University of South Carolina Libraries
i ImmJLjimmm&mmi '.. ' "'* *??y ? *? ?r. ' *--'*"^^*^^^^P^T7*^!^7t^1 ^'1- - " r 18B^?^<>??*???wf ?A?"ww***'??. " """; ,'' B [ : . - . IVouiktr 1* < ? On Tuesday, #fllMi)cH' Hit Excellency Go* error Botlkr communicated to the Legislature, by his ExecQU*et9eeret?ry,tlie following Message. , ? . * , / .>' ; . 1 .'<?? / r K |J> -t/ * \ . V * . ^ fcxBCUTivjB Department, November 29, 1837. Fellow Citizens of the Senate^ end of the House of Representatives: At the time of you* l*at adjournment, the country w*s apparently in the enjoyment of unparalleled prosperity. Subsequent events hare only developed the true * etato of things, which then existed, and which has resulted in great nolitical cmifn. sion aad commercial embarrassment. 4The change wm so sudden an<j unexpected, thjit oven Iho wisest and most yrudenlwwere not prepared for it. Although you moit in the midst of difficulty and confusion-, and under circumstances seemingly more unfavorable than when you adjourned, I cannot but regard the country in a better situation now, than it wai then. As our.distresses have, in some measure, arisen from the money-making spirit of the times; and as they address themselves to our.vindividual interests, I feel confident that we will profit by the enquiry and discussions that have ensued.. The people have been excited to the consideration of subjects which have heretofore too little attracted public attention; and I am satislied that the country will go through, and rise from the severe trial of the times, with improvement and ultimate advantage. Our calamities have proceeded ft-om the passions, contrivances, and imprudences of the people themselves and tboir federal rulers. In a time of profound peace, and while at liberty to follow the pursuits of our own choice, we have brought about tho evils of which we complain. Under the influence of a kind Providence, we have just cause to be happy tnd thankful manv t\l noai n nrct tarn a navmitfa/l AniAttt * M,l . 1.1 ti* . . I ?iiw IIIUII j vr w Ul v |f^i UllkkVU iV VIIJUJT | QI1U 01IUUIU II1QI1I16S.I OIIT tudo to the great Ruler of events for the present prosperous condition of the Stale. The harvests have been sufficiently abundant to satisfy all reasonable demands.-? The country enjovs uninterrupted peace* and general good health. I have no disposition, as Governor of the State, to interfere with questions that are committed by the Constitution to the exclusive jurisdiction of Congress. But where our State has deeply participated in the evils which Congress is called upon to remedy, 1 hope it will not be deemed improper to make a few suggestions con* corning the remedies to be applied to a common misfortune. The condition of the monied affuirs of the country deplorable, and forms a subject of the deepest add most profound consideration. The derangement and confusion of the currency have produced much embarrassment and suffering in ever}' grade of society, and in every species of business. This general, and wide spread distress, has arisen not so much from a want of money, as a want of confidence in what is used as money. Much of this disorder in the currency, owes its existence to the unfortunate experiments made upon it by the lt^e Federal Executive. The war which was bogun by him upon the U. S. Bank, was the commencament of the confusion and embarrassment in our monetary affairs. Until that time, we had a perfectly good and sound currency. The Government depositee were taken from the U. 8. Bank, where they were safely kept, and placed in State Banks selected for that purpose: these Deposite Banks were urged and stimulated to excessive issues to make profitable the money Turnished them by the Government; the facility of borrowing money from them and other banks tempted and Cnconraged wild and extravagant speculations. This fever-for sacculation became so ^ontaorious and rnniaminaiin<? .u_?.? , ? o uo iu iinemcu me country with genernl bankruptcy; After the country was thus flooded with a redundant depreciated currency, the late President of the U. S. (who had contributed so largely the means for this overtrading) was the first to excite alarm, and create suspicion and distrust in the Deposite Bu??k?s hy the i?sue of the Treasury Circular. A eneral feeling of distrust and fear extended itself through the country; a run was mode upon the Banks, and they, frorA necessity, suspended specie payments. However necessary the measure may have been on the part of the Banks, it is very much to be regretted, as it has not only served to embarrass the Government, but to cast odium oh the country generally. Any Legislative action of a single State, without 4 1, /I y? r% f ot 1\ o *4 0 4 AlfAn4nf lvrt w? 1,? ^ 1 mu vu-u|(tiuuun ui wtueia, w m wuciwu iuc wann.3 iii resume cusn payments, would be impolitic and unjust. So far as to the Federal Government belongs the Constitutional right of regulating and controlling the currency, we may