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 University of California, 
 
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 Cv^ <:.«^-^^:<.-%^ °CS><>-i 
 
 1813 
 
COMPILATION 
 
 OF ALL THE 
 
 ACTS, RESOLUTIONS, llEPORTS, 
 
 AND OTHER DOCUMENTS, 
 
 IN RELATION TO THE 
 
 BANK OF THE STATE OF SOUTH CAROLINA. 
 
 AFFORDING FULL INFORMATION CONCERNING 
 
 THAT INSTITUTION. 
 
 PUBLISHED BYo S p ER uIM hE LEGISLATURE. 
 
 COLOMBIA, Z. 
 
 PRlNTtD, JOINTLY, BY A. 8. JOHNSTON AND A. G. SUMMER. 
 
 1848. 
 
^# 
 
 ^ /^^^ 
 
TABLE OF CONTENTS. 
 
 ACTS OF THE LEGISLATURE RELATING TO 
 THE BANK. 
 
 Introduction xii 
 
 1812. An Act to establish a Bank, on behalf of and for the benefit 
 
 of the State 1 
 
 " From "An Act to make Appropriations for 1812." 9 
 
 1813. An Act to explain and amend an Act entitled "An Act to 
 
 establish a Bank on behalf of and for the benefit of the 
 State." 10 
 
 1814. From " An Act to raise Supplies," &c H 
 
 " An Act to alter and amend the Charter of the Bank of the 
 
 State of South Carolina, so far as relates to the issuing of 
 Bills of a less denomination than One Dollar ; and for other 
 purposes therein mentioned 12 
 
 1816. An Act to authorize the President and Directors of the Bank 
 
 of the State of South Carolina to call in the Paper Medium 
 Loan Ofl&ce Bonds, and to establish a Branch in George- 
 town 13 
 
 '* From "An Act to make Appropriations for 1816." 13 
 
 " An Act to prohibit the issuing of Bills or negotiable Notes 
 under the denomination of One Dollar ; and for other pur- 
 poses therein mentioned , ..-, 14 
 
 1817. An Act amend the several Acts incorporating the Bank of 
 
 the State of South Carolina , 14 
 
 " An Act to alter and amend an Act entitled " An Act to 
 
 establish a Bank on behalf of and for the benefit of the 
 
 State." _... __ --..--- --.---. 15 
 
 " From " An Act to increase the salaries of the Governor of 
 
 this State, and other ofiicers therein mentioned " ___^ 16 
 
 1818 An Act to alter and amend the Charter of the Bank of the 
 
 State of South Carolina 16 
 
 *^ An Act to alter and amend the Charter of the Bank of the 
 
 State of South Carolina , ,. 16 
 
 1 
 
IV 
 
 TABLE OF CONTENTS. 
 
 1818. An Act to authorize the President and Directors of the Bank 
 
 of the State of South Carolina to establish a Branch of the 
 
 said Bank at Camden 16 
 
 « An Act to excuse the Officers of the several Branches of the 
 Bank of the State of South Carolina from the performance 
 of ordinary Militia duty, and serving on Juries _- 17 
 
 1819. From "An Act to make Appropriations for the year 1819." 17 
 
 1820. From "An Act to raise Supplies for the year 1820." __ 18 
 
 1821. From "An Act making Appropriations for the year 1821." 19 
 " An Act to provide a Sinking Fund for the redemption of the 
 
 Six per Cent Stock of this State 19 
 
 1822. An Act to protect the Bank and the holders of Bills and 
 
 Notes from frauds -- 20 
 
 « From " An Act to raise supplies for the year 1822." 21 
 
 " From "An Act to renew the Charter of the State Bank and 
 the Bank of South Carolina, and for other purposes therein 
 mentioned." 22 
 
 1823. From "An Act to raise Supplies for the year 1823." 23 
 
 1824. An Act to amend the Charter of the Bank of th« State of 
 
 South Carolina 23 
 
 " From " An Act to raise Supplies for the year 1824." 24 
 
 1826. From " An Act to raise Supplies for the year 1826."._ 25 
 
 " From "An Act to make Appropriations for the year 1826." 25 
 " An Act to admit and incorporate private Stockholders in the 
 
 Bank of the State of South Carolina 25 
 
 1827. From "An Act to make Appropriations for the year 1827." 29 
 ^- An Act to admit and incorporate private Stockholders in the 
 
 Bank of the State of South Carolina 30 
 
 1828. An Act to repeal an Act entitled " An Act to admit and in- 
 
 corporate private Stockholders in the Bank of the State of 
 South Carolina." 34 
 
 1830. An Act to authorize the President and Directors of the Bank 
 
 of the State of South Carolina to establish a Branch of the 
 said Bank at Hamburg 34 
 
 1831. An Act concerning the Bank of the State of South Carolina. 34 
 " From "An Act to make Appropriations for the year 1831." 36 
 
 1833. From "An Act to raise supplies for the year 1832." 37 
 
 " An Act to re-charter the Bank of the State of South Carolina. 37 
 
 1834. From " An Act to alter and amend the fourth Article of the 
 
 Constitution." ., 38 
 
 1836. From "An Act to make appropriations for the year 1836." 38 
 An Act to provide for the reception and disposition of so 
 much of the Surplus Revenue of the United States, as may 
 
 (C 
 
TABLE OF CONTENTS. V 
 
 be apportioned to this State, under the Act of Congress in 
 
 such case made and provided.. 39 
 
 1837. An Act concerning the Bank of the State of South Carolina. 39 
 
 1838. An Act for rebuilding the City of Charleston 40 
 
 " An Act to Amend an Act for rebuilding the City of Charles- 
 ton 45 
 
 " From "An Act making appropriations for the year 1838." 47 
 " An Act to authorize a subscription in behalf of the State to 
 
 the South- Western Rail Road Bank 47 
 
 1839. From "An Act concerning the ofl&ce, duties and liabilities of 
 
 Sheriff " --- - -. 48 
 
 " An Act to provide for an advance by the State on its sub- 
 scription to the Louisville, Cincinnati and Charleston Rail 
 
 Road Company 49 
 
 " An Act to extend the Charter of the South- Western Rail 
 
 Road Bank 50 
 
 " An Act to extend the time during which Loans may be grant- 
 ed, under the Act to re-build Charleston 51 
 
 1840. From "An Act to raise Supplies for the year 1840." __ 52 
 
 " From "An Act to ascertain and define the powers, duties and 
 
 liabilities of Masters, Commissioners and Registers in Equi- 
 ty, and to provide for the organization and regulation of 
 their respective offices." 52 
 
 " An Act to amend the Charter of the Bank of the State of 
 
 South Carolina 53 
 
 " An Act to provide against the suspension of Specie Pay- 
 ments, by the Banks of this State 53 
 
 '* An Act to make further provisions in relation to the Fire 
 
 Loan in Charleston 55 
 
 1841. From "An Act to incorporate certain Villages, Societies and 
 
 Companies, and to renew and amend certain Charters here- 
 tofore granted, and to establish the principles on which 
 Charters of Incorporation will hereafter be granted." 56 
 
 1842. From " An Act to make Appropriations for the year com* 
 
 mencing in October, 1842." 5Q 
 
 " An Act to amend an Act entitled " An Act for re-building 
 the City of Charleston," and to alter and extend the time 
 and terms for the re-payment of Loans made by the Bank 
 of the State of South Carolina, pursuant to the provisions 
 of the said Act, and of a subsequent Act to amend the 
 same _. 56 
 
 1843. An Act to provide for the payment of a portion of the public 
 
 debt _ __. 59 
 
^,j TABLE OF CONTENTS. 
 
 1843. An Act to restore to each Branch of the Legislature, the right 
 
 of enquiring into the finances of the State 60 
 
 " An Act to amend an Act to provide against the Suspension of 
 
 Specie payments by the Banks of this State 61 
 
 " From "An Act making appropriations for the year com- 
 mencing in October. 1843." 62 
 
 " An Act to establish the Office of Assayer 62 
 
 1844. From ''An Act making Appropriations for the year com- 
 
 mencing in October, 1844." 63 
 
 1845. From " An Act to make Appropriations for the year com- 
 
 mencing in October, 1845." _. 63 
 
 1846. From "An Act to make Appropriations for the year com- 
 
 mencing in October, 1846" 63 
 
 1847. From "An Act to make Appropriations for the year Qom- 
 
 mencing in October, 1847." 64 
 
 ORDINANCES OF THE CITY COUNCIL OF CHARLESTON, 
 RELATING TO THE FIRE LOAN. 
 
 1838. An Ordinance to prevent the erection of wooden buildings, 
 
 and to provide greater security in Charleston from fires 65 
 
 " An Ordinance to make such provisions as are required of the 
 City Council, to carry into effect the Act for re-building the 
 City of Charleston 67 
 
 1840. An Ordinance to amend the Ordinance entitled "An Ordi- 
 nance to make such provisions as are required of the City 
 Council, to carry into effect the Act for re-building the City 
 of Charleston." 68 
 
 1843. An Ordinance to make such provisions as are required of the 
 City Council of Charleston, to carry into effect the Act to 
 alter and extend the time and terms for the repayment of 
 loans made by the Bank of the State of South Carolina, 
 pursuant to the Act for re-building the City of Charleston, 
 
 and a subsequent Act to amend the same 69 
 
 Rules and regulations for carrying the foregoing Ordinance, 
 and the Act of 1842, into effect _. 70 
 
 REGULATIONS by the Bank, for loans under the Acts 
 for rebuilding the City of Charleston _- 71 
 
 RESOLUTIONS OF THE LEGISLATURE RELATING 
 TO THE BANK. 
 
 1813. Declaring members of the Legislature not eligible as Direc- 
 tors 73 
 
 " Concerning loan for paying direct tax to the United States. 73 
 
 1817. As to establishing a Branch of the Bank at Camden.. 73 
 
TABLE OF CONTENTS. m 
 
 1820. Directing joint Committee to be appointed to inspect the 
 
 Bank 74 
 
 " As to increasing the capital of the Bank, and admitting pri- 
 vate stockholders 74 
 
 1823. As to removing the Bank from Charleston to Columbia, and 
 
 establishing Branches at Cheraw and Hamburg 75 
 
 " Directing the President of the Bank to attend at Columbia 
 
 during the sessions of the Legislature 75 
 
 1824. Appointing Committees of Investigation 75 
 
 1 825. Directing a joint committee to be appointed at each session to 
 
 nominate Directors 75 
 
 " Concerning loans on mortgage, deposits by public officers, &c. 76 
 " Directing Comptroller General to report the debts and assets 
 
 of the State ___ 76 
 
 1826. Concerning Committees of Investigation 77 
 
 1827. Concerning the debt due to the Bank by Gen. Sumter 77 
 
 182? Appointing Committees of Investigation 78 
 
 " Directing Committees of Investigation to report the number 
 
 and salaries of the officers of the Bank 78 
 
 1 83 1 . Giving leave of absence to the President 79 
 
 1834. Giving leave of absence to the President 79 
 
 1838. Directing the Bank of the State to endeavor to keep at par 
 
 the bills issued by any Bank within the State 79 
 
 1839. Directing the President to exhibit, in a private report to the 
 
 Legislature, the indebtedness of the Directors.--- 79 
 
 1840. Concerning the bonded debt 79 
 
 " Directing the President to report the indebtedness of the Di- 
 rectors of the Branches , 80 
 
 " Appointing Committees of Investigation, who are also to re- 
 port the number, duties and salaries, of the officers of the 
 Bank. 80 
 
 1841. Directing President to publish Bank Compilation 81 
 
 " Concerning certain bonds of the Louisville, Cincinnati and 
 
 Charleston Bail Road Company. 81 
 
 " Concerning the Bank Compilation 82 
 
 " That Directors should not endorse for each other 82 
 
 " Concerning the suspension of Specie Payments, «&c 82 
 
 " Concerning debts due to the Bank by Corporations, &c 83 
 
 1842. Concerning the Commissioners under the Act for re-building 
 
 Charleston 83 
 
 " Appointing Committees of Investigation 83 
 
 " Directing the President to report what was the indebtedness 
 of the Directors on the 1st of each month, and certain de- 
 tails of the profits and expenses of the Bank 84 
 
viii TABLE OF CONTENTS. 
 
 1 843. As to purchasing the public debt, by the Bank 84 
 
 " Directing the Special reports of the President of the Bank 
 
 and Comptroller General to be printed and bound with the 
 other reports of the Legislature 85 
 
 1844. Concerning the Nesbit Manufacturing Company.__ _. 85 
 
 1845. Concerning the South Carolina Rail Road Company 85 
 
 " Directing dividends received from the South Carolina Rail 
 
 Road Company to be applied to the redemption of the pub- 
 lic debt 86 
 
 1 846. Directing new edition of the Bank Compilation 86 
 
 " Directing President to furnish the monthly statement of the 
 
 indebtedness of the Directors 86 
 
 " As to abolishing the Bank, and exposing the names of its 
 
 debtors 86 
 
 1847. As to advancing the periods fixed for the payment of the public 
 
 debt, and arranging for it to be paid in smaller instalments. 87 
 « Directing President to report the quantity of small bills in 
 
 circulation, balances of deposits, &:c 88 
 
 " * Directing Comptroller Greneral to publish in the newspapers 
 
 the monthly statements of the Banks 88 
 
 " Directing Comptroller General to prepare a statfisaent of the 
 
 capital of the Bank, what sums it has paid on account of 
 
 the public debt, its profits, &c. &c 88 
 
 LIST OF INVESTIGATING COMMITTEES. 90 
 
 REPORTS OF INVESTIGATING COMMITTEES. 
 
 For the year 1820.-- 93 
 
 1821— Senate ._. 95 
 
 House 119 
 
 1825 126 
 
 1827 141 
 
 1829 ----- 158 
 
 1831--- - _. 170 
 
 1833 - ._. 175 
 
 1835 - _ 185 
 
 1837— Senate. 187 
 
 House 190 
 
 1839. -_ _- 193 
 
 1841 218 
 
 1843..- 263 
 
 1845 289 
 
 1847 _ 309 
 
 COLUMBIA. 1831.-. -_ 172 
 
 1833 183 
 
TABLE OF CONTENTS. 
 
 IX 
 
 1835 186 
 
 1837 192 
 
 1839 --- - 214 
 
 1841... _ 254 
 
 2d Report 259 
 
 3d " 260 
 
 1843.- -. 285 
 
 1845 , 302 
 
 1847 338 
 
 CAMDEN. 1831 __ 172 
 
 1833 183 
 
 1837 192 
 
 1839 _ 217 
 
 184 1. -_ 262 
 
 1843 __ 287 
 
 1845 307 
 
 1847 341 
 
 GEORGETOWN. 1831... _ 174 
 
 1833 1j4 
 
 REPORTS OF THE PRESIDENT AND LIRECTORS 
 OF THE BANK. 
 For the year 1813— Elliott. 343 
 
 1814 '' 346 
 
 1815 " 347 
 
 1816 ''• ... 343 
 
 1817 " 348 
 
 1818 " 349 
 
 1819 " _ 350 
 
 1820 " 392 
 
 1821 " 393 
 
 1822 " 400 
 
 1823 " _ 400 
 
 1826 " 402 
 
 1827 " 402 
 
 1 830— Bennett 407 
 
 1831— Colcock 410 
 
 183-2 " __ 417 
 
 1833 " 419 
 
 1834 ^' 422 
 
 1835 " 426 
 
 1836 " _ 429 
 
 1837 " 431 
 
 1838 " 435 
 
 2 
 
jt TABLE OF CONTENTS. 
 
 1839— Rose 438 
 
 1840— Elmore 442 
 
 1841 " - 453 
 
 1842 " - 463 
 
 1843 " 470 
 
 1844 " - 479 
 
 1845 " - -- 495 
 
 1846 " 506 
 
 1847 " -- 522 
 
 REPORTS OF THE PRESIDENT OF THE BANK, 
 IN ANSWER TO SPECIAL CALLS. 
 
 1841. In relation to salaries of Solicitors 535 
 
 " On the bonded debt 536 
 
 " On loans to corporations, and the balance due by the George- 
 town and Hamburg Agencies 539 
 
 1842. On the Fire Loan borrowers 544 
 
 1843. On the payment of the Public Debt, the Sinking Fund, the 
 
 fi.scal operations of the Treasury, &c. (answer to Gov. Ham- 
 mond's Message) 549 
 
 In answer to a Resolution requiring the President of the 
 
 Bank to report losses before 1843 573 
 
 1824. On the removal of the Bank 580 
 
 EXTRACT from minutes of Columbia Branch, refusing to 
 expose accounts 579 
 
 REPORTS OF COiMMITTEES OF WAYS AND MEANS. 
 
 1817. Approving of the management of the Bank 586 
 
 1820 As to small bills _. 586 
 
 1821. On the report of the President of the Bank 586 
 
 1823. On certificates of Stock being countersigned by Comptroller. 587 
 " On increasing the capital of the Bank. &c. &c 587 
 
 1824. On the rep(»rt of the President of the Bank 588 
 
 1829. On the report of the President of the Bank _ _. 588 
 
 1830. On the Bank and the Public Debt 589 
 
 1831. On the Bank and the Public Debt _ 593 
 
 1833. On the Bank and the Public Debt. _ 600 
 
 1835. On the Bank and the Public Debt 601 
 
 1838. On the Banks and currency 602 
 
 1840. On the bonded debt 603 
 
 1 84 1 . On the Banks, their suspension, and measures proposed against 
 
 them _ 603 
 
 1843. On the Bank, and the policy to be pursued as to purchasing 
 
 the public debt. _. 607 
 
TABLE OF CONTENTS. xi 
 
 1845. On the debt of the South Carolina Eail Road Company to 
 
 the State. _ _. 610 
 
 " On the application to be made of the dividends of the South 
 
 Carolina Rail Road Company. __ 610 
 
 1847. On arranging for the payment of the public debt in smaller 
 
 instalments 611 
 
 REPORTS OF COMMITTEES ON FINANCE AND BANKS. 
 
 1833. On debt due to Bank by Columbia Female Academy 612 
 
 1839. On exhibiting the indebtedness of the oflBcers of the Bank.. 613 
 1841. On the application of the Louisville, Cincinnati and Charles- 
 ton Rail Road Company, to be alhtwed to cancel certain 
 bonds payable in London, and to substitute others payable 
 
 in Charleston 613 
 
 1847. On Resolutions relative to the purchase of the Fire Loan and 
 
 Rail Road Bonds in Europe, by the Bank 614 
 
 REPORTS OF SPECIAL COMMITTEES. 
 
 1844. Concerning debts of Incorporated and Manufacturing Compa- 
 nies 643 
 
 1846. Concerning the Nesbit Manufacturing Company 644 
 
 " On Resolutions in regard to abolishing the Bank, publishing 
 
 the names of its debtors, &c 646 
 
 REPORTS OF THE COMPTROLLER GENERAL. 
 
 Extracts, from 1813 to 1841 668 to 680 
 
 " " 1843 705 
 
 " " 1844, 1845, 1846, 1847,.-_ 709to/711 
 
 Report of 1830, 681 
 
 " •' 1831 686 
 
 " " 1824, on removal of the Bank 695 
 
 " " 1 843, in answer to a call for information as to finan- 
 ces of the State 705 
 
 " ^ " 1847, in answer to call from Senate, as to amounts 
 
 paid to and paid by the Bank 712 
 
 Table of Debts and Credits of the State, 1847 715^ 
 
 GOVERNOR HAMMOND'S MESSAGE, concerning the 
 
 Bank..-- _ 716 
 
 INDEX... -. 721 
 
INTRODUCTIO-N 
 
 By a Resolution of the Legislature, passed the 18tli December, 1840, 
 the President of the Bank of the State of South Carolina was directed -'to 
 have compiled and published, in pamphlet form, all Acts and ^Clauses of 
 Acts and all Resolutions passed and adoptt d by the Legislature in relation 
 to the said Bank, and Branches thereof, and that he do cause a sufficient 
 number of copies to be placed on the tables of the Members at the begin- 
 ning of the next Session." In obedience to this Resolution, the President 
 compiled and caused to be published, the Acts. Clauses of Acts, and Reso- 
 lutions referred to, and in addition thereto, collected and published every 
 Report of the President and Directors, and of the several Investigating 
 Committees, which could be procured, with such parts of the Reports 
 of the several Comptroller Generals, as related to the Bank. The 
 copies required for the Members of the Legislature were placed on their 
 tables, at the session of December, 1841, but a considerable number, in- 
 tended for the Library, were unfortunately consumed by a fire, which de- 
 stroyed the office of A. H. Pemberton, Esq. the State Printer, after the 
 adjournment, and before they were completed and delivered. Although 
 the compilation did not include the Reports of the President and Direct- 
 ors for 1824, 18-25. 1828 and 1829, and also the very full and able Report 
 of the Investigating Committee of the mother Bank, made in Decenjber, 
 1827, by tl e Hon. Thomas S. Grimke. which had not yet been recovered 
 it was found to contain so much that was indispensable to a proper know- 
 ledge of the history and operations of the Bank, that the Legislature at 
 its next Session in December, 1842. ordered a new edition. That edition 
 was presented enlarged by subsequent Reports, and also by all the Or- 
 dinances of the City Council of Charleston, and the Regulations of the 
 Bank, in regard to the Fire Loans. These latter documents have so im- 
 'portant a be.iring on the transactions of the Bank, and will be so very use- 
 ful for understanding the operations of the Fire Loan, that it has been con- 
 sidered best to include them. 
 
 The whole edition of 1843 having been exhausted, the Legislature, at 
 December Session of 1846, ordered the President to prepare a new one. — ^ 
 To render it as complete as possible, great effi)rts have been made to recov- 
 er the documents not included in preceding editions ; and from private 
 libraries, as well as by overhauling the journals and archives of the two 
 
INTRODUCTION. xni 
 
 Houses, valuable and interesting additions have been secured for this vol- 
 ume. To these also are added such Reports, Resolutions and Acts of the 
 Legislature, the President and Directors, and other public functionaries, as 
 have been made since 1843 to the close of December, 1847. 
 
 The documentary history of this Institution cannot be perfect, without 
 some account of its origin. It is well known, from its charter, that it was 
 created by the Legislature in December, 1812; but the proceedings out of 
 which it sprung, were only published in the papers of the day, have gone 
 out of print, and are now only to be found in the Journals of the two 
 Houses, and one Report, not recorded in the Journal, but filed away 
 amongst the archives of the House of Representatives. As it was believed 
 that the account which they present of this important measure would not 
 be without interest and value, and would come within the views of the Le- 
 gislature''in ordering this publication, the Journals of the two Houses were 
 carefully examined, and the following extracts taken ; which, with the copy 
 of the Report made by the Chairman of the Committee of the House of 
 Representatives, also inserted at its proper place, will present the legislative 
 history of the transaction in its true and regular order. 
 
 It is well known, that the idea of a Bank grew out of the peculiar diffi- 
 culties of that period. England and France were at war with each other, 
 and by their repeated invasions of the rights of the United States, as a 
 neutral power, had caused the imposition of the embargo and non-inter- 
 course Acts of 1807 and 1803. A policy so restrictive had so cutoff all 
 foreign trade, since December. 1^*07, that the agricultural productions of 
 South Carolina, the source of the income of most of her citizens, had con- 
 tinued to accumulate on their hands, at home or at the sea ports, and had 
 become so depreciaU d. as to be unsaleable, and without value. Money had 
 almost ceased to circulate amongst the people, either in the form of specie 
 or Bank notes ; for although there were then four Banks in the State, they 
 were all located in Charleston, and conducted on principles purely commer- 
 cial, so that they afforded no relief to the Agricultural and other suffering 
 classes in the country. These classes were laboring under most distressing 
 embarrassments. An unexampled prosperity had, for many years prece- 
 ding the adoption of the embargo policy, rewarded the enterprise and in- 
 dustry of the people. The sudden revulsion produced by those measures, 
 closed at once the sources of their prosperity, and paralyzed their energies. 
 Year after year of its continuance brought them no alleviation, and only 
 plunged them in deeper and deeper. To add to their difficulties, war was 
 declared in June, 1812, against Great Britain, and to support its opera- 
 tions, the taxes, both of the State and Federal Governments, were greatly 
 increased. In this condition of things, when specie had almost disappear- 
 ed, when no substitute for it was in reach of the people, when debts and 
 taxes had to be paid, when property had lost immensely in its value, and 
 
XIV INTRODUCTION. 
 
 the most fearful sacrifices were impeiidiDg, the idea was suggested of a sys- 
 tem of public loans, based on public credit on the one hand, and on the 
 property of the people borrowing on the other, to restore the prostrated 
 energy of the State, and revive the hopes of its despondent citizens. With 
 whom this measure of relief originated, it is not, perhaps, now possible to 
 decide with certainty. What we do know, however, is, that the first tangi- 
 ble movement came from the Hon. Joseph Black, then a Representative 
 from Abbeville, and for many years after known as a diligent and faithful 
 member of the Senate, from the same District. The Resolution below was 
 introduced in the House of Representatives by him, on the 25th Nov. 1812, 
 and was immediately passed, and sent to the Senate, 'i hat body con- 
 curred the next day, and the Joint Committee, raised under the Resolution, 
 commenced their deliberations. These resulted in a Report to the Senate 
 of the Bill chartering this Bank, made by the Hon. Stephen Elliott, af- 
 terwards its first and most able President. No written statement of the 
 views of the Committee accompanied the Bill. A written Report was 
 made by Mr. Black to the House of Representatives, which is introduced 
 below in its proper place, in the proceedings of the two Houses. 
 
 In the House of Representatives, Nov. 25, 1812. 
 
 [^See Journal^ p. 21.] 
 
 " Capt Black submitted the following Resolution, which was agreed to, 
 viz : Resolved, That a message be sent to the Senate, informing them that 
 this House have appointed a Committee of Capt. Black, Mr. D. E. Huger, 
 Mr. Yancey, Maj. Felder and Col Lowry, to meet a Committee of the Se- 
 nate, to inquire into the expediency of authorizing a loan, or some other 
 measure, that may have a tendency to supply the want of the circulation of 
 Specie, and to request their concurrence therein, and that the said Joint 
 Committee have leave to report by bill or otherwise." 
 
 The following message was sent accordingly : 
 
 In the House of Representatives, Nov. 25, 1812. 
 
 " Mr. President and Gentlemen of Senate : 
 
 This House have appointed Capt Black, Mr. D. E. Huger. Mr. Yancey, 
 Maj Felder and Col. Lowry, a Committee to inquire into the expediency 
 of authorizing a loan, or some other measure, that may have a tendency to 
 supply the want of the circulation of Specie : and request that your House 
 will appoint a Committee to confer with the Committee of the House on 
 the practicability and expediency of such a measure, and that they have 
 leave to report by Bill or otherwise. 
 
 JOHN GEDDES, Speaker." 
 
 In the Senate, Nov. 26, 1812. 
 
 \_See Journal, pp. 3 4-5. J 
 
 The foregoing Message being received. Ordered. That the following mes- 
 sage be sigued by the President and sent to the House of Representatives, 
 via : 
 
INTRODUCTION. xV 
 
 In the Senate, Nov. 26, 1812. 
 
 " Mr. Speaker and Gentlemen : 
 
 Agreeably to your Message 'just received, this House have appointed 
 Col. Mitchell, Mr. Lipscomb, Mr. Elliott, Maj. Savage Smith, and Col. 
 Wm. Smith, a Committee, to join the Committee of your House, in order 
 to inquire into the expediency of authorising a loan, or any other measure 
 that may have a tendency to supply the want of the circulation of Specie. 
 This House also grant leave to report by Bill or otherwise. 
 By order of the Senate." 
 
 " The Joint Committee having met and considered the subject referred to 
 them, agreed on a Bill to establish a Bank for the State. In the Senate, 
 Mr. Elliott, from the Joint Committee of both Houses, " on the expediency 
 of a loan, &c. to -supply the want of the usual circulation of Specie," re- 
 ported a Bill, entitled a Bill to establish a Bank in behalf of and for the 
 benefit of the State. — [See Journal, p. 183.] 
 
 Read the Bill a first time. 
 
 Ordered^ That the Bill be read a second time to-morrow. On motion, 
 Ordered, That 200 copies of the Bill be printed for the use of the Senate. 
 
 In the House of Representatives. 
 [See Journal p. 96.] 
 "Mr. Black, from the Joint Committee, submitted the following Report : 
 The Committee appointed by this House to meet a Committee of the 
 Senate, to consider of the expediency of a loan or some other means to sup- 
 ply the want of circulating specie. Report: That they have met the Com- 
 mittee of the Senate in free conference, and that they have duly considered 
 the same, and are of opinion that the cash in hand and the funds belonging 
 to the State would form a sufiicient capital to enable the State to form a 
 Bank, with a firm persuasion that the interest of the State would be great- 
 ly benefitted thereby. We, your Committee, therefore respectfully recom- 
 mend that an Act do pass, so vesting the cash in hand and other funds, in 
 a State Bank, with a power to loan on real security and personal, at an in- 
 terest of seven per cent., the interest being paid in advance annually, and 
 renewable for years ; being fully persuaded that such an institution would 
 be greatly advantageous to the State, as well as many of the individuals who 
 now labor under great difficulties from the want of circulating Specie. — 
 Your Committee further believe, that with the cash in your Treasury, and 
 the disposable funds of the State, a capital might be formed, amounting to 
 nearly one million of dollars. All which is respectfully submitted by your 
 Committee. 
 
 JOS. BLACK, Chairman^' 
 
 The Bill having undergone the discussion which its importance demand- 
 ed, and passed a second reading in the Senate, was sent to the House of 
 Representatives. Here it had in due course two readings, and came back 
 to the Senate. The following entry in the Journals, shows the final action 
 of that body. — [See Journal, pp. 245-6.] 
 
XVI INTRODUCTION. 
 
 "The House of Reprrsentatives having read a second time and returned 
 to this House, the Bill entitled a Bill to establish a Bank in behalf of and 
 for the benefit of the 8tate. This House then read the Bill a third time. 
 The question was taken, that the Bill do pass, when the Yeas and Nays 
 were called by two members, and were as follows, viz : 
 
 "Yeas:— Samuel Warren. President; Messrs. Saml. J. Alston, Wm. 
 Alston. Jos. Bellinger, Jacob Belser, James Campbell R. Cannon. Wm 
 Caldwell, Saml. Dunlap, Stephen Elliott, Thos. Fraswell, Benj. Hart, John 
 Hopkins, Jos. Jenkins. Nathan Lipscomb, Peter Lesesne. John McCreary, 
 Wm B. Mitchell, Jas. Mitchell, Eliab Moore, Frederick Nance, Stephen 
 Ravenel, Joseph Reid. Jas. B. Richardson, Wm. Rouse. Savage Smith, 
 Wm. Smith, Reuben Starke, John Thomas, Starling Tucker, Samuel M. 
 Wallace, Wm. Whitefield. 
 
 "Nays: — Messrs. Johu Johnson, Jr.. and Jas E. McPherson. 
 
 " So the same was determined in the affirmative." 
 
 The Bill having now had its three readings in the Senate, only required 
 the third reading in the House of Representatives. It was immediately 
 sent to that House, and its Journal [p. 183.] gives the following account of 
 their final action on the subject. 
 
 "The House then proceeded to a third reading of the Bill entitled 'A Bill 
 to establish a Bank in belialf of and for the benefit of the State.' And on 
 the question, shall the Bill pass the title be changed to an Act and return- 
 ed to the Senate, the Ayes and Nays were required, and are as follows, 
 viz : 
 
 " Ayes 74. — Navs 28. 
 
 " Those who voted in the affirmative, arc : Hon. John Geddes Speaker; 
 Messrs. Alexander. Allen. Ander.><on Barr. Bay Black Boiiham Biadford. 
 Bullock. Burt, Butler, (^ildwell Cave Clarke R. Crenshaw. Creswell S. 
 Cunningham Bollard Donnald, D DuBose Edwards Faust. Fishburne. 
 Gist Glenn Gray Grice. Halbert Heath Henderson Hill Hopkins Hurst, 
 Hutton James, Jennings Johnson Keckley Kenncr Lee. Leith Lowry. 
 Maner. Massey. Means, Mellichainpe Mills. Mc(iill. McGee Montgon)ery, 
 Mulligan. Nesbitt Ovcrstieet. Peay Perrin. Pettus J^ Pope. W Pope 
 Riley Sumnier.s. Taylor. Tarrant B. Thompson J Thompvson. J. Walker, 
 S. Walker, Willia^nis, J Wilson, J. L. Wilson, Witherspoon, Woodward, 
 Wood and Yancey 
 
 '' Tho.se who voted in the negative are : Messrs. Allison. Arthur. Ben- 
 nett Carroll Cogdell. A Crenshaw R. Cunningham. Danl S. DuBose, 
 Evans. Feider Frier.«on Gaillard. D K. Huger Jermaine Kirkland Lance, 
 Leggett M ).scr Palmer Pickens. Prin^le Rowell Steedman. Salley. Vance, 
 Verree and Youngblood. (Ooss by a Resolution of IDth December to al- 
 low his vote to be entered in the negative.) 
 
 " So the Bill was agreed to. 
 
 '• Ordered That the Bill be returned to the Senate and that the yeas and 
 nays be printed." 
 
 Large bodies are seldom unanimous in their measures. Many causes 
 conspire t.; create differences of opinion ; minds are of unequal intellectual 
 powers ; surrounding circumstances present the same subject in various 
 
INTRODUCTION. xvii 
 
 views to different persons, and provide a wide field for honest disagree- 
 ment ; political associations, party spirit, personal views and clashing in- 
 terests, co-operate powerfully, often imperceptibly, yet not the less certain- 
 Iv, to influence the deliberations and direct, to some extent, the conduct of 
 Legislators, as well as of other men. No measure was calculated to press 
 into its consideration more of these disturbing agencies, than the establish- 
 ment of a Bank for the State. Such, however, were the exigencies of the 
 country, and such, we may infer, were the weight of reasons in its favor, 
 that the bill was finally passed, after able discussion, by a very great ma- 
 jority ; the aggregate vote of the two Houses being 106 for, to 30 against 
 it. 
 
 The conflict which thus commenced with the existence of the institution, 
 has occasionally been revived, and made to agitate the public mind. Opin- 
 ions are arrayed on both sides, but as opinions of themselves are mere 
 speculations, they settle nothing, and the great question still remains : 
 " Does the Bank answer the ends for which it was established ?" This is 
 a question of great importance to the State, and whatever will throw light 
 upon it cannot but be acceptable. The proper answer to it are facts, which 
 are to be found in part in the ofl&cial documents collected and published 
 in this volume, and partly in transactions on record nowhere but in memo- 
 ry and observation, scattered through the experience of years, and diffused 
 over the whole State, exhibiting the effect of its operations on general busi- 
 ness, or in individual cases. If all these could be collected, and so arrang- 
 ed as to present them in one view, elucidating their legitimate bearing on a 
 subject of so much consequence to the public welfare, it would doubtless be 
 acknowledged to be a work of great utility. However desirable it might be 
 here, it is obvious that its length would exclude it from these pages ; but 
 as some index to what may in part answer this question, a summary of a 
 few leading particulars is subjoined, succinctly yet specifically indicating 
 the points by which those whose leisure or duties incline them to the task, 
 may be enabled to explore their way. 
 
 Before this summary is submitted, a few observations, explanatory of the 
 circumstances which have necessarily exercised an influence over the opera- 
 tions of the Bank, may assist in the examination. 
 
 The Bank, it will be remembered, was chartered in a time of war and 
 great pecuniary embarrassments, and when the burthens of taxation were 
 beginning to bear heavily on the country. It was looked to for much re- 
 lief to individuals, and for assistance to the State, in any exigency, and 
 especially in case the defence of her territory against the enemy required 
 it. It was expected that while ministering in aid of the citizens, and their 
 business and pursuits, it would be a powerful adjunct to her Treasury and 
 resoures. Thirty-six years, filled with events and changes ^f the greatest 
 magnitude, of all that can affect the condition of nations and of individu- 
 als, have passed by since it assued the responsibilities of its existence. — 
 How has it stood the test ? 
 3 
 
xviii INTRODUCTION. 
 
 The world had never before, in any equal portion of time, experienced so 
 many and so great revolutions in the condition and occupations of its in- 
 habitants. From wars and peace, from the amazing discoveries of science, 
 and the inventions and improvements in the arts and implements of all in- 
 dustrial pursuits, from the triumphs with steam, in manufactures and navi- 
 gation and Hail Eoads, and the natural progress of things from such causes 
 in this age of universal advancement, the very elements of commerce have 
 been altered, its channels shifted, and its acting agencies been changed, 
 often, and suddenly, and almost without warning. Such irregularities in 
 the great business of commerce could not but produce effects co-extensive 
 on all other business connected with it ; their very foundations were shaken, 
 and individuals, communities and nations, the richest and the most powerful, 
 as well as the poor and lowly, have been compelled to bow to these storms, 
 and to bend under these trials. No community has felt these vicissitudes 
 more sensibly than our own ; great have been the changes they have wrought 
 in its condition and habits, and in the mode of transacting its business. In 
 the wrecks of these times, and the failures and losses incident to them, con- 
 fidence, the golden chain which holds society and its countless interests to- 
 gether, has been greatly impaired. From Banks especially, has it been, 
 in late years, almost entirely withdrawn. The effects on them were, an 
 universal suspension in 1837 ; and, after resumption, another almost as 
 universal in 1839 ; the breaking of many ; the curtailment of the business 
 and profits of all, and an almost entire change in their management and 
 modes of transacting business. Thus, this institution has witnessed peri- 
 ods of intoxicating prosperity, and of crushing adversity — the temptations 
 and trials of both have been known and passed, and it has been, by these 
 vicissitudes, subjected to almost every exigency which can test its capabili- 
 ty as a Bank, or as a fiscal agent for the State. 
 
 It should also be borne in mind, that when it was chartered, in 1812, the 
 State owed an outstanding Revolutionary debt, the payment of which was 
 charged, by the 1 4th and 15th sections of its charter, on the capital of the 
 Bank. By subsequent loans the debt of the State was very greatly en- 
 larged, and the interest and principal, instead of being defrayed by taxation, 
 was made payable by the Bank, out of its profits. 
 
 After these explanatory observations the question again recurs, " How 
 has the Bank fulfilled the ends for which it was established ?" The follow- 
 ing summary contains, in the briefest form, a part of what may be said in 
 reply to this grave inquiry. 
 
 At the commencement of its operations, it sustained the best interests of 
 the State, and relieved by its loans and discounts, the people, for whose aid 
 it was chartered ; it has continued to pursue the same policy ever since ; 
 {Rep. Inv. Cem. of\M\,p. 236.) and, by this course, it has averted ruin 
 from many, helped some through critical periods of adversity, rescued others 
 from necessitous or grasping creditors, lands from being abandoned to waste 
 
INTRODUCTION. xix 
 
 and unproductiveness, saved valuable citizens from emigration and exile, and 
 prevented slaves, in considerable numbers, from being carried away, pre- 
 serving them to cultivate our soil, to increase the wealth of the State, and 
 to pay taxes towards the support of its Government. {PresicVt. Bcp. 1841, 
 p. 454, and 1843, 470.) 
 
 In the mean time it contributed its full proportion of aid to the general 
 business of the State by the support of all the interests of the Agricultu- 
 ral, Commercial and Mechanic pursuits. 
 
 By the action of the mother Bank and its Branches, it has assisted mate- 
 rially to develope and improve the State and its interior towns, especially 
 by furnishing the means to make good markets of the latter for the produce 
 of the upper Districts, near the homes of the producers, and facilitating its 
 exchanges and transmissions to the points of consumption. (FresdHs Rep. 
 1819,^?. 359. Rep. Comp. General, 1824,^. 698.) 
 
 It has saved, consolidated and made profitable, funds of the State, which 
 would have been consumed, or been unemployed, or employed less profita- 
 bly. {Rep. Inv. Com. 1820,^?. 93. Ih. 182\, pp,96 and 124. Fresidfs Rep. 
 1821, 2Jp. 97 to 99. Ih. \8\\, p. 346.) 
 
 In time of war it made important advances, and saved, by some of them, 
 large sums for the State : {Rep. Inv. Com. 1821,79/?. 96 and 124:) it offer- 
 ed to make far greater advances, if needed, for its defence from the enemy, 
 (President's Rep. 1819, jo. 396.) and it made actual loans at critical times, 
 for the defence of Charleston, to the officers of the General Government. 
 (Journal of Board of Directors.) 
 
 It has made large advances for the State in times of peace, sometimes 
 for emergencies not provided for, but more often to supply temporary defi- 
 ciencies in the Treasury, and pay the ordinary expenses of the State, by 
 which an increase of taxes has been avoided. (Rep. Inv. Com. 1821, pp. 
 96 and 124. Fresdts Rep. \S2\, pp. 100 102. Id. 1814,^. 346. Id. 1839, 
 2x 438. Id. \8iO,p2y. 444,5,6.) 
 
 The Bank has always been a most important agency of the State in regard 
 to her finances, credit, and public debt — it has been entrusted with the 
 high discretionary power of creating a public debt by borrowing $300,000 
 to increase the capital, (14 Sec. Charter) which it never exercised, and again 
 in 1832 with power to borrow a like sum of $300,000, which was never done. 
 (A. A 1832, p. '37.) 
 
 But in paying and reducing the public debt, it has been almost the only 
 agency used, and has furnished nearly all the money paid ; the facts are as 
 follows : 
 
 In 1812, when it was chartered, the State owed a balance of Revolu- 
 tionary debt called "Old 6 per cents," " Deferred 6 per cents," and " 3 per 
 cents" amounting to $540,004 24. This debt was charged on the capital 
 of the Bank, and out of that capital the Bank has purchased and extin- 
 
XX 
 
 INTRODUCTION. 
 
 guisbed $298,537 14, for which it paid $248,892 87, saving thereby $49,- 
 644 27, but .getting credit for only the sum actually paid. 
 
 By the Act of 1820 (p. 19) and several subsequent Acts, the capital and 
 profits of the Bank have been pledged as security for money borrowed by 
 the State. Before this Act passed the profits had all been paid into the 
 Treasury, and since, they have been applied to pay the interest and prin- 
 cipal of the public debt. The profits made by the Bank 1st October 1847, 
 were $4,587,050 74, while its payments for the State have been $5,331,636 
 07, paid as follows, viz : for Revolutionary debt out of capital $248,892 87: 
 into the Treasury, $592,001 28: interest on stocks $2,723,502 56: 
 and for payment of principal of public debt $1,767,239 36. These pay- 
 ments come down to 1st June 1848, and of this vast sum the capital and 
 profits of the Bank contributed $4,835,943 61, and the Surplus Revenue 
 and Rail Road dividends the balance. 
 
 But besides these payments of money for the State the Bank has further 
 reduced the debt of the State for the Fire Loan from $2,000,000 to $1,810,- 
 253 37, by cancelling the Bonds of this Loan which it held as part of its 
 capital, to the amount of $189,746 63, having asked and obtained the con- 
 sent of the Legislature therefor in 1843. {President's Rep. 1843. p. 472. 
 Rep. and Res. of Com. W. M. 1843, p. 608.) 
 
 During the thirty-six years of its existence it has been the depository of 
 the revenues and funds of the State. Besides those from the Surplus Rev- 
 enue and Fire Loan, it has received, kept safely and paid out, without 
 charging or losing a cent, all the funds of both the Treasuries, making, as 
 the public exigencies required, transfers of large sums from one to the other. 
 These receipts and payments amounted on 1st Oct. 1847, to $27,896,650 
 04, and have since swelled to over $28,000,000. 
 
 While the Bank has discharged with remarkable advantage for the public 
 interest, and without charge or loss, all these important services, it has pre- 
 served the capital entire, and its f jnds safe, and maintained the character 
 and credit of the State in Europe and at home, without blot or suspicion, 
 by punctually paying the interest and principal of the debts of the State 
 as they fall due, preserving for South Carolina an eminent and enviable 
 reputation for good faith and punctuality in her transactions. (Rep. Inv. 
 Com. 1841, p. 236. Presides Rep. 1839, p, 438; Ih. 1840, p. 444-5. 
 Rep. Special Com. 1846,jp. 652. Rep. Com. Finance ^ Banks, 1847.) 
 
 And it has sustained, in like manner, its own credit unimpaired, espe- 
 cially during the last suspension, by maintaining specie payments, in ac- 
 cordance with the wishes and best interests of the State ; ( Comp. Genl. 
 Rep. 1837, p. 678. Presdt's Rep. 1837, p. 431. lb. 1839, p. 439. lb. 
 1840, ;?/9. 442, 3, 4, 5 ; ) for which last, and its "co-operation with the 
 State in promoting those measures which have been deemed essential to the 
 public welfare," the Legislature of 1841 was pleased to declare that it " de- 
 served the confidence and support of the people." (Resolution^ 1841, p. 
 82.) 
 
ACTS. 
 
 AN ACT TO ESTABLISH A BaNK, ON BEHALF OF AND FOR ^ ^ ^g^g 
 THE BENEFIT OF THE StATE. 47. 
 
 Whereas, it is deemed expedient and beneficial, botli to tlie Statutes at 
 State and to the citizens thereof, to establish a Bank on the Large, vol. 8, 
 funds of the State, for the purpose of discounting paper, P- 24. 
 and making loans for longer periods than has heretofore 
 been customary, and on security different from what has 
 hitherto been required : 
 
 1. Beit tJiercfore enacted by tlie Honorable the Senate <5^^^Bank estab- 
 House of Representatives^ now met atid sitting in Gew^ra/ Ushed on be- 
 AssemUy^and by tlie autJwrity of tlie same^ That a Bank half of State, 
 shall be established in the name and on behalf of the State of 
 South Carolina, in the manner and on the conditions and limi- 
 tations hereinafter expressed : 
 
 1st. All the stock belonging to the State, of all descriptions 
 whatsoever, whether six per cent, stock of the United States, q^ j^ i r ^-^ 
 three per cent, stock, loan office bonds, shares in the State Bank. 
 Bank and in the Planters' and Mechanics' Bank, and all 
 bonds and notes due the State, shall constitute and form the 
 capital of the said Bank, and shall be vested in the President 
 and Directors, to be appointed as hereinafter prescribed, and 
 their successors ; and the faith of the State is hereby pledged 
 for the support of the said Bank, and to supply any deficiency 
 in the funds specifically pledged, and to make good all losses 
 arising from such deficiency. 
 
 2d. All the unexpended money in the Treasuries of this What monies 
 State, and all the taxes to be hereafter 'collected on account to be deposited 
 of the State, shall be deposited in this Bank, to aid and facili- therein, 
 tate the operations of the same, subject, nevertheless, to all 
 the drafts on the part of the State, authorized by legal appro- 
 priations. 
 
 3d. All the stock now in the possession of the State, which gj^^j^ ^^ l^g jjg_ 
 has been purchased to meet the claims of Strickhysen and posited in said 
 Luxembourg against the State, shall be deposited in the said Bank. 
 Bank, and the interest be received by the Bank, until the 
 payment of the same to the creditors of the State be ordered . 
 by law. 
 
2 ACTS OF LEGISLATURE. 
 
 1812. 4th. The President and Directors for the time being shall 
 
 v^^-v'^^ have power to elect and remove the Cashier ; and they shall 
 Power of the also have power to appoint such officers, clerks, and servants 
 President and ^j^^^qj. them, as shall be necessary for executing the business 
 Directors. ^^ ^^^ ^^.^ corporation, and allow them ^uch compensation for 
 their services as may be reasonable. They shall receive mo- 
 ney on deposite, and pay away the same to order, free of ex- 
 pense, discount bills of exchange, accepted and payable within 
 the State of South Carolina, and notes with two or more good 
 names thereon, or secured by a deposit of Bank or other public 
 stock, at a rate of interest not exceeding one per cent, discount 
 for sixty days ; and shall also have power to make loans to 
 Loans, how to citizens of this State, in the nature of discount, on realorper- 
 be made. sonal property, secured by mortgage and power of attorney to 
 confess judgment on default of payment : Provided, that the 
 sum so loaned shall never exceed the one-third part of the real 
 unincumbered value of the property so mortgaged ; and provi- 
 ded further, that the loan shall never be for a longer term than 
 one year, nor draw a greater interest than at the rate of seven 
 per cent., which shall always be paid in advance, and shall al- 
 ways be payable in the months of February or March next 
 succeeding such loan, unless an earlier day be fixed by the 
 borrower ; and provided further, that no loan be in any case 
 whatever renewed, unless the interest for the ensuing year be 
 paid in advance ; and provided further, that no individual be 
 permitted to borrow on his own account, on the security of 
 real property, a greater sum than two thousand dollars. 
 Loans, how to ^*^- ^^^^ Directors for the time being shall call in one-tenth 
 be called in. of each loan in each year, and shall have it in their power to 
 call in, in each year, one-fourth part of the loans made on real 
 and personal security, giving a notice of not less than sixty 
 days in some of the gazettes of the State ; and all persons who 
 shall fail to make such payment, shall be deprived in future of 
 credit in the said Bank, and judgment shall be immediately 
 entered up on the power of attorney given as above required, 
 and execution shall immediately be issued in the name and on 
 behalf of the Bank, against such person or persons, for the 
 whole amount of the debt which may be due the said Bank. 
 Debts of the ^^^- ^^^^ ^^tal amount of the debts which the said corpora- 
 corporation tion shall at any time owe, whether by bond, bill, note, or con- 
 Umited. tract, shall not exceed twice the amount of its capital, over and 
 
 above the monies then actually deposited in the Bank for safe 
 keeping, unless the contracting of any greater debt shall have 
 been previously authorized by a law of this State ; in case of 
 excess, the Directors under whose administration it shall hap- 
 pen, shall be liable for the same in their private capacities, and 
 an action of debt may in such case be brought against them, or 
 any of them, their or any of their heirs, executors or adminis- 
 trators, in any court of this State having jurisdiction, by any 
 creditor or creditors of the said corporation, and may be pros- 
 ecuted to judgment and execution, any condition, covenant and 
 agreement to the contrary notwithstanding. But this shall 
 not be construed to exempt the said Bank, or the lands, tene- 
 
ACTS OF LEaiSLATURE. 3 
 
 inents, goods or chattels of tlie same, and on their insufficiency, 1812. 
 the State of South Carolina, from being also liable for, and being Ns,,^n^-%^ 
 chargeable with, the said excess. Such of the said Directors 
 who may have been absent when said excess was contracted or 
 created, or who may have dissented from the resolution or act 
 by which the same was contracted or created, may respectively 
 exonerate themselves from being individually liable, by enter- 
 ing, if present, their dissent on the books of the Bank, at the 
 time the debt may be so contracted, and forthwith giving notice 
 of the same to the Comptroller General of the State. 
 
 7th. Immediately after the passing of this Act, the Legisla- President and 
 ture shall proceed to elect, by joint ballot, a President and Directors to be 
 twelve Directors, to manage and conduct the business of the elected, 
 said Bank ; and all future elections of a President and Direc- 
 tors shall be by joint ballot of the Legislature. 
 
 8th. The President shall be elected for one year, and at the Term of ser- 
 expiration of that term shall be re-eligible, and shall be allowed vice and sala- 
 for his services the sum of two thousand five hundred dollars ^ of Presid't, 
 per annum. 
 
 9th. In case of a vacancy occasioned by the death, resignation, Vacancies 
 or removal out of the State, of any Director, a majority of the how filled. 
 Directors shall fill up such vacancy, and the Director so ap- 
 pointed shall hold his ofl&ce during the remainder of the term 
 which the Director so dying, resigning, or removing out of the 
 State, had to serve. 
 
 10th. In case of the death, resignation, or removal out of the 
 State, of the President, (unless such removal be temporary, 
 and by permission of the Board of Directors,) the Directors 
 shall appoint one of their own body as President, who shall 
 serve until the next session of the Legislature, when such va- 
 cancy shall be filled by joint ballot. 
 
 1 1th. No person who is not a citizen of this State, or who is Who are not 
 a Director of any other Bank, or co-partner of any such Direc- eligible as Pre- 
 tor, shall be eligible as President or Director of this Bank. llf^'^l^ °^ ^^" 
 
 12th. Not less than five Directors shall constitute a board p- j^ 
 for the transaction of business, of whom the President shall constitute a^^ 
 always be one, except in case of sickness or necessary absence, board, 
 in which case his place may be supplied by any other Director, 
 whom he, by writing under his hand, shall nominate for the 
 purpose ; and in default of such nomination by the President, 
 or in case of the sickness or necessary absence of the person so 
 appointed, in either event the board of Directors may by ballot 
 appoint a temporary President. 
 
 13th. The Directors shall keep fair and regular entries, in a Books to be 
 book to be provided for the purpose, of their proceedings ; and kept, and pro- 
 on any question where two Directors shall require it, the yeas eeedmgs en- 
 and nays of the Directors voting shall be duly inserted on their ^^^ ' 
 minutes, and those minutes be, at all times, on demand, produ- 
 ced to the Legislature, or any committee thereof who may be 
 legally authorized to require the same. 
 
 14th. Every President and Cashier, before he enters on the President and 
 execution of his duty, shall give bond, with two or more secu- Cashier to^yg 
 rities, to the satisfaction of the Directors, in a sum not less security. 
 
4 ACTS OF LEGISLATURE. 
 
 1812. than twenty thousand dollars, conditioned for his good beha- 
 v^^-v-w vior ; and the Tellers and Clerks shall give security in a sum 
 not less than five thousand, nor more than fifteen thousand 
 dollars. 
 Oath 15th. The President, Directors, Cashier, and all other offi- 
 
 cers and servants, shall take the following oath, on entering on 
 the duties of their respective offices : I, A. B., do solemnly 
 swear, that I will faithfully discharge the trust reposed in me 
 
 as of the Bank of the State of South Carolina. 
 
 Name and 16th. This Bank is hereby incorporated and made a corpo- 
 
 style of the ration and body politic, by the name and style of "The Presi- 
 corporation. (j^nt and Directors of the Bank of the State of South Carolina," 
 and so shall continue until the first day of May, one thousand 
 eight hundred and thirty-five, and by that name shall be, and 
 May hold real are hereby made, able and capable in law, to have, purchase, 
 and personal receive, possess, enjoy and retain, to them and their successors, 
 property, &c. lands, rents, tenements, hereditaments, goods, chattels, and ef- 
 fects, of what kind, nature, or quality soever, and the same to 
 sell, grant, demise, alien, or dispose of ; to sue and be sued, 
 plead and be impleaded, answer and be answered, defend and 
 be defended, in courts of record, or any other place whatsoever; 
 and also to make, have, and use a common seal, and the same 
 to break, alter and renew at their pleasure ; and also to ordain, 
 establish, and put in execution, such bye-laws. Ordinances, and 
 regulations as shall seem necessary and convenient for the go- 
 vernment of the said corporation, not being contrary to law or 
 the constitution thereof ; and generally to do and execute all 
 and singular such acts, matters and things which to them it 
 shall or may appertain jto do ; subject, nevertheless, to the 
 rules, regulations, restrictions, limitations, and provisions pre- 
 scribed in this Act. 
 Notes to be is ^^*^" ^^^ President and Directors shall have power to issue 
 sued. notes, signed by the President and countersigned by the Cash- 
 
 ier, not under the denomination of one dollar, on behalf of the 
 said corporation, for such sums and with such devices as they 
 may deem most expedient and safe ; they shall also be capable 
 of exercising such other powers and authorities as may be ne- 
 cessary for the well-governing and ordering the affairs of the 
 said corporation, and of promoting its interest and its credit ; 
 any law, usage, or custom to the contrary notwithstanding, 
 y. - IL Ami be it further enacted, That the xalne of the ^roTperij 
 
 perty^morS^a-^^^^S^g^^^i^^l^'' this Act shall be ascertained, to the satisfac- 
 ged, how to1t)e tion of the President and Directors, who shall be answerable 
 ascertained, to the State in an action at law, or a suit in equity, wherein the 
 damages incurred by taking insufficient security shall be as- 
 sessed by the jury, or by the decree of the Court, unless the 
 Judges of law or equity, as the case may be, shall be of 
 opinion, and certify, that every necessary precaution was used, 
 and no manner of neglect, on the part of the President and 
 Directors : Provided, nevertheless, that in order to secure the 
 President and Directors more effectually from imposition, any 
 person or persons who shall apply to them for monies on loan, 
 shall produce a just and true account of the property proposed 
 
ACTS OF LEGISLATURE. 5 
 
 to be mortgaged, wliich said property shall be valued on 1812. 
 oath, by commissioners hereinafter to be appointed. ^,^-v-^^ 
 
 III. And he it further enacted^ That all and every person Application 
 or persons who may apply to the President and Directors of j^^"^ money on 
 the Bank of the State of South Carolina for any sum or sums bTmade^ *° 
 upon loan, which is to be secured by any mortgage or mortga- 
 ges, he, she, or they shall submit their titles to the lands intend- 
 ed to be mortgaged, to the inspection of the said Board of Di- 
 rectors, before the obtaining of such loan. 
 
 IV. And be it further enctcted^ That the mortgage shall be Formofmort- 
 taken in the following form : I, A. B., do assign over to the ^^g^- 
 President and Directors of the Bank of the State of South 
 Carolina, my [here describe the estate particularly] which es- 
 tate I declare to be in mortgage for the repayment of , 
 
 with the legal interest of seven per cent, per annum, from the 
 date hereof ; and I do agree that the same may be exposed to 
 sale according to an Act entitled " An Act to establish a 
 Bank in behalf of and for the benefit of the State," if I do 
 not repay the principal and interest at the several and re- 
 spective times on which they shall be lawfully due and paya- 
 ble. Witness my hand and seal, this day of 
 
 one thousand eight hundred and . Which mortgage 
 
 shall be accompanied with a bond for the sum so borrowed, 
 and shall be valid to all intents and purposes. 
 
 V. And be it further enacted^ That all mortgages taken for Mortgage to 
 loans of money under this Act, shall be considered as being be considered 
 recorded from the date thereof, and shall have priority of any ^^ on record 
 mortgages of the same property, not previously recorded in ^^"^ ^^^' 
 the proper offices. 
 
 VI. And be it further enacted^ That the principal Bank Banks at 
 established by this Act shall be fixed and established at Charleston 
 Charleston ; and the President and Directors shall establish f ? Colum- 
 a Bank at Columbia, for the purposes of discount and depos- 
 
 ite, and to appoint the Directors and Officers of such branch, and 
 to fix their salaries and prescribe their duties ; and may allot 
 the said branch any portion of the active capital of the said 
 Bank, as may to them seem advantageous. 
 
 VII. And he it furtJier enacted, That the sums of money Money loaned 
 loaned out on mortgage of real property, shall be apportioned ^^ mortgage 
 among the election districts throughout the State, in proper- [foned^amon 
 tion to the number of representatives of the State Legisla- tJ^e districts, 
 ture in each election district — and whoever the sum allotted 
 
 for any district cannot be loaned on good terms to the inhab- 
 itants of such district, in a reasonable time, it shall then be 
 loaned to the inhabitants of any other district, who may ap- 
 ply for the same. 
 
 VIII. A'tid be itfurtJwr enacted, That the bills obligatory and Bills how as- 
 of credit under the seal of the said corporation, which shall be signable. 
 made to any person or persons, shall be assignable by endorse- 
 ment thereupon, under the hand or hands of such person or 
 persons, and of his, her or their assignee or assignees, and so 
 as absolutely to transfer and vest the property thereof in 
 each and every assignee or assignees successively, and to ena- 
 
ACTS OF LEGISLATURE. 
 
 1812. 
 
 No Director 
 to loan out 
 money at an 
 illegal rate of 
 interest. 
 
 Legislatare to 
 be furnished 
 with a state- 
 ment of the 
 transactions 
 of the Bank. 
 
 ble such assignee or assignees to bring and maintain an action 
 thereupon, in his, her or their own name or names ; and bills 
 or notes which may be issued by order of the said corporation, 
 signed by the President and countersigned by the principal 
 Cashier or Treasurer thereof, promising the payment of mo- 
 ney to any person or persons, his, her or their order, or to 
 bearer, though not under the seal of the said corporation, shall 
 be binding and obligatory upon the same, in the like manner, 
 and with the like force and effect, as upon any private person 
 or persons, if issued by him, her or them, in his, her or their pri- 
 vate or natural capacity or capacities, and shall be assignable 
 and negotiable in like manner as if they were so issued by 
 such private person or persons ; that is to say, those which are 
 or shall be payable to any person or persons, his, her or their 
 order, shall be assignable by indorsement, in like manner and 
 with the like effect as foreign bills of exchange now are ; and 
 those which are or shall be payable to bearer, shall be nego- 
 tiable and assignable by delivery only. 
 
 IX. Aiul he it furt/ier enacted^ That no director, officer, 
 clerk or servant of the said corporation, shall be concerned, 
 either directly or indirectly, in the practice of advancing or 
 loaning out monies at an illegal rate of interest, whether the 
 same be done or effected under the form and color of a pur- 
 chase or exchange of notes, acceptances, due bills, checks on 
 banks, acknowledgments, or in any other way or manner what- 
 soever ; and all and every such director, officer, clerk or ser- 
 vant of this Bank, who shall be concerned as aforesaid in any 
 such practices, shall, in addition to the usual penalties im- 
 posed by law, forfeit and pay for each offence the sum of two 
 thousand dollars, to be recovered by action of debt in any 
 court of record in this State ; one-half to the use of the in- 
 former, the other half to the use of State — and to be levied 
 of the goods and chattels, and houses, lands, tenements, and 
 other hereditaments and real estates of the person or persons 
 so offending, if any he or they shall have ; and on failure of 
 any property to answer the said penalty by a return of nulla 
 bona^ the person or persons so offending shall and may be ta- 
 ken on execution, upon a capias ad satisfaciendum^ and be- 
 ing so taken, shall not be entitled to the benefit of any Act 
 made for the relief of insolvent debtors, until he or they shall 
 have remained and been confined in prison for the term of 
 six months at least. And any such person being convicted 
 by the verdict of a jury of any of the practices aforesaid, 
 whether he be a director or officer or servant of this Bank, 
 shall, on motion of any director, be dismissed from the ser- 
 vice of the said Bank. 
 
 X. And be itfurtlwr enacted^ That the Legislature of the 
 State shall be furnished with a general statement of the trans- 
 actions of the Bank, signed by the Cashier, and counter sign- 
 ed by the President, as often as they may require the same ; 
 and it shall also be the duty of the Comptroller General to 
 inspect such general account in the books of the Bank, as of- 
 ten as he may please— and it shall, and is hereby declared to 
 
ACTS OF LEGISLATURE. 7 
 
 be his duty, faithfully to report all' and every violation of the 1812. 
 fundamental rules of this corporation to the Legislature : Pro- v^^-v^^ 
 vided^ however^ that nothing in this clause shall imply a right 
 of inspecting the account of any private individual or indi- 
 viduals, or any body politic or corporate with the Bank. 
 
 XI. And be it furtJier enacted^ That all the interest which Income of 
 may be paid on the stock due this State by the United States, ^^"^ ^° ^^ 
 and now becoming a part of the capital of this Bank, and all reTemie^of the 
 the dividends on the bank shares of the State Bank, and State. 
 Planters and Mechanics' Bank, which this Bank may hold, 
 
 and all the interest arising from the loans and discounts 
 which may be made by this Bank, after its necessary expenses 
 shall have been paid, shall constitute and be considered as a 
 part of the annual revenue of this State, subject to the pleas- 
 ure of the Legislature. But whatever part of this sum shall 
 at any time remain unexpended by the Legislature, and all 
 the principal which shall be paid on the stock of the United 
 States, and all sums arising from the sale of Bank stock, shall 
 be considered and become a part of the capital stock of this 
 Bank. 
 
 XII. And, he it furtJier enacted^ That the President and Bi- Corporation 
 rectors of the corporation hereby intended to be incorporated, to apply to U. 
 shall apply to the United States for stock of a transferable S. for transfer- 
 nature, in lieu of that which the State now holds, which is not ^^^® stock. 
 
 of a transferable nature. 
 
 XIII. Ami he it/wrtlier enacted^ That the President and Stock in other 
 Directors shall have full power and authority to sell out, at Banks may be 
 their discretion, any share or shares which the State now^°^^- 
 holds, or may hereafter hold, in any bank within this State, or 
 
 to negotiate foreign bills of exchange. 
 
 XIV. Ami be itfurtlter enacted^ That the Treasurer of the six per cent. 
 Lower Division, under the direction of the Comptroller Gen- stock to be is- 
 eral, shall, and is hereby authorized, at the instance of the sued on the 
 President and Directors of the said Bank, to issue six per g^^^^^ ^^ ^^® 
 cent, stock on the credit of this State, and on the faith and 
 
 credit of the stock of the United States, vested in them by 
 this Act, to an amount not exceeding three hundred thousand 
 dollars, redeemable at the pleasure of the State ; and it shall 
 be their duty, from the quarterly and annual payments re- 
 ceived on the aforesaid stock of the United States, to pay the 
 holders of the present State debt, and the holders of the 
 stock to be issued under authority of this Act, the quarterly 
 interest due on the said stock ; and shall, from the aforesaid 
 quarterly and annual receipts on the said stock of the United 
 States, apply such a sum annually towards the redemption of 
 the present outstanding State debt, as shall, on or before the 
 last day of December, one thousand eight hundred and twen- 
 ty-four, finally redeem and extinguish the same ; and the said 
 President and Directors are hereby authorized and empower- 
 ed to sell and dispose of the said three hundred thousand dol- 
 lars of six per cent, stock created under the authority of this 
 Act, from time to time, for the purpose of increasing the capi- 
 
ACTS OF LEGISLATURE. 
 
 1812. 
 
 Three per 
 cent, stock 
 how to be re- 
 deemed, and 
 annual report 
 to be made. 
 
 Bills or notes, 
 where receiva- 
 ble. 
 
 Public monies 
 to be deposit- 
 ed in the 
 Bank. 
 
 Lot in Colum- 
 bia granted to 
 the corpora- 
 tion. 
 
 Securities, 
 how liable. 
 
 Commiss'rs 
 to be appoint- 
 ed in each 
 district. 
 
 tal of the Bank hereby established, provided the same is not 
 at any time sold under par. 
 
 XV. Atid be it furtlier enacted^ That the three per cent, 
 stock of the State now outstanding, shall not be redeemed or 
 paid off at a higher rate than fifty-j&ve per cent ; and the 
 President and Directors shall report annually, on the first 
 day of October, to the Comptroller, to be by him submitted 
 to the Legislature, the amount of the stock issued under the 
 authority of this Act, and of the sum annually redeemed. 
 
 XVI. Ami be it furtlier enacted^ That the bills or notes of the 
 said corporation, originally made payable, or which shall have 
 become payable on demand, in gold or silver coin, shall be re- 
 ceivable at the Treasury of this State, either at Charleston or 
 Columbia, and by all tax collectors and other public officers, 
 in all payments for taxes or other monies due to the State. 
 
 XVII. Aiid he itfurtJier enacted^ That not only the Trea- 
 surers, but also the Tax Collectors of the Parishes of St. Phillip 
 and St. Michael, the Sheriff of Charleston district, the Pro- 
 thonotory of the Court of Common Pleas and General Ses- 
 sions, and the Master in Equity, shall, weekly or monthly, de- 
 posit, for safe keeping, the monies which they may respective- 
 ly receive, in the said Bank only ; and on failure thereof, or 
 on such persons depositing public monies in any other Bank, 
 he or they shall respectively forfeit, for each offence, the sum 
 of one thousand dollars, to be recovered as other penalties by 
 this Act are directed to be recovered ; and all Acts and clauses 
 of Acts repugnant to this Act, be, and the same are hereby, 
 repealed. 
 
 XVIII. And be itfurtJier enacted^ That for the purpose of 
 erecting suitable buildings for the accommodation of the 
 Bank, any lot or square in the town of Columbia belonging 
 to the State, and not heretofore appropriated, which the Presi- 
 dent and Directors may deem suitable for this purpose, is 
 hereby granted to and vested in the said corporation ; and 
 until such building shall be erected, the President and Di- 
 rectors are hereby authorized to use any part of the State 
 House at Columbia, which may not be wanted for, or applied 
 to, the immediate use of the State. 
 
 XIX. And be it furtlier enacted^ That the persons who 
 shall be approved of and joined as securities in the bonds pre- 
 scribed by this' Act, shall severally be held and deemed liable, 
 each one for his equal part of the whole sum in which the 
 bond is given, the said sum to be divided into as many equal 
 parts as there shall be securities in the bond, and no more 
 than such equal part shall be in any court recoverable of or 
 from any one of the said securities, his heirs, executors or ad- 
 ministrators — but nothing in this Act contained shall operate 
 to prevent the securities from having and obtaining, amongst 
 one another, just and equitable aid and contribution, as in oth- 
 er cases of securityship, where there are several securities. 
 
 XX. And be it furtlier enacted, That the President and Di- 
 rectors shall have power to appoint five Commissioners in each 
 election district, to value and appraise the lands which may 
 be offered in mortgage to the Bank; and every valuation of 
 
ACTS OF LEGISLATURE. 9 
 
 land in any election district, shall be certified by three or 1812. 
 more of the said Commissioners ; and the President and Di- ^..^v-^^ 
 rectors shall have the power to fill up all vacancies, or to re- 
 move any such Commissioners at pleasure. 
 
 XXI. Jind be it furtlicr enacted. That the Directors, or a 
 
 majority of them, be, and they are hereby, authorized, should Directors may 
 they at any time deem it proper to borrow on the credit of "^^^P'^ °" ^^® 
 the State, from any of the Banks or individuals, a sum not gj^^g 
 exceeding three hundred thousand dollars, for a period not 
 exceeding, at any one time, ninety days : Provided^ That an 
 interest not exceeding the rate of six per cent, per annum 
 shall be allowed for the same. 
 
