The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1850-03-01

a Bank Director. If the Director should fail,
the people must be taxed to pay the money to
the public creditor from whom it was borrowed;
and the people thus become virtually endorse:
of this Bank Director. Can anything be more
unsound in principle, or corrupting i'll practice {?
And yet this is the Legitimate result oftle union
Of Bank and State.
l think then, may fairly take it as demon
strated, that the Bank of the State is an institu-
tion at Variance with the spirit of our Constitu.
tion-fouuded on erroneous principles, and con.
trary to those Republican maxims which lie at
the basis of all constitutional liberty.
5. The next proposition which, will endeavor
to establish, is that the Bank Of the State from
its very nature, operates to nislead and infiu.
ence in wrong direction, President, Directors,
and the Legislature itself; and that, if the Pres.
ident Of the Bank be politician, the Bank vlr-
tually gives master to the State.
Let it be observed in the first place, that the
Directors are appointed by the Legislature; and
when once in office, there is nothing to check
them in making returns to those who have help.
ed them into place. In a private Bank, the in.
terest Of the Director in the Stock, or the inter-
est of the Stockholders themselves would fur.
nish some check. But OH neither side do these
influences operate in the Bank of the State.-
The member of the Legislature is tempted to
favor as Director the man who is likely to IA.
vor him with accommodation and on the other
hand, the Director is much more likely to favor
man OF political influence in the Legislature,
than one OF mere pecuniary credit The ten
dcney OF such system on both parties mnst be
most unfortunate and the experience of our
Bank has most thoroughly verified it. For ev.
, cry one admits that the scramble for a seat at
the Board of Directors, and the scenes of elec.
tioneering which are exhibited about this Hall,
are anything but edifying to the friends of morals
and good order, and must even shock the sensi-
bilitics of the friends of the Bank ITSELF
But the most baneful influence is that which
is produced upon the councils of the country, by
the secrecy which is wrapped around the con.
Germs of the Bank. Members of the Legislature
become the subject of its influence through both
hope and fear A man may have procured q
large loan which it may ruin him to be called
on to pay. A measure vitally interesting to the
Bank may come up for discussion, and this very
man may be member of the Legislature which
is to act. Were it known that he was in the
power Of the Bank, his influence would be lost
and his words would be unheeded But shroud
ed in darkness, he is allowed to stand up here
and commend himself to his Bank supporters
or he may even be constrained or urged BY
them to take their part, and assist in sustaining
their power.
Again. The natural tendency Of all power
and influence is to seek its own increase. Tho
President and Directors are ever on the alert t.
increase the funds of the Bank, and thus to e1
tend their own power andnHuencc. Every oc
casion is seized to stave off the payment of pub
lie debt, or other demands which may dimilIisl
their resources; and the result is that Govern
ment Banks are ever the active fosterers of al
schemes of extravaganza and wasteful expen
diture. We shall see in another part Of this ar
gument whether our Bank has escaped this evi
tendency.
!; The last consideration which shall urge OF
this head, is that State Bank. which ought il
fact to regulate the currency and keepit sound
operates the direct contrary, and furnishes al
unfortunate and evil example to other Banks
This consequence results from the impunity at
tending their delinquences. They know tha
the State will exact no punishment from tn
d Bank for trying to make money. Instead there
fore Of keeping on hand a large supply ofspeci
to redeem their paper, they increase their issue
on the one hand, because that is profitable ant
diminish their specie on the other because the.
lose interest BY keeping large amount ofcoin
: and having thus increased the disproportion t
the greatest degree, they furnish an example
behind which the private banks gladly shelte
themselves. The Legislature itsclfis prcvente
from doing its duty, because of the influence O
the bank itself upon their deliberations; and be
cause of the just application of the adage, tha
the physician should first heal himset. Ih
State is obliged to sit down, and see the bcs
interests Of its people endangered by an unsom
and huctuating currency
+. Having thus established the radical un
soundness Of principle upon which the Bank Q
the State is founded, proceed in the next plac
to show, that the experience of other State
unites in condcmning all similar institutions, u
banetul to the welfare of society.
The Bank of the United States has furnishe'
a striking history on this subject, that our peo
pie (who lost three millions in its catastrophe
I need not be reminded Of its details. Its con
dcmnation is written in those deeply trace
characters of national suffering and abhorrence
which trust will never be erased from the mem
ory Of our people.
Tho Pot Ranks (as they werc familiarly term