indulge the hope that her wise and deliberate councils miv devise some means to extricate the country from its present embarrH?aed imd deplorable condition. But I have no confidence in any -remedy for the existing dvil, efceept in the enterprise of our people, and the abundant natural resources at their command. The important object for consideration at present is to give healthful action to the Banks and get them in operation again, by redeeming their notes with specie.? Every inducement and encouragement should be afforded to the Banks to resume specie payments, by discriminating between the notes of Banks which pay specie and those that do not. Whatever maj be the eviis occasionally resulting from a currency principally conlposcd of crodit in the form of convertible Bank paper, it is now too late to speculate upon the possible advantages of returning to a currency exclusively composed of the precious rtfetals. In the existiug state of the currency of the commercial world, and particularly of the United States, it is utterly imprac ti cable, and would be absolutely ruinous; if it were possible to effect it. In point of fact, four-fifths of the actual currency of the country; consists of Bank paper; which is received as money, not because it is the representative of specie, (tor such certainly it is n?0 hut because the public have confidence in the solvency of the Banks, and of their ability to redeem in specie such portion of the bills, as the state of the exchange; foreign and domestic, may cause to be presented for payment. The interest of the Banks, riot less than their duty, prompts them to be prepared frt rprlpnm fhnir Mile in anpftic: In ?nnh fl ?t?tA nf tliinira- nnH iinloaa thov Itnon V * \/t? vraa >#> # ? ? ? ?? M ' VWO III* V V tempted by extraordinary causes to issqe excessively, their ability will be equal to their obligations. But no Bauk or system of Banks, that ever existed, could meet the demands produced by a general loss of the public confidencd. The existing currency, therefore, is neither specie nor the representative of specie, but credit so regulated as to be of equal value to specie for all the purposes of trade. Such being the tfctual condition of our currency, to withdraw suddenly from circulation all that portion of it which consists of credit, would be to reduce all the property of the country to one-fourth of its present value; and to compel all persons who ire in debt, to pay four times as much as they contracted to pSy. Credit is the reward of honesty and integrity, and to attempt to destroy a currency founded upon it, in this advanced slate of civil society, would be contending against the lights of experience and jcivilization. Our country has advanced to her present high and firtispeiouS condition, by the usu of banking establishments. The wants of the commercial world in its mutual dealings and transactions, are far beyond what the existing amount of the precious metals can possibly supply, and paper money is absolutely necessary as the representative of the credit, which mercantile people repose in each other. Commercial credit is based on the assUmation that it is the interest, as well as the duty, of every man to be an honest man, to perform punctually his promises and cqntracts. By means of this system of mutual credit, we embark confidently in cnternrises. and iindnrtakinaft. whirl) no ntocurahlp amount of crnld And aiIvap nnnld be obtained to supply, and which in the actual enterprises of modern days; would not be a tenth of the sum required. To cherish credit, public and private, is to cherish honor and honesty, as the actual basis of human dealings. By soloing wo exalt the national Character; by expecting and enforcing the habit of punctuality, between individuals; and each man, under the protection of public opinion, as well as of the law, is enabled by means of this mutual confidence to embark in projects useful to himself and thepublic, which gold and silver do not exist to stimulate. Public credit may then be regarded in the present day As the parent of all useful enterprise; as the great source of mutual honor and honesty, and of mutual respect in society. People risk their property with feelings of perfect snfety under its protection, and by means of it, the modern character of civilized society is adprned and ennobled far beyend the standard of ancient times, though pictured as the gold and silver age. But if public confidence be established as the great moving r 1 - . 