V *****
V X '
VOII'MKII. CAMOEN, SOUTH-OAlKJLiyA, MARCH l!>Ti^>0. KPMBEli 22.
MR. YANCEY'S SPEECH.
Con"! uticd.
Then? are causes why the Bank of the State
h is suffered more distress in the |>ast year than
ot ier Banks in Charleston. One of the objects
i) die creation of the Bank was to accomnioda'e
j 1 miters, fanners and mechanics on long- r
pa er than the short discounts and regular reo.iethws
<:(>.! > ; .-o w.; ersally ado: to!
for coiiiineiciai vrnrmuodiiii.in. Owing ;o tue
commercial convulsion during tlie past year. ti?<*
notes of Banks u out raj idlv hack upon them
for specie, and it lias -keen assumed as a fact
t .at the business of the whole State has l?cen
done on a ckculati ?n contracted to one lialfof
tiej.'ear prcceeo'j /. \?a necessary rcrpieuee,
the vakil* of proj... > .t.'.d produce f-li; ia" c >t
ton crop was held hack and die Plantei debtors
to the Bank were not able to pay without sac.
rificing tin ir property. The Batik wa s not
disposed to distress the country: and in addition
had to pay a large amount of the public
debt last January and interest on the balance,
and to advance to the State Treasury, to c: r. v
on the government, a considerable sum?as the
taxes do not come in till Jun?\ There was al>i
Ktracted from the Hank from these causes, during
the active business season, about 8100,000.
Under all these circumstances the Hank luis stts.
Ininrd. itself, and is proof of the ability with
w hich it lias been conducted. It lias demonstrated
that it can foster the agricultural inter.
est of the State by accommodations, and yi t
discharge the functions of a Hank of circulation ;
promptly redeeming its notes in specie ; as it
likewise demonstrated in 183'.), wlien of the se- j
ven Banks in Charleston (six of which are en- <
tirely commercial, rejecting bonds and planters'!
securities,) fire, suspended specie payment? j
while the Bank of the State redeemed in specie '
all its notes, as presented, and at the' same time '
paid off more than a million of dollars of other
liabilities. As to the losses of the Bank from j
its various branches of business, it appears tli tt ,
wbat tens known "as commercial" up to 1843,
amounted to 253,.r>51 G8 dollars; " as agricu!/??V>V'31),C0n
2-1 dollars; "ns of mechanics and !
tradesmen40,211 28. The commercial bn- J
silicas is the quickest, and,giving more frequent
transactions and bringing the capital more frequently
under control, affords largest profits,
i and is essential to Banking operations. But it
| is n business where credit often stands for capital,
and from which greater losses are t<> he apprehended,
though more lucrative. The rig.i- J
cultural is slower, though less hazardous as it is
ltased upon lands and tangible property.
u?i.I *i... 11.,..!,
QU UUiiUlU-U iUK.- i/aim u ui m?i. m jn nv* i ?? - i
derjis a machine, during the past fiscal year. It i
could have placed itself in a tar better condition ;
for means as a mere mono/ making inachiir, i
the only light in which its opponents are (lis- i
jHised to viefr it. But how could it have been !
done? It could have covered .all liabilities and :
have filled its coffers with coin?by rif.ising
discounts to every body and thus adding to the
unexpected and almost unpar.dlellcd distress of j
merchants, planters and mechanics. It coal I
have forced payment on notes, sold negroes and
lands under mortgages and judgments, and by
these means have filled its vaults with coin and
the country with ruin. Property forced to sales
would have depreciated, and men in hu-inos
liave been sacrificed. But the bank pursued no
such merciless course, it reduced no property,
it ruined no citizen ?and the State is unharmed.
The bank is abused, hut the people have been
kept from distress!
The property of South Carolina is worth Two
liim<h'<>d mid fiftv millions dollars. There are
353,000 slaves aloiic, ami at 300 dollars round
?thcy arc wortli one hundred and five millions
nine luuulrcd thousanddollars. If the hank had
| played solely the character of the merciless
r creditor and closed generally upon its debt :rs,
i negroes alone won Id have been depreciated from
15 to 25 percent, [as was the case i:i Al ihania]
( and a loss of value inflicted on the k'tate of 10
. to 20 millions of dollars. Now the bank was
created to prevent, not cause these ruinous depreciations;
a break-water against, not a liood
for ruin: a sea-wall to shelter and protect, and :
not to pour out its pent tip streams of panic, executions,
mortgages, judgments and d> >t. notion,
when alarm, distress and anxiety already
approached despair. It sated milli mis to our
citizens hv diminishing tue profits of the year.
