largo share Of public attention. and
is likely, We think, still to command it. will be
remembered that tie Legislature enacted tina: the
Taxes should be paid "in specie, paper medium or
the notes of the specie paying Banks Of this State"
At the time this enactment was made, only the FOL-
lowing Buks were paying spccie. and up to this Pc
,iod there are none other The Bank o. the State
the Bank Of Charleston, the Commercial Bank, the
Bank Of Georgetown, the Bink Of Camden, and the
Merchants Bink, Che-cw. As the circulation Of
the notes Of the BiuSs n the city. which pay specie,
is very limited, il is probable that than three
fou,.hs Of the taxes will be paid in the notes of the
c,uu:ry banks. Those notes viii Of course so i:n-ac
diately into the Bark OF the State wh;ch PRACTICAL
ly the State Treasury. The important question ,hen
arises, what will the B1nk do with them? VIII it
pay them cat again to tho creditors Of tho State?-
Or, will specie be demanded for them? We scarcely
know how to credit the assertion, but haro heard
il stated tha. tho Bank OF the Stale will aiop, the
LITTER course. Ifsuch be the fact and from the
W
doubt, we cannot bu: think that the President and
Directors have widely mistaken the ohcc! Of the L.
gislatu:c in tho enactment TO which We havo refer
rcd. Taat body certainly ncTer contemplated that
they wero creating m enginc to cripple and break
down the action of the specie paying banks. On the
contrary, We had always supposed that the Legsla.
tcre by this measure intended to compliment and en-
49, nl,o pfTor IN
fulfil their obligations, rather than opp:ess AID pun
ish them.
# the creditors Of the State demanded specie for
their claims tho case would be widely different, and
there would be just grounds for the contemplated &C.
ton, bu: We have no in:;:aa:ioa TIA. suc co2;:.
gsncy is anticipated
The whole taxes Of the State amount 70 something
over two hundred and eighty thousand dollars. L:
eighty thousand Of this amount is collected in the
notes OF the Bank Of the State and the Bank Of
Charls ton land question if halt that sum is paid
in those no.es it will leave two hunded thousand to
be paid in the notes Of the interior Banks. Now,
what will be the effect Of the Withdrawal, at once,
from these Banks, this enormous amount Of specie?
The necessary, inevitable and immediate result will
be that these Banks must, in the same proportion,
curta their circulation, BY refusing further accom-
modaticas. g. enforcing with an unepasrs hand pay
.ent from their d3btora; the first lew Of nature, self
preservation will compel them, painful and unp!ca-
SAINT as it must he, to pursue this course. Dfused
orsr such largo space Of country as tho debtors Of
the interior Banks e:e and divided the loans are,
among such vast number of individuals, chiefly
planters and farmers, pressure and panic may DO
expected undee such course, far this State is
concerned. which will throw that created by the
removal Of the dcpostes, specie circular and all,
by Con. JACKSON, for into the back ground.
Ifthe State creditors do not demand specie for
their claims, We can look upon its demand BY the
State from those Banks which are trying in these
times Of embarrassment and pressure, to discharge
their obligations the public no other light than
speculation On the disressos Of people, We sin.
cc:oly trust, however, that better courss!s will pre-
vail, and that the course We have heard suggested,
will no. be adopted, and that the Bank Of the State
will no. require from tho othcr Banks any other pay
ent 70, tho notes which may be received for Taxes,
than such will amply satisfy the public creditors
This much is. most assuredy, its duty to do. and
moro is not required. We can see no adequate rea-
son. at this partcula, uncture, for the measure pro-
posed, and coming from the it does, at timo
Of such unprecedented embarrassment, it cannot fail
to meet the unqualified condemnation Of large ma
josty Of those who have right to speak and to be
heard on the subject.
Not only is the whole commerce Of the country
oppressed and desanged, and: every man connect
ed with commercial pursuits, compelled toI strain
every nerve. and make sacrifices to meet his engage
mea but the pressure is felt by the planter and the
farmer in consequence Of tho deprecated prices Of
the products ofthe SOIL Is it wise? Is it just? Docs
the circumstances Of the State require that th, ad
dioa step should be taken TO sdd 10 the distscsses
Of community already sufficiently ha::asscda
We make thess remarks ~: hsc:uss ve Aavo aaj.