 XXII. Arid be it furtlwr enacted^ That in all cases where 
 
 the interest to become due under the provisions of this Act, Mortgaged 
 and the loans to be made in pursuance thereof, and in all ca- property may 
 ses where the principal to be loaned under this Act, or any ^® ^°^^- 
 part thereof, shall be in arrear or due, the Directors of the 
 said Bank shall be, and they are hereby, authorized and em- 
 powered, (if they shall so think fit) to advertize the mort- 
 gaged property for three weeks, in one or more of the ga- 
 zettes in Columbia and Charleston, and in the different dis- 
 tricts where the mortgaged premises lie, and on the first Mon- 
 day in March, in each and every year, shall expose, or cause 
 the same to be exposed to sale by the sherifi", at the Court 
 Houses of the respective districts in which the mortgaged 
 premises may be, and sold to the highest bidder for cash ; and 
 the President and Directors are hereby fully authorized and 
 empowered to make conveyances for the same to the purcha- 
 sers thereof, or to buy the same in, if they shall think fit, for 
 the benefit of the institution. 
 
 From " An Act to make Appropriatioxs for 1812." a. A. 1812. 
 
 p. '25.' 
 YII. And be it enacted by the authority aforesaid, That ^' L. vol. 5 
 the Treasurer of the Lower Division of this State be, and he P* 
 is hereby, authorized and directed, on the application of the Fundsallotted 
 President and Directors of the Bank of the State of South for the Bank 
 Carolina, to deliver over to them, or to any person duly au- of the State of 
 thorized by them, all the certificates of stock of the United ^°' ^^^olina. 
 States in the Treasury, together with all bonds, notes, and 
 other securities due the State, and also the shares of the State 
 and Planters' and Mechanics' Banks ; and he is hereby fur- 
 ther directed, when applied to for that purpose, to draw from 
 the State Bank, under the warrant of the Comptroller Gene- 
 ral, all the public money therein deposited ; and from time to 
 time, and at all times hereafter, to deposit all monies receiv- 
 ed by him on account of the State, in the said Bank. 
 
10 ACTS OF LEGISLATURE. 
 
 1813. AN ACT TO explain and amend an Act entitled "An Act 
 TO establish a Bank on behalf of and for the benefit 
 OF the State." 
 
 Whereas, the Act entitled "An Act to establish a. Bank on 
 behalf of and for the benefit of the State," requires sundry 
 alterations and amendments : 
 
 I. Be it tJiercfore enacted, ^-c. That the Comptroller be, 
 to brpjrrn ^^ and he is hereby, authorized and directed to transfer to the 
 Bank Bank, on account of capital, all sums which may be received 
 
 from the United States on account of the principal of their 
 debt, and all sums which, though received nominally as in- 
 terest, may operate to extinguish the principal of their debt. 
 
 II. And be it further enacted. That the Comptroller be, 
 Other money ^^^ j^^ -^^ hereby, authorized and directed to transfer to the 
 Bank.^" ^^ Bank, on account of capital, on the second day of April, 1814, 
 
 all monies received in the course of the preceding year, and 
 remaining in the Treasury on the second of April, in each 
 and every year. 
 
 III. Aiul be in further etmctcd^ That all officers direct- 
 t^" utmonr"^^ ed by the Act establishing the Bank of the State of South- 
 in said^Bank Carolina, to deposit in the said Bank the public monies which 
 
 they may respectfully receive, shall in like manner deposite 
 in the Bank of the State of South Carolina each and every 
 sum of money which may be received by them in virtue of 
 their office, either in suits actually depending, or in conse- 
 quence of the decrees of the courts of la\f and equity in this 
 State, and until the actual investment of such funds, in cases 
 where the courts of law and equity shall order sums of money 
 to be invested in funds of a particular description. And all 
 such officers are moreover enjoined and directed to deposite 
 each and every sum deposited by them under the provisions 
 of this Act, or the Act to which this is an amendment, in their 
 names as public officers, distinctly from any deposit made by 
 them in their own names and on their own account as private 
 individuals, and to specify the amount of each sum so deposit- 
 ed, and on what account such deposit is made. 
 No other bank I^- And be it furtlwr enacted^ That no Bank or Banks, 
 to issue bills other than the Bank of the State of South Carolina, shall is- 
 under ^5. gug or put into circulation bills of a lower denomination than 
 five dollars ; any Act or clause of any Act, to the contrary not- 
 withstanding. 
 Directors may ^ '^^^^ ^^ it further enacted. That a majority of the mem- 
 be expelled. ' ^^^s present at any regular meeting of the Directors of the Bank 
 of the State of South Carolina, may suspend any Director with a 
 view to his expulsion; and any member may be expelled at a 
 meeting of the Board of Directors, specially convened by the 
 President for that purpose, as soon after such suspension takes 
 place as may be practicable: but such expulsion shall not be 
 made by a majority of less than two-thirds of the whole num- 
 ber of the Directors. 
 President and VI. And be it further emicted, That from and after the 
 electcd*I^nu- P^.^^^^S ^^ ^^^i^ Act, the legislature shall annually elect, by 
 ally. joiiit ballot of both branches, a President and twelve Direc- 
 
ACTS OF LEGISLATURE. H 
 
 tors, whose services shall commence on the first day of Feb- 1813. 
 ruary next ensuing such election, and continue for one year. v«,^-v-w^ 
 
 VII. Ami be it furtJwr enacted, That the Comptroller Comptrollei to 
 General shall be furnished, as often as he may require, not ex- be furnished 
 ceeding once a month, with statements of the amount of the with state- 
 capital stock of the Bank, and of the debts due to the same, "lents of 
 of the monies deposited therein, of the notes in circulation c^°"aTst°ock ^ 
 and of the cash in hand: and he shall, under the injunction of of the Bank, 
 secrecy, have a right to inspect all the accounts and books 
 of the Bank : Provicled, that this right shall not be construed 
 to imply a right of inspecting the account of any private in- 
 dividual or individuals with the Bank. And it shall be the 
 duty of the Comptroller General to make an annual report to 
 the Legislature on the subject of the Bank; and if in his 
 opinion the transactions of the Bank, or any particular dir- 
 cumstance relating thereto, shall require it, he shall apply to 
 the house for a select committee of three members to be ap- 
 pointed, who shall, under a like injunction of secrecy, take into 
 consideration any matters relating to the said Bank, submit- 
 ted to them by the Comptroller General, and report thereon 
 at their discretion to the Legislature. 
 
 YIII. And be it further enacted^ That the Comptroller Comptroller 
 General for the time being shall not be a Director, nor hold not to be a Di- 
 any office of trust or profit in or under any Bank whatsoever, rector. 
 
 IX. And be it fwrtlwr enacted, That the President and 
 Directors of the Bank of the State of South Carolina are \^^I^^^qI. 
 hereby immediately authorized and required to make loans at lu^bia. 
 Columbia, to the citizens of this State, on mortgage, in the 
 same manner, on the same principles, terms, and conditions, 
 and under the same restrictions, as money is loaned from the 
 said Bank in Charleston on mortgage. 
 
 X And be itfurtJier enacted, That the assessors appointed ^ 
 by the President and Directors of the said Bank to value lands j^ Assessors, 
 and other property to be mortgaged to the said Bank, shall 
 receive each for their services, not exceeding one dollar per 
 diem, to be paid by those who may borrow money from said 
 Bank. 
 
 XL And be itfurtJier enacted, That the President, Cashier officers ex- 
 and all other officers of the Bank of the State of South Carolina, empt from mi- 
 and the branch thereof, shall be exempted from the perform- litary duty, 
 ance of ordinary militia duty. 
 
 From "An Act to raise Supplies." &c. , . ^ . 
 
 A. A. 1814. 
 
 XVIII. And be it enacted, hj the authority aforesaid. That Also I8l5,p.7. 
 in all cases where the Legislature shall omit or neglect to fill S. L. vol. 5, 
 up the Board of Directors of the Bank of the State of South P- "732. 
 Carolina, the Directors appointed by such Legislature shall, ^' h ^°'' ^' 
 with the President, fill up such vacancies as shall occur by ^* 
 
12 ACTS OF LEGISLATURE. 
 
 1814. sucli nmission on the part of the Legislature to appoint a full 
 
 K^^^v-^^ BoarS of Directors, in the manner they are now authorised to 
 
 The Board to do, where vacancies occur by death or resignation; and if at 
 
 fill all vacan- ^ny time the Legislature should appoint any number of Direc- 
 
 ^■rci"^ifthe ^^^^ ^^^^ *^^^ seven, the existing Board of Directors may ap- 
 
 Direction. point such number of Directors as, with those appointed by 
 
 the Legislature, shall make up the number of seven, and these 
 
 seven, with the President, shall appoint the remaining five 
 
 directors; and where the Legislature shall wholly omit, at any 
 
 session, to appoint a President or Directors, those then in 
 
 office shall continue until a new appointment shall be made 
 
 by the Legislature. 
 
 AN ACT TO ALTER AND AMEND TirE CHARTER OF THE 
 
 A. A. 1814, Bank of the State of South Carolina, so far as 
 S' ?^' 1 o relates to the issuing of Bills of a less denomina- 
 
 fe. J_i. VOJ . O, /-\ T-\ 
 
 p 33 ' TioN THAN Unk Uollar;and for. other purposes 
 
 THEREIN MENTIONED. 
 
 Authorised to I- JBe it eiiacted^ ^c. That the President and Directors of 
 issue bills of the Bank of the State of South Carolina shall be, and they 
 less denorni- ^^.^ hereby, authorised and required to issue bills of a less de- 
 one dollar. nomination than one dollar, to be signed by a Deputy Cashier, 
 to be appointed as hereinafter mentioned, and to be counter- 
 signed by either of the Directors, or by some person ap- 
 pointed by them for that purpose. 
 
 II. And be it furtlvcr enacted^ That immediately after the 
 ier Ke passing of this Act, the President and Directors shall elect a 
 
 elected. His Deputy Cashier, whose duty it shall be, under their direction, 
 duties, salary, to sign all bills of a less denomination than one dollar, to en- 
 and security, ter the same in the manner and in conformity to the existing 
 rules of the Bank relative to its issues, and to note the muti- 
 lated bills when cancelled by the President and Directors: 
 in addition to which he shall perform all such other services as 
 may be required, and shall receive such compensation as the Pre- 
 sident and Directors may deem proper, and shall, before he 
 enters on the duties of his office, give bond, with security, to 
 be approved by them, in the sum of ten thousand dollars. 
 No other body ^^- And he it enacted^ That no body politic or corporate, 
 politic or cor- within this State, shall be allowed to issue any bills of credit 
 porate to issue in the nature of a circulating medium, or other than such as 
 of credit, answer the purpose of contracts, under the penalty of ten dol- 
 lars for each and every dollar issued: Provided, nevertheless^ 
 that this clause shall not be so construed as to effect the char- 
 tered rights of any banking institution within this State, 
 r-- n 1 ^^I'^tofore incorporated by an x\ct of the Legislature. 
 ofCharSn ^^ ' ^"^ ^^ ^^ enacted, That the City CouncU of Charleston 
 to call in bills ^^^^^ ^^3 ^^^d they are hereby, allowed the time of twelve 
 of credit. months, after the first day of January one thousand eight 
 
ACTS OF LEGISLATURE. ; 
 
 hundred and fifteen, to call in all bills of credit issued by 1816. 
 them in the name of a circulating midium. v^^^^^^ 
 
 AN ACT TO AUTHORIZE THE PrESIDNET AND DIRECTORS OF A.^A. 1816 
 
 THE Bank of the State of South Carolina to call in p. i9. 
 
 THE Paper Medium Loan Office Bonds, and to establish ^- L. vol. 8, 
 
 A Branch in Georgetown. P' 
 
 I. Be it enacted^ S^-c. That the President and Directors of Treasurer of 
 the Bank of the State of South Carolina be, and they are Lower Divi- 
 hereby, authorized and empowered to require the Treasurer of ^^°,J ^^^^^^^^ " 
 the Lower Division to call in and demand payment of the payment of 
 bonds due to the Paper Medium Loan Office, or such part bonds, &c. 
 thereof as they, the said President and Directors, shall think 
 
 proper ; and the said Treasurer is hereby authorised and di- 
 rected, whenever so required, to give at least three months' 
 notice, in one or more of the newspapers of this State, of the 
 part or portion required to be paid; and in case of non-com- 
 pliance with the requisitions in such notice contained, the 
 Treasurer aforesaid is hereby required to sell, or cause to be 
 sold, the land mortgaged for the payment of such bonds as 
 shall not be paid according to the provision of the Act in such 
 case made and provided: Provided nevertheless^ the said Pre- 
 sident and Directors do not require the Treasurer to call in 
 and demand payment of more than one-third, annually, of the 
 amount of any bond so due to the Paper Medium Loan Office. 
 
 II. And be it further enacted^ That the President and Di- Branch of the 
 rectors of the Bank of the State of South Carolina shall, Bank to be es- 
 whenever they may deem it expedient, establish a branch of Qg^r^^^g!^ ^' 
 the said Bank at Georgetown, with like powers and authori- ^ 
 
 ties, and in like manner, as the Branch now established at 
 Columbia. 
 
 From "An Act to make Appropriations for 1816." a A 1816 
 
 p. 59. 
 
 III. Be it enacted by the authority aforesaid. That all pay- S. L.vol. 6, 
 ments hereafter to be made by the Treasurers of the Upper ^j. 
 and Lower Divisions, shall be by drafts or checks upon the pay by checks 
 Bank of the State of South Carolina or its branches, and in on Bank, 
 no other way ; and such drafts or checks, as far as relates to 
 the town treasury, shall be countersigned by the Comptroller 
 General for the time being, or his agent or clerk, duly autho- 
 rised by him for that purpose. 
 
14 ACTS OF LEGISLATURE. 
 
 1816. IV. Aiid. be itfurtlier cnmtcd, That no payment of money 
 
 .^^.v^.^^ shall be made by any public officer of this State, to either of 
 
 All public of- the Treasurers, in any other manner than by a check or draft 
 
 ficers to pay ^pon the Bank of the State of South Carolina, or its branches, 
 
 ^y ^B^^k^ °" which may be nearest to the treasury, so as to make it indis- 
 
 ^ ^^ ^" * pensably necessary for such public officer to deposit his money 
 
 in such Bank or its branches, previous to his making such 
 
 payment.* 
 
 A. A. 1816, AN ACT TO PROHIBIT THE ISSUING OF BiLLS OR NEGO- 
 
 p. 43. ' TiABLE Notes UNDER the denomination of One Dol- 
 
 S. L. vol. 6, L^p. ^j^rp pQjj^ OTHER PURPOSES THEREIN MENTIONED. 
 
 p.34. ' 
 
 Pe alt on in- ^ ^^ ^^ enacted., ^'C. That from and after the first day of 
 
 di\?duals or May next, all Bills or promissory notes, payable to order or 
 
 companies for bearer, which shall be issued by any individual or company 
 
 passing bills ^^ j^Q^jy corporate, the Bank of the State of South Carolina 
 
 under $1. excepted, within this State, for any sum or sums under one 
 
 dollar, shall be void; and any person or persons who shall 
 
 pass, or attempt to pass, or receive, any such bill in payment, 
 
 shall be liable to be indicted therefor, and on conviction 
 
 thereof shall be fined not exceeding ten dollars. 
 
 II. And he it further enacted^ That from and after the 
 Ditto under first day of January, in the year of our Lord one thousand 
 ^^- eight hundred and eighteen, any person or persons who shall, 
 
 within this State, pass, or attempt to pass, or receive in pay- 
 ment, any bills or bills purporting to be bill or bills of any 
 Bank or body corporate, the bills of the Bank of the State of 
 South Carolina excepted, of a lower amount or denomination 
 than five dollars, shall be liable to be indicted therefor, and on 
 conviction thereof shall be fined not exceeding the sum of fifty 
 dollars. 
 
 III. And he it furtlier enacted, That the Comptroller Ge- 
 ComptroUer to neral of this State shall, forthwith, cause this Act to be pub- 
 pubhsh this lished four times in one of the gazettes of each district of this 
 
 ^^' State where a gazette is published. 
 
 A. A 1817 
 
 p. 29. ' AN ACT TO AMEND THE SEVERAL AcTS INCORPORATING THE 
 
 S. L. vol. 8, Bank of the State of South Carolina. 
 
 p. 36. 
 
 izedtomake ^- -^<^ ^^ enacted., ^'C. That the President, Directors and 
 loans at 12 company of any incorporated Bank in this State, shall be, and 
 
 months, &c. 
 
 * These two sections were re-enacted in 1817 and 1818, in like words, 
 and are therefore omitted from those years. 
 
ACTS OF LEGISLATUKE. 15 
 
 they are hereby authorized, to make loans, on negotiable paper, 1816. 
 for any period not exceeding twelve months, and also to open v^^-v-x^ 
 an account and give a credit to any other Bank or Banks in any 
 of the sister States. 
 
 II. And be itfiirtJier enacted^ That the said corporations 
 shall have power to vest, from time to time, such part of their May vest cap- 
 capital, not exceeding, (with the amount of stock any such ital in U. S. or 
 Bank may now hold) one-half of the amount originally sub- '^^^^^ stock, 
 scribed to such Bank, in the stock of this State or of the Uni- 
 ted States, as they in their judgment and discretion shall see 
 fit and proper ; and that all parts of the Acts of incorporation 
 heretofore granted to them, repugnant to this Act and its pro- 
 visions, be repealed ; Provided, that this Act, or anything here- 
 in contained, shall not be construed so as to prevent the Le- 
 gislature of this State from prohibiting the purchase of such 
 stock, whenever it may be deemed expedient. 
 
 AN ACT TO ALTER AND AMEND AN AcT ENTITLED " An AcT ^_/\^ jgj-y 
 TO ESTABLISH A BaNK ON BEHALF OF AND FOR THE BENEFIT p. 29. 
 
 OF THE State." S. L. vol. 8, 
 
 p. 36. 
 
 I. Be it enacted^ by the Honorable the Senate and House 
 
 of Representatives, now met and sitting in General Assembly, Duties of the 
 and by the authority of the same, That it shall be the duty of Clerks of 
 the Prothonotary or Clerks of the Courts of Common Pleas Courts Mas- 
 and General Sessions, the Master and Commissioners in Equi- J^j^ ^^^^^1^°^^ 
 ty, and the Sheriffs of Charleston, Georgetown and Richland Equity, and 
 Districts, on the first Monday in every month, to furnish or Sheriffs, 
 cause to be furnished to the Board of Directors of the Bank 
 of the State, or the Directors of the Branch where either of 
 the aforesaid oflicers shall exercise his office, a statement, in 
 writing, of all the monies which they have received in their 
 official capacity, with the names of the persons on whose ac- 
 count it has been received, for the preceding month ; and on 
 failure thereof, he or they shall, respectively, for each offence, 
 forfeit the sum of one thousand dollars, to be recovered as 
 other penalties are directed to be recovered by the Act to 
 establish the Bank of the State. 
 
 II. Ami be itfurtlier enacted^ That the Comptroller for the 
 
 time being shall be, and he is hereby, authorized, whenever he Penalty, 
 may think proper, to have access to, for examination, all the 
 books and accounts of the Bank of the State, excepting the 
 personal ledger, or book in which the deposits of individuals 
 are entered. 
 
16 ACTS OF LEGISLATURE. 
 
 1817. From "An Act to increase the Salaries of tiie Gover- 
 »..^-v-^^ nor of this State, and other Officers therein men- 
 
 A. a. 1817, p. tioned." 
 41. 
 
 gg L- vol., p. jjj ^^^^ ^^ it further enacted, That the President of the 
 President's Bank of the State of South Carolina shall receive the sum of 
 salary. three thousand dollars, in lieu of the salary now allowed that 
 
 officer by law. 
 
 A. A. 1818, p. AN ACT TO ALTER AND AMEND THE ChaRTER OF THE BaNK 
 
 24. OF THE State of South Carolina. 
 
 S. L. vol. 8. p. 
 37 
 
 President to I- -^^ *^ enacted, by the Honorable the Senate and House 
 
 direct the At- of Representatives, now met and sitting in General Assembly, 
 
 torney Gene- and by the authority of the same, That it shall be the duty of 
 
 ^^M^^P^o^e^'^the President of the mother Bank in Charleston, and of the 
 
 officers. ^"^ Presidents of its Branches, to direct the Attorney General or 
 
 Solicitors to proceed according to law against any officer or 
 
 officers failing, refusing, or neglecting to make the statements 
 
 and deposits which he or they are by law bound and ordered 
 
 to make. 
 
 A. A. 1818, p. AN ACT to alter and amend the Charter of the Bank 
 
 25. OF the State of South Carolina. 
 
 S. L. vol. 8, p. 
 37. 
 
 Branches au- I- ^^ ^^ enxicted, by the Honorable the Senate and House 
 thorized to is- of Representatives, now met and sitting in General Assembly, 
 ^e bills under and by the authority of the same. That from and after the 
 ^' passing of this Act, it shall and may be lawful for the Presi- 
 
 dents and Cashiers respectively, of the Branches of the Bank 
 of the State of South Carolina, to sign all bills of credit, pay- 
 able on demand, of a lower denomination than five dollars, 
 under such regulations as the President and Directors of the 
 Bank of the State of South Carolina may direct. And the 
 President and Cashier of the said Bank of the State of South 
 Carolina are hereby exempted from signing the same ; any law 
 to the contrary notwithstanding. 
 
 A. A. 1818, p. AN ACT to authorize the President and Directors of 
 S. L. vol. 8 p '^^^ Bank of the State of South Carolina to estab- 
 38. ' LiSH A Branch of the said Bank at Camden. 
 
 established at ^- ^^ ^^ enacted^ by the Honorable the Senate and House 
 Camden. of RepresentatiTes, now met and sitting in General Assembly, 
 
ACTS OF LEGISLATURE. 17 
 
 and by the authority of the same, That the President and 1818. 
 Directors of the Bank of the State of South Carolina shall, s<'>^-^-^ 
 whenever they may deem it expedient, establish a Branch of 
 the said Bank at Camden, with the like powers and authority, 
 and in like manner, as the Branch now established at Co- 
 lumbia. 
 
 AN ACT TO EXCUSE THE OFFICERS OP THE SEVERAL BrAN- A. A. 1818, p. 
 CHES OF THE BaNK OF THE StATE OF SoUTH CAROLINA |'7- 
 FROM THE PERFORMANCE OF ORDINARY MiLITIA DuTY, AND no ' ' P' 
 
 SERVING ON Juries. 
 
 I. Be it enacted, by the Honorable the Senate and House oncers of the 
 of Representatives, now met and sitting in G-eneral Assembly, branches e^;- 
 and by the authority of the same, That the Presidents and fused from 
 Cashiers of the several Branches of the Bank of the State of f"^^"^^ ^"^ 
 South Carolina, and Clerks employed in the same, shall be,-'"'^ " ^' 
 and they are hereby declared to be, exempted from the per- 
 formance of ordinary militia duty and from serving on juries, 
 
 From "An Act to make Appropriations for the year a a 1819 n 
 1819." 9.' * '^' 
 
 S. L. vol. 6, p. 
 
 III. A?id be itfurt/ier enacted, That all payments hereafter 1?^ ^"^ ^^^• 
 to be made by the Treasurers of the Upper and Lower Divis- be^made by ^ 
 ions of this State, shall be by drafts or checks upon the Bank checks on the 
 of the State of South Carolina, or its branches, and in no Banks, 
 other way. 
 
 IV. A?id be it further enacted, That jio payment of money 
 shall be made by any public officer in this State, in any other 
 manner than by a check or draft on the Bank of the State of 
 South Carolina or its Branches nearest to the Treasury, so as 
 to make it necessary for such public officer to deposite his 
 money in said Bank or its Branches, previous to his making 
 such payment. 
 
 XIII. Atid be itfurtlier enacted, That so much of an Act, Repeal of the 
 entitled " An Act to explain and amend an Act entitled an clause autho- 
 Act to establish a Bank on behalf of and for the benefit of "^ing Comp. 
 the State," passed on the eighteenth day of December, in the J^"""^' ^^,^^^J^^ 
 year of our Lord one thousand eight hundred and thirteen, asmainme ^^^^^ 
 makes it the duty of the Comptroller General to transfer to funds, 
 the Bank, on account of capital, on the second day of April, 
 in each and every year, all monies received through the course 
 of the preceding year, and then remaining in the treasury, be, 
 and the same is hereby, repealed. 
 3 
 
IQ ACTS OF LEGISLATURE. 
 
 1820. From "An Act to raise Supplies for the year 1820." 
 
 A. A. 1820, p. XVI. Whereas, it appears by the report of the Commis- 
 12. sioners appointed to prefer the claim of this State against the 
 ^- L- ^^^' ^'P- United States, that the same has not yet been passed ; and it 
 further appears from the same report, that a considerable time 
 may yet elapse before a final adjustment thereof : And where- 
 as, the Legislature, in their estimate of ways and means for 
 the last year, placed amongst the probable receipts of the 
 Treasury, in aid of the ordinary revenue of the State, a con- 
 siderable part of the said claim, which has occasioned a deficit 
 of one hundred and ninety-eight thousand eight hundred and 
 seventy-eight dollars, two cents, which, with the probable de- 
 ficit of the ensuing year, will make an aggregate against the 
 Treasury, in favor of the Bank of the State of South Caro- 
 lina, of , which the interest and prosperity of 
 
 the Bank may require to be reimbursed : Be it therefore enac- 
 ted, by the authority aforesaid. That the President and Direc- 
 tors of the said Bank shall be, and they are hereby, autho- 
 rized and empowered to sell for ready money, after due 
 Six per cent, notice given in some of the gazettes of the City of Charles- 
 stock to be ton, eight hundred thousand dollars of the stock of the 
 sold. State, bearing six per cent., at such times, and in such sums, 
 
 and at such places, as they may think advisable : Provided, 
 the same shall not at any time be sold under par. 
 Certificates of XVII. And be it further enacted, That the Treasurer of 
 said stock to the Lower Division, under the direction of the Comptroller 
 be made out. (General, shall, from time to time, as he may be called upon by 
 the Bank of the State of South Carolina, make out certificates 
 of stock bearing an interest of six per cent., payable quarter 
 yearly, in the names of such persons, and for such sums, as the 
 President and Directors of the said Bank, by resolution of the 
 Board thereof, may require, not exceeding in the whole the 
 aforementioned sum of eight hundred thousand dollars. 
 Names of pur- XVIII. And he it further enacted, That the Treasurer of 
 chasers to be the Lower Division, under the direction of the Comptroller 
 entered in General, shall open a set of books, and shall enter therein, in 
 alphabetical order, the names of all the persons who may be- 
 come purchasers of the stock hereby created and directed to 
 be issued, and shall conduct the business in the same manner, 
 and with the same checks, as has been heretofore done in rela- 
 tion to the former stock of the State. 
 Form of the XIX. And he it enacted. That the following shall be the 
 certificate of form of the certificates of stock hereby authorized to be is- 
 stock. sued : 
 
 State of South Carolina, Loan Office. 
 
 No. -, Charleston. 
 
 Be it known, that there is due from this State unto 
 
 -, or assigns, the sum of , bearing interest 
 
 of six per cent, per annum, from the day of • 
 
 1821, payable quarter yearly, and not subject to re- 
 
ACTS OF LEGISLATURE. 19 
 
 demption before the day of , 1840, 1820. 
 
 created by virtue of an Act to raise supplies for the year 1820j 
 which debt is transferable only by the proprietor or propri^i-J* 
 tors, or their attorneys, in the books of the Treasury in 
 
 Charleston. , Treasurer. 
 
 •i 
 
 XX. Ami be it enacted., That any certificate of stock issued To be counter- 
 under the authority of this Act, shall be countersigned by the signed by the 
 Comptroller General for the time being. Comptroller. 
 
 XXI. Ami be it enacted., That the stock to be issued under 
 
 the authority of this Act, shall not be redeemable by the State fg'^g^^^^g" 
 before the first day of January, 1 840. And the faith of the State, ^® ^^"^^ ^' 
 and the capital of the Bank of the State of South Carolina, 
 are hereby solemnly pledged for the redemption thereof. 
 
 XXII. And be it enacted, That the Comptroller do, and he Comptroller to 
 is hereby required to, report to the Legislature, at their next ^^P^^^ ^® 
 session, the amount of stock which may be issued under this g^ock issued 
 Act. 
 
 XXIII. And be it enacted, That it shall be the duty of the g^^^j^ ^ ^^ 
 President and Directors of the said Bank, and they are hereby purchased by 
 required, whenever the stock hereby authorized to be issued the Bank, 
 shall be upon the market at par, to purchase annually of the 
 
 said stock, a sum not exceeding fifty thousand dollars ; and the 
 future annual profits of the said Bank is hereby declared to 
 be a fund for that purpose. 
 
 I 
 
 Fkom "An Act making Appropriations for the year . . -o^. 
 
 1821." A. A. 1821, p. 
 
 XIY. And be itfurtJier enacted, That so much of the Act S. L. vol. 6, p. 
 entitled "An Act to make appropriations for the year one 177. 
 thousand eight hundred and nineteen, and for other purposes ^^^^ o^ ^ for- 
 therein mentioned," as explains and amends "An Act to estab- repealed 
 lish a Bank in behalf of and for the benefit of the State," shall 
 be, and the same is hereby, repealed ; and that the Comptroller 
 General shall transfer to the Bank of the State, on account of Monies in the 
 capital, on the second day of April, in each and every year, all treasury to be 
 monies received through the course of the preceding year, and transferred to 
 then remaining in the treasury unappropriated. ^ ^ ' 
 
 AN ACT TO PROVIDE A Sinking Fund for the redemp-^ ^ 1822 
 
 TION OF THE SiX PER CeNT StOCK OF THIS StATE. 27. * ' 
 
 S. L. vol. 6, p. 
 Whereas, it is necessary to create a permanent fund for the ^^^• 
 redemption of the Six per cent. Stock of the State. 
 
20 ACTS OF LEGISLATURE. 
 
 1821. 1. Be it therefore enacted by the Honorable the Senate and 
 
 ^^^-v-w House of Representatives, now met and sitting in General As- 
 Books to be sembly, and by the authority of the same, That from and im- 
 opened by mediately after the passing of this Act, it shall be the duty of 
 in^^the stotlof *^^^ President and Directors of the Bank of the State of South 
 the fund. Carolina to cause to be opened, in the books of the said Bank, 
 
 an account in which they shall debit themselves with the pro- 
 fits of the Bank for the year ending the first day of October,' 
 in the year of our Lord one thousand eight hundred and twen- 
 ty-two, and with all the future profits of the said Bank, as the 
 same shall hereafter be annually declared ; which said fund, 
 with its annual accumulations, shall be considered solemnly 
 pledged and set apart for the payment of the quarterly inter- 
 est on the said six per cent, stock, and the final redemption 
 thereof And it shall be the duty of the President and Direc- 
 tors of the said Bank annually to report to both branches of 
 the Legislature the exact state of that fund. 
 Checks drawn H- -^^'^'^ ^^ ^^ enucted by the authority aforesaid, That all 
 by Treasurer, checks drawn by the Treasurer of the Lower Division, on ac- 
 count of the interest on the six per cent, stock of this State, shall 
 specify that it is for such interest, and shall be charged to the 
 said fund. 
 
 III. And be it enacted by the authority aforesaid, That the 
 be^Tsed^" ° fund hereby created shall not be considered a part of the capi- 
 tal of the said Bank, but shall be banked upon and employ- 
 ed like the capital of the said Bank. And it shall be the 
 duty of the President and Directors of the said Bank, at any 
 time when the stock hereby intended to be provided for and 
 redeemed shall be at par in the market, to redeem as much 
 thereof as the fund hereby created shall at such time enable 
 them to do. 
 
 No Bank to 
 
 AN ACT TO PROTECT THE BaNKS AND THE HoLDERS OF 
 
 A. A. 1822, p. Bills and Notes from Frauds. 
 
 S. L. vol. 6, p. 
 
 181. I. Be it enacted by the Senate and House of Representa- 
 
 tives, now met and sitting in General Assembly, and by the 
 authority of the same. That from and immediately after the 
 passing of this Act, no Bank now, or hereafter to be, incorpo- 
 pay bUircut ^^*^^ ^^ ^^^^ State, shall be compelled by law to pay any of 
 or divided. their bills which have been, or may be hereafter, cut in half or 
 divided, unless both halves of said bill or bills is presented, or 
 unless the person producing one-half, and demanding payment 
 as of the whole, shall first give bond and sufficient security to 
 the said Bank, as an indemnity against any loss or damage 
 that may be sustained by the said Bank, by paying the whole 
 of said half bills to said person. 
 Protests of "'••'■• "^^ it furtJier enacted by the authority aforesaid. That 
 
 Notary receiv- whenever a notary public who may have made protest for non- 
 ed in evidence payment of any inland bill or promissory note, shall be dead, 
 
ACTS OF LEGISLATURE. 21 
 
 or shall reside out of the district in which said bill or note is 1822. 
 sued, his protest of said bill or note shall be received as suffi- >..^-v-^^ 
 cient evidence of notice in any action by any person whatso- 
 ever, against any of the parties to such bill or note. 
 
 Prom "An Act to raise supplies for the Year 1822."^ ^ jg22 p 
 
 4. 
 IV. And he it further enacted^ That the Attorney General, S. L. vol. 6, 
 and each of the Solicitors of this State, respectively, shall, on PP- 196 and 
 or before the first days of January and August in each and^^' ^^ ^^_ 
 every year, make to the President and Directors of the Bank torney Gene- 
 of the State of South Carolina, or to the President and Direc- ral and Solici- 
 tors of its branches, (as the case may require) a full and particu- tors. 
 lar return of the business or suits placed in his hands by any 
 of the officers of the said Bank or its branches ; and in default 
 of such return, such defaulter shall forfeit the sum of five hun- 
 dred dollars ; and the Comptroller General is hereby direct- 
 ed to withhold such defaulter's salary till such return be 
 made. 
 
 XXII. Whereas, the fund created by the Act to raise sup- piy^ per cent, 
 plies for the year 1820, for the payment of the interest on and stock of this 
 final extinguishment of the stock thereby authorized to be is- State to be 
 sued, is more than sufficient to answer that purpose : Be it eii- ^*^^^- 
 
 acted by tlve authority af&resaid^ That the President and Di- 
 rectors of the Bank of the State shall be, and they are hereby, 
 authorized and empowered to sell for ready money, after due 
 notice given in some of the gazettes of the city of Charleston, 
 a sum not exceeding two hundred thousand dollars of stock of 
 this State, bearing an interest of five per cent., at such times, 
 and in such sums, and at such places, as they may think advi- 
 sable : Provided^ the same shall not at any time be sold under 
 par. 
 
 XXIII. And be it further enacted^ That the Treasurer of Certificates of 
 the Lower Division, under the direction of the Comptroller Ge- stock to be 
 neral, shall, from time to time, as he may be called on by the "^ade out. 
 Bank of the State, make out certificates of stock, bearing an 
 
 interest of five per cent., payable quarter yearly, in the names 
 of such persons and for such sums as the President and Direc- 
 tors of said Bank, by resolution of the Board thereof, may re- 
 quire, not exceeding in the whole the aforementioned sum of 
 two hundred thousand dollars ; and it shall be the duty of the 
 Treasurer of the Lower Division to conduct the business in 
 relation to the stock hereby directed to be issued, in the same 
 manner as he now does the stock issued under the Act of eigh- 
 teen hundred and twenty. 
 
 XXIV. And be it enacted by the authority aforesaid, That Form of certi- 
 the following shall be the form of the certificates authorized to ficate. 
 
 be issued : 
 
22 
 
 ACTS OF LEGISLATURE. 
 
 1822. State of South Carolina. 
 
 «*rv-^^ No. — , Charleston. 
 
 Be it known, that there is due from the State unto 
 
 or assigns, the sum of , bearing interest of five 
 
 per cent, per annum, payable quarter yearly, and not subject 
 
 to redemption before the day of , one 
 
 thousand eight hundred and forty-two, created by virtue of an 
 Act to raise supplies for the year 1 822, which debt is transfer- 
 able only by the proprietor or proprietors, or their attorneys, 
 in the books of the Treasury in Charleston. 
 
 , Treasurer. 
 
 Comptroller 
 General to 
 countersign 
 certificates. 
 This stock not 
 redeemable 
 until 1842. 
 
 Comptroller 
 General to re- 
 port amount 
 of stock sold. 
 
 XXV. And he itfnrtJier eiiactecl. That every certificate of 
 stock issued under this Act, shall be countersigned by the 
 Comptroller General for the time being. 
 
 XX YI. And be itfurtlier e?iacted, That the stock to be is- 
 sued under the authority of this Act, shall not be redeemable 
 by the State before the first day of January, one thousand 
 eight hundred and forty-two ; and the faith of the State, the 
 capital of the Bank of the State of South Carolina, and the an- 
 nual dividends of the said Bank, are hereby solemnly pledged 
 for the payment of the interest and the final redemption of the 
 said debts. 
 
 XXVII. And he it further enacted^ That the Comptroller 
 General do, and he is hereby required to, report to the Legis- 
 lature at their next session, the amount of stock which may be 
 issued under this Act. 
 
 A. A. 1822 p. Fi^oM "An Act to renew the Charter of the State 
 44. ' Bank and the Bank of South Carolina, and for other 
 
 S. L. vol. 8,p. PURPOSES therein mentioned." 
 39. 
 
 ^ ^ . IV. A7id he itfurtlier enacted by the authority aforesaid, 
 sioners*of Dor- ^^^^ immediately after the passing of this Act, the Commis- 
 chester Free sioners of the Dorchester Free School shall be permitted to 
 School to pay pay over to the President and JDirectors of the Bank of the 
 over all funds, gtate of South Carolina, all the funds of the said school ; and 
 the profits arising from the same shall be paid over, by the 
 President and Directors of the said Bank, to the Commission- 
 ers of the Free Schools for the parish of St. George's, Dorches- 
 ter, to be applied by them in such manner as is directed by 
 the laws now in force in this State for the regulation and gov- 
 ernment of free schools. \^Not acted on.'] 
 
 V. And be it further enacted by the authority aforesaid, 
 That when information shall be given to the Presidents of the 
 Banks hereby incorporated, the Attorney General, or either of 
 the Solicitors of this State, that any person has been apprehend- 
 ed, and is to be tried in any district in this State, for counter- 
 feiting any of the notes of the said Banks, or for passing such 
 
 Attorney Ge- 
 neral's duty. 
 
ACTS OF LEGISLATURE. 23 
 
 forged and counterfeited note, knowing it to be false, or for 1 823. 
 stealing any note of the said Bank, it shall be the duty of the ^-^^v'-^^ 
 Cashier of the said Bank to attend in person, and to give evi- Banks to fur- 
 dence on such trial, or to furnish some competent witness to nish compe- 
 give evidence on such trial, on pain of the forfeiture of one thou- ^"^f^^ ™^^ss ^^ 
 sand dollars, for the use of the State, to be recovered by in- [erfeiters.°"'^' 
 dictment. 
 
 VI. And be it further enacted^ That the President and ^^^^^.^^ ^f jj^e 
 Directors of the Bank of the State of South Carolina shall, Bank to be es- 
 whenever they may deem it expedient, establish a branch of tablished at 
 the said Bank in the town of Cheraw, with like powers and Cheraw. 
 authority, and in like manner, as the branches now established 
 at Columbia and Camden. [^Never acted on.'] 
 
 From "An Act to raise supplies for the year. 1823." a. A. 1823, p. 
 
 9.' ' 
 XXY. And be it further enacted^ That hereafter it shall not S. L. vol. 6, p. 
 be required of the Comptroller General to countersign thCp"., - 
 transfers of the five and six per cent stock of this State ; but ^^^ ^Q_^\i to 
 the same shall be done by the President of the Bank of the countersign 
 State of South Carolina. State stocks. 
 
 AN ACT TO AMEND THE ChARTER OF THE BaNK OF THE A. A. 1824. p. 
 
 State of South Carolina. 69. 
 
 S. L. vol. 8, p. 
 
 I. Be it enacted by the Senate and House of Representa- ^ Committee 
 tives, now met and sitting in General Assembly, and by the of inspection 
 authority of the same. That there shall be appointed, at the to be appoint- 
 first session of every new Legislature, by a joint resolution of ^^ J^y the Le- 
 both branches of the Legislature, a committee of inspection for ^^^ pri'^ncioal 
 the principal Bank of the State of South Carolina, in Charles- and Branches, 
 ton, and a committee for each of the said branches of the said 
 
 Bank. The said committees shall respectively consist of five 
 persons each. 
 
 II. And be it furtlwr enacted by the authority aforesaid. Comptroller 
 That it shall be the duty of the several committees, with the General to aid 
 Comptroller General, to examine minutely into the aifairs and committee, 
 situation of the principal Bank and its branches, for which 
 
 they are respectively appointed, and to report to the Legisla- 
 ture, at their next session, the result thereof, and particularly 
 all mismanagement in the affairs of the said Bank, or its 
 branches, if any such have occurred. 
 
 III. And be itfurtJier enacted by the authority aforesaid. Committees to 
 That in case the Comptroller General should not attend at proceed in ab- 
 any of the investigations authorized by this Act, the said com- sen«e of Comp. 
 mittees, or a majority of each, shall be, and they are hereby, au- Gfeneral. 
 
24 ACTS OF LEGISLATURE. 
 
 1824. thorized to make sucli investigation in the absence of the 
 v..^.v-^^ Comptroller General. 
 
 IV. And be itfurtJier enacted by the authority aforesaid. 
 Repeal of con- That all clauses, or parts of clauses, in any Act of the General 
 fiicting clauses ^sseiji|)ly of this State, which may prohibit the said Commit- 
 tees and the Comptroller General from investigating fully the 
 books, accounts, and other documents of the said Bank or its 
 branches, be, and the same are hereby, repealed. 
 
 A. A. 1824 p. From "An Act to raise Supplies for the year 1824." 
 6.' ' ' ' 
 
 S. L. vol. 6, p XII. And be it further en/icted by the authority aforesaid, 
 ^^' - That the President and Directors of the Bank of the State of 
 
 ceiu ^stock^^o South Carolina shall be, and they are hereby, authorized and 
 be sold. empowered to sell, for ready money, after due notice given in 
 
 some of the gazettes of the city of Charleston, a sum not ex- 
 ceeding two hundred and fifty thousand dollars of stock of this 
 State, bearing an interest of five per cent., at such times, and 
 in such sums, and at such places, as they may think "advisa- 
 ble : Provided^ the same shall not at any time be sold under 
 par. 
 Treasurer to XIII. And be itfurtJicr enacted by the authority aforesaid, 
 make out cer- That the Treasurer of the Lower Division, under the direction 
 tificates. of the Comptroller General, shall, from time to time, as he may 
 
 be called on by the Bank of the State, make out certificates of 
 stock, bearing an interest of five per cent., payable quarter 
 yearly, in the names of such persons and for such sums as the 
 President and Directors of said Bank, by resolution of the 
 Board thereof, may require, not exceeding in the whole the 
 above mentioned sum of two hundred and fifty thousand dol- 
 lars. And it shall be the duty of the Treasurer of the Lower 
 Division to conduct the business in relation to the stock herC' 
 by directed to be issued, in the same manner as he now does 
 the stock issued under the Acts of eighteen hundred and twen' 
 ty, and eighteen hundred and twenty-two. 
 
 XIV. And be itfurtJier enacted by the authority aforesaid, 
 That the stock hereby ordered to be issued shall not be re^ 
 Redeemable in deemable by the State before the year one thousand eight hun- 
 1845. dred and forty-five ; and that the faith of the State, and the 
 
 capital and dividends of the Bank of the State, are hereby so- 
 lemnly pledged for the payment of the interest and final re- 
 demption of said debt ; and that the form of the certificates au- 
 thorized to be issued, shall be substantially the same as those 
 heretofore issued. 
 
k 
 
 ACTS OF LEGISLATURE. 25 
 
 From "An Act to raise Supplies for the year 1826." 1826. 
 
 XIII. And he itfurtlier enacted.^ That the President and A. A, 1826, p. 
 Directors of the Bank of the State of South Carolina be, and g j. , „ 
 they are hereby, authorized and empowered to sell for ready 295* ' '^' 
 money, after due notice given in some of the gazettes of the More five per 
 city of Charleston, a sum not exceeding three hundred thou- cent, stock to 
 sand dollars, if so much be necessary, of stock of this State, ^300 000 
 bearing an interest of five per cent., redeemable in the year „ ' , . . 
 one thousand eight hundred and forty-six, at such times, in ^g^g ^ 
 such sums, and at such places, as they may think advisable : 
 Provided the same shall not at any time be sold under par. 
 
 XIY. Arul he it further emicted^ That so much of the char- Repeal of ma- 
 ter of the Bank of the State as fixes the maximum value of the ximum value 
 six per cent, and three per cent, stock of this State be repeal- of stock, with 
 ed ; and that the President and Directors of the Bank of the ^^^"{J^^^ powers 
 State of South Carolina be authorized, at their own discretion, ^^^ Directors 
 to purchase the said stock, at such times, and in such quanti- 
 ties, and upon such terms, as may appear most expedient to 
 them, and most beneficial to the interests of the State. 
 
 From "An Act to make Appropriations for the year^ ^ jggg 
 
 1826." 15. ' ' 
 
 S. L. vol. 6, 
 XV. Be it further enacted by the authority aforesaid, That PP- ^^l-^- 
 the Treasurer of the Lower Division be, and he is hereby, di- ^PPJ^P"^^^^'^ 
 rected to issue ten thousand dollars, six per cent, stock, inter- d^o^jph'^^ ^^' 
 est payable semi-annually, redeemable in 1850; which stock 
 shall be in the name of any person or persons whom Mrs. 
 Eandolph, the daughter of the late Thomas Jefferson, may ap- 
 point, to be held in trust for her sole and separate use and be- 
 nefit, and to be subject to her disposition by any writing under 
 her hand. 
 
 AN ACT TO admit and Incorporate Private Stockhold-^ ^ 132g 
 ERS in the Bank of the State of South Carolina.* 21, ' 
 
 S. L. vol. 8, p. 
 I. Be it enacted by the Senate and House of Representa- ^^• 
 tives of the State of South Carolina, and by the authority ofpj.j^^^g stock- 
 the same, That individuals, citizens of this State, or of the ho'ders admit- 
 United States, shall be permitted to become stockholders in ted. 
 the Bank of the State of South Carolina, and partners in the 
 same, and shall be entitled to share in all the privileges an(j 
 
 Repeajed in 1827— p. 33. 
 4 
 
26 
 
 ACTS OF LEGISLATUKE. 
 
 1826. 
 
 Funds of the 
 Bank to be re- 
 ceived as 
 stock. 
 
 Commission- 
 ers to be ap- 
 pointed. 
 
 Capital may 
 be increased. 
 
 Individuals 
 admitted. 
 
 Losses to be 
 divided. 
 
 Books to be 
 opened. 
 
 emoluments granted to the said Bank by its charter, and by 
 the several laws passed heretofore to explain and amend the' 
 said charter, upon the following conditions, which conditions 
 shall be considered as the fundamental articles of agreement 
 between the respective parties, and shall continue of force until 
 the time hereinafter specified, and shall not be altered but 
 with the mutual assent and concurrence of the State and of 
 the private stockholders. 
 
 1st. The Bank of the State of South Carolina, with its 
 debts, funds, claims and possessions, real and personal, of 
 whatsoever nature and description, as they shall exist on the 
 thirty-first day of March next, shall be received as a portion, 
 on the part of the State, of the said joint stock company or 
 Bank. And if, upon a fair estimate of debts and credits by 
 the commissioners hereinafter appointed, the balance in favor 
 of the State shall not amount to one million two hundred thou- 
 sand dollars, the State shall have the power of increasing it to 
 that sum, whenever it shall think proper. 
 
 2d. The Comptroller Greneral, the President of the Bank, 
 and William Stephen Smith, shall be commissioners on the 
 part of the State to adjust, with a committee appointed by the 
 stockholders, the capital stock of the Bank on the said^ thirty- 
 first day of March next. 
 
 3d. The State shall, at any time hereafter, when it may 
 think proper, have the power of increasing its share of the ca* 
 pital to two millions of dollars, but shall not at any time be 
 responsible beyond the amount of capital vested. 
 
 4th. Individuals shall be permitted to subscribe to the capi- 
 tal stock of the Bank, any sums to an amount not exceeding 
 one million six hundred thousand dollars, in shares of one hun^ 
 dred dollars each. 
 
 5th. And be it furtlier enacted^ That the said private stock- 
 holders shall be liable for the debts, losses, and liabilities of 
 said Bank, in proportion to the capital owned by them. 
 
 6th. Books shall be opened on the first day of February 
 next, at Charleston, Georgetown, Cheraw, Camden, Columbia, 
 Hamburg, and Beaufort. In Charleston, by John Fraser, 
 Charles M. Furman, George Chisholm, James Ross, and Ker 
 Boyce ; at Georgetown, by W. W. Trapier, Moses Fort, and 
 Peter Cuttino ; at Cheraw, by John Taylor, Jun., Jamics Coit, 
 and Augustin Averil ; at Camden, by Thomas Salmond, Jas. 
 S. Murray, and James K. Douglass ; at Columbia, by David 
 Ewart, J. A. Crawford, William Law, and James A. Black ; 
 at Hamburg, by B. M. Rogers, Samuel L. Watt, and Paul Fitz- 
 simons ; at Beaufort, by Robert Means, William Bold, and 
 Henry Stewart. And at the time of subscribing, ten per cent, 
 shall be paid on each share subscribed ; fifty per cent, shall b6 
 paid on each share on the first day of April ; twenty per cent, 
 on the first day of October next, and the remaining twenty per 
 cent on the first day of January, one thousand eight hundred 
 and twenty-eight ; all the said instalments payable in gold or 
 silver coin, in bills of the Bank of the United States, or of the 
 specie paying Banks of this State : JPrc/vided, that all shares 
 
 I 
 
ACTS OF LEGISLATURE. 27 
 
 on which the payment due shall not be punctually made on the 1826. 
 days above mentioned, together with whatever sums may have s.^^^v-'^^ 
 been paid thereon, shall be forfeited to the said Bank ; and no 
 new business shall be done, founded on this increase of capital, 
 until the two first payments have been made. 
 
 7th. If one million six hundred thousand dollars shall not 
 be subscribed when the books are first opened, the <iii"ectors^^'^^^^^^|{^^^ 
 shall have the power of opening them again, at such times and 
 places as they may deem expedient, until such amount be sub- 
 scribed — giving always sixty days' previous notice. And if 
 more than one million six hundred thousand dollars be subscri- 
 bed, the surplus shall be deducted from each subscriber who 
 shall subscribe more than six shares, in average and propor^ 
 tion : Provided^ tievertheless^ that the proportion of no subscri-' 
 ber shall be reduced below six shares : Provided^ also, that 
 this Act shall not go into operation unless stock to the amount 
 of one million of dollars shall be subscribed, and the two first 
 instalments paid. 
 
 8th. As soon as the number and names of the subscribers j-.. 
 shall be known, and the proportions of stock adjusted, the ^g elected, 
 stockholders shall be called upon to elect, after twenty days' 
 notice, one director for every two hundred thousand dollars 
 subscribed ; and on the first Monday in each succeeding Feb- 
 ruary, the private stockholders shall elect their directors, who 
 shall serve for one year from such first Monday in February 
 in each year ; and after the first day of January, one thousand 
 eight hundred and twenty-eight, the directors on the part of 
 the State, and on the part of the stockholders, shall be appor- 
 tioned according to the stock actually held by the respective 
 parties, so that the number of directors shall not be less than 
 eleven nor more than fifteen. 
 
 9th. The directors shall have the power of appointing all their officers to be 
 officers, and of making all rules and by-laws necessary for the elected, 
 management and government of the institution, in the same 
 manner, and with the same powers, as are now granted to the 
 Bank of the State of South Carolina. 
 
 10th. The funds now in the Bank, on account of the Sink- 
 ing Fund, shall be vested in the stock of this State, or of the ^^J"j|^J"^|^^'J54 
 United States, or in Bank stock of this or some other Bank of gj^te stock 
 this State, or of the United States, as the Comptroller Gene- 
 ral and the President of the Bank may deem most advanta- 
 geous, until it can be employed in the purchase or redemptiou 
 of some part of the public debt of this State. 
 
 II. And be it further enacted by the authority aforesaid, 
 That the dividends from the stock owned by the State shall ^ends how 
 be applied to the payment of the interest on the three per ct., ^e applied 
 five per cent., and six per cent, stock of the State ; and that 
 any surplus from such di\idends, after paying the said inter- 
 est, shall be invested as a sinking fund, under the direction of 
 
 the Comptroller General, to pay off the principal of the debt 
 of the State. 
 
 III. And be itfurtiter enacted^ As soon as the sum of one Branch Bank§ 
 million of dollars shall have been subscribed by individuals, to t)e estab^ 
 and sixty per cent, of the same shall have been paid into the listed, 
 
 to 
 
28 ACTS OF LEGISLATURE. 
 
 1826. Bank, branches of the said Bank may be established in the 
 v^^-v-^^ towns of Hamburg, Cheraw, and Beaufort, with a suitable ap- 
 portionment of capital ; and that no branch now authorized 
 by law shall be discontinued, unless by sanction of the Legis- 
 lature. 
 
 ly. And he it further enacted by the authority aforesaid, 
 Individuals to y^^X the individuals w^ho shall became stockholders, in con- 
 mterKh^'^°' junction with the State, in the Bank of the State of South Ca- 
 rolina, by virtue of this Act, shall possess and enjoy all the 
 corporate rights and privileges granted by the first section of 
 this Act, until the first day of January, one thousand eight 
 hundred and forty-eight : Provided^ nevertlieless^ that from and 
 after the first day of December, one thousand eight hundred 
 and forty, the Legislature of this State shall have the right to 
 withdraw from the said Bank all or any portion of the capital 
 stock owned by the State. 
 
 V. Afid be it further enacted by the authority aforesaid, 
 Majiner ofvo- rpj^^^ ^j^^ number of votes to which the stockholders shall be 
 ''' entitled, in voting for directors, shall be according to the num- 
 
 ber of shares, he, she, or they, respectively, shall hold, in the 
 proportion following, that is to say : for one share, and not 
 more than two shares, one vote ; for every two shares above 
 two, and not exceeding ten, one vote ; for every four shares 
 above ten, and not exceeding thirty, one vote ; for every six 
 shares above thirty, and not exceeding sixty, one vote ; for 
 every eight shares above sixty and not exceeding one hundred, 
 one vote ; and for every ten shares above one hundred, one 
 vote ; but no person, partnership, or body politic shall be enti- 
 tled to a greater number than thirty votes. And after the 
 first election, no share or shares shall confer a right of voting, 
 which shall not have been holden three calendar months pre- 
 vious to the day of election ; and stockholders actually resi- 
 dent within the LTnited States, and none other, may vote in 
 elections by proxy. 
 Who eligible ^^- ^'^^^ ^^ it furtlwr enacted by the authority aforesaid, 
 as directors. That none but a stockholder, a resident citizen of the United 
 States, shall be appointed by the private stockholders as a di- 
 rector. 
 New branches ^^ Be it enacted by the authority aforesaid. That the 
 may be es- President and Directors for the time being shall have power 
 tablished. and authority to locate branches of this Bank in such parts of 
 this State as they may deem proper and advisable. And if the 
 said direction shall refuse, upon the reasonable request of a re- 
 spectable portion of the citizens of this State, to establish a 
 branch of the same, at any place or places not before mention- 
 ed, the Legislature shall have power and authority to pass a 
 law requiring the said Bank to establish such branch or branch- 
 es, as in their wisdom they may deem proper. 
 Legislature to ^IH- Be it further enacted by the authority aforesaid. That 
 have the con- ^^ Legislature shall have the power of examining, at any and 
 cerns of the all times, into the concerns of the Bank hereby established ; 
 Bank examin-and it shall be the duty of the officers of the said Bank and its 
 ® ■ branches to facilitate such examination : Provided, nevertke- 
 
I 
 
 ACTS OF LEaiSLATURE. 29 
 
 less, tliere shall be no examination or scrutiny of individual 1826. 
 accounts, saving and excepting the accounts of ofl&cers of the v^i*-v-w> 
 same. 
 
 IX. Be itfurtlwr CTiacied by^he authority aforesaid, That -^^ otherBank 
 the charters of all private banks in this State, which may here- to be charter- 
 after expire, shall not be renewed ; nor shall the State grant ed. 
 
 any charter, creating a new Bank, prior to the first day of 
 January, one thousand eight hundred and forty-eight ; but 
 upon the request of the Bank hereby established, it shall be 
 in the power of the Legislature to extend the capital of this 
 Bank. 
 
 X. And be itfurtlwr enacted, That the private stockholders Bonus to be 
 shall pay to the State, as a bonus for the privileges here grant- paid. 
 
 ed, at the rate of twenty thousand dollars upon every million 
 of stock subscribed and held by them. 
 
 XI. And be it further enacted, That during the existence of g^Q^^iji^Qi^gj.^ 
 the charter hereby created, the said corporation shall not be not liable to 
 liable to taxation ; nor shall individuals be liable to taxation on taxation, 
 account of their interest in the institution. 
 
 XII. And be it further enacted, That the President and -g-jj^ where ta 
 Directors, in issuing bills or notes of the said Bank, drawn in be payable. 
 favor of any person or persons, or his or their order, or bearer, 
 
 shall have power to make the same payable either at the prin- 
 cipal Bank, or at any one of its branches, as they may deem 
 most advisable. Provided, that all such bills or notes shall, 
 at all times, be taken and received in payment of any debt or 
 demand due to the said Bank, either in Charleston or at any 
 of its branches. 
 
 XIII. Be it further enacted. That after the first day of Ja- ^ 
 nuary, eighteen hundred and twenty-eight, the Bank shall be ^ount to be 
 authorized to open an interest account with the State, charg- opened, 
 ing it with interest on all advances made to the public treasu- 
 ry, and crediting it by interest on all surplus deposits made by 
 
 the public treasury. 
 
 From "An Act to make Appropriations for the year * « lao^ „ 
 1827." A. A 1827, p. 
 
 S. L. vol. 6, p. 
 II. And be it farther enacted, That the President and Di- -^^O. 
 rectors of the Bank of the State be, and they are hereby, di- ^^^^Jg"^ Qg_ 
 rected to grant indulgence, free of interest, to General Thomas ^eral Sumter. 
 Sumter, upon his debt to the Bank, during his life, taking 
 such steps as may appear expedient to them to secure the .ulti- 
 mate payment of the debt. ^ 
 
30 ACTS OF LEGISLATURE. 
 
 1827. AN ACT to admit and incorporate private Stockhold- 
 v^^N'-^-^ ers tn the Bank of the State of South Carolina.* 
 A. A. 1827, p. 
 
 ^- 1. Be it ejuicted, by tlie Seffate and House of Representa- 
 
 53 • ^' P- tives of the State of South Carolina, and by the authority of 
 Private stock- the same, That individuals or corporate bodies shall be per- 
 holders to be niitted to become stockholders in the Bank of the State of 
 admitted. South Carolina, and partners in the same, and shall be entitled 
 to share in all the privileges and emoluments granted to the 
 said Bank by its charter, and by the several laws passed here- 
 tofore to explain and amend the said charter, upon the follow- 
 ing conditions, which conditions shall be considered as the fun- 
 damental articles of agreement between the respective parties, 
 and shall continue of force until the time hereinafter specified, 
 and shall not be altered but with the mutual assent and con- 
 currence of the State and of the private stockholders. 
 Funds of the 1- The Bank of the State of South Carolina, with its funds 
 present Bank and debts, claims and possessions, real and personal, of what- 
 to be received soever nature and description, as they shall exist on the thir- 
 as stock. |.-g^|^ ^^y Q^ April next, shall be received as a portion, on the 
 
 part of the State, of the said joint stock company or bank ] 
 and if, upon a fair estimate of debts and credits, by the com- 
 missioners hereinafter appointed, the balance in favor of the 
 State shall not amount to one million two hundred thousand 
 dollars, the State shall have the power of increasing it to that 
 sum, whenever it shall think proper. 
 
 2. The Comptroller General of the State, the President of 
 SsT'oTnted. ^he.^ank of the State of South Carolina, and William S. 
 ^^ Smith, shall be commissioners on the part of the State to ad- 
 
 just, with a committee appointed by the stockholders, the ca- 
 pital stock of the Bank, on the said thirtieth day of April 
 next. 
 Camtal mav ^" ^^^ State shall, at any time hereafter, when it may think 
 be mcreased. pi*oper, have the right of increasing its share of the capital 
 stock of the Bank to two millions of dollars, but shall not at 
 any time be responsible beyond the amount of capital vested. 
 _ . . 4. Individuals or corporate bodies shall be permitted to sub- 
 
 admUted^ ^ scribe to the capital stock of the Bank, any sums to an amount 
 not exceeding one million six hundred thousand dollars, in 
 shares' of one hundred dollars each. 
 Losses to be ^" "^^^ private stockholders shall be liable for the debts, 
 divided. ' losses, and liabilities of said Bank, in proportion to the capital 
 owned by them ; but no stockholder shall be responsible be- 
 yond the amount of capital actually vested and owned by him. 
 6. The private stockholders shall have the right of extending 
 vate^stockmay *^^ amount of stock held by private stockholders to three mil- 
 be extended. lions,of dollars, whenever they shall deem it advantageous to 
 th£ institution ; and such addition shall be made, either by 
 opening books for new subscriptions, or by a public sale of new 
 stock, as the President and Directors of the Bank for the time 
 being shall think proper. , 
 
 * Repealed in 1828— p. 34. 
 
ACTS OF LEGISLATURE. 31 
 
 7. The number of Directors to be appointed shall be appor- 1827. 
 tioned between the State and the private stockholders, in pro- v.,^^^-^^ 
 portion to the stock they shall respectively hold, and shall be Directors to 
 in the ratio of one director for every sum of two hundred thou-^® appointed, 
 sand dollars actually held, until the joint capital of the Bank 
 
 shall amount to three millions six hundred thousand dollars ] 
 after that time there shall be one director for each sum of two 
 hundred and fifty thousand dollars. 
 
 8. Books shall be opened on the fourth Monday in February t> u . u 
 next, at Charleston, Georgetown, Cheraw, Camden, Columbia, opened. 
 Hamburg, and Bfeaufort. In Charleston, by John Frazer, 
 Charles M. Furman, George Chisholm, James Ross, and Ker 
 
 Boyce ; in Georgetown, by W. W. T rapier, Moses Fort, Peter 
 Cuttino; in Cheraw, by John Taylor, Jr., Samuel W. Gilles- 
 pie, and William Chapman ; in Camden, by Thomas Salmond, 
 James S. Murray, and John J). Winn ; in Columbia, by David 
 Ewart, J. A. Crawford, William Law, and James A. Black ; in 
 Hamburg, by B. M. Rogers, Samuel L. Watts, and Paul Fitz- 
 simons ; in Beaufort, by Robert Means, William Bold,, and 
 Henry Stewart ; and they shall be kept open for three or four 
 days, if necessary. And at the time of subscribing, ten per ct. 
 shall be paid on each share subscribed, thirty per cent, shall be 
 paid on each snare on the first day of May, twenty per cent, 
 on the first day of October next, and the remaining forty 
 per cent, on the first day of January, one thousand eight hun- 
 dred and twenty-nine ; all the said instalments payable in gold 
 or silver coin, in bills of the Bank of the United States, or of 
 the specie-paying Banks of this State : Provided^ that all shares 
 on which the payment due shall not be punctually made on the 
 days above mentioned, together with whatever sums may have 
 been paid thereon, shall be forfeited to the said Bank ; and no 
 new business shall be done, founded on this increase of capital, 
 until the two first payments have been made. 
 
 9. If the sum of one million six hundred thousand dollars „ , 
 
 shall not be subscribed when the books are first opened, the a^dn Sed! 
 directors shall have the power of opening them again, at such 
 times and places as they may deem expedient, until such amount 
 be subscribed, giving always sixty days' previous notice ; and 
 if more than one million six hundred thousand dollars be sub- 
 scribed, the surplus shall be deducted from each subscriber 
 who shall subscribe more than six shares, in average and 
 proportion : Provided^ nevertheless^ that the proportion of 
 no subscriber shall be reduced below six shares, unless the 
 same be necessary to reduce the sum subscribed within the lim- 
 its fixed in the charter. 
 
 10. As soon as the number and names of the subscribers 
 shall be known, and the proportions of stock adjusted, the stock- Directors to be 
 holders shall be called upon to elect, after twenty days' notice, gtockholJ 
 one director for every two hundred thousand dollars subscrib- 
 ed : and on the first Monday in each succeeding February, the 
 private stockholders shall elect their directors, who shall serve 
 for one year, from such first Monday in February in each year ; 
 and after the first of January, one thousand eight hundred and • 
 
32 ACTS OF LEGISLATURE. 
 
 1827. twenty-nine, the directors on the part of the State, and on the 
 
 v,^-v-^^ part of the stockholders, shall be apportioned according to the 
 
 stock actually held by the respective parties, according to the 
 
 provisions of the seventh article. 
 
 Mayapp'jint ^^- "^^^^ Directors shall have the power of appointing all 
 
 Officers. their officers, and of making all rules and by-laws necessary 
 
 for the management and government of the institution. 
 Sinkino- fund H- ^^^^^ ^^ it fitrther enacted^ That the funds now in the 
 may be'vest ed Bank, on account of the Sinking Fund, shall be vested either in 
 in stock. the new stock created by this Act, or in the funded debt of this 
 
 State, or of the United States, or in Bank stock of some other 
 Bank of this State, or of the United States, as the Comptroller 
 General and the President of the Bank may deem most advan- 
 tageous, until it can be employed in the purchase or redemp- 
 tion of some part of the public debt of this State. 
 State divi- "'•-'■-'■• ^^^^ ^^ it fv/rthcr emwted^ That the dividends from the 
 
 dends, how to stock owned by the State shall be applied to the payment of 
 be applied. the interest on the three per cent., five per cent., and six per 
 cent, stock of the State ; and that any surplus from such divi- 
 dends, after paying the said interest, shall be invested as a 
 sinking fund, under the direction of the Comptroller General, 
 to pay off the principal of the debt of the State. 
 Other branch- ^^ ^^^'^' ^^ it f^irtlier enacted^ That as soon as the sum of 
 es to be estab- one million of dollars shall have ]3een subscribed and paid into 
 lished, the Bank, branches of the said Bank may be established in the 
 
 towns of Hamburg, Cheraw, and Beaufort, with a suitable ap- 
 portionment of capital ; and that no branch now authorized by 
 law shall be discontinued, unless by sanction of the Legis- 
 lature. 
 Duration of V. And he it further enacted^ That the individuals or corpo- 
 individual pri- rate bodies who shall become stockholders, in conjunction with 
 vileges. the State, in the Bank of the State of South Carolina, by vir- 
 
 tue of this Act, shall possess and enjoy all the corporate rights 
 and privileges granted by this Act, until the first day of Jan- 
 uary, one thousand eight hundred and fifty : Provided^ 7iever- 
 tlwkss, that from and after the first day of December, one 
 thousand eight hundred and forty, the Legislature of the State 
 shall have the right to sell out all or any portion of the stock 
 held by them in this Bank. 
 Manner of vo- ^I- . And be itfiirtlwr enacted^ That the number of votes to 
 ting. which stockholders shall be entitled, in voting for directors, 
 
 shall be according to the number of shares he, she, or they, re- 
 spectively, shall hold, in the proportion following, that is to say: 
 for one share, and not more than two shares, one vote ; for eve- 
 ry two shares above two, and not exceeding ten, one vote ; for 
 every four shares above ten, and not exceeding thirty, one 
 vote ; for every six shares above thirty, and not exceeding six- 
 ty, one vote ; for every eight shares above sixty, and not ex- 
 ceeding one hundred, one vote ; and for every ten shares above 
 one hundred, one vote ; but no person, partnership, or body 
 politic, shall be entitled to a greater number than thirty votes. 
 And after the first election, no share or shares shall confer a 
 
I 
 
 ACTS OF LEGMSLATURE. 33 
 
 right of voting, which shall not have been holden three calen- 1827. 
 dar months previous to the day of election ; and stockholders v.,^%/-^^ 
 actually resident within the United States, and none other, 
 may vote in elections by proxy. 
 
 VII. And be itfurt/ier enacted, That none but a stockhold- -^^^ ^^ ^^ 
 er, a resident citizen of the United States, shall be appointed directors. 
 
 by the stockholders as a director. 
 
 VIII. And be itfurt/ier enacted, That the President and President and 
 Directors for the time being shall have power and authority to Directors may 
 locate branches of this Bank in such parts of this State as they locate Branch- 
 may deem proper and advisable. ^^' 
 
 IX. And be itfartlicr enacted, That the Legislature shall t o-' i t 
 have the power of examining, at any and all times, into the con- shall have the 
 cerns of the Bank hereby established ; and it shall be the duty Bank examin- 
 of the officers of the Bank to facilitate such examination, ed. 
 Provided, nevertheless, there shall be no examination or scruti- 
 ny of individual accounts, saving and excepting the accounts of 
 
 officers of the same. 
 
 X. And be itfurtlier enacted, That the private stockholders Bo^^g ^^ ^j^ 
 shall pay to the State, as a bonus for the privileges hereby paid, 
 granted, at the rate of twenty thousand dollars upon every mil- 
 lion of stock subscribed and held by them, which sum shall be 
 
 added to the capital held by the State. 
 