The weak were protected again.-1 the strong.
i the unfortunate from tlie Sliylnclc. Anil it was
[ such (i time, that lite enemies of the lank, aided
liv demagogneism anil favored l>v political com(
Initiation, seized upon to add to Iter difficulties
and east on her all of douht, discredit and odi- I
nin i:t their power ! They may have persuaded '
many of the people to turn on their f.iend and i
i shield, and cut her jugular vein.* Hut when life i
shall ebb, with the (low of her blood, and ruin \
i follow and the storm come, where will the peo- J
j le find a refuge 1
The bank of the State belonging to tlie ]?co- ;
pie is identified more closely than private banks, '
with their interest; and would ever exert its in- 1
f ------ J
lluenee to regalate tnc currency, ami presieve
as far as possible the value of produce from the
speculations of private hanks. To illiistrnt
this position, lie would but advert to an njieralion
during the past summer. Sterling exchange
was worth in New York f:om 10 to 10 1 -2 pel" )
cent j re'iiiat'i; the bank ol Ch.uKvtou iimncdi- i
ately dop'essoc! it i:i ('hailo ton to <? 1. ' p.-r
cent, so as to make a greater p- ..t by the resale
in New York, "j he hank of'' S;:i?o stopped
in and gave "< per t]m? Vy pK.
vantage of a ) .ilfpcr cent, \vljie: vied to elovate
I!?t* In II..1 .! no ot!.
v. jM.Mimi. J .V I. * 4
or hank ia Charleston was nJloWv. *v itselnu- (
1 tor la deal in foreign exchange. . no '-'U. !
? lie would thank <! ' gentleman t" i;o rivet liim. !
j If the hank of the State is sksfrovod, tlio |,aak !
I of Charleston alone will lutve t!ic i?o\u-r. [?.
I deed, l?y its iuiuunsc eapfaloi.. J, ilJiUIISt>f I
I doll TS, wit-l |1"? : ( ? f )jj. j.
of dollar*, it virtually possesses this power alone ;
no.v ; for if the bank of the .State dare to interpose
in behalf of the agricultural produce of the
country, where it conflicts with her interest and
n onopulv, she can at once absorb the hills of
til} bank of the State,and return in*; them home
ujion her for specie, drive competition from the
maikct. He hoped when came t!:c jieople
of South Carolina would wipe from their .statute ,
hook tl:e wriest blot i i her li'.:,racial i.Utoiy i
io t!:c creed m oi such an (.amende mm.led ,
monster! iJul if all the private banks were to i
possess the power to deal in I on ign exchange, ?
the pi incijile which prompts to the pursuit of
private interest, often at the depression of the
value of the produce of the country, would remain
unaltered. Private banks (whose interest .
is to ;nakc tiiouev for their private corporators) j
'' ? * --- . r. : .1 a uv. :
arc ntten :e nprca 10 create unyr.Kn uhh-uiht
in exchange?to derange them, in order that In- i
the l!u'-ti:ati'>iis they may make profits. .Viul, j
under tin* name of exchange operations, tlicv J
receive a large usurious interest, (jive to priv;te
corporations exclusively the power over
the currency, and the chartered right to deal ia
exchanges, and you at once place in their hands ]
a dangerous control over the value of the prop- j
erty and price* of the produce of the whole
? x 1 ... .
count y?to i e exercise i or restrained as lavu
private interest shall dictate.
He would hcrc*take occasion to remark that
the conduct of Hanks towards each other often, J
'and in Charleston the past year, is happily il- (
1 istratcd in the characteristics of the monkey.
