The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1875-03-07

riss. but ali power on the paxt 81 any
one. except the 0enefsl ADsembIy, 70
change tho banks OF depostt, n taken
away. The YeSSlts 20 which euch q
system IeadA. afs sinpty disastfoaS end
unprecedented. II disAster be impend.
ing to these wobanks. IL thei, officers
arc known to "be indulging In Wild
speoulations. or even 70 be franaulsntly
squandering the State funds, no public
officer can intervene to arrest tho dis.
aster OF. to mitigate the loss. Nothing
short OF another Act Of the General
Assembly. involving. perhaps. the as.
sembling Of the General Assembly in
extra session, could enable the State
officers to withdraw dollar OF money
from either Of these banks, except in
regular payment of matured claims
against the State. Once deposited, it
must remain, without regard to tho
strength or the conduct Of the bank.
To sanction euch system, is to deli
berately tribe with the funds OF tie
State. and to tempt to the com mission
OF wrongs which may. at any moment,
bring ruin upon every public interest
OF the State. But the system proposed
in the present Act, is not more Danger
Gus and unreasonable in it's general
features, than in it's details.
It must be remembered, in consider
ing this subject. that the State funds
are noe placed In the banks ss special
deposits. II the State funds were
special deposits. We might calculate
the strength OF the vaults or safes OF
these banks. and the integrity Of their
officers. and thus reach tolerably safe
conclusion, Bot the State funds,
when deposited in these banks, be-.
como general deposits. subject to loan
and Investment in the samstmanner as
any other fluids OF the bank. The
element of the financial wisdom aud
prudence in the management OF the
banks becomes, in view of this fact, a
matter of prime Importance. This
element is q variable one. The Of.
hcers and directors of the banks are
constantly changing. and with such
changes come changes in the financial
standing of the banks aud their safety
as places Of deposit. OF all this, the
Act before me takes no note. The
Act allows no discretion. and gives 40
banks are constantly undergoing.
Tho examination NOW made of tue
general featureslof the Act before me
persuades me, beyond doubt, 6rst,
that the designation by statute ofatwo
banks wherein ehali be deposited all
the funds of tue State, without provi-
sion for avoiding any disaster or loss
which may be foreseen from the disho
nesty Of bank officials. or the pecunia-
ry weakness Of the banks, ia utterly
indefenUible and hazardous to tue
limit OF recklessnest; aud, secondly,
that the designation of the Carolina
National Bank OF Columbia and the
South Carolina Bank and Trust Com
pany is likewise policy which cannot
be vindicated by the strength or
standing of these particular banks, as
compared with the vast amount Of the
deposits to be committed to them or
with the security nov afforded by the
elk banks among which the State
funds are now distributed. There is
another provision of this ACT to which
I sec grave objection. Section re.
quires that all 1.-THE moneys to be
drawn from tho said banks shall bs
drawn therefrom equally" II this
provision means what it ssys, it will
be practically impossible to execute the
law. A strict compliance with this
provision will require the State Trca-
surer to divide every amount of money
required to be drswn into two equal
parts. and to draw check upon each
bank for one-half Of the amount re-
qnired. He would not bs at liberty
at any time to permit the amount in
one bank to exceed the amount in the
other bank by q single dollar. The
reasons now stated compel me to with.
hold my approval from this Act, aud
to urge, with more than usual earnest.
ness, upon the General Assembly the
very grave dangers attending the pro.
posed manner of keeping the State
funds.
How names flicker out and fash up
again in the newspapers. Here comes
the st. Louis Republican with this bit
OF information: Koopmanschap has
come to the front again, after rather