 XI. And be it further enacted. That during the existence 
 
 of the charter hereby created, the said corporation shall not be Exempt from 
 liable to taxation on account of their interest in the institu- ^^^" 
 tion. 
 
 XII. And be it furtJier enacted, That the President and Di- 
 rectors, in issuing bills or notes of the said Bank, drawn in favor ^ ^ he e 
 of any person or persons, or his or their order, or bearer, shall payable, 
 have power to make the same payable either at the principal 
 
 Bank, or at any one of its branches, as they may deem most 
 advisable. Provided nevertheless, that all such bills or notes 
 shall, at all times, be taken and received in payment of any debt 
 or demand due to the said Bank, either at Charleston or at any 
 of its branches. 
 
 XIII. And be itfurtlier enacted. That after the first day of interest ac- 
 January, eighteen hundred and twenty-nine, the Bank shall be count to be 
 authorized to open an interest account with the State, charging opened. 
 
 it with interest on all advances made to the public treasury, and 
 crediting it by interest on all surplus deposites made by the 
 public treasury. 
 
 XIV. And be it further enacted, That an Act passed in Repealing 
 December, one thousand eight hundred and twenty-six, enti- clause. 
 tied "An Act to admit and Incorporate private Stockholders 
 
 in the Bank of the State of South-Carolina," be, and the same 
 is hereby, repealed. 
 
34 ACTS OF LEGISLATURE. 
 
 1828. AN ACT to repeal an Act entitled "An Act to admit 
 v.^»v^^ AND Incorporate private Stockholders in the Bank of 
 
 A. A. 1828j THE State of South Carolina." * 
 
 p. 21. 
 
 S. K vol. 8j J ^g ^^ ermcted^ by tlie Senate and House of Representa- 
 tives, now met and sitting in General Assembly, and by the 
 authority of the same, That an Act of Assembly, passed on 
 the nineteenth day of December, one thousand eight hundred 
 and twenty-seven, entitled " An Act to admit and Incorpo- 
 rate private Stockholders in the Bank of the State of South 
 Carolina," be, and the same is hereby, repealed. 
 
 A A 1830 "^^ ^^^ ^^ authorize the President and Directors of the 
 
 p. 29.* ' Bank of the State of South Carolina to establish a 
 
 S. L. Vol. 6. Branch of the said Bank at Hamburg. 
 p. 420. 
 
 I. Be it enacted^ by the Senate and House of Representa- 
 Branch to be tives. That the President and Directors of the Bank of the 
 established at g^^^^ ^^ South Carolina shall, whenever they may deem it 
 ^' expedient, establish a branch of the said Bank, or an Agen- 
 cy, at the town of Hamburg, with like powers and authori- 
 ty, and in like manner, as the branch now established at Co- 
 lumbia. 
 
 A A 1831 -^'^ ACT CONCERNING THE BaNK OF THE STATE OF SoUTH 
 
 p. 49. ' Carolina. 
 
 s'. L." vol. 8, 
 
 P- ^^- I. Be it enacted^ by the Honorable the Senate and House 
 
 Members of of Representatives, now met and sitting in General Assem- 
 the Boards to hly, and by the authority of the same. That from and im- 
 when^df se ^^^i^^^V ^^^er the passing of this Act, all Directors who 
 may be chosen by the Legislature to serve in the parent 
 Bank, shall take their seats and become members of the said 
 Board, as soon after the rising of the Legislature as they 
 shall be notified of their appointment ; and that it shall be 
 the duty of the President to give the information by the ear- 
 liest mode of conveyance. 
 
 II. Be it further enacted^ That the following oath shall, in 
 Oath to be ta- ^^^^^^5 ^^ administered to each and every member of all the 
 ken by Presi- different boards of directors, and to each President of the 
 dent and Di- said boards, before they take their seats. 
 fiS^d"^^^''^ . "^' A- ^ ^^ solemnly swear (or affirm) that I will not, 
 either directly or indirectly, reveal or disclose any transac- 
 tion or circumstance which may occur at the board or else- 
 where, in any discharge of my official duties, either while I 
 
ACTS OP LEGISLATURE. 35 
 
 am a member of this Board, or after I shall cease to be such, 1831. 
 which can in any degree affect the credit of an individual, or s-^-v-^^ 
 the interest of the Bank, except it be to the Legislature, or 
 any examining committee appointed by them ; and that I will 
 not retain in my possession any paper, document, or state- 
 ment, or copy thereof, which may relate to the concerns of the 
 Bank, longer than may be necessary to discharge any duty 
 which may be imposed on me, (rendering the possession of 
 the said paper, document or statement necessary,) and that 
 while in my possession, they shall be kept safely and secretly, 
 and when the duty is performed, returned to the proper offi- 
 cer. So help me God."* 
 
 III. Be itfurtlier enacted^ That the following oath be ad- 
 ministered to all the other officers of the Bank and its Branch- 
 es now in office, or who may hereafter be elected. 
 
 " I, A. B. solemnly swear (or affirm) that I will not, either 
 directly or indirectly, disclose or reveal any of the transactions Oath for offi- 
 of the Bank, or any fact connected with them, intended cers. 
 by the Directors to be kept secret, while I remain in office, nor 
 after I may leave the same, except to the Legislature, or to any 
 examining committee thereof, or in a court of justice as a 
 witness."* 
 
 IV. Be it further enacted^ That it shall be the duty of the 
 Presidents of the branches of the Bank to keep regular min-^^^^^f of the 
 utes of the proceedings of their respective boards, entering t^g^Bant ^ 
 in the books kept for that purpose, not only the weekly dis- 
 counts, but all matters of importance which may be transac- 
 ted, particularly all matters which may relate to any unu- 
 sual or extraordinary loan, or money paid by the board, and 
 
 of all property bought in or sold by them, and of all resolu- 
 tions passed by the parent Bank, regulating their course of 
 conduct. 
 
 V. Be itfurtlier enacted^ That it shall be the duty of the 
 President to lay before the Legislature, at every sitting, the ^^^o^^ts of 
 account of every salaried officer belonging to the parent ^^^^' 
 Bank, or its branches, showing the amount which they owe, 
 
 and how long the same has been due. 
 
 YI. Be itfurtlier enacted^ That the office of Deputy Cash- 
 ier be, and the same is hereby, abolished ; and that in future, ^^^^e of De- 
 all change bills which may be issued, be signed by the Presi- P^JJ- ^^^'^^^'^ 
 dent, or such other officer as he may direct to perform the 
 duty. 
 
 VII. Beit further enacted^ That the President andDi-.,,. . , 
 rectors of the Bank be, and they are hereby, authoroized to officer 
 appoint, and at their pleasure to retain in office, one officer of 
 
 the Bank to whom such duties shall be assigned as they may 
 think proper, and who shall receive the same salary as is now 
 paid to the Deputy Cashier. 
 
 VIII. And he itfurtlier enacted^ That the stock books now Transfer of 
 kept at the Treasury Office, be transferred to the Bank, and stock books, 
 there kept by the officer aforesaid, so to be appointed. 
 
 See additional Oath, p, 38. 
 
36 
 
 ACTS OF LEGISLATURE. 
 
 1831. 
 
 Officers for- 
 bidden to pur- 
 chase stock of 
 the State, 
 
 May sell the 
 
 State Bank 
 
 stock. 
 
 May purchase 
 
 stock in other 
 
 Banks. 
 
 May establish 
 a Branch at 
 Cheraw. 
 
 May appoint 
 an agent at 
 New York. 
 
 Repealing 
 clause, &c. 
 
 IX. And he itfiirtJier enacted^ That the President of the 
 parent Bank, the Presidents of the branches, the agents'of the 
 Bank, and other salaried officers of the Bank and its branch- 
 es, are hereby forbidden and prohibited from buying, either 
 directly or indirectly, for themselves or any others, (if they are 
 to have any interest therein) any stock of the State of South 
 Carolina. 
 
 X. Be it further enacted, That the President and Direct- 
 ors of the parent Bank be, and they are hereby, authorized to 
 sell the stock which they now hold of the State Bank, on the 
 most advantageous terms, and that they be authorized to buy 
 any other stock which they may think safe, to any amount not 
 exceeding that appropriated to the sinking fund. 
 
 XI. Be it further enacted, That the President and Direct- 
 ors of the Bank be, and they are hereby, authorized to estab- 
 lish a branch or agency at Cheraw, whenever, in their judg- 
 ment, it shall be deemed advantageous to the interests of the 
 said Bank. 
 
 XII. Whereas, it is deemed expedient, in aid of the ope- 
 rations of the Bank, and for the purpose of accommodating 
 the great and growing mercantile interest of the upper coun- 
 try, to vest a fund in the ' city of New York, at the disposal 
 of the Bank, to furnish merchants who deal with the Bank, 
 drafts on that place ; and icJiereas, it is doubted whether such 
 an operation would come strictly within the power delegated 
 by the Act of incorporation. 
 
 Be it therefore enacted, That the President and Directors 
 of the Bank are hereby authorized and empowered to place 
 in any Bank of the city of New York, or in the hands of any 
 safe agent for that purpose, any such sum as they n^ay be 
 able so to dispose of, without injury to the home operation of 
 the Bank, or if it should be thought more advisable and more 
 safe, to open an account for that purpose with any Bank or 
 safe agent. 
 
 XIII. Be it further enacted, That all Acts or parts of Acts 
 in anywise repugnant to this Act, be, and the same are here- 
 by, repealed. 
 
 A. A. 1831, 
 p. 12. 
 
 S. L. vol. 6, 
 p. 454. 
 
 Restoring to 
 the Bank 
 S5, 180, lost 
 by the State 
 depositing 
 
 From 
 
 An Act to make Appropriations for the year 
 1831." 
 
 XIX. And be it further enacted, That the Treasurer of the 
 
 Upper Division be authorized, and he is hereby required, to 
 
 pass to the credit of the Bank of this State, the sum of five 
 
 thousand one hundred and eishty dollars, which was lost by 
 
 crririank*''* Cheraw Bank. 
 
 bills, received 
 for taxes. 
 
ACTS OF LEGISLxVTURE. 87 
 
 From " An Act to raise Supplies for the year 1832." 1833. 
 
 XVIII. And be it further enacted, by tlie authority afore- A. A. 1832, 
 said, That the President and Directors of the Bank of the P- ^• 
 State of South Carolina shall be, and they are hereby, au- p" ^^j^^ ' ' 
 thorized and empowered to sell for ready money, after due j^^^.^ '^^^ 
 notice in some of the gazettes of the city of Charleston, a cent, stock to 
 sum not exceeding three hundred thousand dollars of the stock be sold. 
 
 of this State, bearing an interest of five per cent, at such times 
 and in such sums and at such places as they may think ad- 
 visable : Provided^ that the same be not at any time sold un- 
 der par. 
 
 XIX. Be it enacted^ by the authority aforesaid, That the 
 Treasurer of the Lower Division, under the direction of the Treasurer un- 
 Governor of the State, shall, from time to time, as he may be der direction 
 called on by the Bank of the State, make out certificates of of the Govern- 
 stock, bearing an interest of five per cent, payable quarter °^' ^^ ^^^"® 
 yearly, in the names of such persons, and for such such sums, 
 
 as the President and Directors of the said Bank, by resolu- 
 tion of the board thereof, may require, not exceeding, in the 
 whole, the sum of three hundred thousand dollars ; and it shall 
 be the duty of the Treasurer of the Lower Division to conduct 
 the business in relation to the stock hereby directed to be issued, 
 in the same manner as he now does the stock issued under 
 the Acts of eighteen twenty and eighteen twenty-two. 
 
 XX. Be itfurtlier enacted, by the authority aforesaid. That 
 
 the eighth section of the Act entitled "An Act concerning the Repeal of the 
 Bank of the State of South Carolina," be, and the same is 8th section of 
 hereby, repealed, and the stock books be returned to the office 
 of the Treasurer of the Lower Division, and by him be kept 
 as heretofore. [^Not acted on.'] 
 
 AN ACT TO re-charter the Bank of the State cf South a. A. 1833, 
 Carolina. - p. 57. 
 
 S. L. vol. 8, 
 
 Whereas, it is deemed expedient and beneficial, both to its ^' 
 citizfens and the State, to re-charter the Bank of the State of 
 South Carolina. 
 
 I. Be it therefore enacted, by the Honorable the Senate and ^, 
 House of Hepresentatives, now met and sitting in General jgjj 
 Assembly, and by the authority of the same. That an Act 
 entitled " An Act to establish a Bank on behalf of and for 
 the benefit of the State," passed on the nineteeth day of De- 
 cember, in the year of our Lord one thousand eight hun- 
 dred and twelve, and all other Acts now of force relating to 
 the conduct and operations of the said Bank, be, and they are 
 hereby, re-enacted and continued of force until the first day 
 of May, in the year of our Lord and thousand eight hundred . 
 and fifty-six. 
 
ACTS OF LEGISLATURE. 
 
 1833. 
 
 Not to issue 
 bills under $ 
 
 Branch at 
 
 Georgetown 
 
 discontinued. 
 
 II. And be it furtlwr enacted^ That the said corporation 
 shall neither issue nor put into circulation any note for less 
 than one dollar — and shall call in and withdraw from circula- 
 
 ^- tion all bills heretofore issued by it of a lesser denomination 
 than one dollar, as soon as the same can be conveniently done. 
 
 III. And he itfurtlmr enacted^ That the Act of the Gene- 
 ral Assembly, passed on the seventeenth day of December, 
 one thousand eight hundred and sixteen, establishing a branch 
 of the Bank of the State of South Carolina at Georgetown, be, 
 and the same is hereby, repealed, and that the said branch be 
 discontinued, and that an agency be established at that place 
 in lieu of said branch. 
 
 A. A. 1834, From " An Act to alter and ament) the fourth Article of 
 
 g.63. THE Constitution." 
 
 . L. vol. 1, 
 
 P" ■ Be it enacted^ by the Honorable the Senate and House of 
 
 Oathof alleffi- -^^P^^^^^*^^^^^®' ^^^ ^^* ^^^ sitting in General Assembly, 
 ance. and by the authority of the same, That the fourth article of 
 
 the Constitution of this State shall be amended, so as to read 
 as follows, viz : Every person who shall be chosen or appoint- 
 ed to any office of profit or trust, before entering on the exe- 
 cution thereof, shall take the following oath : " I do solemnly 
 swear (or affirm) that I will be faithful, and true allegiance 
 bear to the State of South Carolina, so long as I may con- 
 tinue a citizen thereof; and that I am duly qualified, accord- 
 ing to the Constitution of this State, to exercise the office to 
 which I have been appointed — and that I will, to the best of 
 my abilities, discharge the duties thereof, and preserve, pro- 
 tect and defend the Constitution of this State, and of the 
 United States : So help me God." 
 
 A. A. 1836, 
 p. 20. 
 
 S. L. vol. 6, 
 p. 566. 
 
 Providing for 
 the payment 
 of the subcrip- 
 tion to the 
 Louisville, 
 Cincinnati 
 and Charles- 
 ton Rail Road 
 Company. 
 
 From " An Act to make Appropriations for the year 
 1836." 
 
 IIL And he itfurtJier ena^ted^ That the Comptroller Gen- 
 eral shall be authorized to call upon the President of the 
 Bank of the State of South Carolina for the instalments, as 
 they may become due, on the shares to be subscribed for in 
 the Louisville, Cincinnati and Charleston Rail Road Compa- 
 ny, according to the terms and conditions of the resolutions 
 adopted by the Legislature on the subject, during the present 
 session, to be paid by the said President out of the surplus to 
 be received from the General Government. 
 
ACTS OF LEGISLATURE. 39 
 
 AN ACT TO PROVIDE FOR THE RECEPriON AND DISPOSITION 1836. 
 
 OF SO MUCH OF THE SuRPLUS EiEVENUE OF THE UniTED n,^^v^x^ 
 
 States as may be apportioned to this State, undepc the A. A. 1836. 
 
 Act of Congress in such case made and provided. P- t^- , ^ 
 
 S. L. vol. 6. 
 
 p. 555. 
 
 I. Be it enacted^ by the Senate and House of Representa- 
 
 tiveT, now met and sitting in General Assembly, and by the Acceptance of 
 authority of the same. That the State of South Carolina will surplus, 
 receive such portion of the money of the United States of 
 America, as may be apportioned to the said State, under the 
 Act of Congress entitled " An Act to regulate the Deposite 
 of the Public Money," approved on the twenty-third day of 
 June, in the year of our Lord one thousand eight hundred 
 and thirty six, on the terms specified therein. 
 
 II. That the Comptroller General be, and he is hereby, au- 
 thorized and required to receive, for and on behalf of this ^oiwptroller 
 State, the respective dividends of said money, payable to the ceivethe same 
 same, in pursuance of the aforesaid Act of Congress ; and to 
 
 execute, for and on behalf of the said State, such certificate as 
 may be prescribed by the Secretary of the Treasury of the 
 United States, in pursuance of the direction of the said Act of 
 Congress. 
 
 III. That the Comptroller General be, and he is hereby, 
 authorized and , required, upon receiving any portion of the And deposit it 
 said money, forthwith to cause the same to be deposited in ^" ^^® Bank, 
 the Bank of the State of South Carolina, to the credit of the 
 
 State, which shall not be considered a part of the capital of 
 the said Bank, but shall be banked upon and employed like 
 the capital of the said Bank, according to the usages and cus- 
 toms of the Bank, until it may be withdrawn by requisition, 
 according to the provisions of the aforesaid Act of Congress, or 
 otherwise disposed of by authority of law. 
 
 IV. That the said Bank shall pay over to any requisition 
 
 by the United States, made in pursuance of the aforesaid Act Bank to pay 
 of Congress, such portion of the said surplus revenue as may V- ^- ^quisi- 
 be so required: Provided the said requisition shall not ex-jj^^^ ^'^ 
 ceed the amount of the said surplus revenue then in pos- 
 session of said Bank (and not otherwise appropriated by law.) 
 
 AN ACT concerning the Bank of the State of South A. A. 1837. 
 
 Carolina. E- ^- , „ 
 
 S. L. vol. 8. 
 
 I. Be it enacted by the Honorable the Senate and House of ' 
 Representatives, now met and sitting in General Assembly, Change bills 
 and by the authority of the same, That the President and Di- may fe issued, 
 rectors of the said Bank be, and they are hereby, authorized 
 and required to issue change bills of the denomination of fifty 
 cents, and twenty-five cents, to such an amount as in their dis- 
 cretion may be necessary to meet the present wants of the ci- 
 tizens of the said State. • 
 
40 ACTS OF LEGISLATURE. 
 
 1838. II. And he itfurtlur enacted^ by the authority aforesaid, 
 
 v^^-v-^-/ That the President and Directors of the said Bank be, and 
 
 Clerk may they are hereby, authorized to cause all bills of and under the 
 
 sign them. denomination of two dollars, to be signed by a Clerk, to be 
 
 by them appointed for that purpose. 
 
 III. And he it farther eymcted by the authority aforesaid, 
 That all Acts, parts or clauses of Acts, forbidding the issuing 
 
 ^®P.®^J[^^°"' of bills of the denomination of fifty cents, and twenty five 
 ^ ^ * ^' cents, or regulating the mode and manner of signing the bills 
 of the denomination of one and two dollars, be, and the sanie 
 are hereby, repealed. 
 
 IV. And he it furtJier enacted^ That this Act shall con- 
 tinue and be offeree for twelve months, and no longer. 
 
 A. A. June, ^]sf ACT FOR Rebuilding the CIty of Charleston. 
 1838. p. 5. 
 
 p. 156. 1. Be it enacted^ by the Senate and House of Representa- 
 
 tives, now met and sitting in General Assembly, and by the 
 issue bondsfor ^uthority-of the same, That the Governor of the State of South 
 $2 000 000. Carolina be, and he is hereby, authorized and directed, in the 
 name of the said State, to issue bonds or other contracts, to 
 be countersigned by the Comptroller General, not exceeding 
 in all the sum of two millions of dollars ; one million of which 
 shall be payable at the expiration of twenty years, and the 
 other million at the expiration of thirty years, at a rate of in- 
 terest not exceeding six per cent., for the purpose of procur- 
 ing a loan, on the credit of the State, to rebuild that portion 
 of the city of Charleston now lying in ruins; that the said 
 bonds or contracts be issued in such form, and for such sums, 
 and the principal and interest be made payable at such times 
 and places, as shall be most efiectual in procuring the 
 said loan upon the best terms, either in Europe or America ; 
 and that the faith and funds of the State of South Carolina 
 be, and the same are hereby, pledged to secure the punctual 
 payment of the said bonds or contracts, with the interest 
 thereon. 
 
 II. That in order to effect the said loan, the Governor is 
 Bank to ap- authorized and directed to commission such agent or agents 
 fS'"l"ems'^" ^® *^^ President and Directors of the Bank of the State of 
 g agen s. gQ^^jj Carolina shall appoint; which said agent or agents shall 
 be empowered to receive the said bonds or contracts from the 
 Governor and Comptroller General, and to make all such ar- 
 rangements as in his or their judgment may be deemed ex- 
 'pedient for procuring the said money and placing it to the 
 credit of the State, subject to the draft or order of the Presi- 
 ^ dent of the Bank of the State of South Carolina. 
 
 Money depos- . ^^^ "^^^ money, when realized in Charleston, shall be depo- 
 ited in Bank sited in the Bank of the State of South Carolina, and shall 
 of the State, become a part of the capital thereof 
 
 I 
 
ACTS OF LEGISLATURK 41 
 
 IV, The President and Directors of the said Bank areau- 1838. 
 thorized and required to loan to such applicants as will re- ^.^-v^^^ 
 build the portion of the city of Charleston which has been Applicants to 
 destroyed by the late fire, two millions of dollars, if so much ^® loaned to. 
 be required, under the following terms and regulations, viz: 
 
 Clause 1. As soon as the said loan, or any portion thereof, „ i 
 
 may be effected, any applicant desiring to build upon the said fo^J^an. ^^^ 
 burnt district, may avail himself of the benefit thereof, by 
 making an application to the said Bank, setting forth a plan 
 and estimated cost of the building he proposes to erect, toge- 
 ther with the situation and dimensions of the lot whereon the 
 building is to be placed, and an abstract of his title thereto; 
 and upon the President and Directors of the said Bank being 
 satisfied with the title, and that it is free from encumbrances, they 
 shall direct the said lot to be valued by the commissioners 
 hereafter named, who shall certify their valuation to the said 
 President and Directors, whereupon the said President and 
 Directors are authorized and instructed to loan to the said 
 applicant, one half the appraised value of his said lot. And 
 all applications for the said loan shall be made within two 
 years from the passing of this Act. 
 
 Clause 2. The applicant shall enter into bond, in a suffi- „ ^ f 1 
 cient penalty, with condition to pay to the President and Di- instalments ' 
 rectors of the said Bank of the State, the principal sum of and interest, 
 whatever may be loaned him, in ten equal annual instal- 
 ments, the first of which shall be payable within three years 
 from the date of the bond ; also, with condition to pay the in- 
 terest annually; also, with the further condition that the money 
 loaned shall, within one year from its receipt, be expended in 
 the erection of brick or stone buildings, upon the said lot of 
 land; and also that the said applicant shall in all respects com- 
 ply with the provisions of this Act ; and the said bond shall be 
 secured by a mortgage of the lot of land; and the form and 
 nature of such bond and mortgage shall be prescribed by the 
 President and Directors of the said Bank, under the advice and 
 direction of the Attorney General ; and if the said mortgage 
 should at anytime become forfeited, either by failure to pay any 
 part of the principal or interest of the said debt, at the time spe- 
 cified, or by a breach of any of the conditions of the said bond, the 
 President and Directors of the said Bank shall and may, after 
 six months notice to the obligor, his heirs, executors, adminis- 
 trators, or assigns, either personally served, or published in 
 one or more public gazettes, in the city of Charleston, proceed 
 to sell the property mortgaged, by auction, for ready money, 
 for the best price that can be obtained for the same ; which 
 said sale shall be advertised for three weeks previously in one 
 or more of the public gazettes of the city of Charleston ; and 
 the monies arising from such sale shall be applied by the Pre- • 
 sident and Directors of the said Bank, in satisfaction of the 
 said bond, any law, usage or custom, to the contrary thereof, , 
 
 in any wise notwithstanding; and the purchaser at such sale, 
 his heirs and assigns, shall be deemed to be seized of a good and 
 absolute and legal estate in fee simple of the premises purchas- • 
 6 
 
42 ACTS OF LEGISLATURE. 
 
 1838. ed, as against all persons whomsoever, their heirs and assigns, 
 Ns,^-v-^ not claiming by or under a paramount title. 
 
 Clause 3. Whenever the amount first loaned shall have 
 Provision for heen expended in the erection of buildings, as aforesaid, the 
 a further loan, said applicant, his heirs at law, legal representatives or assigns, 
 may make application for a further loan, whereupon the Pre- 
 sident and Directors of the said Bank shall cause the said 
 commissioners to ascertain and report whether the sum origi- 
 nally loaned has been applied as aforesaid, and upon the 
 same being certified to the said President and Directors, they 
 shall make to such applicant, his heirs at law, representatives, 
 or assigns, a further loan, equal in amount to one half the ap- 
 praised value of the said lot, should so much be necessary to 
 complete the improvements thereon, which said loan shall be 
 taken upon the same terms, and subject to the same conditions, 
 as the first. And a further loan shall be made, equal to one 
 half the value of the lot, should so much be required to com- 
 plete the improvements thereon, whenever the said commis- 
 sioners shall certify to the President and Directors of the said 
 Bank, that the amount already loaned has been actually ex- 
 pended agreeably to the provisions of this law, and as soon as 
 a good policy of insurance upon the property, to the extent of 
 the amount previously loaned, shall have been duly assigned to 
 the Bank. And the said additional loans shall be taken sub- 
 ject to the same conditions, and shall be secured in the same 
 manner as the first. And in case any part of the said two 
 millions shall remain, after making the said loans, the same may 
 be lent to any applicant, or his heirs at law, representatives or 
 assigns, for the purpose of completing his improvements, upon 
 such securities as may be deemed satisfactory by the President 
 and Directors of the said Bank. 
 
 Clause 4. The valuation of the lots upon which the said 
 How valua- loans are to be made, and also the certificates of expenditures 
 tions shall be ^pQ^ tlie buildings, shall be made by a board of five commis- 
 sioners, two of whom shall be appointed in behalf of the State, 
 by the Bank, and two in behalf of the City, by the City Coun- 
 cil, and a fifth to be chosen by the other four ; and in case any 
 vacancy occur, it shall be filled by the same parties who had 
 appointed to the place so become vacant ; and the said board, 
 or a majority, (having been first duly sworn to the faithful dis- 
 charge of their duty.) shall, in all cases where a loan is to be 
 made or increased, certify their valuation to the Bank, and 
 make such report of facts as may be necessary and proper to 
 enable the said Bank to discharge its duty to all interests con- 
 cerned. 
 
 Clausk 5. In all eases where the value of the lot has been 
 J loaned, it shall be the duty of the borrower to cause insurance 
 
 must be efFec- ^^ ^^ efiected upon the buildings thereon, and to keep the same 
 ted. renewed, for the amount ef the loan, or so much thereof as may 
 
 remain unpaid, and to assign the policy to the Bank as collate- 
 ral security ; and in case the said borrower shall neglect so to 
 do, the Bank shall cause insurance to be efiected or renewed 
 
i 
 
 ACTS OF LEGISLATURE. 43 
 
 in behalf of the President and Directors of the said Bank, and 1838. 
 shall demand from the said borrower the premium of insurance v,^-v-v^ 
 paid, and all expenses ; and if the same are not paid within one Provisions for 
 •month, then the bond given by such borrower shall be consi- '^^glect. 
 dered forfeited, and he shall forthwith be bound to pay up the 
 whole of his debt, as though the instalments had all been made 
 payable at such date of forfeiture, if the said bank shall deem 
 it expedient to require payment of the same ; and in all cases 
 where a policy of insurance is required by this Act, the Bank 
 may accept in lieu thereof some other collateral security. 
 
 Clause 6. No loan shall be made upon any lot upon which 
 there may be a wooden building, unless sufficient security be ^^o^g" buiM- 
 first given, that the same shall be removed within one year jngs exist, 
 from the passing of this Act. 
 
 Clause 7. The interest to be charged on the said loan Interest, 
 shall be fixed at as low a rate as will cover the interest to be 
 paid by the State, with the necessary charge of remittance ; 
 but the said rate shall in no event exceed seven per cent, per 
 annum. 
 
 y. Before the said loan is effected, the City of Charles- 
 ton shall, by an ordinance, to be duly ratified by the ^u^anty the 
 City authorities, guaranty the State against all loss to arise j^tate. 
 from loans to be made to the citizens of Charleston, under the 
 authority of this Act. 
 
 VI. The lessee or tenant for life of any lot of land within Of lessees or 
 the said district, shall be allowed the benefit of the provisions owners, 
 of this Act, if the owner of the reversion or remainder join in 
 the mortgage to secure the amount loaned, in such form as 
 may be advised by the Attorney General. 
 
 YII. The mortgage executed by the applicant shall be a Qf mortgages, 
 charge upon the land, in favor of the Bank and its assigns, 
 from the date of its registry in the office of Mesne Conveyance, 
 against all persons whomsoever : and all mortgages shall be 
 recorded or lodged in the Register's office for record, by the 
 applicants, before any money shall be paid by the Bank. 
 
 VIII. And whereas, the frequent visitation of the City of How lawful 
 Charleston by fire, the destruction of property, and the loss of buildings shall 
 life, occasioned thereby, admonish the State of the evil of per- ^® construct'd. 
 mitting other than fire proof buildings in the said city ; and 
 wJiereas, the funds of the State herein authorized to be ad- 
 vanced on the security of buildings in the said City, may be 
 endangered ; and no inducement is offered to individuals to 
 erect fire-proof buildings, so long as others are allowed to 
 build in their immediate neighborhood of combustible mate- 
 rials ; for remedy whereof, Be it enacted, That hereafter it 
 shall not be lawful to build, put, erect or construct, within the 
 City of Charleston, any wooden or framed building, or to 
 cover any building with a roof of combustible materials ; and 
 every building or construction, framed or constructed of wood, 
 or having more wood on the outside thereof, or the roof of 
 which is constructed otherwise, than is prescribed by an ordi- 
 nance, ratified by the City Council of Charleston, on the 8th , 
 May of the present year, entitled, " An Ordinance to prevent 
 
44 ACTS OF LEGISLATURE. 
 
 1838. the erection of Wooden Buildings, and to provide greater se- 
 v,^-v-^^ curity from Fires," shall be, and is hereby declared to be, a 
 public and common nuisance, and, as such, shall be abated, by 
 the judgment and process of any court of competent jurisdic-* 
 tion ; and the persons respectively, building, covering, or con- 
 structing, or instrumental in building, covering, or construct- 
 ing, any building, roof, or construction contrary to this Act, 
 or to the provisions prescribed in the said ordinance, shall be 
 subject to the same penalties, in all respects, as are prescribed 
 by the said ordinance ; and all additions which shall be made 
 to houses or buildings already erected, and all houses and 
 buildings which shall be erected on old foundations, in part or 
 in whole, shall be deemed and considered within the provi- 
 sions, restrictions and regulations of the said ordinance, and 
 City Ordi- of this Act; and full power and authority are hereby granted 
 nance to pre- and confirmed to the City Council of Charleston, to deter- 
 scribe. mine the materials, thickness and construction of the walls 
 
 and other parts of the buildings, of different dimensions 
 and character, within the said City, and to make such other 
 provisions by law, as they may deem expedient, to promote the 
 erection of safe and convenient fire-proof buildings, and to 
 provide greater security to the said city from fires. Provided al- 
 ivays^ that none 'of the securities against fire, prescribed by this 
 Act, shall be diminished by any action of the City Council. 
 And provided, also, that the marshes flowed by the tide, with- 
 in the said City, shall be excepted only to such extent as has 
 been excepted by the said City Council. 
 
 IX. And tvhercas, the whole property in which the funds of 
 Wooden buil- the State are authorized by this Act to be invested, may be 
 a^nuLance^^^ also greatly endangered by the wooden buildings and sheds 
 already erected upon the said bunit district since the late 
 fire ; Be it enacted, That every wooden building erected up- 
 on the said burnt district, be, and the same is hereby declared, 
 a public nuisance, and as such shall be abated as aforesaid. 
 And it shall be the duty of the Mayor and Aldermen of the 
 City of Charleston to cause the same to be abated or removed 
 at any time after the expiration of one year from this date, 
 giving to the persons occupying the same at least three months 
 previous notice of their intention to remove the same. And 
 Damages as- all persons who shall receive damage to their property by rea- 
 son of such removal, may apply by petition to the Court of Com- 
 mon Pleas, who shall thereupon cause the damage to be as- 
 sessed by a Jury, in view of the premises, and after having 
 heard the parties or their counsel ; and the jury, in assessing 
 the damages, shall take into consideration the advantage which 
 may accrue to the petitioner by surrounding his premises with 
 brick instead of wooden buildings ; and the damages so found 
 by the jury shall be paid by the City Corporation to the party 
 entitled; and in case the City Council, before removing the 
 said building, shall prefer to have the damages assessed, it 
 shall be lawful for them to file their petition in the said Court, 
 giving notice to the owner or person in possession, and there- 
 upon the said Court shall cause the damages to be assessed by 
 
ACTS OF LEGISLATURE. 45 
 
 a jury as aforesaid ; and the finding of the jury shall be con- 1838. 
 elusive upon all parties. Provided ahvays^ that the city shall v,.^-v-^^ 
 not be bound to indemnify or pay damages for any building 
 which has been erected or constructed contrary to the provi- 
 sions of the ordinance hereinbefore mentioned and referred to. 
 
 X. It shall be the duty of the President and Directors of Bank shall 
 the Bank of the State of South Carolina, to make proper pro- make provi- 
 visions for the punctual payment of the interest of such loan mento/interest 
 as may be effected upon the credit of the State under the pro- and principal 
 visions of this Act ; and also for the ultimate payment of the of loan, 
 principal thereof 
 
 XI. It shall be the duty of the President and Directors of Duties of the 
 the Bank of the State of South Carolina, to cause to be opened Bank, 
 
 in the books of the said Bank, an account, in which they shall 
 debit themseves with the profits arising out of the additional ca- 
 pital, created out of the two millions loan aforesaid, for the year 
 ending on the first day of October, in the year of our Lord, one 
 thousand eight hundred and thirty-nine, and with all the fu- 
 ture profits of the said loan, as the same shall hereafter be an- 
 nually declared; which said fund, with its annual accumula- 
 tions, shall be considered solemnly pledged and set apart for 
 the payment of the interest on the said loan and the final re- 
 demption thereof; and it shall be 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. 
 
 XII. When the profits of the said Bank of the State of Profits of 
 South Carolina shall have paid the interest of certain stocks, Bank pledged, 
 and redeemed the said stocks, for which they have heretofore 
 
 been pledged and set apart, the said profits shall also be con- 
 sidered solemnly pledged and set apart for the payment of the 
 interest on the said loan, and the final redemption thereof. 
 
 XIII. The said President and Directors shall make such 
 additional compensation to the Attorney Greneral'as they may 
 
 deem sufficient for the additional services required of him by Attorney Gen- 
 this Act ; and they shall also make provision for paying such ^ral compen- 
 expenses as may be incurred by the Bank, in carrying this Act 
 into effect. 
 
 AN ACT TO AMEND AN AcT FOR REBUILDING THE CiTY OF A, A. 1838, 
 
 Charleston. E- t^- . „ 
 
 S. L. vol. 7, 
 
 Be it enacted^ By the Senate and House of Bepresentatives, 
 now met and sitting in Greneral Assembly, That the Act of the 
 Greneral Assembly of this State, ratified on the first day of June 
 last, entitled " An Act for rebuilding the City of Charleston," 
 be, and the same is, amended in the following particulars : 
 
 1. The applicant for a loan may execute a single bond, withBx)nds, how 
 a penalty sufficient to cover all loans which may be made to taken, framed, 
 
 «&c. 
 
46 
 
 ACTS OF LEGISLATURE. 
 
 Titles. 
 
 Policy of in 
 surance. 
 
 Valuation. 
 
 1838. him in virtue of the said Act, and a single mortgage to secure 
 ,<rv-^^ the said bond ; and the said bond and, mortgage shall be so 
 framed by the Attorney General, as to embrace all the loans 
 which may be made under the said Act ; and the mortgage so 
 executed, shall be deemed and taken as effectual to protect and 
 secure all such loans as are within the amount of the penalty 
 of the bond, in the same manner as though the whole amount 
 which shall be subsequently loaned, had been loaned at the 
 date of the said bond and mortgage. 
 
 2. The applicants for the said loan shall be required to fur- 
 nish the Bank only with an abstract of their title, and with 
 such title deeds as may be in their possession, not recorded. 
 They shall not be required to furnish copies of any evidence 
 or muniment of title, or mense conveyance, which has been re- 
 corded in the proper public office. 
 
 3. The policy of insurance which shall be required from 
 any applicant for a loan, shall be deemed sufficient, if taken 
 for such amount as it is customary for insurance offices within 
 the State to take^upon any single risk. 
 
 4. Preliminary applications for the said loan shall be re- 
 ceived by the said Bank from any applicant, setting forth the 
 plan and estimated cost of the building proposed to be erected, 
 together with the situation and dimensions of the lot whereon 
 the building is to be placed ; and the President and Directors 
 of the Bank, upon receiving such application, shall, even before 
 information as to the condition of the title, direct the lot to 
 be valued by the Commissioners appointed for that purpose ; 
 and the said Commissioners shall value the same, and certify 
 their valuation in the manner provided by the Act of which 
 this is an amendment ; and the President and Directors of the 
 Bank shall thereupon inform the applicant of the sum to 
 which he will be entitled on complying with the provisions of 
 the law ; but no loan shall be actually made until the appli- 
 cant shall fully have complied with the provisions of the Act 
 above referred to, as amended by this Act. 
 
 II. And be it furtlier enacted, That the fees of each public 
 officer, who shall furnish certificates to be used in procuring 
 the said loan, shall be, as is usual, twelve and a half cents for 
 searches through all their books for each name, and sixty-two 
 and a half cents for their certificate ; but no public officer 
 shall demand or receive from any applicant for the said loan, 
 more than two dollars for all searches, certificates, and servi- 
 ces, which may be made, given or rendered, in his office, for 
 the said applicant, upon any one application for a loan ; and 
 every public officer who shall demand or receive more than two 
 dollars for all searches, certificates, and services, inclusive, or 
 who shall refuse to perform the usual duties of his office, at the 
 request of any such applicant, shall be deemed guilty of a mis- 
 demeanor, and upon conviction thereof, before any court of 
 competent jurisdiction, shall be subject to fine and imprison- 
 ment at the discretion of the court. 
 No charge by III. Be it further enacted, That no charge shall be made 
 Att'y General, against any applicant for a loan, by the Attorney General, for 
 
 Fees for 
 searches 
 
 &c. 
 
ACTS OF LEGISLxiTURE. . 47 
 
 the bond and mortgage required to be taken by the Bank, nor 1838. 
 for any other professional services rendered by him in the ar- v^#*-v-^^ 
 rangements for a loan. 
 
 IV. Ami he it further evucted^ That any person owning a 
 lot, upon which a brick or stone building shall have been com- 
 menced since the fire of April last, shall be entitled to receive erections! ^^^ 
 all the instalments of the loan, which he could have claimed 
 under this or the former Act, if he had made application be- 
 fore the commencement of the work ; provided he shall sub- 
 stantially comply with all the conditions required of an origi- 
 nal applicant who shall have received the same number of in- 
 stalments, and shall substantially give to the Bank secu- 
 rity equal to that which would have been required of such 
 original applicant. 
 
 From "An Act making Appropriations for the year . . ^ 
 
 1 QQQ ') A. A. 1838, 
 
 p. 13. 
 
 S. L. vol. 6. 
 XII. Be itfurtJter enacted^ That the payment of the sum of p. 612. 
 four thousand one hundred and sixty-three dollars, three cents. To confirm 
 made by the Treasurer of the Upper Division, under the reso- ^^^^^ ^ Div 
 lution of the Legislature, agreed to upon the fifteenth day of ^^ correct an 
 December, in the year one thousand eight hundred and thirty- error in ac- 
 seven, to correct an error in Governor McDufiie's account with count of Gov, 
 the Bank, be, and the same is hereby, confirmed. McDuffie. 
 
 AN ACT TO authorize a Subscription i^i behalf of the » . .^^^ 
 State to the South-Western Rail Road Bank. p " 44 ' 
 
 S. L. vol. 8. 
 
 I. Be it enacted, by the Senate and House of Representa- P- 104. 
 tives, now met and sitting in General Assembly, and by the Confirmation 
 authority of the same. That the subscription made by his Ex- by^Governer " 
 cellency the Governor, in behalf of the State, for ten thousand 
 
 shares in the South-Western Rail Road Bank, be, and the same 
 is hereby, authorized and confirmed. 
 
 II. The Comptroller General is hereby authorized to draw 
 
 from the Bank of the State the amount which may be re- Comptroller to 
 quired to pay the instalments due, and to become due, upon the r[^T. 1?"^ 
 said subscription, and to demand and receive from the proper amount U) pay 
 officers of the Rail Road Bank, the usual scrip certificates, instalments. 
 or receipts, and to hold the same for and on account of the 
 State ; and the President and Directors of the said Bank of 
 the State shall make such arrangements as they shall deem 
 expedient, for paying the said drafts of the Comptroller Gene- 
 ral: Provided, in case the President and Directors of the • 
 
48 
 
 ACTS OF LEGISLATURE. 
 
 The Comp 
 Gen. to issue 
 
 Dividends , 
 how disposed 
 of. 
 
 1838. Bank] of the State of South Carolina shall be of the opinion 
 that they cannot advance the said funds required by said sub- 
 scription, without embarrassment to the operations of said 
 Bank, or without violating the faith of the State, pledged 
 in " An Act to provide a Sinking Fund for the redemption 
 of the six per cent. Stock of the State," passed in the year 
 of our Lord one thousand eight hundred and twenty-one, 
 and pledged in subsequent Acts for the redemption of all 
 the Stock subsequently issued, then, and in that case, the 
 Comptroller General is required to issue stock therefor, on 
 OOo'' o"f"5 the part and in behalf of the State, bearing a half yearly 
 
 per ct. stock, interest, at a rate of five per cent, per annum, and redeem- 
 
 rede. in 20 yrs. able at the end of twenty years. 
 
 III. The dividends which shall be declared by the South 
 Western Rail Road Bank, upon that portion of its capital stock 
 held by the State, shall remain on deposit in said Bank as a 
 fund to meet further instalments upon the said stock, as they 
 may be called in, and shall, for that purpose, be subject, with 
 any interest to accrue thereon, to the draft of the Comptroller 
 General. Prc/vided^ such rate of interest shall be allowed 
 on the same as may be agreed upon between the said Bank and 
 the Comptroller General ; and irrovided aho^ that such divi- 
 dends, so deposited, shall in no instance draw less than at the 
 rate of three per cent, per annum. 
 
 IV. At all elections or meetings of the Stockholders of the 
 said Bank, the Commissioners now acting, or hereafter to be 
 appointed, under a joint resolution of the Legislature, as 
 proxies, in the Louisville, Cincinnati and Charleston Rail Road 
 Company, or a majority of such as may be present, shall act as 
 the proxies of the State. 
 
 V. The bonus to be paid by the Bank of Charleston, for the 
 increase of its capital stock, shall be paid to the President and 
 Directors of the Bank of the State of South Carolina, and may 
 be by them applied on account of the subscription aforesaid. 
 
 State proxies. 
 
 Bonus from 
 Bank of 
 Charleston. 
 
 11, 
 
 A. A 
 p. 59. 
 
 S. L. vol 
 p. 38. 
 
 Sheriffs to de 
 posit weekly 
 
 1839, From "An Act concerning the Office, Duties and Liabil- 
 
 ities OF Sheriff.' 
 
 State, or 
 Branches 
 
 LXIV. The Sheriff of Charleston district, and the Sheriffs 
 , . of each district in which a branch of the Bank of the State 
 
 State, or ^^^^^^^ South Carolina is, or may be established, shall, weekly, de- 
 posit, for safe keeping, in his name as sheriff, distinctly from 
 any deposit made on his own account, all monies in his hands 
 as sheriff; and on failure therein, any such defaulting Sheriff 
 shall, for each offence, forfeit the sum of one thousand dollars, 
 to be recovered as other penalties are directed to be recovered 
 by the Act to establish the Bank of the State of South Caro- 
 lina. 
 
 I 
 
ACTS OF LEaiSLATURE. 49 
 
 AN ACT TO PROVIDE FOR AN ADVANCE BY THE StATE ON ITS 1839. 
 
 SUBSCRIPTION TO THE LoUISVILLE, CINCINNATI AND ChARLES- v^^v^w 
 
 TON Rail Road Company. A. A. 1839, 
 
 p. 129. 
 
 I. Be it enacted by the Honorable the Senate and House 'gg/^° ' ' 
 of Representatives, now met and sitting in General Assem- Comptroller 
 bly, and by the authority of the same, That the Comptroller General to 
 General be, and he is hereby, authorized and required to is- issue State 
 sue and deliver to the Louisville, Cincinnati and Charleston ^]-^^^ ; condi- 
 Rail Road Company, six hundred thousand dollars of State ^°"^' ^' 
 stock, bearing an interest of six per cent, per annum, payable 
 quarterly, from the first day of January next, redeemable by 
 instalments of one-third on the first day of January, in the 
 year of our Lord one thousand eight hundred and forty-eight, 
 one-third on the first day of January, one thousand eight hun- 
 dred and fifty, and the other one-third on the first day of 
 January, one thousand eight hundred and fifty-two, as an ad- 
 vance to the State on its subscription to the said company : 
 Provided the said stock shall not be sold under par : And 
 provided also^ that this advance of six hundred thousand dol- 
 lars, on its said subscription to the said company, now made 
 by this State, shall be taken and considered as a debt due by 
 said c6mpany to the State, to the whole amount of such ad- 
 vance, beyond the proportional amounts which may be paid 
 by individual stockholders, on the instalments now due from 
 them, upon the calls for the same hereafter to be made, and 
 that interest be allowed the State at the rate of six per cent, 
 upon the amount for which it may be in advance, until cor- 
 responding instalment or instalments are called for by the 
 company, and paid in by the other stockholders : Provided 
 also^ that no part of the said stock be issued until satisfacto- • 
 
 ry evidence be produced to the Comptroller General, that ar- 
 rangements have been made by the company to take up all 
 the notes which are secured by a pledge of the shares in the 
 stock of the South Carolina Canal and Rail Road Company, 
 or that such pledges will be entirely removed on the issue of 
 the said stock ; and that the said notes and pledged certifi- 
 cates of shares, when taken up by the Louisville, Cincinnati 
 and Charleston Rail Road Company, be delivered to the 
 Comptroller General, to be held by the State as security for 
 the advance now made, and other liabilities of the State on 
 account of the Company : And provided also, that the advance 
 herein directed is upon the express condition that the in- 
 come which may be received by the Louisville, Cincinnati 
 and Charleston Rail Road Company, from the road between 
 Charleston and Hamburg, shall be applied, in the first instance, 
 to pay the interest which shall become payable on the bonds 
 of the said Company, guarantied by the State ; and that the 
 said condition, as well as all other conditions imposed by this 
 Act, shall be carried into effect by the said Company, in such 
 form as shall be required by the Comptroller General, under 
 the advice of the Attorney General. 
 
 7 • 
 
stock and in 
 terest, 
 
 50 ACTS OF LEGISLATURE. 
 
 1839. II. And be it furtJwr enacted by the authority aforesaid, 
 
 v^^-v^x^ That the interest on the said stock shall be paid from the 
 Pledges for sinking fund, and that the faith of the State, the capital and 
 P^y^e'it^ ?! dividends of the Bank of the State, and the balance of the 
 surplus revenue which may remain on deposite in the Bank 
 of the State, beyond the sum required to meet the four in- 
 stalments not now advanced by this Act, on the subscription 
 of this State to the Louisville, Cincinnati and Charleston 
 Rail Road Company, are hereby solemnly pledged for the pay- 
 ment of the interest, and the final redemption of said debt ; 
 and that the form of the certificate to be issued shall substan- 
 tially be the same as those heretofore issued for State stock. 
 The Legislature shall annually appoint, by joint ballot of 
 both Houses, five commissioners, each from a separate Judi- 
 cial circuit, who shall have power, until a new appointment be 
 duly made, to represent the State of South Carolina at all 
 meetings of the stockholders of the Louisville, Cincinnati 
 and Charleston Rail Road Company, and of the South-west- 
 ern Rail Road Bank, and of the South Carolina Canal and 
 Rail Road Company — and a majority of such as may be pre- 
 sent shall cast the vote of the State upon all questions and 
 elections. In case of the necessary absence of any commis- 
 sioner, he may, for that occasion, appoint some proper »person 
 to act in his stead. Until an appointment shall be made under 
 the provisiops of this Act, the commissioners now acting un- 
 der the appointment of the Legislature, shall continue to serve 
 according to the existing regulation. 
 
 ited, &c. 
 
 A. A. 1839, AN ACT TO EXTEND THE ChARTEK. OP THE SoUTH-WESTERN 
 
 gj^^' , ,, Rail Road Bank. 
 
 S. L. vol. 11, 
 
 p. 87. 
 
 Banking uriv ^ ^^ ^^ enacted by the Honorable the Senate and House 
 jleges confirm- ^f Representative, now met and sitting in General Assembly, 
 ed, and term and by the authority of the same, That the Banking privi- 
 f£?'7^^^ ^^^' ^^S^^ granted to the stockholders of the Louisville, Cincinna- 
 ti and. Charleston Rail Road Company, by an Act of the Gene- 
 ral Assembly of this State, ratified the 21st day of December, 
 one thousand eight hundred and thirty-six, entitled " An Act 
 to confer Banking privileges on the stockholders of the Lou- 
 isville, Cincinnati and Charleston Rail Road company, on cer- 
 tain terms and conditions," be, and the same are hereby, grant- 
 ed and confirmed to them within this State, for twenty years 
 from the first day of January next, and that the South-west- 
 ern Rail Road Bank shall be and remain a body corporate 
 during that period, upon the same terms and condition as are 
 set forth in the said Act, except so far as they are altered by 
 this Act : Provided^ the capital of said Bank shall not exceed 
 three millions of dollars, if the road be not extended above 
 Columbia. 
 
• ACTS OF LEaiSLATURE. 51 
 
 II. That the said corporation shall be discharged from the 1839. 
 conditions imposed by the 28th and 30th sections of said Act ; ^.^^v-^^ 
 and in lieu thereof, it is declared, that unless the stockholders Certain condi- 
 of the Louisville, Cincinnati and Charleston Rail Road Com- *^°"^ ^^t^" 
 pany shall finish the rail road, with a single track, from ^no^^er added 
 Branchville to the town of Columbia, within three years 'from 
 
 the first day of January next, then the grant hereby made 
 shall cease and determine. 
 
 III. In case the charter granted to the said corporation by 
 
 any other State shall be put an end to, the stockholders ini^ o£stTtes 
 that State may continue to be stockholders in the Bank, by may continue 
 allowing their subscriptions to the Louisville, Cincinnati and their subscrip- 
 Charleston Rail Road Company to be used by the directors of ^^ons. 
 that company, in common with the subscriptions paid in South 
 Carolina ; in default thereof, an account shall be taken of their 
 interest in the Bank, and their just proportions ascertained 
 and paid over to them, and their shares extinguished from the 
 capital of the Bank. 
 
 IV. The Legislature shall have authority at any time by a Autliority to 
 committee to examine the books and proceedings of the Bank, examine 
 
 V. The dividends which shall hereafter be declared by the "^^^^• 
 said Bank upon that portion of its capital stock held by the j)- a j 
 State, shall, under the direction of the Comptroller Greneral, how paid and 
 be paid over to the Bank of the State, and shall become a part applied. 
 
 of the sinking fund, and, in common with the said fund, shall 
 
 be applied to pay the interest and principal of the stock issued 
 
 by the State for its said subscription : Provided, /wwever, that 
 
 the South-western Rail Road Bank may at any time pay the 
 
 said dividends by any equal portion of the said stock at par ; 
 
 and that the third section of the Act of December, 1838, en- g^^Pg^J-^J^^^f 
 
 titled " An Act to authorize a subscription, in behalf of the Act of 1838. 
 
 State, to the South-western Rail Road Bank," be, and the 
 
 same is hereby, repealed. 
 
 AN ACT TO EXTEND THE TIME DURING WHICH LoANS MAY BE A. A. 1839, 
 
 GRANTED, UNDER THE AcT TO RE-BUILD CHARLESTON. P" ^^'^- , 
 
 S. L. vol. 11, 
 
 I. Be it enacted, by the Honorable the Senate and House 
 of Representatives, now met and sitting in General Assem- 
 bly, and by the authority of the same. That the time during 
 which applications may be made for loans, under the provi- 
 sions of the Act to rebuild Charleston, be extended to To June 1, 
 the first day of June, eighteen hundred and forty-one, (1841,) ^^^• 
 instead of the first day of Jjine, 1840, as provided by that 
 Act. 
 
52 ACTS OF LEGISLATURE. 
 
 1840. From "An Act to raise supplies for the year 1840. 
 
 A. A. 1840, XYIII. The dividends upon the shares held by the State 
 S I? V 1 11 ^^ *^^ South-western Rail Road Bank, shall be applied, in the 
 p ' 97_ ' ' first place, to extinguish the interest upon any stock of the 
 State divi- State which may be held by the Bank, and the balance of such 
 dends in R. R. dividends remaining after such extinguishment, may be paid 
 Bank, how ^^ ^j^g g^^^^g -j^j ^jj equal portion of State stock, valued at par. 
 
 From " An Act to ascertain and define the Powes, Du- 
 A. A. 1840 TIES AND Liabilities op Masters, Commissioners and Re- 
 
 p. 113. ' GisTERS IN Equity, and to provide for the Organization 
 S. L. vol, 11, AND Regulation of their respective Offices." 
 p. 113. 
 
 XVI. That the Master in Equity for Charleston district, 
 jj, , and the Commissioners in Equity in every district, respect- 
 
 Commiss'rs i^ely, where a branch of the Bank of the State of South Car- 
 in Equity to olina is, or may be, established, shall deposit in the said 
 deposit in Branch all monies officially in their hands, respectively, which 
 Bank or j^^^^^ heen received by them, by virtue of their said offices, or 
 
 ' ■ of any order or decree of the court ; and the Commissioners 
 in Equity in those districts where no branch of the said Bank 
 is, or may be established, shall likewise, annually, within one 
 month after the adjournment of their respective courts, depos- 
 it in the said Bank, or in some one of its branches, all monies 
 officially in their hands, as aforesaid, and which have re- 
 mained in their hands, unclaimed, for twelve months. And 
 all monies deposited in Bank by any Master or Commission- 
 er in Equity, or invested by him under any order or decree of 
 the court, in bonds, notes, stock, or in any property whatsoev- 
 ei', for or in behalf of any person or persons or estate, shall 
 be deposited or invested by the said Master or Commissioner, 
 not in his private name, but, unless otherwise directed by the 
 order of the court, in his official name as Master or Commis- 
 sioner, as the case may be, and the same shall be transmissi- 
 ble to his successor in office, in trust for the said person or 
 persons or estate. And if any Master or Commissioner in 
 Equity shall be ordered by the court to invest the funds in 
 his hands, and the accumulation of interest thereof, when re- 
 ceived by him, as fast as received, in stock, or other funds 
 yielding interest, and he shall neglect to do so, he and his sure- 
 ties shall be chargeable with compound interest upon all such 
 sums, to be calculated at half yearly periods, from the time 
 when such sums, and the interest thereon, were received, re- 
 spectively. And every Master and Commissioner shall ex- 
 hibit his Bank book, containing the entries of all deposits 
 made by him, as aforesaid, whenever required by any of the 
 parties interested therein ; but it shall not be necessary, here- 
 after, for any Master or Commissioner to make monthly re- 
 turns to the said Bank, of the monies officially received by 
 him, as now required by law. 
 
ACTS OF LEGISLATURE. 53 
 
 AN ACT TO AMEND THE ChaRTEJR. OF THE BaNK OF THE StATE 1840. 
 
 OF South Carolina. 
 
 A. 
 
 I. Be it enacted^ by the Senate and House of Representa- P- 
 tives, now met and sitting in General Assembly, That the * 
 President and Directors of the Bank of the State of South Presidents 
 Carolina be authorized to cause bills of and under the domi- and Cashiers 
 nation of ten dollars, to be signed by the Presidents and of branches to 
 Cashiers of the branches. "^S" b^"«- 
 
 II. The said President and Directors shall also have pow- rr, * ui- u 
 er to establish agencies of the said Bank, at such places as^gg^^-gg*^ 
 they may deem expedient. 
 
 III. The said President and Directors shall, from the pro- rj,^ ^(.^xqyq to 
 fits of the ensuing year, restore to the capital of the Bank the capital of 
 sum of two thousand eight hundred and sixty-one dollars, eigh- Bank the sum 
 ty-nine cents, released by the Legislature to the Columbia Fe-'^^^jSGl 89. 
 male Academy, in December, A. D. 1833. 
 
 IV. The President, Cashier, and Clerks employed in the Officers ex. 
 Bank of the State of South Carolina, shall be exempt from empted from 
 serving on juries. j"^y ^^^Y- 
 
 AN ACT TO PROVIDE against THE SUSPENSION OF SpECIE A. A. 1840, p. 
 
 Payments, by the Banks of this State. 100. 
 
 S. L. vol. 11, 
 
 I. Be it enacted^ by the Senate and House of Representa- P" ' 
 tives, now met and sitting in General Assembly, and by the Bankcharters, 
 authority of the same. That the provisions of this Act shall be 
 
 and become parts of the charter of every Bank already incor- 
 porated within this State, which shall accept the same ; and 
 also of every Bank which shall, at the present or any succeed- 
 ing session of the General Assembly, receive a grant of a char- 
 ter, or any renewal, amendment, or modification thereof, unless 
 the Act granting such charter, renewal, amendment or modifi- 
 cation, shall, in express terms, dispense with the said provi- 
 sions. 
 
 II. Every Bank which shall suspend the payment of current 
 
 coin for its notes, or which shall declare a determination to sus- Suspended 
 pend or refuse payment of its notes according to their legal obli- monthly^a?^^ 
 gation, in current coin, shall become liable to pay the State of the rate of 5 
 South Carolina, at the expiration of every month after such per cent, per 
 suspension or declaration, a sum of money at the rate of five annum, ori 
 per centum per annum, upon the whole amount of its notes, ^^^^^ circula- 
 which shall have been issued, in circulation at the commence- 
 ment of the said month, and shall continue to pay at the same 
 rate at the end of every month, until the said Bank shall re- 
 voke its declaration, and shall lawfully redeem its notes when 
 demanded, according to their legal obligation ; the said sum 
 of money to be recovered by action of debt, in any court of 
 competent jurisdiction. • 
 
54 
 
 ACTS OF LEaiSLATURE. 
 
 General. 
 
 1840. III. The President or Cashier of each Bank in this State 
 
 v,^-y-^> shall, within the first six days of every month, make a return, 
 Monthly Re- on oath, of the state of such Bank, as it existed at the opening 
 turnsto Comp. ^f the books on the first day of the then month, and shall 
 transmit the same, within the two next days, to the Comptrol- 
 ler General ; which ofiicer shall collate the various statements, 
 so as to present a comparative view of all the items thereof, 
 and shall publish the same in some public newspaper, for ge- 
 neral information. The said return shall specify the particu- 
 lars set forth in the several columns embraced in the follow- 
 ing schedule, and shall be made out in the following form, 
 viz: 
 
 SCHEDULE. 
 
 Schedule. 
 
 Debts. 
 
 DEBTS DUE BY TJHE BANK. 
 
 Capital stock. 
 
 Bills in circulation. 
 
 Nett profits on hand. 
 
 Balance due to Banks in this State. 
 
 Balance due to Banks in other States. 
 
 All other monies due which bear interest. 
 
 Cash deposited, and all other monies due, exclusive of bills 
 in circulation, profits on hand, balance due other Banks, and 
 money bearing interest. 
 
 Resources, 
 
 Forfeiture for 
 non-compli- 
 ance. 
 
 RESOURCES OF THE BANK, 
 
 Specie on hand. 
 
 Real estate. 
 
 Bills of other Banks in this State. 
 
 Bills of Banks in other States. 
 
 Balance due from Banks in this State. 
 
 Balance due from Banks in other States. 
 
 Notes discounted on personal security. 
 
 Loans secured by pledges of its own stock. 
 
 Loans secured by pledges of other stock. 
 
 Domestic exchange. 
 
 Foreign exchange. 
 
 Bonds. 
 
 Money invested in stock. 
 
 Suspended debt, and debt in suit. 
 
 Money invested in every other way than is specified in the 
 foregoing particulars. 
 
 Total resources of the Bank. 
 
 Rate and amount of the last dividend. 
 
 Amount of reserved profits at the date of the last dividend. 
 
 lY. Every Bank whose officers neglect to comply with the 
 provisions embraced in the third section of this Act, shall for- 
 feit, to the use of the State, to be recovered by the Comptrol- 
 ler General, one hundred dollars for each and every day's ne- 
 glect ; to be recovered, by action of debt, in any court of com- 
 petent jurisdiction. 
 
 1 
 
ACTS OF LEGISLATURE. 55 
 
 V. It shall be the duty of the Comptroller General to take 1840. 
 all requisite means for collecting the amounts of money requir- >,^v-^^ 
 ed to be paid to the State under the provisions of the second Powers and 
 section of this Act : he shall have power to examine the books duties of 
 of each Bank, for the purpose of ascertaining the true amount GenerS°and 
 of its notes in circulation ; and any officer of a Bank who shall Bank officers, 
 refuse to submit the proper books of the Bank to the Comp- 
 troller General, for the purpose aforesaid, shall be deemed 
 
 guilty of a misdemeanor, and, upon due conviction, shall be 
 subject to fine and imprisonment, at the discretion of any court 
 of competent jurisdiction. 
 
 VI. The Governor shall furnish each Bank within the State The Governor 
 with a copy of this Act, immediately after its ratification, with to furnisheach 
 a notice, requiring its acceptance of its provisions, as herein is ?^"^, ^^^^ 
 directed. . this Act, &c. 
 
 VII. Every Bank in this State which has heretofore sus- L^abilitv for 
 pended the payment of its notes in legal coin, or which has de- non-compli- 
 clared its determination to refuse or suspend such payment, ance. 
 shall, on or before the first day of March next, notify the Gov- 
 ernor of its acceptance of the provisions of this Act ; and in 
 
 case any such Bank shall neglect to give such notice, the Gov- 
 ernor shall forthwith cause legal proceedings to be instituted 
 by the Attorney General or Solicitors against such delinquent 
 Bank, for the purpose of vacating and declaring void its char- 
 ter. 
 
 130. 
 Time for loans 
 
 AN ACT TO MAKE FURTHER PROVISIONS IN RELATION TO A, A. 1840, p, 
 
 THE Fire Loan in Charleston. 130. 
 
 S. L. vol. 11, 
 
 I. Be it enacted, by the Senate and House of Representa- ^ 
 tives, now met and sitting in General Assembly, That the time extended^ 
 during which applications may be made for Loans, under the 
 provisions of the Act for Rebuilding the City of Charleston, be 
 extended to the first day of June, in the year of our Lord one Proviso, 
 thousand eight hundred and forty-two : Pi'ovided, that the 
 
 City Council of Charleston shall by law extend the guarantee 
 of the City to applications which may be made during such 
 extension of time. 
 
 II. Transfers of the stock issued in virtue of the said Act, 
 
 and the new certificates requisite upon such transfer, shall be "^ransfers of 
 made by the same officers, and in the same manner, as for other 
 State stocks ; but the certificate shall, upon its face, exhibit 
 that such stock has been issued under the provisions of the 
 said Act. 
 
 III. That interest upon the said stock shall be paid at the interest to be 
 State Treasury, in the same manner as upon other State paid at the 
 stocks ; but each check drawn for the interest shall exhibit State Treasu- 
 that it is drawn on account of the stock issued under the said ^- 
 
56 ACTS OF LEGISLATURE. 
 
 1841. Act ; and such interest shall be paid by the Bank of the State 
 v.-^-v^-/ from the avails of the Loan authorized by the said Act, and be 
 charged accordingly. 
 
 A. A. 1841. From "An Act to incorporate certain Villages, Socie- 
 E,' l^^l 1 ., TIES, AND Companies, and to renew and amend certain 
 Charters heretofore granted, and to establish the 
 
 PRINCIPLES ON which ChaRTERS OF INCORPORATION WILL 
 HEREAFTER BE GRANTED." 
 
 S. L. vol. 11. 
 p. 108. 
 
 XLI. Be itfurtJier enacted^ That it shall become part of the 
 Corporations charter of every corporation, which shall at the present, or any 
 iect to^Le Tsl*" s^^^^^^i^g session of the General Assembly, receive a grant 
 tive authority" ^^ ^ charter, or any renewal, amendment or modification there- 
 rep eal, &c, ' of, (unless the Act granting such charter, renewal, amend- 
 ment or modification, shall in express terms except it,) that 
 every charter of incorporation granted, renewed, or modified, 
 as aforesaid, shall at all times remain subject to amendment, 
 alteration or repeal, by the Legislative authority. 
 
 A. A. 1842, p. FfioM "An Act to make Appropriations for the tear 
 S L vol 11 commencing in October, 1842." 
 
 p.' 217. 
 
 Comptroller XL That after reserving the sum of ten thousand dollars, 
 general to ap- the Comptroller General is directed to apply any balance of 
 aif th monies in the Treasury, to the purchase and extinguishment of 
 Treasury to *^® Public debt of the State, giving preference, in each pur- 
 the Public chase, to the debt the interest of which is paid from the Public 
 Debt. Treasury. 
 
 A. A. 1842, p. AN ACT TO amend An Act entitled "An Act for Ke- 
 s l vol 11 building the city of charleston," and to alter and 
 p. 234. ' extend the time and terms for the repayment of 
 Loans made by the Bank of the State of South Ca- 
 rolina, PURSUANT TO THE PROVISIONS OF THE SAID AcT, 
 AND OF A SUBSEQUENT ACT TO AMEND THE SAME. 
 
 ^^Slt^of . •^- -^^ ^ enacted, by the Senate and House of Representa- 
 City Council, ^i^es, now met and sitting in General Assembly, and by the 
 &c. ' authority of the same, That, if the assent and guaranty of the 
 
ACTS OF LEaiSLATURE. 57 
 
 City Council of Charleston be previously given and expressed, 1842. 
 as hereinafter provided, the time and terms for re-payment of v.^-v-^.^ 
 loans made by the President and Directors of the Bank of the 
 State of South Carolina, pursuant to the provisions of an Act 
 of the G-eneral Assembly of this State, entitled "An Act for 
 rebuilding the City of Charleston," ratified on the first day of 
 June, in the year of our Lord one thousand eight hundred and 
 thirty-eight, and of another Act, entitled "An Act to amend 
 an Act for rebuilding the City of Charleston," ratified on the 
 nineteenth day of December in the same year, be altered and 
 extended to the periods and for and upon the terms and condi- 
 tions following, that is to say : 
 
 1 . In each and every of the said loans, upon which the an- 
 nual interest^ insurance, taxes and other incidental expenses Extension of 
 have been or shall be fully paid, the time for the payment of time, instal- 
 the first instalment of the principal sum of the said loan shall "^^^ts, &e. 
 be extended to two years from and after the time limited and 
 specified for the payment thereof, by the condition of the bond 
 
 entered into to secure the said loan, conformably to the provis- 
 ions of the Acts of Assembly aforesaid ; and not more than 
 five pefr centum of the principal sum of the said loan shall be 
 required to be paid for the first instalment thereof ; and the 
 residue of the principal sum of the said debt shall be paid 
 by annual instalments of seven ^;er centum of the whole 
 amount of the said loan^ to be paid at the expiration of 
 the first year from and after the time herein and hereby 
 limited and appointed for payment of the first instalment ; ten 
 per centum thereof to be paid at the expiration of the second 
 year ; twelve per centum thereof to be paid at the expiration of 
 the third year ; fifteen ^:?er centum thereof to be paid at the ex- 
 piration successively of the fourth and fifth years, and eighteen 
 per centum thereof to be paid at the expiration of every succes- 
 sive year thereafter, until the whole debt be fullv paid. And t . j 
 the annual interest of each and every of the said loans, or so insurance to 
 much thereof as may from time to time remain unpaid, and also be paid as 
 the premium of insurance, in all cases where the property mort- heretofore pre- 
 gaged to secure payment of the said loan is required by the s^"^«d- 
 Acts of Assembly aforesaid to be insm-ed. and all incidental ex- 
 penses, shall be fully and regularly paid according to the provi- 
 sions of the said Acts, and the condition of the bond entered 
 into to secure payment of such loan, without any extension of 
 time or indulgence whatever. 
 
