Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1857-12-04
From the Charleston Courier.


report of the Comptroller General The following how
ever, which relates to the Banks will be read with in
+. tereSt r.
The remaining twelve tabular statements are the Re
ports of the Banks of this State all having accepted the
provisions of the Act of December l840 &c provide
against the suspension of specie payments There has
been as usual extraordinary amount of speculation in
Domestic Exchange" and in fact of their funds
generally by the private Banks in every way injurious,
and that will ultimately prove disastrous, in the extreme
to all the industrial pursuits and interests of the State
At the of the fiscal year all the Banks
in this State had aggregate liability of $32 939 231 Al
To meet this liability their assets in specie were 81 383
20S73 with 81 1856, .35 in Domestic Exchange and
! $275,l7646 in Foreign Exchange, which the Banks
claim to be the equivalent specie, but which in
emergency be make available. At the same time the
amount Of deposits S. 253 60 nearly three times
the amount of specie in their vaults and therefore liable
at any moment to be driven into suspensions by their
depostors were combination formed for that purpose
On the last day of July the total liabilities of all the
Banks were $33,51918S54, with specie only to the
amount of ST POI 289.77 with circulation of $685.
527.37, and deposits to the amount of So 549 83714-
The amount of Domestic Exchange then On hand was
$lO370,J6 ,07, with but $427,49 44l of Foreign FIX
change
Again at the close of the fiscal year 3Oth Sept their
total liabilities amounted to $33,O05, 81 with only
1899 &c in specie. They then had deposit $2
8392S42l, nearly treble their amount of specie, whilst
their circulation was $7105,l 705l, with Domestic Ex
change to the amount of 53098 and only $23l-
! 553.l 5 in Foreign Exchange.
This showing is truly alarming to the financial inter-
ests of the State. The whole of Banks in the
hands of mere SPECTATORS who wantOnly disregard the
teachings of experience and hence Banks are at any
day at the mercy of their depostors. The remedy is in
your hands, and, Notwithstanding the arrogant claim of
the private Banks that they have power under their
charters to do as they please and not amenable to
the public for their acts there is little doubt but that
the Courts of the State would bring them under
the law Of the land, and teach them to know that they
are public institutions with certain private rights and
that they are at least not Omnipotent to do evil
Whatever remedy you may, III your wisdom, apply to
arrest their abuses in the Judgment of the Ccmptroller
should be prompt sharp and severe. If the full measure
of punishment meted out to them that they deserve
there is not Of the batch of banks chartered in
1852 but richly deserves forfeiture of their charter
for the course they have pursued any political traitor
merted decapitation for treason to his country
They have prostituted the former well tried and egt-
mate system of Banking in this State to one of mere
speculation in exchanges in other words they have
changed thelegtmate system of banking and their banks
into shaving shops; and at their counters
through their agencies at every point in ont Of the
State where their own, ether citizens papers sight
drafts, drafts time, can be bought speculation
until their operations would shame the denzens on Wall
street in New York, or the Bourse in Paris.
There is citizen in South Carolina more familiar
with all the facts set forth in the petitions memorials
arguments and entreaes made to the Legislature in
1882 to induce that body to grant the charters for these
actor, and active participaor both as member
of that body and charged with the interests of those
desiring bank; and it is now in his power to give
most minute and detailed account or history of the cir
cumsances and facts under which they obtained their
charters not of which has performed the functions
for which they created, redeemed the pledges
made to obtain them.
They are not, and cannot be called Banks of loans
deposits and discounts but hucksters for paper
shaving, under and fOrm Uf dealing in exchanges
The words Domestic Exchange" should be stricken
from the form Of their monthly reports to the Comptro
Ter, and those of shaved paper substituted therefor.
They should be compelled to declare every dollar of their
profits IN quarterly or semiannual dividends and the
words reserved profits by which they conceal from
many of their dupes the profits they max
ing, stricken from their statements. They should be
compelled to keep at least dollar in specie for every
three dollars they have in circulation, and no private
Bank should be allowed to issue bills under the denOmi-
nation of twenty dollars.
! The profits that scme of these Banks making by
their shaving operations enormous. Take, for in
stance, the Bank of Hamburg. The report from that
Bank, for the month of September shows that its last
semi-annual dividend at the rate of II per cent.
per annum and the amount declared in dividends was
$4,000, while the amount of reserved profits was
$l24,36O 90. When the Bank Of Hamburg declared
its last extra dividend is not known to the Comptroller
but If the above added together and the
of 100000 yields dividend at the rate of II per ccut.
: per annum the Of $l5496O 96 will yield at the
rate of 6l34 per cent per annum. Notwithstanding
these profits there is not solitary of them
that could redeem in specie One-lalf one-fOuth one
eighth Onctenth One-twelfth and some not over one
sixteenth, of their bills in circulation and this by their
own showing, if any great sudden crisis emergency
should throw them upon their counters. 1t is true that
Exchange Sterling is regarded SPECIE but well
informed man banker will claim the same for " Do
nestle Exchange" or if So will assert at once that it
can be made available The course of the have
driven no doubt willngly,) many of the old Banks
since their recharters obtained into similar sys
tenn of speculation whilst others of them have only
tnued in old and beaten track that they have fol-
lowed so long and with much mpunity they doubt
less think they have prescrpve right to do they
please The old should therefore, be made to share the
same fate and penalties as the new Banks
BY close and critical examination Of their monthly
reports to this Office it will be that exaggerated
picture Of their shaving operations could not well be
drawn by the most fertile imagination. What remedy
the Legislature will supply to arrest this great and
growing evil one destined at distant day to over
whcm the country with ruin and disaster and which
will inevitably involve i'll great monetary difficulties
the Comptroller neither torc6ee determine. Ic
feels that he has faithfully performed his duty and his
whole duty in thus bringing Il fOrciby before your hon
Orabe body it has long BEEN his purpose to do, ant
to leave to time and circumstances the wisdom OF the
l. act He is that the structures he has in
duIged in will crate harshly on the feelings of invidua
members and Bank Stockholders but he is not to bt
deferred from the full discharge Of his duties by that o.
l any other consideration Of favor or Of policy. Tha
Your honorable body may deal with these offending in
stitutios in 10 very measured terms, and with TN
: spang hand to arrest the Wild reckless and ex
travagant system Of speculation they have naugurate(
in our State is his earnest hope and desire.
NoTE.-Since the foregoing report closed at tht
end of the fiscal year, less than twelve out Of twenty
,, Banks have suspended specie payments The evil il
upon the country at even earlier period than thu
Comptroller anticipated although he apprehended seri
os financial embarrassments from the illegitinatc
o the Banks this State. and called the attention O