The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1868-07-23
FuRTHER BY MAIL
LEGISLATIVE PROCEEDINGS.

Ju1Y 21sT. 1668.-The President submitted
the report Of the President and DIRECTORS OF
the Bank of the State, which, on motlon OF Mr. M
Corbin, was referred to the Commlttee on "a,
nance and ordered to be printed. The report
is as follows -, .eD.
resentotaues of the State of South C1roitnG:
Herewith are submitted statements exhibit
ing the condition Of the several accounts OF the
bank as appearing on. the DOCKS. Inc DanK
has not been engaged in discounting, or the
transaction of any new business. Attention
has been directed solely to the arrang gsment OF
the old business and the. collection Of debts,
restrained, however, by the operation OF the
Stay Law and military orders. BY the act
passed in 1866, lit was proposed 30 to modliy
The charter Of the institution as to enable IT to
resume business; but for reasons which nave
been detailed in previous reports, no act,on
would have heen derived both by the comnu-
nity and BY the State from the suc' ess Of the
measure. we"haye no doubt. At the subse-
'ouent meeting Of the Legislature, the subject
again occupied its attention. An act was
passed at the last session predicated upon the
provisions Of the act of 1865, the plrport Ct
which was to put the bank IN operation, In 3
manner which would not conflict with the act
Of Congress relative to National Banks.
| The great need Of the people Of the State
for bank facilities would seem to justify the
effort it was proposed to make to provide them,
and from past. experienced was reasonably
anticipated that aid in payment OF interest OF
q portion of the State debt would be afforded
The bill passed both Houses, but falied
through the veto OF the Governor: ~. h,,,
| With portion Of the State debt, the bank
has always been intimately connected. We re-,
fer to the Fire Loan debt, or the bonds and
stocks issued under the act for rebuilding the
CITY Of Charleston, passed in 1888. It might,
with propriety, be regarded as debt or M the
bank rather than debt OF the State. The
State bonds and stock were sold, and the funds
placed under control of the bank, which was
Charged with the distribution of the fund, and
also with the duty of providing for the inter.
est and principal Of the Obligations as th5y fell
due. The bank, until after the commencement
of the war, paid the interest. and redeemed
large part of the principal OF the debt; but
there is now an arrear of interest due to the
bondholders in Europe, and also sum due to
Messrs. Barring Bros. & Co. for advances made
to bondholders on account OF interest up to
January last. The balance of the bonds sold
in Enro, g. amounting to one hundred and nine
thousand pounds sterling (109, ,0OO). falls due
on the 1st of July Of the present year. 1t was
proposed to the Legislature at its last session
to authorize the bank to negotiate with the
bondholders FIR on extension of the, time of
UsymeuI. Inere 1s little doubt that such q
proposal would have been acceded to, and it ls
presumed would now meet with favorable re-
sponse, The necessary authority to the bank
was Incorporated in the bill which failed as
above stated. The subject merits particular
attention, as the good faith OF the State TO the
foreis creditor is involved in it, and authority
TO renew the loan at once granted.
During the last. year suit has been lnsttu-
ted by parties, holders Of the notes ofthe bank,
III Immediate or direct purport Of which ls to
auestion the effect of the act OF 1865, directing
the assets of the bank to be applied hrst to the
settlement OF the fire loan debt already refer-
red to, Under these proceedings an injunc-
tion has been issued against any final appro-
priation of the funds of the bank, until the
question can be submitted to the courts; and
ali holders of the notes Of the bank, and OF
claims on the intuition, have been required to
| fiIe statements with the Master in Equity IN
Charleston, and the notes to the amount oi
| about S1,22O,300 have been presented and
proven. 1t is presumed that no definite &C.
| tion respecting the bank can be taken till the
question raised by these proceedings have been
adjusted. There appears in the bank state
ment large deposit account, but as the &C
count consists almost entirely of sums deposss,
| ed in Confederate money, received by tne
bank on the express stipulation that the de-
positors assumed upon themselves the risk o.
oil changes in value, no liability-Aas been IN
/ Cured in this respect. The liability OF the
bank consists almost entirely OF its issues
| The circulation Of the bank on the 1st October
1860, was estimated to amount to about 1873,
| 600, after making proper allowance Tor LOST
bills. The circulation, after making slm1a
allowance, is now sS, ,05S, 454. This is composed
I ofc coyaro1 ifnrnE.