The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-11-29

fANAN1E AMI nANkS- SbsfhNSAOr Vt ISAH 80
hETs-FEDERAL RELATIONS -KANsAs-T THE
MAINE AND CONNECTICUT RESOLUTIONS.
Gov. r. +. w. Allston of South Carolina, sent his
annual message to the Legislature on the Gath inst.
We give below such extracts from the document as
| ere of general interest =
| The financial condition Of the State is sound,
though at the present moment necessarily somewhat
| embarrassed Without including the surplus reve-
nue. 81 O5l %22 co. which is held on deposit the debt
Of the State amounts to So 05s6sl SO, drawing nte
rest at rate OF from to per cent The taxes re-
turned for the last fiscal year are $493, la So The
ordinary annual expenses do not exceed 1850 900,
but the payments out OF the treasury the past year
far exceed that sum. For particulars refer to the
| report of the Comptroller General
The same report will present the monthly exhibit
of the condition of the banks. Within ten years the
! number of banks has been increased to twenty,
which are returned monthly, with an aggregate
| capital Of $l4,S37,64l rs, with q specie
| basis in September of 1899 1899 rs, and line of
domestic exchange amounting TO SIC, 265 $50 49, OF
the last sum six Of the banks in the commercial city
OF Charleston, having capital OF 49, 642 25 re-
turned for their part only $3,027S57 49, The CAPT
| tai Of the ten banks first named in the exhibits
amounts TO $40 GAP rs; their circulation for Sep
TENDER was s. 1888 1928; their specie hand for the
| same month"; 1897 949 Is. The circulation of the
same banks, as shown in the month of October, was
80 806 504 and their specie amounted to 1896 1893 49,
The ten banks last named, having together capital
of 1000 600, returned for their circulation in Sep
TENDER So us 344; specie on hand $40l 450 81 The
circulation of the same banks az shown in the Octo
Der exhibit, was $3,2lS,3l5 so; specie on hand,
| 1867 .S07 III.
In the first half of the year was pleased to learn
that the bills OF the principal banks in South Ca
| rolina constituted still portion of the most APP
proved currency in the West, and were available
also to travellers as far north the city of New
| York. Those of some of the smaller banks, it
! was said, were sometimes found, at certain points
| in the Western States, circulating too freely and
in too great numbers. In granting charters hereaf
ter think it would be well to confine the banks to
dealing in exchange, discount and deposit. The is
of bills for currency should be the prerogativc
OF the Bank of the State, which, in its turn should
be denied the privilege of discounting notes or deal
| ing in domestic exchange. The corporations which
demand circulating medium for their business
should apply to the State authority for the same
depositing onethrd of the amount desired in specie
and the remainder in satisfactory securities to
the public Of the soundness and convertbility
| of mixed currency. This suggestion is made
the suppostion that the State will adhere to the
Bank of the State as its fiscal agent, not because
prefer it as such. Unless some such modification of
the system be adopted am of opinion that it would
conduce to the soundness of the currency, and more
to the interest of the whole community, to have the
banking business of the State done by six corpora
tons, instead of twenty.
| recommend that the laws against usary be re-
pealed leaving the legal rate of interest at per
| cent, where no contract is made. Acknowledging
the principle of this reform sound have hither
TO, in another capacity refraned from pressing it,
believing that the public mind should be prepared
for it by full discussion. | am now of opinion that
it should longer be postponed. Money is entitled
a
dity; and the owner of money should not be denied
the privilege of lending it except through the artih-
cal, and sometimes costly medium OF corporation
Banks too, should be allowed to take for the of
money loaned, whatever it is worth in the market,
and be thereby relieved from the tempting facility
of eyading the law III order to increase their profits
Regarding the recent revulsion in finance and the
currency, | will not attempt To enumerate its
causes, but will venture to direct your attention
not so much to the banks, to the system OF bank
ing system which sanctions the issue of paper
money to so large an amount, leading to
inflated credits inflated prices extmvagant habits
of living and reckless speculation, may be supposed
calculated To produce crisis sooner or later The
unhappy sinking of ship with bullion from Califor-
MIA or any event sufficiently exciting to create a
monetary panic, enough to precipitate it. II has
had the effect to parayZe the arm OF honest indus
try, wherever labor is opposed to capitalize depress
the opening market for produce, and to impair the
confidence between man and man. The banks in
this State were affected by the common panic, and
felt the pressure severely. Some OF them yielding
| 10 its influence have suspended specie payments
| The suspension Of specie payments by a bank is
| failure 10 redeem its notes on demand-a forfeiture
Of it, promise to pay In gold silver current coin,
the fun value Of every bill issued from its counter-a
promise which is based the privilege granted by
the State to issue bills and to circulate them
rency. However II may be supposed TO afford pre-.
sent relief to the business interests of the country.
which, unfortunately, are 80 wound mp with the
hanks TO suffer inevitably from the contraction of
their credits and their stringent demands, il il de-
moralizing in its tendency.
The banks of the State, with which am at all IA
miliar are well administered. Several of them have
bravey withstood the shock, and prepared to do
a legitimate business usual; and, IL is believed,
are solvent. If, however, there be dc.
pendent on the banks and brokers Of New York
10 fail in their pledges To the public when the
Northern banks fail it is their misfortune TO have TO
answer for the sins Of Others well for their
Encouragement. The consequences TO the quiet,
uninitiated and laborng community are alike dis
trust and loss leading TO want and suffering, too
often 70 moral ruin and crime. The State too,
suffers from the abstraction of coin and the depreca
ton Of credit in the sale Of her bonds both for build
ing the new State capitol and for aiding the con-
struction of the Blue Ridge Railroad cor the for
mer signed 400 certificates on the lth of March,
and Of the latter, 100 ON the ith Of May)
Whatever the exigency, IL will be long before
| hdence IL generally restored and commerce can
move TRANQUILITY and safely in its usual channels,
| though not near 80 long, trust, as in 1887 Then
the suspension in Charleston took place in May, and
lasted Is months; ID occurs in October, at the
opening Of business season, with fair Though not
large) crop Of cotton and rice hand the basis
Of commercial communication with capitalists Of the
/ home market, and Of exchange with Europe.
The moment OF excitement apprehension and
financial pressure IL not time 10 egslate respecting
/ the banks. The existing laws IL sound will be vim
dicatcd In practice; If otherwise, IL will be wise To
/ repeal or modify them when the public mind IL
! calm, and commercial confidence shall have been
restored In enactng statute law, the statesman to
/ whose wisdom and integrity the public welfare il
/ trusted, will not, for the sake Of doing something
when In position, yield either TO the crude sugges-
tons Of his own observation, 10 the outside in.
/ nuence ~ opinions created by undue excitement on
the hand, or by interested individuals corpo-
\ rations on the other.
| Meanwhile. may not omit to invite attention 10
! the admirable operation OF the system Of finance,
separate from banks long since adopted by the Fede
raj governmental sanctioning which, that govern
mcnt has entitled itself TO the respect and confidence
/ which are due 70 superior wisdom and foresight.
During the reccst confusion and consequent panic
in commercial circles Il has done much to break the
| crash upon the people of the unstable framework
| erected upon the credit system, and TO save them
| from the full effects oa the collapse Of inflated
| cank currency.
not injured by such commissions, which must reduce
prices But Of all classes the least liable TO be af
fected by them II the planter, who IL happily out Of
deht-who properly drains and Ilows deep his soil,