The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1848-12-20

of the expiration ofls charter claim; that he
was anxious, he said, TO give, by The adop
ton of the Resolutions. The charter hao
seven years to run, and, by gradually wind
ing up its concerns, no commercial crlsl:
would be produced. nor any distress be
brought upon the agricultural community.
The Hon. Senator next took up the Res.
olutions, and said that they contained two
distinct propositions, viz: That Banking
operations were two hazardous for a State
10 engage in; and secondly, that the Bank
ofthe State was founded upon this errone.
ous policy.
The Bank of the State, lie said, was cs-
tablished in lsl2-to consist Of all stocks,
bonds, cash, and other securities belonging
TO The State. The chartered rights of the
institution clothed the officers with power
which no other department. Of the State
possessed-a power 10 contract debts double
the amount Of its capital Here was pow
er surrendered, which neither branch Of tho
Legislature could exercise without the con.
sent of the other. What check had the
Legislature upon the indiscretlon of these
officers (who had no immediate interest in
the State instilution in making loans to
themselves and their particular favorites7
Who suffered by these indIscretions? Not
the President and Directors, but the tax
payers of South Carolina.
The Hon. Senator referred to another
hazardous operation in banking-,he great
expansion Of circulation. During the periods
Of wild speculation, and of sudden contrac-
tions, consequent upon commerial revuIsions
ending in suspension of all the Banks
throughout the United States in 1887,
what was The condition of our Banks, at
that time? The desire to pamper the in.
ordinate appetite of speculation induced
them TO expand their circulation to an in
credible amount; in some instances, said the
Hon. Senator, from seven to nine dollars in
circulation for one of specie. A revulsion
came, commercial credit was destroyed,
and that which was equivalent to specie, The
products of the country, was Of no avail;
the specie was demanded, and what was
the result? The Banks saw that they had
too many bills in circulation to redeem, and
the consequence was, an universal suspen-
sion!
What, asked the Senator, would have
been the condition of the State, had the pnb-
lie debt of 100000 fell due in 1887 instead
of 1910? The Bank of the State, had sus-
pended-she could not redeem her own
bills in circulation-there was no other fund
10 meet this debt. The sinking fund was
created in 1921, to meet it; but, in October,
1886, this fund amounted To only $596 1850.
1t could not have met the debt, and repadi.
alton would have ensued. But happy for
South Carolina, this debt, was not due on
til 1910. and, in the meantime, God send
came, in the shape of the surplus revenue, &c
the amount Of 81 ,05f, ,423. which was drec-
ted to be placed in the Bank; and another,
in 1888, in the shape of the Charleston Fire
Loan Of S2OOO,Oo0. Of this amount, the
citizens took something over 100000.
According to the Presidents Report, we
were now passing through another CONNER
cial crisis, and what was the present
condition of the Bank? By referring, said
Mr.. Marshall, to the Comptroller Generals
Report, for Oct. ls4s, we found the follow
ing table:
Cash liabilities Cash resources,
Circulation, $slI,24 50 Specie. $9s,5B =
Due Banks, sls,,7s6 o. Dom Exchange, ss' 'ss4 ss @
Deposits, 53sls2 65 Foreign ditto, l52,ss4 30
si6osIgs p sa4ooo9 II
From this statement, fnanciers, he said,
would pronounce the State insolvent-S4,-
n 4 49,. nfN.. r