Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1858-02-10

| paid pretty dearly 1or our experience.
We have had an awful lesson in the present
monetary crisis. 1t has caused widespread
ruin and distress throughout our land, and ha:
reduced to poverty some of the wealthiest mcr
camille houses in the great cities of the Union
But, however sld and severe the lesson, it, may
and trust WILL result in a blessing to our
country. 1t is, in all probability, timely i'll.
terfercnce of Providence to check us in mad
career Of speculation that would have resulted
in still greater calamity. Such was the seem,
ing ease with which money could be made by
gambling speculations, that all sources of pro-
ductive industry was in Il process OF rapid de-
clcnsion, and the cost of production SO increased
as to render renunerating profits almost hope
less. Even our great agricultural productions
the value of which is not affected by our inflated
currency, but regulated by the gold and silver
standard of other countries, are not exempt
from the enhanced cost of their production. AL
the appliances for husbandry now cost three
times more than the current rate Of lS43, When
negro follows were worth $500, now 81 POO
| mules, $50 to S75, now $500 to S225; anC
land more than doubled in the value But fol
the high prices that have prevailed for five
years past, for cotton, sugar, tobacco and rice
we in the old Southern States could not have
lived 1t now requires double the capital that
was formerly invested. to make bag of cotton
while we have no assurance of continued high
prices.
say til It this lesson, severe as it is, may be
intended to teach Us, what all men must now
be satisfied Of that the bank restrictions through
out the Cnitel States are incUmplctc--anl the
people of Soath Carolina can scarcely ial Il
see that ours are utterly worthless as safeguards
against suspension. Tie penalty Of per cent
on NIL Issues is mere lnockery, for the bills i'll
circulation have been pat fortl, in many instan'
ces on an interest Of ten, and are paying the
banks at least I per cent. for it cannot be
supposed that the capital which represents these
irrelleemable bills is living in the banks idle.
am, however, opposed 20 intlictng any punish
ncut on the banks nVr. 1t would be extreme
Iy hard to punish bank that haa adhered
throughout, to Il prudent Legitimate Course oi
banking, equally with the reckless. that seemed
to have Il perfect disregard Of the relative quar-
tity Of specie. compared with its liabilities.
believe that many OF onr banks are as iudiciouiy
managed as any banks can be, and deserve NJ
punishment for the past. 1t is extremely dilli-
cult for the most prudently managed bank, tG
avoid being drawn into such 4 sweeping gu!; It's
"
Suspension of nearly all our banks Suppose
one to tie located in Charleston and famed for
close and nlicous management; she may keep
:: dollar in her vaults for every paper dollar out.
This very fact is calculated to make such Ill
institution avnrite bank for collections and
tlaposites; ami, from courtesy to her ncighbor-
ing banks. as well Us a positive duty to her
customers, she in bound to take for collections,
Ill l,,,,l IL,
and. to refuse to take the bills of any one OF
the weakest banks in the community in 4 time
Of depression and excitement, would at once
create distru>t and cauSe IL run for specie, and
Il general suspension wuald follow. carrying
with it the ba:lk that hal been least Of all i'll
stl,lmental in bringing about 4 necessity To- 4
suspension, and not llali culMb'c as some OF
the banks who had, by sheer g"u} l"cs, hcen
able to weather the storm. There are degrees
of crininmlity in the act of suspension t!a;
ought to place almost every bank OH I separate
AMI distinct footing. Some banks suspended
purely from Il belief that general move OF the
kind would relieve the pI eSSure AMI enable the
produce Of tic country TO 90 forward. All ot
U;lr old banks, which had given such Il high
character to S. G. bank bills, have been, OF re-
cent years, driven by new competition, to aball-
don, in some degree, their old legitimate mode
of banking an,l, aS the State has been instril-
mental in bringing about the clements Of SllS-
pension. we should be very careful how we use
the rod of correction; but, for future safety,
incorporate in their charters such restrictions
Il, will prevent future occurrence. Flee per
cent yer aaRnm on the circulation, during the
period of suspension, is Il slight punishment.
and affords no compensation to the injured BILL
holder, who has to pay his debts in good money.
and a heavy premium to get it; and, aside from
other considerations, the banks might many
times bc SO crcumstanced, that it would be
greatly to their interest to suspend, and pay
such a forleturc-and, but for the consequences
to the community, it would be just and proper
to exact the penalty now.
The subject of banking anil currency is so
little unders TODD, that it should he approached
with the greatest possible caution; and We
must all bear in mind, that any punshments
inflicted on the banks, at present, only tend to
create new difficulties and cmbarrasslncntS
throughout the community. 1t is all important
that the banks should be left free to act Us they
think best They are all anxious to resume,
and will do So Us soon as circumstances will
permit and any punishment that we may in
tlict, for the purpose of coercing speedy re-
sumption, will fail to accomplish the olject,
bring trouble upon tue community, and disable
the banks to make the requisite preparations
for general resumption, which cannot be
brought about in any other way than by an en-
pausiun Of bank issues, SO as TO enable the pro-
tluce of the country to come forward, and also
to place the meals in the hands of every body
to pa their debts, which is now the uDpcrmost
thought in every mars mind.
However much am disposed to commend
the Comptroller General for the prompt dis
charge Of his duty in executing the law, he
l,evc it would he wise legislation tn refund the
money collected from the banks. Otherwise, it
will c;.usc stringency in the money market
that ought not to exist; for banks will not loan
their bills when they have to pay 5 per cent.
interest OIL them. The State is worse off than
tue banks. Situated as she is think it is en-
tireiy beneath her dignity to call upon the
banks to pay the forfeiture. The State is una
Die to pass he: bonds at par, The suspended
bank paper Is more current than Stitc credit
no man will give the suspended bank bills for
State bonds ut ptr. She is in a state Of slls-
pension herself. Her own bank lcd of, and
was tue first to suspend. She is paying the
interest on her public debt in her own ire
dccmable bank bills. Her laborers on the State
Capitol are paid in the same way and, aside
from all this, she has been instrumental herself
in bringing this state Of things upon the banks,
by the creation of new banks when and where
they were not needed feel perfectly conf
dent that if the State had net increased the
bank capita! Of South Carolina since 1870, our
banks woi,id now 10 paying specie for their
hills aud dining all that nny snt nf hanls cnull