Camden journal. [volume] (Camden, South-Carolina) 1852-1852, 1852-11-26

| well ana DlSnOp Elh0tt, WHO, allcr cafelul cA-
animation Of them. recommended the plan which
l have done.
The Bank of the State, according to Report
made to me by its President, is in highly pros
porous condition. The capital is 100000 more
than last year.
The capital in use may be set down at $3, 100000
Deduct Fire Loan Bonds 299,5OO
3,l52,500
The profits are 3O0,405
Deduct Interest on Fire Loan Bonds 29,6S0
Leaves .270,725
which is about per cent on its capital.
The Charter of this Bank expires in 1856.
The short time it has to run renders il proper
that you should consider the question of its re
charter at this Session. think there are many
reasons why it should be re-chartered. This In
stituton has proved itself to be highly useful,
and safe as fiscal agent of the State, and has
aided materially in sustaining our people during
the severe monetary crisis through which we have
passed. AS all human institutions are imperfect,
no doubt but some instances of mismanagement
have occurred in the conduct of its affairs. Ibe
lieve the only mismanagcmcnts that has been COM
planned Of is ALI over indulgence of some Of its
debtors have not been able to learn, however,
that the Bank has sustained any losses from this
cause In some instances long indulgence has
secured the final payment of the debt, and at the
same time enabled the creditor to secure COM
petence to his family, when the sudden calling in
of the debts would have resulted in heavy losses
to the Bank, and brought ruin and bankruptcy
upon the debtor.
1t is much more creditable to the management
of this Institution that it should have erred in
this particular than that it should have proved a
relentless CREDITOR by forcing sales of property at
ruinous sacrifice If any real abuses do exist,
they ought most certainly to be reformed. The
existence of them in system is no proof that
they are incident t. it, or that the system itself
is bad one.
The Charters of many of the private Banks
are about to expire; and in all probability appli-
saSR vii Rs pa4H a 9Hg f u tHe tfHapfPya PS9 e i f e
Banking system, were the question Of its intro
duction amongst us for the first time made, one
thing is certain, it has so completely interviewer
itself into all our habits of business, that to aban-
don it now would greatly embarrass the CONNER
cial interest, and probably bring ruin on the
country. 1t perhaps would be wise to re-charter
them all, yet some check ought to be placed upon
them. know of 10 other better than strong
Bank of the State. ... g..r.s...
Another argument in favor Of its recharter, is
the amount of taxes it saves to our citizens.
During the past year, as have already stated,
its profits have amounted to S279, ,725, which, of
course, has relieved our people of that amount of
R,,t oil rtl, IL,
should renew its Charter, the fact that the honor
of the State is pledged to it should have greater
influence with you than anything else When
the Fire Loan Bonds were negotiated in England
by Ex-Governor McDuifie, the profits of the Bank
were pledged as security for the payments
Thus it would appear that refusal to re-charter
this Bank at least until these bonds are lquida
ted, would involve a violation of the pledges, af
feet the credit, and tarnish the honor of the State
which every Carolmian should regard as sacred
as his own
Without making a positive recommendation
on this subject, suggest to you the proprety Of
considering at this time whether it would not be
wise under existing circumstances, to increase
the capital of the Bank Of the State. The great
increase of all kinds of business, caused by our
Railroads, calls for additional Banking Capital.
Some of the large manufacturing establishments
which have recently sprung up amongst us, have
been greatly embarrassed during the past sum-
mer for the want of Bank accommodation. In
fact, the complaint is very general on this sub
Ject. No doubt this state of things will produce
applications for charters for more Banks. Now,
a> the Banking system has proved so highly pro
ftabc, would it not be wise to appropriate n
large portion of it to the State, and thus in a
measure free our people from taxation.
But still stronger reason for an increase, is to
give it the power of acting as a check upon the
private Banks. They are certainly much to be
dreaded,if left entirely uncontrolled. When the
condition of the country is prosperous the temp
tation to expand theircurrency, and thus increase
their profits is almost irresistible. Such cxpan-
sions cause all kinds of property to assume a te-
titious value, and the whole country run riot in
the widest speculations. Scenes of great dis
tress always follow such periods as these, and is
generally FASTENED and rendered still more terri
bic by the sudden calling in of the debts, and
the contraction of the currency. In fact the
value of the property is almost entirely at the
mercy of those who control the currency of the
country. An expansion always runs it far be-
yond its value, and and contraction far below.
Even the price of our great staple can be affected
by the Banks refusing to lend money freely, and