The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1849-12-12

incidental to conducting the business of the
Bank. The balance of debts amounted on the
lst Of June TO 5l9,s04 SIS. This item does not
appear in the annual statements of the Bank,
because il is extnguished by being debited TO
the discount account before the balance of pro.
fits is ascertaiued.
Balances against the Branches. The balance
appearing against the Columbia Branch was
$780, IA, and that against the Camden
Branch $427.477 36. For these balances the
branches have to account to the Committees Of
Inspection appointed for them, and any materi
al error in them would be exposed by their re.
ports.
| Agency at Rome. There is an agency re-.
Gently established at Rome, in Georgia, point
| at which profitable business may be done in
the purchase of drafts drawn upon consignments
of produce to Charleston, and previously ac-
ccpted by well known houses there and in ad.
dton to the direct profits of the business it pro.
mises The further advantage Of extending the
circulation of the Bank. The balance due by
this agency on the lst June, was S3,7s9 81.
Schedule 4.
Profit and Loss Account. Whenever debt
to thS.bank is deemed irrecoverab!s, il is aebi.
fed TO this account, and an equal amount is i'm.
medlately transferred from the discount account
to the credit ot,his account so as 10 balaTce II.
The effect Of which is that the lost debt is
thrown upon the profits and not upon the capi-
tai or other funds Of the Bank. The annexed
schedule E, exhibits the amount carried to the
debit OF this account in each year since the es.
| ,hl ,c tho Do,I o,d al. IL
recovered on account Of debts which had been
previously carried 10 this account. The act
whice provides for the appointment of the Com
mittec makes it their duty particularly to report
"all mismanagement in The affairs of the bank,
if any such have occurred Under this head
they feel constrained to report what appears TO
them to he an obvious departure from the ey-
press terms of the charter, though the same
matter has been. before brought 10 the view oil
the Legislature BY former Committees, and es
pecially BY the Committee appointed in 1910.
The Act of Incorporation provides that the bank
shall have power 10 make loans to citizens OF
this State in the nature OF discount on real or
personal property secured by mortgage and
power OF attorney to confess judgment on default
of payment. Provided that the sum so loaned
shall never exceed the one.lhird part of the re.
al unincumbered value of the property SO mort.
gagged, and provided further that the loan shall
never be for longer time than one year, nor
draw greater interest than al the rate. of Z
per cent. which shall always be paid in ad
vance, and shall always be payable in the
months of February or Morch next succeeding
such loan, unless an earlier day be fixed by the
borrower; and provided further that no loan be
in any case whatever renswed, unless the in.
teres, for the ensuing ;ear be paid in advance
and provided further, that no individual be per.
mted to borrow on his own account, on the
security of real property, greater sum than
two thousand dollars. The next section of the
same clause Of the act requires the Directors to
call in one.tcn,h Of each loan in each year. bul
gives them power 10 call in one. e.foIrh of the
loans on real and personal security, giving six.
ty days notice in Gazette and declares iha
persons failing to make such payment shall be
deprived of credit With the Bank and iudgmen,
shall he Immediately entered under the power
of Attorney, and execution issued against them
for The whole amount Of the debt. The Com
mltep have not discovered any act of the legis
Iaturc by which these provisions are repealed
or altered. nor do they see anything in the char.
ter. or in any Of the acts relating to the Bank
other than these very provisions, authorizing
cages at all. They are expressly authorized tc
discount bills and notes and to make loans on
mortgages of real and personal property in a
certain mode clearly defined and prescribed
which, by any fair and reasonable Interpretation
would seem not only TO withhold bui to exclude
the power of doing il in any other mode. II
may he that borrower from the Bank, on bond
and mortgage, rot made in conformity with the
provisions of the charter, would not be allowed
TO avail himself Of wrong in which he him.
self was participa,or, To escape from the obli.
CATION Of his contract, but il does no, follow that
such loan made by the Bank. is any less a
deviation from the charter, and, therefore. an
act of misnanagAment. Yet, notwithstanding
these provisions Of the charter many loans have
been made on bonds and mortgages Of sums
much above two thousand dnlIars, for a much
longer time than one year, and greatly exceed.
ing one third of the value Of the morlgaged pro
perry, and in sonr instances loans have been
male on bonds, with personal security, without
any ongage at all. Indeed it may be safely
asserted thai of all The bonds held by the Bank,
there is no, one which con orms with The requ.
sitons ot the charter Ii is due to the present
administration of the Bank to say that the prac
tice Of making these loans did not originate with
them, hut has prevailed for many years, and
under former administrations Of The affairs of
the Bank.
ITO be concluded nert ccek.)
| LETTER