 2. No borrower, or his legal representatives or assignees, shall Notice to be 
 be entitled to the benefit of this Act, until he or they shall given by bor- 
 have given notice in writing to the President and Directors of I'owers. 
 
 the Bank of the State of South Carolina, that he or they claim 
 the benefit thereof, and assent to and accept all the terms and 
 conditions thereto annexed, which assent shall be endorsed on 
 the Bond and Mortgage of the said parties ; nor shall any bor- 1 a ]^ 
 rower of any loan or loans, under the provisions of the Acts of to befranted' 
 Assembly aforesaid, or his legal representatives, be entitled to when the pro- 
 any indulgence or extension of time for any unpaid residue of P^^'^y has been 
 the said loan or loans, where the property mortgaged to secure ^°^^ 
 8 
 
58 ACTS OF LEGISLATURE. 
 
 1842. payment of the same has been actually sold for foreclosure of 
 v,^-v-^^ such mortgage, pursuant to the provisions of the Acts of Assem- 
 bly aforesaid, and the debt has not been extinguished by such 
 sale. 
 
 3. Whenever default shall be made in the payment of any of 
 Propeity of the instalments of the principal sum of any of the said loans, or 
 defaulters to Qf the annual interest, premium of insurance, taxes or inciden- 
 be sold. ^^Y expenses aforesaid, at the times respectively limited and ap- 
 
 pointed by this Act, it shall be the duty of the President and 
 Directors of the Bank of the State of South Carolina to cause 
 the property mortgaged to secure the payment of any such 
 loan, to be sold for satisfaction of the entire debt, in the manner 
 Purchaser to ^^i^ected and provided by the Acts of Assembly aforesaid ; and 
 complain to if after any such sale made, and a conveyance to the purchaser 
 two Magis- executed, possession of the premises so sold shall be withheld 
 trates when from the purchaser by the borrower, or his legal representatives 
 ^^Kheld^'^ ^^ ^^ assignees, or by any other person or persons whatsoever, it 
 shall and may be lawful for the said purchaser, his legal repre- 
 sentatives or assigns, to complain thereof to two Magistrates of 
 the City of Charleston, whereupon it shall be the duty of the 
 said Magistrates to issue their warrant for summoning a Jury of 
 Freeholders, to inquire whether the person or persons so with- 
 holding possession of the said premises, hold the same as agent or 
 agents of the said borrower, his legal representatives or assigns, 
 or for his or their use, or if not, then at what time such person 
 or persons entered into possession of the said premises ; and 
 Magistrates to such proceedings shall be had upon the said complaint, by the 
 proceed as in ^^[^ Magistrates and Freeholders, and the Jury of Freeholders 
 ants holding^" ^^^^^ ^® summoned and organized,in such manner as is provided 
 over. ill cases of tenants holding over after the expiration of their 
 
 leases, by an Act of the General Assembly of the State, entitled 
 "An Act to afford landlords or lessors an expeditious and sum- 
 mary mode of gaining re-possession from tenants or lessees, who 
 shall hold over after the determination of their leases," ratified 
 on the nineteenth day of December, in the year of our Lord, 
 one thousand eight hundred and twelve, and by an Act to amend 
 the said last mentioned Act, ratified on the eighteenth day of 
 Maffistrates to I^^^ember, in the year of our Lord one thousand eight hundred 
 mal^ record and seventeen ; and if it shall appear to the said Magistrates 
 and issue war- and Freeholders, that the person or persons so withholding 
 rant to Sheriff, possession of the said premises, do actually hold the same as 
 agent or agents of the said borrower, or his legal representatives 
 or assigns, or for his or their use, or that such person or per- 
 sons entered into possession of the said premises after the rati- 
 fication of this Act, the said Magistrates shall make a record 
 thereof, and give judgment for the party making the complaint, 
 and shall issue their warrant to the Sheriff of Charleston Dis- 
 Duty of Sher- trict, whose duty it shall be to execute the same, commanding 
 him to put the party for whom judgment has been given as 
 aforesaid, into full possession of the said premises, and to levy 
 the expenses incurred by the investigation of the said com- 
 plaint, of the goods and chattels of the person or persons so 
 
\ 
 
 ACTS OF LEGISLATURE. 59 
 
 withholding possession as aforesaid, any law, usage or custom 1842. 
 to the contrary thereof, in any wise notwithstanding ; but if it ^.-^^v'-^^ 
 shall appear to the said Magistrates and Freeholders that Decision on 
 there is no sufficient ground for the said complaint, the same insufficient 
 shall be dismissed, and the party making such complaint shall f^^piaint 
 be condemned for the expenses aforesaid, to be levied by war- 
 rant as aforesaid, of the goods and chattels of such party : Proviso. 
 Provided, always, that the judgment aforesaidjshall conclude on- 
 ly the right to present possession, and shall not affect the 
 title of either party to the said premises, or deprive either 
 party of any remedy in Law or in Equity for establishing a 
 title to, or recovering possession of, the said premises. 
 
 II. That whenever any property mortgaged to secure pay- 
 ment of any loan made pursuant to the provisions of the Acts j^ ^° "f 
 
 rnsKiG on trip 
 of Assembly hereinbefore first mentioned, shall be sold for ^^^^^ credits 
 
 foreclosure of such mortgage, such sale shall not be made for &c. that were 
 cash, but for such portion of the price for which the same given to the 
 may be sold, as may then be actually due on the said loan, to borrower, after 
 be paid in cash, and for such credit, as to the residue, as the Salments 
 debtor would have been entitled unto for the residue of the due. 
 debt, if the part thereof then due had been actually paid ; and 
 the said residue of the purchase money shall be secured by the 
 Bond of the purchaser, with one or more good and sufficient 
 sureties, to be approved by three Commissioners to be ap- 
 pointed by the President and Directors of the Bank of the p • i r. 
 State of South Carolina and the City Council of Charleston, purchase mo- 
 and a Mortgage of the property ; which said Bond and Mort- ney, how se- 
 gage shall contain such and the same conditions, covenants cured. 
 and provisions as are contained in the Bond and Mortgage of 
 the original borrower, and are provided by the Acts of Assem- 
 bly first aforesaid, and by this Act. 
 
 III. That no part of this Act shall be of any force or effect 
 until the City Council of Charleston shall, by an Ordinance j^ - 
 
 duly ratified by the City Authorities, assent to the terms and this Act to be 
 conditions of this Act, and to the indulgence herein proposed of force till the 
 to be granted to the Debtors aforesaid, and shall guaranty the City Council 
 State against all loss and losses to arise from any of the Loans ^^^^J| ^^^^^n- 
 afosesaid, or the extension of the time and alteration of the against any 
 terms for the payment thereof, or the credit allowed on sales bss. 
 of property mortgaged to the same, provided for by this 
 Act. 
 
 AN ACT TO PROVIDE FOR THE PAYMENT OF A PORTION OF THE A. A. 1843. 
 
 PUBLIC DEBT. 11 Statutes, 
 
 260. 
 
 Be it enacted, by the Senate and House of Representatives, „ ^ f q 
 now met and sitting in General Assembly, and by the autho- ^^^eli c ^^ 
 rity of the same. That the President and Directors of the tain bonds &c. 
 Bank of the State of South Carolina shall, agreeably to their 
 proposition to that effect, contained in their annual report, de- 
 liver up to the Comptroller General, to be cancelled, all the * 
 
60 ACTS OF LEGISLATURE. 
 
 1843. evidences of Public Debt of this State, now in their possession 
 ^.^^^-w/ in Charleston, and that the said Comptroller General forth- 
 with cause the same to be cancelled. 
 Authorized to ^^ '^^^ ^^^^ President and Directors are authorized and em- 
 deliver also powered to deliver up to the said Comptroller General, to be 
 any bonds cancelled, any certificates or evidences of Public Debt of this 
 hereafter pur- gtate which they may hereafter purchase or procure, 
 chased. jjj rpjjg Comptroller General shall transfer to the Sinking 
 
 Comp Gen to ^^^^? *^^ balance of two hundred thousand dollars, now stan- 
 transfer $200,- ding on deposit in the said Bank, to the credit of the Surplus 
 000 on deposit Revenue received from the United States, upon condition that 
 F *^H ^"^^"^*^6 President and Directors of the said Bank shall be bound 
 "" ' ^' to fulfil the obligations contained in the following section. 
 
 IV. The said President and Directors of the Bank of the 
 The Bank to State shall pay and discharge the principal and interest, as 
 Ssoo 000 (and *^^ ®^™^ ^^^^^^ become due and payable, of the debt of three 
 interest) crea- hundred thousand dollars, issued in virtue of the Act of the 
 ted in 1826. General xissembly, ratified in the year one thousand eight 
 hundred and twenty-six. 
 
 The Dividends accruing from the Stock owned by the State 
 
 Dividends on in the South- Western Rail Road Bank, shall hereafter be re- 
 
 R°R B'k h^ ceived by the President and Directors of the Bank of the 
 
 appropriated. State, and shall be applied towards payment of the interest 
 
 hereafter accruing on that portion of the Public Debt created 
 
 for subscription to the capital of said Rail-Road Bank ; and 
 
 whenever such Dividends shall exceed 'the said interest, the 
 
 excess shall be applied in reduction of the principal ; and 
 
 whenever the said debt shall be finally extinguished, the said 
 
 Dividends shall be paid into the Public Treasury by the said 
 
 Rail-Road Bank. 
 
 A. A. 1843. AN ACT TO RESTORE TO EACH BRANCH OP THE LEGISLATURE, 
 ^t^mtes, ^jjg RIGHT OF ENQUIRING INTO THE FINANCES OF THE StATE. 
 
 Authority to I. Be it enacted^ by the Senate and House of Representa- 
 
 callforinfor- tives, now met and sitting in General Assembly, and by the 
 
 Bank of thT authority of the same. That either Branch of the Legislature 
 
 State, and re- shall hereafter have full power and authority to call for any 
 
 quisition to information which they may deem necessary, from the Bank 
 
 furnish it, &c, of the State of South Carolina, or the Branches thereof ; and 
 
 the said Bank and Branches are hereby required to furnish 
 
 any information called for by either branch of the Legislature. 
 
 II. Nothing in this Act contained shall imply a right to in- 
 
 Exceptions. gpect the account of any private individual, body politic or 
 
 corporate, with the Bank. 
 
ACTS OF LEaiSLATURK 61 
 
 AN ACT TO AMEND AN AcT TO PROVIDE AGAINST THE SUS- 1843. 
 
 PENSION OF SPECIE PAYMENTS BY THE BaNKS OF THIS StATE. ^^,^-v-x^ 
 
 11 Statutes, 
 
 I. Whereas, the Bank of South Carolina, and the President, ^ pif^ation of 
 Directors and Company of the State Bank, have respectively g^nk of South 
 applied to the General Assembly by their respective memo: Carolina and 
 rials, praying to be permitted to accept, as part of their res- State Bank, 
 pective Charters, the terms and provisions of an Act entitled 
 
 "An Act to provide against the suspension of specie payments 
 by the Banks of this State," ratified on the eighteenth day of 
 December, in the year of our Lord one thousand eight hun- 
 dred and forty. Be it therefore enacted^ by the Senate and 
 House of Representatives, now met. and sitting in General Bank of South 
 Assembly, and by the authority of the same. That it shall and Carolina and 
 maybe lawful for the said Bank of South Carolina, and the '^tate Bank au- 
 President, Directors and Company of the State Bank, severally ct^"^^j.ovLwi" 
 to accept the terms and provisions of the said Act, as part of of Act of 1840 
 their Charters respectively : Provided^ That the said corpora- &c. 
 tions shall respectively notify the Governor of such acceptance, 
 on or before the first day of March next. 
 
 II. Nothing in this Act contained shall be construed to The provi- 
 exempt the said Banks from the forty-first section of "An Act to sions of 41st 
 incorporate certain villages, societies and companies, and to Sec. of Act of 
 renew and amend certain charters heretofore granted, and to ^^^^' !;° . "^ 
 establish the principles on which charters of incorporation will chartersr^'^ 
 hereafter be granted," ratified on the seventeenth of December, 
 
 in the year of our Lord one thousand eight hundred and forty- 
 one ; but the provisions of the said section, and also of the Act 
 mentioned in the first section of this Act, shall be taken and 
 held as part and parcel of the charter of each corporation, 
 which shall so accept as aforesaid. 
 
 III. The Governor, upon being notified of the said accept- Discontinu- 
 ance, shall cause all legal proceedings pending against the ance of pro- 
 Bank so accepting, for the purpose of vacating its charter, to be ceedings. 
 forthwith discontinued. 
 
 IV. The proceedings which have been instituted, and are rpj^^ nroceed- 
 pending, against any other incorporated Bank within this State, i^gg against 
 in virtue of the said Act to provide against the suspension of other Banks to 
 specie payments by the Banks of this State, shall be forthwith be discontinu- 
 discontinued. ... ed forthwith. 
 
 V. If any incorporated Bank in this State which shall not 
 
 have duly accepted the terms and provisions of the said last "^^'"^ ^"^" 
 mentioned Act, so that the same shall have become part of its Banks not ac- 
 charter, shall hereafter suspend the payment in legal coin, of ceptin^ the 
 the bills or notes of the said Bank, issued by the said Bank, as provisions of 
 part of the currency or circulating medium of the State, or ^^^°jl°'*^> 
 shall suspend the payment in such coin of the moneys placed ^-^j^ 
 in the said Bank on deposit, or shall declare its determination 
 to suspend or refuse such payment, the Governor for the time 
 being shall forthwith cause legal proceedings to be instituted 
 against such Bank to vacate its charter ; but no such pwceed- 
 ings shall be prosecuted to final judgment, nor shall final 
 
62 
 
 ACTS OF LEGISLATURE. 
 
 1843. judgment for the State be entered thereon, until the expira- 
 -^N^^-^ tion of the Session of the General Assembly next succeeding 
 the institution of such proceedings. 
 
 A. A. 1843. 
 11 Statutes, 
 253. 
 
 Balance in 
 Treasury, 
 how appro- 
 priated. 
 
 From "An Act making Appropriations for the year 
 commencing in october, 1843." 
 
 XII. After reserving the sum of ten thousand dollars, the 
 Comptroller General is directed to apply any balance of mo- 
 nies in the Treasury, at the end of the last fiscal year, to the 
 purchase and extinguishment of the Public Debt of this State, 
 giving preference, in such purchase, to the debt the interest of 
 which is paid from the Public Treasury. 
 
 A. A. 1843. 
 
 11 Statutes, 
 
 262. 
 
 Office, in 
 Charleston. 
 
 Bank of the 
 State to ap- 
 poim; condi- 
 tions of Bond 
 &c. 
 
 Duties of As- 
 sayer. 
 
 AN ACT to establish the Office of Assayer. 
 
 I. Be it enacted, by the Senate and House of Representa- 
 tives, now met and sitting in General Assembly, and by the 
 authority of the same, that the office of Assayer, to be located 
 and kept in the City of Charleston, be, and the same is hereby, 
 established. 
 
 II. An Assayer shall be appointed annually, by the Presi- 
 dent and. Directors of the Bank of the State of South Carolina, 
 at their first meeting in each and every year, or as soon there- 
 after as convenient ; and the officer so appointed shall execute 
 a bond to the State of South Carolina, with surety or sure- 
 ties, to be approved by the Commissioners appointed to ap- 
 prove the sureties of public officers in Charleston District, in 
 the penal sum of five thousand dollars, and conditioned for 
 the faithful performance of his duties as Assayer ; and he shall 
 be entitled to enter upon such duties on the due execution of 
 such bond, and the filing of the same in the office of the Trea- 
 surer of the Lower Division. And the said bond shall stand 
 as a security for all gold and other metals committed to the 
 custody of the said Assayer, and shall be good and valid in 
 law, to bind his sureties for every default during the whole 
 time he shall continue in office, whether upon his original 
 election or upon re-election. 
 
 III. The duties of the Assayer shall be carefully to assay 
 all gold and other metals generality used in coinage, which may 
 be delivered to him for the purpose of ascertaining their qual- 
 ity or standard, and to stamp the fineness of the same, and if 
 
ACTS OF LEGISLATURE. 63 
 
 required, from time to time, to furnish certificates thereof to 1846. 
 the owner. ^^^-v-^^ 
 
 IV. The compensation of the Assayer shall be regulated by Compensation 
 the President and Directors aforesaid, to be paid by the per- 
 son or persons for whom any assays may be made. 
 
 V. Any vacancy occurring in said office shall be supplied 
 
 by the President and Directors aforesaid, in manner, and with Vacancies, 
 the same security, as are provided in these respects by the se- 
 cond section of this Act. 
 
 From " An Act to make Appropriations for the year A. A. 1844. 
 
 COMMENCING IN OciOBER, 1844." H Statutes, 
 
 ' 289. 
 
 XI. After reserving the sum of ten thousand dollars, the „ , 
 Comptroller General shall apply any balance of moneys in the Treasury, 
 Treasury at the end of the fiscal year, to the purchase and how appro- 
 extinguishment of the Public Debt of the State, giving pre-priaied. 
 ference, in such purchase, to the debt the interest of which is 
 paid from the Public Treasury. 
 
 From "An Act to make Appropriations for the year A. A, 1845. 
 COMMENCING IN OcTOBER, 1845." H Statutes, 
 
 ' 315. 
 
 XI. After reserving the sum of ten thousand dollars, the g^^^ ^^ j 
 Comptroller General shall apply any balance of moneys in the Treasury, 
 Treasury at the end of the fiscal year, to the purchase and ex- how appro- 
 tinguishment of the Public Debt of the State, giving prefer- pnated. 
 ence, in such purchase, to the debt the interest of which is paid 
 from the Public Treasury. 
 
 From "An Act to make Appropriations for the year A. A. 1846. 
 COMMENCING IN OcTOBER, 1846." H Statutes, 
 
 ' 356. 
 
 IX. After reserving the sum of ten thousand dollars, the 
 Comptroller General shall apply any balance of moneys in the 
 Treasury at the end of the fiscal year, to the purchase and ex- 
 tinguishment of the Public Debt of the State, giving prefer- Public debt to 
 ence, in such purchase, to those debts the interest whereof is be purchased, 
 payable at the Public Treasury. 
 
6 [ ACTS OF LEGISLATURE. 
 
 1847. F^ioM "An Act to make Appropriations for the Year 
 
 COMMENCING IN OcTOBER, ONE THOUSAND EIGHT IHINDRED 
 AND FORTY-SEVEN." 
 
 X. Upon the payment to each Stockholder of the instalment 
 New certifi- payable in January next, on the Stock issued by the State 
 cates to be is- under the Act to provide for an advance by the State on its 
 ^"®^- subscription to the Louisville, Cincinnati and Charleston Rail 
 
 Road Company, passed in the year 1839, the Comptroller 
 General shall cause the old certificates of Stock to be surren- 
 dered, and new certificates to be issued for the remaining in- 
 stalments, payable at the times appointed by the said Act ; and 
 such new certificates, together with all others hereafter to be 
 issued, shall be signed by the Treasurer of the Lower Division, 
 and countersigned by the Comptroller General; and the 
 Comptroller General shall so arrange the issue thereof, as 
 that the one office shall be a check upon the other. 
 
 XI. The Comptroller General shall take measures for ap- 
 plying any surplus, over ten thousand dollars, of the moneys 
 
 Payment of ^{^{q}^ yh^lj be in the Treasury on the first day of October next, 
 to the payment or purchase of the Public Debt, giving prefer- 
 ence to such debt as is chargable upon the Public Treasury. 
 
1838. 
 ORDINANCES 
 
 OP THE 
 
 CITY COUNCIL OF CHARLESTON, 
 
 RELATING TO THE 
 
 FIRE LOAN, 
 
 AN ORDINANCE to prevent the erection of avooden _ , „ , 
 
 ri Fassed oth 
 
 BUILDINGS, AND TO PROVIDE GREATER SECURITY IN (JHARLES- -^ ^^333 
 
 TON FROM FIRES. 
 
 1. Be it ordained by the Mayor ami Aldermen of Charles- No wooden or 
 ton^ in City Council assembled^ That it shall not be lawful to frame build- 
 build, erect, or construct, within the City of Charleston, any "^^^^^ ^® 
 wooden or framed buildings of any description. 
 
 2. Any building framed of wood, or having more wood on 
 
 the outside of the building than that required for door and i^^^shall be 
 window frames, doors, shutters, sashes, porticoes and piazzas, constructed, 
 shall be deemed a wooden building, and subject to the penal- 
 ties of this Ordinance ; and the roof of every building, and of 
 every piazza and portico, shall be covered with some material 
 not combustible, otherwise they shall be deemed each to be a 
 wooden building, and subject to the penalties prescribed by 
 this ordinance for the erection of wooden buildings. 
 
 3. If any person shall build or construct, or cause to be built pine for viola- 
 or constructed, any wooden building within the limits of thetion of Ordi- 
 city, such person shall, upon conviction before any proper tri- nance, 
 bunal, forfeit and pay to the city a fine of five hundred dollars, 
 
 and also a further sum of twenty dollars for every week dur- 
 ing which any such building shall remain erected within the 
 city contrary to the provisions of this law ; and in case the 
 said building shall not be pulled down and removed, or other- 
 wise made conformable to the provisions of this law, within 
 three months after such conviction, the person or persons so 
 convicted shall, in addition to the said penalty of twenty dol- 
 lars per week, be subject to a further penalty of one hundred 
 dollars for his, her, or their neglect, at the expiration of every 
 three months from the date of such conviction, until the said 
 building shall be pulled down and removed, or otherwise made 
 conformable to the provisions of this law. 
 
 4. Every person who shall be employed in the building or 
 construction of any building contrary to the provisions of this • 
 9 
 
66 
 
 ORDINANCES OF CITY COUNCIL, 
 
 Unfinished 
 Building's. 
 
 1838. Ordinance, shall, on conviction thereof, before a court of com- 
 v^^s/-^^ petent jurisdiction, forfeit and pay to the city the sum of five 
 Fine for being dollars for every day he may be so employed ; and if any person 
 employed on g^ employed shall have in his employ slaves or persons of color, 
 hibited.^^ ^^° ^^ ^^^^^^ forfeit and pay an additional sum of two dollars for 
 each hand for every day during which such person may be en- 
 gaged in the erection or construction of such building. 
 
 5. Every unfinished wooden building within the city, the 
 construction or building whereof shall be continued after the 
 passing of this law, shall be subject to the provisions ; and any 
 person who shall, after the passing of this law, proceed in the 
 further construction or erection of such building, or thereafter 
 cause the same to be erected or built, shall be subject in all re- 
 spects to the same penalties as are prescribed in the third sec - 
 tion of this Ordinance : and every person employed in the fur- 
 ther construction or erection of such building shall be subject 
 in all respects to the penalties prescribed in the fourth section. 
 JProvided, Iwwever^ that nothing in this clause contained shall 
 extend to any building which shall have been commenced and 
 the frame thereof erected prior to the 27th day of April last. 
 
 6. Every building hereafter erected within the city shall 
 have, between the separate tenements thereof, sufiicient brick or 
 stone partition walls, and shall be finished with sufiicient outer 
 walls of brick or stone ; and no wall of any building shall be 
 deemed sufficient unless the same shall be at least twelve inch- 
 es thick in the lower story, and eight inches thick above the 
 lower story ; and every person offending against the provisions 
 of this section shall, upon conviction thereof, forfeit and pay to 
 the city a fine of one hundred dollars, and also the further sum 
 of ten dollars for each and every month during which the pro- 
 visions of this ordinance shall remain not complied with. 
 
 7. Whenever hereafter any building already erected shall 
 be roofed or covered, it shall be roofed and covered as new build- 
 ings are hereby directed to be done ; and the owner of such 
 building and all persons concerned in roofing and covering the 
 same contrary to the provisions of this clause, shall be subject 
 to the same penalties as though the said building had been 
 newly erected or constructed. 
 
 8. None of the provisions of this law shall, during the next 
 twenty years, extend to any marsh lot within the limits of the 
 city, upon which the tide flows. Provided^ hmcever^ that at the 
 expiration of the said twenty years, all wooden buildings stand- 
 ing upon the said lots shall be pulled down or removed, by the 
 owners thereof; and the owner or owners, so neglecting to pull 
 down or remove the same, shall be subject to the same penalties 
 in all respects, as are provided in the third section of this law. 
 
 9. The City Council may, by resolution, extend permission 
 to mechanics to build and use as workshops, such temporary 
 sheds as may be necessary for the purpose of re-building the 
 burnt district, for such time and under such regulation as the 
 said Council shall deem meet. 
 
 10. It shall be the duty of the City Marshals, and they are 
 hereby strictly enjoined, to give immediate information of all 
 
 Wallsofbuild- 
 ings. 
 
 Penalties. 
 
 Roofing and 
 covering. 
 
 Marsh lots ex- 
 empted for 
 twenty years. 
 
 Temporary 
 sheds. 
 
 ■ 
 
IN EELATION TO FIRE LOAN. 67 
 
 offences against this Ordinance, and one-half of the penalties 1838. 
 recovered in each ca|e shall he paid to the Marshal, or to any v..^-v-w/ 
 person who shall inform against and prosecute any offender. Duty of City 
 
 Ratified in City Council the 8th of May, 1838. Marshals. 
 
 (Signed,) HENRY L. PINCKNEY, Mayor. 
 
 AN ORDINANCE to make such Provisions as are re- Passed 18th 
 
 QUIRED OF THE CiTY CoUNCIL, TO CARRY INTO EFFECT THE June, 1838. 
 
 Act for Re-building the City of Charleston. 
 
 Whereas, the Legislature of South Carolina have lately pass- 
 ed an Act for re-building the City of Charleston, whereby a 
 loan of two million of dollars is authorized to be made to the ^^^^ ^' 
 citizens of Charleston for the purpose of re-building that por- 
 tion of the city lately destroyed by fire ; and whereas, among 
 other things, it is provided by the said Act, that the City of 
 Charleston shall guaranty the State from any losses to arise by 
 reason of said loan to the citizens of Charleston, and as it is 
 but reasonable and proper that in a matter wherein such great 
 and lasting advantages are to be derived by the city from the 
 voluntary aid of the State, the city should indemnify the State 
 from any damage or loss, 
 
 1. Beit tJterefore ordained by the Mayor and Aldermen o/'Faith and 
 tJie City of Charleston^ in Council assembled^ That the faith funds of the 
 and funds, and other property of the City of Charleston be, ^^^y pledged 
 and they are hereby, pledged to guaranty the State of South- the^SteLfe^of 
 Carolina against any loss which may be incurred by the said South-Caro- 
 State, from or by reason of any loan which may be made to the hna. 
 citizens of Charleston under the provisions of the said Act ; 
 
 and the said City of Charleston hereby binds itself to make 
 good to the said State of South-Carolina, any and every such 
 loss. 
 
 2. That the Commissioners to be appointed by the City Commission- 
 Council under the provisions of the said Act, shall be elected ers to be elect- 
 by ballot by the said City Council, and shall remain in office ed by Council, 
 for a period of two years from the day of election. And in 
 
 case of the death, resignation or removal of either of them, the 
 said City Council shall by ballot proceed to fill the vacancy for 
 the unexpired period of the term of the former incumbent. 
 
 3. That it shall be the duty of the Commissioners so appoint- Their duty, 
 ed in behalf of the City, to make due returns to the City 
 Council of all valuations and returns which may be made by 
 
 the Board of Commissioners under the provisions of the said Act, 
 and to furnish to the said City Council a copy of every valua- 
 tion and return which may be made by the said Board to the 
 President and Directors of the Bank of the State of South- 
 Carolina, with any additional statement or report which the 
 said Commissioners may deem important to the public inter- 
 
68 ORDINANCES OF CITY COUNCIL, 
 
 1840. est ; and the said returns shall be filed in the ofiice of the City 
 v,^-v-^^ Treasurer for the information of Council.* 
 Duty of the ^- ^^ ^^^^^ ^^ *^^ ^^^^ ^^ *^^ Mayor of the City forthwith 
 
 Mayor. to give notice to all persons who have erected wooden buildings 
 
 or sheds upon any part of the district burnt by the late fire, or 
 who are in possession of the same, that the said wooden build- 
 ings must be taken down before the fifth day of June next, or 
 in default thereof that the said buildings will be taken down 
 and removed under the provisions of the said Act for rebuild- 
 ing the City of Charleston ; and in case any person shall ne- 
 glect or refuse to take down and remove such wooden building 
 before said fifth day of June, the Mayor shall forthwith xjause 
 all proper measures to be taken for abating the same as a nui- 
 sance, and for bringing to proper punishment such persons as 
 are amenable to the law for their neglect or refusal to abate 
 the said nuisance. Provided, hou-ever, that nothing herein 
 contained shall be construed to exempt from prosecution, or 
 from any punishment or penalty, any person who may have 
 violated the ordinance already passed in relation to the erec- 
 tion or construction of wooden buildings. 
 
 Ratified in Council, the 18th day of June, 1838. 
 (Signed,) HENRY L. PINCKNEY, Mayor. 
 
 Passed 11th "^-^ ORDINANCE TO AMEND THE Ordinance entitled "an 
 May, 1840. Ordinance to make such provisions as are required 
 
 OF the City Council, to carry into effect the Act 
 FOR Rebuilding the City of Charleston." 
 
 1. Be itordainedhy tJie Mayw and Aldermen of Charles- 
 ton in City Council assembled, SfC., That the faith and funds 
 and other property of the City of Charleston be, and they are 
 hereby, pledged to guaranty "the State of South-Carolina, 
 Further Dledffc^^^^^^^ ^^^^ ^^^^ which may be incurred by the State, from or 
 of guaranty by ^y reason of any loan which already has been made, or here- 
 the City Coun- after may be granted to the citizens of Charleston, under the 
 <^^^' provisions of the Act of the Legislature, passed the nineteenth 
 
 day of December, in the year of our Lord, one thousand eight 
 hundred and thirty-eight, entitled "An Act to amend an Act 
 for rebuilding the City of Charleston," and also during the 
 time within which applications may be made for loans under 
 the provisions of the Act to rebuild Charleston, as limited and 
 defined by the Act of the Legislature, passed on the twenty-first 
 day of December, in the year of our Lord, one thousand eight 
 hundred and thirty-nine, entitled "An Act to extend the time 
 d-uring which loans may be granted under the Act to rebuild 
 Charleston." To wit, until the first day of June, eighteen 
 hundred and forty-one ; and further to guaranty the State of 
 South-Carolina against any loss which may be incurred by the 
 said State, from or by reason of any loan, which already has 
 
IN RELATION TO FIRE LOAN. 69 
 
 been made, or hereafter may be granted, under the provisions 1843. 
 of the Act for rebuilding Charleston, to applicants who have ^-^-v-^^ 
 not made application for the said loan or any part thereof, un- 
 til after their improvements and buildings have been commen- 
 ced or completed ; such applicants being the parties who 
 were the owners of the land at the time of the erection of 
 such improvements, and their applications for the said loan 
 having already been made : Provided^ that every such appli-Duty of Ap- 
 cant shall substantially comply with all the conditions requir- phcants. 
 ed of an original applicant, who shall have received the same 
 number of instalments, and shall substantially give to the Bank 
 security equal to that which would have been required of such 
 original applicant : Aoid provided also^ that every applicant 
 after the passage of this Ordinance, shall strictly comply with 
 all the conditions of the Act of June 1838, and that the Bank 
 enforce the same. And the said City of Charleston hereby 
 binds itself to make good to the State of South-Carolina any 
 and all loss upon loans comprised in this Ordinance. 
 
 Ratified in City Council, the 1 1th day of May, 1840. 
 (Signed,) HENRY L. PINCKNEY, Mayor. 
 
 AN ORDINANCE to make such provisions as are re 
 quired of the city council of charleston, to carry 
 into effect the act to alter and extend the time 
 and terms for the repayment of loans made by the 
 Bank of the State of South-Carolina, pursuant to the 
 Act for. Rebuilding the City of Charleston, and a 
 subsequent Act to amend the same. 
 
 1. Beit ordained by tlie Mayoi' and Aldei'meyi of Cliarles- 
 ton^ in City Cou7icil assembled^ and it is liercbij ordained by tlie 
 autlwrity oftJic same, That the City Council of Charleston do '^.Jf^^glong^of 
 hereby signify their full assent to the terms and conditions of the^^t of '42. 
 an Act of the Gleneral Assembly of the State, ratified on the 
 twentieth day of December, in the year of our Lord one thou- 
 sand eight hundred and forty-two, entitled "An Act to amend an 
 Act entitled an Act for rebuilding the City of Charleston, and 
 to alter and extend the time and terms for the repayment of 
 loans made by the Bank of the State of South-Carolina, pursuant 
 to the provisions of the said Act, and of a subsequent Act to 
 amend the same," and to the indulgence proposed to be granted 
 in and by the said Act, to the debtors on the loans made by the 
 President and Directors of the Bank of the State of South- 
 Carolina, under the said Acts : and that the City Council 
 of Charleston do also assent to the alteration and extension of 
 the times and terms of payment of any of the bonds entered 
 into to secure the said loans, to the times and upon the terms 
 and conditions expressed and contained in the said Act first . 
 above mentioned. 
 
70 ^ OKDINANCES OF CITY COUNCIL, 
 
 1 843. 2. And he it further enacted bi/ the authxyrity aforesaid^ That 
 
 v-^^'-^^ the faith and funds and other property of the City of Charles- 
 Guaranty ton be, and the same are hereby, pledged to guaranty the State 
 tM^^^l^^^ ^^ ^^ South Carolina against all loss and losses which may be in- 
 curred by the said State, or may arise from any loan or loans 
 made by the President and Directors of the Bank of the State 
 of South Carolina, under the said Act for rebuilding the City 
 of Charleston, and all Acts amendatory of the same ; or by or 
 from the extension of the time and alterations of the terms for 
 the payment of any bond or bonds entered into to secure said 
 loan or loans ; or by or from the credit which may hereafter 
 be allowed on any sale or sales of property mortgaged to the 
 said President and Directors of the Bank of the State of South 
 Carolina, to secure any of the said loans, as provided for in 
 the said Act of the General Assembly, ratified on the twentieth 
 day of December, Anno Domini eighteen hundred and forty- 
 two. 
 
 Ratified in City Council, the 23d day of Jan. 1843. 
 (Signed,) JOHN SCHNIEELE, Mayor. 
 
 RULES AND REGULATIONS FOR CARRYING THE 
 FOREGOING ORDINANCE, AND THE ACT OF 
 1842, INTO EFFECT. 
 
 Terms of ex- ^- Original borrowers, and purchasers, or other assignees 
 tension of ere- from them, of the property mortgaged to secure such loans, 
 'dit. shall be entitled to the extension of credit provided by said 
 
 Act, on their compliance with the terms therein prescribed ; 
 but before any such purchaser, or other assignee, shall be en- 
 titled to the benefit of the said Act, he shall make proof of his 
 interest by a regular conveyance, or conveyances, of the prem- 
 ises from the original borrower, all of which conveyances must 
 have been duly recorded — which proof shall be by certificate of 
 the Recording Officer. 
 All arrears of 2. Before any extension of credit on such loans is allowed,* 
 interest, insur- the borrower, or purchaser, or other assignee from him, must 
 .ance, taxes, p^y^ in full, all arrears of annual interest due on such loans, 
 c. to be paid- ^^^ ^ premiums of insurance, taxes, and other incidental ex- 
 penses, which have been incurred up to the time when such 
 extension of credit is applied for ; and shall also subscribe an 
 indorsement on the bond, and on the mortgage, to the follow- 
 Indorsement ii^g efi"ect : "I, the within named A. B. (or C. D., assignee of 
 on bond. the within named A. B.) do hereby give notice to the Presi- 
 dent and Directors of the Bank of the State of South Caroli- 
 na, that I claim the benefit of the Act of the General Assem- 
 bly, entitled "An Act to amend an Act for rebuilding the city 
 of Charleston, and to alter and extend the time and terms for 
 the repayment of loans made by the Bank of the State of South 
 Carolina, pursuant to the provisions of the said Act, and of 
 
 i 
 
I 
 
 IN RELATION TO FIRE LOAN. ^ 71 
 
 subsequent Act to amend the same," wlaich was ratified on the 1843. 
 20th December, A. D. 1842 ; and I do hereby assent and ^.^^/-^^ 
 agree to and accept all the terms and conditions thereto an- 
 nexed, and by the said Act provided and required of all per- 
 sons claiming the benefit of the same. 
 
 In Witness whereof, I have hereunto subscribed my 
 name, this day A. D. 184. 
 
 Witness, A. B." 
 
 E. F." 
 
 3. Where the credit on any fire loan has been extended, q^ default of 
 pursuant to the provisions of the said Act, if default shall be interest, insu- 
 made in the payment of the annual interest, or of any pre- ranee, taxes, 
 mium of insurance, taxes, or other incidental expenses, or of ^^^-'^^^^ P'"*^- 
 any of the instalments of the principal, at the times respective- P^JJ^ ^° ^ 
 ly provided therefor by the said Act, the property mortgaged 
 
 to secure the same will be sold, after notice, as provided by the 
 Fire Loan Acts of June and December, 1838, in the same 
 manner as in cases where the credit has not been extended. 
 
 4. All sales for foreclosure of Fire Loan mortgages shall, „ ^ , 
 in all cases, whether the credit has or has not been extended, ^^ foreclosure 
 be made upon the following terms, to wit: So much of the of mortgage, 
 price bid, to be paid in cash, as is sufficient to satisfy the sum 
 
 then actually due on the loan secured by the said mortgage, 
 whether for principal, annual interest, insurance, taxes or other 
 incidental expenses ; the residue on such credit as the debtor 
 would have been entitled unto, for the residue of the loan, if 
 the sum then due had been actually paid ; to be secured, by 
 bond, with one or more good and sufficient sureties to be ap- 
 proved by the Commissioners appointed for the purpose, and 
 by mortgage of the property, as provided by the second section 
 of the Act of December, 1842. The bond and mortgage to be 
 examined by the Attorney General and his approval indorsed 
 on the same, and the expenses of the conveyance, as well as of 
 the bond and mortgage, to be defrayed by the 
 
 Tffg" 
 
 ^Ji^brsitS 
 
 REGULATIONS BY THE BANK, P;@' JWAgStt^ 
 UNDER THE ACTS FOR REBUILDIT" 
 TY OF CHARLESTON. 
 
 The Applicant must state, 
 
 1st. The dimensions and situation of the Lot on which the Description of 
 loan is to be made. The plan and estimated cost of the build- Lot, place of 
 ing to be erected, and he must furnish an abstract of his title Building, and 
 to the land. The abstract must show a perfect chain of title Abstract of Ti- 
 for at least twenty years last past. It must contain the names ^^^^^'^^ 
 of the parties, and the dates of any deeds, wills, or other mu- 
 niments of title, under which the applicant claims ; and so 
 much of the substance and effect thereof, as may be necessary. 
 All deeds, &c., in possession of the party, must be submitted for 
 
72 
 
 REGULATIONS BY BANK. 
 
 1840. 
 
 Certificates re- 
 quired. 
 
 1st Loan, 
 Bond, Mort- 
 gage, &c. 
 
 3d and 3d 
 Loans, &c, 
 
 Insurance. 
 
 Receipts. 
 
 Certificates 
 prior to 2d or 
 3d Loans. 
 
 Privileges of 
 Heirs, Repre- 
 sentatives, or 
 Assigns. 
 
 Expenses to 
 be paid. 
 
 examination ; and if not in possession, the office, book, and 
 page where it is recorded, must be stated. If the property 
 has been acquired, or transmitted, on a trust, or other incum- 
 brance discharged, by descent, marriage, or other extrinsic 
 fact, or facts, such facts must be set forth, and verified by affi- 
 davits. There must be affidavits of disinterested witnesses, 
 showing possession, according to title, for twenty years. 
 
 2d. Annexed to the abstract there must be certificates, that 
 there are no encumbrances aff"ecting the title of the applicant, 
 from the Clerk of the Court of Common Pleas, Clerk of City 
 Court, Clerk of Council, District Court of the United States, 
 Register in Equity, and Register of Mesne Conveyance, Sher- 
 ifi" of Charleston District, and Secretary of State. 
 
 3d. When the land has been valued, and the title approved, 
 a loan to the amount of one-half of the value of the land, will 
 be made. All parties must join in proper form in executing 
 the mortgage, and dower must be renounced. The borrower 
 may either execute a bond and mortgage, for each separate 
 loan, or for the whole amount that can be borrowed under the 
 Act. 
 
 4th. Where the borrower has executed a bond and mort- 
 gage, covering all the loans, upon application, the second loan 
 will be made to the amount of one-half of the value of the land, 
 provided the Commissioners for valuing lands are satisfied that 
 the previous loan has been expended in- the erection of build- 
 ings on the premises, in conformity with the Ordinance of 
 Council. And upon application, a third loan will be made of 
 equal amount with the first, provided the Commissoioners for 
 valuing the lands are satisfied that the two first loans have 
 been expended on the premises, in conformity with the Ordi- 
 nance of Council : and provided, also, the said Commissioners 
 do certify that the third loan is necessary to complete the im- 
 provements. 
 
 As soon as the second loan is made the buildings must be 
 insured, and the policy assigned to the Bank. 
 
 Receipts for the amounts of the second and third loans are 
 to be indorsed on the bond by the borrower. 
 
 5th. W^here the borrower prefers executing a separate bond 
 and mortgage for each loan, it will be necessary to procure cer- 
 tificates that there are no intervening liens. 
 
 6th. In case of the death of a borrower, or of a transfer of 
 the property by him, before all the loans are taken up, his heirs 
 at law, or legal representatives, or assigns, will be entitled to 
 take up the remaining loans, upon due proof of their title or 
 authority. 
 
 7th. The expense of preparing the abstract of their title, and 
 procuring certificates, and the fee for recording mortgages, 
 must be defrayed by the borrower, and the last item must be 
 paid before the bond and mortgage are prepared. But there 
 will be no charge for bond and mortgage, and other professional 
 services, in the arrangement of the loan. 
 
1813. 
 
 EESOLUTIONS. 
 
 RESOLUTION 
 
 OF THE HOUSE OF REPRESENTATIVES. 
 
 In the Hotise of RepresentaZives^ Sept. 15, 1813. A. A. and 
 Resolved^ That this House do consider that the acceptance Reps. & Res. 
 or exercise of the office of Bank Director of the Bank of the ^°^^' P- ^^\ 
 State of South Carolina, by any member of this House, is one ^^^^ °^^^" 
 of the disqualifying offices contemplated by the Constitution 
 of this State, as vacating the seat of any such member. 
 
 RESOLUTIONS, 
 
 ADOPTED BY BOTH BRANCHES OF THE 
 
 GENERAL ASSEMBLY. 
 
 In the House of Representatives^ Sept. 24, 1813. 
 Resolved.^ That the Comptroller be, and he is hereby, re- A. A. and 
 quired to ascertain whether a loan can be negociated with ?^®P^- *^^^^* 
 either or all of the Banks of the City of Charleston, for the ' ^' ' 
 sum of one hundred and thirty four thousand dollars, and foi* change tax^^as- 
 a period not exceeding six months from the tenth day ofsessedbyU.S. 
 January next, for the purpose of discharging the direct tax 
 assessed by the United States ; and to report to the Legisla- 
 ture, at their next meeting. 
 
 In tlte House of Re2^rese7ttatives, Dec. 11, 1817. Reps. &Res. 
 
 The Committee of Ways and Means, to whom was referred 1817, p. 90. 
 
 the petition from the inhabitants of Camden, praying the es- Establishment 
 
 tablishment of a Branch Bank in that place, ^eg leave to Jay J^g"an^^^^^^^ 
 
 Report J That although the President and Directors of theofLe|iskture! 
 
74 RESOLUTIONS OF LEGISLATURE. 
 
 1820. Bank have, by charter, the power of establishing Branches 
 v-^-v-^^ wherever they may think proper, (within the State,) your Com- 
 mittee are nevertheless of opinion, that it would be good policy 
 to precede the establishment of any Branch with the sanction 
 of the Legislature; this policy has been pursued, and it is be- 
 lieved with advantage ; under the influence of this policy, your 
 Committee have inquired into the probable benefit that would 
 result from the establishment of a Branch in Camden, and the 
 result of their inquiries has been a conviction that much bene- 
 fit may accrue in Camden from such an establishment, and 
 that it will not be inconvenient to the mother Bank to estab- 
 lish such a Branch, as soon as they shall have completed their 
 establishment in Greorgetown. Your Committee, therefore, 
 recommend to the House the adoption of the following Reso- 
 lution : 
 
 Resolved^ That the President and Directors of the Bank of the 
 Branch to be State be, and they are hereby, authorized and required to establish 
 established at a Branch in Camden, with such a capital, and at such time, as 
 Canaden. ^^^ ^^ think the interests of the institution will permit. 
 
 In the Sejiate^ Dec. 18, 1820. 
 
 The Committee of Conference, to whom were referred the 
 
 A. A. & R. R. Resolutions from the House of Representatives and the Senate, 
 
 1820, p. 56. QQ ^]jg subject of inspecting the books of the Bank of the State 
 
 of South Carolina, Report the following Resolution for the 
 
 adoption of both Houses : 
 
 Resolved^ That a Joint Committee of three persons from 
 tigation to be ' ^^^^ House be appointed to obtain, during the recess of tiie 
 appointed. Legislature, a general statement of the transactions of the 
 Bank of the State of South Carolina, signed by the President, 
 and countersigned by the Cashier ; the duty of which Committee 
 it shall further be, to inspect the general accounts in the books 
 of the Bank, and report whether there has been any, and what, 
 violation of the fundamental articles of the said Bank, its con- 
 dition, the goodness of its debts, and their opinion of the mode 
 of its administration, whether beneficial or otherwise. 
 
 A A & R T? In the House of Representatives ^Dec. 18, 1820. 
 
 1820, p. 88. Resolved^ Thae the President of the Bank of the State be 
 
 requested to state to this Legislature, at its next session, his 
 opinion of the expediency of increasing the capital of the said 
 Bank, and letting in private stockholders for a proportion 
 thereof 
 
RESOLUTIONS OF LEGISLATURE. 75 
 
 '. In tJie House of Representatives^ Dec. 20, 1823, '' 1823. 
 
 Resolved^ That the Comptroller General and the President ^^^^^-^ 
 of the Bank of the State of South Carolina be required to in- A. A. & R. R. 
 quire into the expediency and practicability of removing the ^®^^' P* ^^* 
 Bank of the State of South Carolina from Charleston to Co- ^"^^^^/e- 
 lumbia, with the view of ultimately establishing, so soon as va? of^a^nk^to 
 may be expedient, Branches at Cheraw and Hamburg ; and Columbia, 
 that they be required to report separately thereon, at the 
 meeting of the ensuing Legislature, taking into consideration 
 the effect which would be thus produced upon the currency of 
 the interior of the State. 
 
 In the Senate^ Nov. 26, 1823. a A &R R 
 Resolved^ That it shall be the duty of the President of the i823 p. 116. ' 
 Bank of the State of South Carolina to attend at Columbia, President to' 
 during each and every session of the Legislature, for the pur- attend session 
 pose of giving such information relating to that institution, as of Legislature, 
 may be required of him. 
 
 In the House of RepresefUatives, Dec. 18, 1824. 
 Resolved, That Henry Deas, Alfred Huger, William "Wash-A A &R R 
 ington, Benjamin F. Dunkin, and William Rouse, be, and 1824, p. 127. ' 
 they are hereby, appointed a Committee of Inspection for the Committees of 
 principal Bank of this State at Charleston ; and David R. Inspection. 
 Evans, Saunders Glover, Christian Bookter, Thomas W. Glo- 
 ver, and John Caldwell, a Committee of Inspection for the 
 Branch Bank at Columbia ; and James S. Deas, Evan Ben- 
 bow, Thomas Lang, F. L. Kennedy, and Nathaniel Barber, a 
 Committee of Inspection for the Branch Bank at Camden ; 
 and Thomas P. Davis, Stephen D. Miller, R. A. Taylor, Jos. 
 W. Alston, and John Porter, a Committee of Inspection for 
 the Branch Bank at Georgetown, agreeable to the provisions 
 of the Act to alter and amend the Charter of the Bank of this 
 State, passed at the present Session. 
 
 In the House of Represefitatives, Dec. 12, 1825. 
 Resolved, That at each session of the Legislature, a Joint A. A. & R. R. 
 Committee of the two Houses shall be appointed, to nominate 1825, p. 113. 
 suitable persons as Directors of the Bank of the State of South Committee 
 Carolina, and the names of pei:sons recommended by them, to nominate 
 shall.be reported as early as possible in the session j for the I^i^^^to^s. 
 
76 RESOLUTIONS OF LEGISLATURE. 
 
 1825. consideration of the members, at least six days before the 
 election. 
 
 Resolved^ That the Committee appointed by the Legislature 
 to examine the state of the Bank and its "Branches, shall be 
 members of the Joint Committee, to which such other mem- 
 bers of each branch of the Legislatuee shall be added, as the 
 houses respectively shall deem it expedient. 
 
 In the House of Representatives, Dec. 12, 1825. 
 Resolved, That so much of the tenth section of the original 
 1825 p 114 ^^* ^^ incorporation of the Bank of the State of South Caroli- 
 Loans on na, be so far altered as to limit the loaifs on mortgage of real 
 mortgages, estate to the sum of ten thousand dollars, instead of two thou- 
 sand dollars, under the same conditions as are now established 
 by law. 
 
 Resolved, That every public officer of this State who is by 
 Deposits of law directed to deposit for safe keeping the monies he may re- 
 PublicOfficers ceive in the Bank of the State of South Carolina, shall lodge 
 the same, not in his private name, but in his official name, and 
 with the title of the case or cases under which the monies were 
 received ; and shall exhibit the Bank book of such entries 
 when required by any of the parties interested therein, under 
 the same penalties as now attach for failure to deposit public 
 monies, under the 51st section of the Act of 1812, establishing 
 the Bank of the State. 
 
 Resolved, That the Sheriff of the City Court of Charleston 
 
 Deposits of shall weekly, or monthly, deposit, for safe keeping, the monies 
 
 City Sheriff of he may receive in his official capacity, in the Bank of the State 
 
 Charleston. Qf gouth Carolina only, in the same manner as the Sheriff of 
 
 Charleston District is now by law required to do. 
 
 Resolved, That the Joint Committee on the principal Bank 
 be directed to draft a bill to carry the foregoing Resolutions 
 into effect. 
 
 In tJie Senate, Dec. 13, 1825. 
 
 Resolved, That the Comptroller General do report to the 
 
 ^2^" ^m^' ■^^gi^l^*^^^? ^^ i^s ^^^* session, a statement exhibiting the 
 
 ' ^' ' condition of his department on the 30th September, 1826; 
 
 Coni'^Gen on ^^®"^i^g? ^n the one side, all the debts due by the State, of 
 
 finances of every nature and kind whatsoever — the particular nature of 
 
 State. the different items — ^when contracted and for what purpose. 
 
 On the other, all the money in the Treasury, and available 
 
 stock and funds, including the Bank of the State of South 
 
 Carolina, and claims against the United States — accompanied 
 
EESOLUTIONS OF LEGISLATURE. 77 
 
 "by such remarks as may be necessary to explain the statement, 1826. 
 
 and to show the true condition of the debts of the State, and v^^v-^^ 
 its means of payment. . 
 
 In tJw Semite, Dec. 8, 1826. A. A. & R. R. 
 Resolved, That Committees be appointed to join such Com- ^®^^' P- ^^• 
 mittees as may be appointed by the House of Representatives, Investigating 
 to examine into the affairs and situations of the principal Bank 
 and its Branches, in conformity to the requisitions of an Act 
 passed on the 18th of December, 1824. 
 
 In the House of Representatives, Dec. 4, 1 827. -^- -A- 1827, p. 
 The special Committee appointed and instructed by this '' . 
 House to meet a special Committee on the part of the Sen- g ^®^ ^® '^' 
 ate, on the presentment of the Grand Jury of Kershaw dis- 
 trict, and the memorials of Sumter and Kershaw, relative to 
 the embarrassed and distressed situation of the venerable pa- 
 triot. General Thomas Sumter, beg leave respectfully to Re- 
 port, That they have had the same under consideration. It 
 would be doing injustice to the feelings of this House, to sup- 
 pose it necessary to urge, by any argument, the adoption of 
 their recommendation. All are well acquainted with the pa- 
 triotism, the services, the sacrifices, the lofty and itntiring gal- 
 lantry, of this Revolutionary Hero, this last bi-illiant remnant 
 of perilous times, affording us this opportunity of exhibiting 
 the gratitude of a grateful people, and soothing and calming 
 the last moments of a public benefactor. He remembered his 
 country in her darkest hour ; his country ivill not forget him. 
 Your Committe, as I have said, believing it unnecessary to 
 urge any of these recollections, have thought proper, however, 
 to exhibit to your view a few of the facts made known to them, 
 and which do not appear on the face of the memorials. The 
 money called for to effect this relief, has been already loaned 
 by the Bank of the State of South Carolina. The debt is am- 
 ply secured by mortgage and judgment on real and personal 
 property ; but it is known to all, the unparallelled difficulties 
 of the times, and although the property mortgaged is more 
 than doubly sufficient, still it is believed that were the Bank 
 to press its demands, it would leave the object of our grati- 
 tude and affection, at the age of ninety, in absolute want. The 
 officers of that institution, with a feeling highly creditable to 
 them, are disposed, (as we are informed,) to grant all the in- 
 dulgence consistent with their duty and honor ; but indulgence 
 cannot be longer extended without legislative sanction. Gen. 
 Sumter, with that lofty feeling of independence which has al- * 
 
78 RESOLUTIONS OF LEGISLATURE. 
 
 1828. ways characterized him, is not 9ww jovly petitiwwr, nor is he 
 ^-^^^-w aware of the measure proposed for his relief ; it is the sponta- 
 neous burst of gratitude of a whole community, in beholding a 
 great and good man in adversity, a public benefactor, the 
 "Grame Cock" of the Revolution, sinking down with sorrow to 
 the grave. Your Committee, impressed with these considera- 
 tions, unaninKnisly recommend the adoption of the following 
 Resolution : 
 
 Resolved^ That the President and Directors of the Bank of 
 the State be instructed to indulge General Sumter during his 
 life-time, on his debt to the Bank, free of interest, from this 
 time, taking such steps as may be necessary to secure the ulti- 
 mate payment of said debt. 
 
 A. A. & R. R. -^^ ^^^ House of Representatives^ Dec. 16, 1828. 
 
 1828, p. 61. Resolved.^ That Joint Committees, to consist of four on the 
 
 Investigating P^^^ ^^ *^^^ House, and two on the part of the Senate, be ap- 
 Committees. pointed to examine the condition of the Bank of the State 
 and its branches, whose duty it shall be to report thereon at 
 the next session of the Legislature. 
 
 The Committees appointed under the above Resolution, 
 are: 
 
 On the part of the Senate — for Charleston, Messrs. I' On 
 and Smith : for Columbia, Messrs. Hampton and Hart : for 
 Camden, Messrs. Benbow and J. S. Deas : and for George- 
 town, Messrs. Flagg and Witherspoon. 
 
 On the part of the House of Representatives — For Charles- 
 ton, Messrs. R. B. Smith, Mintzing, and A. Black ; for Co- 
 lumbia, Messrs. Butler, Waddy Thompson, and Player ; for 
 Camden, Messrs. Gee, Dugan, and Richardson: and for 
 Georgetown, Messrs. Coggeshall, Hemmingway, and Pringle. 
 
 A A & R R IntJie House of Representatives^ Dec. 20, 1828. 
 
 1828 p 60 Resolved^ That the Committees who were appointed to ex- 
 
 ' amine into the aifairs of the Bank of the State of South Caro- 
 
 ties and b\ ^^^^' ^^ ^^P^rt the number of officers of said Bank and its se- 
 
 ries'ofOfficers"^^^^^ ^^^^^^^S) the duties of those officers respectively, and 
 
 in proportion ' the amount of their salaries, and the proportion that those 
 
 to other salaries bear to officers of the like kind in the other Banks of 
 
 anks. ijj-g gtg^^g . ^jj^ j^^gQ^ ^jjg proportion in number of officers 
 
 with the other Banks of this State. 
 
 I 
 
RESOLUTIONS OF LEGISLATURE. 79 
 
 Inthe Se7iate, Dec. 15, 1831. 1831. 
 
 Resoevecl, That the President of the Bank of the State of v-.^-v-^^ 
 South Carolina be permitted to leave the City of Charleston A. A. & R. R. 
 for the months of August and September. ^|1' PP- ^^' 
 
 President al- 
 lowed to leave 
 
 Charleston in 
 
 Aug. & Sept. 
 
 I 
 
 M tlie Senate, Dec. 17, 1834. 
 Resolved, That in case the health of the President of the A. A. &R.R, 
 Bank of the State of South Carolina should require it, that he 1834, p. 43. 
 have leave of absence from the State, for a period of four Leave of ab- 
 months, during the ensuing summer. sence to the 
 
 Jtr resident. 
 
 In the House of Representatives, Dec. 19, 1838. A.A. &R. R. 
 Resolved, That the President and Directors of the Bank of 1838, p. 115. 
 the State of South Carolina be authorized and requested to 
 take such measures as in their judgment may be deemed pro- 
 per, to preserve at par, throughout this State, the bills which 
 may be issued by any Bank within its limits.* 
 
 In tlie Senate, Dec. 16, 1839. . a &RR 
 The Committee on Finance and Banks, to whom was refer- 1339 ' 53 ' 
 red a Resolution requiring the President of the Bank of the 
 State of South Carolina to report annually the indebtedness 
 and responsibilities of the officers of the Bank of the State of 
 South Carolina, and its Branches, report : That they have at- 
 tentively considered the said Resolutions, and recommend that 
 all the words after the word resolved, be struck out, and the 
 following substituted : 
 
 Resolved, That hereafter it shall be the duty of the Presi- President to 
 dent of the Bank to set forth, in an annual private report to "^^^^r^ ^^JI 
 the Senate and House of Representatives, the indebtedness annually, of 
 and responsibilities of the several Directors with the said Bank, the indebted- 
 for the past year, brought down to the first day of each session ness of the 
 of the Legislature. Directors. 
 
 In the House of Representatives, Dec. 18, 1840. a A «fcR R 
 The Committee of Ways and Means, to whom was referred a 18*40 p. 62. 
 Resolution of Inquiry, as to the expediency of calling in d pro- 
 portion of the Bonded Debt due the Bank of the State, respect- 
 
 * For accompanying Report, see post. • 
 
80 RESOLUTIONS OF LEGISLATURE. 
 
 1840. fully report, That they have duly considered the same, and 
 v^^-v-%-^ they recommend the adoption of the following Resolutions, in 
 Bank to call in the stead of that referred to them. 
 
 Bonded Debt j Resolved^ That in the opinion of this Legislature, it is 
 
 re^pirt thi expedient the President and Directors of the Bank of the State 
 
 ' should call in the Bonds held by the Bank, and which are 
 
 past due, as speedily as the circumstances of the country, and 
 
 of the individual debtors, will permit. 
 
 2. Resolved^ That the President of the Bank make a Re- 
 port to the Legislature, at the next session, exhibiting, in sepa- 
 rate classes, the various amounts of Bonded Debt which have 
 remained unpaid for one, two, three, and more years. 
 
 In tlie Senate, Dec. 8, 1840. 
 Resolved, That the President of the Bank of the State 
 1840 ' 98 ^^ South Carolina be requested, as soon as practicable, to re- 
 ' ^' ' port to this Senate the private debts and liabilities of the Di- 
 President to rectors of the Branches of the Bank of the State of South 
 debts &c^^of Carolina, at Columbia and Camden, whether such debts and 
 Directors of liabilities be to the principal Bank or any of its Branches. 
 Branches at 
 Columbia and 
 Camden. 
 
 In the House of Representatives, Dec. 15, 1840. 
 
 A. A. & R. R. Resolved, That the following Committees be appointed to 
 
 1840, p. 101. examine and inspect the condition and affairs of the principal 
 
 Investigating Bank of the State of South Carolina, and the Branches of said 
 
 Committees, Bank, viz. : Messrs. B. F. Hunt, Echard, and Middleton, of 
 
 ^' the House of Representatives, and Messrs. Quash and Felder, 
 
 of the Senate, a Committee of inspection for the principal 
 
 Bank, in Charleston : Messrs. Herndon, Pope, and Adams, of 
 
 the House of Representatives, and Messrs. Witherspoon and 
 
 Boozer of the Senate, a Committee of Inspection for the 
 
 Branch Bank in Columbia ; and Messrs. Woodward, E. G. 
 
 Palmer, and Chesnut, of the House of Representatives, and 
 
 Messrs. Gregg and Buchanan, of the Senate, a Committee of 
 
 Inspection for the Branch Bank at Camden : 
 
 That the Committee to examine the principal Bank of 
 Charleston, do report the number of officers of said Bank, the 
 duties of those officers respectively, the amount of their sala- 
 ries, and the proportion those salaries bear to the duties and 
 salaries of the officers of the like grade in other Banks ; also, 
 the proportion such officers bear to the like officers and duties 
 in other Banks ; and, also, the capital of the said several 
 Banks. 
 
RESOLUTIONS OF LEGISLATURE, 81 
 
 In the House of Representatives^ Dec. 18, 1840. 1841. 
 
 Resolved^ That the President of the Bank of the State of ^^^-v-^ 
 South Carolina be directed to have compiled and published, ^- A. & R.R. 
 in pamphlet form, all Acts and clauses of Acts, and all Reso- president to 
 lutions, passed and adopted by the Legislature, in relation to have the Acts, 
 the said Bank and Branches thereof ; and that he do cause a Resolutions, 
 sufficient number of copies to be placed on the tables of the &c-,. of the 
 Members of both Houses, at the beginning of the next session, p^f/fg^ed^ 
 
 In the Senate, December', 11, 1841, 
 The committee on Finance and Banks, to which was refer- R. R. 1841. 
 red the memorial of the Louisville, Cincinnati and Charles- P; 119- 
 ton Rail Road Company, praying to be permitted to ^^^^el J^^^^%j^^ 
 certain bonds, payable in London, and to substitute others Bonds from 
 made payable in Charleston, respectfully report : That they foreign mar- 
 have had the same under consideration, and are satisfied that ket approved, 
 the bonds specified in the memorial, were properly withdrawn 
 from the foreign market, under the depreciation then and now 
 existing. That the responsibility of the State, under her 
 guaranty of the said bonds, will not be increased by such a 
 transfer of indebtedness, from a foreign to a domestic creditor, 
 but on the contrary, that the trouble and expense* of trans- 
 mission of the annual interest and instalments of principal, 
 as the same may fall due, will be superceded by granting the 
 privilege asked for in the memorial, to the extent, at least, of 
 the amount proposed to be transferred. Your committee 
 therefore recommend that the following resolution be adopt- 
 ed, viz : 
 
 Resolved, That the Comptroller General be, and he is here- comptroller 
 by, authorized and required to cancel (on the same being pre- General to 
 sented to him for that purpose) twenty-one (21) bonds of the cancel certain 
 Louisville, Cincinnati and Charleston Rail Road Company, Bonds, and 
 numbered from 125 to 145, both included, of five hundred ''^^^'^^^ °'^^'^- 
 pounds sterling each, and made payable, under the guaranty 
 of the State, at the house of Palmers, Makellop, Dent & Co., 
 London ; and that he do, in conformity with the directions of 
 the Act of one thousand eight hundred and thirty-seven, en- 
 titled " An Act to lend the credit of the State, to secure any 
 loan which may be made by the Louisville, Cincinnati and 
 Charleston Rail Company, and for other purposes," indorse 
 a similar number of the same denomination, drawing five (5) 
 per cent, interest, at four shillings and six pence to the dollar, 
 made payable at the South-western Rail Road Bank in 
 Charleston. 
 
 n 
 
82 
 
 RESOLUTIONS OF LEGISLATURE. 
 
 1 84 L In tJie Senate, Decembe)- 8, 1841. 
 
 ,^v-^^ Resolved, That the President of the Parent Bank of the 
 
 Bank of the State be authorized to employ some fit and com- 
 petent person to recover, if possible, the reports which are 
 missing, to make an Index, and in other respects to perfect 
 have the Bank ^^^ complete the compilation relative to the condition and 
 compilation management of the Bank and its branches ; provided the 
 completed. compensation allowed does not exceed one hundred dollars. 
 
 R. R. 1841, 
 p. 124. 
 President of 
 the Bank to 
 
 R. R 1841, In the Seriate, JDeceniber 1 7, 1 84 1. 
 
 President and Resolved, That in the opinion of this Legislature, the Pre- 
 
 Directors not sident and Directors of the Bank of the State should not, di- 
 
 to indorse for rectly or indirectly, indorse for each other, 
 each otlier. 
 
 R. R. 1841, 
 p. 126. 
 
 Suspension 
 condemned, 
 &c. 
 
 M the House of Representatives, December 11, 1841. 
 
 1. Resolved, That a suspension of specie payments by the 
 Banks, is to be deprecated as an evil, destructive of the best 
 interests ^of the State, and that it is the duty of the Legisla- 
 ture to prevent, if possible, its recurrence, by the exercise of 
 all lawful and constitutional means. 
 
 2. Resolved, That a due subordination to the laws, of every 
 class of citizens, is an essential feature of Republican Gov- 
 ernment ; that a claim to exemption from Legislative authori- 
 ty, by any class, is contrary to the true theory of our Govern- 
 ment; and if admitted, establishes, within the State, an aristoc- 
 racy irresponsible to the law. 
 
 3. Resolved, That the Bank of the State, the South-western 
 Rail Road Bank, the Planters' and Mechanics' Bank, and the 
 Union Bank, deserve the confidence and support of the peo- 
 ple, for their co-operation with the State, in promoting those 
 measures which have been deemed essential to the public wel- 
 fare. 
 
 4. Resolved, That this Legislature approves the course 
 adopted by his Excellency the Governor, in relation to the 
 Planters' and Mechanics' Bank, and the Union Bank, as in 
 accordance with the spirit of the Act of 1840 ; that for the 
 reasons assigned by the Attorney General, the Bank of George- 
 town be discharged from any further proceedings — and that 
 the Governor be requested to carry out such measures as he 
 may deem expedient, for the final disposition of the cases 
 against the other Banks. 
 
RESOLUTIONS OF LEGISLATURE. 83 
 
 In tlie House of Representatives^ Dtc. 13,1841. 1841. 
 
 Whereas, The committee appointed at the last session of n,^-v-^^ 
 the Legislature to investigate the affairs of the Bank of the R- R. 1841, 
 State of South Carolina, have made their report, and laid the P- ^^'^• 
 same before this body. JebTof clr- 
 
 And whereas, the said committee have reported, amongst ^j.^jjQj^g ^^ 
 other things, that " on the large loans to corporations, which sums at agen- 
 are but few, your committee had no means of estimating the val- cies of Ham- 
 ue of the real security with accuracy, but the more extensive ^^^S ^"^ 
 acquaintance of the members with the particulur property, ^^"^^^ 
 will enable them to do so." 
 
 And whereas, the said committe have reported further, 
 that " the amount of the agencies only appeared by the en- 
 tries — and how much of these sums the Hamburg and George- 
 town agencies will realize, your committee had no means of 
 estimating, and cannot, therefore, say that these amounts will be 
 positively available, to meet the liabilities of the Bank." 
 
 Be it therefore Resolved^ That the President of the said 
 Bank do report to this Legislature, without delay, the amounts 
 of the debts owing by incorporations to said Bank ; when pay- 
 able ; when created ; what security, if any ; and whether the 
 security upon any of them has been changed or released ; 
 and every other matter necessary to put the Legislature in 
 full possession of the real condition of these debts. 
 
 Resolved^ That the said President do also report to this 
 Legislature, without delay, all the information in his power, 
 relative to the sums at the agencies of Hamburg and George- 
 town, so as to exhibit the true condition of these debts. 
 
 In the House of Representatives^ Bee. 9, 1842. r r 1342 
 The committee of Ways and Means, to whom was referred p. 63. 
 the report of the Commissioners appointed under the Act for Thanks to the 
 re-building the city of Charleston, have duly considered the Coirimission- 
 same, and respectfully recommend the adoption of the follow- int Charles 
 ing resolution. ton. 
 
 Resolved^ That the Commissioners who have served the 
 country under the Act for re-building the city of Charleston, 
 deserve the thanks of their fellow-citizens, for the fidelity and 
 disinterested perseverance with which they have discharged 
 the duties entrusted to them. 
 
 In tlw Senate, Dec. 16, 1842. 
 Resolved, That the following committees be appointed, to ^\S; ^^^^' 
 examine and inspect the condition and affairs of the princinal ?' . 
 Bank of the SUte of South Carolina, and the branches of s^id CommTtS^ 
 
84 RESOLUTIONS OF LEaiSLATURE. 
 
 1842. Bank, viz: Messrs. Grimball and Elfe, of the Senate, and 
 y^^.,^..^^ Messrs. Carn, Frost and Hibben, of the House of Represen- 
 tatives, a committee of Inspection for the principal Bank in 
 Charleston ; Messrs. Moses and H. H. Thompson, of the Sen- 
 ate, and Messrs. E. Gr. Palmer, Jamison and Arthur, of the 
 House of Representatives, a committee of Inspection for the 
 Branch Bank in Columbia ; and Messrs. Dargan and Hanna, 
 of the Senate, and Messrs. Dickerson, Blakeney and Manning, 
 of the House of Representatives, a committee of Inspection 
 for the Branch Bank at Camden. 
 
 In tJie Se?iate^ Dec. 9, 1842. 
 Resolved, That hereafter it shall be the duty of the Presi- 
 R. R. 1842, dent of the Bank of the State to set forth, in his annual pri- 
 p. 107. vate report, a statement of the indebtedness and responsibili- 
 
 Itadebtedness, ^j^g q£ ^j^^ several Directors with the said Bank, o?t tJi£ first 
 j.Qj.g ' day of eo£h month in the past year, continued down to the 
 
 first day of each session of the Legislature. 
 
