The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1841-04-28

directors, under the sanction of 'legal
opinion, from counsel of high standing,
and the views Of the former President, by
whom the agreement wth,Mr. Jaudon
was made, that the case of extraordinary
loans was not anticipated, not meant to be
included in the original arrangement, al
lowed the further charge of s3,970 dol
lars, 81 cents. These several sums "a
mount to 335, ,a37 dollars, 80 cents, as be-
fore stated. -.I4"& '',v '.Hara 3di
Guch were some of the results of the
resolution of March, 1885, though il can
not be questioned, that much may be fairly
attributed to the unhappy situation Of the
business and exchanges of the country,
concurring with the unfortunate policy
pursued by the administration of the Bank.
Thus the Institution has gone on, to in
crease its Indebtedness abroad, until it has
now more money borrowed in Europe,
than it has on loan, on its listot Actlye
Debt in America. LT. rf,9g. e.2. nj
TO this has been superadded, extensive
dealings in stocks, and continuation OF
the policy of loaning upon stock securi-
ties, though it was evidently proper upon
the re-charter, that such policy shouldbe
at once entirely abandoned Such indeed
was its ayowed purpose, yet one year at
iterwards,iin March, 1887, its loans upon
stocks and other than personal security
had increased 1921, ,541 dollars, while the
Bills discounted on personal security, and
Domestic Exchange, had suffered dimi-
mutton of 9,5l6,463' dollars, rs cents. 1t
seems to have been sufficient to obtain
money on loan, to pledge the stock of an
incorporated Company" however remote
its operations or uncertain its prospects,
Many large loans originally made on a
pledge of stocks, were paid for in the
same kind of property; and that too at par
when in many instances they had become
deprecated in value. 1t is.very evident
to the Committee, that several of the Of
6cers of the Banks were themselves en-.
gagged in large operations in stocks and
speculations, of a similar character, with
funds obtained of the Bank, and at the
same time Loans were made to the Com.
panies in which they were interested, and
to others engaged in the same kind OF oc-
Icupatons, in amounts greatly dispropor-
tionate to the means of the parties, and to
their proper and legitimate wants and
dealings. The effect of this system was
to monopolize the active means Of the In
stltdtion, and disable it from aiding and ac-
commodating men engaged in business
really productive and useful to the com
munity; and as might have been anticl-
pated, large part of the sums thus loan
ed were ultimately lost, or the Bank COM
PEELED on disadvantageous terms as to
price, to take in payment stocks, back
lands, and other fragments of the estates
of great spectators. 49,, ......
The loose and irregular manner in
which the business of loaning money was
conducted, tended greatly to produce this
result, and deserves particular notice and
explanation. From March, 1885, the Pc
riod of the passage of the Resolution
above referred to, the chief control and
management of the affairs of the lnstitu-
ton appears 10 have passed from the
hands of the Directors The mode in
which the Committee of Exchange trans
acted their business, shows that there real
'|ly existed no check whatever upon the
officers, and that the funds of the Bank
wele almost entirely at their disposition.
That Committee met daily, and were at
tended. by the Cashier, and at times by
the President. They exercised the power
of making loans and settlements, to full
as great an extent as the Board ITSELF
They kept no minutes Of their proceed
ings-no book in which loans made, and
business done, were enteredsbut their de-
cisions and directions, were gwen verbal
ly to the officers, to be by them carried
into execution. The established course
of business seems to have been, for the
First Teller to pay, on presentation at the
counter, all checks, notes, or due bills,
having endorsed the order or the initials
of one of the cashiers, and to place these
as vouchers in his drawer, for SO much
cash, where they remained, until just pc
fore the regular periodical counting OF the
cash, by the Standing Committee OF the
Board on the state Of the Bank. These
vouchers were then taken out, and enter
| ed as "Bills Receivable" in small memo
randum book, under the charge OF one OF
the clerks. These bills were not discount
ed, but bore interest payable seml-anc