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


what my friend and colleage ons the other side
(Mr MitchelI has properly called Spring.
This spring applies itself to the most powerful
Instinct Of the bank-its interest. 1t simply
makes it its interest TO return to- its duty"
Il -
cit was not, however, until the courts Of JUS
tce had formally given judgmentEof forfeiture
against our banks, that any Of them accepted
the provisions Of the Act of 1910. But since
that period, all have come in, and for nearly
seventeen years they have been deriving the
profit allowed to them from providing for tue
currency Of the State. The Legislature pre-
scribcd no form; it simply required converti- |
bility Of notes into con and left to the banks
the amount of coin to be kept. The tables,
above referred to, show how very stinted has
been this supply, and how the banks have re-
sponded to the confidence reptoosed in them.
And now, when for the first time the other side
Of the contract is to be put in action, we are
beset OH all sides with their emissaries and
urged to repeal or suspend the law.
"And what are the reasons urged feTs such
a suspension or repeal? The firstis, that un-
less We do so, the banks will not issue the cur
rency requisite to bring to sale, 1.-The planters;
crops. This reason comes with a marvelouSly
i'll grace from those who for seventeen years
have been receiving about 100000 per annum
from our people for providing them with a cur
rency. Why will tue banks decline furnishing
the amount of currency? Because they will
only make one per cent. upon it. For how long
a time would this currency be required, and
how much would it be? Certainly not more
than two millions additional, and only for three
months. The interest on this amount for this
time would be $3.50, ,0O0-every dollar of which
they would receive from the people. But be-
cause they would have to place back in the
Treasury So, 900 out Of this 10000, they refuse
to perform solemn contract, undeS which they
have been receiving about 100000 for seven
teen years.
"But do the banks receive only six per cent.
upon the money they issue to purchase the crop?
Every one knows that the crop is sold abroad,
and is represented by bills of exchange, and not
by promissory notes. The premium on the
purchase and sale of exchange is, therefore, the
measure of the banks profit, and 0. moments
consideration will show that a. large surplus will
remain to them over the amount to be paid into
tho public treasury.
"AnotLer argument advanced in favor of the
suspension of the act of 1910 that it has proved
Intellectual to prevent suspension. The very
structure of the act shows that it did not ex-
pect to prevent all suspensions. Itwas evident
ly designed to check them, and to induce the
banks to resume their obligations to pay coin as
speedily as possible. If tue Legislature will
now have the constancy to test the matter, this
will be found to be its silentand certain effect.
As for the objection that it has not prevented
suspension, as we'll might yoIrepeal your whole
criminal code. Murders, robberies and forge
rcs continue and will continue, in spite OF hu-
man punshments. But in whatc ndition would
the people be who, on that account should re-
peal all laws for their punishment?
"This suggestion that unless we suspend the
act of 1910, the banks will not furnish a curren-
cy to move forward the crop, Is somewhat more
revolving, as it assumes to my view the aspect
of threat The first hint Of it seems to come
from the memorial of the suspended banks.
They say that should the penalty of interest
on circulation, continue to be exacted from the
suspended banks, it must impose upon them a
course of stringent contraction. They must call
upon their debtors for payments that will cause
general embarrassment, They must, as speedi-
ly as possible, withdraw their notes which now
constitute the exclusive circulation of tile State
Under such cour>e they can do no new busi
ness and the consequence must he disastrous in
the extreme to the customers Of the banks, and
to the value of the stabi2 products of the
States
aGentlemen, such as the Presidents of these
banks, nevor thFeateH in terms. They merely
give cour tcous intimation OF unpleasant pnnse-
quences which may follow certain acts. But
let us enquire o moment Of these gentlemen,
even putting aside their obligations to save their
country from these awful consequences what in
fet wonll it COST their banks to furnish the
means necessary to lring forward the crop.
They arc already liable for the issues now in
circulation. How much nsto busiMsss must they
do to save the value of the staple products Of
the State? have already shown this amount,
and that there would be no loss st ALL unless we
adopt the bank phraseology, and call that loss
which Apdtr certain circumstances thpy are
bound to refund.
"But none know better than these memorial
ists, that so long as the Bank Of the State is
under suspension, the Withdrawal of the circu-
lation of the other banks would be altogether
harmless. No:bing would be easier than for
the Bank Of the State to fiji up the vacuum, and
thus take the proiisof the whole circuation and
some slight approximation to justice would then
result by throwing into the bank the profits
which, under tile act of 1910, should have gone
into the public treasury.
sand now, Mr.. Chairman, the problem to be
solved is, whethor tho p1mhnpl power Of the
banks will not prove an overmatcl for the COIL
stancy and firmness Of the Legislature The
time has come to hold the banks to their duty
and to the performance Of their engagements,
by whi1h. for the first time, they are to assist
the community without pplsent gRin, For sew
entcen years hey have been making large prof
its, declaring large dividends, and even now they
have yet on hand reserved profits. They have
suffered no losses-they have already reduced
tue currency With sqldepness unprecedented,
to nearly the lowest paint Of eQntraetpnI they
have so managed that currency, as to spnd away
the entire specie basis, and now when they arc
compelled to declare themselves unable to rc-
deem their obligations In coin, thoy turn upon
the public authorities, and upon pain of refusing
even that paper currency which is now all that
we have, they demand repeal or suspension of
the only checks which remain against an ncon-
vertblc paper currency. l say the only checks
which remain. For the penalty of forfeiture
which existed before the act Of lS40 has been
released by the acceptance of payments under
that act; and now if the Act of 1910 be re-
moved, the banks are left in uncontrolled pos
session Of the currency of the. State. Here
then is the real issue. Will the State follow
the racillatng snd temporisins course of other
Legislatures; or will she stand firm, and insist
upon the faithful performance of all contracts
by banks as we'll as by Individuality the
strong as well as by the weak? venture the
prediction that constancy, on the part Of the
,ublic authorities will bring about reSllmntion