Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1858-05-20

ding the operation of the Act of 1910, and reliev-
ing the Banks of the payment of five per cent.
to the State, was a most GORGEOUS bluuder, high
ly mischievous in its tendency and effects. and
inshort, . stupenduous fraud upon the Common
wealth Of South Carolina. 1 use strong Ian
guage, for l feel the truth of what I say, and
I am only surprised at the pertinacity of some OF
those who advocated, or voted for the measure, IN
stubbornly adhering to their first position, when
subsequent developments can not but have conyln-
ced any rational mind, thatit was an unmItigated
error on the part of the Legislature. accord to
,'.the Delegation who voted for the relief" Of the
Banks, all the sincerity Of purpose they would
claim to themselves in supporting the Bill
meekly asking that the same allowance may be
melted out to the Delegation who did not vote for
the measure. ! did not believe then that the
measure was a wise and polite one, and now I
can say with truth, I know it.
Perhaps, to place before you, h Reissue in some Of
its important aspects, as presented for the deci-
sion of the Legislature, and upon which resulted
the enactment before referred to, it might be pro-
per to say something Of the laws Of South Carroll
ma touching the suspension of specie payment by
the Banks; and to givea short history Of the cir
cumstances by which the Legislature was probably
Influenced to its final action.
Before the enactment Of the law Of 1910, the
penalty incurred by the Banks for q refusal to re-
deem their notes with coin, was q forfeiture of
their charters; and consequently, they were COM
PEELED to wind up their affairs and cease to do o
banking business. This appearing to the Legisla-
ture to be a severe penalty, and likely to result
in no great good TO- the,community if enforced, a
lighter penalty for such suspension was devised
in 1910; not with a view to punish the Banks for
sdereliction of duty as has been supposed, but
for the wise purpose Of preventing suspension If
possible. By the second section Of the Act Of
1910, all Banks which refused to redeem their
bills with coin, were made liable to pay monthly
into the public Treasury. at the rate Of B per
cent. per annum, on all their notes in circulation
during the period Of suspension, and the Comp
troller General required to see to the collection,
50. st the opening Of the last Legislature, the
country was, and had been suffering from a severe
financial crisis, superinduced in a great degree, if
not altogether, by q reckless expansion Of issues
on the part ofthe Bauksfor year ortwo precedipg,
followed by q sudden contraction q few months
previous. Eleven Banks in this State had sus-
pended ; loud protestatious were uttered against
their abuses and conceptions friends and foes
Of the Banks united in c~ensuring the extravagant
speculations and Illicit traffic in which they had in
dnlged, and q number of Bills and Resolutions
were introduced looking to a correction Of the e1-
listing evils and to wholesome restrictions upon the
banking system. At the same time, however,
counter measures were urged by the friends of the
Banks, asking a Suspension of the Act Of 1910 re-
curing the collection Of s per cent. Of the sus-
pended Banks, and alleging that it was q measure
Of relief to the country. Thus the issue was
made. In the progress of the discussion which
followed, the Banks and their friends Il may say
the Banks, for the House. was crowded by Presi-
dents, Cashiers, &c., during the discussion) prom
ised faithfully that they, if relieved of the pay
ment of. the 5 per cent, could and would put out
. suficiency Of their notes, to meet the pecunia-
ry necessities Of the couutry-would furnish the
necessary capital to purchase the last crop and
resume specie payment in three or four months
at the same time indicating their very hostile pur-
pose Of withholding their paper if denied the pro-
posed relief. This sophism, for the time, prevail
ed over wiser counsel; many honest members were
cheated and overresched by these specious pre-.
fences, and thus the Banks succeeded in driving q
bargain in the legislative Halls of South Carolina,
totally eclipsing the most magnificent share, ever
known in the annals of Wall street brokerage.
It must be admitted, that the memorials Of the
Banks, which covered the tables Of the members,
supplicating relief from the Act Of 1910 the
loud reservations Of the friends Of the Banks that
they could not survive the rigid enforcement Of
this law, accompanied by the strongest assurances
that, if relieved of its operation, they would sup
ply the capital for the purchase Of thecotton crop.
and after ell, resume specie payment in 8 or 4
months; were well calculated to influence honest
and unsuspecting gentlemen to vote for the meas
ure sought. Notwithstanding the seeming sim
cerity, with which these complaints and promises
were made ; it could not but strike the minds Of
some that they were hollow, inconsistent, and in
sincere. How could the Banks have performed
these impossible undertakings ? If they could
not redeem their paper when they had in oircula-
ton only seven dollars to one of coin in their
vaults, how could they redeem when they had in
creased their circulation ten, to one? 1t strikes
me that q very slight acquaintance with spike"
would have served to detect the faithlesness Of
such pretensions. 1t is true, if the Banks had,
after the passage. of the Bill discounted freely,
and increased their circulation as they had prom
Used, it might have operated as a temporary relief
to a portion of the State and it would have PAL
lated their perfdy in failing, up to this time, to
resume specie payment. '~1nstead Of this, however,
they have in utter contempt Of all their sacred
pledges and high obligations to the State and peo-
pie, neither increased their circulation nor re-
sumed payment in specie. On the contrary, they
have designedly contracted their issues, and there
by caused o greater scarcity Of money than exist
ed before; and more than all, to make q deserved
mockery Of the Legislative drama of last Winter,
they have declared dividends as high as 8 per cent.
This brings me to notice another extravagant
and unphilosophicsl conclusion Of the writer
He says, W find our country relieved beyond
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