2* :- -l 1. ? - ... yuwer ui inouuru enterprise, n i? " wiuimjr nncosHory mat some written memorandum should be taken at the time of the extent, to which it is reposed. By making these memorandums negotiable, we are driven into a system of paper money: to render this safe to the holder, it must be convertable into the common currency adopted in part throughout the tvorid?into metaWc coin. The more perfect the system of public credit and mwtual confidence, the less is the amount of gold and silver necessary to sustain it. That evils may arise from the defective construction of this part of our commmercial machinery?that stricter regulations may be necessary to repress dishonest or imprudent speculation?and afford additional safeguard to the creditors, may well b# allowed; for experience ehown this to btf the. ease. No revolution recorded in History, has produced 60 great a change of property, as such a change in the*currency would profluw, If suddenly brought about; and ev?Mi if effected by a very slow process, though the intensity of the suffering would ba S? * d| if i m^rwa?eg diminished, it wonld he more^protricted. _A1I thit c*hbe *afely accorop.isbed |# Federal or State legislation should be attempted to reguifcte the existing jettrrency, so fi4r bp^|erehtmg.eg*ravcutant and redundant baue on the part or the Banks In my opinion, indulgence might be offered to these Institutions to the extent that prudence will allow, This Stite should not be behind any of her sisters in promptly resuming specie payments, as >soou as practical?; good faith and justice to herself require it. In saying all this, I irtein only to point out the ffener&l brincioles of future action, which nrudence anil cauLinn render Evident in myself, v * It will be satisfactory to our citizens to know tbe present'condition of the various banks in our State. I therefore applied to the Presidents of thede Institution^ and received from them with commendable promptness the information I requested?j with the exception of the-bank of Georgetown, which received my communication too late id be able to furnish its return in time .for this Message, but which has been promised, and is hourly expected?a proof of their readiness to satisfy the public that the bank credit of the State will bear examination. I have caused the annexed abstract and summary to be drawn up from the documents transmitted to me, from which it appears that the liabilities of the banks of this State to all others than to imeir own Stockholders, are as lollows:? I Circulation of theft notes as stated therein, - 65,011,656 56 Deduct held by them of euch others notes, and of course not in circulation-, --------- - 622,571 14 * Whole circulation, - - . - - - - ^ - - $1,389,085 42 Individual deposites, - -- -- -- -- 3,221,270 74 Due the United States, - -- -- -- - 88,008 34 44 Public Officers, - - - - - - 74,130 35 Whale liabilities, ------- - $7,772,554'85 To meet these the banks have specie, - $1,430,315 12 Public Storks. ------ I.OiiH.13 (19 Treasury Noted of U. States, . - - 94,500 00 * 2>598,945 14 Debts due them by Individuals on notes and bill** discounted and other securities. - - 16.657,217 64 Whole Assets, - - - - - $19,256,162 78 In addition to this, tinder their charters, the individual liabilities of their stock-holders, to double the amount of their stock, exclusive or the Bank of the State of South Carolina, amounts to, . - - - - - 15,182,202 00* Whole security- to the hohlers of the notes of, and depositors in our Banks, - $34,438,354 78 To this must be added the pledge of the State for the liabilities of the Bank of the Stete of Soutli Carolina. As further security to the public, I hope in future no Bank \Vill be instituted without rendering the individual stockholders, liable, in (at least) twice the amount of the stock ihev hold,for the debts of the Institution, and that all proceedings against Banks by their creditors, shall be rather of a summary than a dilatory character. As a future provision, 1 am strongly of opinion also, that no bank should be permitted to go into operation, till at least three-fourths of the capital subscribed shall have been actually, substantially and availably paid in: also that the Directors should bo prohibited from all discounting of stock notes. The public Will become satisfied with these InstHutlous, in proportion as they see real and effectual provisions enacted to secure the due performance of the contracts which BanRs enter it,to for their own benefit. . This would seem to be a fit time for the Legislature, by everj means practicable, to give encouragement to a direct trade from the ports of this Slate to Europe, or rather, to co-operate with our s steis of the South, having common interest in doing so, A fair and- liberal commercial, intercourse with '?ur'northern cities is not only right, but desirable. They are connected with us by too "many ties, both political and commercial, ever to think of being unconnected with them. The Atlantic'proclaims our connection, and vill be a lasting guarantee of its continuance, and the facility of communication is certainly increasing it. But to subject our In a IriKntnur ilnnondnnnn nII llimn ir nnl nnK' unuiian fan f.i> a. ,L . vuiiiiii%ivv V W j wit .w ?w* wM.j u.i?