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

let that pass. The Banks whi,h paid this penalty,
petitioned the Legislature'to have it returned
The Legislature refused. Does that look, as
though they were permitted, "without obstruction
to disregard the regulations Of low, and in fact to
usurp the powers of legislation"
The Aotprovides that judgment against Debtors
shall not be enforced by a Bank whilst in a state
of suspension-that is, no Bank whilst 1t does not
redeem its notes with specie, shall have the privi-
lege of collecting a debt, unless where other cred
itors are executing Il mans property, in which
case the Bank is not inhibited from putting in Its
claim. Does that look as though Banks were per-
mitted, "without obstruction, to disregard the reg
~ulations of law, and in fact, to usurp the powers OF
legislation" Itlooks to me very like obstruction
obstruction of q very serious nature, obstruc-
ton with q vengeance!
The Act provides that after January I, 1850, II
the Bank notes issued by any Bank, shall, for more
than thirty days, exceed three times the amount
Of gold bullion in the possession Of the Bank at
its Banking House, the Bank shall forfeitfve hum
dred dollars for each successive day during which
such excess shall continue. The officers Of the
Banks shall make returns upon oath every week.
Call you that permitting the Blanks, without OBJ
struction, to disregard the regulations Of law,
and in fact, to usurp the powers Of legislatiouf"
The act provides that from said 1850, no Bank
shall issue o note of less denomination than ten
dollars upon the forfeiture Of one hundred dollars
for every such note. 1t provided for q repeal Of q
section of an Act ratified December 10, 1852, which
prohibited one Bank from paying out the bills of
other Banks, except in settlement. II is general
ly conceded that this prohibition should never
have found q place in the Legislation of the State.
During the panic q large amount of bills acoumu-
lated in some of the Banks. As no settlements
were, to be had, this accumulation was q dead loss
to the community as we'll as. to the Banks which
held these notes. The Bank Of Charleston, which
never suspended specie payment, but withal q
very dangerous institution, having q capital Of
three millions one hundred and sixty thousand
dollars, (SS, 100, OOO) is capable, if so disposed, of
driving any Bank into liquidation:a pet too, Of
some Of the fercest opponents Of the Country
Banks-for there are men in Charleston, who think
there should be no Bank out of Charleston, saxe
perhaps by special grace, one in Columbia. The
Bank of Charleston, having o large amount Of
bills Of other Banks assumed the responsibility,
paid out these notes, and advertised the Legisla-
ture of what she had done. 1t has been affirmed
of another Bank, a specie paying Bank-one safe
beyond all controversy-instead of paying out the
bills of other Banks directly, accomplished the
same thing Indirectly. Her chief officer would
make a special deposit, in the Branch, with the
express understanding thsthe was to check upon the
identical bills deposited; so that o customer apply
ing at his counter, was informed Of course, 'weare
not discouuting; but will take your note, and hav-
ing q special deposit in another Bank, will give
you o check there" This may have been SO, or
it may not have been so; certain it JIG, that the
clause repealed; could have been evaded in this
way. - ID.
Finally; the Act declared, that by the term
'sbank note, shall be included all bills, checks,
notes or other obligations ofany bank; made pay
able on demand, SC. &C."
Such was the issue presented, and such the ac-
ton had at the: last session of the Legislature
No man can tell what it may be at the next. It
may be that the Banks will have abused the favor
of the Legislature, by d~eferring the resumption Of
specie payments in order to make money by the
suspension. 1t may be that the Bank, Of the State
may so increase its circulation asto make her re-
sumption impossible, and it may be for the other
Banks to resume without her, soia to discredit
her bills, would be an uuwise policy; audit may
the Bank of the State by compelling her to advance
money for the State, as will seriously cripple her
in her efforts to resume. The carrying out Of the
reforms commenced, will devolye upon the next
Legislature. = .n. "a. 49,, ~ .
There ore points for future discussion, and are
somewhat different from the main question pre-.
sented last fall, which was, whether the suspended
Banks should be relieved from the penalty imposed
upon them Of FIVE perl cent, per annum, on their
circulation, and go into liquidation; and whether
the specie paying Banks should be permitted to
pay out the bills Of suspended Banks. -, ,4
I have never doubted the wisdom Of suspension
under the circumstances, nor the .propriety Of
relieving the country by extending Legislative aid
to the Banks. We find our country relieved be-
yond the most sanguipe expectation, and our pro-
duce commanding remunerating prices. lam salts
that our Legislature was wise-has saved
most of our mercantile houses from protest, and
prevented many persons who are IN debt from be-
ing sold out. And further, T am satisfied five
would take, to ourselves a 1.-THE Of the blame we
attach to the Banks, we would better subssrve our
own interests and the interests Of our country
which we profess to love. -
I send you an extract from q letter from q ven.
cradle Senator at Washington, which hope you
will publish in connection with this. Perhaps, at
a suitable moment, when your columns are natso
crowded, 1 may ask you TO publish Mr.. MEMaIs-
GERS speech, the memorial of the Banks, and
some other papers. All I ask at present is, that
you will publish the extract send, which embra-
ces oil that is said on the, su~bject-and is. copied
rsr5atim ct ltratim. Coming from man occupy
ing the position that be does-accustoped for q
portion Of his life to investigate and weigh
well matters coming under his review venerable
for years and noted for his love Of country, I trust
it will receive the favor, to which it is so well en-
titled. Your friend, W.
SATURDAY, April "a, 1858. .