Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1849-10-17
From the South Garoinian.
THE BANK PROFITABLE CONCERN
[BY REoUEsr.1


recharer is, ba, the Bank being very
profitable, il would bo bad policy in The
| State TO loseso the pecuniary advantages
thence enjoyed. We have already slated
our conviction Of the cardinal principles Of
rcpublcanisln whirh demands The entire
dependence of The Government upon the
people, and shown how The Bank conflicts
with. this principle. But even was ii
olherwise-even was it granted lha, there
was nothing cut of harmony with the res,
of our system, in the control exercised by
our Government over large amounts Of
money not hc immediate proceeds ol lax
ation-yct we maintain that The pecunlary
interest Of the people at large, so far from
requiring the extension OF the banlk,charter.
demands ha, lis affairs be gradually brought
TO a close. In order 10 reason fairly on
this point of our case, lie. US regard the
Bank as a nero piece of public properly
as fund 10 be administered Oh with all
the hazards usually attendant upon bank
ing operations, and lhoso superaddcd
which necessarily attach 10 such operations
when subjected to irregular popular or
legislative Interference. Taking this view,
we presume it will he readily conceded
lha, piofls ought;,o be very large to jusIi-
ty the investment Of very great amonnl
Of public property in a business so hazar.-
dous. They ought certainly to be very
considerably beyond The ordinary rate. Is
it d fact that the profits of this lns,ito!ion
have been very considerably beyond the
ordinary rn,e? We apprehend that they
have not been. 1t would appear that the
most successful years were the first eight
which elapsed from tho period at which
the Bank began its operations. The as-
sregare profits paid into the State Treasus
ry (Which was tho course pursued up to
October. 1921 wero for those years
S592.l0l 81, which is within small
fraction Of nine per cent. per annum on tho
average capital for those years Of $685.
5ll 70. No doubt some allowance must
bo made for difficulties attendant at The
outset of The enterprise, and accordingly
wo find that FOR The first Ihree years tho
profits amounted 10 mere triiie. After
October, 1921, The sinking fund was crea-
led, and the Bank required 10 carry. all of
ils nett profits to the credit ofIbat account.
And that fund has ever since been the re-
cipient of those profits, and been charged
with tho payment ;of tho interest and
principal OF he public debt. In the mean.
time, al! of the unexpcndod balances Of
that fund have been used as capital; and
to the capital, thus increased, has been
added The surplus revenue from The United
States, amounting 10 81 ,95l ,422 90. and
also the iro loan, amounting 10 $780,
253 81. Owing 10 the varying amount of
The sinking fund. sometimes running up 10
S9IS,0O0, aud then reduced to ihreo or
four hundred thousand dollars by pay
menls on account Of The public debt, it is
difficult, without entering into an elaborate
calculation, 10 speak with entiro aud mi.
mute accuracy. But wo have drawn from
the reports of. the. Bank itself enough to
sn.;efJ u5 TINT, without taking in, nan side
ratiun tho sinking fund al all, the Bank
has never mado seven per cent. on the
capital Of 54,0l7903 94, made uP.of the
three items above stated, viz: capital. fire
loan, and surplus revenue. For seven
per cent. on tha, amount would be S2Sl.-
2j9 81; and VIC find The larges amount Of
uell profits of any ono year TO bo $226,-
G52 IL. Aud, indeed, it is not pretended,
even by lhoso most devoted 10 the Bank,
that for The last ,wenty-seven years nine
and half per cent. has been reached in
any one year on The actual capital EN-
pIoyed. The average nett profits OF those
years too docs not reach seven per cent.
per annum. rs wo have nothing in view
but The development and establishment Of
facts in connection with this institution,
wo trust that wo shall DO set right if we
err in our statements. Our design is not
to impusn motives or TO impeach the
fidelity to their trust of those who have
managed the institution. We deem their
fidelity and integrity most remarkable, and
and every way worthy of The community
which have repused confidence in them.
II is with tho institution that we have 10
deal. ond that we deem unsound in prin-
ciple. That it is mol SO profitable as to
causeus to wink at, The vices of lis con-
situion, we think we have proved; for
surely few will be found TO contend that
any piece of property is very valuable
which cannot be made 10 yield sovcu per
cent; and still fewer. we opine, will hold
that opinion where the property consists of
funds employed in banking, where the
profits should al least roach tho usual rate.
and something over and above for insu.
rance against Tho attendant hazards. And
moro particularly should those profits be
large in the case of Bank like This, whose
operations mus, ever be liable TO be tram
mcIled by popular or legislative inerler.
once, or, perclance, caprice, and whose
management may afford exemplificatons
of the old saw deiirant reyes, plectuntur
dchiui.
Wo know that the attempt has been
made by The friends Of re charter to prove
rha, tho Bank has already refunded to The
State the whole amount Of The original
capital invested in it, and That the clear
gains Of the Bank in thirty-scven years
have been upwards Of Sl,G00000. But
we think they have faiIeI in their proof.
Instead of The Bank having earucd a sur-
plus nf This amount, it appears 10 US that
it still owed the Slate ten months ago
Sl,353,336 "a; and we make out the ac-
,nupt thus.