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

to assist various manufacturing companies by
loans, all of which may have been made upon
just views of expediency; but certainly are
much bolder measures than could have been car
ii.d through the Constitutional Legislature of
the State
Allthese transactions were made by the Board
OF Directors; and as far rs that is a check, had
the benefit of it. But there are other transac.
tons of the Bank, in which the State may be in
vovcd to the extent of thousands, without even
the intervention of the Board of Directors. The
whole issues ofthe Bank are under the control
of the President and Cashier, and by any com:
bination between them, or even at the will Of
the Cashier alone, the circulation of the Bank
may be increased to any extent he may please.
1t is unfortunately too true, that both Presidents
and Cashiers have been found who have betray-
ed their trust; and although l have no doubt
but that the present officers of the Bank are per.
fectly honest, yet in establishing great nation.
al institution, we must take it for granted that
it will be managed by men of like imperfection
with those who have managed other institutions.
1t is within the knowledge of many who hear
me, that two of the private Banks have suffered
considerably by notes surreptitiously issued
through the fault or negligence of the Cashier.
The same thing may happen with the Bank Of
the State to any extent, and the people are thus
exposed to danger which few people are
aware of, and which unfortunately cannot be
discovered until many years afterwards-possi.
bly, not until the Bank shall have been woundup.
g. In the third place, it will appear that the
Bank of the State is the real Treasury of the
State, and as such, it violates the spirit Of all
those guards which the Constitution in its wis,
dom places around the peoples Treasury. -,
From what has been alread said, it is appa,
rent that much the larger portion of the funds Of
the State is in the keeping of the Bank. The
Capital of the Bank, the Sinking Fund, the Sur
plus Revenue, the Dividends from the Railroad
even the general taxes themselves, all fall in.
to the hands of the Bank, and are administered
bv men who hold office indefinitely, frequently
for life. When we consider the jealousy which
the Constitutions exhibits on this score, it renders
the Bank still more anomalous. BY the lst
Section, 9Th Article of Constitution, the Treas.
nrcrs of the State are to hold their offices only
term. The Constitution evidently thought it
unsafe to place the public moneys in any hands
for more than four years. But in the Bank,
where ten times as much public money passes,
the officers remain for life. The President and
Cashier are reelected rs a matter of course {;
and when Director is changed, it is merely
because either some more urgent competitor has
iostled him from his place, or because he is tired
ofthe continued struggle to keep himself before
nominating Committee.
So too the State Constitution, Article Sec
ton II, enacts that no money shall be drawn
from the Treasury, but by the authority. of the
Legislature. But from this other Treasury,
money is drawn at the will of the Directors, to
buy houses and stocks, and to pay salaries at
their pleasure. And what's infinitely more dan.
gerous, money is borrowed on the public faith,
to be loaned out to themselves or their friends,
at their own absolute discretion, without check
or accountability.
Icannot exhibit this extraordinary feature in
our State Institutions in a more striking light
than as it is depicted by one of the warmest sup.
porters of the Bank, the late Comptroller Gen.
eral Elmore, the brother of the present Presi'
dent. "The State (he says) presents the anon.
ally in finance of placing not only large Bank.
ing Capital but the whole of its Treasury, in
the hands of Il few individuals, with no other Sc.
curly lot LnclT lltHlul aliu uOiicSt management
than their individual character. Character is
certainly one of the best securities which can
be obtained for the discharge of public duties
but can see no reason why others should not
be added. 1t is in vain to say, until the human
character undergoes thorough change, that
you can fill the direction of your Bank with in.
dividuals who will serve the State from disinter.
ested motives alone; and it is question yet to
be settled, whether you are not paying your Di
rectors the highest price for their services, with
out possessing corresponding security for their
fidelity and honesty. 1t is known to be the prac
tce of the Bank, to extend to each Director a
credit to considerable amount As the State
gives no compensation for the discharge of this
very important trust, this cannot be considered
unreasonable But it is to be feared that many
bad debts may be contracted thereby, and the
State become loser to an amount which would
have exceeded proper direct compensation to
the Directors" &c.
4. Should then an Institution having such
powers, and governed in this manner, be con.
nected with the State! Sure y it must be OBJ,
yious to every one, that if the Bank of the Uni.
ted States was dangerous to the whole Union,
a Bank of the State must be douhly dangerous
to the people ola single State. The whole pub.
lie Treasury is equally involved in all the casu.
alties of Banking. The provision made for pay.