The independent press. (Abbeville C.H., S.C.) 1853-1860, 1858-01-15

IN denomination than $1,000. signed bv
the auditor, and marked On their face "se-
cured 10y public stock. TO enable them 70
redeem these bills without selling thci. pnh-
''c securities, they are required to keep al
,'%y ways on hand. large specie basis to 3.
ihcy cannot issue one dollar beyond what
Is gwen hy til" auditor and he is under =
heavy penalty for voialating his prescribed
duty. The stockholders are all held rcsnon.
s'olc lor all the liabilities of the banks in
proportion to the amount of,heir stock and
1t need he the whole amount oftheir private
property may be taken to cancel the debts
OF the 'nsolvcnt Banks. For h violation Of
any OF the provision Of the Act, the Bank is
put forthwith in bankruptcy.
80 well has this system worked updcr
the present monetary crisis, that i. wouId he
we'll for Senators to initiate the State of Lon
ls'ana IN trying to give to her people sound
and stable currency. But let us turn from
that system and see what is the present bauk-
ing system OF South Carolina, and first,
villa, are the powers conferred by the charters
as they now exist? They have power to
issue three bills for one of capital. and not
as some suppose three bills for one of
gold and silver. That is, Il Bank of 81 .OOO,-
ooo capital has the power to issue SIS ,OOO,-
600, and based upon domestic exchange. or
whatever the President and Directors may
deem proper. They have the power to
change whatever rates of exchange, they
arc Pleased, and the power to ,efuse to dis
count good notes at six per cent. per an
NUN. They have the power to scatter
their bills beyond the limits of the State,
whereby they can induce people to take
them. aud deny their citizens the use Of
these bills.
In word they have the power to give
US a sound and stable currency, which
would, if teyitimatcty managed, afford all
the relief that could be asked by the peo-
pie OF our State, aud power to make the
currency of South Carolina the pride and
boast of her people. But instead Of using
the power conferred on them 10y the L"gis-
lature, for the ,beueit of the Agricultural
Manufacturing, and Mercantile interests Of
the State. they have wlfully abused the
trust contiacd TO them. ..
:. What,are, then, some Of the evils of our
present Banking systcm2 First, that is no
system at all Z Each Bank has its own
charter, and has thus far managed to do as
they please. All they are compelled to
40 IS to send in to the Comptroller Grncr-
al a monlhly statement Of their assets and
|.lla6illt'es: Secondly, there is no provision
for SPECIE basis in any OF their Charters
EIhey have almost an euulinited power of
expansion. And this power To expand
|!heir circulation. and pander to the crav-
|slIgs Of spectators and ock.jobbcrs, have
Isbrought the ruin that is now upon our
tco0ptry. The power TO issue rs many OF
f'lheiE bills as they find employment for at
asarious rates of interest, has been the one
lIdea OF many of our so called furnishing
thanks. In fact the sole idea Of making
I!aTge dividends for the stockholders, has
ESQ eRgrossed the. minds of many of our
ifBanksofiieers, that they have olifple,ely
i,l6st agm of.thc wants Of the people of our
State. The idea Of discounting notes at
tsix per cent. as their charters authorize. is
l:hooted atSby many of our Banks. They
do mot: cali that legitimate business whel,
they can discount the same paper in anoth,
ssaETorm Domestic Exchanged at from ten
tsSo, ,hteen per cent. per annum. Can that
iseh done;S when the charter only allowed
asBanks, to charge one per cent. for every
3.sixty days, or in other terms, six per cent
per- sagnum? The Hon. Senator said it
chad been done, and that he would instance
a transactionyt came under his own oh
sarvatiop :, a friend Of his desired to Dor
row 81 10, 900, upon note sixty days, en-
dorse1 by gentlemen worth 100000. The
note Vas presented to one of our suspended
Banks for discount; but was refused, upor
ffthe ground, that tie Bank was not in funds
+ The friend returned sorely disappointed.- =
|sssbe gentlen ian desiring the loan, was di
i Iected 70 change the face Of the paper, by
fedr9@ing q Bill Of Exchange on his Factol
\ In ClaTfesio on at sixty days. acceptance
'fsibagsa, apdsget the same ebdorsers,' and
present the ematter IN bat sI,aPe,ss The pa
per was presented, and the President tolG
him they were then Iipfunds. but the rat.
Of exchanges pas riding very high. . The
!, money borrower asked what the Bank
would charge One per. cent. per month
4 The contract was agreed.to. and the money
,El9aned..s This isswhat is termed a s'Kite,,
4 sud that mbre than ope-half Of the amopn
mesticfE Exchange set down as the : as
Issssts % some. .f our Banks, were Of this char
4 Rths tom sof Domestic Exchange is. look
lied npon .Andsso regarded, by many person
ssss 8i,af 10 gold sa61 ssilver.beings drawn
Ises ssnpPossd odpon the Produces off th
I1segnu!fy 8tid q person .uEaccustomed Il
@DkUg toph ratiapss will look upens Ex
langs as eqaiRalept 10 gold and .&silve,
kites.r They are draw