The Carolina Spartan. [volume] (Spartanburg, S.C.) 1852-1896, 1857-12-10

Is irue that Exchange Sterling" is regard.
ed as specie. but no well informed man or
banker will claim the same for domestic
Exchange" or If so, will assert that il can
at once be made available The course of
The new have driven (no doubt willingly
many OF the old Banks, since their re char.
iers were obtained. into n similar system of
speculation, whilst others Of them have only
continued IN an old and beaten track that
they have followed SO long and with so
much lmpunity, they doubtless think they
have prescrptive right 10 do as they
please The old should. therefore. be made
to share the same fate and penalties of the
new Banks. by a close and critical exam.
ination of their monthly reports TO ,hi, Of
flee, ii will he seen tha, an exaggerated pic
ture of their shaving operations could no,
wei ee drawn 10y tho most fertile itnagina
tion. What remedy the Legislature will
supply to arrest this great and growing
evil, one destined nj no distan, dav 10 over
wheIm the country with ruin anl disaster.
and which will inevitably involve US in
great monetary difficulties. the Comptroller
can neither forcsee nor determine. He feels
that he has faithfully performed his duty.
and his whole duty, in thus bringing i, for
clbly before your honorable body, as has
long been his purpose to do, aud TO leave
to time and circumstances The wisdom of
Tue act. lie is aware that the severe strict
ures he has INDUCED in will CRATE harshly
on the feelings OF individual members and
Bank stockholders but he is not To be de
TERED from the full discharge Of his duties
by that or any other consideration Of favor
or OF policy. That your honorable body
ay'deal with these offending institutions
in no very measured terms, aud with an
unsparing hand SO as TO arrest the wild,
reckless and er,ravagant system OF specula.
ton they have inaugurated in our State,
is his earnest hope and desire.
NolE.-Since the foregoing report was
closed at the end Of the fiscal year, no less
than twelve out Of twenty Banks have sus
pended specie payments. The evil is upon
the country as even an earlier period than
the Comptroller anticipated, although he
apprehended serious financial embarrass.
nents from the illegitimate course Of the
Banks IN this State, and called The at,en
ton OF the Legislature to their specu!ations
in his Annual Report rs early as the years
1854, '55, and SO. ltwas his conviction tha,
they would sustain themselves until after
the expiration of the approaching session.
but The outside pressure from other States
and banking institutions was too grea, TO
be resisted, and they have been driven into
suspension. Whatever diversity Of opinion
may prevail rs 10 the wisdom and policy OF
their suspending, that great blame attaches
20 them for placing themselves in the con.
dltion that rendered suspension necessary
no ono will question or doubt, and tLey
should be made to suffer the penaltie,
| therefor. The Comptroller General, as
| chief officer OF the financial department: of
the State, in view OF the crisis which has
been precipitated upon us, feels it incum
bent on hun to present, with great defer
ence, his opinions as to the proper remedy
to be adopted to punish the delinautn
! Banks, and TO prevent in future state OF
affairs which must lead 10 a similar result
The penalties imposed ty the second section
OF the Act of 1910, to provide against the
suspension OF specie payments, should be
firmly and vigorously enforced. Should
either OF the sus. 1ded Banks neglect or
refuse 10 pay Tue penalty already prescribed
10y law, provision OF law should be made
by which legal proceedings could u, once be
instituted against such delinquent Bank OF
Banks, for the purpose Of vacalny or dc
claring void Its charter. To prevent future
speculation, and secure a sufficient metallic,
currency for the ordinary wants of the peo
| pie Of the State, no Bank should BE- allowed
10 issue bills of less denomination than
twenty dollars. The shaving of paper. now
described rs domestic Exchange" should
| be prohibited. Any Bank which should
for moro than thilty days consecuuvely.
have circulation of It's bills greater than
three dollars for every one in specie in ill.,
vaults, should forfeit ten per cent. rer Inonth
for such excess. The existing law prohibl
ting any Bank from paying gu, the bills OF
other Banks should be SD modified as To-
prohibit only their paving out the bills OF
the Banks oi other States
That some such wholesome laws or rcru-
! Iauons should be made 10 correct the evils
I OF the present system is clear and indi>pu
table. Can any system which yield. such
an enormous prof, on capital BE- ju,, and
wise, as Is now enjoyed 10y the Banks. Of
south Carolina! The citizen can only re-
al'ze per cent. on his loans, and yet, whom
his capital goes into Il Bank, through It's
mGIiiiarious and iliegtima;e operations, he
realizes, hy declared dividends and reserved
funds, which IS merely a dividend 10 be paid
III future, the enormous sam of 20, 30, and :
IN some instances, i, is beloved. even 40
per cent. This is the range Of interest
which the Bank capital of this State has
yielded for the last fiscal year Are the
profits III agricultural, mercantile or other
pursuits. to be compared with in And can
a charter merely justly give such = decided
advantage to Banks over all other capitai
The Comptroller General appreheuds not.
1t is TO be deeply regretted ,ha, the
Bank OF The State led the way in the recent
suspensions, but tho most casual observer
can easily detect tho cause. This Bank
and Its branches AT Columbia and Camden