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


Mr. EDITOR 81 see in your paper of the 10th Feb
ruary, notice signed CoLEXAS's y ROADS, in which
an alusion is made to the proceedings of the last
Legislature in reference to the late Bank Suspension
Also, see the remarks Of Of my colleagues upon
that subject published in your paper and as had the
honor Of seat upon the floor of the Legislative Hall
at that time, as member from Edgefed District, and
had the misfortune Gf it be misfortune to v'te in
the minority upon the passage Of tho Bill relieving
the Banks from the five per cent, the suspension Of
the Act of ls4O feel it my duty with all due defer
to tho opinions Of others, to give to my constu
ents the reasons by which was nctuatod in casting
my vote on that important occasion, and beg that you
will allow tho privilege Of doing so through our
District paper.
It is impossible to regard general Bank suspension
of specie payment, otherwise than apublc caami-
ty the evils which attend it injurious to the in
tercsts of all circumstances and conditions of man
kind. If we consider for momont the influence
which commercial integrity has upon the relations Of
society, wo will at the fatal consequences
following its corruption. The whole produce Of the
country, amounting to Millions is yearly exchanged
for nothing but pieces Of paper called bills OF cx-
change the security for which is generally the
integrity of the persons whose names arc written up
on them Every where almost in tho known world
all the great public enterprises carried on by the
capital of individuals, willingly exchanged for scrip
notes, in reality nothing than pieces Of paper
yet trusted though it the actual coin it callr
for, because of the confidence in those who sign these
papers, also having confidence in the integrity and
faith Of the government which enforces contracts.
refusal by the banks to fulil their contracts, strikes
Il heavy blow ut the very foundation Of this mighty
fabric, and teaches the sad lesson, that commercial
integrity is believed to be consistent with refusal to
perform the most solemn engagements. To say moth
ing of the political evils attending these bank suspen-
sions the agricultural interests Of the South but for
its mighty sclf-supporting power, would now have
been uttcring its loud dcnuncia.;ons. But few
months ago, tho markets for produce were firm
and quiet Suddenly the Banks in this country be-
gan to quail, the immense quantity Of paper, which.
for years the banks had been letting out to specua-
ton, rushed back upon them, and what the
suit? A panic is created which reduced the produce
of tho South in price, ut least ono third below its
former value. Cotton which had :cen selling for
Is cents WAS reduced below 0ccuts which caused
by the mere caprice Of tho Banks Our loss is cup
posed to be at least FIVE millions Of dollars, not taking
into consideration the many contracts between indi
viduas defeated, the many works discontinued, the
many persons thrown out of employment, and tho
amount Of suffering aud distress which it has
stoned.
Whenever the money power is placed in the hands
Of single or combination Of individuals, and they,
by expanding contracting the currency, may raise
lower tue price Of property ut plcasure-nnd they
buy when at the lowest price, and sell ut the highest
pricc-thcy may command tie whole property and
industry of the community md control its fiscal op
crations The banking system concentrates und pla-
ces this power i'll the hands of those who control it;
and its force increases just in proportion as dispen
ses with metallic basis Never was engine in
vented better calculated 20 place the destiny Of the
many in the hands of tho few. The natural conse-
quence s to discourage industry and to convert tho
whole community into spectators. The evil is on the
increase, and must continue to increase just in pro-
portion the banking system becomes moro corrupt
uAt it shall become insuferuble by the people. See
the Comptroller Generals Report for 1851 He says
that call the Banks have accepted the provisions of
the Act Of lS40 to provide against the suspension of
specie payment There has been, rs usual, extra
ordinary amount Of speculation in Domestic E1-
change" 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
tho commencement of the fiscal year, all the Banks
in this State had m aggregate liability of $685.
231,i7. To meet this liability their assets were in
specie 2Os,73, with s7,SS6, 3j in Domestic
Exchange, and s275,1764G in Foreign Exchange,
which the Banks claim to be the equivalent Of specie,
but which, can, in emergency be made available.
At tho time, the amount of deposits was ST.
253 $780, nearly three times the amount of specie in
their vaults and therefore liable ut any moment to be
driven into suspension by their doposors were COM
bnation formed for that purpose Again, Mt tie close
Of the fiscal year, the 3oth September their total lia
bties amounted to s33,OO5,739,sl, with only $780,
3997 in specie. They then had on deposit $685.
2S4,2l nearly trible their amount of specie, whilst
their circulation was $11Vs,l7U,sI, With DomssHs