The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1875-07-08
A Heavy Failure.

The most startling piece OF news during the
past week is the failure of the South Carolina
Bank and Trust Company, located in Columbia,
and more generally known as Hardy Solomon's
bank. We have seen no estimate of its liabili-
ties and assets, but the failure is undoubtedly
on a large scale. The suspended bank has for
several years bsen the depository Of State funds,
and at one time controlled nearly all the 6nan-
cial operations of the State Treasury. 1t was
always shaky concern, and was rendered i'm
portant among banking institutions only from
the fact that its position as the custodian of
public funds afforded many advantages for
speculation and money-making. It possessed
none of the customary evidences of soundness
and reliability, and derived its credit and re-
spectability from none of the legitimate sources
which sustain similar institutions. Always re-
garded with distrust and suspicion, no intelli-
gent man can express surprise at its failure.
On the LIST of March last, in communication
to the Legislature, the State Treasurer explain
ed his want of confidence in the South Carolina
Bank and Trust Company, and gave significant
reasons for Withdrawing the State funds from
its custody. Yet, we find that the recent fail
ure shows balance due the State of 5000, 900,
and it remains for Mr.. Cardozo to explain the
inconsistency of his conduct. when his commu-
nication to the General Assembly expressly
threw discredit upon the management of this
institution, and furnished the amplest ground
for entertaining doubts of its solvency and safe
ty as depository of public funds. He dis
tinctly charged that Hardy Solomon was guilty
of ofillegal conduct, in refusing to honor the Off
cial checks of the State Treasurer, because he
(Cardozo) refused to pay fraudulent claim
which Solomon presented. Further, after
making arrangements with Mr.. Solomon for the
payment of the January interest on the consol-
idation bonds, Mr.. Cardozo asserted that he
failed to pay the entire amount agreed upon,
although there were ample funds in his bank
for the purpose. But, in the face of these en-
phatic declarations, the State Treasurer en-
trusted Mr.. Solomon with more than 5000, 900,
when confidence and security were daily and
hourly weakening. Gov. Chamberlain's re-
sponsibility in this matter was immeasurably
increased when his friend and favorite, Mr..
Cardozo, gave explicit warning against the
sounduess and reliability of Solomon's bank;
and the excuse of the State Treasurer that there
was pernicious agreement between Mr.. Solo,
mon and various County Treasurers, by which
the latter forwarded their moneys through SOL
smon's bank, ought to have been rendered null
and void by the Governors action in summari
gy dismissing such County TreasurerS as failed
TO harmonize with the plans of Mr.. Cardozo,
and ensured the absolute safety of the public
Nnds.
Attorney General Melton has applied to
Judge Carpenter for the appointment of re-
ceiyer to take charge of the assets of the bank
for the benefit of its creditors, and it is under
stood that Comptroller General Dunn will re-
ceive the appointment. The private fortune of
the principal stockholders is considered ample
to cover all the liabilities of the bank. Ex-
Gov. r. X. Scott is among the heavy losers by
this failure, and at one time he was large
stockholder. Private depositors were not very
numerous, and many of them withdrew their
funds in time. The Greenville and Columbia
Railroad Company transacted some of its busi-
ness through this institution, and drew a check
for twelve thousand dollars on Friday last,
which was the immediate cause of the suspen-
sion.
The Columbia Union Herald makes an au-
thoritatiye statement that the July interest on
oft ba Stofa boo hoop
fully provided for, and in fact nearly all paid.
One hundred thousand dollars of the funds of
the broken bank, however, belongs to the in
terest account out of which past due coupons
on the consolidated bonds are paid, and the
operation of funding will be necessarily sus-
pended until the meeting of the Legislature.
DIR. John T. Darby, the we'll known Co.
lumbia physician, has been invited to fll the