 Resolved, That the President and Directors of the Bank of 
 Profits and ex- the State shall, with their annual report, furnish the Legis- 
 pensesofthe Mature with an additional statement, setting forth on the one 
 ^" ' side, the gross amount of profits made, arranged under 
 
 the separate heads from which they shall have been derived ; 
 and on the other, the items of contingent and other expenses 
 of the Bank and its branches, appropriately classified, togeth- 
 er with such other items as shall have been charged against 
 the profits of the Bank. 
 
 ^ In tJie House of Representatives, Dec. 15, 1843. 
 
 p 2^)0 * 1. Resolved, That the system of borrowing money upon the 
 
 public faith, for the purpose of lending out the same to indivi- 
 duals, is unsound in principle and dangerous in practice. 
 
 2. Resolved, That the policy pursued by the Bank of the 
 State, during the past year, in calling in its funds and purcha- 
 
 Purchasing ging the Public Debt, is approved by this General Assembly, 
 debt^"^^^^ and that the same policy should be steadily persevered in, un- 
 til all the public debt, incurred for capital of the said Bank, 
 shall be withdrawn and extinguished. 
 
 3. Resolved, That in the opinion of this General Assembly, 
 it is inexpedient to prescribe the details of any plan by which 
 this result shall be effected ; but that it is wiser and more 
 practicable to declare distinctly the course of policy which the 
 public interests require, and leave to the President and Direc- 
 tors of the Bank the responsibility and charge of devising and 
 executing the proper measures to effect these results. 
 
 I 
 
RESOLUTIONS OF LEGISLATURE. 85 
 
 4. Resolved^ That this General Assembly, having now defi- 1843. 
 nitely settled and declared that course of policy which it deems v,^-v-^-/ 
 for the public good, the President and Directors of the Bank 
 
 are hereby enjoined to adopt measures for carrying out the 
 same, as speedily as may be consistent with the faith of the 
 State, the prudent management of the Bank, and the safety of 
 the public interests. 
 
 5. Resolved^ That the said President and Directors shall, in 
 their annual Report, inform the General Assembly of such 
 measures as they shall, from time to time, have adopted, for 
 carrying out the policy indicated in the foregoing Resolutions.* 
 
 IntJie Senate^ Dec. 18, 1843. p^ p jg^3 
 Resolved^ That the Special Reports of the President of the 155.' 
 Bank, and of the Comptroller General, be printed and bound 
 with the Acts and other Reports of this Legislature. 
 
 liitJie Senate^ Dec. 18, 1844. r. r, 1944, p. 
 Resolved^ That the Senate approve of the determination of 174. 
 the Bank to enforce the judgment against the Nesbit Manu- 
 facturing Company, and bring the transaction to a conclusion. 
 Resolved^ That should a new Company be formed and pur- 
 chase the Nesbit Works, together with the appurtenances ne- 
 cessary to carry on the business, the President and Directors 
 of the Bank be requested to loan the said Company the amount 
 (including interest) now due by the Nesbit Manufacturing 
 Company, for the term of ten years, upon the following condi- Nesbit Manu- 
 tions : Provided^ the Bank realizes the whole amount due by facturing 
 the said Company, by the sale of its property and its other se- Company, 
 curities. And provided further, that the new Company, to 
 which the loan is granted, shall pay, on the first day of Janua- 
 ry in each year, for five years, the interest on the amount loan- 
 ed, at the rate of seven per cent, per annum, and then pay the 
 principal and interest in five equal annual instalments. And 
 provided further, that the said new Company shall give such 
 security as shall be approved of by the President and Directors 
 of the Bank.* 
 
 In the House of Representatives., Dec. 13, 1845. r. r. 1945 p. 
 Resolved^ That the Proxies who represent the State in the 132. 
 South Carolina Rail Road Company, be instructed to insist 
 
 * For accompanying Report, see post. 
 
86 RESOLUTIONS OF LEGISLATURE. 
 
 1845. that a Sinking Fund or some other means be provided by the 
 v^^v**^^ Company, for extinguishing the debt guarantied by the State, 
 and that immediate steps be taken to effect that object.* 
 
 Inthe House of Representatives^ Dec. 13, 1845. 
 The Committee of Ways and Means, to whom was referred 
 ^' -^'q?*^" P'the Report of the Comptroller General, as to so much thereof 
 as relates to the application to be made of the dividends from 
 D* "dends f *^^ South Carolina Railroad Company, respectfully Report : 
 S.C.R.R.Co. That in their opinion, the most advisable disposition which can 
 be made of these dividends, is toredem the public debt, and they 
 therefore recommend the adoption of the following Resolution : 
 Resohed^ That the Comptroller General do apply the divi- 
 dends received, and to be received, from the South Carolina 
 Railroad Company, towards the extinguishment of the Public 
 Debt, giving preference in such extinguishment to the debt 
 the interest whereof is charged upon the Public Treasury. 
 
 In the Se9mte,Dec. 16, 1846. 
 Resolved, That the President of the Bank of the State of 
 R. R. 1846. p. South Carolina do cause to be published, in pamphlet form, a 
 203. ng^ edition of the Laws and Documents relating to the Bank, 
 bringing the publication down to the latest period before pub- 
 lication. 
 
 In the House of Representatives, Dec. 10, 1846. 
 R R 1846 p Resolved, That the President of the Bank of the State of 
 207. South-Carolina furnish, for the information of the Legislature, 
 the monthly statement of the indebtedness of all the Directors 
 of said Bank, for the present year. 
 
 In the Senate, Dec. 1 846. 
 1. Resohed, That it would be highly unwise and inexpedient 
 R. R. 1846. p. to abolish the Bank of the State, 
 
 49- 2. Resolved, That when the State of South Carolina pledg- 
 
 ^^"h ^^^^^ ^^ *^® profits and capital of the Bank to her creditors, as a 
 ished ^&c security for money borrowed, she did so in honesty of purpose 
 ' * and good faith. 
 
 3. Resolved, That the Bank of the State cannot be abolish- 
 ed directly, nor its business, stability and prosperity undermi- 
 ned by indirection, without a violation of good faith, and dis- 
 honor to the State, unless the holders of the Stock of the State, 
 
 * For accompanying Report, see post. 
 
RESOLUTIONS OF LEGISLATURE. 87 
 
 for which it is pledged as a security, be first paid, or their con- 1847. 
 sent obtained therefor. ^^^i^v-^i.^ 
 
 4. Resolved^ That the exposure of the names and accounts 
 of its debtors, would be in bad faith to them — in violation of 
 the charter, and would undermine its business, prosperity and 
 stability, and be, therefore, against the interests of the State, 
 and a violation of the most solemn pledges to the public cre- 
 ditors.* 
 
 In the House of Representatives^ Dec. 16, 1847. R. R. 1847. 
 
 The Committee of Ways and Means, to whom was referred 
 the Report of the President and Directors of the Bank of the 
 State, respectfully report : That the Bank has suggested the xime of pay- 
 expediency of taking measures to advance the periods appoint- ment of public 
 ed for the payment of the Public Debt, incurred under the Fire debt, proposed 
 Loan Act, and of causing it to be paid in instalments of about ^^ ^® changed. 
 $100,000 annually. Your Committee highly approve this sug- 
 gestion, and would recommend that measures be promptly ta- 
 ken to ascertain whether it be practicable. The great advan- 
 tage which the State would derive from such a change, is that 
 instead of being compelled to consolidate and keep at risk the 
 profits of several years derived from the Bank, the same would 
 be at once applied as fast as they accrue, and the State 
 would be disburthened of its debt at a much earlier period, 
 and with less derangement to its financial concerns. Of course 
 such a change could not be made without the consent of the 
 Bondholders ; and as the bonds are valuable in proportion to 
 the length of time for which payment is deferred, the change 
 could only be effected by offering a compensation in the shape 
 of an increase of interest. How great this increase ought to 
 be, is a question for the exercise of a sound discretion. If we 
 were to undertake to specify a limit, the creditor would natu- 
 rally raise his demand at once to that limit ; unless he should 
 think the limit too low, and then he would simply decline the 
 negotiation. So that the only mode of effecting any thing, 
 would be to entrust the matter to some one who could see the 
 parties and treat with them personally. 
 
 Such a person could be better selected and employed by the 
 Bank, than in any other way. It would only be necessary to 
 instruct them, that inasmuch as the charter of the Bank will 
 expire before the period fixed for the payment of the Bonds, in 
 any arrangement which they may make nothing shall be done 
 which shall trammel the General Assembly, in voting upon the 
 question of a renewal of the charter. 
 
 Your Committee therefore recommend the adoption of the 
 following Resolutions: 
 
 Resolved^ That the General Assembly deem it an object of 
 
 * These Resokitions are of the Senate alone. For accompanying Re- 
 port, see post. 
 
88 
 
 RESOLUTIONS OF I.EGISLATURE. 
 
 1847. great public interest, that the Public Debt should be extin- 
 -^-v-"w^ guished at the earliest period possible, and they approve the 
 recommendation of the President and Directors of the Bank of 
 the State, that measures should be taken, with the consent of 
 the public creditor, to advance the periods, and lessen the in- 
 stalments, now prescribed for payment thereof. 
 
 Resolved^ That it is expedient to break the heavy instal- 
 ments of $500,000, now payable at fixed periods, into instal- 
 ments of $100,000, payable annually, to commence in January, 
 1853, as proposed by the Bank, if the same can be done without 
 an unreasonable increase of the annual interest. 
 
 Resolved, That the President and Directors be authorized 
 and requested to ascertain the terms upon which the proposed 
 arrangements can be effected, and to carry out the same in such 
 manner as they may deem expedient, within the limitations 
 suggested in this Report. 
 
 IntJie Senate, Dec. 17, 1847. 
 Resolved, That the President and Directors of the Bank of 
 R. R. 1847, the State of South Carolina report in their next, and each 
 succeeding annual report, the quantity of small bills, under 
 Small bills, five dollars, in circulation, specifying the amount of each kind. 
 Unclaimed de- Resolved, That they also report to each Session of the De- 
 posits, gislature, all balances of deposits, dividends or other sums, un- 
 claimed for the space of two years. 
 
 R. R. 1847. 
 
 Monthly 
 statements. 
 
 In the Senate, Dec. 17, 1847. 
 
 The Committee on Finance and Banks, to whom was referred 
 Resolutions as to the monthly statements of the Bank, have 
 considered the same, and recommend their adoption. 
 
 Resolved, That the Comptroller General cause to be pub- 
 lished in one of the newspapers of Charleston and Columbia, 
 the monthly statements rendered by the Banks. 
 
 Resolved, That at the end of each year, the Comptroller Ge- 
 neral cause to be made, a tabular statement of the quarterly 
 averages of the items specified in the said statements, and re- 
 port the same to the General Assembly, to be printed for gene- 
 ral information, with his Annual Report. 
 
 R. R. 1847. 
 
 Comptroller 
 General to re- 
 port sundry 
 information. 
 
 Inthe Senate, Dec. 17, 1847. 
 Resolved, That the Comptroller General be instructed to 
 prepare and submit to the Senate, at the next Session of the 
 Legislature, a statement, exhibiting fully all sums transferred 
 to the Bank of the State of South Carolina, on account of capi- 
 tal, under the provisions of the Act incorporating said Bank, 
 
RESOLUTIONS OF LEGISLATURE. 89 
 
 and the Acts amendatory thereto, passed previous to 1st De- 1847. 
 cember, 1819, the dates of the respective transfers, and the v^^v-^-^ 
 sources whence derived. Also the payments made on the 
 Public Debt by the said Bank, out of said capital, setting forth 
 distinctly the dates and amounts of such payments. That he 
 also state the amounts of all payments made into the Public 
 Treasury by the said Bank, on account of profits, with the re- 
 spective dates of such payments. That he set forth in such 
 statement, also, all payments made by the said Bank, (out of 
 any funds transferred to it as capital, or deposited with the 
 Bank to be used as capital, or from the profits or income deri- 
 ved thereform,) on account of the debts due by this State. 
 That he likewise set forth all sums paid by the said Bank, from 
 income or otherwise, to the public creditors, on account of the 
 interest on their respective debts. That he also set forth all 
 sums which have been added to the capital of the Bank, since 
 the 1st December, 1819, or have been deposited with the Bank 
 to be banked upon as capital, or have been transferred to the 
 Sinking Fund from the State Treasury — ^with their respective 
 dates. That he also prepare a statement, exhibiting the ac- 
 tual operations of the Bank, in respect of income or profit — in 
 which he shall charge the Bank with interest, upon all sums 
 paid into it as capital, or transferred to it to be used as capi- 
 tal — and credit the Bank with all sums paid into the public 
 Treasury as profits , and also all sums paid to public creditors 
 on account of principal or interest of these respective debts, 
 out of the profits of the said Bank. 
 
 12 
 
INVESTIGATING COMMITTEES. 
 
 PEINCIPAL BANK. 
 
 1820. — Messrs. Elliott, I' On and Ramsay, of tlie Senate, and J. Hamilton, 
 
 Jr., W. Carr and Geo. Butler, of the House. 
 1824. — Messrs. Henry Deas and Alfred Huger, of the Senate, and Wm, 
 
 Washington, B. F. Dunkin and Wm. Rouse, of the House. 
 1826. — Messrs. Grimke and Seabrook, of the Senate, and Pinckney, Bun- 
 kin and Elliott, of the House. 
 1828.— Messrs. I' On and Smith, of the Senate, and R. B. Smith, J. Mintz- 
 
 ing and A. Black, of the House. 
 1830. — Messrs. Seabrook and Cunningham, of the Senate, and Axson,Horry 
 
 and Shand, of the House. 
 1832. — Messrs. Ashe and Cunningham, of the Senate, and P. Finley, Bryan 
 
 and Dawson, of the House. 
 1834. — Messrs. Hamilton and J. E. Jenkins, of the Senate, and H. 
 
 Gourdin, J. Mintzing and E. H. Edwards, of the House. 
 1836. — Messrs. J. E. Jenkins and Bryan, of the Senate, and Frost, Ed- 
 
 moudyton and Yeadon, of the House. 
 1838. — Messrs. Bennett and Dawson, of the Senate, and Memminger, 
 
 S<^-hnierle and Simons, of the House. 
 1840. — Messrs. Quash and Felder, of the Senate, and B. F. Hunt, Echard 
 
 and J. J. Middleton, of the House. 
 1842.— Messrs. J. B. Grimball and Elfe, of the Senate, and Carn, Frost 
 
 and Hibben, of the House. 
 1844. — Messrs. DeTreville and Murray, of the Senate, and Torre, P. Brooks 
 
 and W. G. Sims, of the House. 
 1846. — Messrs. J. S. Rhett and Rivers, of the Senate, and J. E. Carew, D. 
 
 Jamison and J. H. Read, of the House. 
 
 COLUMBIA BRANCH. 
 
 1824. — Messrs. David R. Evans and Saunders Glover, of the Senate, and 
 C. Bookter, T. W. Glover and John Caldwell, of the House. 
 
 1826. — Messrs. Hampton and Lehre, of the Senate, and Bookter, Partridge 
 and W. Thompson, Jr., of the House. 
 
 1828.— Messrs. Hampton and Hart, of the Senate, and A. P. Butler, W. 
 Thompson, Jr., and Player, of the House. 
 
 1830. — Messrs. Manning and James Gregg, of the Senate, and T. W. Glo- 
 ver, Bookter and Butler, of the House. 
 
 1832.— Messrs. Gregg and Higgins, of the Senate, and McCord, J. J. Cald- 
 well and Glover, of the House. 
 
INVESTIGATING COMMITTEES. 91 
 
 1834. — Messrs. Gregg and Cauglnnan, of the Senate, and Adams, Book- 
 
 ter and Boozer, of the House. 
 1836. — Messrs. Canghman and Dunovant, of the Senate, and D. McDow- 
 
 all. Boozer and Caldwell, of the House. 
 1838. — Messrs. Glover and Higgins, of the Senate, and Boozer, Brown and 
 
 McDowell, of the House. 
 1840. — Messrs. Witherspoon and Boozer, of the Senate, and Herndon, 
 
 Pope and J. H. Adams, of the House. 
 1842. — Messrs. Moses and H. H. Thompson, of the Senate, and Palmer,D. 
 
 Jamison and H. Arthur, of the House. 
 1844. — Messrs. H. C. Young and Gist, of the Senate, and J. E. Aiken, 
 
 Manning and Black, of the House. 
 1846. — Messrs. Perriu and Griffin, of the Senate, and Yancey, Boyce and 
 
 A. R. Taylor, of the House. 
 
 CAMDEN BRANCH. 
 
 1824. — Messrs. James S. Deas and Evan Benbow, of the Senate, and 
 Thomas Lang, F. L. Kennedy and N. Barber, of the House. 
 
 1826. — Messrs. Miller and Irvin, of the Senate, and Lang, Patterson and 
 Gibson, of the House. 
 
 1828. — Messrs. Benbow and James S. Deas, of the Senate, and Gee, Du- 
 gan and J. P. Kichardson, of the House. 
 
 1830. — Messrs. Dugan and Glover, of the Senate, and Hill, Richardson and 
 Spann, of the House. 
 
 1832. — Messrs. Chesnut and Dugan, of the Senate, and Davie, McWillie 
 and Potts, of the House. 
 
 1834. — Messrs. Richardson and Goodwyn, of the Senate, and Potts, Levy 
 and Cunningham, of the House. 
 
 1836. — Messrs. John Chesnut and Dugan, of the Senate, and Davie, Pat- 
 terson and Murray, of the House. 
 
 1838. — Messrs. English and Powe, ofthe Senate, and Patterson, Richard- 
 son and Murray, of the House. 
 
 1840. — Messrs. Gregg and Buchanan, ofthe Senate, and Woodward, Pal- 
 mer and James Chesnut, of the House. 
 
 1842. — Messrs. Dargan and Hanna, ofthe Senate, and Dickerson, Blake- 
 ney and Manning, ofthe House. 
 
 1844. — Messrs. Hanna and Dargan, of the Senate, and James Chesnut, 
 McMullan and W. J. Alston, of the House. 
 
 1846. — Messrs. Buchanan and Huey, ofthe Senate, and J. D. Wilson, H. 
 Boykin and Chandler, of the House. 
 
 GEORGETOWN BRANCH. 
 
 1824.— Messrs. Thomas P. Davis and S. K Miller, of the Senate, and R. A. 
 
 Taylor, Joseph W. Alston and John Porter, of the House. 
 1826. — Messrs. Plagg and Wilson, of the Senate, and Carr, Alston and John 
 
 Gregg, of the House. 
 1828. — Messrs. Flagg and Weatherspoon, of the Senate, and Coggeshall, 
 
 Hemmingway and Pringle, of the House. . 
 
92 INVESTIGATING COMMITTEES. 
 
 1830. — Messrs. Campbell and Allston, of the Senate, and S. Cohen, Jr., 
 
 AUston and Pringle, of the House, 
 1832. — Messrs. T. P. Allston and Evans, of the Senate, and Dunkin, Cohen 
 
 and Singleton, of the House. 
 
 CHERAW AGENCY. 
 
 1832.— Messrs. R. B. Campbell and Pegues, of the Senate, and Irvin, 
 Harllee and Rowell, of the House. 
 
 HAMBURG AGENCY. 
 
 1832. — Messrs. A. P. Butler and Black, of the Senate, and Pickens, Bull 
 and Benson, of the House. 
 
REPORTS 
 
 OF 
 
 INVESTIGATING COMMITTEES 
 
 (1820.) 
 FROM THE SPECIAL COMMITTEE OF THE HOUSE. 
 
 The Committee appointed to receive from the Comptroller General in- 
 formation relative to the Bank of the State, respectively Report : 
 
 That from the statements of the Comptroller General, and of the Pre- 
 sident of the Bank, who favored them with their attendance, and freely 
 communicated all the information required, this Committee are enabled to 
 submit the following brief exposition of the progress, management, and 
 present situation of that institution. 
 
 At the time of its establishment, and for a considerable period after- 
 wards, a very small part of the capital of the Bank consisted of money ; the 
 greater portion of it consisting of stock of different kinds, and of debts due 
 to the State ; as will more fully appear by reference to the Comptroller 
 General's Report for the year 1812. It has been the policy of the institu- 
 tion to convert its stock capital into money, whenever it could be done 
 advantageously, or whenever the increase of its business required, on bank- 
 ing principles, a larger cash capital ; and whenever the profits of such in- 
 creased business exceeded the profits arising from the stock. Accordingly, 
 the whole of the United States stock has been converted into cash, and all 
 of the Bank shares have been sold, except a part of the shares in the State 
 Bank. The Banks shares which have been disposed of, have never been 
 sold below par ; whenever they would not command that price, their divi- 
 dends have been received in preference to selling. 
 
 The Sinking Fund system adopted by the General Government for the 
 redemption of its stock, had very considerably reduced the value of that 
 stock, before the establishment of this Bank ; and the amount paid quar- 
 terly into the Treasury, on account of this stock, was calculated to deceive 
 those unacquainted with this system. Eight per cent, was paid in quarter- 
 ly payments ; in the first instance, this amount being two per cent, more 
 than the interest, reduced the principal two per cent. ; and the same 
 amount being paid annually, viz., eight per cent, on the original principal^ 
 in inverse proportion, as the amount of interest due, at each successive pay- 
 ment, became less, the amount o£ principal reduced became larger. Had 
 not this Bank been established, all of the United States stock, except a part 
 of the deferred stock, would have been redeemed before this period ; and 
 the principal being paid in small amounts, with the interest, the whole 
 would, in all probability, have been swept away in the annual Qjxrrent ex- 
 
94 REPORTS OF INVESTIGATING COMMITTEES. 
 
 penses of the State. But the State now has, in the cash capital of the 
 Bank the aggregate amount of all the quarterly payments on the United 
 States stock, from the year 1812, to its final redemption. 
 
 The balance due from the General Government on this six per cent, de- 
 ferred stock, was finally redeemed in the last year, although that stock 
 would not have been redeemable by the operation of the above mentioned 
 system, for something more than two years. But as the amount of princi- 
 pal would be at least as productive in Bank capital as in stock, it was 
 thought advisable to permit its redemption. 
 
 The capital of the Bank has been annually, more or less, increased by 
 unappropriated balances in the Treasury ^ and particularly by a large 
 balance in the year 1815, occasioned by a repeal of the direct tax by Con- 
 gress, after the Legislature had made provisions for its payment. From all 
 these sources, the present money capital of the Bank is tenfold wljat it was 
 during the first year of its operation ; and is now greater by more than one 
 half than it was at the same period, even viewing the stock then unsold as 
 capital. In addition to this large accession of capital, the Bank has re- 
 deemed stock due by the State, to the amount of two hundred thousand 
 dollars, and has paid into the Treasury of the State, as dividend or profit, 
 something more than half a million of dollars. 
 
 The notes of the Bank now in circulation, are less than its capital ; and 
 if the notes discounted on good securities be added to that capital, the 
 whole amount will be nearly threefold of its notes in circulation. In con- 
 sequence of the system of policy pursued by the Bank of the United States, 
 towards the local institutions, and of the great deniiind for specie, for the 
 East India trade, it was found necessary to purchase a considerable quan- 
 tity of specie for this Bank. The average price paid was something more 
 than the half of one per cent., less than three fourths of one per cent. ; 
 which, when the purchases were made, was the lowest market price of that 
 article. To show the necessity of these purchases, it may be proper to state 
 that this Bank has paid to the Branch of the United States Bank in Charles- 
 ton, within eighteen months, more than seven hundred thousand dollars, be- 
 sides a considerable quantity to individual applicants. Another consequence 
 of the course of conduct pursued by the United States Bank, has been that 
 the Bank of the State, in common with the other local institutions, found it 
 necessary to call in a part of its debts. Four hundred thousand dollars 
 have been called in, within eighteen months, without creating any con- 
 siderable pressure or embarrassment among its customers. 
 
 The whole of the losses sustained by bad . debts, since the Bank went 
 into operation, amount to twenty-two thousand dollars ; and this loss will, 
 in all probability, be exceeded by the gain arising from the issue of change 
 bills during the war. The losses by bad debts, however, have been deduct- 
 ed from the profits of the Bank in each year, before such profits were passed 
 to the credit of the State. 
 
 The discounted notes which this Bank has in suit, amount to fifty-five 
 thousand dollars. The whole sum is sufiiciently secured by good real and 
 personal security, except about five hundred dollars. Most of these notes 
 have been put in suit iu consequence of the death of drawers or endorsers, 
 whose executors or administrators have not been legally authorized to renew 
 or pay them up, at the periods required by banking rules. 
 
 Since the establishment of this Bank, one debt, contracted by a director, 
 has been lost ; another will probably be lost. The loss of the first occurred 
 
 1 
 
I 
 
 REPOETS OF INVESTIGATING COMMITTEES. 95 
 
 four years ago ; the other more recently. Neiiher of the persons have 
 been since directors. No debt of magnitude has been contracted by any 
 director in this Bank, for the last eighteen months. 
 
 Not having access to the books of the Bank, or to its vaults, but relying 
 on the accuracy of the above statements with entire confidence, this Com- 
 mittee are fully satisfied that the funds of this Bank have been as wisely 
 and faithfully managed as those of any other banking institution. Indeed, 
 when they take into view the smallness of the losses sustained, the great 
 profits which have accrued, and the present situation of this Bank ; and when 
 they consider the great embarrassments through which this, in common 
 with other local institutions, has had to struggle, in consequence of the 
 general and sudden failure of a vast number of persons engaged in agricul- 
 tural enterprise, or commercial speculation, who were deeply involved in 
 the Banks ; and in consequence, moreover, of the policy pursued by the 
 Bank of the United States, this Committee find cause rather for rejoicing 
 than dissatisfaction. And they cannot dismiss the subject without express- 
 ing their sense of the gratitude due from the State to the enlightened 
 head of that institution, as well as to the other gentlemen of its direc- 
 tion, for the able, disinterested, and faithful discharge of the important trust 
 committed to them. 
 
 December 11, 1820. WM. A. BULL, Chairman. 
 
 (1821.) 
 
 EROM THE COMMITTEE OF THE SENATE, APPOINTED IN 
 
 1820. 
 
 On the 15th day of December, 1820, a Resolution was passed by both 
 Branches of the Legislature of South Carolina, in the words following : 
 
 '■'Resolved^ That a Joint Committee of three persons from each house, be 
 appointed to obtain, during the recess of the Legislatui*e, a general state- 
 ment of the transactions of the Bank of South Carolina, signed by the 
 President and countersigned by the Cashier ; the duty of which Commit- 
 tee it shall further be, to inspect the general accounts in the books of the 
 Bank, and report whether there has been any, and what, violation of the 
 fundamental articles of the said Bank, its condition, the goodness of its 
 debts, and their opinion of the mode of its administration, whether beneficial 
 or otherwise." 
 
 The Committee on the part of the Senate beg leave now to report : That 
 in obedience to the will of the Legislature, expressed in the above Resolu- 
 tion, they met at the banking house of the mother Bank, in the city of 
 Charleston, on the 14th day of February last, and commenced and con- 
 tinued their investigations, which they closed on the 23d day of the same 
 month, and adjourned to meet at Georgetown on the 25th day of April 
 following, which they did accordingly, and closed their examination of the 
 books and accounts of that Branch, on the 27th of that month. The Com- 
 mittee were not able to meet at Columbia until the 26th day of November 
 last, and have performed the duty assigned to them, by a careful examina- 
 tion of the management of that Branch of the Bank of the State of South 
 Carolina ; the result of which scrutinies, your Committee beg leave here- 
 with to submit, in documents and statements, marked with the letters from 
 
96 EEPORTS OF INVESTIGATINa COMMITTEES. 
 
 A to H. The paper marked A, contains a compendious history of the ope- 
 rations of the Bank, since its establishment, and its influence on the fiscal 
 concerns of the State. B contains a statement of the Bank of the State of 
 South Carolina, for February 1821. C covers the contingent accounts, 
 and an account of the profits passed to the credit of the Treasury. D is an 
 exhibit of the amount of specie purchased, and the premium paid for the 
 same. E is the profit and loss account, and shows what debts are con- 
 sidered as loss to the Bank. F contains a monthly statement of the 
 amount of discounts and loans of the Bank and its Branches, from 1813, 
 to February, 1821. G exhibits the specie on hand, from September 1813, 
 to February, 1821, inclusive. H. exhibits the issues of the Bank, in its 
 own notes. Together with the papers above enumerated, the Committee- 
 beg leave to submit general statements of the accounts of the Branches of 
 Georgetown and Columbia, marked I and K. These statements, it i» 
 hoped, accomplish the hopes which the Legislature had in raising the- 
 Committee, and it is presumed will give entire satisfaction. In comparing 
 the returns made by the Branches of Georgetown and Columbia, to the 
 mother Bank, and entered in its books, with the accounts kept at the; 
 Branches, they were found to correspond. Your Committee have been 
 minute in pursuing their investigations, and have traced the transactions 
 of each branch of business through all its ramifications, and have invaria- 
 bly found them correspondent. In examining the individual accounts i» 
 the books, they resorted to the best information which they could obtain 
 from consulting persons of credit and integrity, and the exercise of their 
 own judgments, where the parties were known to them, and they confident- 
 ly believe, that in Charleston the debts due to the Bank are well secured ; 
 and from an examination of persons most likely to give correct information 
 on the subject, there is not a bad debt due to the Bank of Georgetown, and 
 but one of a small amount at Columbia. On consulting with the ofiicers of 
 the institution, and well informed citizens, it was thought that a conside- 
 rable increase of capital could be profitably and safely employed. 
 
 The withdrawing of the surplus of the treasury from the funds of the 
 Bank, by an Act passed in 1818, accounts for the capital of the Bank being 
 stationary from that period. The profits of the Bank have been considera- 
 bly reduced in the last two years, in consequence of the pressure of the 
 United States Bank and the local Banks, which rendered it prudent and 
 necessary for the Directors to curtail their business, withdraw much of their 
 paper from circulation, and to purchase specie. For the last year the divi- 
 dend is 7 22 per cent.; much less than it has hitherto been, and is to be 
 ascribed to the causes above mentioned and to additional expenses ineur- 
 red by engraving and striking change bills, by order of the Legislature at 
 its last session, and advances made to the State, which were not refunded 
 till the most active season of business had passed. 
 
 The Bank has occasionally made large advances for the State, on which 
 no interest is charged, and it was through it the State was enabled to pay 
 the general government its quota of direct taxes, during the late war, on 
 which, in consequence of payment in advance, a discount of 15 per cent, 
 was allowed, amounting, on the different assessments, to $91,143 28 cents, 
 and which was so much saved to the State by this institution. 
 
 In pursuing their investigations the Committee met with every facility 
 from the attention of the officers and directors of the institution, both in 
 exhibiting the books and accounts of the Bank, and personally answering 
 all interrogatories. The Committee cannot dismiss this subject without 
 
KEPORTS OF INVESTiaATINa COMMITTEES. 97 
 
 expressing their entire approbation of the manner in which the business of 
 the Bank has been conducted. From a minute and strict examination, they 
 are enabled confidently to state, that there has been no violation of the char- 
 ter — that its condition is highly prosperous — and its administration has 
 been able, faithful and judicious — highly creditable to the President, Di- 
 rectors and Officers, and perfectly satisfactory to your Committee — and it 
 is well calculated to excite in our citizens a lively interest in the welfare of 
 the institution. The advantages derived from it, in the opinion of your 
 Committee, are numerous, unequivocal and important, sufficiently so to in- 
 duce the Legislature to extend to it, from time to time, all the aid it may 
 need, as well to preserve its credit, as to extend its usefulness. 
 
 JACOB BOND TON, 
 Clmirman of the. Committee on the Bank. 
 
 EXHIBITS. 
 
 The Committee of the Legislature having required "a detailed statement 
 of the progressive increase of the capital of the Bank of the State of South 
 Carolina since its establishment, stating the sources from which this in- 
 crease has arisen, with the actual annual receipts of interest, and the an- 
 nual expenditures specifically designated," the following view of the annual 
 transactions of this institution is respectfully submitted : 
 
 It will be sufficient briefly to premise that the first section of the Act 
 incorporating this Bank, vested in it certain funds belonging to the State, 
 which, consisting of specialities of various descriptions, were to form its capi- 
 tal, whenever, either by sale or by payments, those funds should be con- 
 verted into money. And as, for many years, large sums of money had re- 
 mained unemployed in the Treasury of the State, it was also ordered by 
 another provision of the charter, that all sums which should be found in 
 the Treasury on the 1st day of April in each year, the day on which the 
 payment of the taxes of the current year usually commences, should be 
 transferred to the Bank, and become a part of its capital. 
 
 The charter of the Bank was ratified in December, 1812, and in the en- 
 suing August, the Bank commenced its operations. Some time was neces- 
 sarily consumed in procuring a house for the institution, and preparing 
 books, bills, &c. and this delay was unavoidably increased by the war 
 which existed at that time, and which obliged us to transport by land 
 everything which we were compelled to procure from the Northern States. 
 By the 1st October, 1813, when the Bank may 
 
 be considered as fairly in operation, we had 
 
 realized of the capital vested in the Bank, 
 
 thesumof--- _._ _, $102,546 76 
 
 This amount was derived from the following sources : 
 The sale of 800 shares of Planters' and Me- 
 chanics' Bank stock $19,341 77 
 
 The sale of 498 sharse of State Bank stock.. . 53,004 99 
 13 
 
98 REPORTS OF INVESTIGATING COMMITTEES. 
 
 A sum drawn from the Treasury at the first 
 organization of the Bank, considered as a 
 part of the principal of the United States 
 stock paid in during the year 1813 30,000 00 
 
 To which has been added inadvertently, a small 
 sum received for articles used in transporting 
 our materials from Philadelphia, and after- 
 wards sold 200 00 
 
 102,546 76 
 
 By the 1st October, 1814, the following additions had 
 
 been made to our capital : 
 
 By the sale of 873 shares of State Bank stock. 90,556 58 
 
 By cash received as part of the principal of 
 
 United States stock, due this State $56,893 95 
 
 Do. From Loan Office bonds 4,217 14 
 
 Do. from Confiscated Estates 1,465 1 1 
 
 Do. from property sold as in the preceding 
 
 year 220 00 
 
 153,353 38 
 
 1st October, 1814 255 900 14 
 
 In the thirteen and a half months, during which the Bank was doing 
 business previous to the 1 st October, 1814, the gross amount of the profits 
 of this institution was $44,753 01. The expenses during that period, in- 
 cluding all of the outfits, not only of the parent Bank, but of the Branch 
 at Columbia, comprising stationery, bank furniture, (as desks, counters, 
 scales and weights, iron chests, &c.,) and the plates and paper for bills, 
 which are generally in use to the present time, and the salaries of officers, 
 amounted to $41,427 80— leaving a nett profit of $3,325 21. 
 
 If, as is fair, we take a medium or average between the amount of capital 
 with which we began and concluded the business of each year, the average 
 amount of capital for this year will have been $179,223 46, and the gross 
 amount of profit equal to 24 97-100 per cent. The nett profits, however, 
 only to 1 85-100 per cent. 
 
 It is customary in private Banks that the extraordinary expenses of their 
 out-fit should be divided and deducted from the profit of several successive 
 years. But as it was really of no importance to this institution or to the 
 State, as no stock was in the market, whether a great dividend was made 
 the first year, it was deemed advisable by the directors to pay oflF all of 
 those contingent expenses at once, and leave no charge from this source, on 
 the proceeds of the succeeding years, and in the same spirit they have con- 
 tinued ever since to defray the expenses and losses of each year out of its 
 actual profit. 
 
 Amount of capital, 1st October, 1814 --$255,900 14 
 
 By the 1st October, 1815, the following additions had been 
 
 made to our capital : 
 By cash received as part of the principal of 
 
 the United States stock. $72,835 07 
 
 Do. from Loan Office bonds 6,034 08 
 
 Do. from old Duty Bonds _ 4,037 85 
 
 82,907 00 
 
 1st October, 1815 $338,807 14 
 
 i 
 
REPORTS OF INVESTIGATINa COMMITTEES. 99 
 
 In this year the gross amount of the profits of the Bank was $66,660 
 94, and the expenses of the institution $18,760 23 — leaving a nett profit 
 of $48,900 71 ; and if, as before, we take the mean or average amount of 
 capital for this year, it will amount to $297,353 28, and the nett profits 
 equal to 16 44-100 per cent. 
 
 Amount of capital, on the 1st October, 1815 $338,807 14 
 
 By the 1st October, 1816. the following additions had been 
 
 made to our capital : 
 By cash received as part of the principal of the 
 
 United States stock 74,777 52 
 
 Do. from Loan Ofiice bonds 6,817 28 
 
 Do. from the sale of 46 shares of State Bank 
 
 stock 5,920 20 
 
 Do. as surplus in the Treasury on the 1st 
 
 April 18,651 45 
 
 106,166 45 
 
 $444,973 59 
 
 In this year, the gross amount of the profits of the Bank was $92,386 
 
 33, and the expenses of the institution $29,363 64 — leaving a nett profit 
 
 of $63,022 69, equal, on an average amount of capital, (or $39 1,890 39) to 
 
 16 08-100 per cent. 
 
 In this year, the issuing of bills under the denomination of one dollar, 
 ordered by the Legislature, and the salary of the ofiicer appointed to attend 
 exclusively to the issuing of those bills, increased our expenses nearly $6,- 
 000, and many of the contingent expenses were necessarily increased by 
 the gradual extension of our business. 
 
 In this year also, it may be noticed, we received for the first time, some 
 funds from the surplus remaining in the Treasury on the 1st April. Ex- 
 perience has proved, and will confirm the observation, that whenever the 
 State shall be involved in war, or may be engaged in extensive improve- 
 ments, no funds, as many have apprehended, will be diverted disadvanta- 
 geously from her Treasury by the operation of this provision of our charter. 
 On the 1st April, 1814, instead of a surplus in the Treasury, the Bank 
 was actually in advance to the State to the amount of $78,855 47, and on 
 the 1st April, 1815, was again in advance to the amount of $55,224 76 — 
 while, during peace, money that would otherwise have remained unemployed 
 in the Treasury, became a productive fund. 
 
 Amount of capital, on the 1st October, 1816. ___. $444,973 62 
 
 By the 1st October, 1817, the following addi- 
 tions were made to our capital : 
 By cash received as part of the principal of the 
 
 United States stock $79,802 37 
 
 Do. from Loan Office Bonds 6,932 68 
 
 Do. from surplus in the Treasury 25,678 61 
 
 Do. from the sale of 417 shares of State Bank 
 
 stock 45,815 00 
 
 By the amount of 1,165 shares of State Bank 
 stock, transferred to the Cashier at par value 
 
 as part of the capital of the Bank 1 16,600 00 
 
 By profit on 156 shares afterwards sold 3,076 80 
 
 277,905 46 
 
 » 
 
 Iflt October, 1817- — — _ $722,879 05 
 
REPORTS OF INVESTIGATING COMMITTEES. 
 
 For this year, the gross amount of the profits of the Bank amounted to 
 $108,556 67, and the expenses to $32,048 66— leaving a nett profit of 
 $76,507 91, which, on the medium capital, (583,926 35) is equal to 13 16- 
 100 per cent. 
 
 In this year, the directors purchased the house which is now used in 
 Charleston for the Bank. The expenses of preparing the building for the 
 purpose of a Bank, were all charged to the Contingent Account, including 
 vault, cistern, &c. Of these expenses, about $6,000 fell in the accounts of 
 this year ; the balance was paid in the next ; a large amount of specie was 
 also purchased in this year, and increased the amount of our contingent 
 expenses. 
 
 Of the 1,166 shares of State Bank stock, transferred in the course of this 
 year to the Cashier, it may be necessary to give some brief explanation. 
 These shares were the unsold remainder of the three thousand shares origi- 
 nally held by the State, and vested in the Bank. As it is customary for 
 Banks of moderately large capital to convert a portion of that capital into 
 stock, bearing interest, in preference to the accumulation of a larger amount 
 of unproductive specie in their vaults, it might have been advantageous to 
 this institution to have transferred their stock at an earlier period to the 
 Cashier, and to have considered it as a portion of our capital in stock, to 
 be converted into money as opportunity or the circumstances of the Bank 
 should render expedient. It had, however, hitherto remained unchanged, 
 but as the business of the institution was now rapidly increasing, it was 
 deemed advisable to enlarge its capital by the transfer. As the directors 
 had determined never to sell this stock under its nominal value, no incon- 
 venience could arise ; whenever sold at par, the money received would 
 just replace the stock ; when any portion should be sold above par, the pro- 
 fits of such sale could be added to the capital. This actually occurred in 
 the course of this year with 156 shares, sold at an average profit of $19 72- 
 100 per share. 
 
 Amount of capital 1st October, 1817 $722,879 05 
 
 ^y the 1st October, 1818, the following addi- 
 tions were made to our capital : 
 By cash received as part of the principal of the 
 
 United States stock $69,681 72 
 
 Do. from Loan Office Bonds 30,447 49 
 
 Do. as profit on 93 shares of State Bank 
 
 Stock.__ 1,920 00 
 
 Do. as surplus in the Treasury on the 1st 
 
 April 227,937 81 
 
 329,987 02 
 
 1st October, 1818 $1,052,766 07 
 
 In this year the gross amount of the profits of the Bank was $147,532 ; 
 the expenses $36,793 93, and $4,900 carried to the account of profit and 
 loss for bad debts — leaving a nett profit of $105,838 07, which, on the ave- 
 rage capital of $887,872 59, is equal to 11 92-100 per cent. 
 
 The expenses of this year included the balance of the charge for fitting 
 up our banking house, and building our vault, so that the capital of the 
 Bank is only charged with the first cost of the building, viz : $18,000 — all 
 of the repairs and alterations having uniformly been provided for out of the 
 profits of the year. 
 
REPORTS OF INVESTIGATING COMMITTEES. IQl 
 
 The large surplus derived from the Treasury this year was in consequence 
 of arrangements having been made by the State to meet the direct tax of the 
 United States — presuming that it would be continued for the year 1817 — 
 Congress, however, repealed this tax, but not until the taxes in this State 
 had been imposed, and in fact partially collected. This sura, therefore, re- 
 mained in the Treasury until the 1st April, 1818, when it was transferred 
 to the Bank. 
 
 Amount of capital 1st October, 1818 $1,052,866 10 
 
 By the 1st October, 1819, the following addi- 
 tions were made to our capital : 
 By cash received for the balance due on the 
 
 United States stock $193,259 50 
 
 Do. from Loan Office Bonds 4,699 31 
 
 Do. from surplus in the Treasury 121, 425 69 
 
 319,384 50 
 
 $1,372,250 60 
 From this sum, deduct the amount of six per cent, and de- 
 ferred stock of the State, redeemed in the course of 
 this year, in pursuance of the provisions of our charter. 176,029 95 
 
 1st October, 1819 $1,196,229 65 
 
 For this year the gross amount of the profits of the Bank amounted to 
 $155,883 42; the expenses to $29,499 47; and a further sum of $18,- 
 790 was carried to the account of profit and loss, for bad debts — leaving a 
 nett profit of $107,593 95; which, on the medium capital of $1,124,543 
 37, is equal to 9 56-100 per cent. 
 
 On the transactions of this year, it is unnecessary to make many remarks. 
 The surplus in the Treasury was large from the prosperous condition of the 
 country — even the dividends of the Bank contributed to the gradual in- 
 crease of the surplus fund. 
 
 Among the provisions of our charter was a stipulation, that out of the 
 funds given to the Bank, all the outstanding debt of the State should be 
 redeemed on or before the close of the year 1823. That is to say, all the 
 six per cent, and deferred stock should be redeemed at par, and the three 
 per cent, stock, if it could be redeemed or purchased at 55 per cent. In 
 the beginning of this year, the situation of the Bank appeared so prosper- 
 ous, that it was considered prudent to act on this subject, and not postpone 
 the redemption of this debt, lest unexpected embarrassments might render 
 that difficult, which was now easy and practicable, and entirely within the 
 reach of the funds of the institution. The six per cent, and deferred stock 
 of the State was accordingly redeemed ; and all of the three per cent, which 
 has been offered to us at any time at 55 per cent., has been purchased. 
 
 From the 1st October, 1819, to the 1st October, 1820, no addition was 
 made to the amount of our capital. The gross amount of our profits for 
 this year was $133,455 86, and the expenses of the institution, which the 
 establishment of a Branch at Georgetown now contributed to increase, 
 amounted to $33,168 49 ; leaving a nett profit of $100,287 37, which, on a 
 capital of $1,196,220 65, was equal to 8 37-100 per cent. 
 
 Such is the view I am able to offer the Joint Committee of the Legisla- 
 ture, of the transactions and operations of the Bank of the State of South 
 Carolina, and which I trust the documents they have to examine will sup- 
 
 i 
 
102 REPORTS OF INVESTIGATING COMMITTEES. 
 
 port and confirm. The Exhibit, accompanying this statement, will show 
 the increase in the funds of the State since the establishment of this Bank, 
 and the increase of revenue from its operations. 
 
 STEPHEN ELLIOTT, President. 
 13th February, 1821. 
 
 November 4th, 1821. 
 
 The opportunity which has been afibrded to me at this time of reviewing 
 this statement, enables me to add, as a supplement, the transactions of 
 another year. 
 
 From the 1st October, 1820, to the 1st October, 1821, no addition has 
 been made to the amount of our capital. 
 
 The gross amount of our profits, for this year, was $126,461 20 ; the ex- 
 penses of the institution amounted to $30,013 82, and $9,922 has been 
 carried to the profit and loss account, to cover the losses of the year ; 
 the nett profit has amounted to $86,525 38, which, on a capital of $1,196,- 
 220 62, is equal to 7 23-100 per cent. 
 
 The expenses of the last year have, in some degree, been increased by 
 the charges for engraving and striking off the change bills ordered by the 
 Legislature at their last session. 
 
 The gradual diminution of the profits of the institution, has arisen from 
 the necessity of curtailing the business which we formerly transacted. Al- 
 though the pressure on the local Banks commenced in 1819, the retrench- 
 ment of our business, and the withdrawing of our paper from circulation, 
 was of necessity gradual, and it was only in the course of the last fiscal year 
 that we had reduced our business and our paper, as much as we deemed suf- 
 ficient to guard the institution against any pressure or contingency what- 
 ever. Another cause, however, which operated during the last year to di- 
 minish the dividend, was the great advances the Bank was obliged to make 
 to meet the expenditures of the State. 
 
 This advance, which, on the 1st of October, 1820, was $127,379 71, arose 
 by the 1st February to $424,687 73, and although the sales of stock on the 
 6th and 28th February not only refunded this amount, but placed a large 
 balance in favor of the State, yet the season of business had in a great 
 measure passed away, and the balance in favor of the Treasury we were 
 obliged to hold as a deposit, rapidly to be consumed by the engagements of 
 the State. 
 
 Our dividend, however, notwithstanding these impediments, has been at 
 least equal to that given during the last year by any similar institution in 
 the Southern States. 
 
 STEPHEN ELLIOTT, President. 
 
 FUNDS OF THE STATE OF SOUTH CAROLINA, ACCORDING TO THE EXHIBITS OF 
 THE COMPTROLLER GENERAL, ON THE IST OCTOBER, 1812, 
 
 Balance of Six per cent, stock of the United States this day, 
 
 including purchases made by former Treasurers $327, 1 77 32 
 
 Balance of deferrred do. do. including purchases made 
 
 by former Treasurers _ 266,118 76 
 
REPORTS OF INVESTIGATINa COMMITTEES. 103 
 
 Three per cent, stocks purchased by former Treasurers, 
 
 worth 65 per cent., equal to - 1,318 85 
 
 Bonds and notes, about 16,000 00 
 
 Balance due on Paper Medium Bonds 114,514 40 
 
 Balance due by D. D'Oyley and sureties 5,698 03 
 
 Do. do. on the late General Moultrie's debt 731 14 
 
 3,000 shares in the State Bank, worth (at par.) 300,000 00 
 
 800 do. in the Planters' and Mechanics' Bank, do 20,000 00 
 
 $1,051,558 50 
 Amounting to one million and fifty-one thousand five hun- 
 dred and fifty-eight dollars fifty cents. 
 From this amount, however, is to be deducted the outstand- 
 ing debts of the State, to wit : 
 
 In six per cent, stock $153,571 54 
 
 In deferred stock 36,666 54 
 
 In three per cent 259,332 19 
 
 The balance which remained due when the 
 claims and provision made for the debt of 
 Strickhausen & Luxemburgh were finally ad- 
 justed, and which have always been estimat- 
 ed in our Treasury reports at 55 per cent., 
 equalto 142,632 70 
 
 332,870 78 
 
 Real amount of capital, on the 1st October, 1812 718,687 72 
 
 Amount of the capital of the Bank this day, Feb., 1821 1,196,220 62 
 
 To which the following items are to be added : 
 
 A portion of the Paper Medium Bonds not yet paid, amount- 
 ing to , 55,366 42 
 
 And a balance still due on the miscellaneous bonds, of. 12,134 26 
 
 $1,263,721 30 
 From which, however, the following items are to be de- 
 ducted : 
 Balance of 6 per cent, and deferred stock not 
 yet redeemed, the owner of the stock not ha- 
 ving applied for payment 1 4,209 13 
 
 Three per cent, stock outstanding and still to be 
 
 redeemed, $259,332 19, at 55 per cent 142,632 70 
 
 156,841 83 
 
 Presentfunds of the State . 1,106,879 47 
 
 Deduct the amount on the 1st October, 1812 718,687 72 
 
 $388,191 75 
 
 The balance is the actual increase of the funds of the State since that 
 period. 
 
 The Bank of the State of South Carolina, since the commencement of its 
 operations, has paid into the Treasury of the State the following dividends : 
 
 On the 1st October, 1814 $3,325 21 
 
 1st October, 1815 48,9QP 71 
 
104 REPORTS OF INVESTiaATING COMMITTEES. 
 
 1st October, 1816 63,022 69 
 
 1st October, 1817 76,507 91 
 
 1st October, 1818 105,838 07 
 
 1st October, 1819 107,593 95 
 
 1st October, 1820 100,287 37 
 
 Total amount of profits $505,475 
 
 91 
 
 In determining, however, the profits which the State has derived from 
 this institution, it will be necessary in the first place to ascertain the sour- 
 ces of revenue, of which the State, by its establishment, has been deprived, 
 and theft deducting the amount which these sources of revenue would have 
 yielded to the State, from the sum actually produced by the Bank, the 
 balance will exhibit the real benefit which the revenue of the State bad de- 
 rived from this institution. 
 
 In the first place, then, it will be necessary to state, that all of the sums 
 which were paid as interest on the stock of the United States, until its fi- 
 nal redemption, were carried at once to the credit of the Treasury of the 
 State, and were never included in the dividends of the Bank. 
 
 In the second place, that the interest of the Loan Ofiice (or Paper Me- 
 dium) bonds, and on all other bonds held by the State, was paid whenever 
 received in the same manner into the Treasury of the State, without ma- 
 king any addition to the dividends of the Bank. The income of the 
 State, therefore, from these sources has never been diminished. 
 
 The State gave to the Bank 800 share in the Planters' and Mechanics' 
 Bank. These have been sold, and the State has lost on them the following 
 dividends : 
 
 Per Share. 
 
 Jan. 1, 1814 87^ $700 
 
 July 87^ 700 
 
 Jan. 1815, __ 87^ 700 
 
 July _-_ 100 800 
 
 Jan. 1816, 100 800 
 
 July 100 800 
 
 Jan. 1817, 100 800 
 
 July 100 800 
 
 Jan. 1818, 100 800 
 
 July 125 1,000 
 
 Jan. 1819, 125 1,000 
 
 July 87i 700 
 
 Jan. 1, 1820 75 600 
 
 July 1, 75 600 
 
 Loss on Planters' and Mechanics' stock $10,800 
 
 The State also gave to the Bank 3,000 shares it held in the State Bank. 
 These have been sold or transferred to the Bank of the State, and the fol- 
 lowing dividends or portions of dividends have been lost to the State. 
 
REPORTS OF INVESTIGATING COMMITTEES. 105 
 
 Paid into the Treasury. 
 Dividend per share. each year. Loss each year. 
 
 1813 Jan. $4 $12,000 
 
 July 3 50 10,500 
 
 
 3 
 3 
 
 3 50 
 4 
 
 4 
 
 4 50 
 
 4 
 4 50 
 
 4 
 4 50 
 
 3 50 
 3 
 
 2 50 
 3 
 
 22,500 
 
 1814 Jan. 
 July 
 
 9,000 
 9,000 
 
 
 18,000 
 
 1815 Jan. 
 July 
 
 10,500 
 12,000 
 
 
 22,500 
 
 1816 Jan. 
 July 
 
 12,000 
 13,500 
 
 
 25,500 
 
 1817 Jan. 
 July 
 
 12,000 
 13,500 
 
 
 25,600 
 
 1818 Jan. 
 July 
 
 12,000 
 13,500 
 
 
 25,500 
 
 1819 Jan. 
 July 
 
 10,500 
 9,000 
 
 
 19,500 
 
 1820 Jan. 
 July 
 
 7,500 
 9,000 
 
 22,500 
 
 11,511 6,489 
 
 12,217 50 9,782 50 
 
 13,455 50 12,044 50 
 
 6,132 19,368 
 
 25,500 
 
 19,500 
 
 15,600 16,500 
 
 Loss on State Bank stock -$109,183 
 
 Do. on Planters' and Mechanics' stock 10,800 
 
 119,983 
 
 If from the profits of the Bank, amounting to 505,475 9 1 
 
 we deduct the amount of dividends lost on Bank stock 119,984 
 
 The balance, amounting to 385,49 191 
 
 will be the gain to the State on account of interest. 
 
 Add increase of capital 388,191 75 
 
 The result will give the total gain which the State has pro 
 
 bably derived from the establishment of this institution- - 7?3,683 66 
 14 
 
106 REPORTS OF INVESTIGATING COMMITTEES. 
 
 Witli regard to this document, however, I wish distinctly to state, that 
 I mean not to intimate that no other mode might ha.ve been adopted, or 
 that no other system would have been devised for the preservation and 
 improvement of the funds of the State. I am authorized, however, to as- 
 sert that no other plan was proposed when this was submitted to the Le- 
 gislature for their consideration, or at any time previous to its adoption ; 
 and I have no hesitation in expressing my own conviction, that but for this 
 institution, the funds of the State, from the gradual manner in which they 
 were paid into the Treasury, would have been absorbed by the current ex- 
 penditures of the State. Thus far they have not only been preserved, but 
 increased, and the Legislature still has the option and the power of divert- 
 ing them into other channels, or of preserving them in their present form, 
 and enlarging them in any manner in which it may be deemed expedient. 
 
 STEPHEN ELLIOTT, President 
 Bank of tlie State South Carolina. 
 
 If the calculations of the preceding page were continued to the present 
 
 time, the following addition would be made to the former result. 
 
 Dividend of the Bank on the 1st October, 1821 $86,525 38 
 
 January 1, 1821, dividend on 800 shares of Plan- 
 ters' and Mechanics' Bank at 75 cts. per share 600 
 
 July do do at 75 cts. per share 600 
 
 Jan. do do on 3,000 shares of State 
 Bank, at $3 per share 9,000 
 
 July do do at $3 per share 9,000 
 
 19,200 
 
 67,325 38 
 773,683 66 
 
 Total amount on the 1st October, 1821 ..$841,009 04 
 
REPORTS OF INVESTIGATINO COMMITTEES. 107 
 
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108 REPORTS OF INVESTIGATING COMMITTEES. 
 
 Annual Statement of the Bank of tJie State of South Carolina^ and the 
 Branch at Columbia. 
 
 C. 
 Dr. 
 1814. Oct. 1, To the incidental expenses in the City of Char- 
 leston, plates,^ paper, house-rent, &c $36,931 33 
 
 To incidental expenses at the Columbia Branch, 4,458 63 
 
 To direct tax. United States, 3784 
 
 To balance to credit of State Treasury, — _. 3,325 21 
 
 Cr. 
 1814. Oet. 1. By discount on notes in Charleston, 29,791 09 
 Do. on bonds and mortgages, 7,676 20 
 
 44,753 01 
 
 37,467 37 
 
 By amount of discounts on notes, and interest 
 
 on bonds and mortgages, at Columbia, 7,285 64 
 
 44,753 01 
 
 STEPHEN ELLIOTT, President. 
 Charleston, S. C. A. HENRY, Cashier. 
 
 Annual Statement of the Bank of the State of South Carolina^ and the 
 Branch at Columbia. 
 Dr. 
 1815. Oct. 1. To incidental expenses in the City of Charleston, $14,728 24 
 
 To do. do. at Columbia, ,... 4,03199 
 
 To balance to credit of State Treasury, 48,900 7 1 
 
 67,660 94 
 
 Cr. 
 
 1815. Oct. 1. By discount on notes, __ 40,563 89 
 
 By interest on bonds, __ 3,305 93 
 
 43,869 82 
 
 By intererst account, 7,327 19 
 
 By do. on Treasury notes, 48 84 
 
 7,376 03 
 
 COLUMBIA BRANCH. 
 
 By discount on notes, 9,148 08 
 
 By interest on bonds 7,267 01 
 
 16,415 09 
 
 67,660 94 
 STEPHEN ELLIOTT, President. 
 
 Charleston, S. -0. A. HENRY, Cashiei: 
 
REPORTS OF INVESTIOATINa COMMITTEES. 109 
 
 Annual Statement of tJie Bank of the State of South Carolina^ and tJie 
 Braytch at Columbia. 
 
 Dr. ' ' 
 1816. Oct. 1. To incidental expenses in Charles- 
 ton, &c $24,312 99 
 
 Do. at Columbia, 5,050 65 
 
 29,363 64 
 
 Balance to credit of State Treasury, 63,022 69 
 
 92,386 33 
 Cr. 
 
 1816. Oct. 1. By discount on notes, .40,563 89 
 
 Interest on bonds, 3,640 73 
 
 59,593 10 
 
 Interest account, 7,850 08 
 
 Profit and loss account, gain, 891 28 
 
 ■ 8,747 36 
 
 Discount account, interest thereon, and on 
 
 bonds, &c., at Columbia, 24,045 87 
 
 92,386 33 
 STEPHEN ELLIOTT, President. 
 
 Charleston, S. C. A. HENRY, Cashier. 
 
 Annual Statement of the Bank of the State of South Carolina^ and its 
 Branch at Columbia. 
 
 Dr. 
 1817. Oct. 1. To incidental expenses in Charleston, 26,772 01 
 To do. do. at Columbia, 5,276 75 
 
 32,048 75 
 
 To balance to credit of State Treasury, 76,507 92 
 
 108,556 67 
 
 Cr. ^ 
 
 1817. Oct. 1. By discount account in Charleston,. .69,686 32 
 
 By interest on bonds, 3,571 69 
 
 By interest account,. 10,230 15 
 
 83,488 16 
 
 COLUMBIA. 
 By interest on discounted notes,. ..19,994 14 
 
 By do. bonds,--- __-- 5.074 37 
 
 — 25,068 51 
 
 108,556 67 
 'T, i 
 Charleston, S. C. A. HENRY, Cashier. 
 
 STEPHEN ELLIOTT, President 
 
no KEPORTS OF INVESTiaATING COMMITTEES. 
 
 Anrmal Statement of the Bank of the State of South Carolina^ and its 
 
 Dr. Branches in Columbia and Gem-getown. 
 
 1818. Oct. 1. To incidental expense account in 
 
 Charleston, ^ $25,38^ 06 
 
 Profit and loss charged with 4,900 
 
 30,289 06 
 
 Columbia : Incidental expense account, 6,257 16 
 
 Georgetown: Incidental expense account, 5,147 71 
 
 Balance to credit of State Treasury, . _ 1 05,838 07 
 
 147,532 00 
 
 Cr. 
 
 1818. Oct. 1. By discount in Charleston, 83,143 30 
 
 Interest on bonds, 3,012 21 
 
 Interest account, 10,014 52 
 
 96,170 03 
 
 Columbia : Discount on notes, 42,2 18 18 
 
 Interest on bonds,. 4,139 04 
 
 . 46,357 22 
 
 Georgetown : Discounts and interest thereon, 5,004 75 
 
 147,532 00 
 STEPHEN ELLIOTT, President. 
 Charleston, S. C. A. HENRY, Cashier. 
 
 Anniial Statement of the Bank of the State of South Carolina^ and its 
 
 Dr. Bra7ic}ies in Columbia and Georgetown. 
 
 1819. Oct. 1. To incidental expense account in 
 
 Charleston, 18,43120 
 
 To profit and loss account charged, 18,790 
 
 37,221 20 
 
 COLUMBIA : To incidental expense account, 5,817 71 
 GEORGETOWN: To incidental expense ac't., 5,250 61 
 
 To balance to credit of State Treasury, 107,593 95 
 
 Cr. 15 5,883 47 
 
 1819. Oct. 1 By discounts in Charleston, 69,654 68 
 
 By interest on bonds, 2,558 26 
 
 By interest account, 12,461 10 
 
 84,674 04 
 
 COLUMBIA : By discount account, 50,870 
 
 By interest on bonds, 3,240 04 
 
 54,110 04 
 
 GEORGETOWN: By discount on notes, in- 
 terest, &c 17,099 34 
 
 155,883 42 
 STEPHEN ELLIOTT, President. 
 Charleston, S. C. A. HENRY, Cashier. 
 
REPORTS OF INVESTiaATINa COMMITTEES. HI 
 
 Annual Satement of the Bank of the State of South Carolina^ and its 
 Branches at Georgetown and Columbia. 
 Dr. 
 
 1820. Oct. I. To incidental expense account in Charleston, 22,261 33 
 
 Incidental expense account in Columbia, 5,717 20 
 
 Incidental expense account in Georgetown, 5,189 96 
 
 Balance to credit of State Treasury, 100,287 37 
 
 133,455 86 
 
 Cr. 
 
 1820. Oct. 1. By discounts in Charleston 59,158 79 
 
 Interest on bonds, , 2,059 89 
 
 61,218 68 
 
 Interest account on stock, 7,180 79 
 
 Profit and loss, gain, 884 15 
 
 — 8,064 94 
 
 Columbia Branch : Int. on disc'ts, 44,430 25 
 Interest on bonds, 
 
 &c.-_ 2,381 04 
 
 — 46,811 29 
 
 Georgetown : Discount on notes, &o 1 7,360 95 
 
 133,455 86 
 STEPHEN ELLIOTT, President. 
 Charleston, S. C. A. HENRY, Cashier. 
 
112 REPORTS OF INVESTIGATINO COMMITTEES. 
 
 D. 
 
 Amownt of Specie pur chased ^ and of whom. 
 
 1816. Oct. 24. 
 
 Nov. 6. 
 
 11. 
 
 Dec. 23. 
 
 27. 
 
 4. 
 
 7. 
 
 10. 
 
 1817. Jan. 
 
 18. 
 
 24. 
 
 31. 
 
 Feb. 5. 
 
 1819. Feb. 20. 
 
 Oct. 27. 
 
 Nov. 8. 
 
 24. 
 
 1820. Feb. 15. 
 March 6, 
 
 8. 
 
 10. 
 
 April 25. 
 
 May 15. 
 
 17. 
 
 1821. Jan. 5. 
 
 6. 
 
 8. 
 
 25 
 
 1820. Dec. 23. 
 
 F. Gr. Delisseline,. - - 
 John Eraser, 
 
 Do. 
 
 John D. Brown, 
 
 John Eraser, 
 
 Do. 
 Daniel C. Webb,--- 
 Benjamin Strobel,.. 
 
 John Schultz, 
 
 Daniel C. Webb,_-- 
 
 John Ross, 
 
 John Eraser, 
 
 John Ross, 
 
 Rowland & Co., 
 
 John Schultz, 
 
 John Eraser & Co.,- 
 W. Buchanan & Co., 
 James Calder, 
 
 Do. 
 A. Milne & Co 
 
 Do. 
 James Calder, 
 
 Do. 
 
 A. Milne & Co.,.-_- 
 
 W. Stuart, 
 
 James Calder, 
 
 J._ & W. Longsdon,- 
 
 Charles Bruce, 
 
 A. Milne & Co., 
 
 823 
 
 1500 
 
 4977 
 
 1220 
 
 14992 
 
 2000 
 
 2500 
 
 37300 
 
 341 
 
 1000 
 
 499 
 
 19249 
 
 7734 
 
 39640 
 
 10766 
 
 1250 
 
 4622 
 
 50000 
 
 43354 
 
 61000 
 
 12210 
 
 49875 
 
 62747 
 
 83503 
 
 18809 
 
 94000 
 
 9591 
 
 7954 
 
 37967 
 
 
 At 3 per cent. 
 
 Do. 
 At 2 per cent. 
 
 
 
 Do. 
 
 
 Do. 
 
 
 Do. 
 
 
 Do. 
 
 
 Do. 
 
 
 Do. 
 
 
 Do. 
 
 40 
 
 Do. 
 
 13 
 
 Do. 
 
 
 Do. 
 
 
 At 2^ per cent. 
 
 
 At 2 per cent. 
 
 
 . Do. 
 
 
 At 1 per cent. 
 Do' 
 
 
 
 Do. 
 
 
 Do. 
 
 15 
 
 At ^ per cent. 
 
 
 Do. 
 
 
 Do. 
 
 25 
 
 Do. 
 
 
 Do. 
 
 
 Do. 
 
 
 Do. 
 
 
 Do. 
 
 24 69 
 
 45 
 
 
 124 
 
 42 
 
 24 
 
 40 
 
 299 
 
 84 
 
 40' 
 
 
 50 
 
 
 746 
 
 
 6 
 
 82 
 
 20 
 
 
 9 
 
 98 
 
 384 98 
 
 154 68 
 
 993 
 
 50 
 
 215 
 
 32 
 
 25 
 
 i 
 
 46 
 
 22 
 
 500 
 
 
 433 
 
 54 
 
 610 
 
 
 122 
 
 10 
 
 249 
 
 37 
 
 313 
 
 73 
 
 417 50 
 
 94 
 
 04 
 
 470 
 
 
 47 95 
 
 39 
 
 77 
 
 189 
 
 83 
 
 681523 93 
 Average of 1 per cent 68 15 23 
 
 6698 68 
 
 6698 68 
 
 Less than 1 per cent 116 55 
 
 STEPHEN ELLIOTT, President. 
 Charleston, Feb. 12, 1821. A. HENRY, Cashier. 
 
 E. 
 Profit and Loss. 
 
 1st October, 1818,-__ __ _ $4,900 
 
 Do. 1819, 13,890 
 
 Deduct receipts, 944 15 
 
 12,945 85 
 
 STEPHEN ELLIOTT, President. 
 Charleston, 12th Feb. 1821. A. HENRY, Cashie?-. 
 
REPORTS OF INVESTIGATING COMMITTEES. 
 
 113 
 
 ^ 
 
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 ^ 
 
 
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] 14 REPORTS OF INVESTiaATING COMMITTEES. 
 
 
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REPORTS OF INVESTIGATINa COMMITTEES. 115 
 
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116 REPORTS OF INVESTIGATING COMMITTEES. 
 
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REPORTS OF INVESTIGATING COMMITTEES. 
 
 117 
 
 G. 
 
 Exhibit of Specie in hand, tJie first iveek in every Month, from Septemherr^ 
 1813, to February, 1821. 
 
 1813 September 39,000 
 
 October 39,000 
 
 November 47,007 
 
 December 45,005 
 
 1814 January 44,009 
 
 February 46,009 
 
 March 48,001 
 
 April 48,003 
 
 May 47,002 
 
 June 50,007 
 
 July 50,008 
 
 August 49,008 
 
 September 48,000 
 
 October 50,000 
 
 November 49,569 
 
 December 50,351 
 
 1815 January 50,351 
 
 February 50.351 
 
 March 50,351 
 
 April 50,411 
 
 May 50,411 
 
 June 50,851 
 
 July 50,586 
 
 August 50,586 
 
 September 50^586 
 
 October 50,586 
 
 November 50,587 
 
 December 50,587 
 
 1816 January 50,587 
 
 February 50,587 
 
 March 50,587 
 
 April 50,587 
 
 May 50,587 
 
 June 50,587 
 
 July 50,587 
 
 August 50,587 
 
 September 50,736 
 
 October 56,675 
 
 November 57,485 
 
 December 64,395 
 
 1817 January--.----- 90,396 
 
 February 162,132 
 
 March 165,474 
 
 April 193,608 
 
 May... 207,108 
 
 June 102,108 54 
 
 July 247,593 52 
 
 August 244,687 52 
 
 September 247,432 32 
 
 October 244,433 32 
 
 November 242,433 32 
 
 December 261,382 32 
 
 1818 January 308,843 50 
 
 February -"-. 341,471 99 
 
 March 369,876 30 
 
 April 384,364 95 
 
 May 350,044 
 
 June 330,906 43 
 
 July 323,846 43 
 
 August 322,925 43 
 
 September 314,925 43 
 
 October 308,925 43 
 
 November 302,925 43 
 
 December 249,042 42 
 
 1819 January 352,043 43 
 
 February 352,042 43 
 
 March 264,782 43 
 
 April 254,782 43 
 
 May 270,779 11 
 
 June--- -.- 240,397 77 
 
 July 239,507 11 
 
 August 238,637 77 
 
 September 241,312 52 
 
 52 
 52 
 10 
 
 October.- 249,348 
 
 November 250,114 
 
 December 246,867 
 
 1820 January -... 247,162 98 
 
 February 247,379 98 
 
 March 326,739 50 
 
 April 413,502 50 
 
 May 462,490 66 
 
 June 510,262 59 
 
 July 341,992 90 
 
 August 338,743.90 
 
 September 338,543 90 
 
 October 225,523 90 
 
 November 224,543 90 
 
 December 224,143 90 
 
 1821 January 286,910 90 
 
 February 328,355 90 
 
 STEPHEN ELLIOTT, President. 
 A. HENRY, Cashier, 
 
118 REPORTS OF INVESTIGATINGl COMMITTEES. 
 
 H. 
 
