Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1858-02-17


banks, remote from on emporium,
that were then chartered. commenced the work
ui initiation Some ol them were So located rs
to ic difficult Of access and were consequently
seldom called OH inr specie. They were, il
some measure, unbridled, and issued their bills
without limit. The profits derived from such
Il course Of banking raised the expectations of
all bank stockholders, and eventually led all
bank-mana.crs to look around and sec if they
could not grasp new sources OF profit. Ttcn
came in the lcw banks chartered since 1880.
Their competition has nearly uproo:ed all our
old modes OF doing business, and the idea has
become prevalent, that to sit down and do moth
ing more than the legitimate business Of the
country. is downright fogyisln. Accommo1a-
tons at +, 6 and months to merchants, arc
now going into Gisrepute, although they are in
dispcnsable to au importing business, and actu-
ally necessary to the prosperity OF Charleston,
ant, our country; and ii the managers Of Banks
were governed and moved but by srich cOnsd-
erations, things would be very different. But
such is the pressure on the banks fox high pro-
fits, and consequently rapid business, that the
most prudent managers lave been driven and
drawn into the general current. What is the
remedy for this terrible state Of things? The
exchanges and monetary affairs of a country
are dangerous subjects to lcgislate upon-dau-
ceruus for the reason, that there are SO few who
understand them. The subject is so complica-
ted that the wisest tinancers Of the world if
congregated together here, would widely differ
IS to the necessary measures Of reform.
Taking this view of the subject, | doubt
whether my four first propositions will not cover
tae whole ground, and make all the restrictions
which will be necessary Or profitable. That is,
to abolish the tlsury laws, raise the rate Of in
terest for tho hunks, require them to keep one
dollar in specie for every three Of immediate
liability. and to issue no bill of smaller de-
nomination than $50, and damages for suspen-
sun If the three latter were adopted by all
the banks in the United States, there would
be an end to excessive bank capital, to hank
paper mutations, and to bank suspensions. Drive
out the small bills and you will work won-
derful change, that will at once remove the
bankers objection to so large specie basis !;
for large depoSite account would seem to
render it difficult matter to have the ncccssa-
ry amount of specie. If We have no bank bills
smaller than 500 the under-straia Of our cur
rency would be gold and silver, and the banks
would, in all probability, receive on deposite SO
large portion OF gold and silver, as to relieve
the difficulty.
Now, all must admit that Banks arc neccssa-
rv. Without them, our extensive country, and
wide spread commercial operations, could not
get along. Banks are actually necessary as in
tcrmcdiate agents between the far-away interior
producer, and the shipping merchant and foreign
purchaser, as well rs the manufacturer and in-
porter. What we have to guard against, is, the
excess of bank capital, and their mixing up
with the local business of the country. If ever
there were a bank-ridden people, they may be
found here. There is scarcely an individual in
the United States, however humble that is not
bank creditor, and forced to be so by public
opinion. If he has dollar in his pocket, a
hundred to one if it be not the Indebtedness Of
bank There is not a tradeSman or a huxter-
woman in the country, who is not forced to be-
come the creditor Of the banks. The populari-
ty of banks, and bank paper has led our country
into extravagant expenditures on borrowed
capital, that so years will not pay. Works Of
the most gigantic nature have been erected
where they were not needed, and where it will
take 50 years to make population that will
make them profitable to the owners. We have
more railroads in the United States, than will
be necessary for one hundred and fifty millions
of people, More than three-fourths Of the rail-