Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1843-12-06

oil the public debt becomes due. som
scheme will be devised to induce the Leg
islature 10 issue new stock To redeem il
and if at every payment. seventy per cen
more than is paid is borrowed, it require
no gift of prophecy 10 foresee that This pro
cess Of redemption will overwhelm TIT
Stale in debt. fear too, that il may b,
considered rs certain, thai the Bank vii
never, unless forced 10 d. it, part will
dollar of its capital, or Of the funds usec
as capital, 10 pay any portion of lie princi
pal of Ihe debt. To diminish lis fund.
would be TO cnrrail lis power and influence
aud though history does record some rare
instances of men-exceplions 10 The gene
raj Tule--who have voluntarily resigned
power. I do moi remember single one o
Corporaliun of any kind having done
il.
Being fully assured that the Bank can never
pay The public debt by The profits arising from
lis operations, aLd being equally convinced
that ii never will voluntarily pay any part of it
ont ofiis capital suggest TO you the propriety
of requiring it. under the penalty o. iorteiing
its charter. to purchase annually and at some
period in each year to cancel. in the presence
of The Comptroller Genera State Bonds 10 rLe
amount Of five hundred thousand dollars. be
sides paying the interest OH the balance. By
such an arrangement the whole debt wonld be
paid in seven, instead oftwenty-six years.
II may be doubted by some, whether thr
bank will be able to withdraw so large "a sum
from her debtors annually, without producing
great distress in the State. 1t might be answer
ed. that according to lis own report the bank
collected and paid on: during the single fiscal
yeai of 1910. upwards oftwplve hundred thou
sand dollars; aud tine pressure OH the money
market at that time, vas incompsrably heavier
than it now is, or is likely soon 70 be- There
could not. in fact, be more favorable juncture
than the present. 10 commence tho operation
suggest. Money is abundant alnnug capitalists,
interest extremely low, aud safe investments
scarce: and II season of prosperity is evidently
about to Open upoh Us.
I think. however it cal be made manifest,
that these purchases cali be effected without
serious Inconvenience to ally rla.R oftIlc Bank
debtors. There is now, and is Usually due The
Bank on notes discounted, over two mlllions
of dollars (S20OO,00O) The Bnnded Debt
exceeds six hundred thousand doilars (S60G.-
0O0.) The Suspended Debt, and Debt IN Sul,
aplonnt TO upwards of lonr hundred thousand
dol lars $luO 00D,) and ,ht Fire Loan discounts
10 abovea million Of dollars Isl 900 0U0} max
lng an aggregate amonmi now due The Bank,
II more dian four millions nf dollars Cd. 0G0
00O) With lis specie and o,hrr funds, inclnd.
Ing MS ;;'vssnei.s in other than Stale Stocks.
aud five hnrtred thousand dollars (S0UU.TTI)
Of th, debt, it should be fully able tn redeem lis
clrculafo and depnss, and pay all other de-
maud, uiU, it-ieuvins three and half mil
iinns applicable 10 The public debt. Besides
this, the BNk owns, or did own or the 30lh
Sept. last, upwards Of four hundred nnd fifty
iholisand dollars ($4JH,0Du) in Stock nl this
Slate. Til; Stuck, with only fifty thousand
invested in the samr way, might comsiInic
the redemption ni the first year; and for that
period lIn debtor Heed he disturbed. IL is under
stood thai one million of tho amount of Notes
Discounted, CONSISTS ui accommodation paper,
at short dates. These accommodations mi@ hi
BE- cIlrtalcd during The second and third years
wi;,IGr, iiiCOnvGuirnCe 10 the customers ot the
Bank, who could readily "b,ain discounts else
where in tue present redundant condition oil
The Bank Capital IN this STATE. In the mean
time the Fire Luin Discounts would be falling
Ilue ln II considerable amount, and if AFTER
three years IIn.Ice, the d. blurs on Stationary
Discounts aud Bond; could moi b. prepared tu
IlGuidat, their liabilities ut the rate Of lwcnty-
live PR cent. per annnm. a longer indulgence
would not only be unsafe. hat extremely I'M
wise.
Whenever 1t has been heretofore Iggrsted
that the Bank shonld curta its discounts. ~
call IN its debts, the reply has been promptly
made, that the planters will be distressed, aud
iirl hIs Is Il planters Bank. When planter
burrows money, it is almost always for sprcu-
l.tinm, or 10 pay the losses of speculation. lie
never needs Il Loan ~ carry on his Legitimate
planting operal!nnS and when he becomes
borrower, even if it be 10 hold his prOduce. or
10 purchase land and labon,ers. he becomes rs
much specmlatur as the merchant or broker,
and Is entitled to no more lndni grmce. The
only Bank which could really ben~fil the plan
lcrs, would 5e II Savings Bank, where the ca-::,.
balances from their crops might be deposited
un interest until required.
# will probably be said that The scheme |!
nave proposed lur pay wing tile Public Debt, will
virtually throw the Bank into d state of liguida-
ton Moi so, however. Its present actual
capital amounts to four millions of dollars
Isl, ,NI0. .0iU)-,he debt To three millions and Il
half ($3.5oc OUO.) Which, If paid. will leave The
handsome sum of five hundred thousand dol
lars 5DOOOU) for Banking purposes. To this
nigh, be added the shares of the State in the
Rail Road Company and the Bank, aud also
their obligation. This W ..nld raise the nom NAL
cnpnl to one million. seven hundred thousand
Q .7GU, ,0GO,) and would give it one intrinsically
worth considerably more than its present ac-
knowIedged, permanent capital.which amounts
to only eleven hundred and filty.six thousand
three hundred aud lory.eighl dollars, and Tor
weight cents ($1,156,34S 4S.)
But even il the operation nfpaying the Pub
liz Debt sonld absorb The Bank entirely, it
would. in my opinion, constitute no objection
10 the scheme. The State would yet rid OF two
evils at once II ls nj least question whether
MI Banks are not evils. Tha: Bank operat.
ing like urrs on the funds and credit of The
State, is, seems generally obe conceded. The
hest proofof it is that almost all other Banks
so lr med. save ours. have failed-producing
iucalcuahie embarrassment and suffering An
equally clear proof of the opinion afthe people
ol this State, is the unexampled unanilnity