The Sumter banner. [volume] (Sumterville, S.C.) 1846-1855, 1850-08-21

anu rcsolutcly Keep it's laws,
tncar ing consequences.
Is the State hound, by contract, to her
creditors, to continue ifn Siic Bank as a sccur-
ty, with its present capitul, powers and
functions, until her debts arc paid7 This
question can only be determined by evidence,
and we proceed to state it.
In 1888 the State, wishing to borrow mo-
ncv, passed an Act, the provisions Of which.
50 far as they have any bearing on the gucs-
ton stated, are ,ts follows:
|. BE II enacted, by the Senate and House
ot Representatives. now met and sitting in
General Assembly, and by the authority of
the same. That the Governor of the State
OF South Carolina be. and he is hereby, IA
tlurizcd and directed. in the name Of the
said State, To issue bonds or other contracts.
10 be countcrsigncd by the Comptroller
general, not exceeding IN all the SUN oi two
millions ofdoarS, one miiln,n of which Shall
be payable al the expiration OF twenty years,
and tha other 1pillion at the expiration OF
thirty years, at Il rate OF interest not exceed
ing six yer cont, for the purpose OF pro-
curing loan on tho credit OF the S..tc. TO
rebuild tia, portion OF the city of Charles.
ton now lying i'll rims; Mul Inc said bands
or contract: DC issued in such form and fo,-
such S'ms. and tie principL and interest be
made payable at such times ard places, as
shall be most eNcciuGi IL, procuring tkc said
toon upon the best terms, either ia Europe
or America; and that the faith and funds OF
the State OF South Caruliua be, and the same
arc hereby, pledged to secure the punctual
payment Of the said bonds or contracts, with
the intercs. thereon
III. That in order TO effect the said loan,
the Governor Is authorized and directed to
commission such agent or agents as the
President and Directors Of the Bank Of the
State of South Carolina shal! appoint, which
said agent or agents shall be empowered 10
receive the said bonds or contracts from
the Governor and Comptrolcr-gcncral, and
10 make dH SHch arrangements as in has or
the'rJudgmem may be deemed erpedient .for
procuring the said money and placing ii to
The credit ofhe STATE, subject to the draft or
order Of the President Of the Bank of the
State of South Carolina.
Ill. The money, when realized in Charles
ton, shall bc deposited III the Bank Of the
State of South Carolina, and shall become
part of the capital thereof.
y. Ii shall be the duty of the President
and Directors OF the Bank OF the State of
South Carolina 10 make proycr prorisions
for The punc'itGl 1,aysncm nf the interest N
S"ci loan as may he effected upon The cred
il OF the State under The provisions OF this
Act; and also for The ultimate payment ui
the principl Mercyf.
nj. |, shall be the duty OF The President
and Directors OF the Bank of the State Of
| South Carolina. To cause 10 be opened in the
books Oi the sad Bank. an account, in which
they shall debit themselves with the profits
arising out OF the additional capital created
out OF the two millions loan aforesaid, for
the year ending on the first day OF October,
in the year oi our Lord one thousand eight
hundred and thirtv-n nine, ard rM all Mc
future prpMS n The sad !On,i, as Me same
shat hcrMiicr tc annually dcc!ared; which
SGm tuM, WHh HS annual dccumuiutiomS,
shall b" considered Soiemniy pledged and set
nFar TOR the payment ui The interest on The
SAIL l0nn, and The Gnn! redemption Mcre,J;
and il shall be the duty of the President and
Directors of the said Bank. annually to re-
port to beth branches OF the Legislature the
exact state OF that fund
NIL When the prDfis Of the said Bank
of the State of South Carolina shall have
paid the interest OF certain stocks and re-
deemed the said stocks, for which they have
heretofore been pledged and set apart, The
! sad prOHiS shall 0l<0 hc considered SOiCnnfY
F., picHgcd and SCI apart for The payment 4f he
| interest on TIE sad HQn, aHH The final re-
demptt"H Mcreot.
We have placed III italics those parts OF
the Act, which bear mos, directly upon the
question we have stated; and il does seem
to Us, without going further, ,hut the Sd,
10Th, lth and 18th sections are conclusive
Of the question. The Act was undoubtedly
laid before the creditors, When they loaned
| their money. They saw in It's 10th section
direction to the Bank 10 make proper pro-
visions for the punCtual payment Of the IN
| tcrst; and also for The ultimate payment of
the principal What else could they con-
! ciudc, but that the Bank should continue to
exist, until the money which they loaned,
with the interest thereon should be paid TO
! them? They saw also, in the Sd and llh
sections, that the money, which they were
! about to loan, was to become a par! of the cap
| itnl Of the Bank: and that said additional capi-
tai, and ''ils annual nccumulations," were
socnnly pledged and set apart, as hank cap
Mi anu bank profiS, "for the payment Of the
interest on the loan and the final redemption
thereof" And they further saw, in the
! 18th section, that the proftS Of the other
capital Of the Bank, were also in certain
event, sulcmnly pledged and set apart, for
the same purpose. In our mind it is too
clear for argument that those sections con-
tain pledge not merely of the fund which
constitutes the Bank capital and the profits
thereof but also of tho Bank itself.
But let us go further. Tho lst section
of the Act it will be observed, directs tho
| Governor to issue "thc bonds or contracts in
! such form, as shalt be most cntctual in