The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1868-08-20
The bank Of tho state swlndle.

The Bank OF the State sw1ndle.
The bill now before the Legislature Of
Janney's Hall, Columbia, to close the Ope-
rations Of the Bank Of the State, is one Of
the most barefaoed attempts at swindling
which. have ever come under our notice, and
it is not surprising that the ''ring" in Co.
lumbia have been anxious for months past
to buy up all the bills Of the bank they
could find in the market. "a. - ..=.,,
In 1888 an act was passed for rebuildingthe
City Of Charleston, and under this act what
were known as the fire loan bonds were au-
thorized to be issued. The Bank Of the
State was made specially responsible to!the
holders of these bonds, being required to
provide for the punctual payment Of. the
principaf and interest These bonds were
negotiated by Barring Bros. & Co., of Lon
don, England, and the proceeds remitted in =
sterling exchange = zs9g. b. III y
In 1866 an act was passed by the State
Legislature, appropriating the assets of the
bank, first to the payment Of the fire bsn
bondholders in Europe, second TO those in
the United States, and third to the bll-
holders. =. r., O..
In 1866 DABsEY, MORGAN & Co. filed q
bill on behalf Of the billholders, praying
that the act Of the Legislature above re-
ferred to be set aside, and asking that the
assets be appropriated, first to the billhold-
ers, and second to the bondholders. a
In the same year Barring BRos. & Co.,
as the representatives. Of the fire loan bond
holders, made answer, sustaining the va
idity and equity Of the appropriation made
in the act Of 1865, and the conformity of its
pledges to those contained in the fire loan
act.
The court heard the pleadings, and made
an order, of which the following is the most
essential part:
STATE OF SOUTH CAROLINA, CHARLESTON
DISTRICT Between Dabney, Morgan & Co.,
and the President and Directors Of the Bank
of the State Of South Carolina, the Attorney
General Of the State OF South Carolina, Barring
Brothers & Co., and others.-Decretal orders.
-r,
s. It is further ordered, that to avoid multi
plicity Of suits and waste OF the fund, until
such hearing can be had and decree rendered
in this case, all creditors Of the said corpora
tion, whether billholders, bondholders or
claimants in any other form, are enjoined from
all proceedings in law and equity against said
corporation, it's property or assets, except as
parties to these proceedings.
6. 1t is further ordered, that In considera.
ton OF the said injunction Of the creditors OF
said corporation from bringing suit against
the same, the said corporation and the said
Charles NJ. Furman and Thomas R. Waring
are hereby enjoined, until the said hearing
shall be had and rendered, from paying over
any portion OF the assets moneys deposited
since December, 1865, alone e1cepted) Of said
corporation, except for current expens ses, in
cluding counsel fees for conducting the de-
fence of this suit, to any creditors OF the same,
unless by special order Of the court, without
prejudice, however, to the right Of these par
ties TO collect debts OF the corporation, and to
change the form Of assets in possession.
fsigned) J.P. CARROLL. .
Charleston, s. c., March 8, 1858.
The proceedings were at this stage when
the so called Legislature at Columbia steps
in and introduces bill which sets aside all
these contestants, seizes all the assets, dis
poses of them at the discretion of the Gov
ernor, and places them in the treasury.
The following extracts from an able and
exhaustive communication upon this sub
ject, published in the Courier Of Monday,
expose the whole nefarious scheme:
What State, going back thus to the morals
OF bold Robin Hood, can expect to maintain
credit in the modern commercial worid9
So much for principle But practically,
what q time to order the sale Of such assets as
the Bank holds None Of these assets will
sell at par, and few at as much as fifty cents OIL
the dollar. Without, too, the plea OF "neces-
| sity |" for the proceeds are to be deposited In
tue Treasury, and a a''separate account" kept
| of he fund.- withdrawing it thereby from i'm
mediate use. See, too, the discretion glvsn to
the Governor in the sale OF assets to the
amount of 81, 900, 600. at o time when stocks
rise and fall twenty per cent. in day Were
| he as enterprising end as corrupt ss Spoon
Butler, lie might, If he pleased, in few weeks,
| become almost as rich.
| Section of the bill adds to what has hither
| to been considered as the State debt about one
million and quarter of dollars. If this pro-
ceeded from an extreme sensltiveness as to
national honor and o scrupulous regard to
good faith, it might, perhaps. increase public
confidence rather than impair 1t. But upon
what ground is it that "honor and good faith"
are less involved IN regard to bills not filled in
the Court of Equity, on or before !st june,
1861 than in regard to those which have been
so filed? So far as the Site is concerned, the
obligation is the same. The inference IS not
o forced one that those persons not tlllng the
bills they held con6ded solely in the honor
and good faith Of the State," while those
filing" distrusted the State, and sought to
subject the assets of the Bank. Yet the bills
filed are to be 'tunded," while the bills MT
| filed are rejected.
Will it not be suspected that egood faith and
honor" are less the inducement than the re-
ward Of "a ring" of spccuators, who, hav,,
ing bought up, at song, large amounts OF
bank notes, aud having hitherto co-operated
to subject the assets OF the bank, now join to
solicit tho aid OF the State, to the exclusion
of all such billholdcrs as do not belong to the
ring"
By section Of tho bill, notes of the bank is-
sue since secession, if filed, arc, it seems, re-
Dndiotad oltou.ther hut If ttnot filed" are made