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

iugs could ut once be instituted against sucsi
delinquent Bank Or Banks, for the purpose OF
vacating or declaring void its charter. To pr,-
vent future speculation, and secure sufficient
metallic currency for the ordinary wants OF the
people of the State, no Bank should be allowed
to issue bills of less denomination than twenty
dollars. The shaving of psper, now described
as "Domestic Exchange should be prohibited.
Any Bank which should, for more than thirty
DAYS conSecutively, have circulation of its bills
greater than three dollars for every one dollar in
specie in its vaults, should forfeit ten per cent
per month for such excess. The existing law
prohibiting any Bank from paying out the bills
of other Banks should be SO modified us to pro-
hibt only their paying out the bills of the Banks
of other States.
That some such wholesome laws or regula.
tions should be made to correct the evils OF the
present system, is clear and indispGtable. Can
any system which yields such an enormous profit
on capital bu just and wise, US is now enjoyed
by the Banks of South Carolina? The citizen
can only realize per cent. on his loans, and yet,
when his capital goes into Bank, through its
uultilurous and iegitimate operations, he real
izes, by declared dividends and reserved funds,
which is merely dividend to be paid in future,
the enormous sum of 20, 30, and, in some in
stances, it is believed even 40 per cent. This
is the range of interest which the Bank capital
of this State has yielded for the last fiscal yeae
Are the profits in agricultural, mercantile, or
other capital, to be compared with it? And can
q charter merely justly give such decided nd
vantage to Banks over all other capital? The
Comptroller General apprehends not.
1t is to be deeply regretted that the Bank OF
the State led the way i'll the recent suspensions,
but the most casual observer can easily detect
the cause This Bank and its Branches at Co.
lumbia and Camden are the only Banking lnsti-
tons in the State that have extended any reason
able all to the farmer and planter, or that has
shielded the property of that largest and most
valuable class of citizens from the greedy spirit
of gain 50 rife amongst the other Banks. AT
the close of the fiscal year it will be seen that
this Bank and its Branches had expanded them.
selves to the utmost limits Of prudence by ac-
commodatiun loans in the shape of "Notes Dis
counted Oh personal security" Bonds" Money
invested in Estate Stocks" by advances for the
State, &C., &c. The loans discounted on pcrso.
nal security alone, the bulk of which is in the
hands of planters, factors and merchants
amounts to S3,OS6, 1884 g., being nearly one.thrd
of the whole sum thus invested by the whole of
the twenty Banks in the State. To shelter them.
selves, tLuf0fure, under the wings Of this Bank,
it was doubtless thought to be good policy to
drive it into suspension first, hence the run that
was made upon this Institution compelled it to
shield its own and the States interest by prompt
" refusing any longer to be thus used, and at
once suspended. Come apprehensions have
been felt in various quarters vi to ths solvency
Of many of the Banks. Should any Of theso
prove insovent, or not have abundant assets to
meet their liabilities, the country has double
guaranty, in the fact that each and every stock
holder is liable for double the amount of his
stock, for the twelve months next proceeding its
transfer, By q close analysis of the reports, it
will be aeen that the suspended Banks are in as
good, or welluigh as good position, as the non.
suspended ones, and that the lspositors oonld
drive any one of them into suspension ,at their
pleasure.
Tie Comptroller has notified the Presidents
of each of the suspended Banks that he will en-.
forea against them the penalties prescribed in
the I'd Section Of the Act of lS4o, and should
the Legislature not arrest him, by some Act at
the ensuing Session, he promises, to make oil
those who have violated that Act, dsaorge
save the country thereby some fsthe burthens
Of tRxstion-
E1rRAcrs rRoa sHR spgEeH or Mr.. c. G. MEM
NISCEg, BEFORE THR Last LEdIaL4TpRE, on
THE BANK ISSUES AND SUsPEysIoXa.
"From this point of view. it is impossible to
regard general suspension of specie payments
otherwise than as public calamity. The moral
and political eyis which attend it, are injurious
to the best intsrosts af society. That high sense
Of commercial integrity which is the main sup
port Of all extensive commerce, Is impaired.
The great centres from which radiata the ave.
nues Of public and private faith, in the fulfil.
ment of contracts, are filled with distrust; and
individuals are induced to excuse their own
breaches CT duty by the example Of those who
have hitherto been the teachers of punctuality
and good faith"
"Not less tangible and apparent are the poiiti.
cal evils attending these suspensions. The ag.
rcutura! interest of the South, but for its nigh
ty selfslpportiIg power, would now have been
uttering its loud drnuuea;iGGG, Bpt.a few weeks
ago, and the markets for southern produce were
firm and tranquil. Cotton and rice found ready
puEchasers at good prices, and no one saw even
cloud up6a the horizon. Suddenly the Banks
in this country exhibit signs of disturbance.
The immense flood Of paper which; for years,
they had been letting out to speculation, flows
back upon them and in the agitation Of its
rush, panic il created in the European world,
which at once reduces lie produce of the South
one.third below its former price. Cotton, which
had been selling at Is cents, is reduced TO 10.
Rice Is reduced from S. to 81 ! and thus, in q
few weeks, without any loss Of crops, without
any cause in the natural world, by the mere
caprice Of banks, after disregarding for years
all suggestions of prudence aud duty, great
artificial calamity is produced-our share OF
which will amount to loss Of at least five mil.
lions Of dollars.
"Large as these figures are they form but an
item in tha aggregate of the public calamity.
When it is considered how many contracts be.
tween individuals are defeated nov many works
discontinued; how many persons thrown out Of
employment, and the amount of suffering and
loss the;eby endured, We may embrace more
Justly the extc.t if this great circle. 1t is only
by feeling the pulsstions # the great heart of
society, the middiug and lower ciasiu., tE3t We
resiize the real character of these suferings.
Many is the family whose distress has been most
urgent, but its expgesaiQp has been heard only
t,y those who haye sought 20 minister to its re-
lief.
eff we extend olr horizon to embrace OPP
whole country, the result is so startling as to be
well nigh incredible. Upon call made by the
U. S. Senate, in 1871, upon the Secretary of the
Treasury, that officer made q report of The loss
sustained by the suspension of 1889, and it was
set down at the enormous sum of ninety.Gve
millions Of dollars, besides one hundred and
fifty millions more, which no estimetss for los
ses through fluctuations of the currency aud
dtlsr incidents Of the banking system. With