The Sumter banner. [volume] (Sumterville, S.C.) 1846-1855, 1850-08-14
Tho Bank 81 tho state.

to the manner in which the affairs of the
Bank have been conducted--to its utility;
and upon other question of asimilar nature.
mems minds may well differ. for there IS
room, perhaps upon most Of them, for aB
honest difference of opinion. But there are
two questions connected with the Bank up
on which it does not seem to US that there
Is any room at all for difference of opinion.
!. The nfst is as to the consttutionality of
the Bank. Its opponents say, that the bills
or notes, which the Bank issues, are "bills of
credit within the meaning OF that clause
in the U. s. Constitution, which prohibits
the States from issuing such bills,--(we
might as we'll give the words of the Consti-
tutioD--they are as follows: "No State shall
coin money: emit bills Of credit; or make
any thing bat gold and silver coin tender
in payment Of debts'D--ergo, they say, the
Bank is unconstitutional. In the first place
the premises are denied. The question, as
legal question, and it is nothing else but
legal question, hns been directly and urani-
mously decided in favor OF the constitution
ality Of such Bills by the Appeal Court in
this. State--the Judges who decided the
question being HuGER, Norr, CoLcocK,
Bay, RICHARDSON, JOHNSON and GANrr,
one Of whom at least, we know, was origi-
ginally opposed to the establishment Of the
Bank and a similar question has been de-
cided in the same way BY The Supreme
Court of the United States. But if the
premises were true, j. is plain, that tho con-
clusion, sought to be dcduced does not fol-
low. In ANGEL & AMEs on Corporations
p. d6, n. i, il is said: "The term bank, in
reference to commerce, implies place of
deposit of money. Banks, like most com
mcrcial institutions, originated in Italy !;
where, in the infancy Of European COM
mcrce, the Jews were wont to assemble in
the market places Of the principal towns
seatedos benches, ready to lend money;
snd tho term bank is derived from the Italian
word 6anco (bench.) Banks are of three
kinds. of deposit, of discount, and Of circu-
tdf'on. In some cases, all these functions
are exercised by the same establishment;
sometimes two Of them; md in other in
stances only ono. l. A hank Of deposit
receives money to keep for the depositor,
unit! he draws it ont. Thi. is tho first and
most obvious purpose Of these Institutions
Tie gold-smiths Of London were formerly
bankers Of this description; they took tho
money, bullion, plate, &c. of dcpositors
merely for safe keeping. 2. Another branch
OF banking business is the discounting of
pron,issory notes and bills Of exchange, or
loaning money upon mortgage, pawn, or
other security. 3. A Bank of circulation
issues bills or notes Of its own, intended 10
be tho circulating currency or medium of
exchanges, instead of gold and silver. The
Bank of England, the Bank al the United
States, and the Sute Banks in this Coun-
try, are all ofthcm banks of deposit, discount
and circulation Tie Bank OF the State of
South Caroli.a is thes Bank of deposit, of
discount and of circulation These three
functions are separate and distinct. II is
not essential to the institution, as a bank,
that It stionld exercise, or have tho power TO
exercise, all three of them. It may exer-
else all, or two, or but one; and if has the
power to exercise only one Of them, as for
instance, the right to receive money on de-
posit, or the right TO discoun, notes and loan
money, it still remains bank 1t is plain,
therefore, that the argument. has no bearing
against the constitulionality OF the Bank, as
It's opponents suppose, but only agains, the
exercise OF one nf its functions-the third
| and last stated in tho above extract from
Angel g. Ames. If the bills and notes of
the Bank arc "bills Of credit within the
meaning of the u. s. Constitution, then its
I'D function, to-wit, the right to tissue bills
or notes of it's own intended to be the cir
cula,ing currency or medium of exchanges,
instead OF gold and silver" is, without qucs-
ton, nnconstitutionaly exercised by the
Bank, it should be stripped of that
function; but, as we have already said, strip
il OF that function and il would still remain
a bank. However. the constitutional right
| to exercise even that function is settled, so
far as authority can settle any question:
Two Legislatures Of this State--onc by
chnrtering and the other by rc.charterng
the Bank--the Appeal Cour, of this State
and =" Supreme Court of the United States
-i.1"o Ill expressly declared it TO be con-
| stitutional.
2. The second of the tw questions to
| which we above had reference, is, whether
tho State ispledged, to her foreign creditors,
to continue the Bank, with its present porers
and functions, rs security, until tho debts
are paid. If the people of this State could
be satisfied that the State is so pledged we
believe there is not one man in thousand
who would vote to destroy the Bank; and
to our mind tho evidence upon this poin. is
conclusive. We will endeavor to arrange
and furnish it hereafter.
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NORTH CARoLINA ELEcrioN-There is