The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-12-08
Finances OF south C.ro,,n..

FINANCES OF south Carolina.
LITTER FROM Barring, BROTHERS AND co. TO THE
GOVERNOR, In RELATION TO THE FIRE LOAN BoNDs
Sir Your Excellency's knowledge OF the blsto-
ry OF the public debt of South Carolina will have
brought before your notice our connection with
the loan contracted IN 1873, for the rebuilding OF
Charleston. Al that time. we took ourselves, and
induced our friends, and those who had confidence
In our opinion, TO take large interest IN that loan;
and, in tunes when the credit of some of the
States was deprecated, we always felt and stated
that implicit reliance might be placed in the
security of this loan, and the maintenance, by
the State of South Carolina, of all Its engage
ments. We, therefore, stand connected, both
in feeling and In interest, with the credit OF
the State, and venture, without fear OF being
misunderstood, to address your Excelency on
the subject OF some proposlnons, which have
been suggested, to terminate the existence OF the
Bank of South Carolina, and thus Withdraw that
portion OF the security of the loan which rests on
the responsibility OF that bank 1t would be pre-
sumptuous In us, and far from our intention, to
attempt any interference with the proceedings
or policy of the citizens of your State in reference
To any matter OF domestic legislation. Our only
purpose is, from sense OF duty, to call the aten
ton OF your Exceency as TO whether the dlscon-
unuance OF this bank Is III accordance with the
conditions Of the contract of the loan Of 1885, and,
therefore, in harmony with the acknowledged feel
ings of honor which always distinguish the people
OF South Carolina.
The loan to which we refer was contracted in
London, as your Exceeney is aware, by the Hon.
George McDuffie. He was commissioned for this
purpose under the great seal of South Carolina. We
need not say to you that confidence IN the state
ments OF such man, accredited under such aus
pieces, was most effective. His statements were
satisfactory basis of negotiation. The representa-
lions of Mr. McDufiie consisted in an address
signed by him, and in copies OF the act of the
Legislature and of the commission from your State.
They were all printed and circulated, and were
the documents on which the loan rested. They
are included in compilation OF documents in relI-
ton to the bank, printed at Columbia IN lSiS and
tlu hna fanft uVs,tt than.
Ii will be seen by these documents, that the
curies to which the takers OF the loan were invited
to trust, were three:-
First, The faith of the State solemnly pledged.
Secondly, The guarantee of the bank, fiscal
agent, with considerable capital and promising
business, for the punctua payment OF the interest
and principal and
Thirdly, A specific pledge of the profits which
should be derived from the operations of the bank,
to meet the yearly interest. This was in addition
TO the general liability OF all the assets of the bank,
under It's guarantee.
Your Excellency will not fail to notice that the
State, of its own accord, and with irdnkness and
high sense Of integrity, which was appreciated,
offered, in addition to !he general pledge of its
honor, the other securities as valuable and avail
able The State knew that as sovereign II could
be subject TO no coercion, and therefore 1t offered
It's subject, its own creation, the Bank, as securi-
y-and this security, not only to insure the ult.
mate payment Of the debt, but also the Interme-
date punctual payment OF the laterest. This Sc
cunty was one whose profitable labors were also
to render the payment OF both interest and princ.
pal easy and convenient alike TO the creditor and
the State. twas security whose position would
allow the tribunals of the country TO operate on II
by coercion. No greater evidence could be given
Of the purpose to make the security OF the loan
satisfactory even TO the most distrusttul Ii Is I'M
posslbte to read these documents without seeing
both the determined integrity of the State in the
character OF these pledges, and the effect oi them
in procuring the loan; and we feel quite assured
that there does not exist on the part of the author-
ties, or of any portion Of the population of South
Carolina, IA serious intention to withdraw any one
of the above securities, or dsaPpolnt the expectd-
tons of those who have evinced implicit conn.
dence in their permanence until the extinction OF
the de bt for which they were pledged
1t Is unnecessary here 10 allude TO the extent OF
and which the agency of the bank has actually al
forded, but may be allowable 10 notice that II has
yearly furnished TO the state more than the whole
interest on the loan of ISIS.
We must however, beg your EXcellency 10 re-
mark, that no lntimation was given at the time OF
the loan in any quarter, nor untl lately, that the
bank was not toperion ITS service tor the period
of the credit which II was to secure. Nosucn ntl-
nation was made by Mr.. McDuflie in bis proposals:
nothing OF tins kind appeared IN the Act Of tue Lee
gisature, or commission OF the state exhibited by
him. The advantages offered were the agency OF
the bank, its profitable business bank, not for
part Of the tlne but for the period OF the loan, as
q whole. II IL had been asked whether the charter
OF the bank was not limited In tune, II would
have been instantly replied, that the continu-
State which offered the bank as It's guarantee; that
the State which held OUT the bank as security Tor
the oaR and interest," the whole loan and tue whole
interest, without reserve, condition, or limitation
sf time could no more fail To continue the bank by
new act a, legislation than o. provide for ultimate
payment by passing. Unnecessary, laws tor xation
IL could no more allow the pledged agency oi the
bank 10 expire. when its existence depended on the
mere will OF The State, than openly withdraw 1t.
No act of legislation can be compelled, but conpul-
sion was not m any way looked Tor in tue Conduct
of the State, and what was rehed on was the good
faith and honor of an independent and sovereign
republic.
We beg, therefore, respectfully TO submit to your
Excelency the consideration, whether the con-
tlnuance OF the bank, with substantially the same
powers and advantages made II originally de-
siTHble guarantee, IL not required by public talth
and we ecl that W. should falsely estimate your
sentiments, and Of the people over whom your lx-
celency presldes, n we were not convinced that
that consideration will be paramount over all other
views Of domestic or temporary policy.
II the consent Of the holders Of the bonds 10 the
extinction Of the bank guarantee could be obtain
ec, or II the substitution Of come other equivalent
security could be adopted with their consent these
objections would cease to spply; but the number OF
them, their various circumstances, the incxpe-
diency of public call for them TO meet for d.be-
ration, the impOsslbity Of such meeting, and the
appearance OF coercion which the call OF meeting
for such purpose would present, forbid the cx-
pectatlon Of any such general consent and the
only mode which suggests Itself 10 US OF making
the withdrawal of The guarantee Of the bank either
polite or just. would be 10y employing any funds
1T the command OF the State IN the redemption OF
the bonds by purchase, and thus extingBishmg the
debt tor which the sgency OF the bank was one OF
the acknowledged securities.
Ia asking from your EXcellency the favorable
consideration Of our views on this subject, W. are
sure you will not doubt our respect Tot yourself,
and Tor The community over which YOU preside,
and be beg YOU to believe us, with sincere c-.eem,
sir, Your Excellency's obedient servants
Barring, BEOTHEks X Co.
London, August IL, lSlg
Wool GEowiNo ~ MicneAr.-The Detroit Tt5wa,,