Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1858-12-18

Wmch is required to dcfray the current OK
pcnses of the State, during the greater por-
tion of the year. Take, for instance, the
present year:
The apparent balance of cash
in the Treasury, on the 1st
October, was SlO1 ,O58. So
But from that sum must be de-
Quoted the proceeds of sale of
six per cents. issued for the
erection of the State Capitol,
which were temporarily de-
posted in the Treasury, but
which have been already
drawn and expended, 4G,S23.25
Leaving for current expenses, S54, 4,235. SO
This balance is liable to be drawn at any
momem Tor past appropriations, and indeed
is not sufficient to meet the present demand
on the Treasury, which must exceed seven
ty-hvc thousand dollars, (S75,0O0,) This
condition of the finances is not likely to be
changed unless the State taxes be increased
duringthc present session. 1t thus appears
that the current expenses of the State con-
stitute cash demand on the bank during
the entire active or business portion of the
year, for the income of the State in the
shape of taxes, is not received till June in
each year.
The first of January, the time when the
State debts are made to fall due, is the pc
Rod when large amounts of the current ox-
penses of the State are also payable. The
expenditures on the State capitol form an
other demand upon the funds of the Bank,
diverting them from their regular employ
ment during the business season. The
bank has been required to make advances
in anticipation of the sale of stock. When
money is easy this demand is not onerous;
the Bank is readily refunded by the sale of
stock but, as soon as stringency arises,
stock becomes unsaleable, and the amount
OF advances accumulates at the very time
when the funds of the bank are most need
ed for business purposes.
We present these facts to the view of the
Legislature, at this time, as they are mate
rally connected with the operation of the
Act of the last session, in relation to bank
circulation BY the provisions of that Act,
the banks are prohibited from putting into
circulation bills under the denomination of
ten dollars, and are also required to keep
in their vaults one dollar of specie for every
three dollars of their circulation. The ef
feet of the former provision will be to call
in rapidly all the smaller circulation of the
banks. This Act goes into effect on the
first of January, 1860, the very day on
which the Fire Loan six pcrcents. fall due
and at the period of the year when the ne
ccssities of the State Treasury are most
pressing upon the bank for funds to meet
It's current expenditures. 1t will be per
ceiyed, upon a slight consideration, that
the operation of this Act upon the Bank
OF the State is more onerous than upon the
other banks, A much larger portion of
our issues is in bills under ten dollars
The one and two dollar bills constitute
very heavy portion of them. The present
circulation of the bank, under ten dollars,
amounts to about seven hundred and sixty
two thousand dollars. This, however, is
making no allowance for lost bills. The
influence of the Act upon this bank will
be peculiar at this time, as compared with
its effect upon the other banks, for another
reason. As We have already shown, the
bank has been, and will be still, engaged
in the process ofvirtually reducing its cap
ital at the very period when the Act goes
into effect so that we will be subjected to
the double process of reducing or refund.
ing our capital (by payments making in the
public dcbt, and redeeming this large
amount of issues at the same moment. 1t
is evident that, as financial operation, this
arrangement is very Objectionable. We do
not intend to alloge that the return of the
circulation will be Immediate, or that a
portion of it may not be substituted by a
circulation ofa larger denomination. But
we think it unquestionable that a large
amount of the circulation viii be perma.
nentiy reduced, and within short period.
IT there were any pressing considerations,
requiring strict adherence TO this argument,
the Inconvenience or disadvantage result
ing from it, whatever thoy may be, should
be submitted to. But, without discussing
or questioning the policy upon which tho
provisions of the Act are based, wo submit
that temporary suspension of the opera.
ton of the Act, as to this bank, would not
interfere materially with the Gp,.adoption
or eniorccmcnt of that policy, asa .aight,