The monkeys of Exeter Change i* London used
to he confined in a row of narrow cages, each
of which had a nan in the centre of its front for
M. ? monkey's food. When all the monkeys
were supplied with their messes, it was obseiralle
that scarcely any 'one of thorn eat out of
his own pan. Each thrust his arm through the j
liars, and ruhlicd his right or left hand neighbor, j
Half of what was so seized wasspiltand lost in
the conveyance, and while one monkey was so .
unprofitahly engaged in plundering, his own .
pan was exposed to similar depredations." And
as has been truthfully remarked by " A I'ltmlcr '
in yesterday's fyrrtiri/, " The foregoing is an :
apt iliustratiou of the unprolitahle scrambling
that had been going on among our banks for
each cttliers specie. Kaeh as lie gets a hatch of i
his neighbors notes thrust his paw into his eof- I
ferfor specie. Whilst he is doing this his neigh- !
hor on the other side is doing tiie like for him.
The larger hank bring of the Ovrang-ouhmg
breed, ami a quadruped of longer iimh may get
most. Hut in this unprofitable struggle all lose
more than tliev gain. In grasping at each others
specie their legitimate business is stopped
? their fears and apprehensions of each other !
prevent them nccom nodatiug the community,
and meagre dividends in the end tell the folly of
such conduct. A want of ordinary confidence
in each other at home creates a want of eontid.mceabroad,
and hence tiie dillienlty in passing
tl. aft son th.'in, and reports derogatory to their
soundness and standing."
It is urgently contested, that the hank should
1) wound up nor, because, if' postponed till its |
charter expires, the other hanks in the State, the j
most of the charters of which expire at or lie- !
fore the same year, 183l>, will combine, in such
maimer as they may deeyi most advisable, by
producing ilist vss ?>r otherwise, to force recliaiters
from the Legislature. l!e feared not
t!ie success of such combiuatiou; for, if at that
time, the people of Smith Carolina were inclined (
t? refuse one or more, or all charters to banks, j
he believed her Lcgi lature would have lioincn I
firn mess to do so, i:i despite of either the sodur- I
tions or coercive power of niouicd corporations,
lie believed a South Carolina Legislature too
high a Fortress to be ascended bv an ass laden
with gold. tint il tie appivnen. ions m mi' ^entlcm-iii
from Charleston, (Mr. .Moinitiiujjor,)
were v I'll founded, so much stronger the reason,
why the lirisik of the State : !m:'11 rum-tin tinframmclil
i 1 existence, in order to correct Mich
* inifirociilrnt or linn" and avert such distress
from our people! And here it jjave him ploasu
e, again to fall back upon sit"!i distinguished
until ?: it v as that of the gentleman himself. As
('hainoai! of the Committee of Ways and means
i:i lSiJiS, with a view to correct tiie redundant
circulation of two of the banks in t to interior of
the State, he recommended the adoption of this
Resolution : "That thclVcsi lent and hi n. dors
of the Rank of the State be authorized and renin
ted to t:.k" Mieli measures as ia their iudir
I .? n
111< i;t in;iv In* deemed proper, ti? preserve at par
ihninirliu il i!k? State, tin* hills which may In* iss
led hy any hank within its limits." And ajrain
in 183 >, the honoiabV rhairni.ni riToinniciulcd,
anion" a soies, the adoption of this Kosnlutin:):
" llesolvoil, that this I'ank. as the iiseal
agent of tin* State, ought to ho placed in such
a situation, as to he enabled to correct or check
the improvident action of other hanks," A:c. ?
The geiitl 'inan himself funii-lies an argument of
the usefulness of the hank of the Slate, as a lisC
'.1 J'.gciit, ( > regulate the currency- to check
t'ic i::i!>r?c'ilcnl action of the other hanks, aut'
t i stand as a iruardiau hotwoen t!io Siioculations '
<>:' private ImiiIcs and tliy in 'crisis of the jwojilc.
hoo iiiij; to th reports ami recommendations
o! his lioiin nltle Ir.eiid, in connection witli hi
j?:*esont powerful in Kenient towards tin- deMraclion
oftK- ii ml*, lu> was forrilil v reminded of an
ii''. id nit, in tlic liiMnry of I'/iifi/i of Mnrrdonin, !
tin* great ki?i?x, c MKjueror and restless politician, j
After Ids ivtum to Macedonia IVoin his virtoiioiis
campaign in (?recce, lie routractcd another
union with Cleopatra, tin* niece ol Attains one
of his (?i"li'rn|s. The nuptials were celebrated
with the ii-ii,-il fesli\in';,<- hi 'I'1' I'-' "v at IVIla
?where resided one of his \\.M4,*< Olympian?
