Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1858-02-24

Exchange TO tho amount Of $40 265, $50 9Sand only
1921, ,553,lS in Foreign Exchange. This showing is
truly alarming to the financial interests of the State
The whole Of our Banks are in the hands of mere
srccuators who wantony disregard the teachings Of
experience as to safe banking; and hence our Banks
are at any day, at the mercy of their depositors If
the full measure Of punishment was meed out to them
that they deserve there is not Of the new batch
of Banks chartered in 1852, but richly deserves
forfeiture Of charter for the it hns pursued
any political traitor ever mcr;ed decapitation for rea
son to his country. They have prostuted tho former
well-trel and legitimate system of Banking in this
State, to one of mere speculation in exchange. Or,
in other words, they have changed the Legitimate sys
tenn of Banking and their Banks into mere shaving
shops-at their counters, or through their agen
cies ut every point in out Of the State where their
other citizens paper, on sight drafts or drafts
time, can be bought speculation, until their opo-
rntions would shnmo the denizens on Wall Street IN
New York, or the Bourse in Paris.
"Can any system, which yields such an enormous
profit capital, as is now injoyed by tho Banks Of
South Carolina, be just and wise? The citizen can
only realize per cent on his loans, and yet when his
llegitimate operations he realizes by declared divi
dends and reserved funds which ia merely dividend
to be paid in future the enormous sum of 20 or 80,
and in some instances it is believed 10 per cent
This is the range of interest which the Bank capital
of this State has yielded for the last fiscal year. Arc
the profits of Agricultural mercantile, or other cap
tai, to DO compared with iii"
One of the arguments used by the friends of the
Banks, was, that unless the Legislature did suspend
the Act of 1S4O the Banks would furnish the cur
rency carry forward the crops and appeared to
my mind as threat The first hint of that nature seems
to have come from the memorials Of the suspended
Banks They say "that should the penalty of inter-
est on circulation, continue to be exacted from the
suspended Banks it would impose upon them the ne
cessity Of stringent contraction that they would
have to call upon their debtors for payments that
would cause general embarrassment, that they must
speedily possible, withdraw their notes, which
constitute the exclusive circulation Of the State;
dor such course of matters that they could do no
new business and that the consequence must be dig
in the extreme to the customers of the Banks
and to the cotton CROP" &c.
But well did they know, that so long as the Bank
of the State is under suspension, the withdrawal of
the circulation of the other Banks would be harmless;
that it would be worry easy for the Bank Of the State
to fill up the space with its bills, and some slight ap
proach to justice would then be the result by putting
into that Bank the profits which, under the .ct Of
1870, should have gone into the public treasury.
Why should not insist upon the faithful perform
Of all contracts by Banks as well as by indyid
ualS, upon the strong as we'll as the weak7 believe
now rs then, that if the Act of 1870 had not been
suspended, that resumption of specie payment with
in three months would have been the result. Other
wise, the throwing into the Treasury Of the State
about 900 annually, while the Banks remained
in suspended state.
The profits of the money circulation stricty speak
ing) belong to the Ste and is Of itsolf sufficient to
pny all the expenses of the State Government. OF
the pertinent circulation of the State, which sup
pose to be six million of dollars, the Banks derive
at least six per cent upon all their loana, the profits
would amount annually to $3.50, ,OOO-one would sup
pose quite sufficient to insure good and sound
rency. In 1855, taking all the Banks together, they
held only dollar of specie for nine dollars of their
circulation and deposits. In 1856, they held only
one dollar for twelve, and several Of the Banks had
only one dollar to twenty-five of circulation and
deposits.
With all these facts staring them full in the face, in
all conscience, cannot for my life how the Banks
reasonably could ask for the suspension Of the Act Of
1910. am fully satisfied and it is very evident to
my mind, that tho Banks by their own ssaes and by
their speculation, in and cut of the State wcro
themselves the grand cause of the late Bank panic
Taking that Wow Of the matter, felt that the in
tcrcst Of my constituents required to exact of tho
Bnnks the requirements of the Act of 1910 to the full
extent, and voted accordingly.
There some of the motives by which wal, nc
tuaed in voting against the suspension Of the Act of
1910. have not as yet seen anything to change my
mind in the least. therefore willingly submit the
matter to my constituents to decide, and abide the
consequences. But before close wish it to be ds-
tincy understood that it is not my purpose to attack
any 1t is the nature Of men honestly to differ in
their opinions. Ny only reason for this communca-
ton is to vndicate my course upon the question
Of Bank Suspension in the Legislature.
Respectfully
ABRAM JONES.
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