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

,iss. but sii power on on the pass 81 Sny y.
ono, except tho 0ensfsl 6ssembsy, 70
ehangsth banks OF depoazt. q TAKEN
away. The YeSllts 20 whioh sucta, ss
system 1esdA az simply disasta0ks And
unprecedented. If disaster be finpehd.
ing to these two obanks. IL their Officers
arc known to DO indulging In Wild
speculations, or even TO bo frauaulently
squandering the State funds. no public
officer can intervene to arrest the die.
aster or. 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 q dollar OF money
from either Of these banks, except in
regular payment Of matured claims
against the State. Ouce deposited. it
must remain, without regard to the
strength or the conduct of the bank.
To sanction euch a systen. is to deli
berately tribe with the funds OF the
State. and to tempt to the commission
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 its details.
It must be remembered, in consider
ing this subiect. that the State fuuds
are not placed In the banks q special
deposits. II the State funds were
special deposits. We might calculate
the strength of the vaults or safes OF
these banks, and tho integrity Of their
officers, and thus reach q tolerabiy safe
conclusion. Bot the State fonds,
when deposited In these banks, be.
come general deposits. subject to loan
and investment ia the sametmanner as
any other fluids Of the bank. The
element of the financial wiadom 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 bsnks and their safety
as places Of deposit. Of all this, the
Act beiore me takes no note. The
Act allows no discretion. and gives 40
heed to the inevitable changes which
banks are constantly undergoing.
The examination now made OF the
general featurossof sthe Act bsfure me
persuades me, beyond doubt, 6rst,
that the designation by statute ofltwo
banks wherein shall 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 peounia-
~ weakness Of tue banks, ia utterly
indefenuible and hazardous to tue
limit OF recklessness; aud. secondly
that the designation Of the Carolina
National Bank OF; Columbia aud the
South Carolins Bank. and Trust Dom:
pany is likewise policy which cannot
be vindicsted by the strength or
standing of these particular banks, az
compared with the vast amount Of the
deposits to be committed to them or
with the security now afforded by the
si1 banks among which the State
funds are now distributed. There is
another provision of this Act to which
l sec grave objection. Section l re.
qnires that all "the moneys to be
drawn from tho said banks shall b.
drawn therefrom equally" II this
provision means what il says, it will
be practically impossible to execute the
law. A strict compliance with this
provision will require the State Trea.
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 BIZ at liberty
at any time to permit the amount in
one bank to exceed the amount in the
other bank by 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
agsin in the newspapers. Here com e.
the st. Louis Republican with this bit
OF information: Koopmanschap has
-