tli'.' daughter of the Kin" of Kpirus?lineal
descen la 111 of Achilles, and the mother of Ale::- |
ander the (treat. According to the custom of
the. f'or.ri, l!lc haiwjuol \v,;s prolonged till hoth
PI. :iip and his ^:;.;;-;ts were jimeh heated with
uiv -. Altiifii* had cherished the Imno fhyt hi<
... ; iei.ee ov< r the !:i p might i'vluoe hiin
to alter the succession, and appoint a child of
hers heir tu the throne, Thrown off his guard
Iiv wine, A!lulus gave utterance to his wish, that
the gods would crown the marriage of Philip
and Cleopatra by the hiith of a legitimate successor
to the throne. Alexander took lire at
this expression, and exclaiming, " do you then
count me a hast aid," hurled the goblet out of
which lie was drinking at his head. Philip
starred from his couch, and instead of rebuking
Attains, d;ew his sv.oid, and rushed r.t his oini
sou; hut before he racked. him, stumbled am!fell.'
Alexander, before lie withdrew, pointed to his
father as he lay upon the floor, and said, " See
the man who would pass over from Ku rape, to the
conquest of Asia, upset in crossing from one
couch to another!" lie would say of his distingnhihee
fiiend?see the man who leads his on-1
slaugbt to the d< struction of the bank, " upset" j
Iiv t!)'' lloCtiHieS ol liliOWII UepOlt.i IlllU UeM.ilutiuns!
Hi- would dwell for a moment upon the construction
of the fire loan Act of 18oJH. As a
question of legal construction he differed with |
those gentlemen who contended it imposed no
obligation U|K?n the good faith of the ?>tnte to
continue the hank until the ultimate redemption
of the fire loan bonds. The/? / srrlion authorized
the (Joveriior to issue bonds for 2,000,000
dollars, payable at the expiration of 20 or 30
years, fur the purpose of procuring a loan " on
the credit of the State," to rebuild Charleston,
tAe., and that the said bonds or contracts be is
MIl'U lil w IIUII Jul I IJoj IUI dllUSI Sillily illIV! |/in<liHV j
at such times and places as should lie most of* j
fectual in the procuring said loan in Europe or
America ; "and. lluil llic faith and fund# of the
Slate of Haul h Carolina be" <$v* "pledged lo
secure the puuelual payment," ?kc. Thus far,
the gentlemen are right that there is no other i
pledge than the general I'aitli and funds id' the ;
State, and that the hank is not connected with
that pledge, hut they have asserted their opinions
without looking beyond tiie first section?
to the whole instrument, which is (lie only p;o*
per way to arrive at its true construction. ,Ile
would advert very briefly to other sections.?
Section third provided that " the money, wh n
i*? ?*i 11 'tt ?41 iii i 'liiiclitcfmi cli.ill lm fliitinbiioil ltl t'lfi
I V tl JU.'wU 141 v illtl ItJIWil, gillUl l/V *4*- |FWi^ll?,VI ??? I.IV
bank of the Citato of Clouth Carolina, and shall
become a part of the capital thereof." Sect ion
10th etijoins*t " as the duty of the Prrsidenl
and Directors of the bank of the. State of South
Carolina to make proper provision for the punctual
payment of the interest of such loan," ?Sci\,
"and also for the ultimate payment of the principal
'hereof' Section 11th makes it the duty
of the bank to keep a separate account of the
proiits arising out of the additional capital created
by the two millions tire loan, " which said
fund, with its annual accumulations, shal] be
considered solemnly pledged and set apart for
the payment of the interest on the said loan, ami
thvJinul redemption thereof; and it shall he the
duty of the President and Directors of the said
bank annually to report to both branches of the
Legislature the exact state of that fund." llntj
section 12th goes still farther, and pledges to j
till, twilii 111' Iwim. 1.W...L. till, ,,.-,./i'/.. 1,1* tlx. ,1,-ltr.
