Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1858-06-03
Report OF the Comptroller General.

Report OF the Comptroller General. r.
The Banks of this State have all accepted the
provisions of the Act Of December, 1910, to pro-
vide against the suspension of,specie payments
There has been as usual an extraordinary amount
Of speculation in domestic Exchange" and in
fact a use of their funds generally by the private
Banks in every way injurious, land that will ulti-
mately prove disastrous, in the extreme, to all the
industrial pursuits and interests Of the State. At
the commencement Of the fiscal year all the Banks
in this State had an aggregate liability of S32,-
$50, 23l AZ. To meet this liability their assets in
specie was 81, 1888, 2OS 10, with 1886, 222 35 in
Domestic Exchange, and S275, T76 46 in Foreign
Exchange, which the Banks claim to be the equiva-
lent of specie, but which can in no emergency be
made available. At the same time the amount OF
deposits was So, 258, 844 go nearly three times the
amount of specie in their vaults, and therefore IL
able at any moment to be driven into suspension
by their depositors, were o combination formed for
that purpose. On the last day of July the total
liabilities of all the Banks was $50. 519, 1873 81,
with specie only to the amount of 81, 207, 289 II,
with O. circulation of ST, 1923, 627 81, and deposits
to the amount of So, 548,3 1897 ID. The amount Of
Domestic Exchange then on hand was $l0,379,-
SOL Oh, with but S427, 494 al of Foreign Exchange.
Again at the close of the fiscal year (30tb Sep.
tember) their total liabilities amounts to $33, 005,-
739 81, with only 5000. 800 76 in specie. They
then had Oh deposit ST. 39, 2s4 21, nearly treble
their amount of specie, whilst their circulation
was 81, los, 10 81. with Domestic Exchange to the
amount Of $40, 1856, $50 90 and only 1921, 563 Is
in Foreign Exchange. This showing is truly alarm
ing to the financial interests Of the State. The
whole Of our Banks are in the hands Of mere spec
ulators, who w%antonly disregard the teachings of
experience as to safe banking, and hence our
Banks are at any day at the mercy of their de-
~positors. The Comptroller has so often brought
these speculations in exchange to the attention Of
the Legislature to no purpose, that he has des-
paired of seeing any wholesome law made to re-
strain them. He will not, however, shrink from a
faithful and fearless discharge ofhis duty, although
be has not succeeded heretofore in arresting the
attention of the Legislature. The remedy is in
YOUR hands, and Notwithstanding the arrogant
claim of the private Banks, that they have power
under their charters to do as they please, and ore
not amenable to the public for their acts, there is
little doubt but the courts of the State would soon
bring them under the law of the land, and teach
them to know that they are public institutions
with certain private rights, and that they are at
least not omnipotent to do evil. Whatever rene.
DIV YOU may, in your wisdom, apply to arrest their
| abuses, in the Judgment of the Comptroller should
he prompt, sharp and severe. If the full measure
| of the punishment was melted out to them that
they deserve, there IS not one OF the new Datcn OF
Banks chartered in 1852 but as richly deserves o
forfeiture of their charters for the course they
have pursued, as any political traitor ever merited
decapitation for treason to his country. They
have prostituted the former well tried and legiti'
mate system of Banking in this State to one Of
mere speculation in exchange or in other words,
they have changed the legitimate system of bank,
ing, and their Banks into mere shaving shops and
at their own counters, or through the agencies al
every point in Or out of the State where their own,
or other citizens papers or sight drafts, or drafts
on time, can be bought on speculation, until thel
operations would shame the denizeps on Wal
street in New York, or the Bourse in Paris. There
is no citizen in South Carolina more familiar Will
oil the facts set forth in the petitions, memorials
arguments and entreaties made to the Legislature
in 1852, to induce that body to grant the charters
for these institutions, than the present Comptrol
Ter General, who was an actor and active particl
pator, both as o member of that body and as char
eed with the interests of those desiring q Bank
and it is NOW in his power to give q most minut'
and detailed account, or history, Of the circum
stances and facts under which they obtained thel
charters, not one of which has performed the func
tions for which they were created, orredsemed tn
pledges made to obtain them. They are not, ent
cannot be called, Banks Of loans, deposits and DIS