The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1850-03-05
SPEECH OF MR.. C. G. MEMMINGER,


The following Resolutions, offered by Mr.
Memminger, with sundry others offered by 9TH
er members of the House of ofRepresentatives, on
the same subject, were under discussion of Com
mittee of the Whole, on Saturday, 9th Decem-
ber, 1S4S:
|. Resolred. That it is unwise and inexpedi-
ent for State to engage in Banking, or to SUBJ
iect its resources to the casualties of Banking
operations
2. 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. Resolved, 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 cha ter.
T. Resolved, That Special Committee Of
each House be appointed, to devise and report
at the next session, the proper measures for car
rying into effect the last Resolution.
When Mr. Memminger addressed the Com
mittec 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 imputing to the op-
ponents of the Bank motives Of interest, or a
desire to iniure those who conduct its affairs
On the first point, have only to say, that there
is no action which the State cal 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, iuasmuch 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 in 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
upon me. l find myself at a 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 Il close, or whether
its Charter should be renewed! Those who
think with me, are of opinion that the union Of
Bank and State is All unsound and injurious
connection, mutually conupting and mutually
productive of evil; and that as wellave succeed.
ed in dissolving this connection in the General
Government, we ought equally to strive to pro-
cure its separation from the State Government
In orderto devclope the subject more fully, it
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, and to
show how far the State is involved in the con-
Germs of the Bank.
The Capital of the Bank consists oftwo dis
tinct parts. The first part amounts ut present
to 81, ,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 orig.
inally chartered 10 this must be added what
is called the Sinking Fund, amounting at pres
ent to S54l ,4l6 90; which is made UP VI The
annual profits the Bank, remaining after pay.
ing the public debt and also of the SUN of $780,
600 received from the Surplus Revenue of the
United States. These sums, amounting to ST.
664,7 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 bor-
rowed for the ostensble purpose of rebuilding
the City of Charleston. Only about one million
of this was ever needed to be lent out to the cit
izcns 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
developc. 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
Al