in il capital of the hank likewise, 44 when the
profits of the said bunk of the Stale, of South
Caroliiia sliall have paid the interest of certain
stocks, ;i;i<I redeemed the said stocks for which
thev have heretofore heen pledged and set apart,
the said prufi'sshall alio be. inui.si.le.red solemnly
11 edged and set apart far llir payment of the inI
rest on s ti I hum, and the (hud rnlniipliau
'luredThe lire loan howls fall due in JN">n,
t>0, CuS, 70; of the stocks to he redeemed hv
the profits of the original capital there remain
oiit-standiu^ahout -4N l,t>t)t) dollars, of which
.mOOOdollars will he extinguished in liw'o0 j
and lHn'i; after wliich the 1th li section solemn-j
Iv pledges those profits'also towards paviucat;
' I '? > i ..n: > i >: c ?!.?,
<H IJ1U iiurrr.M uuu mum.tic i ctti'iiif >uwn ??? mv
fire loan bonds. He regarded flic mere stale-i
meat of the proposition and the law, an argil- j
inent so conclusive llt.it lye Slate had, by sol- j
oinn legislative enactments, pledged to the Fire j
Ijoan Ihrnd holders the existence of the Bunk j
;rs a fiscal agent and trustee, to manage the j
funds mortgaged for their security, till the ulli- j
mate redemption of the debt, that he would not;
waste time in elaborating the argument. Such j
was the construction placed on the act by the i
foreign creditors?as will be evidenced by the j
perusal of the letters of Jlamliro & .Son, Muring, |
iimthcrs eV Co., who placed lunch reliance 011 J
Mich a fiscal agent, with it sinking limd then of,
ti*>l,()?)0 dollars. (See I'auk Compilation,pages '
(?."?l-Jiii.) . j
Our distinguished nielli, who negotiated lilt*!
loan?an able lawyer?(ieneral AlcDuflie, in ,
liis loiter to the President in 1S HI, tines litis I in- j
guagi?" 'ilit* responsibility of the hank, not i
only to tin* bur, hat to public opinion so essen- >
tial to its stkm*ess, h nl hitirIt irri?hl in rsfiwiliiix
(he r<i! lie of the liomlt." (Hank Compilation,,
pages f>7?l ami This responsibility to the
41 /?? "?or in other words i.a\i ig an (inrnni
like tlie hank which eouhl he su ! ia the I niteil
(States ('on11, in addition to the goe. I lailh of the
?Slale, iv'tfht well he supposed to li.",o ' (j
we'nrlit in t tiiii.itinir tlie v nr d,,.
1 >< ill'. In ul III".' Stall', ii'lll i! '"..Hlfilljr till' ftJI'li^ll
caidtalNls (n advaueer?;?i, iimiicv t?? ? ?. I'm*liciilarl
v .'is }-.:ii''.,. ?f (he Stales id'lhel ninn had j
then 1 nit r.'O.Milly rejiudi.iled t'n* payment o| i
their tkliK 'I'lir Slate ramml In- sued. Thai |
lids was jjiwn l?? the Act nl IS'JS?and :
such i nlueemeut held out tn the l'<nei<rii rapi- .
t disls t.i I-nil (*iiir inmiey ??a the I i:*? lawn j
Icuids,lit* referred ! > (Jiii'I .McDnllie's puhiiiwtiun
ia laiadna, at tie* (hue. (**ee I'atih Cum- '
?a: i c.f \
| iiuu-ni, jm^, ^
j I#y n?Ir?|?tinjf llic* proposition l> pul tiu? hank
j in li'i'.ii'.latimi new, we should tarnish the credit j
I uur Stale and suhjeel I.it, in ihe capilnh of
Kurope, '<> tin.' imputation of ri'i>U(li.ilioiU lie
knew South (V'olina would never repudiate,
hut lie desired that tlie rhamctvr of t!ie Stale
should not even li.- -d to ;i fr.-ti/hirttrt,
j in tiiogive.t d en} slit! of the we:t I
?by any arbitrary <\\\A cxyarlc change ofa contract
with the Foreign creditor. Ifsuch change
he desirable, let the consent of the other parties
to the compact be lirst obtained, lie would
dismiss this branch of the asgiuuent by replying
h) the charge made by the honorable Chairman
of Ways and Means (Mr. Memminger)?that in
reference to this l ire Loan the influence of the
hunk was interposed, at an unfortunate hour,
to have her rg.-ticy counectcd with the Loan,
and thus steal a march upon the people l?v attempting
to create a pledge for a re-charter.?