 Exhibits of Issices of tJie Bank in its own Notes. 
 
 The issues on the books at present amount to $1,3115062 50 
 
 On hand in Charleston, 12th February, 1821.103,458 00 
 
 Do. in Columbia, 31st January, 1821... 40,648 75 
 Add, sent to Columbia, on 30th January, not 
 
 included in their account, but acknowledged 
 
 on the 4th February 20,000 00 164,106 75 
 
 1,146,855 75 
 Branch at Greorgetown — _ _ 703 68 
 
 ^ow in circulation. 1,146,152 07 
 
 Deduct also balance against the Ofl&ce of Discount and 
 Deposite now lying in their hands, as we understand, 
 in our bills __ ._. 197,000 00 
 
 949,152 07 
 The Treasury of the State was indebted to this 
 
 Bank 395,571 24 
 
 Amount of sales of stock,on the 6th instant- .368,335 75 
 
 27,235 49 
 
 Sum really in circulation on account of the operations of 
 
 the Bank 921,916 58 
 
 STEPHEN ELLIOTT, President. 
 A. HENRY, Cashier. 
 Charleston, 12th Feb. 1821. 
 
 I. 
 
 Wednesday^ April 25, 1821. 
 Br. Cr. 
 
 To discounted notes out- iBy bills and silver recei- 
 
 standing $349,639 24 ved from Charleston, 
 
 To contingent expenses. 2,668 37| Bank, S. S. C $376,214 10 
 
 To balance in Cashier's jBy interest on discount- 
 hands— 69,355 08 ednotes.__ 11,353 99 
 
 I By individual deposits. 34,093 69 
 
 $421,661 39 
 
 JBranch Bank^ Chorgetown. 
 
 $421,661 69 
 W. W. TRAPIER, President. 
 J. SHACKELFORD, Cashier. 
 
REPORTS OF INVESTIGATING COMMITTEES. 119 
 
 K. ^ 
 
 General Statement of the Branch of the Bank of the State of South 
 
 Carolina. 
 
 Dr. Cr. 
 
 1821. Nov. 27. 
 
 To notes discounted ._ .$715,679 40 
 
 To bonds.- 27,339 15 
 
 To expenses.- 466 67 
 
 To cash on hand 140,837 98 
 
 By Bank State of South 
 
 Carolina... ..$777,274 59 
 
 By discount account — 6,780 1 1 
 
 By Treasury 50,256 34 
 
 By deposits .-_ 50,003 16 
 
 $884,314 20 $884,314 20 
 
 BENJ. HART, President. 
 WM. ED. HAYNE, Cashier, 
 
 (1821.) 
 
 FROM THE COMMITTEE OF THE HOUSE, APPOINTED IN 
 
 1820. 
 
 Your Committee, appointed at the last Session " to obtain, during the re- 
 cess of the Legislature, a general statement of the transactions of the Bank 
 of the State of South Carolina, signed by the President, and countersigned 
 by the Cashier ; to inspect the general account in the books of the Bank, 
 and report whether there has been any, and what, violation of the funda- 
 mental articles of the said Bank, its condition, the goodness of its debts, 
 and their opinion of the mode of its administration, whether beneficial or 
 otherwise ;" beg leave most respectfully to Report : 
 
 That in conformity with these requisitions, they have instituted the in- 
 quiry, and have now the honor of laying the result of their investigations 
 before this House. 
 
 Your Committee assembled at the Banking House, at Charleston, on 
 the 14th of February last, when they were met by the Committee of the 
 Senate. 
 
 It will be seen by the accompanying Exhibits, that " general statements 
 of the transactions of the Bank" have been obtained, and as all the objects 
 of the Resolution can be embraced under two enquiries, to wit : Whether 
 the charter of the Bank has been violated, and next, as to the condition of 
 the institution, whether prosperous or otherwise, your Committee will pro- 
 ceed in this order, to the contemplated discussion. 
 
 First : They could not discover that there has been any violation of the 
 charter. The requisitions of the Act of Incorporation appear to have been 
 complied with, and in no instance to have been transcended. The Bank to 
 them appeared to have pursued a course of financial policy, justified as well 
 by law, as the usages of similar institutions. As this conclusion has result- 
 ed from a careful comparison of the Act of Incorporation, with the opera- 
 tion of the Bank, as unfolded to your Committee, they deem it unnecessary 
 
120 REPORTS OF INVESTIGATING COMMITTEES. 
 
 to say more on this subject, as these operations will be necessarily exhibited 
 
 in the progress of this Report. 
 
 Next : As to the condition of the Bank at Charleston, your Committee 
 
 received the following exposition of the capital of the Bank : 
 
 United States Stock $577,250 13 
 
 Stock of the State Bank 316,893 57 
 
 Surplus in Treasury 393,693 56 
 
 Loan Office Bonds 59,147 98 
 
 Stock in Planters' and Mechanics' Bank 19^341 75 
 
 Old Duty Bonds, and sundries 4,457 85 
 
 Confiscated Estates 1,465 71 
 
 $1,372,250 55 
 Deduct for State 6 per cent, redeemed 1 76,029 95 
 
 $1,196,220 60 
 These several specifications of capital became the objects of the inquiry 
 of your Committee to ascertain at what time they resulted to the use of the 
 Bank, and the several vouchers by which their entries as capital were sus- 
 tained. 
 
 1. The amount of United States Stock, was ascertained to be the sum 
 which the Bank had received from this source : it was paid by the United 
 States, for the Revolutionary claims of this State. The first payment was 
 made on the 14th of January, 1813, and the last payment on the 23d of 
 January, 1819. 
 
 2. State Bank Stock. — It was discovered that 3,000 shares of the State 
 Bank had been transferred by the Legislature to the capital of the Bank, 
 of which number the Bank has sold two thousand and eighty shares, at an 
 average of about one hundred and eight and a half dollars per share. The 
 sales were examined by reference to the Broker's Books effecting them. 
 The Account sales were found correct ; and the amount of stock appeared 
 invariably to have been disposed of at the highest market price. Adding 
 to the amount of the sales the par value of the stock now on hand, the sum 
 of $316,893 57 will be produced. 
 
 3. Annual Surplus intJie Treasury. — The amount constituting this item, 
 the Bank received as follows : 
 
 On the 12th April, 1816 $18,651 45 
 
 " " 17thMay, 1817. _ 25,678 61 
 
 « " 25thMay, 1818 227,937 81 
 
 « " 6th April, 1819. __ 121,425 69 
 
 $393,693 56 
 
 The books of the Treasury were examined, and were found to correspond 
 with the entries made in the general account of the Bank, in relation to the 
 above particulars. 
 
 4. Loan Office Bonds. — This item was investigated by reference to the 
 books at the Treasury, and it was ascertained that the Bank has received 
 on this account, $59,147 98. 
 
 5. Planters' and Mechanics' Bank Shares. — Of this stock there were 
 transferred by the State to the Bank, eight hundred shares, which were 
 sold by the Bank at par. The Brokers' Account Sales were examined, and 
 it was ascertained that the sales effected were at the highest market price. 
 
REPORTS OF INVESTiaATING COMMITTEES. 121 
 
 6. It did appear that the Bank had received at different times on account 
 of Old Duty Bonds and suridries^ the sum of $4,457 85. 
 
 7. On Confiscated Estates^ the Bank received, say $1,465 71, as ap- 
 peared from the records of the Treasury. 
 
 The sum deducted from the capital (one hundred and seventy-six thou- 
 sand and twenty-nine dollars, ninety-five cents,) is the amount paid by the 
 Bank for the redemption of the State six per cent, stock : it being so far 
 an actual reduction of what was then the permanent debt of the State. 
 This has been duly vouched to the Legislature, by the Report of the State 
 Treasurer, bearing date 1st October, 1819. 
 
 All the vouchers establishing the capital were carefully examined, and 
 your Committee found its accumulation to have resulted as stated. In or- 
 der, however, to bring more fully to your view the progress by which such 
 accumulation has been produced, they beg leave to refer you to the Exhibit 
 marked A, in which the President of the Bank has very amply illustrated 
 the subject ; together with several other interesting details. 
 
 The investigation of the capital of the Bank having been concluded, 
 your Committee proceeded to examine its condition, as exhibited by its 
 weekly statement, brought up to the 12th February, 1821 — which will ap- 
 pear by reference to Exhibit B. Into this account a rigid scrutiny was 
 instituted. 
 
 The Discount Account was examined, the interest accruing on the bonds 
 due to the Bank, as well as all other items on the debit side of the 
 statement. The amount of discounts and interest was the profits of the 
 Bank, from the 1st October, 1820, to the 12th February, 1821. 
 
 Although there would appear by this Exhibit to have been at that time 
 issued by the Bank, notes to the amount of one million three hundred and 
 eleven thousand and sixty-two dollars, fifty cents, yet this sum was not ac- 
 tually in circulation. It included those notes which were prepared for is- 
 sue, as well as those actually out. The sum really in circulation was less 
 than a million : For which your Committee refer you to Exhibit marked 
 H. On the credit side of Exhibit B, your Committee have to submit the 
 following observations: 
 
 Bills and Notes Discmirded. — Under this item, we took occasion to as- 
 certain, according to your instruction, the goodness of the debts due to the 
 Bank. And after comparing the original notes with the entries in the 
 Bill Ledger, we called to our assistance a Director of the institution, whose 
 extensive acquaintance with Charleston and its vicinity, enabled him to 
 give us the most important information as to the solvency of its different 
 borrowers. This, added to the personal knowledge which some of your 
 Committee possessed on the same subject, enabled us to approach with 
 some confidence this difficult and delicate part of our inquiry. After going 
 through the whole Bill Ledger, calling over each name with those of the 
 respective endorsers, on each note, and collating all the information we se- 
 parately possessed or could collectively receive, we came to the conclusion, 
 that the sums due to the Bank, for notes discounted, outstanding, were al- 
 most universally well secured. At the period of this investigation there 
 was but one note for $2,000 which was deemed absolutely bad, and others 
 amounting to $4,150 doubtful. We have since had reason to believe that 
 the amount estimated as doubtful, ought to have been increased to at least 
 eight or ten thousand dollars. Subsequent events may prove that your 
 Committee have essentially underrated what may be the probable losses of 
 the Bank ; but from the lights which were actually before them, the/ were 
 16 
 
122 REPORTS OF INVESTIGATING COMMITTEES. 
 
 unable to come to any other than the above conclusion^ which is the result 
 of an unanimous opinion. 
 
 2. Notes in Suit. — Your Committee found the sum of $140,405 19 in 
 suit, of which about $15,177, may be considered as bad, and eight hundred 
 doubtful. 
 
 3. Boiuh and JS'hrtgages. — The original bonds were shown to us, and 
 the amount stated ascertained to be correct. In relation to this species 
 of loan the Bank appeared to have uniformly obtained all the certificates 
 accompanying the mortgages, which' the charter renders indispensable ; 
 and in relation to the goodness of this species of debts, but one bond, of a 
 very small amount, was regarded as either bad or doubtful. 
 
 All the other items in Exhibit B., were separately examined, in connec- 
 tion with all the sources from which they were derived. As they necessa- 
 rily result from the ordinary routine of Banking, your Committee think it 
 unnecessary to make any remarks, except on two or three of them. 
 
 TJte Bank Estate. — This comprises the sum paid for Banking Houses, 
 and their incidental improvements. The office at Charleston is a building 
 which unites convenience and durability, and possesses the advantages of 
 commercial location : it cost $18,000. The office at Camden cost $7,000. 
 The office at Georgetown cost $3,273 47. Total, $28,273 47. 
 
 Contingent Expcnae Accoitnt. — These accounts were laid before us, and 
 appear to have been regulated by a judicious economy. The Exhibits 
 marked C, in continuation, contain a statement of the expenses each 
 year, with the amount passed annually by the Bank to the credit of the 
 Treasury. 
 
 Cash. — All the several items under this specification, were scrupulously 
 examined, the specie weighed or counted, and the notes of the several Banks 
 looked over carefully, so that your Committee are entirely justified in say- 
 ing that the sum of $537,180 29, as credited in Exhibit B., was the amount 
 of cash on hand, 'on the 12th February, 1821. 
 
 Having thus investigated the Capital and stated Accounts of the Bank, 
 several subjects of miscellaneous inquiry were taken up : 
 
 1. It was desirable to ascertain the amount loaned each year by the 
 Bank, at Charleston and its Branches, in order that it might be discovered 
 whether the annual profits had been legitimately declared. For this pur- 
 pose, the Exhibit marked F., was procured, which illustrates this subject in 
 connection with the Exhibit marked C. 
 
 2. Whether proper deductions had been uniformly made from the pro- 
 fits each 3^ear for bad debts. By reference to the general Ledger of 
 the Bank, it did appear, that deductions had been invariably made, annu- 
 ally, as far as the losses could be ascertained. These losses are exhibited 
 in Exhibit marked E. 
 
 3. To know the average amount of Specie annually purcliased, with the 
 amount of premium paid for the same. For the details of this inquiry, 
 your Committee would refer you to the Exhibit marked D, whilst the Ex- 
 hibit marked G, unfolds the amount of specie on hand, from September, 
 1813, to February, 1821,, 
 
 4. To see what amount as interest on balance, had been paid by the Bank, 
 to the office of Discount and Deposite of the Bank of the United States. 
 This sum it was ascertained was equal to $3,817 16. 
 
 5. A general survey of the Books, to trace the entries through the dif- 
 ferent books and to test their correspondence as far as practicable. The 
 .Book of Cash Balances, Cash Book, Ledger of General Accounts, and Bill 
 
REPORTS OF INVESTiaATING COMMITTEES. 1-23 
 
 Ledger, were consequently examined, with all the attention we could devote 
 to this subject, and as far as our limited experience enabled us to form an 
 opinion, the Books appeared to be kept with neatness, accuracy and punc- 
 tuality. 
 
 Your Committee having devoted eight or ten days during the hours of 
 business, to the examination at the office at Charleston, adjourned to meet 
 at Georgetown, where they assembled on the 25th April, at whieh time the 
 Exhibit marked I, a general account of that Branch, was laid before them, 
 and formed the basis of its investigation. In conformity with the course of 
 proceeding adopted at Charleston, we examined each item separately, and 
 became satisfied of the accuracy of the whole account In making the scru- 
 tiny into the goodness of the debts, your Committee were essentially aided 
 by the accurate and extensive acquaintance of one of their number, with the 
 solvency of most of the borrowers. After availing themselves most amply 
 of this and other sources of information, they came to the conclusion, that the 
 bills due to this Branch were well secured, ror was it possible, after a most 
 diligent search, to discover but one note, to a smallamountjof eve&a doubt- 
 ful character. 
 
 The Contingent expense Account was investigated, and found correct, 
 whilst the disbursements appear to have been guided by a vigilant regard 
 to economy. The average contingent expenses are about $5,200. The 
 dividend or profits of the State, declared by this Branch, are from 5 1-2 to 
 6 per cent. 
 
 During the winter from 10 to 15 per cent, are required to be taken off 
 the notes every sixty days. Full renewals are granted annually in the 
 summer. 
 
 Your Committee next met at Columbia, on the 26th November, 1821, 
 when a general statement of the Brancli hea'e located, was presented to them, 
 as appears by exhibit marked K. Your Committee deem it merely requi- 
 site to observe that the account was found correct, in all its parts, and that 
 the same examination was employed as at the Bank of Charleston. They 
 conceived that the most important part of their labor, was to ascertain, as 
 far as feasible, the goodness of the debts due to this Branch ; and in taking 
 up the Bill Ledger with the original notes, they availed themselves of the 
 very best information which was to be obtained, in relation to this subject. 
 They were satisfied, from this examination, that the borrowers at this place 
 were persons generally of great pecuniary responsibility, and that the Direc- 
 tors had employed a highly commendable vigilance in strengthening the 
 Notes by requiring additional indorsements whenever any weakness was 
 discovered. 
 
 The amount of Notes under Protest, was fourteen thousand and six dol- 
 lars. The amount of Bonds in suit, equal to four thousand two hundred 
 and sixty eight dollars. From the information which your Committee ob- 
 tained, they are induced to believe, that rn the first of these cases the solven- 
 cy of the indorsers is unquestionable, and in the last, the Real Estates Mort- 
 gaged, are more than equivalent to the amounts due, except in one instance, 
 involving a small sum. The Contingent Expenses of the Branch appear to 
 have been brought within the compass of a discreet economy. As the Ac- 
 counts of this Branch were made up to October last, and transmitted to 
 the Bank at Charleston, this will account for the smallness of this item, in 
 the Exhibit marked K , 
 
124 REPORTS OF INVESTIGATING COMMITTEES. 
 
 The gross profits at this place were as follows : 
 
 On Notes $39,953 42 
 
 On Bonds 1,669 77 
 
 « — ' • 
 
 $41,623 19 
 Deduct for Expenses. - — 5,849 64 
 
 Clear profit $35,773 55 
 
 The average profit has been between 5 and 6 per cent. 
 Your committee would flatter themselves, from the copious exemplifica- 
 tions accompanying this report, this House will have before them a satis- 
 factory exposition of the affairs of the Bank, and are aware of but one 
 other subject to which public curiosity will be directed, to wit : the amount 
 borrowed by the Directors and Officers of the parent Bank, and its branch- 
 es, which is unfolded by the following statement. 
 12th February, 1821, amount due the Bank by the Directors 
 
 and Officers at Charleston $181,114 
 
 25th April, 1821, amount due the Bank by the Directors 
 
 and Officers at Georgetown 83,088 
 
 27th November, 1821, amount due the Bank by the Direct- 
 ors and Officers at Columbia 99,160 
 
 Total $363,362 
 
 If this amount in the aggregate should seem to be large, your committee 
 have to assure you, that these loans appear to have been as well secured as 
 any other which the Bank had negotiated. At Charleston and Georgetown, 
 no Director of the Bank is permitted to indorse for his co-director — a rule 
 to which we found an invariable adherence. The indorsers on the notes of 
 the officers of the Bank and Directors, were personally known to most of 
 your committee, and are deemed fully responsible for the sums for which 
 they are respectively bound. It ought, moreover, to be remarked, that Di- 
 rectors of a particular Bank obtain from other institutions accommoda- 
 tions with less facility than other individuals ; and thence, if they are ex- 
 tensively in business, they are under the necessity of applying'frequently 
 for loans to the Bank over which they preside. The rule adopted by the 
 Bank, which has been stated, is perhaps the most salutary that could be de- 
 vised. 
 
 In recurring to the inquiry, "whether the mode of the administration of 
 the Bank has been beneficial or otherwise," which forms one of the precepts 
 in the resolution under which your committee have acted, they think, from 
 the whole tone and tenor of this report, it is abundantly evident, that in 
 their opinion, its condition is prosperous, its administration has been wise, 
 and its prospects encouraging. 
 
 Among the advantages, the Bank is the consolidation of the surplus 
 wealth of the public Treasury, in an aggregate of easy evolution, and suc- 
 cessful employment. It has given activity and circulation to riches which 
 would otherwise have been inert and unproductive. The surplus of taxes, 
 which has been paid by the people, has come back to them in the shape of 
 an increased circulation, affording facility to labor, and incitement to in- 
 dustry. 
 
 ^ To the State, the Bank has afforded, on emergencies, tlie most essential 
 aid, by advancing its funds at the very moment when they were most requir- 
 
REPORTS OF INVESTIGATING COMMITTEES. 125 
 
 cd, from exigencies for wliicli no calculation had been formed. The ad- 
 vances made by the Bank for the internal improvements, in 1820, and the 
 facilities it afforded to this State, for the assumption of the direct taxes of 
 1814, '15 and '16, by which the sum of $91,143 28 cts. were saved, are 
 pointed illustrations of this truth. 
 
 With this view, your committee are not insensible to the risk which the 
 State has incurred, of placing at the disposal of a certain number of per- 
 sons the disposition and appropriation of its wealth, under circumstances 
 where the instinct of self interest must have but a limited operation. 
 Whilst they recognize in the fact of the able and beneficial administration 
 of the Bank, the most proud and consoling testimonies of the public virtue 
 of our fellow citizens, to whom its affairs are confided, they are yet alive to 
 the undeniable truth, that those duties are best performed, which are most 
 intimately interwoven with our individual interest. Should the period 
 therefore arrive, when there shall be an increased demand for capital at 
 Charleston, and other flourishing points of our State, by permitting the 
 subscription of private stockholders to such an increase of capital, and giv- 
 ing them relatively a larger representation in the Board, it must be obvi- 
 ous that the management of the institution would, in all probability, pass 
 into the hands of those who, to public spirit, would add the energy of a 
 principle which has made man what he is, through all the modifications of 
 civilized existence. It is not in this view alone, that this consideration 
 becomes interesting. It is possible the time may arrive, when it shall be 
 the policy of this State to decline all participation in the operations of 
 banking. We should then possess the facility of selling out our interest 
 in this institution, at a most profitable advance. An advance perhaps 
 equivalent to the whole remaining debt of the State, which would impose 
 upon individuals who are best able to accomplish it, the onerous, and to a 
 public and political body, often inefficacious task of collecting and receiv- 
 ing outstanding debts and claims. 
 
 Your committee feel that they are transcending the letter of their in- 
 structions. If they were permitted to recommend any alteration of the 
 charter, they would suggest the propriety of rendering one-fourth of the 
 directors annually ineligible. This might have a tendency to check any 
 undue accumulation of loans to them, whilst the objection to such changes, 
 in private institutions, are not so immedialely applicable to a Bank so con- 
 stituted as the Bank of the State of South Carolina. 
 
 Your committee are far from recommending, as a matter of Legislative 
 enactment, a positive precept to the Bank, to call in at least one-fourth of 
 its debts annually, if the customary reductions are not made on outstand- 
 ing notes every sixty days. They are aware that such regulations might 
 be inconvenient and unwise. But there can be no impropriety in an une- 
 quivocal expression of an opinion that this policy, as far as practicable, with- 
 out unnecessarily embarrassing the borrowers, is altogether expedient. 
 Such a practice would be an annual test of the solvency of the borrowers, 
 and by a more active diffusion of capital, enlarge the sphere of the utility 
 of the Bank, and counteract any proclivity it might have to degenerate into 
 a mere loan office. This suggestion is not founded on any instances which 
 have occurred, of excessive indulgence, but has a prospective relation. 
 
 Your committee cannot close this communication, without acknowledg- 
 ing the great facilities afforded by the officers of the Bank and its branch- 
 es, during the progress of their examination. Every call for information 
 was promptly answered, with an amplitude the most satisfactory, and pre- 
 
12() KEPOllTS OF INVESTIGATING COMMITTEES. 
 
 cise. Of the gentleman who has so long presided over the institution, 
 with a parent's zeal and solicitude — who has successfully carried the lights 
 of genius, literature and taste, into a pursuit essentially partaking of the 
 dryness of the exact sciences — whose character is a bright and unsullied 
 ornament to our State — your committee are unable to express the sense 
 they entertain of the distinguished ability and unwearied devotion he has 
 applied to the high trust confided in him. It is enough to say, that with 
 him the Bank is safe. 
 
 During the investigation at Cliarleston and at Georgetown, your com- 
 mittee were so fortunate as to have the aid of the valuable services of Mr. 
 George Butler, from whose assistance they had sanguinely promised them- 
 selves additional usefulness during the examination at Columbia. But that 
 calamity which is the inevitable condition of man, has taken him from us, 
 and his country, to whose service he brought the purity and ardor of an 
 ingenuous character, the intelligence of a well disciplined mind, and the 
 firmness of a fearless and independent spirit. 
 
 JAMES HAMILTON, Jr., 
 
 Chairman of tlie Bank Committee of tJie House of Rejn-esentdtives. 
 
 Columbia, Dec. 31, 1821. 
 
 [For tlie Exhibits referred to in tlie above repent, see copies of the same, in the prece- 
 ding report of the Senate ] 
 
 (182.5.) 
 FBOM THE COMMITTEE APPOINTED IN 1824. 
 
 The committee of the Legislature, appointed at its- last session, " to ex- 
 amine minutely into the affairs and situation of the principal bank, and to 
 report the result thereof, and particularly all mismanagement in the affairs 
 of the said Bank, if any such have occurred," respectfully report : 
 
 That in pursuance of the directions of the Legislature, they have care- 
 fully inquired into and investigated the aff'airs and situation of the Bank 
 of the State, in the City of Charleston, and all its transactions subse- 
 quent to the 3d December, 1821, when an able and detailed report of the 
 proceedings of the institution, from its establishment to that date, was made 
 to the Legislature by a committee appointed for that purpose. 
 
 Your committee convened early in June last, and after some inquiry into 
 the affairs of the Bank, thought it advisable to suspend their examination 
 until after the expiration of the fiscal year, that they might present to the 
 Legislature, as late a view as practicable, of the affairs and situation of 
 the institution. This information was communicated to the Comptroller 
 General early in October, and your committee, in pursuance of their ad- 
 journment, met on the third Monday in the same month, and after direct- 
 ing the requisite papers to be prepared for their inspection, adjourned to 
 the lOtli, when they commenced their examination, which occupied their at- 
 tention during the usual business hours, for twelve days. After taking a 
 general view of the transactions of the Bank, they proceeded to examine its 
 
REPORTS OF INVESTIGATING COMMITTEES. ]27 
 
 condition as exhibited in '■'• the weekly statement of its aifairs," laid before 
 the Board of Directors on the 1 7th of October, (a copy of which marked 
 A, is hereunto annexed,) and carefully and minutely investigated every 
 item, examined the vouchers and compared them with the respective en- 
 tries, and found them in every instance, to correspond. Some of these 
 items your committee consider it their duty to bring more particularly to 
 the view of the Legislature. And • 
 
 1st. Bank Cajyital. The clause in the charter, which required all bal- 
 ances in the Treasury, on the 1st April in each year, to be transferred to 
 the Bank, was repealed on the 18th day of December, 1819, and no addi- 
 tion has been since made to the capital of the Bank, which is now, as at 
 the date of the former report, $1,196,2:^0 65. The stock and other funds 
 transferred to the Bank by the State, and constituting this amount, have 
 been from time to time disposed of, and the money received by the Bank. 
 The capital may now, therefore, properly be considered a money capital, 
 without reference to the sources from which it was derived. 
 
 2d. Discou'M Accounts. Since the date of the former report, (December, 
 1821,) the Bank has passed to the credit of the State the following sums, 
 being the profits of the several years, after deducting from each the amount 
 of bad debts then ascertained, viz : 
 
 For the year ending 30th Sept. 1822, this amount $120,072 18 
 
 " " " " 1823, " 113,207 61 
 
 " " '• " 182-4, " 116,350 58 
 
 " " " " 1825, " 115,042 96 
 
 In investigating this account, it appeared that the Bank since its estab- 
 lishment, has paid to the State the sum of $279,909 99, over and above 
 seven per cent, on all the funds at any time placed at its disposal, as is more 
 particularly shown in exhibits marked B and C, hereunto annexed. From 
 this statement, it results that the connection of the State with this insti- 
 tution, whatever may be its future fortunes, has been heretofore profitable. 
 3d. Bank Notes issued. Under this head, your committee considered it 
 their duty to ascertain the whole amount of bills that had been at difierent 
 times issued by the Bank — what portion was in the Bank, or had been de- 
 stroyed by the Bank ; and found, that on the 17th October, 1825, the to- 
 tal amount issued was $1,728,420, from which must be deducted the 
 amount in the principal Bank, $401,048, and the amount in the several 
 branches, which will be reported by other committees. See exhibit 
 marked D. 
 
 Your commitee next proceed to the examination of the funds held by 
 the parent Bank ; and 
 
 1 St. Cash'ufs and Teller'' s Accoif/nt. Under this head, your committee 
 ascertained, by counting and weighing, that there was in the vaults of this 
 Bank, under the charge of Cashier, on the 1 7th October, 
 
 In Specie, $151,787 03 
 
 In Bank Notes, 379,275 25 
 
 Teller's Account, 73,469 26 
 
 $604,531 54 
 
 2d. Bonds and Mortgages. This item, amounting to $63,682 61, your 
 committee also examined, and found that the bonds and mortgages, in eve- 
 ry instance, had been taken in strict conformity to the requisitions of the 
 charter, and that of the amount so loaned, only one bond for $500, with 
 
128 REPORTS OF INVESTiaATlNG COMMITTEES. 
 
 interest from 1 st March, 1817, could be considered of doubtful character ; 
 and for the security of this debt, the Bank holds a mortgage of 1 ,700 acres 
 of land. This land, from the depreciation of every species of property, 
 cannot now be disposed of advantageously, but it is presumed, will eventu- 
 ally be sufficient for the discharge, if not of the whole, of a very considera- 
 ble proportion of the debt. No great loss is anticipated. 
 
 3d. Bills and Notes discounted. This, by far the most important item, 
 whether considered as involving the solvency of the institution, or implica- 
 ting the conduct of the Directors, demanded from your committee, and re- 
 ceived the most deliberate and minute inquiry. They examined the " Bill 
 Ledger," the book containing the name of each debtor of the Bank, the 
 amount due by each, and the name of the indorser on each note, and found 
 there was due to the Bank, this amount, $1,043,301 52. To ascertain 
 what portion of this sum was to be considered as sufficiently secured, and 
 what either bad or doubtful, your committee called over the name of each 
 debtor, ascertained the amount due by each, and the name of the indorser 
 on each amount ; and after a patient and minute investigation, came to the 
 conclusion, and beg to report, that in their opinion, the sum of $934,728 
 may be considered as at present secured ; the sum of $45,654 as doubtful; 
 and the sum of $62,920 as bad. Of the notes discounted by the branches, 
 other committees will report. To the parent Bank the researches of this 
 committee were confined. 
 
 Bills and Notes in suit. This item was considered and examined in con- 
 junction with the one immediately preceding, and your committee would 
 merely observe, by way of explanation, that many of the suits were insti- 
 tuted, not from any doubt of the solvency of the debtors, but in conse- 
 quence of the death of some of the parties, which rendered it impracticable 
 to continue the renewal of the notes, without incurring a responsibility the 
 Bank were unwilling to assume. 
 
 Of the debts stated as doubtful, a considerable portion will be eventual- 
 ly received, and even of the amount estimated as bad, it is not doubted a 
 part will be eventually recovered. 
 
 Having gone through the examination of these items, your committee 
 proceeded to the next enquiry submitted to them, whether there had been 
 any mismanagement in the affairs of the Bank, on which your committee 
 were directed to report particularly. By the provisions of the charter, 
 among other things, the Bank is authorized to loan money on notes with 
 two or more good names. This requisition, although in some instances not 
 strictly enforced, has been considered by the Board as substantially com- 
 plied with, when the note taken was amply secured by one of the parties, 
 either drawer or indorser, without a strict reference to the solvency of the 
 other. Whatever countenance this practice may derive from the usages of 
 other banking establishments, your committee are of opinion, that it is a 
 departure as well from the spirit as the letter of the charter, and that it 
 has, in several cases, been attended with consequences injurious to the in- 
 terests of the institution. 
 
 Directors'' Accounts. As much has been said of the facility with which 
 loans are acquired by Directors themselves, and by others through their 
 influence and mismanagement, either charged or inferred from the amount 
 so loaned, it became the duty of your committee to examine the accounts 
 of the individuals who had at any time subsequent to December, 1821, 
 
REPORTS OF INVESTiaATING COMMITTEES. 129 
 
 managed the aiFairs of the institution, and they beg to report, that there 
 was due to the Bank by the Directors : 
 
 For December, 1 822, this amount, $ 1 5 1 ,404 
 " " 1824, " 117,515 
 
 « " 1825, " 121,333 
 
 In the course of this investigation, it appeared to your committee, and 
 they feel it incumbent on them to state, that of the losses incurred by the 
 Bank at different times, \^ far the greater portion can be traced to the fa- 
 cility possessed by the directors, by their seat at the Board, of obtaining 
 for themselves, and in many instances for others, loans which, under other 
 circumstances, their pecuniary responsibility would not have entitled them 
 to receive. In making this statement, your committee beg it may be dis- 
 tinctly understood, that it is not their intention to impute to the Directors 
 generally, any species of impropriety ; on the contrary, they are fully 
 aware of the important services rendered by a great majority of those 
 who, at differrent periods, have served the State in this responsible and 
 honorable situation. 
 
 It must be evident that the prosperity and future usefulness of the 
 Bank, depends materially on the integrity, prudence and ability, of those 
 who manage its concerns. This trust is confided to Directors, annually 
 elected by the Legislature. From the manner in which that election is 
 sometimes managed, your committee fear the selection is made without a 
 sufl&cient knowledge of the qualifications, responsibility and character, of 
 the individuals offered as candidates. Your committee would recommend 
 that some plan be adopted, to afford the Legislature more time for acquir- 
 ing the requisite information. They respectfully submit, whether it would 
 not be advisable, either to appoint a joint committee to nominate fit and 
 proper persons for this important trust, or that the several committees ap- 
 pointed by the Legislature to investigate the affairs of the parent Bank 
 and its branches, be charged with the duty of presenting with their report, 
 a list of proper persons, from which list all vacancies that may occur shall 
 be filled. 
 
 In closing this report, your committee have great pleasure in stating, 
 that during the course of their tedious and protracted examination, they 
 received from the Cashier and other officers of the Bank invariably, the 
 most prompt and zealous attention to every call for papers or information. 
 And they consider it incumbent upon them, particularly to express their 
 unqualified approbation of the conduct of the distinguished individual who 
 presides over the institution. The zeal and ability with which he has dis- 
 charged the various and arduous duties of his office, entitle him to the 
 confidence and approbation of the Legislature. 
 
 Your committee have subjoined sundry documents, marked E, F, G- and 
 H, explanatory of the transactions of the Bank, in many particulars not 
 detailed in this report, to which they beg to refer. 
 
 Signed and submitted by order of the committee. 
 
 HENRY DEAS, Cliairman. 
 
 17 
 
130 EEPORTS OF INVESTIGATING COMMITTEES. 
 
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REPORTS OF INVESTiaATING COMMITTEES. 131 
 
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132 BEPOBTS OF INVESTIGATINa COMMITTEES. 
 
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REPORTS OF INVESTIGATma COMMITTEES. 133 
 
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134 REPORTS OF INVEST laATING COMMITTEES. 
 
 C. 
 Statement of the Profits of the Bank. 
 
 The following table will show that whatever may be the future fortunes 
 of the Bank of the State of South Carolina, no pecuniary loss has as yet 
 been sustained by the State in consequence of its establishment. 
 
 The Capital assumed for each year as the "Average Capital," is a mean 
 term between the amount possessed on the 1st October in one year, and 
 that acquired by the 1st October, in the ensuing year. 
 
 Average Capital for the Years end- 
 ing the 1st October^ 
 
 iJnterestat 7 
 per ct. 
 
 1814 
 
 1815. 
 
 1816 
 
 1817. 
 
 1818._-.:-- 
 
 1819. 
 
 1820 
 
 1821. -- 
 
 1822... 
 
 1823. Capital 
 Sinking fund. 
 
 1824. Capital 
 Sinking fund. 
 
 1825. Capital 
 Sinking fund 
 
 179,223 
 297,353 
 391,809 
 583,926 
 
 46 
 68 
 39 
 35 
 
 887,872 59 
 1,124,543 37 
 1,196,220 65 
 1,196,220 65 
 1,196,220 65 
 1,196,220 65 
 93,811 06 
 
 1,290,031 71 
 
 1,196,220 65 
 
 152,253 
 
 00 
 
 L,348,473 65 
 
 1,196,220 65 
 208,441 58 
 
 1,404,662 23 
 
 12,545 64 
 
 20,814 75 
 
 27,432 32 
 
 40,874 84 
 
 62,151 07 
 
 78,718 03 
 
 83,735 44 
 
 83,735 44 
 
 83,735 44 
 
 90,302 21 
 
 94,393 15 
 
 98,326 35 
 
 Arnt. paid to 
 the Treasury. 
 
 3,325 21 
 
 48,900 76 
 
 63,022 69 
 
 76,507 91 
 
 105,838 07 
 
 107,593 95 
 
 100,287 37 
 
 86,525 38 
 
 120,072 18 
 
 113,207 61 
 
 116,450 58 
 
 115,042 9616,716 61 
 
 Profit above 
 7 per cent. 
 
 9,220 43 
 
 28,086 01 
 
 35,590 37 
 
 35,633 07 
 
 43,687 00 
 
 28,875 92 
 
 16,551 93 
 
 2,789 94 
 
 36,336 74 
 
 22,905 40 
 
 21,957 42 
 
 Loss. 
 
 Profit,--- $289,130 42 
 
 Deduct Loss, 9,220 43 
 
 Balance, $279,909 99 
 
 In the first year of its operations, the whole outfits of the Bank were dis- 
 charged out of the profits. This caused the nett returns of the year 1814 
 to be so small. 
 
 In the three last years an allowance has been made for the Sinking Fund. 
 For although not making a part of our capital, the Bank was permitted to 
 employ it, and therefore may be fairly required to make some allowance for 
 its use. 
 
 After, however, charging the Bank with 7 per cent, interest for the amount 
 of the Sinking Fund, and its own immediate capital, it will be seen that it has 
 yielded to the State (after having defrayed all its expenses, and deducted all 
 the bad debts which have yet been declared,) a surplus profit of two hundred 
 and seventy-nine thousand nine hundred and nine dollars ninety-nine cents. 
 
 STEPHEN ELLIOTT, President. 
 
KEPORTS OF INVESTIGATING COMMITTEES. 135 
 
 D. 
 
 Statement of the issues of the Bank. 
 
 From the books of the Bank it appears that since the first establishment 
 of the Bank, until the 17th October, 1825, there have been issued : 
 
 Bills of one hundred dollars to the amount of 
 
 There have been cancelled and destroyed, at different 
 
 times, of this sum, bills to the amount of 
 
 Leaving in circulation of this denomination, 
 
 Bills of twenty dollars to the amount of- 
 
 There have been cancelled and destroyed, at different 
 
 times, of this sum, bills to the amount of 
 
 Leaving in circulation of this denomination 
 
 Bills of ten dollars, to the amount of 
 
 There have been cancelled and destroyed, at different 
 
 times, of this sum, bills to the amount of 
 
 Leaving in circulation of this denomination 
 
 Bills of five dollars, to the amount of 
 
 There have been cancelled and destroyed, at different 
 
 times, of this sum, bills to the amount of 
 
 Leaving in circulation of this denomination, 
 
 Bills of two dollars, to the amount of 
 
 There have been cancelled and destroyed, at different 
 
 times, of this sum, bills to the amount of. 
 
 Leaving in circulation of this denomination, 
 
 Bills of one dollar, to the amount of 
 
 There have been cancelled and destroyed, at different 
 
 times, of this sum, bills to the amount of 
 
 Leaving in circulation of this denomination, 
 
 680,000 
 
 590,000 
 
 768,000 
 260,000 
 480,000 
 105,000 
 476,000 
 172,000 
 393,600 
 182,300 
 226,800 
 162,900 
 
 Amount of issues on the 17th October, 1825, accord 
 ing to the general statement of the Bank on that day 
 
 Bills under the denomination of one dollar have been 
 issued to the amount of 
 
 There have been cancelled and destroyed, at different 
 times, of this sum, bills to the amount of 
 
 Leaving in circulation, of change bills, 
 
 T'Otal amount of issues on the 17th Oct., 1825. 
 
 90,000 
 
 508,000 
 
 375,000 
 
 304,000 
 
 211,300 
 
 123,900 
 
 217,637 18 
 
 101,417 18 
 
 1,612,200 
 
 116,220 
 
 1,728,420 
 
 From this amount must, of course, be deducted the amount in this Bank 
 on the 17th Oct., when the Committee made their examination, and also 
 the amount of bills in the different branches of the Bank at the same period. 
 It will appear, on reference to the statements made by the Committee, that 
 the greater part of the bills in the Bank were those of the largest denomi- 
 nation, which were sealed up as withdrawn from circulation ; and the Bank 
 is at present steadily pursuing the system of withdrawing from circulation 
 every bill above the amount of ten dollars, perhaps of five. 
 
136 EEPORTS OF INVESTIGATING COMMITTEES. 
 
 E. 
 
 ExhUnt of the monthly amount of Specie in the vault of the Bank of the State 
 of South Carolina from February 1821,^o Septernber IS25, inclusive. 
 
 1821 February, $328,455 
 
 March, 327,855 
 
 April, 518,084 
 
 May, 526,158 
 
 June, 554,883 
 
 July, 551,133 
 
 August, 551,133 
 
 September, 546,133 
 
 October, 546,133 
 
 November, 544,893 
 
 December, 547,893 
 
 1822 January, J 445,893 
 
 February, 537,493 
 
 March, 534,493 
 
 April, 492,203 
 
 May, 480,768 
 
 June, 476,068 
 
 July, 473,738 
 
 August, 465,463 
 
 September, 461,470 
 
 October, . 410,280 
 
 November, 408,022 
 
 December, 322,322 
 
 1823 January, 320,322 
 
 February, . 317,122 
 
 March, 317,077 
 
 April, 257,077 
 
 May, 225,077 
 
 90 
 90 
 
 72 
 86 
 72 
 72 
 72 
 72 
 72 
 72 
 72 
 72 
 72 
 72 
 72 
 72 
 72 
 72 
 72 
 88 
 
 1823 June, __, 
 
 July, 
 
 August, 
 
 September, 
 
 October, 
 
 November, 
 
 December, 
 
 1824 January. 
 
 February, 
 
 March, 
 
 April, 
 
 May, 
 
 June, 
 
 July, 
 
 August, 
 
 September, 
 
 October, 
 
 November, 
 
 December, 
 
 1 825 January, 
 
 February, 
 
 March, 
 
 April, 
 
 May, 
 
 June, 
 
 July, 
 
 August, 
 
 September, 
 
 A. HENRY, 
 
 190,077 88 
 189,077 88 
 188,877 88 
 188,877 88 
 188,877 88 
 188,877 88 
 193,582 88 
 193,582 88 
 163,582 88 
 170,855 88 
 170,855 88 
 170,855 88 
 170,725 88 
 177,432 88 
 177,432 88 
 188,820 88 
 143,691 12 
 143,691 12 
 106,531 98 
 110,768 98 
 112,268 98 
 112,268 98 
 112,208 98 
 112,158 98 
 113,158 98 
 113,759 28 
 149,890 03 
 154,787 03 
 
 Cashier, 
 
REPORTS OF INVESTiaATING COMMITTEES. 137 
 
 Of discounted Notes of tlie Bank of tlie State of South Carolina^ and its 
 Branches — Monthly, from October 1821, ^o October 1825. 
 
 Year and Month. 
 
 Charleston. 
 
 Columbia 
 
 Georgetown. 
 
 Camden. 
 
 Total Amount. 
 
 1821. February, .... 
 
 i929,281 20 
 
 625,534 00 
 
 309,103 c7 
 
 
 1,81)3,918 77 
 
 March, 
 
 1,004,899 88 
 
 615,846 40 
 
 330,097 79 
 
 
 1,950,844 08 
 
 April, 
 
 May, 
 
 1,024,801 31 
 
 860,785 48 
 
 367,427 87 
 
 
 2,053,014 66 
 
 990,148 13 
 
 693,397 10 
 
 39.3,199 08 
 
 
 2,078,744 31 
 
 June, 
 
 966.740 45 
 
 702,886 75 
 
 403,476 73 
 
 
 2,073.103 93 
 
 July, 
 
 979,931 54 
 949,530 03 
 
 708,400 45 
 
 405,665 73 
 
 
 2,093,997 73 
 2,067,043 13 
 
 August, 
 
 712,593 05 
 
 405 820 05 
 
 
 September,. ,. 
 
 948,617 61 
 
 709,673 60 
 
 407,693 57 
 
 
 2,065.984 78 
 
 October, 
 
 959,947 77 
 
 707,587*40 
 
 411,282 15 
 
 
 2,078,677 53 
 
 November.. ., 
 
 998,354 17 
 
 706,447 60 
 
 412,911 36 
 
 
 2,117,852 93 
 
 December, 
 
 1,018,593 62 
 
 701,841 78 
 
 415,081 14 
 
 
 2,1.%,516 54 
 
 1822. January 
 
 1,017,003 291 699,425 00 
 
 422,470 48 
 
 
 2,138,898 77 
 
 Febx'uary, .... 
 
 1,050,646 081685,609 00 
 
 424.042 35 
 
 
 2,160,297 38 
 
 March, 
 
 1,111,016 63 
 
 672.963 64 
 
 441,715 84 
 
 
 2,225,696 11 
 
 April, 
 
 1,149,883 91 
 
 668;024 64 
 
 446.115 27 
 
 
 2,264,028 82 
 
 May, 
 
 1,158.657 24 
 
 671,551 58 
 
 452,475 88 
 
 
 2,284,084 79 
 
 June, 
 
 1,129,323 86 
 
 685,864 34 
 
 452,448 15 
 
 
 2,267,636 35 
 
 July, 
 
 1,140,454 37 
 
 693,605 6G 
 
 421,045 01 
 
 
 2,2.55,105 04 
 
 August. 
 
 1,161,282 73 
 
 696,112 93 
 
 420,951 77 
 
 
 2,278,347 43 
 
 September,. .. 
 
 1,149,159 86 
 
 694,586 79 
 
 421,051 77 
 
 
 2,264,798 42 
 
 October, 
 
 1,191,270 961697,368 60 
 
 442,091 26 
 
 
 2,330,730 83 
 
 November, . . . 
 
 1,045,782 35 692,741 15 
 
 444.301 19 
 
 
 2,382,824 69 
 
 December, 
 
 1,265,577 87 
 
 687,727 15 
 
 446,256 19 
 
 33,079 71 
 
 2,432,640 92 
 
 1823. January 
 
 1,268,740 62 
 
 670,817 62 
 
 447,292 72 
 
 75,357 26 
 
 2,462,208 23 
 
 February, .... 
 
 1,290,450 32 
 
 673,023 46 
 
 449,757 67 
 
 111,142 26 
 
 2,524,373 71 
 
 March, 
 
 1,268,856 42 
 
 668.930 10 
 
 453,918 67 
 
 132,383 -.3 
 
 2,524,081 98 
 
 April, 
 
 1,237,089 24 
 
 676,985 91 
 
 45fi,855 28 
 
 134 525 08 
 
 2,.505,454 51 
 
 May, 
 
 1,216,650 93 
 
 687,037 26 
 
 459,17(5 91 
 
 150,653 07 
 
 2,513,524 17 
 
 June, 
 
 1,187,974 06 
 
 700,894 16 
 
 465,15-5 49 
 
 163,193 78 
 
 2,517,218 49 
 
 July, 
 
 1,154,200 33 
 
 701,251 05 
 
 465,152 49 
 
 180,842 36 
 
 2.501,452 23 
 
 August, 
 
 1,133,494 01 
 
 704,917 15 
 
 465,022 49 
 
 181,829 50 
 
 2;585,263 15 
 
 September,. .. 
 
 1.128,532 85 
 
 701,040 53 
 
 500,171 67 
 
 180.742 67 
 
 2,510,487 72 
 
 October, 
 
 1,132,344 61 
 
 7t)4,l35 90 
 
 500,445 67 
 
 180.552 77 
 
 2,517,478 95 
 
 November, . . . 
 
 1,152,178 82 
 
 691.983 90 
 
 502,469 92 
 
 208.177 76 
 
 2,-554,810 40 
 
 December, . . . 
 
 1,147,703 77 
 
 684,223 21 
 
 502,305 50 
 
 219,621 81 
 
 2,555,854 29 
 
 1824. January, 
 
 1,145,493 05 
 
 695,459 37 
 
 512.711 20 
 
 219,180 97 
 
 2,573,814 59 
 
 February, 
 
 1,149,579 56 
 
 697,175 46 
 
 529.715 15 
 
 232,384 21 
 
 2,608,8.54 38 
 
 March 
 
 1,124,606 01 
 
 696,437 16 
 700,472 92 
 
 5:3,518 22 
 
 234.686 23 
 
 v,579,247 62 
 
 April, 
 
 1,095,222 83 
 
 529,774 72 
 
 249,000 .58 
 
 3,574,471 05 
 
 May, 
 
 1,087,757 38 
 
 714,895 86 
 
 534,510 76 
 
 253,068 55 
 
 2,590,232 55 
 
 June, 
 
 1,095,308 49 
 
 752,051 61 
 
 335,544 20 
 
 259.037 04 
 
 2,046.941 34 
 
 July, 
 
 1,143,486 21 
 
 78i;^97 72 
 
 534,673 15 
 
 267,569 85 
 
 2,727,025 54 
 
 August, 
 
 1,155,819 06 
 
 795,407 95 
 
 534,292 35 
 
 265,518 36 
 
 2,751,037 73 
 
 September, . . . 
 
 1,134,325 93 
 
 810,516 12 
 
 534,5(54 35 
 
 274,625 40 
 
 2,754,031 80 
 
 October, 
 
 1,107,346 10 816,471 64 
 
 536,319 28 
 
 284,747 •J5 
 
 2,744,884 97 
 
 November,. .. 
 
 1,092,349 50 
 
 815,310 81 
 
 536.995 28 
 
 300,892 42 
 
 2,745,548 01 
 
 December, . . . 
 
 1,071,100 49 
 
 796.994 75 
 
 536,043 78 
 
 328,254 86 
 
 2,732 393 88 
 
 1825. January, 
 
 1,039,103 82 
 
 786,917 :i7 
 
 529,282 53 
 
 335,627 77 
 
 2,690,841 54 
 
 February, .... 
 
 I,('30,l27 24 
 
 780,194 82 
 
 522,775 87 
 
 340,045 23 
 
 2,673,143 16 
 
 March, 
 
 1,029,883 17 
 
 779,153 62 
 
 531,170 70 
 
 353,574 52 
 
 2,693,782 01 
 
 April, 
 
 May, 
 
 1,037,602 08 
 
 780,869- 49 
 
 534,964 61 
 
 343,801 68 
 
 2,697,297 86 
 
 1,067,445 92 
 
 785,379 87 
 
 536.909 77 
 
 253,8.54 00 
 
 2,743,489 56 
 
 June, 
 
 1,075,854 27 816,353 68 
 
 54,>;i59 05 
 
 346.4 16 31 
 
 2,778,413 31 
 
 July, 
 
 1,079,317 99 823,516 00 
 
 542,328 75 
 
 346,439 70 
 
 2,791,701 44 
 
 August, 
 
 1,059.077 54 832,940 l3 
 
 541,513 30 
 
 354,623 67 
 
 2,788,154 64 
 
 September,,. . . 
 
 1,051,428 29 
 
 846,419 39 
 
 547.111 30 
 
 366,271 01 
 
 2,811,229 99 
 
 Charleston, October, 1825. 
 18 
 
 A. HENRY, Cmshia- 
 
138 REPOETS OF INVESTIGATING COMMITTEES. 
 
 G. 
 
 Dear Sir : — With regard to your enquiries as to the "bad and doubtful 
 debts of the Bank, and the influence which they may produce on the busi- 
 ness or capital of the institution, permit me to make the following observa- 
 tions : 
 
 I mean not to speak of the debts themselves, of the propriety of the 
 original loans, of the circumstances under which they were made, or to jus- 
 tify or apologise for those under whose administration these debts have 
 been created, or I might show that much the greater part were contracted 
 when the parties were in good credit, and when their apparent means were 
 sufficient to discharge much greater debts than those due to this institu- 
 tion ; and I might add, that much of these apparent means, much of the 
 property held by these parties, would have been applied in payment of the 
 debts due to this institution, but the laws of our country permit partial as- 
 signments, and allow debtors to favor those of their creditors whom they 
 choose to prefer, and those from whose favor, in return, they expect future 
 advantage. I will speak of these debts as they are reported. 
 
 Let me premise, however, that several of these debts are of long standing, 
 that they have not been transferred to the profit and loss account in past 
 years, because there was some property in possession of the Bank, or mort- 
 gaged to it, which it was necessary to dispose of, before the actual amount 
 of loss could be ascertained, and because for the last four years it has been 
 difficult in the low country to dispose of real estate, except at great, and we 
 yet hope, unreasonable sacrifices. We were aware of the existence, and 
 doubtful character of these debts on our books, and were anxious to make 
 provision for them, but until the value of the assets in our hands was as- 
 certained, the real amount to be carried to profit and loss could not be de- 
 termined. It has thus happened, that there is accumulated at one point, 
 and at the present moment, what ought to have been distributed through 
 several successive years. 
 
 The committee, I understand, report, that on our books are bad debts to 
 the amount of $62,920. Now it will be evident by inspecting the account 
 of the profits of the Bank, that if for the last three years, there had been 
 annually deducted from the amount paid over to the Treasury, the sum of 
 $21,000, all of these debts would have been effaced from our books, and 
 the income of the Bank would still have exceeded 7 per cent, including 
 with the capital the Sinking Fund, and 8 per cent, if the Sinking Fund 
 were abstracted. 
 
 The Bank has, the present year, passed over to the credit of the Sinking 
 Fund, $115,042 96. • If these debts, amounting to $62,920, had been de- 
 ducted at once from this sum, what would have been the result 1 That the 
 State would have received for the present year, $52,122 96 ; and after hav- 
 ing for many years been receiving from 8 to 16 per cent, would for one 
 year have derived only 4| per cent on its capital, or nearly 4 on the capital, 
 including the Sinking Fund. 
 
 It is customary in private institutions, to make annually such dividends 
 as the Directors think prudent ; and if they have been fortunate, to form 
 with their surplus profits, a fund from which future losses may be repaired. 
 It is this principle, or this precaution, whicli makes the dividends in pri- 
 vate banks so uniform and regular. In this Bank, from its peculiar charac- 
 ter, it was deemed incorrect to create a surplus fund, lest such a measure 
 might have led to suspicion and misconstruction. It was considered our 
 
REPORTS OF INVESTIGATINa COMMITTEES. 139 
 
 duty to make an annual statement fully of our transactions, and carry at 
 once the annual profits of the institution to the credit of the State, ^jjiis 
 seemed the lAore advisable in our situation, because an irregularity in the 
 income of the Bank, could be of little inconvenience or importance to the 
 State, while in private institutions, great irregularity in the dividends would 
 lead to continual speculations in the stock, and be productive of many evils. 
 While, therefore, the Bank of the State has no surplus fund from whence its 
 losses can be repaired, other than the current income of the year, it is but 
 fair to remark, that if from its first establishment it had paid over to the 
 Treasury 7 per cent, for every sum intrusted to its charge, and for which it 
 could be responsible, and had paid no more than 7 per cent, it would have 
 possessed at this moment,. after providing for all of the bad debts which have 
 beenreported, a surplus fund of $216,989 99. (See exhibit C.) 
 
 And even now, as the profits of the Bank have been carried to the Sink- 
 ing Fund, the Legislature, should they deem it expedient, might direct the 
 sum of $62,920 to be deducted from the Sinking Fund, and applied to the 
 liquidation of these debts. This would leave the Sinking Fund nearly as it 
 stood at the close of the last year. 
 
 I have said nothing of the doubtful debts, because, as all of the bad debts 
 are not absolutely lost, and some of the doubtful may be perfectly secured, I 
 trust that the institution, in its future progress, may be able to provide out of 
 its accruing profits, for such as time shall prove to be certainly bad. 
 
 It is not my intention, in these observations, to defend or justify any indi- 
 vidual transaction, but generally to prove that the progress of this institu- 
 tion has not been unprosperous, neither is its present position insecure. 
 Far be it from me to assert or suppose that the Directors of that institution 
 have never given a credit to those who were unworthy of credit ; tliat they 
 have never been deceived by the appearance, without the reality of wealth ; 
 that they have never reposed confidence, where confidence has been found 
 to have been unmerited. 
 
 I am, very respectfully, 
 
 Your most obedient. 
 
 S. ELLIOTT. 
 To HenfwY Deas, Esq. 
 
 Chairman of the Committee on the Bank. 
 
140 REPORTS OF INVESTIGATING COMMITTEES. 
 
 
 
 
 
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KEPORTS OF INVESTiaATING COMMITTEES. 141 
 
 REPORT 
 
 Of tlie Legislative Committee appointed to investigate the Bank of tlte 
 State of South Carolina^ in Dec. 1826, made in Dec. 1827. 
 
 To the Honorahle tJw President, and other Mcinhers of the Senate of the 
 said State : 
 
 The undersigned, having "been appointed Chairman of a committee to 
 unite with a committee of the House of Representatives, in the examina- 
 tion of the Bank of the State in Charleston, begs leave to submit the fol- 
 lowing statement, as a substitute for the report which has not been made, 
 a quorum of the joint committee not having met for the purpose. As soon 
 as the state of the health of Charleston would permit, a letter was addressed 
 to the Hon. W. B. Seabrook, the member from St. John's Colleton, inviting 
 his co-operation as early as he could visit the city. As, however, no one 
 attended but the chairman of each committee, they agreed, although they 
 could not act as a committee, the majority not being present, yet that it was 
 the duty of the two members who did attend, to make the recpisite exami- 
 nation. They accordingly did so, and the chairman of the committee on 
 behalf of the Senate, submits the following statement as the joint result of 
 their inquiries and conference. It was deemed advisable to confine the in- 
 vestigation to the first of October, 1827, instead of the particular days 
 when they attended at the Bank. The fiscal year, ending as to all the fi- 
 nancial concerns of the State, on the first of October, seems to point out 
 that as the most suitable date for making up the statement of the afiairs of 
 the Bank. They would accordingly recommend that this rule be hereafter 
 observed, and if it be practicable, to make the arrangement that the exami- 
 nation be annual instead of biennial. 
 
 First. The first point to be noticed respecting the Bank, is its capital. 
 Of the original capital, nothing now remains but the stock of the State 
 Bank. The substitute for the rest of the original capital which was turn- 
 ed into money, consists of the debts due to the Bank, whether on bond or 
 note ; of the specie on hand; of the banking houses, and other real estate. 
 The same state of things must exist in the case of every Bank doing busi- 
 ness in the ordinary way ; for no such institution ever did, or ever should, 
 attempt to keep on hand the amount of its capital in specie. All Banks 
 must depend for their ultimate solvency, on the solvency of their debtors ; 
 since, whenever they deal extensively in the discounting of bills and notes, 
 they must invest a very large proportion of their capital in such securities. 
 In this matter a Bank can only act as a discreet and sagacious individual, 
 carrying on the business of a banker, would manage his own afiairs Such 
 a person would never think of keeping the amount of his fortune by him in spe- 
 cie, but would trade not only on a part of his capital, by actually lending it 
 out, but also to a reasonable amount on his credit, represented by the remain- 
 ing capital on hand, by the amount of debts due to himself, and by his ability 
 under any but very extraordinary circumstances, to command money, if he 
 should not happen to have by him a sufiiciency to meet any claim upon 
 him. The only difference in such case would be, that the Bank pays away its 
 own paper, while the private money dealer borrows the cash on his owu 
 
142 KEPOKTS OF INYESTiaATINa COMMITTEES. 
 
 notes. Altliough tlie Bank cannot, tlierefore, exhibit a vault containing 
 twelve liundred thousand 'dollars in gold and specie, yet they can do what 
 every such institution is able and desirous to do. If, then, the question be 
 asked, where is the original capital of the Bank, viz: $1,196,220 65, the true 
 answer is, precisely where the capital of every banker is, whether an indi- 
 vidual or corporation, viz ; chiefly in the hands of the debtors. Hence it 
 follows, that the most important inquiry as to the situation of a Bank, is 
 into the state of its debts. This will be the subject of examination hereaf- 
 ter, when those due to the Bank shall be reviewed. The capital of the 
 Bank has remained stationary, at $1,196,220 65, since the Act of Decem- 
 ber, 1819, after which no farther payments were made to the Bank, of the 
 unexpended balances in the Treasury on the first of April each year. 
 
 The exhibits A, Nos. 1 and 2, herewith annexed, are the weekly state- 
 ments for second of October, 1826, and first of October, 1827, of the af- 
 fairs of the Bank in Charleston, and exhibits B, Nos. 1 and 2, are the an- 
 nual statements of the Bank and its three branches, made up to the second 
 of October, 1826, and the first of October 1827. The first item in each 
 of these exhibits, is the capital. 
 
 Secondly. The next subject in order, is the amount of notes issued by 
 the Bank from its commencement to the first of October, 1827, and still 
 subsisting uncancelled, either in Bank or in circulation. 
 
 Exhibit C, is a particular statement of the existing issues, which amount- 
 ed, on the day last mentioned, to $1,743,450, from the denomination of one 
 dollar, inclusive ; and to $^114,307 50 under one dollar. 
 
 The issuing of these small bills is an advantage, in one respect, to the 
 community, and in two points of view to the Bank. Although silver 
 change may be had with greater facility, generally speaking, in cities, yet 
 this is by no means the fact through the country at large ;. and the only 
 substitute for small change, in the form of specie, or of these small bills, 
 must be similar bills of other companies, in the neighboring States, or the 
 due bills of individuals. Now, it is presumed no one will question but that 
 it is preferable for the country to be supplied by its own Bank, rather than 
 by the institutions of other States, or by individuals. The advantages to 
 the Bank lie, 1st, in the certainty that a very large proportion of many 
 thousands of small bills, whether of corporations or individuals, must ne- 
 cessarily be lost or destroyed ; besides which, they never become the sub- 
 ject of a run upon the Bank. 
 
 Should it be said, that it becomes not the State to make a profit out of 
 individual losses in this manner, it is conceived that a sufficient answer may 
 be given as follows : The people must be supplied with change ; it is Ihe 
 duty of the Legislature to furnish the supply ; a department has been ac- 
 cordingly organized in the Bank for the purpose ; the loss referred to mast 
 occur to the people, from whatever source they may be supplied with such 
 change ; it is better then, that the people, through the Bank, should re- 
 ceive the benefit, than that strangers, or individuals among themselve», 
 should ; and, indeed, if the loss must happen, and it is inevitable, it seems 
 a plain duty, on the part of the Legislature, to secure the profits to the 
 • people at large, through the Bank. So far, therefore, from regarding this 
 mode of increasing the means of the Bank as unbecoming in the State, it 
 may be justly considered as every way becoming, because it is a duty. Such a 
 method might be deemed unsuitable to the personal pride, and to the no- 
 tions of false honor, of a king ; but it is perfectly consistent with the SO- 
 
REPORTS OF INVESTIGATINO COMMITTEES. I43 
 
 ber sense, the practical obligation of an intelligent people, and tlieir en- 
 lightened representatives. To illustrate the advantages which others would 
 derive, the following statement is submitted. The original plates, procur- 
 ed under the Act of December, 1814, furnished, up to first of January, 
 1821, (the issue having been suspended by resolution of December, 1816,) 
 such an amount of small bills, that on the first of January, 1821,^28,418 
 were in circulation. 
 
 The issue was resumed under resolution of December, 1820, and the 
 amount outstanding on the first of October, 1827, including the sum above 
 mentioned, was $46,983. These old plates were unfit for use in 1 823 ; so 
 that when the lapse of time is considered, the wear and tear, loss and other 
 accidents to such bills, it is not an unreasonable estimate, that not less than 
 $30,000 of them will never be presented. Such is the gain which would 
 have gone to strangers, or to individual citizens, but fOr the issues of the 
 Bank under one dollar. 
 
 Is it not, then, the plain dictate of wisdom and expediency, of duty and 
 justice, to secure the advantage to the public revenues'? The second point 
 of view in which the Bank, and of course the public, benefit by the issue of 
 small bills, is this : These bills never come back to the Bank except to be 
 cancelled, or to be exchanged for others. They never assume the form of a 
 debt against the Bank. If, then, from first of October, 1826, to the first 
 of October, 1827, the average amount afloat was $100,000, it is plain that 
 the Bank realized an income of $6000, at six per cent, for the year. All 
 Banks make a profit of similar description on their bills ; but none can 
 share in this particular gain, nor can they, upon a like amount of $100,000 
 in large bills, realize, by any means, as large a profit. 
 
 Thirdly. The third item to be considered, is the profit on the discount 
 and interest discount. This, in exhibit A, No. 1, is stated at $27,249 46, 
 as the nett profit of the Charleston Bank for one year, ending the second of 
 October, 1826, after paying all the contingent expenses as well of the Bank 
 in Charleston, as of the branches, including the salaries of the ofiicers in 
 Charleston. It is to be recollected also, that but for the existence of the 
 Bank in Charleston, the salaries of many of its ofiicers, which are now paid 
 iby the parent Bank for the common good, would be chargeable on the 
 branches. Hence it happens, that the apparent nett profits of the Charles- 
 ton Bank must always be considerably less, compared with the expenses, 
 than those of the branches. The same item in exhibit A, No. 2, is stated 
 at $36,771 61, for the year ending the first of October, 1827, including in 
 that amount the sum of $425 50, being so much interest received on debt^ 
 till then regarded as bad : the principal received being accounted for as 
 part of the original capital. In exhibit B, Nos. 1 and 2, which are annual 
 statements of the whole Bank concern to second of October, 1826, and 
 first of October, 1827, the same item appears as $70,500 for 1825-6, and 
 at $75,000 for 1826-7; these being the nett amount of profits, after pay- 
 ing all contingent expenses for each year, and replacing, in the former year, 
 $44,684 72 of capital, and in the latter $47,693 81, retained out of the 
 profits, to replace so much of the capital which had been lost by bad debts. 
 It is worthy of remark, that these are the first years in which any bad debts 
 had been carried to profit and loss. The common rule in Banks is, to dis- 
 tribute them through a series of years, by retaining portions of profit, year 
 after year, as the bad debts accrue. It is believed not to be material which 
 course was pursued by the Bank of the State, as the sum of $92,378 53 
 
144 REPORTS OF INVESTIGATING COMMITTEES. 
 
 would have made no difference under the existing circumstances of former 
 years, in the amount of their discounts. The difference to the State is rather 
 apparent than real, as they have received, up to the first of October, 1827, 
 all that they have received under any mode of adjusting the losses. It is 
 certainly due to the present J3oard to state, that most of the bad debts have 
 been of long standing ; and of the whole amount, the sum of $55,775 28, 
 has been lost by directors, who held seats at the Board in former years. 
 
 In connection with the subject of profits, exhibit D, No. 1, is the state- 
 ment of dividends for the year ending first of October, 1826, and exhibit 
 D, No. 2, is a similar one for the year ending first of October, 1827. The 
 examination of this exhibit will be interesting in connection with the re- 
 marks already made on the comparative amount of the profits and the con- 
 tingent expenses of the Bank in Charleston, and of the branches. It ap- 1 
 pears by these statements that the gross amount of profits for the year 
 ending first of October, 1826, was $152,473, and for the year ending first 
 of October, 1027, $159,683 90, and after deducting the losses frcflbi bad 
 debts, and the contingent expenses of the parent Bank and its branches, , 
 the nett amount of $70,500 was applied as the nett profit of the former 
 year, towards the sinking fund and interest on the public debt ; and the 
 nett amount of $75,000 was applied in like manner as the nett profit of 
 the latter year. The exhibit marked D, No. 3, is, however, a more inter- 
 esting document than either D, No. 1, or D, No. 2, as it contains the practi- 
 cal application of these two, (Nos. 1 and 2.) There is no bank in the State 
 which does not consider, in the existing state of things, that it yields a 
 very fair profit to the stockholder if it pays him six per cent, on the par 
 value of his share : and this is generally not more than five per cent, on 
 the market value. 
 
 The larger the capital, and the more extended and complex the business 
 of the Bank is, the less, as a good general rule, is the relative amount of its 
 pifofits. These things considered, the Bank of the State has done an ex- 
 cellent business for the State, since it has been able, during a series of years, 
 from August, 1813, to 1827, to pay not only an interest of seven per cent, 
 on the average capital, but the additional profit of $2 1 6,939 84, beyond the 
 seven per cent, to first of October, 1827. And this the institution has ac- 
 complished notwithstanding the competition of five other banks, the pres- 
 sure of the United States Bank, and the very disordered state of mercan- 
 tile affairs during the war, during a period of several years, consequent on 
 the fictitious value of United States Bank shares in 1818, and during the 
 recent commercial embarrassments in Europe and America, arising out of 
 the fictitious prices of cotton in 1825. 
 
 In order to manifest still furthar, how amply the Bank has redeemed its 
 promise, the following result will appear on calculation. If we go back to 
 the year beginning first of October, 1825, and deduct from the original 
 capital of $1,196,220 65, the amount of bad debts, viz : $92,378 53, (which 
 lessened the capital so much until replaced out of the profits of the last two 
 years) we shall find that seven per cent, on the then subsisting capital 
 ($1,103,842 12,) will be $77,268 94. Deduct from this the nett profit of 
 the year, $70,500, and the deficiency below seven per cent, will not be two- 
 thirds of one per cent. A similar calculation as to the past year, deduct- 
 ing the bad debts, replaced on first of October, 1827, viz : $47,693 81, will 
 give a deficiency in like manner of less than half of one per cent. The 
 result of the whole is, that the institution has not only paid seven per cent. 
 
REPORTS OF INVESTiaATING COMMITTEES. 145 
 
 on the capital employed, down to first of October last, but has actually al- 
 ready paid a surplus profit equal to an interest of seven per cent, on the 
 capital for two years and a half to come : more than equal to eighteen per 
 cent, on the capital for one year. If, therefore, the Bank should be com- 
 pelled from any unforeseen contingency, to suspend business for more than 
 two years and a half, it would still be found, at the end of that time, that it 
 had realized seven per cent, on the capital. 
 
