Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1858-06-16
From the Mercury.

From the Mercury.
THE BANKsOP THE STATE OF SOUTH CAROLINA.
Mr. EDIroR: am requested. on the part oil
the Board of Directors of this Ba.l, to request
the publication Of the enclosed.
{. NJ. FCRMAN.
To A. P. HAYNE, Esq. Senator:
The extraordinary spectacle which you recent
ly presented, Of Senator from South Carolina
volunteering to impugn indirectly the official
conduct of portion Of his constituents, and tO
essail State institution in which the intere IS
and resources of the State are intimately in.
volved, must necessarily attract attention. In
general, we would permit attacks upon US to pass
for what they are worth; but the position you
occupy, and the place which you selected to give
uttcrance to your opinions Cif your expressions
in the Senate can be termed opinions, attach
degree of Fictitious Importance to them, and
they therefore seem to require some notice ut
our hands, We should be the less disposed 70
notice your remarks had they been drawn out III
reply to an attack made on others. But you
assailed the Bank of the State Of South Carroll.
ma, when your constituents were made the sub.
iects rather of commendation than reproach.
You appeared to disclaim the commendaiou
rather than iorego the opportunity of assaing US.
You are represented Us stating, from your seat
in the Senate, that "we had Bank of the State
of South Carolina that has not shadow of res.
possibility attached to it." If, in making this
statement, you intended to say that the Bank of
the State, being the property Of the State, is not
liable to legal process and cannot be sued, you
have not I" the shadow Of" authority to support
your opinion. 1t is as we'll established as the
existence of the Bank itself, that it is as liable
to suit as any other bank or corporation.
But if you intended to refer to the security of
the parties who may hold the obligations Of the
Bank, your position is equally untenable. You
should know that the faith of the Stateis pledged
for the Bank; and it is with uamitigated surprise
that we find it alleged, even by implication, that
there is not the SHADOW of responsibility in
the pledged faith of the State. 1t is grave
matter that, holding prominent and RESPONSE
BILE position, you should speak lightly or heed.
lessiy in matter in which the pledged faith and
important interests and property Of the State
are involved, and respecting which you are 50
evidently uninformed. But if you referred to
the resources of the Bank ITSELF independent of,
and separate from, the State pledge or guaran.
tee, your charge is equally unsupported and un
tenable. To illustrate The gross assets of the
Bank now exceed seven millions of dollars; the
total liabilities to the public for its circulation
deposits, &C., &C., are under s., 100000 so that
the Bank holds assets beyond the sum required
to cover its liabilities 10 more than four aud a
half millions of dollars. These assets are cash,
loans to the State, stocks, real estate foreign and
domestic exchange, bonds and mortgages, bal.
ances due By banks. and the notes of merchants,
mechanics, planters, farmers and other citizens
of South Carolina. That an aggregate of funds,
amounting to S7,OOO,OOO, held by an institution
in this State and in this city, affords mo shadow
of responsibility" is proposition so monstrous
that we have doubted its utterance, and We have
withheld reply in the expectation of seeing some
prompt and explicit disclaimer from you.
But we 60 further. Your position is as abso.
lutely untcnAble if you intended to refer to the
relation of the Bank to the State as its sole pro.
pretor. When regarded in that point of view,
the result is equally favorable to its character
and its management The State placed under
control Of the Bank for capital, in various sums
and at different periods, funds amounting in the
aggregate to upwards of $l,30O,00O. These
sums have been actually refunded entirely, prin-
cipal and interest, by the payments which the
Bank has made, of interest and principal of the
State debts. The State also deposited with the
Bank the surplus revenue received from the
United States, upwards of Sl,000,O00. This
sum has been refunded, with interest The State
also borrowed $2OO0,OO0, under the act for re.
building the city of Charleston, and placed the
amount under charge of the Bank The interest
of this debt has always been paid by the Bank
The debt is payable in four inStalments. The
first instalment is due in London on the first of
July next. The Bank has already placed the
fund in London for the payment Of the install
ment. When these funds are applied, the Bank
with the payments it has already made in ad
vance, will have reduced the debt to less than
$l,2OO,00O, and that sum will be the entire
amount for which the Bank will be accountable
to the State for capital and for other funds
placed under its charge. Setting apart q sum
sufficient to cancel this debt of $l,20000O, the
balance of the funds held by the Bank, amount.
ing to near $3,O00,000, will be the profit the
State has derived from the Bank since its estab.
lishment.
And we do not rely on Bank Statements mere.
ly to sustain our title to public confidence. There
have been applied to this institution two tests,
which no other institution among US has been
subjected to. Its assets are examined by com.
mites appointed by each Legislature. Those
Of no other Bank are examined but by its own
Directors. This Bank has been called upon to
refund large sums which had been deposited
with it. to use as capital temporarily. When
the capital Of other Banks has been paid in, it
has remained unchanged and undimini5hed in
the hands Of its managers. Under these tests,
this Bank has sustained itself promptly and sat.
isfactorily, and the result offers, at least, some
presumptive evidence that shadow If respon.
sibility" does attach to it.
Tuere are other expressions attributed to you
in the report of the Senate debate, which. self
respect will not permit US to refer to, and which
We are confident (wbere we are known) we
will not be expected to notice. You further
state that, but for this Bank, no Bank in the
State would have suspended. This, we sup
pose, is your opinion; Others, who had, per-
maps, better,opportunity of forming correct
judgment, think otherwise We are not dis
posed to discuss the question. But we state
that We are satisfied with the course we pur-
8 led. We believe that, by avoiding the sacri-
flee of assets and the pressure of debtors, we
benefited ourselves and the community. We
further believe that our course has been gener-
ally approved and, under similar circumstances,
We should act in tho same manner. Suspension,
SIT, is not insolvency.