The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1850-03-01
SPEECH OF MIR. C. G. MEMMTNGER,


The following Resolutions, offered by Mr.
Memminger, with sundry others offered by 9th
er members ofthe House Representatives, OH
the same subject, were under discussion OF Com.
mittee of the Whole, on Saturday, 9th Decenf.
ber, lS4S: =, -
Resolped. That it is unwise and inexpedi.
eut for State to engage in Banking, or to sub.
iect its resources to the casualties OF Banking
operations.
9 Resolred. That the Bank Of the State is
founded on this erroneous policy, and exposes
the public Treasury and the public faith to the
hazards incident to Banks.
g. Resolued, That it is inexpedient to rechar.
ter the Bank of the State, and that measures
ought now to be taken to wind up its concerns
during the period of its present charter. :
T. Resolred, That Special Committee OF
each House be appointed, to devise and report
at the next session, the proper measures for ear.
rying into effect the last Resolution.
When Mr.. Memminger addressed the Com.
mittee to the purport Of the Speech which fol.
lows:
MR. CHAIRMAN: intend to discuss the ques-
ton before the House, as one altogether Of State
Policy; and that may not be led aside hereaf.
ter by personal issues, shall dispose at once OF
all such considerations here, at the commence
ment ofmy remarks.
The force of what may say is sought to be
broken in advance, either by mputing to the op.
ponents of the Bank motives of interest, or q
desire to injure those who conduct its affairs--
On tie first point, have only to say, that there
is no action which the State can take in rela'
ton to any Bank, which can cause me to gain
or lose to the extent of five hundred dollars-
The second imputation can in no way apply to
me- inas,nuch as lifetime passed near each
other, has been one of continued kindness and
good feeling between myself and the President
of the Bank These relations have been pre-.
served through the shocks of party excitement
and contention; and at this moment, the only
pain which feel in entering upon this discus
sian, is, that it must produce trials and difficulty
to friend, whom i'll his present state of health,
Iwould gladly have saved from this addition
But events over which have no control have
forced this subject upon us. ! have neither
sought nor desired the unenviable task which is
upon me. / find myself at post which the
State requires me to maintain, and have no
alternative but to discharge my duty.
The great question which has been brought
up for our consideration by the Message Of the
Governor, and by the various Resolutions sub
mitted, is, whether it is for the interest Of the
people of South Carolina, that the Bank of the
State should be brought to close, or whether
its Charter should be renewed! Those who
think with me, are of opinion that the union OF
Bank and State is an unsound and injurious
connection, mutually corrupting and mutually
productive of evil and that as we have succeed.
ed in dissolving this connection in the General
Government, we ought equally to strive to pre-.
cure its separation from the State Government
In order to devcopc the subject more fully, il
will be proper in the first place, to explain the
connection which exists between the Bank of the
State and the State of South Carolina, aud to
show how far the State is involved in the con.
Germs of the Bank.
The Capital of the Bank consists of two dis.
tinct parts. The first part amounts at present
to $l,l23,357 90; and is made up of various
portions of Bank Stock and other funds which
the State owned at the time the Bank was org
inally chartered TO this must be added, what
is called the Sinking Fund, amounting at pres.
ent to S541 ,4l6 90; which is made up of the
annual profits of the Bank, remaining after pay.
ing the public debt, and also of the sum Of 800,
600 received from the Surplus Revenue of the
United States. These sums, amounting to 81 ,.
664, ,773, are entirely the property of the State,
and constitute the real banking capital Of the
Bank
But besides this, there is a second part, COM
posed entirely Of Borrowed Capital, which has
been placed in the possession of the Bank, and
is called part of its capital. This consists Of
about two millions of dollars, which was Dor.
rowed for the ostensible purpose of rebuilding
the City of Charleston. Only about one million
of this was ever needed to be lent out to the cit
izens of Charleston, and the remainder has been
used by the Bank in its business operations
The money was all borrowed on the Bonds of
the State, and consequently the State Is answer.
able for the whole of it; and any loss which
the Bank may make. must of course be made
good by the State The funds therefore which
the Bank is using, and which either belong to
the State, or are borrowed on her credit, amount
in round numbers to three and half millions Of
dollars.
There is still further connection between
the Bank and the State, which it is necessary to
deveope. BY the charter of the Bank the State
has pledged her faith for its support, and in con.
sequence thereof, the State is liable for the is-
sues and deposites of the Bank. At present