lie had no personal knowledge on the subject,
as it was before the lime his attention was directed
to public matters; but lie was authorized,
hy a gentleman who served on t!i/' committee
with the honorable Chairman ol Ways and
Means at t!io Extra Session of lb38, to state
that the then President of the hank?the late
Judge ('olcoek?appeared helorc the committee
and ymlcslnl against, the hank being connected
in any manner with the hire Loan.
lie would here say, while on the subject of
mistakes (though by way of episode) that his
honorable friend had, in the heat and ardor of
debate, fallen into another statement, whjcli the
investigation of the record would prove to he
error. Speaking of certain resolutions in relation
to the Bank which he had the honor to
submit before the legislature in 1841, which
was laid upon the table?an.l that the humble
boon of entering a protest upon the Journal
were not even allowed to him and his Phalanx
of30 or 40 protestauts; he added that tliey
came back in 1843, fresh from the people, with
a new accession ot power which forced the
Hank to cancel certain State stocks redeemed
in its possession. Now the record?and the
gentleman's own record?places this matter in
a totally different light. Tho President of the
hank in hi-annual report, November 23d, 1843,
stated that the Hank sometimes invested its surplus
and unimployed funds in the purchase, in
advance., of such stocks as were to ho extinguished
by its sinking fund; that they thus afforded
lor investment, a desirable resource, lie- .
cause, while they wen* in effect, payments of
so much of the public debt, (as in no instance
had any stock thus purchased ever been permitted
to go again into the market) at tho same
time they constituted an available resource in
easy of any of those oinergeiieies to which |
hanks as well as individuals arc suhjccl, should
render a resort to them necessary, either by
sale or as pledges for temporary loans; vet at
other limes it was equally desirable " to deliver
tJirm iij> to the Comptroller General, and In hare
them ratirrj/rd and. the sinking fund credited
with the amount." And again. "The situation
of the Hank at this time is such, that if
powi r was now vested in the direction, they
wonld be prepared to cancel such of the certificates
of stock as they now held, and which
could be disposed of on the principles laid
down." At the same session his honorable
friend, then chairman, as now, of the committee
of Ways and Means, in his report said that
t!ley were happy to perceive t'aal the President
and Directors of the Dank had proposed in !
their annual repoit "that which was properly j
the lirst step in tins reverse direction. They j
asked authority to cancel such evidences of i
public' debt as may iio.v be ti their possession
iu Charleston, and such as may hereafter he
purchased by them. (ISatik compilation, p^iges
17*2, 17'} and COS.) Me regret led the necessity
of eorreoti ig such errors; hut when they were
advanced t? the prejudice of the lirtiik, justice
re(|ui:vti their correction: "Render, therefore,
u il'i Caesar the things whieli are Caesars."?
The statement tiial the Rank has swerved liie
State lYniii her true policy is in?t sie t liaetl by
facts.
llefore concluding lie would advert very
hrielly to the propn-ition contained in the resolutions
of the gentleni in li'Oiii r.arnwcll, (Mr.
Aver;) thai is to publish annually the names
and liabilities oU the otiieers and Directors of
the Rank and members of the legislature indebted
to the Rank. He should iu?t dilate upon
t!u' proposition, as lie had already trespassed
upon the patience of the Committee. As a
means id' furnishing information, the mode was
enlirelv s'ltirrlirinl and. in no nossible man
not* cniilil jill'tiVii any iiiloriii.-itioii as to (In* elia- |
rarter ??l* t lie* ?lel.ls, whetlwi* "ond'or liatl; or!
tlio siillifioiicv or itiMifiicieiiry o| the security.
Hat iriM:ilii!*r, lor tin* sake of aryiiinont, thai it
... . I
would give inloriiiiiti?>u as to tho condition of
such debts, how far ilocs the proposition exti'ii:]\N
!iv only to a very IimiU tl number of
tlio borrowers of the Hank. Kven if every meml.
-r of the Legislature were i.ult bled, (anil lie
did not know* that a si igle o:ie wtis.) the proposition
wotihl not cover one-thirtieth pait of the
(lehlors to the Hank. For years there ln**tl,
been appointed ('ottitnillees to inves'/,...,^. (|??
