Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1858-05-06
For the Yorkville Enquirer.
THE RANK QUESTION.

am led to believe, that in some portions OF the
District, Misrepresentation in regard to the action
of our Legislature, prevails. Allow me in as few
words as possible, to recapitulate the circumstan'
ces, and state the matter as it stands. When
say in as few words as possible, / do not mean tt
affirm that the subject can be disposed of in a few
words. but only that l will endeavor to use as few
as may comport with the ~intricacy and Importance
fthe subject. 1t furnished a fruitful theme for dis,
cussiou for three weeks, and was regarded as o,
so grave and ponderous o character, as to draw the
fire from the heaviest ordinance. 1t was dicussed
in general with much fairness, for the great OBJ,
iect of all seemed to be, in honesty Of heart and
uprigbtness of spirit, to arrive at o holy and wise
| conclusion. I know that the matter is not well
understood, and l do not know that / can throw
much light upon it; but one thing I do know, that
nv aim is to state the truth in simplicity, honesty
and sincerity; and I believe that now is the most
opportune time, before the candidates have taken
the field and announced their views.
So much has been said and written about Banks,
that it is difficult to say any thing about them
without repeating what has been said by some
one else. Yet the general discussion had, and the
general overhaulipg of the Banks throughout the
country have had q tendency in some degree, to
bring before the country their various means Of
making money and in the present state o~fsociety'
their great convenience TO the public, and their
absolute necessity.
It has been O matter of wonder in the minds Of
many, how the Banks could make so much money
how they could pay such large dividends, and
high salaries to their officers.
But it is to be recollected, that they have not
ly their capital to'work upon, but are permitted to
issue bills founded upon their stock. The Capt.,
tai being paid, Banks can issue two dollars for
each dollar so paid-and many of them have ex'
ceeded this. Now, q bank loans its bills which
do not draw interest, for notes which do bear in
terest, and some have five or six dollars in circu,
lation, on which they receive interest, for one Of
specie which is lying idle.
Again; Banks loan out on interest deposits on
which they do not pay interest, which is another
source Of gain. Again, when a Bank loans money,
it discounts for more time than is actually allow.
ed for payment. For instance, IL borrow $loC
for go days. the Bank discounts for SO days. This
to be sure in each individual case is not much,
but in the aggregate amounts to o great deal. In
some Banks where O large discount business Il
done, It may cover, nearly, or altogether, the
whole expenses of the Bank.
Now these are the privileges ofthese incorpora'
ted institutions-these are the advantages of ns
ISOLATED commercial capital. Well; some will
say these are great privileges, and have heard
individuals say, if the Legislature would only
grant me the privilege vf issuing two dollars fol-
one of capital, I would invest all my estate in
Banking and coin money by the operation. Why
these individuals ore far better without the tram
mel of incorporation. You may now issue twenty
dollars for one, if you choose, and so long as you
can induce the community to believe that your
notes are good beyond doubt, you may Issue ten
thousand dollars for one which you actually have.
But here may be a difficulty. You may not get
your notes to circulate. You have not the un-
bounded confidence of the community, and for
lack of this, you cannot enter into Banking profit
ably.
Incorporation adds nothing to the capital; not o
cent. A State cannot coin money-that privilege
belongs to the Federal Government-and what o
State cannot do of herself, she cannot do through
...l. Tlo uho1a N " = no nf ;ponrpnro tiop
is, that it brings together associated capital
brings under the control of law-brings before the
country the lame of those so associated and their
means and the community having unbounded con.
6dence in their stability, receive their notes-that
is their promises to pay.
In the present state of society, and whilst 80
much business is done on credit, Banks are a great
public convenience great public necessity and
the overthrow of the system would paralyze and
destroy the business of the country. 1t is better
then, that associated commercial capital should
in some degree be subject to law. Incorporation
gives no Capitalize State incorporation cannot
make Bank Bills a lagful tender. No one is obi
ged to take these notes-iti is wholly optional with
a person to receive them But if there is undoubt
ed confidence in their value, it isa great conve'
nience. Now, individuals may associate together
and issue as many notes as they please, but thu
community is not so likely to take their promises
as the promises of those who ore recognized in
and controlled By law. One or two of the States
have no Banks. Well, how do they get along
Why they just use the circulating medium of tn
adjoining States. So, if we in South Carolina hat
no Banks, we would just use North Carolina ant
Georgia Bills, unless we had men of princely for
tunes like G1RARD, whose bills would be as goo(
as gold and silver.
Banking is a system but little understood, ant
because it is not understood, many On honest MAJ
has been deceived by the loud assertions which ar
continually made against the system. The mos
clamorous persons are usually those who hav
never had any thing to do with Banks, and VIII
know nothing of their operation. Tho Bank
having an associated capital of many millions, ar
considered by the community as worthy of credit
{ and their Bills even when not redeemable in coir
WILL pass lTOm uduu " uuuu, uCSouoo ~ PeSA
are we'll assured that they represent property {
unquestioued value. The charter does not Civ
these Bills their value, as many suppose; it
the fact that they represent property-the pre-
ducts of the country-that they are issued by re
e s~ponsible parties, and when the products of til
r country are sold, the means of redemption Of
E provided-they are received in payment Of due'
:, and so, to all intents and purposes, are e~quiTalan