Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1858-06-23

BILE variations. 1t is, however, probably between
twenty-five and thirty.fve to one. will assume
it to be thirty to one. With this assumption,
e. us suppose community whose aggregate
capital is S3l 100000, its currency would be,
by supposition, one million, and the residue OF
its capital thirty millions. This being assumed,
if the currency be increased or decreased, the
other portion of the capital remaining the same,
according to the well known laws OF currency,
property would rise or fall with the increase or
decrease that is, if the currency be Increased
to two millions, the aggregate value OF property
would rise to sixty millions and if the 'curren:
cy be reduced to $5OO,OOO, it would be reduced
to fifteen millions. With this law SO well estab.
lished, place the money power in the hands OF
single individual, or combination OF findiridu'
ais, andthey, byexpanding, or contracting cur
rency, may raise or sink prices pleasure; and BY
purchasing when at the greatest depression, and
selling st the greatest elevation, may command
the Whole properly and industry of the commu-
nity, and control its fiscal operations. The
banking system concentrates and places this
power in the hands of those who control it, and
its force increases Just in proportion rs it dis
zine invented better calculated to place the deS
| tny of the many in the hands Of the few, or
less favorable to that equality and independence
which lie a. the bottom of our free institutions.
"Nonc but those in the secret know what to
do. All arc pausing and looking out to ascer-
tain whether an expansion or contraction is next
to follow, and what will be its extent and dura-
ton; and if perchance an error be committed
if it expands when contraction is expected or
the reverse, the most prudent may lose, by the
miscalculation the fruits Of life of toll and
care. The consequence is, to discourage indus.
try. and to convert the whole community into
stockholders and spectators. The evil is con-
tinuully ON the increase, and must continue to
increase just as the banking system becomes
more diseased, till it shall become utterly intol.
crube." Calhoun's Works, lis.
"a few figures will show the relevancy Of
these remarks to the present state Of things.
ain lS49 there WIS supposed to be in the
United States Sl2O, 100000 in specie. Of this,
the banks held s43,0OOOOO, upon which they
issued a Bank Note circulation of $ll4, 743 900,
holding al the same time sol 5000 on deposit,
making a total of circulation and deposits $685.
92l 900, and of specie $43. 100000, or about
~ dollars of immediate liabilities to one Of
specie.
SIN 1851 the circulation Of tho
Banks NEUTRALITY-SUSPICIOUS.. is .S2l4,11S,0 900
Their Deposits. .'23O,33l 600
Total. .S445 j 29, 900
while their specie in but about SEC, 1000. or
about II soars o. immediate liabilities to one
of specie. . .. = .. :.
owing to its scarcity. For the California mines
have been pouring it into the country, and it is
estimated that not less than $2G0, 900, 600 al c
now in the United States.
sin our own State, the same extraordinary
disregard Of financial facts is exhibited. In
August, lS47, the total circulation of all the
banks in South Carolina was about $409l 900.
In February, 1857, it was expanded to Sl2,-
10000. In August, 1857, 1t was reduced to
$7,GlS,OO0. In October, 1857, 1t was further
reduced to s6,Gl4,279.a
"With these figures before our eyes with
this great disproportion between the. liabilities
of the banks and the specie on hand, running
back for two yesrs, can it be grayely maintained
that tho banks haYe fulfilled their duties to the
currenoy7 Is IT not appare1t, that while they
have not hesitatsa to expand and contract issues
to ruinous extsnt, from Sl2,440,0 ,090 to No.
6l4000 in eight months, they have Uniformly
saved themselves the expense Of providing the
specie basis necessary to meet their engage
,nents in coin? Could they possibly expect to
avoid suspension with ten times more immediate
liabilities than they had means to pay?
sat this point Of the argument, Mr. Chair
man, it becomes necessary to notice that on
your table there are two sets of measures with
distinct and separate aspectS-one proposing q
relaxation or repeal of the existing laws in re-
lation to banks and the other proposing to add
preventive measures for the future. Those who
ask relaxation Of existing laws, claim for the
banks exemption from all blanc, ard insist t4at
the existing state of things was produced by
the Banks in New York and elsewhere, without
any concurrence or fault on the part of the
banks here. The act Of lS40, which requires
our banks, willie in state of suspension, to
pay 3 per cent per annum on their issues into
tue public Treasury, they regard as 2 penalty ;
and az such, it ought not, (say they'll to TO ex:
acted of innocent suiiefers.h
| x
at was not until after the second suspension
of specie payments by the banks in 1889, that
| the Legislature of our State found il necessary
to inisFfefp, and seriously turned its attention
to measures OF presoniid;i, The taking away
of charters from the banks while the s6iulnun;.
ty was groaning under the troubles Of money
crisis, served only to add to the calamity. The
suspension of specie payments by the banks,
was not III itself the single fault to be con-
demned On the contrary, circumstances might
exist which might make suspension relief fnT
the time. The real evil was the previous eX-
pansion of the currency, the subsequent con-
trsatian was its necessary consequence, and a
suspension tsp t;taa might be necessary pal
listive. After long -deliberatlon, AID after sHc-
cessive discussions, the Legislature in 1910, en-
acted law in which they offered the banks a
rsls&sp from forfeiture of their charters in cases
Of suspension, upon condition that they would
accept two provisions as substitute. The first
was that whenever they refused to pay coin for
thpir notes and suspended specie payments, they
should pay two per GENT per annpm into the
public treasury upon such notes as they had in
circulation. The second was that the banks
should publish monthly statements Of their true
condition for public information.
"The first condition was evidently founded
upon the fact that the issue Of currency be-
longed to the State itself; that she delegated
this trust to the banks and that so long rs the
banks fulfilled their duty in furnishing such a
currency as met the obligations of the State,
under the Constitution of the United States,
the State was willing that they should take to
o.