The Lancaster ledger. [volume] (Lancaster, S.C.) 1852-1905, 1854-12-06

During period that those States already
named banked for themselves, and furnish
ed supply OF paper currency to their own
citizens, the banks of this State were pay
ing only live to seven per cent. per annum
in dividends, thus showing conc clusively that
u very large portion Of our banking capital
was, and is, diverted from the uses Of our
own people to supply the financial necessi.
ties OF the people Of other States, l shall
not here refer to the hazards 10 banking,
and other Incidental objections to such a
system, where the field of financial OPERA
tons is so remote and uncertain. My ob.
ject is to state such facts as will form the
basis of Legislation to remedy former err
rors, satisfy the public wants, and correct
the present evil rs far as it may be done
with safety. But upon this head great
difficulty presents itself as to n mode which
will not embarrass the community, affect
the value of property, or interfere with pub
lie credit
Undoubtedly, the power rests with the
Legislature to alter Or amend Bank Char
ters, They are no longer independent, rs
formerly, but are in all respects subject to
your revision. To use that power, how
ever, unless for the strongest reasons. is
always questionable, and sometimes dan
gerous, as evnccd by the financial history
Of other States, particularly in the West.
The law regulating banks in Massachu-
setts " as intended to be an eifectut check
upon the abuses practiscd by them That
law restricts them to operations at their own
counters, denying them the privilege of es-
tablishing agencies abroad. Ii such n rule
is never evaded, it may be attributed rather
to the honesty of officers than to any want
of financial skill. An evasion of the law
is rendered easy by making loans to agents,
who shall stipulate to circulate tho issues
of banks paying n fixed SUN for their use !;
obig, sting themselves to make returns at
the time agreed upon, and stipul ,ting also
for the description of assets to be received
by the banks in return. 1t is of more than
doubtful policy to pass any law which can
be so easily, rendered nugatory. Besides,
If complied with, manifest injury would re-
suit to portion of such Institutions
Banks in this State usually transact large
amount of their business through agents,
and are dependent upon them for supply
of Northern exchan .5e, whic" can only be
obtained in the seaports. To prohibit the
use Of agents to the country Banks would
seriously embarrass them. Without ex
change, they could not supply the wants of
the interior, and their issues would, there
fore, be deprecated in the scaports thus
giving to Banks there looted q great ad-
vantage in business.
In questions of so much complexity as
those relating to banking, it is extremely
difficult to point out a remedy for errors
which have presented to you, the evils will
in pai t, effect their ON cure. When Ala
bama shall have increased her private Banks
and thus supply the monied wants of her
| hn fp hi,,L IL,
feels, and is beginning to remed = Mississippi
aud Florida will follow the example In
that event, the teld of operation for the
Banks Of this State will be circumscribed
and Banking, having its business diverted
from those channels, will retain in the State
greater abundance Of capital.
| There is another measure which is a still
more effectual remedy for the scarcity o
money now existing, Notwithstanding tn.
excess of Banking Capital in the State
which is the abolishmrnt Of the usury laws
( S'"rV'Is'"" "iS'i vac I'usnHo. L. u
Vided laws do not mako investments inse
cure, the deficiency of mouey in one place
is certain to be supplied from another, wher,
as it becomes abundant, the rates of interest
are necessarily lowered.
There has always existed prciud;.,
against usury; and it certainly was to b,
condemned " here the coin of a country was
the OILY circu ating medium. and money
was boarded for loan at exhorbitant rates
of interest; thereby placing it in the pow.
er OF such individuals rs possessed il, to a
certain extent to hold his neighbors' proper.
ty at his mercy. But since that period, now
that the commerce of the world is carried
on by the credit system and bills of ex-
change, and promises to pay, to large ex.
tent, are the circulating medium, money be-
comes valuable in proportion as the exigen.
cies or prosperity of trade make it So
Money, like everything else, ought to have
relative, not a fixed value.
In this State the Usury laws are rarely
enforced, and in mum berless instances ara
altogether dsregarded. Large sums of
money are constantly being invested at ex-
orbitant rates of interest. In New York
the paper of citizens Of the State is fre-
quently purchased at a very large discount.
1t often happens that the best is thus forced
OF by the impossibiIity of procuring money
AT home, with the necessity of obtaining It
either TO meet stringent present engage
ments, or to operate in profitable invest
ment
The discussion of this measure is not n
new one. Its adoption is urged with great
=" VI bho bobstttS VI JUe Union,
and the change is destined eventually to bs
made. If it be effected in ncighborinu
States, We cannot avoid it here England,
that wise nation, and especially wise in her
commercial policy, has already abolished
her Uaury laws, gradually, to be sure, in the
hrst instance only affecting her CONNER
ciIl transactions but the change is now
complete, and is applied to all her business
without opposition to any Of the institu-
tions or vested interests of the State, have
placed this subject before you for conside-
ration. have no desire to urge it beyond
that point, and leave the ,pestion to be de-
cidcd by your intelligence ind judgment.
herewith submit to you report from
the Comptroller General, touching the state
Of the records of his Office, which is worthy
OF your con nsideration. The condition Of
the papers and documents referred to, seem
TO require some attention and labor for their
more complete preservation and the terms
upon which he proposes to have them prom
eriy arranged, indexed, and copied, where IL
Is necessary, appear to be moderate and
just
Upon referring to the Revolutionary and
Colonial records, find several chaams
which should be filled up, in order to make
AIUNaaag -.