 Fourthly. The next item to be noticed is the account of the sinking 
 fund for the years ending first of October, 1826, and 1827. The exhibit 
 marked B, sets forth the same, and shows the application of the nett profits 
 of these two years. 
 
 Fifthly. It appears by exhibit A, No. 1, that the amount due to the of- 
 fice of Discount and Depositeon the first of October, 1826, was $46,000, 
 and on the first of October last $16,000. This sum must fluctuate from 
 week to week, according as the bills of our Bank in circulation, are drawn 
 into the office of the United States Bank, and are sent by it to be redeemed 
 in specie. It is not, however, very material at present, as specie can be had 
 for a trifle above par, whether the debt be $16,000 or thrice $16,000. 
 
 Sixthly. The exhibit F, shows the amount of notes discounted monthly 
 for the two years ending first of October, 1827, by the Bank and its branches. 
 In exhibit A, No. 2, the three first items on the credit side, give the amount 
 of debts outstanding and due on the first of October, to the Charleston Bank, 
 viz: of discounted notes $754,834 90 ; of notes in suit $179,757 97 ; and 
 of bonds $73,193 55. After an examination of the condition of the Bank 
 in relation to these claims, it appeared, that of the two first items, the sum 
 of $48,232 94, including the debts already charged during the present year, 
 to profit and loss, must be accounted bad ; and the further sum of $2 1 ,672 
 04 doubtful. Of the amount due on bonds, only the sum of $500 appear- 
 ed doubtful, and no portion of it bad. This debt is, however, secured by a 
 mortgage of 1 700 acres of land in St. Bartholomew's Parish, and upon a 
 sale of that depends the ultimate fate of the debt. 
 
 In setting an estimate on the debts, the course taken was, to inquire, 
 first, whether the debt were bad ; if not, whether it were doubtful ; and if 
 it appeared to belong to neither of these classes, it was then considered as 
 good. It is, moreover, as a general rule, true, that no committee, unless a 
 very large one, selected expressly with a view to the places of residence of 
 the debtors, could possibly form any other than an imperfect opinion. Ac- 
 cording, however, to the best of the information and judgment of the ex- 
 aminers on the present occasion, deciding as they would in the appraisement 
 of an estate, or on the concerns of an individual, both of which had been 
 well managed, they have felt justified in exhibiting the view of bad, doubt- 
 ful and good debts, already presented. This part of the subject ought not 
 to be left without noticing the state of the Directors' accounts, as drawers 
 and endorsers. It appears by the report of 1825 that these accounts stood 
 thus : 
 
 For December, 1822, $151,404 
 
 « " 1824, 117,515 
 
 « " 1825, - - - - - 121,333 
 
 The following are the amounts due at the respective dates, viz : 
 
 First of October, 1823, $282,155 
 
 " " 1826, 227,849 
 
 " 1827, 195,281 65 
 
 19 
 
146 REPORTS OF INVESTIGATING COMMITTEES. 
 
 It is perfectly understood, in the transaction of Rank business, that a 
 Director expects, and will be allowed, to become drawer and endorser to a 
 larger amount than would be admissable in regard to the same individual 
 if he were not a Director. 
 
 This is the settled practice of banking establishments, and in the case of 
 private institutions, it must be considered as approved by the stockholders, 
 unless they make some regulations to the contrary. 
 
 This, it is confidently believed, has never been done. Indeed, when it 
 is remembered that the situation of a Director is full of responsibility, 
 trouble and delicacy and that he receives no other compensation for his 
 services than the advantage of borrowing money somewhat more readily, 
 and to amount somewhat greater than he could otherwise obtain it is obvi- 
 ous that he would not accept the place without such a privilege. Even 
 where he is himself a stockholder, and has, therefore a personal interest in 
 the prosperity of the institution, that personal interest would not be a suf- 
 ficient motive unless the advantages above mentioned were enjoyed by him, 
 It may be stated also as a general rule, that it is just as common for Banks 
 to lose by Directors who are. as by those who arc not stockholders 
 
 And if we reflect on the very small comparative interest which a stock- 
 holder has in any given debt, unless his share of capital was very large, 
 we shall be convinced that after all. the only substantial security lies in 
 the capacity integrity and general solvency of each director. With these 
 qualifications, stockholders residing for the most part in the same city, 
 are previously well acquainted, at least by reputation, and have therefore, 
 the best opportunit}^ of making a good choice The great defect in the 
 case of private banks, consists in this, that their affairs are not examined, 
 at stated periods, by the stockholders, or by a committee of their appoint- 
 ment. This advantage the Legislature have wisely secured to the State by 
 the Act of 16th December, 184^. (pa^eGO) ; but they have not yet provid- 
 ed any method of securing a judicious selection of directors. 
 
 Until they shall have done this and it is very earnestly recommended to 
 their attention, the interests of the public cannot be as well represented as 
 they might be, and ought to be. If we look to the defectiveness of the 
 means hitherto relied upon, it is matter of congratulation that the bank 
 has been hitherto so well managed, rather than of surprise that it should 
 have not lost less than the hundredth part of its capital. After providing 
 for the stated examination of the bank. and. if practicable, it ought to be 
 annual, the next great duty of the Legislature is to adopt some judicious 
 plan for the election of suitable directors. In nine instances out of ten, 
 Senators and Representatives have not, and cannot have the means of judg- 
 ing correctly. After all, they must depend on the knowledge of compara- 
 tively few individuals, who may be able, from local advantages, to give ac- 
 curate information. Is it not better then, if such be the fact, to appoint 
 beforehand, a small number of responsible persons, whose duty shall be to 
 report annually a sufficient number of names, from which an advantageous 
 selection may be made ? With respect to the present board, although the 
 amount due by directors, whether as principals or endorsers, is very consid- 
 erable, yet a better selection has probably never yet been made by the Leg- 
 islature ; and it is believed, that in point of capacity, integrity and general 
 solvency, a preferable direction presides over no other institution in the 
 city. It is then submitted to the Senate to decide, under all circumstances, 
 whethar it be not expedient, and indeed indispensable, to order an annual 
 
REPORTS OF INYESTiaATING COMMITTEES. 147 
 
 investigation into the affairs of the Bank, and to provide a judicious mode 
 of recommending suitable candidates for the directorship of the institution. 
 With respect to the amount to which each director may be allowed to draw 
 and endorse, it is a matter of great delicacy and difficulty to determine, 
 whether any limit, which it would be an object to fix, can be set to this pri- 
 vilege. As then, it is far more important to have a capable, upright, sol- 
 vent board, and to ensure frequent stated examinations, than to assign limit 
 to a power essentially discretionary, it is deemed sufficient for the present, 
 to recommend that the two first objects be steadily and scrupulously kept 
 in view by the Legislature, and that' they do no more than require each 
 committee to report distinctly on the question of the expediency and prac- 
 ticability of setting such a limit. 
 
 The specie in the hands of the Cashier in Charleston, as appears by the 
 exhibit A, No. I, was, on the 2d October, 1826, $120,852 62, at which 
 time the debt due to the office of discount and deposit in Charleston was 
 $46,000; and by exhibit A, No. 2, the specie in hands was. on the 1st Oc- 
 tober, 1827, $198,907 79, and the debt due to the said office was $16,000, 
 as already mentioned. Exhibit G, is a statement of the amount of specie 
 monthly in the Cashier's hands from 1st October, 1825, to 1st October, 1827, 
 giving a montlily average of $143.1 22. 
 
 The item of Bank estate is set down at $28,273 47, the prime cost of the 
 banking houses in Charleston and Camden, without estimating the amount 
 expended in preparing them for banking purposes. The sums so laid out 
 formed a part of the contingent expenses of former years. They, are cor- 
 rectly classed under that head : cl.iefly because the number of establish- 
 ments similarly constructed in Charleston renders it improbable that these 
 additions will ever enhance its market value. It is certainly otherwise as 
 to the building in Camden, where no such competition exists and where it 
 is much more probable, if the branch now there should cease that a private 
 association would arise, whose interest it would be to purchase the present 
 banking house of the State. Would it indeed be unreasonable and unjust, 
 in such an evert to make it a condition of the charter that the present 
 banking establishment should be taken and paid for, at a fair valuation? 
 Though such an act would be partial and uiijust if the benefit were to ac- 
 crue to an individual or private company yet it would be just as expedient 
 and right as to reserve a bonus where the Legislature charter a bank, 
 not for the common good and where i^uch a condition would be for the pub 
 lie welfare. The State is indeed so entirely identified with the Bank, that 
 the Legislature cannot be too deeply sensible of the fact Let the people 
 realize this truth, as one virtually affectiig the best interests of the State. 
 Let them look to the Bank as bone of their bone, and flesh of their flesh. 
 Let them know that its fate whether it be good or evil, is their fate ; that 
 its prosperity is to them a blessing and its adversity a misfortune. Let 
 them not ask too much, nor despo.id even if their reasonable expectations 
 be not always fulfilled. Let t'lem consider the chances and chauges which 
 have che juered and embarrassed the whole period of its existence. Let 
 them remember the condition of all other similar institutions in the State, the 
 memorable depreciation of property and the great extent to which the regu- 
 lar income and the contingent profits of the farmer and merchant have been 
 diminished. 
 
 Such reflections will teach the friends of the Bank that it has done far 
 more than they had a right to expect. Such reflections will teach those 
 
148 REPORTS OF INVESTIGATINa COMMITTEES. 
 
 who are not its friends, that they cannot justly and consistently condemn it 
 on any principle which will not equally apply to every other institution, and 
 to almost all their fellow citizens. 
 
 But let not the Bank be a favorite. Give to it the full measure of justice 
 and candor, but give it no more. Deal with it as a public servant entrust- 
 ed with important powers, and laid under no ordinary responsibility, for the 
 faithful discharge of its duties. Let it then be watched, scrupulously, anxi- 
 ously, unremittingly. Subject it to a discipline regular and strict, yet tinc- 
 tured with no jealousy, suspicion, or illiberality. But above all, let not the 
 Senators and Representatives forget, that, while the fate of the bank de- 
 pends, to an incalculable extent, on the capacity, integrity and solvency of 
 the board, they themselves are the chief authors of its misfortunes, if they 
 neglect the vigilant, constant superintendence of its affairs, and appoint, 
 through carelessness or want of information, unsuitable persons as directors. 
 The adoption, then, of some permanent, judicious system, to enable the Leg- 
 islature to do their duty, is a measure equally recommended by sound poli- 
 cy and by a sense of justice to the Bank, as well as to the community. 
 
 THOS. S. GRIMKE, 
 
 Chairman of Committee of Senate. 
 
EEPORTS OF INVESTIGATING COMMITTEES. 
 
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REPOKTS OF INVESTIGATING COMMITTEES. 151 
 
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152 REPORTS OF INVESTiaATINa COMMITTEES. 
 
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REPORTS OF INVESTIGATINa COMMITTEES. I53 
 
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154 BEPORTS OF INVESTIGATING COMMITTEES. 
 
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REPORTS OF INVESTIGATING COMMITTEES, 155 
 
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156 REPORTS OF INVESTIGATING COMMITTEES. 
 
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REPORTS OF INVESTIGATINa COMMITTEES. 
 
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158 REPORTS OF INVESTIGATING COMMITTEES. 
 
 [1829.] 
 PROM THE COMMITTEE APPOINTED IN 1828. 
 
 The Joint Committee appointed under a Resolution of the Legislature- 
 at its last session, to investigate the condition of the Rank of the State of 
 South Carolina, in Charleston, convened at the hanking house on the 13th 
 day of May, and beg leave to report the result of their examination, which 
 was diligently prosecuted from day to day, for ten days, which brought 
 them to a close of their duties. 
 
 The first document which your committee beg leave to present to you, is 
 the general statement of the Bank of the State of South Carolina, com- 
 prised within twenty-two columns, and embracing a period of one year, that 
 is from the first of May, eighteen hundred and twenty-eight, to the first of 
 May, eighteen hundred and twenty-nine. 
 
 The first vertical column comprises dates of intervals of one month each, 
 and embracing a period of one year : opposite to each date is carried out 
 the condition and operations of the Bank at that period : Thus presenting 
 a synopsis of the condition and transactions of the institution monthly, for 
 one year, namely, from the first day of May, eighteen hundred and twenty- 
 eight, to the corresponding date of the subsequent year. The second col- 
 umn is under the head of Capital, upon which the committee would beg to 
 remark, that on the first of October, eighteen hundred and twenty-five, the 
 amount of c;ipital was stated at one million one hundred and ninety-six 
 thousand two hundred and twenty dollars and sixty-five cents ; and on the 
 first of May, eighteen hundred and twenty-nine, at one million one hundred 
 and fifty-six thousand three hundred and eighteen dollars and forty-eight 
 cents, showing a reduction of capital between those dates of thirty-one 
 thousand nine hundred and two dollars and twenty-seven cents. This re- 
 duction of capital has been caused by the Bank having redeemed and de- 
 livered to the Comptroller General, three per cent. Stock of the State, to 
 the amount of thirty-six thousand six hundred and twenty-one dollars and. 
 two cents ; and of the six per cents, three thousand two hundred and eighty- 
 one dollars arid fifteen cents, as vouched by his receipts. 
 
 The third column of Document No. I, states the amount of Bank notes 
 issued, which vary at difierent periods of the year ; being, on the first of 
 May, eighteen hundred and twenty-eight, one million nine hundred and 
 thirty-four thousand four hundred and forty-five dollars ; and at the cor- 
 responding period, in eighteen hundred and twenty-nine, one million five 
 hundred and thirty-two thousand one hundred and ninety-five. The fourth 
 column is a statement of the discount and interest received, being one hun- 
 dred and sixty-two thousand nine hundred and fifty eight dollars and eighty 
 three cents, from the first day of October, eighteen hundred and twenty- 
 seven, to the first of October, eighteen hundred and twenty-eight, and 
 eighty-eight thousand nine hundred and seventy-seven dollars and twenty- 
 one cents, the amount received from the last mentioned date, to the first 
 day of May, eighteen hundred and twenty-nine. The fifth column, under 
 the head of State Treasury for Sinking Fund, exhibits the amount paid in- 
 to the Bank by the State Treasury on account of the Sinking Fund, in con- 
 formity with an Act of the Legislature. The sixth column, under the head 
 of State Treasury, exhibits the amount paid into the Bank by the Treasu- 
 ry from time to time. The seventh column, under the head of "Due by State 
 
REPORTS OF INVESTiaATING COMMITTEES. 159 
 
 Treasury," exhibits the amount advanced by the Bank, for the Treasury, 
 from time to time. Under the eighth column, headed Office of Discount 
 and Deposite, is exhibited the amount due to that institution, at the speci- 
 fic dates there set forth. And the nintli column exhibits the amount due 
 by that institution to the Bank of the State. The tentli column, under the 
 head of State Bank shares, amounting to one hundred and one thousand 
 four hundred dollars ; or, one thousand and fourteen shares of the State 
 Bank, in possession of the Bank of the State. On this statement the com- 
 mittee would beg leave to remark, that in eighteen hundred and twenty-one, 
 when only nine hundred and fourteen of those shares were reported as be- 
 longing to the Bank, one hundred shares which had been pledged as securi- 
 ty on a note, and the retention of which was litigated in the Court of Equi- 
 ty, have been added to the stock by a favorable decision of the Court. The 
 eleventh column exhibits the amount loaned on bonds and mortgages at 
 Bank and its Branches. Forty-eight thousand eight hundred and two dol- 
 lars and forty-one cents is loaned in the Bank in Charleston. The twelfth 
 column exhibits the amount of Bills and Notes discounted, of which six 
 hundred and fifty nine thousand six hundred and thirty-six dollars and 
 eighty-one cents, was loaned in Charleston. This statement is exclu- 
 sive of Bonds and Notes in suit. The thirteenth column exhibits the 
 amount of Specie in Bank. The fourteenth column exhibits the amount 
 of the Notes of the Bank of the State, then in Bank, ^he fifteenth col- 
 umn exhibits the amounts of the notes of the City Banks in possession 
 of the Baijk of the State. The sixteenth column is an exhibit of the ex- 
 penses of the Bank of the State and its Branches for the period therein set 
 forth. The seventh column, under the head of " Real Estate," is property 
 taken in order to secure debts due to the Bank by defaulting creditors. — 
 The eighteenth column, under the head of " Bank Estate," shews the valu- 
 ation of the banking house, the property of the Bank. The nineteenth co- 
 lumn exhibits the amount deposited by individuals, from time to time. The 
 twentieth column, under the head of "Profit and Loss to the Credit," shews 
 the amount hitherto carried to the account of profit and loss, and received^ 
 since the last report of the Bank to the Legislature. The twenty-first col- 
 umn, under the head of "Profit and Loss account debit," shews the am- 
 ount carried to that account agreeably to the dates therein specified-, 
 namely, from May to October, eighteen hundred and twenty-eight. The 
 last column exhibits the three per cent, stock of the State held by the Bank, 
 and which has not yet been delivered to the Comptroller, to be cancelled. 
 The committee next bring to the view of the Legislature the statement of 
 the losses of the Bank, from the date of its institution up to the first day of 
 May, eighteen hundred and twenty-nine, amounting to one hundred and 
 sixty thousand four hundred and seventy dollars and forty-seven cents ; 
 and here the committee consider it to be their duty to state, that of this sum 
 the losses accruing by persons who have been placed in the direction of the 
 institution, amounts to one hundred and one thousand seven hundred and 
 three dollars and two cents, as drawers and endorsers, and by all other cus- 
 tomers, fifty-eight thousand seven hundred and sixty-seven dollars and fifty 
 five cents. The next statement is the amount of Notes in suit, which, on 
 the first of May, eighteen hundred and twenty-nine, was one hundred and 
 fifty-seven thousand nine hundred and sixteen dollars and thirty-nine cents ; 
 of this amount, the committee, after minutely investigating the facts, and 
 upon the best evidence they could obtain, determined that one hundred and 
 twenty-seven thousand eight hundred and seventy-nine dollars and nineteen 
 
160 I^EPORTS OF INVESTIGATING COMMITTEES. 
 
 cents, is recoverable— eighteen thousand three hundred and seventeen dol- 
 lars, as doubtful — and eleven thousand seven hundred and twenty, as bad ; 
 and the committee would further remark, that at a meeting at the Bank in 
 October, they found that more tlian eighteen thousand dollars had been 
 paid up on the first item of the last named account since their meeting in 
 May. The amount loaned on Bonds and Mortgages in Charleston, is forty 
 eight thousand eight hundred and two dollars ; all of which, with the ex- 
 ception of five hundred dollars, is considered to be well secured. The com- 
 mittee, having conducted their scrutiny with minute attention, upon the best 
 evidence they could obtain, come to the conclusion, that of the bills and 
 notes discounted and not in suit, the sum of five thousand one hundred 
 and seventeen dollars is bad, and the further sum of eight thousand four 
 hundred and fifty dollars is doubtful. It is probable that at the ensuing 
 report of President and Directors of the Bank, a portion of the last named 
 amounts may be carried to the account of bills and notes in suit. 
 
 The committee having thus given a detailed statement of the situation of 
 the Bank, would remark, that they came to a unanimous conclusion, that 
 the institution is sound and prosperous ; and the only change they would 
 recommend in its administration, is that portions of the debts due to the 
 Bank should be more uniformly, and in larger instalments, called in, and 
 accounts either closed or reduced. 
 
 But convinced how much this proceeding must be regulated by various 
 circumstances of which the Directors alone can have the competent know- 
 Ifedge, they are not prepared to recommend any change in the charter. — 
 From the best information your committee could obtain, the strict princi- 
 ples of banking, namely discounting notes and bills of exchange, which 
 are made for short periods, and at their maturity paid up, is practised by 
 none of the banking institutions of Charleston ; it therefore follows that no 
 individual institution can strictly pursue this course, without danger of los- 
 ing many of its most profitable customers, and injuring its interests. In 
 pursuing their investigation, your committee acknowledge the prompt and 
 cheerful aid of the President and other officers of the institution. Under 
 the administration of the first named officer, the bank was organized, and 
 has continued to yield to the State a valuable revenue : sustained by his in- 
 telligence and integrity, we feel confidence in its continuance, prosperity and 
 usefulness. In our investigation, each department of the Bank was care- 
 fully scrutinized, the books and accounts examined, and the public offices 
 having transactions with it searched, the cash counted, and all the depart- 
 ments found correct and conformable to their several statements : and here 
 the committee will take occasion to remark that no losses or defalcations 
 have occurred to the bank by any of its officers ; which statement, so high- 
 ly honorable to them in the discharge of important trusts, your committee 
 have great pleasure in bringing to the notice of the Legislature. Your 
 committee, in conformity with a resolution of the last session, herewith sub- 
 mit statements showing the number of officers employed in the other bank- 
 ing establishments in Charleston, and their salaries, as well as the state- 
 ment to the Same effect of the Bank of the State, together with the duties 
 performed by each, accompanied with remarks of the President on the same. 
 
REPORTS OF INVESTIGATING COMMITTEES. 161 
 
 Office of Discount and Deposit. 
 
 President, $2,00D 
 
 Cashier, 3,000 
 
 Teller, 1,580 
 
 Book-Keeper, 1,380 
 
 Discount Clerk, 1.400 
 
 Out Door Clerk, 996 
 
 Senr. Ass't Clerk, 900 
 
 Junr. " Clerk, 800 
 
 Porter, with residence, 696 
 
 Collection Clerk, 1,200 
 
 Solicitor, 500 
 
 $17,420 
 
 Planters^ and MecJianics^ Bank. 
 
 $2,500 
 2,000 
 1,600 
 1,500 
 1,300 
 1,000 
 1,000 
 
 President, 
 Cashier, 
 Book-Keeper, 
 Teller, 
 
 Discount Clerk, 
 Collection Clerk, 
 Transfer Clerk, 
 
 Teller omitted. 
 
 $10,900 
 1,500 
 
 $12,400 
 
 State Bank. 
 President, 
 Cashier, 
 Teller, 
 
 Book-Keeper, 
 
 Discount and Transfer Clerk, 
 Ass't and Out-Door Clerk, 
 
 $2,000 
 2,000 
 1,400 
 1,300 
 1,200 
 800 
 
 $8,700 
 
 South Carolina Bank. 
 
 
 
 President, 
 
 $2,000 
 
 Cashier, 
 
 2,000 
 
 Book-Keeper, Transfer and 
 
 
 Collection Clerk, 
 
 1,600 
 
 Teller, 
 
 1,500 
 
 Discount Clerk and Bill Book 
 
 
 Keeper, 
 
 1,500 
 
 Assistant Clerk, 
 
 800 
 
 Out-Door Clerk and Porter 
 
 
 furnished with a house. 
 
 700 
 
 $10,100 
 
 Union Bank. 
 
 
 President, 
 
 $2,000 
 
 Cashier, 
 
 2,000 
 
 Teller, 
 
 1,500 
 
 Book-Keeper, 
 
 1,400 
 
 Discount Clerk, 
 
 1,300 
 
 Out-Door Clerk, 
 
 1,000 
 
 $9,200 
 
 Bank oftlie State of South Carolina. 
 
 President, $3,000 
 
 Cashier, 2,500 
 
 Deputy Cashier, 1,80(T 
 
 Teller, 1,800 
 
 Teller, - 1,800 
 
 Book Keeper, 1,800 
 
 Discount Clerk, 1,500 
 
 Porter, 900 
 
 $15,100 
 
 Resolved^ That the Committee appointed to examine into the affairs of 
 the Bank of the State of South Carolina, do report the number of officers 
 of said Bank and its several branches, the duties of those officers respec- 
 tively, and the amount of their salaries, and the proportion that those sala- 
 ries bear to the officers of the like kind in the other Banks of the State, 
 and also the proportion in the number of officers with the other Banks of 
 this State. 
 
 JACOB BOND PON, 
 Chairman of tlw Joint Committee. 
 
 21 
 
162 REPORTS OF INVESTIGATING COMMITTEES. 
 
 
 
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REPORTS OF INVESTIGATING COMMITTEES. 163 
 
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164 REPORTS OF INVESTIGATING COMMITTEES. 
 
 I have, in pursuance to the request of the committee, furnished them 
 with an abstract from our books, of the duties of the several officers. The 
 following explanation may perhaps be also proper. 
 
 When our Bank was first established, we appointed, as was usual then in 
 every similar institution, two Tellers, two book keepers, a discount clerk, a 
 collection and discount clerk, and an out door clerk and porter. In most 
 of the Banks even then, the collection, the assistant clerk, the out door 
 clerk and porter, were separate offices. These offices were modified with 
 us, and two officers appointed instead of four. At that time we had no 
 branches, although we were preparing to establish one at Columbia. 
 
 Since then, we have suppressed one of the book keepers, and increased 
 the salary of the other, on account of his performing the duties of both, be- 
 sides other tasks which have been imposed upon him. 
 
 We have also suppressed the office of collection and assistant clerk, and 
 distributed his duties among other officers, giving to the deputy Cashier 
 the charge of the cash book, to the discount clerk the duties of collection 
 clerk, and to the out door clerk the care of the checks. 
 
 The Tellers we have deemed it proper to retain, because the settlement 
 of our accounts and money transactions with our branches and other 
 Banks, gives us frequently much of what may be termed extra business, 
 and because if we had but one, we have no superfluous officer in the Bank 
 to take his place, in case of sickness or unavoidable absence. 
 
 It may be necessary, also, to remark, that the issuing of small bills 
 throws upon all the officers of this bank an additional duty. In every one 
 or two dollar bill which is issued, the hand writing of six officers is insert- 
 ed. Frequently one of the Tellers is kept constantly engaged in this oc- 
 cupation, while the other transacts the ordinary business of the Bank. 
 
 There is one tribute due to the officers of the Bank, which it gives me 
 pleasure to pay. It is, that since the establishment of the institution, not 
 one dollar has been lost, either in the parent Bank or in its branches, 
 through the defalcation or malfeasance of any one of its officers. 
 
 Respectfully submitted, 
 
 October 15, 1829. S. ELLIOTT. 
 
 Statement of tlm Officers of tJie Bank^ and their various Duties. 
 
 The following rules for the direction and government of the officers of 
 the Bank of the State of South Carolina, were adopted on the 10th May, 
 1819. 
 
 Resolved^ That the following shall be the duties of the Cashier. 
 
 1. He shall keep a book of daily cash balances in the Bank, which he 
 shall add up every day after 2 o'clock, A. M. 
 
 2. He shall keep a ledger of general accounts of the Bank, which he 
 shall add up. 
 
 3. He shall keep a weekly statement book, containing the general state- 
 ment of all the transactions of the Bank, which he shall lay before the 
 board weekly ; together with such of his books as the board shall at any 
 time require. 
 
 4. He shall receive weekly from the discount clerk, all such notes and 
 acceptances as have been discounted weekly into his charge, and for which 
 he shall give the discount clerk a receipt in a book, to be made out weekly 
 
REPORTS OF INVESTIGATING COMMITTEES. 165 
 
 by the discount clerk, called a weekly return of notes discounted, at tlie foot 
 of each such weekly return. 
 
 5. He shall weekly deliver over to the teller, all such notes and accep- 
 tances as have been discounted before they become due, and as shall be- 
 come due in such week ; for which he shall require the tellers, respective- 
 ly, to give him a receipt for such notes and acceptances as each of them 
 shall receive from him, in the book called a weekly return of notes dis- 
 counted, and made out weekly, by the discount clerk, for that purpose. 
 
 6. He shall countersign all the bills of this Bank that have been signed 
 by the President, and keep a register of them in a book to be kept by him 
 for that purpose, in which he shall state every particular respecting the 
 said bills, as a check book, to detect any altered and counterfeit bills of this 
 Bank, should any such be hereafter presented at the Bank for payment. 
 
 7. He shall take charge of all such bonds and notes as are given to the 
 Bank, for loans secured by mortgage on real or personal property, together 
 with such mortgages, titles and other paperl accompanying the same ; he 
 shall fold up and endorse thereon the date of such loan or loans, the name 
 or nances of such borrowers and mortgagors, and the sums so loaned, and 
 put them up in alphabetical order. 
 
 8. He shall keep a book, in which he shall enter 'alphabetically the 
 names of all such persons whose bonds, notes, mortgages, assignments, ti- 
 tles or other papers, may be given to the Bank for any loan, or lodged with 
 the Bank as a collateral security for any debt due to the same ; and he 
 shall take charge of all such papers which may be lodged as aforesaid, fold 
 them up and endorse thereon the date when so given or lodged with the 
 Bank, the name or names of the persons giving or lodging the same, the 
 amount or description of each, and put them up in alphabetical order. 
 
 9. He shall keep a book of deposits for safe keeping, such as trunks, 
 boxes, plate or other articles. 
 
 10. He shall keep a book containing an alphabetical list of all the names 
 of such persons as shall from time to time give powers of attorney to dif- 
 ferent persons to transact their business at this Bank for them, in which 
 the nature and extent of such power of attorney shall be stated ; and he 
 shall take charge of all such powers of attorney, endorse thereon the date 
 when given, the names of the parties to the same, the nature and extent of 
 such powers, and put them up in alphabetical order. 
 
 1 1 . He shall keep a letter book, in which he shall keep copies of every 
 letter he shall write to any person on the business of the Bank. 
 
 12. All letters addressed to him on the business of the Bank, and all 
 statements and papers that shall, from time to time, come into his hands, 
 touching the same, shall be carefully preserved by him, folded up and then 
 dated when received, the names of the parties, the subject matter of such 
 letter shall be endorsed thereon, and the said letters put up in aljihabetical 
 order. 
 
 13. He shall every day, after 2 o'clock, P. M. examine the Tellers' coun- 
 tei* books, and see that every entry duly made therein, and that the ba- 
 lances therein struck daily by them, are correct ; if so, he shall certify the 
 same at the foot of each and every of the tellers' daily accounts in their 
 said books. 
 
 14. He shall, every day at 2 o'clock, P. M. examine and sec that all the 
 entries daily made in the tellers' counter books, books of cash on deposit, 
 checks paid, &c. are duly entered (alphabetically, if possible.) by the col- 
 
J66 REPORTS OF INVESTIGATING COMMITTEES. 
 
 lection clerk, in the daily cash book of the bank, to be kept by him. the 
 said collection clerk, for that purpose ; and that the balances struck there- 
 in daily, are correct. If so, he shall certify the same at the foot of each 
 and every of such daily balances in the said daily cash book of the Bank. 
 
 15. He shall, from time to time, under the authority of this board, give 
 directions to the tellers, respecting the receiving and pajdng of all monies. 
 
 16. He shall keep a book in which every note or acceptance that may 
 have been discounted, or any bond or note given for a loan under mort- 
 gage, or any bond, note, mortgage, assignment or any other evidences of 
 debt that may have been given to the Bank, or lodged as a collateral secu- 
 rity to any debt due the same, and which shall have been put in suit for 
 the recovery thereof, shall be entered by him alphabetically, and state par- 
 ticularly when put in suit. By what attorney, when judgment was enter- 
 ed up, and in what District, when execution entered into the SheriflF's of- 
 fice, what SheriiF's office, the^ amount of the judgment, if paid, and when. 
 
 17. He shall make off weekly, in the weekly return book of notes and 
 acceptances discounted, all such notes and acceptances as have been paid or 
 may be protested. 
 
 18. He shall keep all the money, notes, bonds, evidences of property, 
 and specialties of every description belonging to or appertenant to the 
 Bank, within the inner vault, with the following exceptions, his own bond, 
 which (after being duly recorded) shall be placed in the hands of the Presi- 
 dent, and such notes or bonds as may pass into the hands of the Tellers, 
 Notary or Solicitor of this Bank. 
 
 19. He shall require and enjoin transfers of all such sums of money as 
 may be in the hands of the Tellers amounting to more than is sufficient 
 for the ordinary business of the Bank ; he shall require from the Tellers 
 a weekly transfer of all mutilated bills above the denomination of one dol- 
 lar, which may accumulate in their hands, and submit them for the purpose 
 of being cancelled, to the board of Directors, at their usual days of meet- 
 ing. 
 
 20. It shall be his duty to see that every officer hereafter mentioned, at- 
 tends regularly and constantly every day in this Bank, and discharges his 
 duty promptly and with civility to every person who may, at any time, 
 have any business to transact with the Bank. 
 
 The following shall be the duties of the Deputy Cashier : 
 
 1. He shall keep a weekly statement book, to be made out alphabetical- 
 ly, of the amount of every person's debt, respectively, to the Bank, and also 
 the amount of every person's endorsements on notes and acceptances dis- 
 counted by the same. 
 
 2. He shall receive and exchange, daily, all such small mutilated bills of 
 this Bank as shall be presented to him in Bank ; put them up in bundles 
 of one hundred bills in each bundle, endorse thereon the number of bills 
 in each bundle, and the amount thereon, after which he shall hand them 
 over to the Tellers. 
 
 3. He shall examine the calculations of the weekly discounts in the dis- 
 count books; examine daily the entries in the personal ledger; examine 
 the Book Keeper's monthly balance sheet of the personal ledger ; examine 
 the Book Keeper's semi-annual general balance sheet of his personal led- 
 ger ; and examine the daily entries made by the Collection Clerk in the 
 daily cash book of the Bank, which, if found by him to be correct, he shall, 
 at the foot of every such statement, certify the same. 
 
REPORTS OF INVESTIGATING COMMITTEES. 167 
 
 4. He shall keep a ledger of general accounts of tlie Bank, -which he 
 shall post up daily. 
 
 5. He shall keep a ledger of discounts on stock of every kind, in which 
 he shall particularly state the amounts of such kind of stock on deposit, 
 to secure the payment of such discounts, and note the time when such 
 discounted notes are paid. 
 
 6. He shall keep a ledger of loans on mortgage of lands and negroes. 
 
 The following shall be the duties of the Tellers : 
 
 1. Each of them shall keep a counter book, in which he shall respective- 
 ly enter daily all of his transactions, as Teller for the day. 
 
 2. Each of them shall, every day after two o'clock P. M. add up his ac- 
 counts and daily transactions in the Bank, strike their balances, and note 
 down at the end of their said daily transactions, under general heads, the 
 amount of checks paid, amounts of deposits, &c. &c. in order that the 
 Cashier may be enabled daily to examine the same, at the time aforesaid ; 
 and if such entries and balances shall be found by the Cashier to be cor- 
 rect, he shall daily certify the same at the foot of each and every such of 
 their daily accounts and transactions. 
 
 3. They shall receive weekly from the Cashier, all such notes and 
 acceptances as have been discounted and shall become due in the course of 
 the said week ; for which they shall respectively give him a receipt in a 
 book to be made out weekly by the Discount Clerk, and kept for that pur- 
 pose by the Cashier, called a weekly return book of notes and acceptances 
 discounted. 
 
 4. They shall receive daily from the Collection Clerk all such notes and 
 acceptances lodged for collection, as may become due on each day, for 
 which they shall respectively give him a receipt, in a book to be kept by 
 him for that purpose. 
 
 5. Each of them shall deliver over daily all such discounted notes and 
 acceptances lodged for collection, as have not been paid in Bank at two 
 o'clock, P. M. each day, to the Notary of the Bank, and for which each of 
 them shall require the Notary's receipt for such notes and acceptances as 
 they shall so deliver to him, in a book to be kept by each of them for that 
 purpose. 
 
 6. Each of them shall receive in payment and on deposit, all kinds of 
 specie, at the weights and at the rates established by the Acts of Congress. 
 
 7. Each of them shall, whenever any check or checks are presented to 
 them for payment, before they pay the same, learn from the person present- 
 ing the same his name, and shall write on the left corner or the face there- 
 of, the name of the person to whom he has paid such check, after he has 
 entered the same in his counter book ; he shall then hand the same over 
 to the Book Keeper, for the purpose of his entering the same in the per- 
 sonal ledger, to the debit of the parties drawing such check or checks. 
 
 8. They shall keep a book, alphabetically, in which every person doing 
 business with the Bank shall be requested by them to write his name in 
 the manner he or she usually signs the same, in order that they may com- 
 pare the same with any checks drawn on the Bank by those persons, so as 
 to detect any counterfeit checks, should any such be presented for pay- 
 ment. 
 
 The following shall be the duties of the Book Keeper : 
 
 1. He shall keep the personal ledger, in which he shall enter (j^-om the 
 
168 llEPORTS OF INVESTIGATING COMMITTEES. 
 
 President's discount book, aH such notes and acceptances as may be from 
 time to time discounted ; also he shall enter from the Tellers' counter 
 books, all such notes and acceptances lodged for collection as are from 
 time to time collected ; and also all sums deposited to the credit of the 
 parties in their respective accounts with the Bank. 
 
 2. As soon as he shall receive any check or checks, which have been paid 
 by the Tellers, he shall enter the same in the personal ledger, to the de- 
 bit of the parties drawing the same, and shall mark every such check, in 
 the middle of the face thereof, with a large letter C, and then hand the 
 same over to the Collection Clerk, for the purpose of his entering the 
 same in the daily cash book of the Bank. 
 
 3. He shall make out for each customer of the Bank a small bank book, 
 in which he shall enter, from the personal ledger, all notes and acceptances 
 collected ; and also all deposits not already entered by the Tellers, made to 
 the credit of such customer; and when such customer shall have entered 
 in his said small bank book, all the checks he may have drawn on the Bank, 
 which have been paid by the Tellers, he shall then, from time to time, after 
 a due examination, balance the same. 
 
 4. He shall, at the end of every fortnight, make out from the personal 
 ledger, a balance sheet, which shall be examined by the Deputy Cashier ; 
 if found by him to be correct, he shall then certify the same — after which 
 the Book Keeper shall then lay the same before the Board, at their first 
 meeting thereafter. 
 
 5. He shall, at the end of every six months, make out from the personal 
 ledger a general balance sheet, which must agree with the amount of depo- 
 sits in the weekly statement of the Cashier, at the time of making out the 
 statement, and which must be examined by the Deputy Cashier, who, if he 
 shall find the same to be correct, shall certify the same ; and the Book Keep- 
 er shall then lay the same before the Board, at the first meeting thereafter. 
 
 The following shall be the duties of the Discount Clerk : 
 
 1. He shall keep two oifering or discount books, to succeed each other 
 weekly, in which he shall enter every particular of every note or accep- 
 tance that shall, from time to time, be oJGfered for discount, and shall calcu- 
 late correctly all the discounts thereon, to be laid before the Board week- 
 ly, and as soon as the Board has returned the same to him, he shall add up 
 the amount of notes discounted, at the foot of each statement thereof; 
 which discounts and the amounts shall be examined weekly by the Deputy 
 Cashier, and if found by him to be correct, he shall certify the same at the 
 foot of each and every such weekly statement. 
 
 2. He shall keep a book containing an alphabetical list or weekly re- 
 turn of all notes and acceptances that are discounted weekly, which he 
 shall add up at the foot of every such weekly return, and deliver the same 
 weekly to the Cashier, together with all such notes and acceptances, so dis- 
 counted, with the day when due and payable endorsed thereon, for which 
 the Cashier, if he find the notes agree with the said weekly return, and also 
 agree with the President's discount book, shall certify the same at the foot 
 of every such weekly return.' 
 
 3. He shall keep a bill ledger and endorsement ledger. 
 
 The following shall be the duties of the Collection Clerk : 
 
 1. He shall keep the daily cash book of the Bank, in which he shall 
 
REPORTS OF INVESTIGATINa COMMITTEES. 169 
 
 enter d^ily, (alphabetically, if possible,) all such checks as he shall receive 
 daily from the Book Keeper, which have been previously marked by the 
 Tellers and Book Keeper, as directed in their duties, as well as all pay- 
 ments and deposits made daily in the Bank, all of which he shall take 
 from the Tellers' counter books, and add up the same daily, at the foot of 
 each and every of such daily accounts, to see if the same agrees with the 
 Tellers' daily accounts and other books of the Bank, which shall be exam- 
 ined by them, and if found by him to be correct, he shall certify the same 
 at the foot of each and every of such daily accounts. 
 
 2. He shall keep a book in which he shall enter the particulars of every 
 note and acceptance lodged for collection, with a blank column to show 
 how disposed pf ; and he shall endorse the said notes and acceptances over 
 daily to the Tellers before they become due, for which he shall take the 
 Tellers' receipt respectively, in a book to be kept by him for that purpose, 
 for all such notes and acceptances as he shall, from time to time, deliver 
 to them. 
 
 3. He shall receive daily from the Notary of the Bank all such notes 
 and acceptances as have been discounted or lodged for collection, and are 
 returned to the Bank under his protest for non-payment, and enter them 
 in a book to be kept by him ifor that purpose, which book, together with all 
 such notes and acceptances, and the protests thereon, shall be laid before 
 the Board at their first meeting thereafter. 
 
 4. He shall keep a book or weekly register (alphabetically) of all the 
 notes, and acceptances that have been discounted, entitled to renewal or 
 which may become due within the week, which weekly register he shall add 
 up weekly, and then submit it for examination to the Deputy Cashier, who, 
 if he finds the same to be correct, shall certify the same at the foot of every 
 such weekly return, and lay the same before the Board weekly. 
 
 5. He shall serve notices on all the parties to every note or acceptance 
 that has been discounted, before it becomes due ; and he shall also serve 
 notices on all the parties to every note or acceptance that has been lodged 
 for collection, before it becomes due. 
 
 The following shall be the duties of the Porter : 
 
 1 . He shall daily open and shut the Bank at Bank's hours ; shall cancel 
 all checks, notes and acceptances ; give constant attendance in Bank ; keep 
 the same clean ; and, under orders of the President or Cashier, assist in 
 counting money ; or shall do any other kind of work about the Bank that 
 this Board or the President or Cashier shall, from time to time, think prop- 
 er to direct him to do. 
 
 The following shall be the duties of the Notary: 
 
 1. He shall call every day at 2 o'clock, P. M. al the Bank, and receive 
 from the Tellers all such notes and acceptances as have been discounted, 
 also such notes and acceptances as have been lodged for collection, and have 
 not been paid in Bank at the time above mentioned, on the day when they 
 are respectively payable, for which he shall give the Tellers a receipt in a 
 book to be kept by each of them for that purpose. He shall then imme- 
 diately serve the drawers, endorsers, acceptors, and all other parties there- 
 on, with notice of non-payment thereof, before twelve o'clock at night there- 
 after, and return the same under his protest, (unless paid,) the next morn- 
 ing to the Collection Clerk in Bank. 
 22 
 
170 REPOliTH OF INVESTIGATINO- COMMITTEES. 
 
 2. All monies he shall from time to time receive for any note or aceep - 
 tance that he may have received from the Tellers, as stated in their duties^ 
 shall be paid over by him in Bank, as soon as he receives the same. 
 
 Resolved^ That each of the above named officers shall, in addition to the 
 above named duties, discharge all such other duties as this Board shall, 
 from time to time, hereafter, think proper to direct them respectively to 
 perform. 
 
 [1831.] 
 FROM THE COMMITTEE APPOINTED IN 1830. 
 
 The Joint Committee appointed at the last session of the Legislature 
 to investigate the condition of the Bank of the State, in Charleston, beg 
 leave to report, That a majority of your Committee met at the Bank in 
 October last, and proceeded to the discharge of the duty assigned them, 
 and feel pleasure in stating, as their opinion, that the Bank is in a sound 
 and prosperous state. 
 
 Although this institution met with a great loss in the death of Stephen 
 Elliott, its former President, whose high character and commanding tal- 
 ents acquired for him the esteem of his fellow-citizens, and the confidence 
 of the State, yet we have reasons to be gratified in procuring a successor, 
 whose incorruptible integrity, untiring zeal, and uncompromising indepen- 
 dence, in the discharge of all his public duties, furnish an ample assurance 
 of his usefulness in his present office. 
 
 Your Committee beg leave to submit the annexed general statement 
 marked A. This statement furnishes a general view of the operations and 
 resources of the Bank, for one year, commencing on the first day of Octo- 
 ber, one thousand eight hundred and thirty, and ending on the thirtieth day 
 of September, one thousand eight hundred and thirty-one. The profits of 
 the Bank, during that period, amount to. thirty-five thousand six hundred 
 and seventy-four dollars and eighty-three cents. Forty-six thousand four 
 hundred and thirteen dollars and sixty-nine cents are due on mortgages, 
 the whole of which is considered unquestionably safe, with one unimpor- 
 tant exception. There are also notes in suit to a considerable amount, 
 the names of the drawers and endorsers of which are in the possession of 
 your Committee, ready to be produced, if deemed necessary. 
 
 Your Committee feel themselves relieved from the necessity of making 
 a long and detailed Beport, by the able and elaborate Report of the Presi- 
 dent of the Bank, which has been shown to your Committee — all the por- 
 .tions of which, that relate to the state and condition of the Bank, meet 
 their concurrence. 
 
 Respectfully submitted. 
 
 December 3d, 1831. JACOB AXSON, Chairman. 
 
l^EPORTS OF INVESTIGATINO COMMITTEES. 17l 
 
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172 REPOPvTS OF INVESTIGATING COMMITTEES. 
 
 BRANCH AT COLUMBIA. 
 
 The Committee appainted to inspect the Branch of the Bank of the 
 State of South Carolina, at Columbia, regpectfuUy report : 
 
 That they have, in conducting the examination, directed their attention 
 chiefly to the profits of the institution, and the security of the debts. 
 
 The following table will exhibit the profits of this Branch, for the last 
 five years : 
 
 Profits in 1827 : : : : : : $42,236 04 
 
 Bo. " 1828 ,::::: 47,801 33 
 
 Do. "1829 : 45,851 80 
 
 Da " 1830 : : 49,176 87 
 
 Do. " 1831 : : : . : : 56,948 58 
 
 From this exhibit, it will appear that there has been an almost annual in- 
 crease of the income from this Branch, since the year 1827 ; and that du- 
 ring the last fiscal year, ending the 30th September, the profits have been 
 greater that those derived even from the parent Bank. It is difficult to state 
 precisely the capital employed, but from the best evidence which has been 
 furnished, it may be estimated at $900,000. 
 
 The securities, on notes discounted, appear, from the information receiv- 
 ed, to be ample ; and the committee believe that the utmost confidence may 
 be placed in their sufficiency. This opinion is strengthened by the fact, 
 that no debts have been contracted during the present administration of 
 the Bank, which may be considered even doubtful ; and many of those 
 which have been heretofore so classed, are collected. either in part or alto- 
 gether. 
 
 The location of this Branch at Columbia, enables it to be extremely use- 
 ful to a mercantile community which transacts a large business with all the 
 interior country. Every exertion will be made to increase and extend this 
 accommodation, by the discount of notes and drafts on Charleston. All 
 means within the power of the direction, and consistent with the interest 
 of the institution, seem to be furnished for supplying the public demand. 
 
 The result of the examination conclusively proves the increasing pros- 
 perity of this Branch, and the security of its debts. 
 
 In the further details of their investigation, the committee have been an- 
 ticipated by the full and lucid report of the able officer who presides over 
 the parent Bank. 
 
 Justified by the facts stated, they will, however, in conclusion, express 
 their confidence in the ability and fidelity of the officers and directory who 
 control the afiairs of this Branch. 
 
 8th December. 1831. 
 
 THO. W. GLOVER, CJmirman H R. 
 
 BRANCH AT CAMDEN. 
 
 The Joint Committee appointed at the last session to examine into and 
 report the condition of the Branch Bank at Camden, beg leave to report : 
 
 That, attended by the officers of the Bank, who submitted to their in- 
 spection the books thereof, and afforded them every facility in their inves- 
 tigation, they have discharged that duty, and submit the following tabular 
 statement, which exhibits the operations of this Bank for the last two years 
 — the amount of the capital at the end of each year ; the amount loaned out ; 
 
REPORTS OF INVESTIGATING COMMITTEES. 173 
 
 the expenses of each year ; the amount of nett profits ; and the average 
 monthly amount of individual deposites. 
 
 AMOUNT 
 LOANED OUT. 
 
 THE YEAR. 
 
 1830. Sept. 30 
 
 1831. Sept. 30 
 
 CAPITAL. 
 
 $454,200 00 
 495,309 05 
 
 466,956 81 
 532,764 18 
 
 EXPENSES. 
 
 4,951 
 
 PKOFIT. 
 
 21,985 46 
 27,405 78 
 
 AV'G. 
 MONT. 
 
 OF 
 DEP. 
 
 42,390 
 
 19 
 66 
 
 The sum due by the President and Directors, on their own account, 
 amounts to $39,939, and they are liable as endorsers, to the amount of 
 $55,019 ; for the greater part, if not the whole amount of this last sum. 
 the endorsements may be considered as merely nominal, as the drawers are 
 believed to be perfectly solvent, or the endorsers indemnified by collateral 
 security.. 
 
 The Committee have principally directed their attention to the enquiry, 
 whether the funds loaned out are sufficiently secured. After a careful en- 
 quiry into the solvency of the drawers and endorsers, and aided with all 
 the means of information they could obtain, it affords the Committee great 
 pleasure to state, that of the whole amount of outstanding debts, there is 
 not a single debt which, in their opinion, is not amply secured, and they 
 are gratified to learn, that since its establishment, in 1822, this Bank has 
 not lost one dollar. 
 
 In order that the Legislature may the better understand the operations 
 of this Bank, the Committee have hereunto annexed a monthly statement 
 of its transactions, for each of the two last fiscal years. 
 
 In conclusion, the Committee cannot in justice withhold the expression 
 of their belief, that the able and indefatigable officers who manage this in- 
 stitution, have discharged their duty with a watchfulness and fidelity which 
 entitles them to the highest praise, and which merits the just confidence of 
 the Legislature. 
 
 All of which is respectfully submitted. 
 
 W. R. HILL, Chairman. 
 
 Monthly Statement of tJw Branch Bank of the State of South Carolina^ 
 
 at Camden. 
 
 Dp.. 
 1830. Sept. 30. 
 To Bills and Notes dis- 
 counted $466,956 81 
 
 " Expenses, . 4,885 35- 
 
 " Overdrafts,.... 116 37 
 
 " Cash on hand, 45,5 1 8 25 
 
 $517,476 78 
 
 Cr. ' 
 1830. Sept. 30. 
 By Bank State of South 
 
 Carolina, $454,200 00 
 
 " Discount Account,- . 24,420 37 
 
 " Interest Account 2,450 44 
 
 " Individ. Depositors,. 36,405 97 
 
 $517,476 78 
 
 On'the 1st October, 1829, this Branch owed the parent Bank 
 
 (this was our capital,) $470,232 69 
 
 On the 30th September, 1830, the profits from 
 
 Discounts amounted to, ..$24,420 37 
 
 The profits from Interest amount to, 2,450 44 
 
 $26,870 81 
 The Expenses for this year were _ . 4,885 35 
 
 $21,985 46 
 
174 REPORTS OF INVESTIGATING COMMITTEES- 
 
 The nett profits for the tanking year, commencing on the first day of 
 October, 1 829, and ending on the thirtieth day of September, 1830, amount- 
 ed, as above stated, to twenty one thousand, nine hundred and eighty-five 
 dollars, 86-100 
 
 THO. SALMOND, Prm^^e^^. 
 J. W. CANTEY, Cashier. 
 Branch Bank, S. S. C, Camden, Oct. 1831. 
 
 Monthly Statement of the Branch of the Bank of tJie State of South Car- 
 olina at Camden. 
 
 Dr. 
 831. September 30. 
 To Bills and Notes dis- 
 counted, _$532,764 18 
 
 " Expenses 4,951 41 
 
 " Overdrafts -. 50 88 
 
 " Cash on hand, 11,454 12 
 
 Cr. 
 1831. September 30. 
 By Bank of the State of 
 
 South Carolina $495,309 05 
 
 " Discount Account,- _ 29,828 81 
 •' Interest Account. _ . 2,528 38 
 " Individ. Depositors,. 
 
 $549,220 59l $549,220 59 
 
 On the 1st day of October, 1830, this Branch owed the parent 
 
 Bank, (this was our capital,) $476,185 46 
 
 On the 30th day of September, 1831, the profits 
 
 from Discounts amounted to $29,828 8 1 
 
 The profits from Interest 2,528 38 
 
 $32,357 19 
 The expenses for this year were, 4,95 141 
 
 Nett profits this year, $27,405 78 
 
 The nett profits for the banking year, commencing on the 1st October, 
 1830, and ending on the 30th September, 1831, amounted, as above stated, 
 to twenty-seven thousand four hundred and five dollars 78-100. 
 
 THO. SALMOND, PrmVZm?. 
 J. W. CANTEY, Cashier. 
 Branch Bank, S. S. C, Camden, Oct. 1, 1831. 
 
 BRANCH AT GEORGETOWN. 
 
 The Committee appointed to examine into the afiiiirs of the Branch Bank 
 at Georgetown, beg leave to submit the following Report : 
 
 Your Committee have entered into a minute investigation of the affairs 
 of the Branch, examined the books and accounts, and scrutinized the debts 
 due the Bank, with the utmost minuteness ; and the result of this investi- 
 gation has been, a thorough conviction of the usefulness of the institution, 
 and satisfaction with the general management of its affairs. 
 
 Your Committee might stop here, simply referring to the annexed state- 
 ments for the situation of the affairs of the Bank ; but they deem it im- 
 portant to advert to a few facts connected with the institution. 
 
 The Act authorizing the establishment of a Branch at Georgetown, was 
 passed in December, 1816, and the Bank went into operation in March, 
 1818, with a capital of sixty thousand, nine hundred (60,900) dollars, which 
 
IIEPORTS OF INVESTIGATINa COMMITTEES. 175 
 
 was increased by drafts from tlie mother Bank, and tlic profits of the insti- 
 tution, and on the 1st day of October, 1818, amounted to two hundred and 
 fifty thousand, three hundred and eighty-four dollars ; which, in thirteen 
 years, has been more than doubled by the profits of the Bank, after paying 
 for the Banking House, and the salaries of the ofiicers. 
 
 With these remarks, your Committee beg leave to refer to the annexed 
 statements, as exhibiting the capital, resources, &c. of the institution. 
 
 SOLOMON COHEN, Jr., CJmirman. 
 
 STATEMENT A. 
 
 Capital of the Branch Bank of the State of South Carolina, 
 
 at Georgetown, on the 30th September, 1831,. $547,448 10 
 
 The above capital consists of the following items : 
 
 Notes in fair standing $429,407 00 
 
 Notes in suit and judgments, 35,537 93 
 
 Bonds, Mortgages, and assigned Judgments — 78,943 17 
 
 Keal Estate, valued.at 3,500 00 
 
 $547,448 10 
 
 STATEMENT B. 
 The President and Directors are indebted to the Bank, as 
 
 principals, in the sum of ■ $81,858 00 
 
 The Officers, as principals, __- 8,650 00 
 
 $90,508 CO 
 
 The President and Directors are indebted, as endorsers, $39,548 00 
 
 The Officers, as endorsers, 19,497 00 
 
 $59,045 00 
 
 (1833.) 
 FBOM THE COMMITTEE APPOINTED IN 1832. 
 
 The Joint and Special Committee appointed under a Resolution, passed 
 at the last Session of the Legislature, " to examine into the state and con- 
 dition of the Bank of the State of South Carolina, in Charleston, and to 
 report on the same," beg leave respectfully to report : 
 
 That the Committee, impressed with the importance of the Bank, as an 
 institution intimately connected with the finances of the State, have en- 
 deavored diligently and faithfully to discharge the duties imposed upon 
 them. As the Resolution of the Legislature did not specify any particular 
 object of inquiry, it became requisite for the Committee to arrange for 
 themselves the course of their investigation. Exhibit A, annexed to the 
 Beport of the Committee, contains the statement of the annual transac- 
 tions of the Bank, up to the 1st of October, 1833, which closes the fiscal 
 year. The different items in this statement have been regularly vouched, 
 by the officers of the Bank, to the satisfaction of the Committee. Exhibit 
 B,also annexed to the lleport, is the correspond!" n,ff statement of the trans- 
 
176 RKPOKTS OF INVESTIGATING COMMITTEES. 
 
 actions of the Bank for the year ending on the Ist of October, 1832. In 
 examining the affairs of the parent Bank, as exhibited in these statei^ients, 
 the Committee deem it sufficient to notice the following facts, which they 
 would submit to the consideration of the Legislature, viz : 
 
 1st. As to the condition of the capital of the Bank. 
 
 2d. As to the clear profit of the institution for the last two years. 
 
 3d. As to the amount of bills issued, and the amount in circulation. 
 
 4th. As to the nature and sufficiency of the securities held by the Bank 
 for permanent loans, as also on notes and bills discounted. 
 
 And lastly, as to the general condition and management of the institution 
 since the last examination of its affairs by a Committee of this House. 
 
 1st. The Committee report that in the year 1819, the capital of the Bank 
 had, by gradual accession, amounted to $1,196,220 65. In that year the 
 transfer of the annual balances of the Treasury to the capital of the Bank, 
 was discontinued by the direction of the Legislature, and from that period 
 the capital remained stationary until the lOtli April, 1828, when, by the 
 purchase and cancelling of three and six per cent. State Stock, as directed 
 by law, amounting to $39,902 17, it was reduced to the present sum of 
 $1,156,318 48. The Committee consider it important to distinguish be- 
 tween that portion of the capital of the Bank which is invested in solid 
 and permanent securities, and what may be considered as embarked in the 
 vicissitudes of banking operations. It appears by exhibit A, that the por- 
 tion of capital invested in Bonds secured by mortgages, and in State and 
 Bank Stock, amounts to $588,840 09^ which produces a steady revenue to 
 the Bank, independent of the income derived from banking operations. — 
 If to this be added the items of Bank and real estate, estimated at $32,- 
 529 67, and the specie in the vaults of the Bank, on the 1st of October, 
 1833, which was ascertained by counting and weighing, to be $198,353 82, 
 and that in the possession of the Tellers, ($1,505 85,) it will produce an 
 aggregate of capital of $821,229 45, existing in a form entirely secure 
 from the risks incident to commercial paper. The residue of the capital, 
 viz : $335,089 95, is represented by Bills and Notes Discounted by the 
 Bank. The advantages of a permanent investment of Bank capital appear 
 to be obvious. The capital being placed in a safe and productive form, all 
 the transactions of the Bank wdll rest on a solid basis. The interest of 
 Bank proprietors and creditors are rendered in a great degree secure from 
 casualty, and the confidence of the community in the character of the in- 
 stitution must be essentially increased, while a certain and steady interest 
 is realized on the amount of capital invested, exclusive of the profits re- 
 sulting from the commercial operations of the Bank. Banks with capitals 
 thus invested, carrying on their operations exclusively on their credit, would, 
 it is believed, be far more likely to be restrained by prudential considera- 
 tions from excessive issues, so often the source of commercial embarrass- 
 ment and ruin, than where both the capital and credit of the Bank are thus 
 employed. This will be apparent, if it be considered that a Bank whose 
 capital is employed in its operations, will always have a demand on its debt- 
 ors to the amount of its capital, for specie, or the notes of other Banks con- 
 vertible into specie, so that if obliged by any exigency to recall its paper 
 and contract its issues, it will have its capital restored in the shape of coin. 
 But Banks which operate exclusively on their credit, having no demand for 
 capital on those who are indebted for discounts, will possess no such means 
 of obtaining specie, while at the same time they will be responsible in coin 
 for every dollar of their paper, and thus in the CA^ent of excess in their 
 
REPORTS OF INVESTIOATING COMMITTEES. 177 
 
 issues, be far less able to meet tlie eftect of a reaction. It is thought, and 
 seemingly on very good authority, that a permanent and productive invest- 
 ment of the capital of Banks, united with a positive limitation of their is- 
 sues to the amount of their capital, would tend, in a great degree, to re- 
 move all possible objections to the Banking System — and that most, if not 
 all, the evils which are supposed to flow from it would be thus pre-, 
 vented. It affords the Committee pleasure to state that these views are 
 fully entertained by the President of the Bank ; and that since he has been 
 in office, he has strictly pursued, as far as he was able, the policy they re- 
 commend. 
 
 2d. The committee further report, that the nett profits of the institu- 
 tion, for the years 1832 and 1833, amounted each year, to $120,000. This 
 is exclusive of the sum of $19,764 43, carried, last year, to the account of 
 profit and loss ; and also of $1 1,239 10, the premium paid on the purchase 
 of stock, which was added to the portion of capital invested. Taking the 
 clear profits of the Bank, it will be found, that for the period specified, 
 the rate of interest on the amount of capital, exclusive of the Sinking 
 Fund, is more than 10 per cent ; and inclusive of the Sinking Fund, which 
 is rendered, by'law, a part of the available means of the Bank, for banking 
 purposes, it will be more than 7 per cent. It may be proper to state, that 
 the clear profits of the Bank are applied, first to the payment of the inter- 
 est on the public debt, at present amounting to $85,500, and the balance, 
 $S4,500, is carried to the credit, and constitutes the actual increase of the 
 Sinking Fund. The committee would hero beg leave to refer to the ex- 
 hibit marked C. for a statement of the progress of the accumulation of the 
 Sinking Fund. 
 
 3d. As to the amount of Bank bills issued, the committee would further 
 report, that it appears by exhibit A, that the aggregate amount of bills is- 
 sued is $1,862,442 19, and if from this general aggregate be deducted the 
 amount in Bank, we will be able to ascertain the amount of bills now out- 
 standing. The amount of bills in the parent Bank was $506,429 18, which, 
 when substracted from the whole amount issued, will leave a balance of 
 $1,356,013 01, to bo still further reduced by the notes held by the several 
 branches. If, with this, bo estimated the probable amount of bills which 
 have been either lost or destroyed in the course of business, it will satisfac- 
 torily appear, that the actual amount now in circulation, is considerably 
 less than the aggregate of the capital of the Bank and the Sinking Fund — 
 perhaps not exceeding two-thirds of that aggregate ; and the committee are 
 induced to believe that this will be found a correct statement of the amount 
 in circulation. 
 
 4th. The committee further report, that after a careful examination of 
 the schedule of bonds, amounting to $316,643 69, and of the Bill Ledger 
 for bills and notes discounted, amounting to $686,746 74, and also of the 
 three last items on the credit side of exhibit A, they came to a conclusion 
 most decidedly favorable to the character and sufficiency of the securities 
 held by the Bank. Such debts as either hav« been sued to judgment, or 
 are now in suit, are of course excepted from the remarks of the committee ; 
 though of these, it is certain that a considerable amount will eventually be 
 realized. But of the securities held by the Bank, which do not come under 
 this class, the committee were unable to discover a single debt which could 
 be considered as bad, and very few, if any, which appear at all doubtful. 
 The committee take pleasure in expressing their unqualified approbation 
 
 23 
 
178 REPORTS OF INVESTIGATING COMMITTEES. 
 
 of the prudence and integrity with wliicli the affairs of the institution have 
 been managed in this respect. It may be here proper to state, that the 
 amount due by Directors of the Rank, on the 21st of October, 1833, was 
 $71,853, which appeared to the committee to be quite as well secured as 
 any other debts in the Bill Ledger. 
 
 Lastly, it only remains for the committee to express their opinion 
 as to the general condition and management of the Bank since the last re- 
 port made upon the subject by the committee of the Legislature ; as may 
 be inferred from the preceding part of the report, the committee are of 
 opinion that the present condition of the Bank is exceedingly prosperous 
 and safe, and that the institution was never managed with- more ability, 
 than it has been for the last two years. 
 
 The review of its affairs presented by the committee, shows that the 
 profits of the Bank during the last fiscal year, have been greater than at 
 any former period ; and the committee have already expressed their opin- 
 ion that the funds of the Bank are, in general, well secured. The commit- 
 tee cannot forbear the remark, that they believe that these results are very 
 much to be ascribed to that unwearied zeal, and rigid fidelity in the dis- 
 charge of duty, which have always distinguished the character of the pres- 
 ident of this institution. Perhaps no better proof of the justice of the 
 encomium bestowed upon this officer in the present instance, could be of- 
 fered, than the fact, that since he has been in office, while the transactions 
 of the Bank have been increased and extended, not one dollar of loss has 
 yet been realized. In the course of their investigations, the committee 
 became satisfied that the labors of this officer, in the arrangement and 
 supervision of the complicated concerns of the parent Bank, and in the 
 requisite correspondence with its several branches, are more arduous than 
 they ever have been, and far exceeding those which usually appertain to 
 the office of the President of a Bank ; and the committee are of opinion, that 
 some provision for his relief should be made by the Legislature. They 
 would, therefore, respectfully recommend, that the President of the Bank 
 be authorized to employ a clerk to assist him in the execution of his du- 
 ties, who shall receive, as a compensation for his services, the sum of three 
 hundred dollars per annum. 
 
 Before concluding their report, the committee would respectfully invite 
 the attention of the Legislature to the subject of re-chartering the Bank. 
 By the terms of the Act of Incorporation, the charter of the Bank will 
 expire on the 1st of May, 1835, and it is, therefore, most probable that the 
 question of the renewal of the charter, will be brought before the Legisla- 
 ture at the present session. Judging of the future, by the past operations 
 of the Bank, it cannot be doubted that the renewal of its charter would 
 prove highly beneficial to the financial concerns of the State, a»d the com- 
 mittee would indulge the hope that no objection will be made to this mea- 
 sure. To present in one view the advantages derived from the Bank, as 
 a source of revenue, the committee beg leave to refer to exhibit D, which 
 contains a statement of the capital^ income^ and rate per cent, of the Bank, 
 from the time of its establishment to the present period. From this state- 
 ment, it appears that the nett profits of the Bank have amounted to 
 $1,900,159 61, and the average rate per cent, on its capital has been 
 $9 79 per annum. 
 
 The committee also incline to the opinion, that by the instrumentality of 
 the Bank alone, without any increase of taxes, the payment of the public 
 
REPORTS OF INVESTIGATING COMMITTEES. 179 
 
 debt may be effected at the several periods when the same shall respective- 
 ly fall due. By exhibit E. annexed to the report, it will appear that of the 
 debt due by the State, the sum of $300,000 will be payable in 1840; 
 200,000 in 1843; 250,000 in 1845; and 300,000 in 184G. The commit- 
 tee are of opinion, that by the application of the Sinking Fund, in whole 
 or in part, as may be deemed most expedient, and by issues of six per 
 cent, stock (which will always command a premium.) for the residue of the 
 several amounts, as the same shall bo respectively payable, the payment of 
 the whole public debt may be eventually effected without resorting to an 
 increase of taxes. Upon this subject, the committee have had the pleas- 
 ure of a free conference with the President of the Bank, who has given to it 
 mature deliberation ; and the committee would respectfully recommend 
 that he be requested to communicate his views upon the subject, fully, to 
 the Legislature. 
 
 All which is respectfully submitted. 
 
 W. P. FINLEY, Chairman. 
 
180 REPOKTS OF INVESTIGATING COMMITTEES. 
 
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KEPORTS OF INVESTIGATING COMMITTEES 
 
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182 
 
 REPORTS OF INVESTIGATING COMMITTEES. 
 
 C. 
 
 Statement of tJoe i^rogrcss of the accuimdation of tlie Sinking Fund. 
 
 1823, October, $80,454 45 
 
 1824, " 136,716 99 
 
 1825, " . 191,283 85 
 
 1826, " ---.-. 235,506 99 
 
 1827, " - 231,360 64 
 
 1828, " 221,377 31 
 
 1829, " 251,251 31 
 
 1830, '• 277,485 17 
 
 1831, " - 302,852 68 
 
 1832, " -. 336,883 15 
 
 1833, " --- .371,409 78 
 
 D. 
 
 Statement of tJie Capital^ Income.^ and Rate per cent, of the Bank from 
 tJietime of its cstahlisJunent^ up to the present period. ' 
 
 Fiscal Year. 
 
 Capital. 
 
 Nett Income. 
 
 R-ate per Cent.' 
 
 1814 
 1815 
 
 $179,223 46 
 
 297,253 68 
 
 $3,325 21 
 48,900 71 
 
 $1 85 
 16 44 
 
 1816 
 
 391,890 39 
 
 63,022 69 
 
 16 08 
 
 1817 
 
 583.926 35 
 
 76,507 91 
 
 13 16 
 
 1818 
 
 887,872 59 
 
 105,838 07 
 
 11 92 
 
 1819 
 
 1,224,543 37 
 
 107,593 95 
 
 9 56 
 
 1820 
 
 1,196,220 65 
 
 100,287 37 
 
 8 38 
 
 1821 
 
 1,196,220 65 
 
 86,525 38 
 
 7 23 
 
 1822 
 
 1,196,220 65 
 
 130,072 18 
 
 10 03 
 
 1823 
 
 1,196,220 65 
 
 113,207 61 
 
 9 46 
 
 1824 
 
 1,196,220 65 
 
 116,350 58 
 
 9 71 
 
 1825 
 
 1,196,220 65 
 
 115,042 96 
 
 9 61 
 
 1826 
 1827 
 
 1,196,220 65 
 1.196,220 65 
 
 70,500 00 
 75,000 00 
 
 5 89 
 
 6 26 
 
 1828 
 
 1,156,318 48 
 
 113,802 95 
 
 9 83 
 
 1829 
 
 1,156,318 48 
 
 112,000 00 
 
 9 68 
 
 1830 
 1831 
 
 1,156,318 48 
 1,156,318 48 
 
 112,182 04 
 120,000 00 
 
 9 70 
 10 37 
 
 1832 
 
 1,156,318 48 
 
 120,000 00 
 
 10 37 
 
 1833 
 
 1,156,318 48 
 
 120,000 00 
 
 10 37 
 
 $1,900,156 61 
 
 E 
 
 Statement oftlie Pidilic Debts. 
 Six per Cents, of 1820-- i-$800,000 RcdeemaLU 
 
 Five 
 
 1822 200,000. 
 
 1824 250,000 
 
 1826 300,000. 
 
