Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1854-12-06

and eight thousand six hundred and five dollars
and iii!y cents (S7,3OS, ,605jO)
During the year, twenty-five thousand dollars
(S25 ,OOO) have been applied 10 the reduction of
The State debt.
BY comparing the balance in the treasury on
the lst Of October, 1853, with that of Il CORES
ponding period during the year 1854, it will be
perceived that there is Il falling off of cghty-onc
:, thousand four llundlcd and siXiy.lhrce dollars
and five cents, (SSl l,4G3.05) The income de-
rived for several years from stock i'll the South
Carolina Railroad Company will be withdrawn
from the treasury, in consequence of lis exchange
for stock in other railroad companies. On Inc
other hand. there is reason 10 suppose that the
cash recci pts from taxes will considerably en-
! coed those of the last year In the Upper dvi-
sion alone the receipts from this source exceed
lhnsr of The year previous by the sum of eigh-
teen thousand five hundred and thirly-righl dol
lars and sevenly-lwo cents, [SlS 53S 72)
In June last received from Mr. Anthony
| Hyde, of Washiugt0n,a treasury draft for scvrn-
Teen thousand seven hundred and cighly-siy
dollars and five cents, (Sl7,7S6O5) which have
placed in the bank to the credit of the State.
This is portion Of the sum appropriated by the
| last Congress in satisfaction of claim made by
this State for losses sustained in equipping Il
regiment Of volunteers, in 1886, for the Florida
war Ii appears that there is The further sum
of fifteen hundred and cigIty-thrce dollars
! Isl $3.50 still due under the appropriation.
A charge of len per cent for commissions was
madc by Mr.. HYDE for collections, but did not
conceive myself authorized 10 pay it without
aulht riiy from The Legislature. Uniilihis qucs-
lion is determined by You, | have suffered The
fifteen hundred aud cighty-lhree dollars ($l $3.50
above mentioned TO remain in The United States
treasury, to Meet such compensation as you
may allow.
hcrcm ilh lay before you both Mr. Hyde's re-
port upon the case, and other papers connected
herewith.
At the last annual meeting Of the Legislature,
in connection with The Comptroller General,
VA, directed bv Act, to ISSUE bunls of the State
to the amount of two hundred and fifty thousand
dollars ($259000 for the purpose Of forward
ing The construction of the new State Capitol
Tae bonds were accordingly prepared under the
Immediate auspices of The President of The Bank,
We're duly executed, and offered in the market
iur sale But, owing to monetary difficulties,
there was little or no demand for such sscnri-
lies, and but portion Of them were disposed al
Under these circumstances, after consultation
with the President of tic Bank, il WIS deemed
advisable for him 10 proceed 10 New York, and
ollcr them in thar market There he found sim
liar difficulties, somewhat Increased from the
fact that the bonds were nude payable ut the
Safe Treasury, and not in New York, as was
preferred.
He nevertheless effected Il sale to the amount
of Sl30,00O 90
Upon which premium WAS re.
crrcd nett Of 1888 6l
There remain unsod bonds to the
amount of 10000 90
OF these there are lodged IN the
Bank of the State 10000 90
And in the Bank Of the Republic,
New York 100000 90
In connection with this statement of our fnan-
cill affairs, desire, with great difference, to sub
nit few Suggestions wi,i regard 10 The present
condition of banking operaiiuus their effect up
ON the money market, and upon the people and
business Of The State.
The Legislature, two years since, acting un-
der what appeared then 10 be 4 gcneraldemand
for increased banking facilities, established
number of new banks thereby enlarging the
bankiag capital TO the extent Of two millions
six hundred and cighiv-tive thousand four hun
drcd and sevcn,y.fve dollars. (S2685,475.)
The impression seemed generally to prevail That
this step would make money more abundant,
and that the Increased want of it, both for COM
mcrcc and internal transactions, would be am
py met Those who dealt in stocks, and in
foreign and domestic exchange, joined the agrl-
cultural interests in the demand :and the result,
is has been clearly demonstrated by experience,
has disappointed the expectations of both.
Inscad OF Increased discounts by notes in u Pc
riod of unusual difficulty in money affairs. and
an increased amount Of money in ccua;on
the discounts are less lhan they were prevlorS
10 the establishment of the new banks, and The
want of money greater than ii any period since
the commercial DISASTERS uf 1887. Both those
vino deal in stocks aud exchange, and those en-
gagged in agriculture, are alike cIamnrous for
s"me legislation to rc'nedy existing pecunary
evils.
1t is proper to inquire into the causes which
have led TO these results. and to endravor TO
suggest Il remedy. which shall do as briefly us
possible.
1t is well known that, prcvions to the creation
Of the new bauks at least one-lhri of the capi-
| tai and credit Of The old banks w;ls employed
beyond the limits Of the State, which would 60
20 show that even iIen there was too much bank
Ing capital With the recent increase of it, the
amount sent abroad is greatly enlarged, and
perhaps is equal 10 half of all The banking capital
in The State: and whilst Stockholders are benr-
| fitted bv This mode of operation, the wants of
the great mass of the community #rG nc. lrcied.
| 1t is certainly to be expected that the money Of
!hc banks will be employed in those places from
which the largest per ccniagc in business Is 10
be derived, and that where The interest ut home
is restricted t" six per cent, capital will 3"
where ten aud fifteen per cent. IS 10 be had
The utter failure Of banking in Mississippi.
Alabama. and Florida opened new and eylcn-
sive field for TIE employment of bunk capital;
and the reputation OF The banks of Son:ll Caro-
Ina, and the credit which is attached tn their
Issues in those States, together with the large
per ccntage 10 be derived there, were strong
temptation TO our banks TO send their means
abroad The result Of their operations was
evidenced bv largeiy-increascd dividends, which
for several years reached six and eight per cent.
per annunr, and more recently went as high rs
len to fifteen per cent. They invest large
amounts in those States in the purchase of bills
payable in New Orleans, Mobile, and other Wes-
tern cities, and when they arrive at maturity the
! funds are rc-nvrS,cd in bills payable at The
/ North or in Europe. These fund, cc''rc chief
/ " in New York. to the extent of their circula-
! tion in the West, where they draw interest, or
aS is generally the case, are Invested IN South
ern paper. All these changes afford Il large per
crillage on the money in use, and it is therefore
not surprising that the citizen cannot borrow
money ut home from banks at the rate Of inter
csl fixed by law. 1t is in this way that in the
past ciyht months il is supposed that the agrrc-
gate amount OF exchange operations more than
equals loans on nnlrs and that the sum of notes
discounted is actually less than it WAS before The