Hank, 't iny have usually ?* ,,1>;^|,.(|?0;* p?,
ablest, most In. .est and *.??. ;al ^
I IM*\ IlitM' ,.i , i - i'imiii* t I'i.lie .'iiiil satis.
hetu.'i'*; I in* |n iioijilos ii|m?ii which tin*
,has n;? li.lm!. ali'-l lbs* jjonor.il tuaunijoinotil
of it* I !.?? 0 reports haw usually
homo t t > it.-abloin anion::ill.
in iho icjia;l of (!io t!l-lin^iii-.!icil liMtlor of
l!i,' | in 11 allacl; iijina llio Hank. I Jul ihoro
i. mil' point iijmmi which ihoy wit." no! alii'* I"
;:i\v, in i^iitulimI as llii'v were, as accurate ini'ni
inalion a-i ili'sii'aklf; an;! lliat is upon l ie
jjooiiiii's; or lii'l'U'.ss of hid-htciiucss ( the
think on lim i!i-count lino. There lin* always
b.eu a i.uhlic it fan of tlio u linos aiul I id It I ilia > of
all t 10 ilob: >rs to their ovos. by an actual in
sjii't'liou ?.i' ilir* nut-is; lint it iiuiii. !h-iI ii<> i.iiorin.tli
>11, ?ii: I I'.uiii'>t i':nui..|i ;tiin jio-ilivo ;iS In
wii.ii I'lMjicilv ilmsi' (ioiitmy* p<soss. or whitt. is
ill .-if- cnihliii 111 iii oiiiivs nt" C k>i l\ iiiul JSlictifl'in
tlu ir ivsjioi-livi' Pi ; itl>. "I iio voi v iv:isou
wliy t'lnicsiilkvs, ;is Jivri liijiiiv I'liiiMnvi'ivd.
haw iiiil.'il !<> ipw satisfactory light upon t:ii<
point, tunsi-ilnv- ;i lorri'-lo ntul nnaiis\voir'0|l%
;ir -ivooi't thi; propositi >.i of tin* ?(.>nllc.
iii:; ; > '' ' ' ;vnwv!I.:? i i.> ">! ??vi -g io.'l r
malion. As to Directors' accounts, there is' a
great misapprehension. In many cases, as
factors, h"' illustration, the loan stands charged
to the Director whose name is upon the notes
us endorser or acceptor; while in reality it is
lor his planter customers, being for advances
on their crops. A factor's account for ''liabilities"
is almost always based on cotton or other
p- .iduce in hand, or to bo received; and is most
genet ally an acceptance of drafts drawn by the
planters to anticipate the rale? of their crops.
These debts are really the debts of a great nufnber
of planters, and are to be paid out of their
crops when sold. Now the publication of the
names and liabilities of Directors would not
show the nature of the debts, or the names, or
sufficiency, or insufficiency of tho cnmn-;f?
the .imouiit of money deposited in tiic Bank by
the Director. Thus the publication of names
would give no substantial information, while at
the same time it would unnecessarily cause the
accounts to be misunderstood, and the credit'
of such Director to be brought into question
when the debts might he perfectly secure and
affording profit to the Bank. It is admitted by
all financial and banking men in the world, that
the Director who brings to the Bank the best
and largest account, and best and safest customers,
is the most useful and profitable to the
Bank. The charter of the Bank forbids the
exposure of the names and accounts of the customers.
expnnfr U\ tlm i.iimmlftnn" ! ~i:-?
, .vr vv VVIUIIUblVVO UI lUVC'dll^a*
tioti ami Comptroller Ccueral. It forbade it
on a rule of pecuniary interest, because no man
in good credit will allow his name, as principal
or endorser, to go into a Hank which publishes
his transactions with it; subjecting them to the'
idle gossip and misconstructions of the world,who
are not acquainted with the value of the
security furnished. The proposition of the gentleman,
if adopted, would introduce a practice
repudiated by all Banks in the world, and inevitably
tend to drive off all good customersand
resjronsible Directors, retaining such only
as could not get credit iu other banks. It woulcf
filially affect the business and credit of the
Bank.. As a means of information, then, the'
proposition is delusive and absurd ; stripped of
its gossamer disguise, its real object is to cut
tlic jugular vein of the Bank. So far as memIhts
were concerned, it conveyed an indirect
imputation upon the integrity of the Legislature.
