Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1858-05-06

coin land coin is not alwaysto be had, and though
thu basis of the circulating medium, can never be
so abundant as to supply the wants OF the world.
Besides, specie is cumbrous and expensive. The
use of this credit in providing a circulating medi-
UNI, enables the Planter to dispose of his crop at
home for ready money; and when these crops
reach the intended markets, they furnish to the
Banks, Exchange on New York, Boston, Phila-
delphia, New Orleans, or Liverpool. So by this
operation, planters sell their crops and merchants
obtain the means of purchasing goods. Look for
o moment into the operation. All produce drafts
are drawn at six per cent, and domestic exchange
is obtained in this way. You take, say 50 bales
Of cotton to market-say Chester. One OF the cotton
buyers purchases your cotton the Bank loans him
the money, and he pays yon. He pays interest to the
Bank-you pay none; he ships this cotton to Char
lesion and draws his draft. A cotton Broker in
Charleston, has an order from q manufacturer in
the North for fifty bales Of just such cotton; but
the broker must first get the money, before he can
get the cotton from the Merchants Factor. He
therefore draws his Bill of Exchange upon the
manufacturer, and the agent Of the Bank buys up
that Bill of Exchange for the use Of the Bank,
with the proceeds of the cotton and that puts
money ut the stipulated time, say sixty, ninety or
one hundred and twenty days, in New York. The
merchants trading in New York, want funds there
to pay for their goods-they 60 to the Bank and
buy a draft at premium, which to them is equal
to gold and silver; and this saves them all the eS-
pense of transporting specie, as also the trouble
and hazard attending it. So long as New York is
the great emporium Of trade, SO long will merch-
ants from all sections of the country trade there
and while that is the case, the Banks must deal in
Exchange; the wants Of the country require it,
and these wants must be supplied.
1t has been said that some of the Banks estab-
lished agencies in the West, and when their notes
fell far below par, bought them in. This, if so,
was bad conduct, and those who know it to be a
circulating the rumor; but should place it within
the range of investigation. Isuppose that Banks,
as we'll rs individuals, have a right to use their
notes wherever they can obtain credit, whether ut
home or abroad. The great mistake was in char
tering 90 many Banks. ... ..
As regards the late commercial crisis Q857)
the Banks were not the only parties at fault
There was n general disposition to speculate
throughout the whole world. The opening of Cali
fornia, commercially, agriculturally, ard in mi
ming operations; the temptations held out by open
ing up the Western Territories, and the bringing
in of New States rich in agricultural promises,
drew off o vast amount of capital from the East.
The many railroad enterprises were not without
their effect, and the great propensity for foreign
fabrics swellcd the imposts to such an enormous
extent, that o crisis was inevitable.
The products of the soil were never so great;
bat as there was not capital in circulation to pur-
chase at fair rates, the farmer refused to SELL
kept his crop on hand, and gave his note to the
merchant the merchant disappointed by his debt
Fors, gave his note to the Banks the Banks disap-
pointed by the merchant and others, we're unable
to redeem their promises to pay the different
States had to suspend and issue their promises,
and finally the United States, the richest govern
ment on the face Of the earth, had to suspend and
issue its promises, to be redeemed ut a future day.
The Banks of Boston and New York struggled
that each might hold out the longest, when de-
p~ositors fearing the consequence, drew out their
deposits, which created a well founded panic.
With regard to the action of the Legislature,
the great object Of all was to do what was right.
There was no lack Of patriotism and honesty Of
purpose, but the difficulty was to arrive atthe true
measures to be adopted. All was chaos. Many
avowed that they knew nothing Of the subject
We found our people in the midst of distress, sud
denly overwhelmed in misfortune, and totally at
their wits end to know what to do. Many Of us
thought that there were others besides the Banks
at fault; and our aim in the fear Of God, was to
endeavor to extricate the country from this sad
condition into which it had been 80 suddenly, md
so Unexpectedly precipitated. g
The subject was one on which there was much d.
versity ofopinion, and the cry was continuallysound-
ing in our ears, 'punish the Banks-punIsh the
Banks! !" Why punish the Banks? Were the Banks
the only parties at fault? Had the debtors of the
Banks settled their dues? Not at all. One Bank
in Charleston had falling due to it in one week,
Sl6O, 900, and only $4,000 of it was paid-just
about one-tenth part; and this is supposed to be
about the average amount paid by the debtors Of
the Banks. I ask again, why punish the Banks,
as though they were the only defaulters? The
Banks if mot paid in their own paper, have a right
to demand gold and silver, yet such a thing is new
er heard of. The Banks are to be punished, whilst
the debtors of the Banks are expected to go Scot
free. Were there no others besides Banks unable
to redeem their paper? Did the Banks of South
Carolina force their money upon fhe citizens and
compel them to 20 in debt? Was this r~evulsion
peculiar to South Carolina No! We saw that
the revulsion extended NIL over the commercial
world. Hamburg, Vienna, Constantinople, Liver
pool, Manchester, and London, all had gone down
in the panic. Every Bank in New England, New
York, Pennsylvania, Virginia, North Carolina,
and the most of them throughout Georgia, Ala
bama and Louisiana, had suspended. What could
be expectedof South Caroliha-that she could stand
out against the whole commercial world? Impos-
sible! Her chief fault consisted in holding out
too long-iu suffering herself TO be drained of her
specie, whilst all the Northern Banks were hoard
ing it up.
The bitterest foes in the Legislature, admitted
that suspension was inevitable. The leader of