The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-01-19
The Legislature aad the State Bsnks

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The Legislature nad the State banks.
Charleston might be, and ought to be, the
second cotton market in the whole South,
with steadily increasing trade in the great
Southern staple; but Charleston is only q
forwarding station upon the great line from
the cotton country to New York. The rea-
son is-want of commercial capital.
Before the war this city had twelve mil
lion dollars of bank capital, all OF which was
freely used in encouraging production and
in drawing to South Carolina the business Of
other States. At this time the banking cap
ital OF Charleston is about twelve hundred
thousand dollars, which may he increased to
over two million il the Bank of Charleston
should resume active business. Two and q
quarter million OF dollars of bank capital is
all that we can expect for the present, and
with this we are to handle the immense cot
ton, phosphate and produce trade of Charles
ton. Our lines of railroad stretch out to the
broad'Ohio and the turbid Mississippi. Cars
loaded in Charleston pass, without breaking
bulk, to ST. Louis and Yicksburg. But the
business passes through the city to New
FORK and Baltimore, because we have not
the commercial capital to hold it in Charles
ton. Our merchants are not wanting in en-
terprise. They are ready to send their agents
throughout the South, and every additional
hundred thousand dollars added TO our means
is prolltably used in bringing more produce,
more sellers and buyers to the city. The
increased trade gives activity to every branch
OF business. 1t is felt by the wholesale and
retail dealer, by the artisan and mechanic.
by the low as we'll rs the high The whole
State is benefited by the accumulation OF
trade in her chief city; for it enables that
city to pay larger proportion OF the gene
raj taxes 1t is as plain as daylight that we
cannot increase our trade without increased
capital, that want OF capital depresses and
limits our trade, and that it is far better for
all of us that produce and merchandise
should be bought and sold in this city than
bought and sold in the mammoth markets
of the North.
We cannot increase on: barking capital
with any great rari'litY: Int it is clearly to
our interest IT, take care If all that we have,
and to put no bar in the way OF obtaining
more. And yet q colored member of the
Legislature, { Charleston member, proposes
to tao out Of existence MreeJourAs Of the
uhole banking capital which we expected to
use for the common good and advantage.
The proposition OF r. G. DeLarge is to
require all the State banks to deposit with
the Comptroller-G OF the State bonds
or stocks of the State equal at par, to one
third OF the capital OF those banks. The
whole capital of the State banks resuming
business, including the Bank OF Charleston,
is about one and half million dollars, so
that it is proposed to withdraw from active
business the purchase money OF half mil
lion dollars of State securities, or about four
hundred thousand dollars This money could
be more proGtably used in bringing trade to
the State than in six per cent bonds or
stocks, while the investment will in no wise
advance the permanent credit OF the State,
ecure from loss the depostcrs in the
State banks. Itwould be bad enough, unwise
enough, to withdraw from active circulation
four hundred thousand dollars of Charleston
funds: but this is not the worst OF it. We
are confident that the State banks cannot,
in Justice to their stockholders, lock up one
third of their capital at six per cent; and
if the bill is passed, the State banks will, in
all probability, close their doors and so into
liquidation. In this way fifteen hundred
thousand dollars out OF two and quarter
millions OF bank capital would be absolutely
and permanently withdrawn from the chan
nels in which it is now employed employed
not only for the benefit OF the banks, but for
the benefit OF every merchant, shopkeeper
and workingman for the benefit OF the whole
city, and for the benefit, direct and indirect,
of the whole State.
This will be the effect of the passage of
the bill now before the General Assembly,
and we can hardly believe that it will be
pressed by DeLarge himself when he reflects
upon the injury it will work to those whom
he is pleased to call his constituents, but
whom he certainly does not represent.
THIS DOOR little fellow LeLarge is as rest