The Carolina Spartan. [volume] (Spartanburg, S.C.) 1852-1896, 1857-12-10
Report of the Comptroller General.

| payments. There has been as usual nm ex.
iraordnary amount Of speculation in ADO
mestic Exchange" and in fact a use of their
funds generally by the private Banks in
every way injurious, and that will ultimate
~ prove disastrous, in the extreme, TO all
the industrial pursuits and interests of the
State. AT the commencement of the fiscal
year all the Banks in this State had an ao.
gregate liability of $32. .O39.23l AZ IN
meet tins liability their assets in specie were
Sl,3S3.2'3 73, with S7,SsG,222 30 in Do.
mest'c Exchange, and $275,l76 40 in For
e'gn Exchange, which the Banks claim to
be The equivalent Of specie, but which can
IN no emergency be made available. AT
the same time the amount Of deposits was
s3,253.S44 90, nearly three times the
amount OF specie in their vaults, and there
lore liable nj any moment TO he driven into
| suspension by their deposiiors, were a com
o'nailon iormed for that purpose. On the
last day OF Jnly the total liabilities Of all
Tue Banks was S33 5l9,lsS 54. with specie
only to the amount of 81 ,2o1 ,2S9 ~. with
circulation Of S7,S29,5 ,527 81, and depos.
lis TO the amount of S3,5iS.S37 IA. The
amount oil Domestic Exchange then on
hand was Slo,370,5Gl OIL, with but 1927.
494 Al of Foreign Exchange.
Again at the close Of the fiscal year (3oth
September) their total liabilities amounted
to s33 ,OO5,739 9l, with only s9o9,399 &c
| IN specie. They then had on deposit
S2,S3o,2Si 81, nearly treble their amount
oispecie, whilst their circulation was 81, ,lo5,.
40 5i, with Domestic Exchange to the
amount OF $l0,2G5,53o 9S and only s23l..
500 % in Foreign Exchange. This show
ing is truly alarm;ug to the financial inter
ests Of the State. The whole of our Banks
are in the hands Of mere spectators, who
wantonly disregard the teachings Of expert.
ence as TO safe banking, and hence our
Banks are at any day at the mercy of their
depositors- The Comptroller has SO often
brought these speculalions in exchange 10
The attention Of the Legislature to no pur
pose, that lac has despaired of seeing anv
wholesome law made 10 restrain them. He
| will not, however, shrink from n faithful
and fearless discharge of his duty, although
| he has not succeeded heretofore in arres,inp
the attention of the Legislature. The RENE.
dy is In your hands, and Notwithstanding
lie arrogant claim Of the private Banks,
that they have power under their charters
TO do rs they please, and are not amenaLle
10 the public for their acts, there is little
| doubt but tho courts Of the State would
soon bring them under the law of the land,
aud teach them to know that thoy are pub
lie institutions with certain private rights,
and that they are at least not omnipotent
! TO do evil. Whatever remedy you may, in
Your wisdom, apply 10 arrest their abuses,
IN the Judgment OF the Comptroller should
DO prompt, sharp and severe. If The full
measure of the punishment was meted out
10 them that they deserve, there is not one
| OF the new batch Of Banks chartered in
! 1862 but rs richly deserves forfeiture of
their chasters for the course they have pur.
sued, rs any political traitor ever meri.ed
! decapitatlon for treason 10 his country.
They have proslituted the former well tried
and legitimate system Of Banking in this
| State 10 one OF nero speculation in ex.
changes; or, in other words, they have
changed the Legitimate system Of banking
and their Banks into mere shaving shops:
and at their own counters, or through the
| agencies at every point in or ont of the
! State, where their own or other cilikeus' pa
| perS or sight drafts or drafts on time, can
! he bought on speculation, until their opera
! tons would shame the dcnizens on Wall
street IN New York. or the Bourse ia Paris.
There is no citizen in South Carolina more
! familiar with all the facts sci forth in the
I petitions, memorials arguments and entlea
/ ties made 10 the Legislature in 1852, 10 in.
duce that body TO grant the charters for
/ these institutions, than the present Comp
! trolIcr General, who was an actor and nc
! tive parIjcipa,or both II, Il member Of tLa;
body and as charged with tho interests OF
! those desiring Bank; and it is now in
! his power 10 give most minute and dc.
/ 'a'Ied account, or history, of the circum.
stances and facts under which they obtained
! their charIers-not one Of which has per.
formed the functions for which they were
created, or redeemed the pledges made 10
/ obtain them. They are not, aud cannot he
called. Banks Of loans. deposits and di,
counts; but arc mere lucksierS for paper
shaving, under cover and foum of dealing i'm
exchanges. The words "Domc~tic Tx
change should bo s.rilen from Tho form ot
/ their monthly report, to the Comptroller
and those OF shaved paper substituted
therefor. They should DO compelled 10
declare every dollar Of their profits in quar-
tcrly or semi annual dividends. and Tie
words "rc~orvei profits" 10y which they
conceal from many of their dupes ,hc
enormous profits they aro making. stricken
nom their statements. They should br
compelled TO keep al least one dollar il
specie for every thrco dollars ,hey have it
circulation, and no private Bank should bC