The Carolina Spartan. [volume] (Spartanburg, S.C.) 1852-1896, 1857-12-03

10 Norman School, In order to learn the
nrt of teaching, this obstacle might ulli
matey be passed. Their teacher, thi.
year, is young man, formerly one of their
pupils, who has passed successfully through
the four years course Of the State Academies
1t would contribute materially to the pro
gress Of that kind Of education, which ha.
SO long been desired in Carolina, if thi.
young man could be sen, to an Arricultu
raj School in Europe for two years, and re
turn TO take charge of tho Lethe Schoo
four years, IN compensation.
FINANCE AND BANKs.-The financial con
dIi'on Of the State is sound, though at the
present moment necessarily somewhat em
barassed. Without including the surplu:
revenue, S1,05l,422 90, which is held on
deposit, the debt of the State amounts to
S3,o5s,Gsl SO, drawing interest at a rate
varying from to O per cent. The taxes
returned for the last fiscal year are si63,
Ia 55. The ordinary annual expenses &c
not exceed S350,000. But tho payment:
out of the Treasury tho past year far exceed
tn 1t sum. For particulars, refer to the
report OF the Comptroller General.
The same report will present the month
ly exhibit of the condition of the Banks
Within ten years the number of Banks has
been increased TO twenty, which are re.
turned monthly, with an aggregate capital
of S14,S31 ,64l 25, with n specie basis in
September Of $999,399 7G, and line OF
domestic exchange amounting to $40 ,265,.
go 9S. Of the last sum six ofthe Banks
in the commercial city of Charleston, hav.
ing Il capital Of SS,l37,642 % returned
for their part only s3,027,657 73. The
capital Of the ten Banks first named in the
exhibit amounts to $40, 0,l37, ,642 %; their
circulation for September was So, ,3S9, 500;
their specie on hand, for the same month,
S191 ,9l9 10. The circulation of the same
Banks, Is shown III the month of October.
was S3,SO6,50i, and their specie amount.
ed TO $i36, ,S93 %. The ten Banks last
named, having together capital OF ST.
100000, returned for their circulation in
September $3,7l5,344; specie on hand,
$l0l ,l50 81. The circulation Of the same
Banks, rs shown in the October exhibit,
was s3,2lS,3l5 so; specie on hand, $267,
S07 III.
In the first half Of the year, was pleas
ed to learn that the bills Of the principal
Banks in South Carolina constituted still q
portion OF the most approved currency In
the West, and were available, also, to
travellers Us far North rs the city Of New
ork. Those of the smaller Banks, it was
SAID, were sometimes found, at certain
points iii the Western States, circulating
too frecl y and in too great numbers. In
granting charters hereafter, | think it
would be well To coniinc the Banks TO deal
ing i'll exchange, discount and deposit. The
issue Of bills for currency should be the
prcrogativc Of the Bank of the State, which,
i'll its turn, should be denied the privilege
of dealing in domestic exchange. The
corporations which demand a circulating
medium for their business, should apply
to the State authority for the same, dcpos-
itlng onc-thlrl of the amount desired in
specie, and the remainder in satisfactory
securities, SO as TO assure the public of the
soundness and convertibility of a mixed
currency. This suggestion is made on the
supposition that the State will adhere to
the Bank of the State rs its fiscal agent,
not because | prefer it as such. Unless
some such modification of the system be
adopted, am of the opinion that it would
conduce to the soundncss of the currency,
and moro to the interest of the whole com
munity, to have the banking business of
the State done by six corporations, instead
of twenty.
| recommend that the laws against usu-
ry bo repealed, leaving the legal rate of
interest ut per cent, where no contract
is made. Acknowledging the principle of
this reform rs sound, | have hitherto, in
another capacity, retraincd from pressing
1t, believing that the public mind should
be prepared for it by full discussion. |
am now of opinion that it should no lon
ger be postponed. Money is entitled to
the benefit of n market rs we'll aS every
commodity. And the owner of money
should not be denied the privilege of lend
ing it except through the artificial, and
sometimes costly medium OF corporation
Banks, too, should be allowed to take, for
the use of money loaned, whatever it is
worth in the market, and be thereby re.
Ilcvcd from the tempting facility of eva
ding the law in order TO increase their
profits.
SUSPENSION OF SrECIE PAYMENTS Re
garding the recent rcyulsiom in finance and
the currency, will not attempt to cnumc-
rate its causes, but will venture to direct
your attention not so much TO the Banks
rs to the system of banking. y system
which sanctions the issue OF paper money
to so large AN amount, leading to inflated
credits, inflated prices, cxtravagant habits
of living and reckless speculation, may be
supposed calculated to produce crisis
sooner or later. The unhappy sinking of
a ship with bullion from California, or any
event sufficiently exciting to create 4 mo-
mcntary panic, was enough to prcciptate
1t. 1t has had the effect To- paralyzc the
arm of honest industry, wherever labor is
opposed to capital--to dcprcss the open
ing markc, for produce-and to impair
the confidence between man and man. The
Banks in this State were effected by the
common panic, and felt the pressure Sc
vcrcly-some of them yielding to its in.