The Lancaster ledger. [volume] (Lancaster, S.C.) 1852-1905, 1857-11-04
The NeWberry Mirror,

The Nrwberry Mirro1 thinks that our ar
iicle in reference to the Banks and suspen-
sion, published in the Ledger of October
cause we intima,ed the possibility that the
action of the other Banks assisted in bring
ing about suspension of the Bank Of the
State; second, because We admitted (Which
We are not aware that We did, '>rhe proba-
bility of our Banks becoming worthless and
unable TO redeem their notes )" and thirdly,
because ave gave credit TO the then general
Iy received impression that a suspension in
this State amounts to a forfeiture Of char
Ter.
The implied charge against some Of the
Company Banks was dcducibe from the
fact that they refused, at their counters, bills
upon the Bank of the State, and this led TO
panic and run npon the latter, Eringing
about suspension ut an earlier period than
would otherwise haze been necessary, ad-
hitting that it would have come 10 this ii.
nally, which is not clear. The Mirror may
be right in its opinion Gf such is its opn-
ion) that this vas not done with the view
of inj uriug the Bank of the State. Other
reasons, we know, can be assigned, though
it must be admitted that if they desired 10
injnrc this institution, they could not have
adopted course better cnloaatcd 10 effect
their object. 1t has not been shown that
they had good reason for distrus,ing the
Bank of the State, for when the latter sus-
pended, ii had one hundred and twenty thou
sand dollars Of specie remaining.
Our opinion then, as now, in reference to
the solvcncy of our Banks, in the event of
II general suspension, was that their assets
and securities were sufficient TO protect the
bill. holder against ultimate loss. i he could
afford In huld h,m in Tie ere'il he couLd not
sell hCn' at their par rdlue. They would be
gO0d, doubtless, rs that term is GENERALLY
understood, but whether rs available as gold
or silver, would depend greatly upon the
length Of time lha, the Banks remained un-
dc r suspension. But the Banks did not all
suspend, nor is it likely now that they will,
and those that did will probably resume
I'NHi'HN 1T IciiON
have been anticipated some weeks ago, from
the greater uncertainty which then en,ei-
oprd the affairs Of the country.
II was our purpose 10, if We did not, subsc
qurnlly correct the error into which We, with
others had fallen in reference 10 the penal
~ attached to suspension in this State
By an Act of 1910 the Banks forfeit, at III,
end of each month while under suspension,
Il SUN Of money, at the rate of five per cent
per annum, on the amouGt OF their notes in
circulation. The Act reads:
Every bank which shall suspend the pay.
ncnt Of current coin for its notes, or which
shall declare "A determination to suspend or
refuse payment of lis notes, according TO
their legal obligation i'll current coin, shall
become liable TO pay the State OF South
CaruIina ut the expiration of every month
nt:cr such suspension or declaration, sum
of money, at the rate Of five per cent. per
annum upon the whole amount of its notes
Which shall have been issued in circulation
at the commencement OF said month, and
shall continue to pay at the same rate at the |
end of every month, until the said bank |
Shall revoke its declaration, and shall law |
fully redeem its notes when demanded, nc. |
coIdlng to their legal obligation; the said sum |
of money TO be recovered by action Of debt |
in any court Cf competent jurisdiction"