He charged no such design 011 the part
of his friend from Barnwell, (air. Ayer;) but
the inevitable result of the adoption of his resolution
will be to place a lever in the hands of unscrupulous
and designing politicians?alike demoralizing
to the public and in jurious to the true
interest of the Slate. He was opposed on this
intricate financial question, as well as: all other
great questions of State policy, to the use of
unworthy collateral issues bv nolitical dema
guanos "on the hustings," or with the goosequill,
for the furtherance of private or any viewsin(-oii)j>atil>lc
with the public good. All great
questions should be discussed before the people
fairly and fully upon their leading principles and
policy, (toveriunent should commence in the
breast of virtue, and its foundution be laid iif
the command of our passions.
Hut to return to the main argument. Reference
has been made to the State Hank of Alabama,
and other States, as illustrative of the
evils ni the crniimvinn of limit- .nut SJt.if.i II?
was not htettned to cntor upon this argument
f.n-tlier than to show there was no analogy between
the principles on which those Hanks
were conducted, and those upon which ours
was governed. The Hank of the Slate of Alabama
for a number of years was conducted successfully
and relieved the people from all taxation,
until the Legislature diverted it mainly
from a legitimate banking business and ordered
it to become a mere loan and accommodation
ollice, in fact, to the extent (he believed) of five
millions of dollars.
The money was to be loaned to the Counties
in propo.lion to the population, without reference
to the wants of such counties and the commercial
interests of the country. The members
of the Legislature thus become virtually, cx nc
rcssi'alc r.:/', assistant Directors of the Bank.?
'J'ho 11 Kin la1 is from tho rosja-etivo counties to
certify aiul rocouiinouil tho notes from their
county. This at once introduced the elements
uf corruption, and was n forcing |iim;.?to direct
the business of the Bank lrom a legitimate and
profitable system of hanking to tho dangerous
and irresponsible plan of a loan olliee.
Put the Bank in liquidation now, as co.itcinjtlnled
hv the Resolution of the gentleman from
Chai l- stoii, he would ask what was to be done
with the 1'ui"is, collect and put in an iron box?
Lo- k at your public debt vet unpaid, the prinf'i
?u of which exceeds two millions ol dollars.
pan . t ' i * "
i no accruing annual iiuercsi mercou is nm>u?
1:W.0(H) dollars; which w ill be gradually lessened
as you iv(lm,:> tin* p:iiu*i|).il. lb.it when tld*
la t instalment is payable and paid, according
to the present contract.*, you will have to pay to
get rid o| iliis tli lit, Ik .ween four ami Jive Mill'
i:us of dollars: w ould vou thru place your fun-'
iii an iron box, drawing no interest, while 48
h.ive to |?ay such heavy annual interest?
a policy would hi' suicidal. ^ on* " . v*'^
would nearly be eaten up by the l'|m(|p<i
have to pav, and vou would" ' '
1 III I IV lli.li
I lamls. ami negroes ami m rehumlize of your
11: ??|?l? heavily to meet t?i , t'..-il:tru e nl'ynar debt..
Ii you will not allow on liy your
l.ait!'.. ami tlo not .loj I tli*.* ruinous policy ol
locking it up i? !4ii iron chest, you are then
thiven to l'>e lu'X-riidoijs speculation <>I investing
in tlie Stneks, Hank, l!ui!'i>i<i ami folate of this
ami other States, v.-l.ii-J, raioini In- mu?!o available
promptly to meet the in luhneiits ol your
ile!it, !>v wh'yh your commerce. and agricultural!
ami nit* .'iiaoii'al pursuit* are not lvenclitod; ort.
?, , , 1 , .e..; <v **
. . :ul?n?l IllC* SVMLMI <>l .1 mill (UliCU. i>o,
srUotue lor such ?i 1 tan oiliee lias 1 ?ooi> project
I fd, :n:d none can lie with suliii-ieiu sate tjr?|
a id wliirli oonlil n??t have within ilseli't'ierUt*
' re ni - <\ v .--to iv.\ i d.-tv.Kt: ::
-