Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1857-12-19

State government into bank notes, without
reference to the specie required to redeem
them. However, valuable these securities
may be in themselves, they canuot be CON
vcrted into gold and silver at the moment
ofpressure, as our experience teaches, in
sufficient time to prevent bank suspensions
and the depreciation of bank notes. .eia
So In England, which is to a,considerable
extent paper money country, though vast
Iy, behind our own in this respect, it was
deemed advisable, anterior to the act of
Parliament in 1914, which wisely separa-
tod the issue of notes from the banking de-
partlnent, for the Bank of England always
TO keep on hand gold and silver equal to
one-third of its combined circulation and
deposites. lf this proportions was no more
than sufficient to secure the convertibility
of its notes, with the whole of Great Brit
ain, and to some oxtent che Continent of
Europe, as a field for its circulation. rem
sdering it almost impossible that a sudden
and immediate run to n dangerous amount
should be made upon it, the same proper
'tion would certainly be insufficient under
our banking system. Each of our fourteen
hundred banks has but limited circum-
ference for it's circulation, and in the course
Ola very few days the depositors aud note
holders might demand from suoll a bank a
sufficient amounttin specie to compel it to
suspend, even althoughit had coin in its
vaults equal to one-third of it's immediate
liabilities. And Yeti am not aware, with
the exception of the banks of Louisiana.
that'any State bank throughout the Union
has been required by it's charter to keep
this or any other proportion of gold and
silver compared with the amount of its
combined circulation and depositcs What
has been the consequence? In a recent
report made by the Treasury Department
on the condition of the banks throughout
the different States, according to returns
dated nearest 10 January, 1857, the aggre-
gate amount of actualspecie in their vaults
is iS5S ,349, 1873 of their circulation S214,-
{11S, 1922, and of theirldeposites, $3.50, 1851, :
l362.s .ssqc E.F s.al.1.,I .t,.o IL
Thus it appears that these banksin the
aggregate have considerably less than one
dollar in seven of gold and silver, compar,
ed withthoir cireulationahd depositcs.f 1t
was palpablc, therefore, that the very first
pressure must drive them to suspension,
and deprive the people of a convertible cur
rency with all its disastrous consequences.
ltis,truly wonderful that they should have
so long continued topreServe their credit,
,when5a demand for the payment, f5one.
seventh of their immediate liabilities would
have driven them into Insolvency. And
this Us the condition Of the banks, notwith-
standing that four hundred millions ofgold
from California have flowed i'm upon us
within thclast eight years, and the tide
still continues to flow. Indeed such has
been the extravaganza of bank credits that
the banks NOW hold a considerable less
amount of specie, either in, proportion
their oapital or to their circulation and dc
positcs combined, than they did before the
discovery Of gold,in California. Whilst iYl
the, year ! lS48 their specie, in proportionito to
their capital, was more than. equal toaone
dollar. for four aud .half,in 1S57iyi does
not amount To one dollar for eyerysix dol
lars aud thirty 4tliroo cents of their capital
In the year lS48kthpspeeic was equal With
ina very small fraction. to one dollarin five
of thcir circulation and deposites y in, 1867
tits not clpol, to, csc dollarin seven and "a
half of theif, circulation and depoaitos;
From this statomcnt it's easy,to account
~, pis hl'llei1l PlS.efy nor me iest iorty
Jus ~ ms =, oeell . history OF eXesFagant
eslty' - :. my D.'ssics' eise country,
.lpiiIgss W iuillols ~, gonsfaeetpnss AZ sue
Sus.fo liselS''s Slle ps7e ana niQS1 o. enter
stlslus men nave ,pSen tempted totheirrain
~ 2olh loans OF mere paper cred
~ ~ eNcotlAg them to,ieStravagant imports
~ s,oIs - ~ lesell' M GOODS Wild peeEiotlois,