*t?yv| you iai U3 III CI State is concerned,) but unworthy of the enterprise and independence of our merchants. "Why goods should be imported into New York for the use of Southern merchants, instead of the port of Charleston, I cannot understand. Could not foreign exchanges be regulated to advantage by directly shipping our Cotton and Rice to European ports, and bring back a return cargo of such articles as would suit our market? These things depend on atrial, and it seems to me, it is the duty of the coUntrv to "make the trial Abstract theories are not always t<> be trusted in f trade, hut trade is certainly capable of wise and judicious changes and diversions from old channels. Talent and enterprise can effect a great deal that woujd seem to be impracticable to those, who yielding to old habits and prejudices, are averse to departing from eld forms and customs. If Southern enterprise and talent are true to themselves, they are abundantly sufficient to take care of Southern interests, without cutting off, or jeoparding any fair advuntage to be derived frdm an equal and liberal intercourse with ather sections of the Confederacy. The Bank of the State of Sonth Carolina continues to meet the expectation of the community. Its profits this year exceed those of any previous yearly period. The net amount to he carried to the sinking fund is $201,225 37. It is a just subject for congratulation, that this Institution and its faithful and indefatigable presiding officer have thus earned the approbation of the public, and that'during! the storm and troubles that have overspread the entire count,)*; this Institution has been prepared to meet, not only the threatened, but actual calamities. A renort. however, from tho President of the Bank unon the details is herewith sub ' I T ' * ' W - - ? - ------ I mittcd. As you require the attendance of its President during ihe session of the Legislature, I would respectfully suggest, that while in actual detention here upon pnblic business, he should receive the per diem allowance of a member of the Legislature. For the coridition of the Finances of the State, I must refer you to the Compiroller General's Report. That portion of the Surplus Revenue which this State has consented to receive on deposite, under the provisions of the Act of Congress, is in the following condition. Instalments to the aggregate amount of $1,051,422 09 (on whicn the Comptroller has drafted $50,000 for the Louisville, Cincinnati and Charleston RailRoad Company, leaving $1,001,422 09) were received during the months of January;* April, July, and September, nnd deposited into the Bank, of the State of South Caolina, upon which an interest has acrued of $23,616 54 In reference to the management or application of this fund, although it might with great propriety be regarded and treated as nothing more than the return to us of the fruits of} i-j. !.. _.:ii <i.. r *a<.*. ,?An . > our own IIIUUBtry, Bllli, my ?o, uiii uig>iuj ?? mo as ??cu as icvcut admonitions, require that it should be treated by hef strictly as A deposite, not as a loari } and although the interest might be legitimately claimed tfa nothing more than j value received for the trouble and responsibility in securely keeping and rendering the sum productive, yet the state should at all times consider herself in readiness to return the amount when Required. Were the spirit of our people to succumb to the humility of converting their State through legitimate action into a federal, stipendiary, it is to bo feared that litis fund would soon sink into nothing else than the price of our apostacy from our ldhg cherished principle of StOTe Sovereignty and Independence* It would be in strict accordance with this view, that the fund should not remain unapplied, and I would respectfully indicate as fit objects for public expenditure, education, internal improvements, turnpike roads, and works of art, connected with, and commemorative of the History of our State.?It would seem to me a becoming use to appropriate apportion of it; to raising suitable monuments on some of the most distinguished Revolutionary Battle Grounds in South Carolina, with proper inscriptions on them. They would not only be monuments of glory* but honorable memorials of our gratitude to distinguished heroes of other States and Countries who fought, bled, and died on our soil. They should not be costly* but permanent* with rich inscriptions, from which posterity might learn lessons of liberty and patriotism. When South Cerolina should he asked* what the had done with the public treasure 'derived from other^eourcea than her own finances, she could p -int to such objects as these. There is much, [ no doubt, in this last suggestion averse to our utilitarian principles of public expenditure, but fely upon it, tne loyalty and patriotism.