Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1858-08-26
TADvgRTIsEMEHT.
TO THE CITIZENS OF YORK DISTRICT
B. ]. W.

banks; Auu W ihhhe niS EeP'y h'"y ""e' P''P>''
to the published article of Col. MoCAw on this sub,
iect Whilst do not liberty to disregard such
public requistion, must be permitted to reite-
rate my utter repugnance to keeping alive this
controversy over past issue. But to my Fellow
Citizens am responsible for my past conduct in
representative capacity, and to their enquiries
touching matters of public or political nature,
hold myself in readiness at all times to answer;
otherwise Ishould be unworthy of their confidence.
Before proceeding to give my opinions relative
I'd the suspension of the second section of the
Bank Act of 1910, Twill consider very briefly and
fairly, some ofthe positions taken by Col. McCsw,
in the article alluded to. In the outset Of bis
communication, we might infer, from the language
employed, that his object was to charge the blame
of the late financial revulsion upon the Legisla.
ture, rather than to the derections of the Banks
at least the expressions used are scarcely suscep,
tible of different Interpretation. When advert
ing to the ssrecent crisis" he uses the following
words: "It will be sufficient to refer to the cause
contributing directly to this result, to wit: the
large increase and expansion of banking capital
for series Of years, beyond the point Of redemp-
ten in gold and silver, not only in South Carroll
na, but throughout the United States, and then
too sudden contraction of issues." Now it is gen.
orally known, suppose, that Bank capital is cre-
ated only by the Legislature, and the amount Of
the capital Of every Bank is fixed by the charter,
or limit of the extent to which it may be incress-
ed by the Bank itself, as in the case of the New
berry and. Fairfield Banks. For the expansion
therefore, or rather increase of the Bank capital,
the Banks are not responsible. 1t would seem,
however, that this construction is negatived by
the latter clause Of the sentence, "beyond the
point of redemption in gold" &c., and that Bank
issues we're meant instead Of capital; for to say
that the capital of q Bank (i.e. gold and silver,
is so expanded as to be irredeemable with gold and
silver, presents q pnlpable solicism Suppose,
however, the former construction the true one, ]
must be permitted to remind the author, rs we'll as
Others that the Legislature, with the exception Of
having chartered the small Bank Of Georgetown with
capital of 5000 900, has neither increased nor CT
panded the Bank capital in this State since 1852 ;
and if the late monetary revulson is attributed
to the action Of the Legislature so far back, in my
Judgment, something more than mere assertion is
required to bolster the proposition. Iknow that the
opinion prevails that the chartering Of the eight
new Banks in 1852, has contri buted mainly to the
late financial troubles. 1t may be true to great
extent but regard the great mischief as arising,
not so much from the number Of Banks chartered,
as from the corrupt system Of Banking heretofore
permitted; and had they been properly restricted
BY the terms of their charters, and confined to the
legitimate business Of Banking, they wonld never
have been instrumental in bringing about the late
panic; whilst two or three Banks, permitted to
revel in the luxury of issuing ad E6itum any mum
Der Of bills, without being required to keep suf-
iciency of coin in their vaults to redeem them,
would certainly bring down, sooner or later, finan-
cial disasters upon the country. The error of the
Legislature was, and always has been, in omitting
to provide more stringent discipline for the reg
men and regulation of these unscrupulous institu-
tions. presume that it win hardly be question
ed that the late severe panic experienced in South
Carolina, if it was not solely and directly produ-
ced, was certainly aggravated by the extravagant
imitation and sudden contraction Of the currency,
and by the abominable practice pursued by the
Banks of shaving, kiting and broking, modestly
yceped "dealing in Domestic Exchange"
A somewhat lengthy transcript of Bill, look
ing to thorough reform in our Banking system,
introduced at the last session by Mr. Memminger,
is inserted in the article before us with some COM
ments upon its provisions, and objections to the
policy and propriety Of its early adoption by the
Legislature. Not perceiving the necessary bearing
of this Bill upon the question in controversy, to
wit: the suspension Of the 2nd section of the
Bank Act Of 1S40,I will not endeavor to discuss
its merits besides have no inclination to enter
the lists with the able progentor of this measure,
for do not know that would be likely to bear
off any laurels from mental grapple with Mr..
on this subject. If Mr.. Memmiuger's Bill and
the suspension Of the act Of 1910 were the only
alternatives, then admit that propriety mani
festly arises for the consideration of the Bill
This was not the case. THE issue before the Leg
islature was not the adoption of this Bill or the
suspension of the law of 1840, and if neither was
agreeable to my convictions of policy, / should
have voted against both schemes, for it were far
better to have done nothing than to have legis-
lated unwisely. If both projects, in the main,
had been acceptable to my views, should have
advocated both, with the necessary modification
of the one, as to render its machinery compati-
BILE with the operation of the other.
"that money has not been more plenty and cotton
advanced in price since the passage of the Act in
December last" WE'LL 1 agree that it is entirely
useless to argue proposition, the converse Of
which is demonstrated by simple reference to
figures. In November last, the total circulation
of all the Banks according to the sworn return of
their officers, was $6,297, $1,000. By the same
returns the total circulation on the 1st January
last was reduced to S6,ls5,s40,0O, showing an
actual decrease of SIP, $3.50 in one month after
the adoption of the great remedial scheme, which
it is gravely alleged made money more plentiful,
and did in fact give substantial relief to the coun-
try from the severe pecuniary pressure. This is
universal clamor with the Bank party, but they
will find the problem hard to solve to the public
satisfaction, that there is more money in roll Of
onp bundred dolo ~ a os.o. 6f,v bo hepn ahatract