The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1842-09-07

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reply; am-aDd s,rcnuously, zealousiy apdperse-
,erngly urged the acceptance of said law sobyious
y necessary, reasonable and saulary; and gardedhs
REJECTION by the recusant banks arrogant
unwise and, suicidal. "Tocspp was first and last,
The only decidedly sealoas agpcate Of the law, in
the meetings of the Bank Of Camden. The queF
ton of acceptance first came up at called meeting
in February, 1s4l; and afterwards, in, Nay, onray
motion, having first procured the passage of setef
resolutions, covering and admitting most
papuby, the principles Of the law; yet, upon the
main andadiect question, it was rejected. am
hostile present system Of banks on any
terms; but they osat9 be tolerated, would lay
them under the strongest legal retrictions-suhjec
them to heavy penalties for abuses, and death for
suspensions "for the relief Of the commnnifyn-tiis
relief of their own Golfers. "Pho Tocsin" is right
there is too much banking captalin S. Carolina; and if
you will turn to your paper of the 7th April last, you
will there find that earnestly urged over the sigma
ture of A Stakeholder, reduction, simultaneously
and pro rata by all the banks he Bank of the State
included down to four millions instead of the pres
ent fourteen millions and pointed out the mode. And
sir, if you will turn to my letter accompanying that
communication, tand if you have it not) you may
remember how earnestly deprecated the power and
abuses insepnrabe from such masses Of concon-
trated wealth. inqasorialiy and, it is to be feared,
too often unscnpulously managed You may re-
member that I pointed to the ability to make long
loans, (and which could only be done out of their
capital,s) the source Of their pOoerthat4hose who
came 10 bank 10 do really (not nominalty W quick
paper, were creating obligation, but dhg aaUOr,
as on this sort Of paper alone could tle Issue their
credits from which their profits arise TIE process
of reduction, there indicated, would not be felt
produce no disturbance Of the currency, scarcity
of moncy-no more than the every day sales of
bnnk stocks. At our last annual meeting, IproPo-
sed a resolution to reduce Immediately, which was
amended so as to instruct the President to Open
correspondence with the banks ontle subject ofJe;
ducing capitals would reduce the capitals of4ba'
Banks-not their profits. These (the pfo6ts) could
be made larger en- four millions than on fourteen
millions of cnpital.-Not higher rate, merely, but
larger aggregate of profits. as~.
My meaning is. simply, this that thesgreat source
of profits to our Banks is the loans of their credits;
thatfhese credits performing the functions of cur
rcncy, (or money! limited by the demand for cur
rency; that that healthy demand has nccessuyFe-
laton to the amount Of capital held by the B1nks,
and would be the same whether the Banks, held DOR
IA millions; provided the aggregate Of capital
existed in the country. Therefore; assthe positive
income from the source indicated, would be the
same, and the expense of administering greatly
below that of IA millions, it follows, that not only,
the rate of dividends, but the positive amount Of
clear gains, rom loans of credits wond be greater.
My object however, not so much to increase bank
profits, as to diminish bank po1er. 3,
2. Is he not. frequent loaner of money on in
terest, alias, a private banker, or, in common
parlanre, shayerl"
answer; was, for several years, occasionally,
engaged in shaving ndtes, bonds &C., but is not
now nor has he been. for many years, seither d-
rectly or indirectly. Having had satisfactory proof
that it preftable, and not the slightest doubt
that it was legaL moralsand proper, in Al private
banker, trading on his own actual capital, without
the faculty Of making money @-enakingi plenty or
scarce)-as much SO as any otherfrafc when fairly
conducted, in open market in the faceSet competi-
ton, which he always encountered, be entirely and
forever abandoned the practice years ago. and dees
proof that he has either taken,o entertained propo
son TO take, either directly or indirectly, IN the
mean time, more than legal interest, here or else
where. TX
3d. Do not its interests, (meaning those Of the
Bank of the State,) come in1cofhpettion with the
recusant bank of which he is director and
-
answer; they do, 10 the extent of the profit on
The business paper which it takes from the Bank of
Camden--a small amount, comparatively, believe.
As to its loans for the relief Of the unfortunatts
lie cmosynary operutions-tleIe is no conflict; but
ample scope and verge enough" for both.
But, sir you shall take nothing by your motion,
,r my admissions. "Tocsin' does not propose to
,bolish the Bank of the State unde, fifteen years-
within which time, the charter of the Bank of Cam.
len will have oxpred Hc simply proposes that, du-
ing that period its extra means, fire loans, sink
ng funds, surplus revenue and al) shall be slorty,
,snty and steadily called in and applied TO the er-
ingushment of the public debt till the whole shall be
brought down to a sum upon .Sh,ch proper dto'dends
an be made; (the private baiaS reducing simulta-
,eously and pro ruta,1 if ''Tocsn' could have his
vuy; which reduction cannot impair, in the slightest
lcgree, the ability Of the Branch Bank al Camden
deal in the purchase of Cuisines paprr, as largely