^ a oeople are not less cherished ifktnd elevated by embodying to their senses the trophies o! an illustrious Ancestry, . # " 1 11 ???g thao the' dotation of a seel by em bleeps cxpressive.of ihe .holy caAuoua of Uieir .foiib. The beat security for public liberty and the endufiffg prosperity of the State, is to be found iu the virtue aud mtelliI genet) of the people; and they canoot be I SO Well encouraged anil hrnmnled ah hv a judicious and well regulated systam of education. The arrangements for carrying into effect our Free School system, hare not, I fear, fully answered the benevolent end* contemplated. Commissioners are either loo indiilereut,N or too inefficient in attending to their trusts: trusts that should be regarded of the highest importance and honor. This subject demands the attention of the Legislature. Connected with the subject, 1 would remark that there area great many Charity funds in this State, intended by their donors for the edncation of the Poor?some of them, I am informed, are employ d, and some are not. If it should be ma le the special duty of some officer to attend to, and make a public Report upon their amount and condition, justice and liberal Charity might l4^ served and promoted. ?n.,. ~ ?. -1 ?;j: a iic vuncgo ib juonjr an uujbci ui priUC to tfce State. If its liberal end enlightened friends and projectors, c??uld see its fruits, they would hare abundant cause of satisfaction and gratification. Every citizen in the State tnay justly regard it as part of his property. If he lias not reeeired any immediate advantage himself, his son may. The destiny of the state may he said to depend on this Institution.-? The young men who are in it, should be made to understand and believe that the public take all interest in them. Going from home with their Mother's prayers. and iheir Father's hopes lor them* they should consider it the greatest calamity that they could inflict to disregard and disappoint theut. But, beyond these feelin^s and relations to their parents, they should regard themselves as the property of the republic, and should cultivate a noble maxim of some distinguished ancient'. "It is hot only necessary that I should live, but it is necessary that I should do my duty.'* , , The Legislature should hot onlv give it? substantial aid to this Institution,"bat . should make every demonstration of re^ suect in its public exhibitions. It is desirable tk?.t ibi Trustees and the public should give more of their time, ano attention to the examination of the Students; than they have hitherto found it convenient to do Its public spiiited and patri* otic President, and its learned Professors, are now doing tbcir duty in a or ay to give general saiiefgction. By the late afflicting dispensation of God; by which so many of the unfortunate were consigned to the abyss of waters, this Institution has been deprived of one of its most able and 2ealous officers. There are now one hundred and fifiy-fotir. Students in the College. It is a favorable augury of our rising fortunes, that, notwithstanding th4 difficulties and embarrassments of the times, this institution is increasing in numbers, reputation and Usefulness. Our youth are taught their Intellectual and Moral Philosophy* Logic and BellesLettres, History and Political Economy, olreek and Roman Literature, Mathematics, Mechanical Philosophy and Astronomy, Chemistry, Mineralogy and Geology, Sacred Literature, and the Evidences of Christianity. I do not profess sufficient knowledge to speak with any degree of confidence; in regard to the circles of KtitiliPH which is nerfissflrv to enmnli>M A course ol education in suchan institution, but of this, my experience has satisfied tne, that, that knowledge is generally the most useful, which is directly avails* ble?and <o be so, that it rtiust be adapted ~ to the wants of society and to the sUte * and condition of the country. In reference to this view, it might be well 16 consider the propriety of directing the ' Board of Trustees of the College, to establish a professorship of Modern Languages, and a professorship of Civil and Military Engineering. Holding a school fit for educating Civil Engineers, indispensable, both to present and probable Wants of the State, I think it my duty to recommend it. We need it for our im* proycment in peace, and defence in war. The Road system in this State is either defective or very inefficiently enforced ? In its practical operation it is unequal, and in some respects grossly unjust, Its i character will be brought up for your . consideration under, a Resolution or the last Legislature. Those who own Slaves are made to bear the principal burthern of the Tux, while those who are rich its. Stocks are comparatively exempt. The landed and slave interest should he re* ther favored than oppressed. I have travelled since the last session over a greet uart of the Stale, end have seen with Jleep regret that the condition of many of our RoadiJt not such at onghf to be permitted fof a day in a' drilited community*, If etootfe'Carolina hat wvf one decided phytici? characteristic, it Ifif Htr had roads. As a first atop toward* ? a their improvement, I tfugj$ed? *Tty, with the fveeolvtion uht?asi%tfaf^ ? , | the substitution of a eytilcft of litelff , : ' %.. / * . ?.