The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-12-18
An ubiquitous Scheme.

bill is before the Legislature H!icu pho-
poses to require the insurance companies
doing business in this State to double the
amount Of State bonds deposited by them
az security with the State authorities. The
deposit now is $4,000 for fire compa-
MES, and $50, 600 for life companies. It's
proposed to increase the deposit to $780, 900
and sloO. 600, respectively. There is little
doubt that the bill is o job-a bold scheme
to advance the price OF State bonds, by Gre
sting q temporary demand for those secu-
rifles. which are under a cloud by reason OF
tina suspension OF interest, and the Radical
muttsrtngs Of partial or entire reputation.
Even as a speculation the scheme must be
fntile inasmueh as South Carolina bonds
+ too ,problematical an Investment to be
pushed,up BY even a considerable purchase
for insurance purposes. But what THE
NEWS has to deal with is not the value OF
the bill. as q job, but it's value as affecting
the interests OF the public.
Its assumed that, upon the passage of the
biz, most OF the insurance agencies in this
Stats will be instantly withdrawn. Infor-
mation-to this effect was received yesterday
from several companies; others will I'M
doubtedly follow suit. The first eject OF
the bill would be to curtail seriously the
number OF companies taking risks In South
Carolina; and this curtailment would
be attended by increased expense and
decreased security The companies which
remained, II 10 frst-rate standing, would
require higher rates Of premium. Com
psnies doing a speculative business
might come down and play ''hit or miss" at
the publio cost; but insurance in such COM
panies would be dear at any price. For 90.
yfous reasons we do not take into. account
the practicability OF efecting assurances
outside. OF the State, at Savannah, Augusta
On Sew York. 1t Is evident, then, that the
Withdrawal Of the strongest companies
would bs followed by enhanced charges and
a;2reater likelihood Of loss. The insurer
would pay more than he pays now, and
would be less certain Of obtaining his money
iimiaiortune befell him. Whatwould be the
effect Of this! The increased cost would be
a direct tax upon the people, and the din
Guilty OF obtaining insurances would indubi-
tally ipiure trade by promoting uneasiness
and alarm. Rents would be advanced to
csyer the increased expense OF insurance,
snda like process would be adopted in gen
eral business. Wherever any large business
goes on, as In Charleston and Columbia, the
produce In store. and on the wharves, re-
quires to be insured promptly and securely.
There Is no time for communicating with
the North, and planters will not send down
their produce unless they know that the
c~onsiguees have the means of keeping 1t
safe. What would be the condition OF a
Charleston merchant who received fsur or
fYs huad.ed bales Of cotton, and found that
the few insurance agencies remaining had
taken as many. risks as they cared for 7
What wouldia merchant do who found that
he had to pay double rates, or take his
chances with some new comeri In the one
case the risk would be more than he could
stand, In. the other case he must add the In
creased cost OF insurance, in some shape, to
his bill of charges. Either course would be
injurious to trade, and would drive business
away. The passage OF the new insurance
I'LL will, W firmly believe, be more hurtiul
% the whole people, high and low, than ten
per cent. increase In the rate Of taxation.
It Is the object Of the prudent citizen to
insure bis property, 80 that, in case Of acct
dent, he may have the means OF rebuilding |
his houses, and resuming business. A truly
representative government would encourage
this feeling, because the State must depend
upon foreign capital for rapidly replacing
what fire destroys. The present Legislature
has its bad points, and is far from being
what We wish it to be; but we cannot be-
heye that the insurance bill, 80 clearly ipiu.
rious, will be allowed to become a law until
the whole subject has been carefully discuss
ed, and: until, moreover, the merchants and
the house-holders have had an opportunity |
OF showing the Legislature the momsntous
Importance Of what is attempted to be done.
: -