 1840. 
 
 1842 
 1845 
 
 1846 
 
IIEPORTS OF INVKSTIGATING COMMITTEES. 183 
 
 BRANCH AT COLUMBIA. 
 
 The Comittee appointed at the last Session of the Legislature to exam- 
 ine into the affairs of the Branch of the Bank of the State at Columbia, 
 report : 
 
 That it affords them pleasure to say, that upon examination, they believe 
 this Branch of the Bank to be in a flourishing condition. Its profits this 
 year, carried to the credit of the mother Bank, on the 30th of September, 
 1833, the end of the fiscal year, amounted to ($41,060 56) forty-one thou- 
 Siind six hundred and sixty dollars and fifty-six cents, after deducting three 
 thousand nine hundred and sixty three dollars and forty-five cents,($3,9G3- 
 45,) for expenses in fitting up the new banking house, besides the usual 
 expenses ; and this, too, notwithstanding the capital of the Branch has 
 been reduced, within the two last years, upwards of two hundred thousand 
 dollars, (200,000.) 
 
 Your Committee beg leave to submit the following 
 
 STATEMENT: 
 
 TJtc condition of tJte Branch of the Bank oftJie Statc^ at Columbia^ on the 
 SOth Sc2?tcmber, 1833. 
 Dr. 
 
 1833. September 30. To the mother Bank .-.$798,57.4 07 
 
 " '^ Columbia Treasury. _ - 61,19021 
 
 " " Camden Branch 61179 
 
 '• " Personal Deposits 74,179 60 
 
 $934,555 67 
 ^ ^Cr. 
 
 1833. September 30. By Notes discounted $710,803 02 
 
 " Drafts payable in Charleston. :. _ . 92,660 00 
 
 " •' " " New York 10,000 00 
 
 " " " " Columbia 3,570 00 
 
 "Bonds 86,477 84 
 
 "Judgments __ . 2,194 42 
 
 "Cash 28,850 39 
 
 $934,555 67 
 All which is respectfully submitted. 
 
 November 30, 1833 
 
 D. J. McCOBD, Chairman. 
 
 BRANCH AT CAMDEN. 
 
 The Committee appointed at the last Session of the Legislature to ex- 
 amine into the affairs of the Branch of the Bank of the State, at Camden, 
 report : 
 
 » They met, by appointment, at Camden, on the 20th of this month, and 
 proceeded to examine the books and accounts of the Bank ; and the result 
 of their examination, was the opinion, that the institution is in a prosperous 
 condition, and its various departments have been conducted with ability 
 and integrity. |They beg leave to submit also, the annexed statement, show- 
 ing the profits of the Bank for the last fiscal year. 
 
 F. W. DAVIE, Chaiman. 
 
184 REPORTS OF INVESTiaATlNO COMMITTEES. 
 
 STATEMENT, 
 
 Shoiving the profits of the Braiich of the Bank of the State of South Caro- 
 lina^ at Camden^ for tJie year ending the SOth Sej^temher^ 1833. 
 
 Dr. 
 
 To Discount Account- 
 Interest Account — 
 Exchange Account. 
 
 ..$23,240 25 
 
 ..._4,429 76 
 
 1,872 23 
 
 Ce.. 
 By Officers' Salaries.- -__$4,8 00 00 
 Incidental expenses 143 76 
 
 Nett profits carried to 
 the credit of the S. 
 of South Carolina- -.24,598 48 
 
 
 $29,542 24 
 
 $29,542 U 
 
 Montldy statement' of the ^Branch of the Bank oftJie State of South Caro- 
 lina^ at Camden^ of. the ^Oth Septembe)'^ 1833. 
 
 Dr. 
 
 To Capital-- $400,000 00 
 
 Discount Account- ----23,240 25 
 
 Interest Account -4,429 76 
 
 Exchange Account ^ _ . 1 ,872 23 
 
 Individual Deposits 21,001 68 
 
 The parent Bank 76,656 60 
 
 $527,200 47 
 
 Cr. 
 By notes discounted.. .$409,162 
 Notes protested- .:__-- 14,769 
 
 Notes in suit -17J415 
 
 Notes in Judgment 8,967 
 
 Drafts due in Charles- 
 ton-- 30,950 
 
 Balances paid 4,800 
 
 Incidental expenses 143 
 
 Cash 
 
 hand 40,979 
 
 Over drafts 14 
 
 00 
 25 
 
 00 
 00 
 
 00 
 00 
 76 
 34 
 37 
 
 $527,200 47 
 
 Taken from a statement made by the President of the Bank. 
 
 F. W. DAVIE, Chairman. 
 
 November 28, 1833. 
 
 BRANCH AT GEORGETOWN. 
 
 The Special Committx^e appointed at the last session of the Legislature, 
 to inquire into the situation of the Branch Bank at Georgetown, beg leave 
 to report : ' 
 
 Thaton the 31st October, 1833, the amount for which this branch was 
 chargeable in the account with the parent Bank, and individual depositors, 
 was $3 15,764 58. 
 
 That of this sum, the amount invested in the notes and bonds of indi- 
 viduals, was $297,590 44. 
 
 The balance was composed of the real estate owned by the Bank, and 
 the cash in hand. 
 
 The committee have carefully examined the manner in which the debts 
 due to the Bank are secured ; and they are gratified in being able to state 
 their conviction, that of the above amount, not more than seven or eight 
 thousand dollars will be finally lost. These debts, which the committee 
 
IIEPOIITS OF INVESTiaATINa COMMITTEES. 185 
 
 regard as bad, are of loug standing, have been considerably reduced — ^and 
 those who have the management of the institution, are very confident that 
 a large portion of the balance will be ultimately realized. 
 
 From various considerations, it has been deemed expedient by the parent 
 Bank, that a very limited business should be transacted by this Branch 
 during the past year, in discounting notes. The collections during that 
 period, which have been remitted to the parent Bank, amount to $265,460- 
 00, reducing the capital in October last, to the sum stated at the commence- 
 ment of this Report. - In the meantime, the active operations of the Bank 
 have been chiefly confined to the purchase of drafts ; a business essentially 
 advantageous to the institution, and affording much accommodation to the 
 community. 
 
 In conclusion, the Committee cannot forbear the expression of an opin- 
 ion, that the interests of the Bank of the State, as well as the convenience 
 of a large portion of the community, require a very considerable enlarge- 
 ment of the capital of the Branch Bank at Georgetown. Errors have 
 doubtless heretofore occasionally existed in the management of its affairs ; 
 but those errors have been seen and substantially corrected. The Board 
 of Directors owe little to the Bank, and seem devoted to its prosperity. — 
 The Committee were much aided in their investigations by the intelligence 
 and practical information of the President of this Branch, and they cannot 
 but feel satisfied, that under such management, the public interest, as con- 
 nected with this institution, will be sedulously promoted. 
 
 November 28, 1833. B. F. DUNKIN, Chairman. 
 
 (1835.) 
 FROM THE COMMITTEE APPOINTED IN 1834. 
 The Joint Committee of both Houses, who were instructed to enquire into 
 the condition of the Bank of the State of South Carolina at Charleston, 
 beg leave to Report, that they assembled at the Banking House in 
 that city, on the 2 1st of October last, and commenced their investigation. 
 They found of Bills and Notes discounted, $894,108 62 
 
 Bills, notes, and bonds in suit, 75,865 85 
 
 $959,974 47 
 
 Bonds secured by Mortgages, 543,659 63 
 
 In Gold, 255,941 91 
 
 In Silver, 236,136 00 
 
 In Cents, 1,643 00 
 
 $493,720 91 
 
 In Bank notes, 170,359 75 
 
 In hands of Tellers, 64,736 31 
 
 Commissioners Charleston Bank, 44,650 00 
 State 3 per cent. Stock 18,954 15 
 
 5 do. do. 74,193 44 
 
 6 do. do. 80,541 61 
 Commercial Bank Stock, 366 25 
 
 $728,816 97 
 
 $218,705 45 
 
 Judgments, 25,027 06 
 
 In United States Bank in Charleston, 275,339 31 
 
 Bank Estate, 35,269 49 
 
 24 
 
 $2,796,792 38 
 
186 REPORTS OF INVESTIGATING COMMITTEES. 
 
 The Coiiiuiitt.ee examined the Bill Ledger, and On comparing the origi- 
 nal notes with the entries, found the amount of notes discounted correct 
 The original Bonds were also examined and carefully compared with the 
 entries in the Books. The Bank notes on hand were carefully counted, as 
 well as the amount of specie, which were likewise found correct. 
 
 The names of the Drawers and Endorsers of the notes and bills due to 
 the Bank, w^ere critically and minutely investigated, as well as the securi- 
 ties to the bonds held by the Bank, and after an examination of the mort- 
 gages held as primary or collateral security, your committee came unani- 
 mously to the conclusion that the amount due to the Bank is sufficiently 
 and amply secured. 
 
 Estimating the capital of the Bank at $1,156,318 48, and deducting 
 from the entire operations of the Bank, the amount passed on the 1st Oc- 
 ber to the credit of the Sinking Fund, and the sum of $45,488 62 for losses 
 incurred in Columbia, and some old debts in Charleston, the nett profits on 
 the capital the past year was over 10 per cent. 
 
 Your Committee are decidedly of opinion, from the information they 
 have derived from a close examination, and from what they themselves 
 know of the solvency of the debtors to the Bank, that the reservation for 
 losses has been ample, and hence the business done by the Bank has been 
 exceedingly prosperous. 
 
 Your Committee are of opinion that the condition of the Bank at this 
 time is remarkably flourishing, and that to the valuable officer at its head, 
 and the vigilant Board of Directors, are due the credit of having managed 
 .its concerns with great skill and ability, and with unshrinking fidelity to 
 the State. Indeed, notwithstanding the heavy losses sustained three years 
 since, great usefulness has been diffused through the agency and operations 
 of the'Bank, and large profits have been realized to the Treasury of this 
 State. 
 
 The Bank now stands in a condition to meet the impulse which is about 
 to be given to the enterprise and public improvement of the country. 
 
 J. HAMILTON, I Committee of 
 J. E. JENKINS. S tU Senate. 
 HENRY GOURDIN, ) ^ -,, . 
 J. F. MINTZING, \ Committer of 
 
 E. H. EDWARDS. S ^'^^ ^''^^^ 
 
 (1835.) 
 BRANCH AT COLUMBIA. 
 
 The Joint Committee appointed to examine the Branch of the Bank of 
 the State of South Carolina, at Columbia, beg leave to report : 
 
 That, in obedience to the joint resolution of the last session, the Com- 
 mittee met at said Branch, on the 17th November, and proceeded to dis- 
 charge said duty. 
 
 The books and papers were all promptly opened and presented for the 
 inspection of the Committee, and every facility was politely affi^rded by the 
 exemplary officer presiding over said Branch, to enable the Committee to 
 make a thorough examination. 
 
 The Committee took up the Monthly Report, ending the 31st of October, 
 a copy^ of which is herewith exhibited, and after two days investigation, 
 found it entirely correct in every particular. 
 
REPORTS OF INVESTIGATING COMMITTEES. 187 
 
 With the exception of $4,694, considered bad, a portion of which was 
 discounted upwards of ten years ago, the Committee regard all the bonds, 
 notes, and drafts, as well secured, and as safe as the most prudent financier 
 could possibly desire. 
 
 The Committee make this statement with the greater confidence, as some 
 of the members are personally acquainted witli the pecuniary circumstances 
 of most of the obligors, drawers, and endorsers ; and although some of the 
 notes are under protest, and some in suit, yet the Committee are fully sat- 
 isfied that they are equally secured and safe, and that the greater portion 
 of such" cases may be Justly attributed to accidental causes. 
 
 The Committee deem it* due to the Directors of this Branch, to stata 
 that they have drawn but a very small portion of the amount discounted, 
 and several of them not a cent ; nor have they endorsed to any considera- 
 ble amount, and that not more for their connexions or friends, than for the 
 deserving members of the community ; nor can the Committee omit to hold 
 up as an example worthy of all imitation, a regulation introduced into this 
 Branch, that no Director is allowed to endorse for another. 
 
 In conclusion, the Committee beg leave to add, that the result of their 
 examination was not only truly satisfactory, but gratifying to the highest 
 degree, and enables them to state, with perfect confidence, that this Branch 
 is conducted by the Directors, and especially by the efficient and able offi- 
 cer at its head, with great integrity and ability, and with great advantage to 
 the State. J. GREGG, -C/^a^>wrt?^. 
 
 November 18th, 1835. 
 
 Copy of tJie Monthly Report of the Branch of the Bank of tite State of 
 South Carolhia^at Columhia^ending the 31 5^ October^ 1835. 
 
 To Notes discounted, ^586,966 67 
 
 Drafts payable in Charles- 
 ton, and under protest. . . 12,012 17 
 Drafts becoming due in 
 
 Charleston, 18,800 00 
 
 Drafts payable in Columbia 7,140 00 
 
 Bond account 61,280 52 
 
 Funds in New York 7,070 44 
 
 Salaries, 691 65 
 
 Cash 163,935 42 
 
 S-857,896 87 
 
 By Bank of the State i$'667,001 25 
 
 Discount account, 3,125 55 
 
 Interest on Bills 269 78 
 
 Treasury , 41,109 19 
 
 Credit by protest account 19 92 
 
 Individual deposits 146,371 18 
 
 $857,896 87 
 
 (1837.) 
 FROM THE COMMITTEE APPOINTED IN 1836. 
 
 The Special Joint Committee of the Senate, to whom it was referred to 
 examine and report the condition of the Bank of the State in Charleston, 
 Report : 
 
 That in conjunction with a Committee of the House of Representatives, 
 they met at the Banking House in Charleston, and commenced the investi- 
 gation, Monday, November the first, which they continued from day to day 
 during the hours of business, until the eleventh. 
 
188 REPORTS OF INVESTIGATING COMMITTEES- 
 
 Instead of examining tlic annual statement prepared for the Legislature, 
 on the first of October, the Committee determined to examine its condi- 
 tion at the date of the examination, and proceeded to verify the statement 
 of the Cashier : 
 
 DR. 
 
 To Capital, $1,156,318 48 
 
 « Bank Notes issued, 1,336,509 00 
 
 « do. do. at Columbia, 22,000 00 
 
 " do. do. under one dollar. 107,806 31 
 
 1,466,315 31 
 
 " Discount account over, 1 73,054 55 
 
 " Discount account received 7,403 94 
 
 " Interest on Notes, &c 3.320 52 
 
 " Interest on Bonds,..-. 863 33 
 
 " Premium account 123 48 
 
 184,765 32 
 
 " State Treasury 161,005 75 
 
 " State Treasury for Sinking Fund_ - . 494,534 02 
 
 " do. do. for Surplus Revenue, 
 from United States, 1,001,422 00 
 
 1,656,961 86 
 
 To Merchants' Bank, New York 94,344 84 
 
 " Merchant's Bank, Boston, 1 0,303 33 
 
 « Bank of Virginia ._- 24,312 31 
 
 128,960 48 
 
 " Profit and Loss account : 3,524 39 
 
 " Contingent account, 32,4 1 5 45 
 
 35,939 84 
 Individual Deposits 672,29 1 64 
 
 5,301,553 43 
 CR. 
 
 By Bills and Notes Discounted $1,599,128 74 
 
 " Bills, Notes and Bonds in Suit 1 66,70 1 07 
 
 $1,765,829 81 
 
 " Bonds secured by Mortgage, 570,630 55 
 
 CASH. 
 
 By Specie, Cashier _.-. 302,198 58 
 
 " Bank Notes, do 840,523 12 
 
 Bank Notes and Specie, Tellers, 62.897 15 
 
 1,205,618 85 
 
 " Branch Bank, Columbia, 769,938 26 
 
 " Branch Bank, Camden, 586,067 53 
 
 " Hamburg Agency, - . 1 4,962 87 
 
 " Georgetown do 20,286 50 
 
 1,356,005 79 
 
 35,249 37 
 
BEPORTS OF INVESTIGATING COMMITTEES. 189 
 
 " Bank of Charleston Stock 
 
 •' 3 per cent. State do. 
 
 " 5 per cent. do. do. 
 
 " 6 per cent. do. do. 
 
 " Bank United States do. 
 
 " Louis. Charleston, and Cincinn. R. R. do. 
 " Commercial Bank 
 
 « Bank Estate 
 
 •' Keal Estate, 
 
 " Judgments 
 
 " Bank United States. 
 " Contingent expenses. 
 
 98,600 00 
 
 
 18,156 67 
 
 
 •84,360 10 
 
 
 90,011 61 
 
 
 3,904 00 
 
 
 2,500 00 
 
 
 486 25 
 
 
 
 298,018 63 
 
 
 29,773 47 
 
 
 4,706 23 
 
 
 
 34,479 70 
 
 
 25,027 06 
 
 
 4,658 55 
 
 
 5,035 12 
 
 $5,301,553 43 
 
 C. M. FURMAN, Cashier. 
 
 November 6th, 1837. 
 
 The several items of '• Capital," " State Treasury," " State Treasury 
 for Sinking Fund," " Ditto for Surplus Revenue from tfnited States" were 
 vouched by certificate of the Treasurer of the Lower Division. — In exam- 
 ining the item of " Bank Notes Issued," the Committee found that three 
 Books of issues are kept by the Bank, one each by the President, Cashier, 
 and Book-keeper. In these books, all the notes executed by the Bank, with 
 the dates and every particular of identification, are charged, and bills de- 
 stroyed are credited. From a comparison of these books, the Committee 
 were satisfied that the balance exhibited in the statenient was correct. 
 
 The items of " Discount Account," old and new, " Interest on Bonds," 
 " Interest on Notes," &c. and " premium account," were compared with 
 the accounts in the Books, and were found correct. In the same manner 
 were vouched the items of " Merchant's Bank, N. Y." " Merchant's Bank, 
 Boston," and " Bank of Virginia," which consists of deposits to the credit 
 of those Banks. " Profit and Loss account," and " Contingent account," 
 were ascertained to be true balances of those accounts. By the first it ap- 
 pears that that sum has been realized from debts considered desperate. — 
 The latter is in fact a Profit and Loss account. The credit of the account 
 consists of $20,638 73 received from the profits of the last year, and $34,- 
 400^ 00, for profit on the sale of Charleston Bank Stock. $22,623,28, are 
 debited for losses during the last year ascertained. 
 
 In examining " Bills and Notes Discounted," " bills, notes and bonds in 
 suit," and " bonds secured by mortgages," the bill and bond ledger were pro- 
 duced to the committee, who called for every bill, note and bond, which were 
 produced, except when actually delivered to the Attorney of the Bank, and 
 the sufficiency of the maker and endorsers of each note, and the principal and 
 sureties of each bond, with the value of the property mortgaged, was sepa- 
 rately considered, and the Committee agreed unanimously, that considering 
 the large amount, the security for the loans of the Bank was very satisfac- 
 tory ; and evinced a prudent and careful administration in this particular. 
 
 The amount of bills and bonds in suit, is larger than usual. But a con- 
 siderable portion of this sum should be properly classed among suspended 
 debts, (of which the Bank keeps no separate account) being bonds and bills 
 
190 REPORTS OF INVESTIGATING COMMITTEES 
 
 put in suit, in consequence of tlie omission of the parties to comply with 
 the rules of the Bank, or in which, hy death of some of the parties, a com- 
 pliance is not practicable. Of the entire sum^ the committee agreed that 
 but a small part is in danger. The " Cash," consisting of specie and bank 
 bills in charge of the Cashier and Tellers, was verified by counting the bills 
 and weighing the specie. The items of the branch Bank at Columbia, 
 branch Bank at Camden, and Agencies at Georgetown and Hamburg, 
 could be vouched at the date of the statement, only by the books of the 
 Bank. The returns of those Banks and Agencies being brought up to 
 the 1st of October, the end of the fiscal year. The commmitte were in- 
 formed by the president, that the amount charged to the agent at Ham- 
 burg, is alleged by him to have becR destroyed by fire. A suit has been 
 directed against the agent. 
 
 All the certificates for the stock - credited in the statement, were pro- 
 duced. " Bank estate," is the cost of the^Banking houses in Charleston, 
 Columbia and Camden. 
 
 " Real estate," represents the balance of an account kept of real estate 
 bid in by the Bank, under jnortgages and judgments ; the price paid by 
 the Bank is debited, and the price on a sale is credited. The lands own- 
 ed by the Bank under this account, are worth much inore than this balance, 
 and when sold will afford a profit. " Judgments" were purchased by the 
 Bank, being prior in date to other judgments held by the Bank, and the 
 possession of which was important to the control of the property. They are 
 two, and are unquestionably good. The last two items were verified, by re 
 ference to the books. 
 
 JOS. E. JENKINS, ) Committee 
 JOHN BRYAN. ( of Senate. 
 
 The Special Joint Committee of the House, to whom it was referred to 
 examine and report the condition of the Bank of the State in Charleston, 
 report: 
 
 That in conjunction with the committee of the Senate, they met at the 
 Banking House in Charleston, and commenced the investigation, Monday, 
 November the first, which they continued from day to day, during the 
 hours of business, until the eleventh. Instead of examining the annual 
 statements prepared for the Legislature, on the first of October, the com- 
 mittee determined to examine its condition at the date of the examination, 
 and proceeded to verify the statement of the Cashier of the 6th November, 
 which follows.* 
 
 The several items of capital. State Treasury, State Treasurer for Sink- 
 ing Fund, Do. for surplus Revenue from United States, were vouched by 
 the certificate of the Treasurer of the Lower Division. In examining the 
 item of Bank notes issued, the committee found that three books of issues 
 are kept by the Bank, one each, by the President, Cashier and Book-keep- 
 er. In these books, all the notes executed by the Bank, with the dates 
 and every particular of identification, are charged, and bills destroyed are 
 credited. From a comparison of these books, the committee were satisfied 
 that the balance exhibited in the statement was correct. 
 
 * This statement was not found in (ho report. 
 
 r^^ 
 
REPORTS OF INVESTIGATING COMMITTEES. 191 
 
 The items of Discount Account,, old and new, Interest on notes, &c. 
 Interest on bonds, and Premium Account, were compared with the ac- 
 counts in the books, and were found correct. In the same manner were 
 vouched the items of Merchants' Bank, New York; Merchants' Bank, 
 Boston ; and Bank of Virginia, which consist of deposits to the credit of 
 those Banks. Profit and Loss account, and Contingent account, were as- 
 certained to be true balances of those accounts. By the first it appears 
 tliat that sum has been realized from debts considered desperate. The lat- 
 ter is, in fact, a Profit and Loss account. The credits of the account con- 
 sist of $20,G38 73, reserved from the profits of the last year, and $34,400 
 for profits on the sale of Charleston Bank Stock. $22,623 28, are debited 
 for losses during the last year ascertained. 
 
 In examining " Bills and Notes discounted," " Bills, Notes and Bonds 
 in suit," and '• Bonds secured by Mortgages," the Bill and Bond Ledgers 
 were produced to the committee, who called for every Bill, Note and Bond, 
 which were produced, except when actually delivered to the attorney of 
 the Bank. The sufficiency of the maker and endorsers of each note, and 
 the principal and sureties of each bond, with the value of the property 
 mortgaged, was separately considered, and the committee agreed unani- 
 mously, that considering the large amount, the security for the loans of 
 the Bank was very satisfactory, and evinced a careful and prudent admin- 
 istration in this particular. The amount of bills and bonds in suit is 
 larger than usual. But a considerable portion of this sum should proper- 
 ly be classed among suspended debts, (of which the Bank keeps no sepa- 
 rate account,) being bonds and bills put in suit, in consequence of the 
 omission of the parties to comply with the rules of the Bank, or in which, 
 by death of some of the parties, a compliance is not practicable. Of the 
 entire sum, the committee agreed that but a small portion is in danger. 
 
 The "Cash," consisting of specie and bank bills, in charge of the Cash- 
 ier and Tellers, was verified by counting the bills, and weighing the specie. 
 The items of the branch Bank at Columbia, branch Bank at Camden, agen- 
 cies at Georgetown and Hamburg, could be vouched at the date of the 
 statement only by the books of the Bank. The returns of those books 
 and agencies being brought up to the 1st October, the end of the fiscal 
 year. The committee were informed by the President, that the amount 
 charged to the agent at Hamburg, is alleged by him to have been destroy- 
 ed by fire. A suit has been directed against the agent. 
 
 All the certificates for the stock credited in the statement, were pro- 
 duced. " Bank estate," is the cost of the banking houses at Charleston, Co- 
 lumbia and Camden. " Real estate" represents the balance of an account 
 kept of real estate bid in by the Bank, under mortgages and judg- 
 ments. The price paid by the Bany is debited, and the price on a sale 
 is credited. The lands owned by the Bank, under this account, are worth 
 much more than this balance, and when sold, will afford a profit. 
 
 " Judgments" were purchased by the Bank, being prior in date to otlier 
 judgments held by the Bank, and the possession of which was important to 
 the control of the property bound by them. They are two, and arc un- 
 questionably good. 
 
 The last two items of the statement were verified by reference to the 
 books. 
 
 EDWARD FROST, Chairman of 
 Committee of House. 
 
 m Anifij 
 
192 REPORTS OF INVESTIGATING COMMITTEES. 
 
 (1837.) 
 BRANCH AT COLUMBIA. 
 
 The Joint Committee of the Senate and House of Representatives, ap- 
 pointed to enquire into the branch of the Bank of the State of South Caro- 
 lina at Columbia, beg leave to report. 
 
 That they met at the Banking House at Columbia, and examined the 
 books and statements of the Bank, and beg leave to present the following 
 table, as representing a correct statement of the condition of this branch, 
 on the last day of September last, the end of the fiscal year, viz : 1837. 
 
 Dr. I C^' 
 
 Sep. 30. To notes discounted Sv50,G09 71 By Bank of the State S722,324 61 
 
 " Bonds 61,878 29 Discount account 40,715 63 
 
 " Drafts protj2sted 4,489 271 Interest on bonds. 4,052 50 
 
 " Do. payable in Interest on bills ' 1,712 72 
 
 Charleston 24,000 00 State Treasury 127,982 38 
 
 " do. do in Columbia 00,340 00 Individual deposits 90,497 03 
 
 Notes in suit 13,«60 67 
 
 " Officers salaries .... 8,504 88 
 " Incidental expenses. 654 53 
 
 " Solicitors salaries . . ,300 00 
 « Cash 122,847 52 
 
 S987,284 87 
 
 S987,284 87 
 
 The nett amount of profit carried this year to the mother Bank, is 
 $37,021 44. 
 
 The committee regard all the bonds, notes and drafts, as well secured, 
 with the exception of about four thousand dollars, which sum was discount- 
 ed at least twelve years ago. In conclusion, the committee beg leave to 
 add, that the result of their examination was entirely satisfactory, and 
 enables them to state with confidence, that this branch is conducted by the 
 Directors, and by the cfiicient ofiicer at their head, with integrity and abili- 
 ty, and with advantage to the State. 
 
 H. J. CAUGHMAN, Chairman. 
 
 November 28, 1837. 
 
 (1837.) 
 BRANCH AT CAMDEN. 
 
 The Joint Committee of the Senate, and of the House of Representa- 
 tives, appointed to examine the affairs of the branch of the Bank of the 
 State at Camden, beg leave to report, 
 
 That by a careful and minute examination of the books of the institu- 
 tion, they were furnished with the best evidence of its safe and favorable 
 conditon. A statement of which, on the 30th of September last, the end 
 of the fiscal year, is herewith submitted. 
 
 To capital . $480,000 00 
 
 Discount account 25,824 49 
 
 Interest do 3,362 92 
 
 Exchange do __« _. 807 48 
 
 'JtS3t.Jbt 
 
REPORTS OF INVESTIGATING COMMITTEES. 193 
 
 Individual depositors 24,939 64 
 
 Mother Bank 104,448 90 
 
 By notes discounted - 
 
 do protested 
 
 do in suit. -^_ 
 
 Bonds _--_ 
 
 Drafts payable in Charleston — . 
 
 Judgments ._.:_, 
 
 Salaries paid. r__: --t- 
 
 Incidental expenses - 
 
 Cash on hand j 
 
 Over drafts •_ 
 
 505,695 
 
 63 
 
 640 
 
 00 
 
 27,922 
 
 00 
 
 20,454 
 
 31 
 
 800 
 
 00 
 
 8,723 
 
 00 
 
 4,950 
 
 00 
 
 398 
 
 42 
 
 69,773 61 
 
 26 42 
 
 $639,383 43 $639,383 43 
 
 Nett amount of profits this yei^r, $24,946 43. 
 
 The committee regard all the debts of the Bank as ultimately good — 
 the notes, bonds and drafts being well secured. The business of the insti- 
 tution has been conducted in a manner most creditable to those in whose 
 charge it has been entrusted. It is' worthy of remark, that Since its es- 
 tablishment not a dollar has been lost. 
 
 In conclusion, your committee would express their high sense of the 
 zeal and ability of the worthy officer at its head. 
 
 JOHN OHESNUT, Chairman. 
 
 December 1st, 1837. 
 
 (1839.) 
 FROM THE COMMITTEE APPOINTED IN 1838. 
 
 The Committee appointed by Joint Resolution of both branches of the 
 Legislature, and charged with an enquiry, into the condition of the parent 
 office of the Bank of the State of South Carolinaj at Charleston, respect- 
 fully report : 
 
 That they have given to the duties assigned them, a minute and labori- 
 ous investigcition, which was commenced early in July, and continued pe- 
 riodically until late in October : during this protracted period, they receiv- 
 ed from the officers of the institution,, both verbal and documentary infor- 
 mation, with that prompt and cheerful attentiohj which contributed largely 
 to facilitate their duties. , 
 
 Exhibit A, contains a general an^ correct representation of the condition 
 of the office on the 15th July, 1839 ; this document will vary in many es- 
 sential particulars, from the corresponding document which will be pre- 
 sented to you, in the annual Report of the President ; a difference, how- 
 ever, which arises exclusively from the different periods of examination, as 
 appears from their respective dates. Your Committee will now proceed to 
 offer you their remarks, on the several sudjects embraced in this document. 
 
 25 
 
194 REPORTS OF INVESTIGATING COMMITTEES 
 
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REPORTS OF INVESTIGATING COMMITTEES. 195 
 
 Tlie Capital of the Bank. — This was created by an Act of the Legis- 
 lature, passed in 1 ecember, 1812, incorporating "a Bank on behalf of and 
 for the benefit of the State," and several amendatory Acts subsequently 
 passed, directing that all the public debt (United States stock) and Bank 
 stocks then held by the State, with all unappropriated balances in the 
 Treasury, should be applied to this object, subject, however, to certain lia- 
 bilities then incurred by the State, and which requisitions your Committee 
 believe were faithfully complied with, as per Exhibit B, in which the whole 
 transaction will appear in detail. (Comptroller's Exhibit.) 
 
 Bank Notes issued. — This subject naturally embraces a very interesting 
 and extensive range of enquiry, which your Committee have elaborated, and 
 now submit in an Exhibit C. A corresponding statement of which they 
 advised should be kept in a book specifically appropriated to this object, in 
 which all future general statements shall be entered. It comprehends fully 
 the whole amount of blank and printed paper received by the Bank for the 
 purpose of issues, and of its issues of every denomination since the first 
 establishment of the institution. This document is important, not only as 
 an evidence of iha fidelity and accuracy with which the affairs of the Bank 
 have been hitherto administered in this essential particular, but also, as 
 presenting an exhibition of facts, on which the most reasonable conclusions 
 may be founded of the large amount of profit which the State, through it« 
 Bank, will have derived from this source, and particularly from bills under 
 the denomination of $5, and on change bills. 
 
 Your Committee are so well assured, that it constitutes no part of the 
 policy of this State to supply its cofiers through any indirect means, but is 
 so strikingly in opposition to the gen<;ral character of its legislation, that 
 it will not forego this opportunity of urging upon the Legislature the pro- 
 priety of abridging the privilege of the Bank, of issuing any bills under 
 the denomination of five dollars. If it be important that a specie circula* 
 tion, to a given amount, be retained within this State, and that its citizens 
 ^e protected against an unequal and indirect scheme of taxation, the power 
 to make such issues should be at once restrained. Your Committee are, 
 however, of opinion, that seasons do occur in which the exercise of this 
 privilege may be wisely and judiciously accorded to the Banlc ; it should, 
 however, be temporary, and adapted to the public necessities. In time of 
 war, the metallic currency is uniformly absorbed, and during periods of 
 great commercial derangement, withdrawn from circulation, for the pur- 
 pose of cheapening exchanges. In such seasons, the urgency of the occa- 
 sion and necessity for change, induces irregular emissions from responsible 
 and irresponsible sources, of bills of every character and denomination, 
 which receive a limited and reluctant circulation from the public distresses. 
 In remedy for such evil, and to relieve the public wants at such seasons, it 
 is expedient that the small bills of the Bank of the State be substituted. 
 In the former of these, that is, in time of war, the cause of the emission 
 of such bills would be so manifest, as to preclude the necessity of a refer- 
 ence of the subject to any other tribunal than the President and Directors 
 of that Bank, who would be fully competent to decide on the emergency of 
 the occasion. But in the latter, a season of commercial embarrassment, 
 your Coinmittec would recommend such enactments, as would vest in the 
 Governor of the State, for the time being, authority to grant permission 
 for making such issues, on the joint jipplication of at least three-fourths of 
 the Banks, (numerically,) of the whole State, and on his own convictions 
 
196 REPORTS OF INVESTIGATING COMMITTEES. 
 
 of the propriety of concurring in such application from other evidences of 
 its expediency. 
 
 The present topic also affords a favorable head, under which your Com- 
 mittee would most respectfully recqmmend to the Legislature, that the 
 President and Board of Directors of the Bank of the State be required, 
 immediately after they shall have been elected, to inhibit the reissue of any 
 bill hitherto issued by any previous President, under any pretext whatso- 
 ever, and that all the bills of the Bank hereafter received, shall be forth- 
 with cancelled. Your Committee are fully aware that the adoption of this 
 measure will entail some additional labor upon the officers, and an incon- 
 siderable expense upon the Bank. But as a measure of great practical 
 benefit, due alike to the dignity of the State, and to the public security and 
 convenience, by the Legislature, such reasons sink into insignificance. Un- 
 der any circumstances, it is an unsound policy to press into circulation, 
 bills that have again and again performed all the services for which_^they 
 were designed ; for when they are defaced and torn, and all the precaution- 
 ary means introduced by art and science to prevent counterfeits and to fa- 
 cilitate detection, are obliterated, the impaired condition of the bill holds 
 forth inducements, and tempts the skill and ingenuity of those violators 
 of the law. Besides, the pr§,ctice of issuing such bills, too extensively pre- 
 valent throughout this State, requires the salutary influence of such an ex- 
 ample, and from no source would it operate with more effect than from our 
 own institution. 
 
 This argument, applied to mutilated money, does not embrace all the 
 bills that your Committee advise should be cancelled ; many of the bills of 
 our banks now in circulation, being of comparatively recent issue. But 
 the necessity of the measure will appear, when we consider that it is now 
 twenty-seven years since the Bank has been in operation : during the whole 
 of which period no definite conclusions of the amount of any class or de- 
 nomination of its issues, which have been lost or destroyed, could be reached, 
 except, perhaps, the $100 from the first plate ; and although a well digested 
 plan was originally devised for cancelling all mutilated bills by numbers, 
 it was in practice found impossible of execution ; for long before the bills 
 were regarded too much worn for circulation, and in almost every instance 
 in which they were sulmiittcd to the Board of Directors to be burned, the 
 numbers and letters of the bills, and generally the dates corresponding 
 with their respective scales, were obliterated. The officers were, consequent 
 on this difficulty, required to arrange the bills according to the plates, and 
 not the issues, and in this order only have they been cancelled. Hence the 
 necessity of a general change in its issues. This expedient can determine 
 the precise amount of the bills of the Bank now in existence, and your 
 Committee know of none other so effectual. The moment, too, is most 
 auspicious to the object ; the election of another President, and probable 
 reorganization of the general economy of the institution, will constitute for 
 it a new epoch, to which, in reviewing its proceedings hereafter, our succes- 
 sors will limit their researches. 
 
 Discount Account. — Represents the profits of this office for the current 
 year, and to the date of the Exhibit A. The difference in the amount here 
 represented, compared with that which appears in the annual report of the 
 President, arises from the cause previously stated ; the examination of your 
 Committee occurring in July, and the general statement of the Bank on 
 the 1st of October. 
 
REPORTS OF INVESTIGATING COMMITTEES. 197 
 
 Interest on Notes, Stocks, &c. — This item represents the whole amount 
 of the interest receivable by the Baijk on all subjects yielding an interest, 
 other than the discount on notes and interest on bonds. It comprehends 
 all Bank dividends, interest on State stock, judgment debts, &c. &c. 
 
 Interest on Bonds. — This amount represents the interest arising from 
 money originally loaned, and bonds taken as the evidence of debt, bearing 
 an interest of 7 per cent, per annum, the payment of which is secured by 
 mortgages on real or personal estate or both. On this subject your Com- 
 mittee will offer a few remarks, under an appropriate head. 
 
 Premiums. — The amount of profit derived to the Bank from drafts at 
 home, and on Northern Banks ; in other words, the profits on its Exchange 
 Account. 
 
 Premuims under the State Loan. — A profit arising from the sale of 
 drafts which were made on a part of the first loan for rebuilding Charles- 
 ton, received in New York. 
 
 State Treasury. — Exhibits the amount to the credit of the Treasury in 
 July, since probably reduced. 
 
 Sinking Fund. — The amount accumulated from the profits of the Bank, 
 and pledged by the State to redeem the stock issued to create a-fund for 
 Internal Improvements. 
 
 • Surplus llevenue oftJie United States. — This amount, originally $1,051- 
 422 09 has been reduced to the sum stated by payments ,made to the Cin- 
 cinnati and Charleston Rail Road, under the authority of the Legislature. 
 
 Loan to re-huild Charleston. — This represents the amount negotiated in 
 England, of the two million loan, authorized by the State, to re-build the 
 City of Charleston. [See Exhibit D, which represents the terms on which 
 this amount was negotiated, and the nett proceeds,- as paid into Bank.] 
 
 Bank of Charhston. — This amount is due to the Charleston Bank. Such 
 balances appear from weekly exchanges with each other, among the Banks 
 of the City, and are perpetually fluctuating. 
 
 Bank of Virginia. — This amount is due to the- Bank of Virginia, for 
 that sum collected in this State, an act of courtesy which Banks are usu- 
 ally disposed to reciprocate. 
 
 Individual Dr^osi^.s.-— Comprehend all other deposits than those made 
 by the State Treasury : as the deposits of public officers, incorporations, 
 guardians, &c. &c. enjoined by law, as well as the voluntary deposits of indi- 
 viduals. 
 
 Profit and Loss. — -This amount was recently collected from an individu- 
 al who was considered 'insolvent, and whose debt had been previously pass- 
 ed to the account of profit and loss. 
 
 Your Committee now turn to the credit side of this exhibit. 
 
 Bills and Notes Discounted. — This item represents the whole amount 
 of the active operations of this office, that is, of the banking operations. 
 Your Committee received from the Cashier all the notes, which, in the ag- 
 gregate, make ^he amount here represented; compared each with the office 
 entries, and found them perfectly correct. This amount of discounted bills 
 and notes, appears unusually small for a Bank of such ample and- perma- 
 nent resources as the Bank of the State. The causes of the limited amount 
 will appear as we progress. 
 
 Notes in suit. — Belong to the same class of papers, and exhibit far too 
 great a portion of this particular debt. 
 
 On these two heads, your committee feel constrained, by the obligations 
 
198 REPORTS OF INVESTIGATING COMMITTEES. 
 
 of a higli moral duty, arjsing from the nature of their appointment, and 
 the trust reposed in them by the Legislature, to remark, that a very large 
 proportion of this deht is of a mixed character, having all the permanency 
 of a bond debt, without the legal and collateral security which the latter 
 affords. Promissory bills and notes are, in their very nature, transient ; 
 they express a purpose to be consummated within a limited period, and all 
 the evidences of the sufficiency of their security appear on them. The 
 parties to such papers are rarely required, and but seldom propose, to se- 
 cure the payment of purely business paper by the hypothecation or mort- 
 gage on property of any kind ; but are left freely to use or pledge any or 
 all the property they may hold, for the satisfaction of any other debts 
 they may have contracted. Hence it requires an observant and judicious 
 .Board of Directors to decide on the validity of bills and notes offered for 
 discount, even for the short time for which they are commonly drawn, 60, 
 90, or 120 days. When such paper arrives at maturity, the Banks by com- 
 mon consent, sanction offers for renewal, which generally reduces the origi- 
 nal debt 20 to 25 per cent, — the direction again consult on the validity of 
 the note offered as a renewal, and if either of the parties have failed or 
 become incompetent to ipay, the drawer or endorser is required to improve 
 the condition of the note, by an additional name, or collateral security. 
 This rapid reduction of paper, imparts a healthy action to the Bank ; the 
 security of this quality of its debt, essentially rests upon it^ and the con- 
 stant and copious receipt and disbursement of its own bills and of the bills 
 of all other Banks enables it to form correct views of the extent of business 
 of each, and of the prosperous or adverse circumstances under which it is 
 transacted. Through this means, the Bank protects itself from sudden 
 pressure, being at all times able to contract or expand its issues. In a 
 word, if there be one principle more than another which fatally affects the 
 influence, impairs the utility, and endangers the Bank itself, that principle 
 is a stationary discount debt ; such a debt is found in the Bank of the 
 State, to an alarming amount, which your Committee, without data to fix 
 the sum, but judging alone from the business complexion of its debtors, 
 would estimate at least at one-half of the discount debt. Your Committee 
 request distinctly ^o be understood, that it is not their purpose to say, that 
 this portion of the debt is bad, or that the parties are unable to pay ; for 
 on the contrary, a portion of it is due from thd wealthiest individualst)f the 
 State ; but they do say, that a part of it has become doubtful since it was 
 originally contracted, and through its misapplied indulgence ;- and that its 
 tendency is to increase the amount of its bills and notes in suit and under 
 judgment. Such a debt 4)ecome3 peculiarly obnoxious in another view ; 
 the Bank, created by the funds of the State, is the property of all the citi- 
 zens of the State, and therefore, its general conduct should be directed to 
 the accommodation of the greatest number of those who are its proprietors. 
 If wcaltliy men require large amounts, let them have it ; but make the pe- 
 riods of payment short, and it will pass into the hands q^f those who re- 
 quire less, and in proportion to their ability, will derive commensurate ben- 
 efits. An individual who receives :lfrom the Bank $20,000, and continues 
 the debt for five years, will deprive forty of his fellow citizens of all they 
 may require, a discount of $5,000 for six months. Thus the moiety of the 
 discounted debt of the Bank which remains stationary in the hands of a 
 few favored debtors, operates in the ratio stated, to the exclusion of others 
 having equal claims, thereby creating a monopoly in the hands of such as 
 
EEPORTS OF INVESTIGATING COMMITTEES. 199 
 
 least benefit the Bank, to the exclusion of tliose who might impart to it 
 health and vigt)r. 
 
 At the present conjuncture, when money cannot be purchased at less, 
 perhaps, than 5 or 7 per cent, per month, this condition of the Bank debt 
 assumes its most revolting aspect.; A very few thousand dollars, and for a 
 very short period of time, would relieve the positive distresses of many in- 
 dividuals of competent means ; it would save from the most ruinous pur- 
 chases of money, others who are now compelled to yield the acquisition of 
 years of labor, to save their commercial credit, the mainspring to future 
 prosperity ; and this unhappy condition is endured, that Vifeio more favored 
 may continue to enjoy a common privilege of which they have long since 
 engrossed a full share. To the Bank of the State, such a debt is peculiarly 
 ineligible and inappropriate ; it has become one of the most important du- 
 ties of this Bank, under recent legislative action, to regulate the currency 
 of the State, and though in its effort to comply with this requisition, it 
 should put less money into the general coffers, it would better promote the 
 public prosperity and sustain the dignity of the State, by obeying its man- 
 date. Nothing, your Committee believe, has been done to effect this object ; 
 and nothing can be done while the Bank perseveres in this inert policy, for 
 it must continue to apprehend a spirit of retaliation from any institution in 
 this, or either of the neighboring States, whose excessive issues it would 
 curb or reprove. 
 
 Bonds secured by Mm'tgage. — The practice of lending money in the 
 first instance on Bond, secured by Mortgage on Ileal or Personal Estate, 
 or both, is perfectly anomalous, has no existence, your Committee believe, 
 in any other Bank, and is directly opposed to Bankings principles. The 
 argument, that it is the most secure debt the Bank can contract, is specious, 
 and in no wise excuses the practice : were we to test the value of good 
 bonds and good notes, in open market, we should soon learn, that of the 
 two commodities, good notes were in most esteem. For a Bank, then,- to 
 reject the most valuable of these articles, and discount the least valuable, is 
 at least, in error of conduct. Should the Legislature perceive advantages 
 in this course of policy, which your Committee do not, it would be wise, at 
 once to change the character of the Institution, and transform it into a 
 Loan Office. In this new creation, it would command a far more extended 
 choice of such obligations. The citizens of the whole State, apprised of 
 the change, would each enjoy equal advantages. And from all quarters. 
 State Stocks, Bank Stocks, Lands, Negroes, Houses and Lots, would pour 
 in an ample tide of competition, and security would be piled on security, 
 to obtain a preference. But there are invincible reasons why this change 
 should not occur : First, the institution would cease to be a Bank ; it would 
 necessarily be compelled to yield its chief attribute of a Bank, the power 
 to emit Bills ; for when the whole capital of the Bank is once invested in a 
 stationary debt, the returns of payment are quite too slow to enable it to 
 redeem its Bills, when presented at its own counters for payment, A sta- 
 tionary debt is hostile to Banking, for it is alone by the rapid change and 
 rotation of its debt, that it is enabled to sustain ' an extensive circulation of 
 a larger amount of bills, and the amount circulated will generally be found 
 proportionate to the activity of its business ; for should the Board of Di- 
 rectors determine to invest the whole amount of capital in Bonds, the 
 whole amount of issue would be constrained within the limits of the amount 
 receivable on such Bonds. 
 
200 REPORTS Oi^ INVESTIGATING COMMITTEES. 
 
 The subject now coiisidcred, presents a happy illustration of the remarks 
 made by your Committee,, on the subject of a permanent discount debt ;. a 
 bond debt creates an odious monopoly of the funds of the Bank. The 
 present bond debt is $000,000 ; the amount of debtors 120 — an average of 
 $5,000 to each. Should the whole amount of capital be loaned in the 
 same ratio, 200 individuals would absorb the amount, in exclusion of 50,- 
 000 who have equal rights. There are many other^ and scarcely less co- 
 gent reasons, why the Legislature should frown on this course of policy, 
 which your Committee forbear to urge, having already projected this Re- 
 port beyond a seasonable length; and will only add, that all the reason^ 
 applicable to a stationary discount debt', apply with equal force to a bond 
 debt. 
 
 Bonds given under the Act for re-huilding Charleston. — These bonds 
 were also exhibited to your. Committee, examined and compared with the 
 Bank statement, and found to be correct. The plan .devised by the Attor- 
 ney General, and observed by the Bank, appears to your Committee, t9 be 
 wise and judicious. The . amount supplied for building has, since the in- 
 spection of your Committee, been increased, and will probably, within ano- 
 ther year, embrace the whole amount provided. 
 
 Specie and Bank Notes in the ha^uls of tlie Tellers. — Exhibit E furnishes 
 a detailed statement of the several parcels and sums of money in the hands 
 of the Cashier and Tellers of the Bank, which was satisfactorily examined 
 by the Committee, and found correct. The whole amount in the hands of 
 the Tellers, on the day their money wSs counted, exceeded a little, $140,- 
 000 5 so very large' an amount considerably transcends the daily requisi- 
 tions of the Bank ; and should not, therefore remain in the hands of those 
 ofl&cers. Your Committee very earnestly advise the immediate reduction 
 of the sum, and by frequent eX:changes with the Cashier, to prevent in fu- 
 ture so large an accumulation in their hands. The propriety of this mea- 
 sure is urged with more earnestness at this moment, from the circum- 
 stance that the present incumbents are trjed, faithful and most valued ser- 
 vants of the institution, whose acknowledged integrity, and perfect fidelity, 
 through a long series of years, furnish a j)erfect conviction to their minds, 
 that your Committee could intend no allusion to them, with whom any 
 amount would be safe; but merely to advise a measure of policy, which, 
 through all future time, would be wise and salutary. 
 
 The very great accumulation of mutilated bills in Bank, in the hands 
 both of the Cashier and Tellers, the Committee do also very earnestly ob- 
 ject to ; at present it exceeds $60,0X)0. Your Committee regard it both 
 irregular and improper, that so large a sum of money, of no future use to 
 the Bank, should be permitted to encumber the ofiice, communicating uncer- 
 tainty to the reports of the examining Committees, or subjecting them to 
 the very laborious and obnoxious duty of counting them at each examina- 
 tion. A Committee of three, (the usual number of the examining Commit- 
 tee of the Bank,) would be occupied probably three days in ascertaining 
 correctly, the amount of these bills, from which circumstance, your Com- 
 mittee do infer, that their reports are predicated on the original inspection 
 of the officers, and not with that caution which they observe on all other 
 points of enquiry. Your Committee would, therefore, advise that the Tel- 
 lers pay weekly to the Cashier, the whole amount of such bills as they may 
 receive ; and that the Board of Directors be required to cancel monthly, 
 the whole amount that may be in Bank. 
 
EEPORTS OF INVESTiaATING COMMITTEES. 201 
 
 Columbia and Camden Branches, Hamburg and Georgetown Agen- 
 cies — The several amounts here stated, are balances due the parent Bank, 
 from the several auxiliary offices, and were perfectly satisfactory of the 
 amounts here represented. 
 
 Ba7ih of Charleston Stock. — The number of shares now held by the 
 Bank, is the residue of an original subscription. The Bank having sub- 
 scribed for eighteen thousand shares, ^1,800,000, obtained under the ap- 
 portionment of shares subsequently made by the Commissioners, 1,786 
 shares, for which is paid $178,600 — of the number so obtained, eight hun- 
 dred were sold at an advance of $43 ; producing a profit of thirty-four 
 thousand dollars on the number sold. The remaining 986 shares, repre- 
 sented on the books of the Bank, $98,600, which, with two subsequent pay- 
 ments on the new stock, amounting to $49,500, constitutes the sum total of 
 that stock held in that Bank, and is as represented in the exhibit. Your 
 Committee would barely remark, in reference to this transaction, that al- 
 though the Bank incurred but little hazard of loss by this extraordinary" 
 measure, yet, in a public and moral view, it presents singular and more stri- 
 king features. The State had already pledged the whole capital of the 
 Bank, with allits future profits, to the payment of its own debt. Yet the 
 officers who conducted the Bank, on a mere speculation, the issues of which, 
 like all speculation, was for a time doubtful, pledged anew, not only the 
 whole capital of the Bank, but $740,000 more ; an amount which covered, 
 not the capital only, but the whole amount of the sinking fund. If under 
 such circumstances, the Bank could have maintained its claim in a Court of 
 Law, to an apportionment of shares, it is nevertheless a most dangerous 
 and alarming precedent, against the recurrence of which it is the especial 
 duty of the Legislature to guard. The question, in the abstract, Have the 
 President and Directors a power to pledge the capital, and the sinking fund 
 of the Bank to any object in,compatible with the legislative will and plighted 
 faith of the State 1 — can admit but of one answer ; and if they cannot, have 
 they a right to the profit arising from a pledge thus made? 
 
 TJi7-eeper cent, stock. — This stock being irredeemable in the hands of 
 the holders of it by the State, but at its par value, is retained by them, in 
 the expectation that at some future time, when large surplus balances re- 
 main in the Treasury, the State will be indhced to disincumbcr itself of 
 this debt, and they shall receive the full amount of it ; in this expectation, 
 and because it is a more permanent stock than any other, it is more valued, 
 fluctuating in price from $60 to $80. Your committee think it advisable 
 that the Bank should continue, as occasion ofiers, to purchase this stock, 
 provided they do not exceed the price hitherto paid for it. 
 
 Five and six ^jer cent stock. — These amounts were purchased in antici- 
 pation of the heavy disbursements the Bank will be required to make in 
 the year 1840. All the certificates of stock were presented to your com- 
 mittee, who compared them with the entries in the books of the Bank, and 
 found them correct 
 
 Commercial Bank^ and Bank of tJie United States. — Stock held in 
 those Banks respectively. 
 
 South Western Rail Road Bank., mul Lmcismlle, Cincinnati and 
 Charleston Kail Road. — The amounts here represented, are instalments 
 paid on 500 shares subscribed for to the Bank and Bail Road. For a 
 particular and correct statement of all the stocks held by the Bank of the 
 State, see exhibit F. 
 26 
 
202 REPORTS OF INVESTIGATING COMMITTEES. 
 
 Bank estate. — This item refers to the real estate held by the Bank for 
 banking uses, and represents the amount due to the Eank from this ac- 
 count, and for which the Bank holds property in real estate, amounting, 
 per exhibit G, to $101,000. 
 
 Real estate. — Represents property which the Bank has been constrained 
 to take in payment of debts, contracted in the usual way. See also ex- 
 nibit H. 
 
 Judgments. — Are two judgments purchased, and now held by the Bank. 
 See exhibit I. 
 
 Merchants^ Bank of New York^ Bank of tJie United States^ South 
 Western Rail Road Bank. — These several amounts are due from those 
 Banks to the State. 
 
 Contingent expense account. — The current and incidental expenses of 
 the Bank, including fuel, stationery, repairs and officers' salaries. 
 
 Your committee should, perhaps, at this point, close their report, having 
 already detailed many particulars with unusual, and as may be conceived, 
 unnecessary minuteness ; yet, as their labors were commenced with dis- 
 positions to the exercise of this trust in its most rigid and independent 
 outline, and to present to this Legislature, a full and faithful representa- 
 tion of the affairs of the Bank, they would still, though reluctantly, tres- 
 pass further on your patience. Among the debtors to this office, are seve- 
 ral individuals who have at the same time contracted debts with more than 
 one of its offices. And in at least one instance, at all three of the offices. 
 As these practices, if extensively sanctioned, may lead to liabilities be- 
 yond the competency of the debtor, it is deemed advisable to admonish the 
 board of the necessity of some specific rule on the subject. Under any 
 circumstances, it would certainly better promote the convenience of the 
 party, to have his whole debt concentrated at one office, and that nearest 
 to him ; while the interest of the State would be more effecutually secured 
 by the supervision of a board of directors, who are in the immediate vi- 
 cinity of the debtor, and thereby better informed of his situation and con- 
 dition to pay the debt. There is another class of debtors to which your 
 committee advert with great reluctance — these are incorporated institu- 
 tions generally. To a certain extent, they are irresponsible bank debtors ; 
 they have neither that high sense of moral obligation which affects individ- 
 uals, nor that bank credit of which men engaged in business are usually 
 so sensitive. A protest entered against any such institution, affects no 
 member of it ; and its credit remains unimpaired abroad, so long as they 
 can fulfil their engagements with individuals at home. Should the Bank 
 through super-abundant caution, require personal indorsation, a single in- 
 dividual is rarely found, who possesses the temerity to venture alone ; and 
 if a dozen or more names are attached, it only serves to invest the debt 
 with a resisting influence, which demands more energy and decision to en- 
 force the collection of it, than is generally found in a board of directors. 
 Other objections are also applicable to such institutions ; they are com- 
 monly founded in enterprises which point to some great public benefit ; 
 and in this view, obtain the legislative patronage in charters as liberal as 
 the individuals composing them require. With such evidences of the pub- 
 lic favor to rely on, no emergency can arise, in which they may not calcu- 
 late on the exercise of a spirit of forbearance from any board of directors 
 in this State. The argument employed on this subject is practically illus- 
 trated in the conduct of the Bank itself, in relation to loans of this char- 
 acter. 
 
 i 
 
REPORTS OF INVESTlGATINa COMMITTEES. 203 
 
 In the examination of the bond debt, your committee were led to infer 
 that loans were occasionally made on a mortgage of lands in other States ; 
 this practice cannot be too early checked. The dangerous tendency of 
 such a proceeding requires no comment, and can be regarded in no other 
 light than as a diversion of the funds of the State from its legitimate uses. 
 
 More than a year has passed since the President and Directors of the 
 Bank resolved on changing the location of their office ; and for this pur- 
 pose, purchased a stately edifice directly opposite to the building which 
 they at present occupy. This building is spacious, but rather in its 
 elevation, than the ground dimensions, and will probably cost, when 
 complete, $60,000, It was in part paid for from the profits accruing 
 on a sale of 800 Charleston Bank shares, whicli being at first plaxjed to the 
 profit side of the profit and loss account, was subjected to a reduction of 
 $2,000 ; the remainder, or $32,000, was made applicable to this object, 
 and the balance supplied from the general profits of the Bank. Your com- 
 mittee are particular in this statement, because of the urgency with which 
 inquiry was pressed at the last session of the Legislature. The building 
 was not originally designed, and your committee conceive, is not appropri- 
 ate, from its structure, to the uses to which it is now applied ; it is, how- 
 ever, in point of location, the best that could have been selected. The up- 
 per apartments of this house are well and judiciously arranged for the ac- 
 commodation of two families, and may probably be occupied by the Presi- 
 dent and Cashier of the Bank. But whether the Legislature will justify 
 a purchase of so great an amount, without requiring their previous sanction j 
 whether it would be prudent to expose tlie Bank to the risks incident to 
 the residence of families in the same building ; and whether an indirecfc 
 method of increasing salaries shall be allowed, it is for the wisdom of the 
 Legislature to decide. Your committee have performed their duty — a duty, 
 under any circumstances, the least pleasant that can be assigned to mem- 
 bers of either house — a duty which must be commenced under suspicion, 
 and prosecuted in that spirit ; its search is for irregularities and discrepan- 
 cies of conduct ; and its highest obligation is to disclose them. This has 
 been done with fidelity, and they would close their labors, by congratula- 
 ting the Legislature and the State, on a sound condition of their Bank, 
 one from which little loss may be anticipated, and whose chief errors are 
 ascribable to a temporizing course of policy, and misapplied indulgencies. 
 
 1. Resolved^ That the Bank of the State of South Carolina was created 
 for the general benefit of the citizens of the State, and not for any particu- 
 lar set of men ; that the practice of allowing individuals to borrow and re- 
 tain for a long time, the funds of the Bank, is alike prejudicial to the true 
 interests of the public and of the Bank, and ought not to be allowed ; that 
 it is the opinion of this Legislature, that the President and Directors of this 
 institution should at once correct such a practice, and should take meas- 
 ures to call in all such debts ; and by difi'using the benefits of the Bank 
 among the citizens generally; recover a control over its own resources, and 
 over the currency of the country. 
 
 2. Resolved^ That the President and Directors ought, in the opinion of 
 this Legislature, to encourage by their own example, the due rotation of 
 the funds of the Bank, by discountenancing large or long accommodation 
 loans, and by paying up regularly, at least one-fourth upon all renewals. 
 
 3. Resolved^ That the loan of money upon bonds, is inconsistent with 
 the nature and functions of a specie-paying Bank, and should in no wise 
 be continued ; and that the Bank should take speedy measure^ to place 
 
204 liEPORTS OF INVESTIGATING COMMITTEES 
 
 within its reach, such part of its funds as have been thus diverted from 
 their proper employment. 
 
 4. Resolved^ That loans to incorporated trading companies are among 
 the least desirable uses to which the Bank can apply its funds , their ten- 
 dency being to pass into debts, at the same time stationary, monopolizing, 
 and unavailable, and that this Bank should discountenance any such loans. 
 
 5. Resolved, That the permission to issue bills for the purposes of cur- 
 rency, is a high privilege, which ought to be employed for the public good ; 
 that it is an abuse of this privilege, for the Banks entrusted with its ex- 
 ercise, to give out to the citizens, defaced and mutilated bills, thereby pro- 
 ducing inconvenience to all, and imposing losses upon the poorest and 
 least protected class of society; that the Bank of the State being the 
 agent of the State itself, should not only by its example encourage, but 
 by its direct action, cause the withdrawal from circulation of all such 
 paper. 
 
 6. Resohed, That the quantity of its own mutilated bills, which is now 
 in the possession of the Bank, is an evil, and that the President and Di- 
 rectors should proceed forthwith to destroy the same ; that with a view to 
 prevent its future accumulation, the Teller of the Bank shall deliver up 
 weekly to the Cashier, all such mutilated bills as they shall receive ; that 
 the board shall monthly cause them to be destroyed, and that the President 
 Bhall report to the Legislature as to the discharge of this duty. 
 
 7. Resolved, That at this period of the existence of the Bank, it would 
 be prudent to close and ascertain the amount of its former issues ; that 
 the President and Directors do therefore take immediate measures for a 
 new issue of bills, and that after the first day of October next, none of the 
 bills of the Bank which shall have been signed prior to the first day of 
 January next, shall be issued by the Bank, or by any of its Branches. 
 
 8. Resolved, That it is Qxpedient and proper, that the debt of each debt- 
 or of the Bank, should be concentrated in that office of the Bank which 
 by its proximity, would be best advised of the condition and movements of 
 the debtor ; and that loans ought not to be made to the same parties at 
 two different offices of the Bank, during the existence of the same debt. 
 
 9. Resolved, That any traffic by Banks in stock. Or any speculation by 
 them in the property or produce of the country, is prejudicial to its wel- 
 fare, and detrimental to the public morals ; and that the Bank is hereby 
 enjoined not to deal or trade in any stock, otherwise than in the mere pur- 
 chase of stock of this State, for the pui'pose of redemption or investment, 
 or where stock may be received in commutation of debts heretofore in- 
 curred. 
 
 10. Resolved, That this Bank, as the fiscal agent of the State, ought to 
 be placed in such a situation, as to be enabled to correct or check the im- 
 provident action of other Banks ; that the depreciation within the State, 
 of the bills of Banks incorporated within its limits, is an evil which is op- 
 pressive to the productive industry of the country ; and that the resolution 
 adopted by this Legislature at its last session, relating to the keeping at 
 par the notes of all Banks within this State, ought steadily to be kept in 
 view by this Bank, and, as soon as possible, carried into execution.* 
 
 Bll which is respectfully submitted. 
 
 THOS. BENNETT, Ch. Com.Y Hue Senate. 
 C. G, MEMMINGER, Ch. Com. House of Rep< 
 
 * Neither of tliese resolutions was adopted. 
 
KEPORTS OF INVESTIGATING COMMITTEES. 
 
 205 
 
 Bank of tJte State of South Carolina for its Capital^ in Account ivith 
 
 tJie State. 
 
 1813. 
 
 Sept, 
 
 1814. 
 Jan. 7. 
 April, 
 June, 
 July, 
 Octoberj 
 
 1815. 
 January/ 
 April 19 
 August, 
 
 1816. 
 Nov. 1, 
 
 1816. 
 January, 
 April, 
 July 39, 
 
 1817. 
 
 1816. 
 
 Nov. 14 
 1817. 
 
 January, 
 
 May 20, 
 
 July 2 
 
 Dec. 24. 
 1818. 
 
 Dec. 24, 
 
 May, 
 
 1819. 
 July 2, 
 
 1819. 
 August, 
 
 Nov 6, 
 1819. 
 Feb. 25, 
 April, 
 Aug. 6, 
 
 To above 
 
 To 800 shares in Pl'ntr's and Mechanic's Bank, sold at 19,341 77 
 
 498 do in State Bank, sold 53,004 99 
 
 Articles (used in transporting materials) sold, 200 00 
 
 Cash paid at Charleston Treasury to S. Elliott 
 
 873 shares in State Bank, sold for 90,556 58 
 
 Articles (used in transportation) sold 220 00 
 
 Cash from Charleston Treasury 35,512 35 
 
 Do. do. do 19,994 08 
 
 Do. do. do. forprint'gP. Medium Bl'ks.. 2,285 50 
 
 Do. do. do 4,784 87 
 
 Do. do. do 11,34126 
 
 Do. do. 
 
 Do. do. 
 
 Do. do. 
 
 Do. do. 
 
 Do. 
 Do. 
 Do, 
 
 do. 
 do. 
 do. 
 
 do. 
 do. 
 do. 
 
 do. 
 
 do. 
 do. 
 do. 
 
 .38,091 15 
 ,17,597 72 
 . 15,876 30 
 
 . 13,030 65 
 
 .38,188 82 
 .31,651 12 
 . 17,375 66 
 
 417 shares in State Bank sold 45,815 00 
 
 1,166 do. transferred to Cashier 116,600 CO 
 
 Profits on 156 shares since sold 3,076 80 
 
 46 shares in State Bank, sold 1816, , , 
 
 Cash from Charleston Treasury 15,71 1 22 
 
 Do. do. 
 
 Do. do. 
 
 Do. do. 
 
 Do. do. 
 
 do. 
 do. 
 do. 
 do. 
 
 .38.931 6' 
 .43,650 54 
 .14,120 23 
 .14,772 46 
 
 Do. do. do 39,304 97 
 
 Do. from balance in Treasuries, 1st April 258,385 30 
 
 Do. do. Interest received from United States 15,604 29 
 
 Profits on 93 shares in State Bank sold, 
 United States Stock sold 
 
 By Funded State Debt redeemed 
 
 Do. Old Six per Cent, do 3,281 15 
 
 Do. do. Three per Cent, do 36,621 02 
 
 Cash from Charleston Treasury 29,375 57 
 
 Do- do. do. for interest on U. S. Stock, . . 10,842 61 
 
 Do. do. do 127,196 28 
 
 Do. do. do 4,098 64 
 
 balance, being the Capital of the Bank brought down . 
 1828. April. 
 
 By amount brought forward 
 
 Balance, being the Capital of the Bank 
 
 S72,546 76 
 30,000 00 
 
 90,776 58 
 
 62,576 80 
 82,907 03 
 
 100,246 25 
 
 165,491 80 
 5,920 20 
 
 112,413 (i(j 
 
 328,067 02 
 
 1,920 00 
 147,871 40 
 
 1,200,737 50 
 
 176,029 95 
 
 39,902 17 
 
 215,932 17 
 
 171,513 10 
 
 SI, 372,250 60 
 1,156,318 48 
 
 215,932 12 
 
 1,156,318 48 
 
 I 
 
 #1,372,250 m 
 
206 REPORTS OF INVESTIGATING COMMITTEES. 
 
 The foregoing is taken from the books in the office of the Comptroller 
 General in Charleston. In the year 1828, I was clerk to the then Comp- 
 troller, A. Spears, and not approving of books kept in that office, I opened 
 a new set of books, which should embrace the transactions of both Treasu- 
 ries, and show more distinctly the fiscal concerns of the State. Upon re- 
 ferring to the books of the Lower Treasury, I found but one account raised 
 for " the Bank of the State of South Carolina]^ in which were intermingled 
 the sums paid from the Treasury on account of its capital, and on account 
 of loans made to the State for paying the direct tax during the last war ; 
 also crediting the Bank as well with the amount of State stock redeemed, 
 as with the profits of the Bank up to the 1st October, 1821, so that from 
 the books of the Treasury, the balance against the Bank of the State of 
 South Carolina, appeared in 1833, to be only $230,848 96. In the books 
 which I opened, I raised two accounts, viz : " The Bank of the State of 
 South Carolina for its Capital," and " The Bank of the State of South Caro- 
 lina for its Profits." In the former, I charged all the sums paid in for its 
 capital, and 800 shares in the Planters' and Mechanics' Bank, and 3,000 
 shares in the State Bank, which were sold by the Bank of the State of 
 South Carolina, and taken in part of capital, but which had been omitted 
 to be entered in the books of the Treasury. I also charged the United 
 States stock and interest, which also formed part of its capital. I credited 
 the Bank with State stock redeemed, which left the above balance of 
 $1,156,318 48 for the capital of the Bank, which corresponds with that re- 
 ported by the Bank. In 1833, when I became Treasurer of the Lower 
 Division, in order to make the books of the Treasury correspond with 
 those in the Comptroller's office, I closed the former account of the Bank 
 of the State of South Carolina, by charging the State with the erroneous 
 balance of $231,848 24 ; and 1 then made an entry, crediting " the State," 
 and charging " The Bank of the State of South Carolina" with $1,156,- 
 318 48, for the capital of the said Bank, according to the books of the 
 Comptroller's office. Act of incorporation, A. A. 1812, p. 47. 
 
 WM, ED. HAYNE, ComjA. Gen. 
 
 Charleston^ November 15th, 1839. 
 
 AccpifM of Bank Paper impressions 
 of South Carolina^ 
 
 of Bills^ ^c.^ofthe BankoftJie State 
 to \st October^ 1839. 
 
 4,002 
 
 Dr. Half Sheets. 
 
 To impressions from Draper, 
 Toppan, Longacre & Co., 
 July, 1838 2,000 
 
 To Bank paper from Bank of 
 S. C.,in 1837 and 1838._- 
 
 To Bank paper from Under- 
 wood, B. S. & Huffy, 
 March, 1838 10,000 
 
 16,002 
 
 Cr. Half Sheets. 
 
 By issued impressions from 
 
 Draper, Toppan, Longacre 
 
 & Co.,in 50-100 .-. 2,000 
 
 By issued in 50-100, printed 
 
 by Wm. Keenan 2,100 
 
 By issued in 25-100, printed 
 
 by Wm. Keenan 8,902 
 
 Loaned Charleston Insurance 
 
 and Trust Company 1,000 
 
 Balance on hand 2,000 
 
 16,002 
 
REPORTS OF INVESTIGATING COMMITTEES. 207 
 
 Impressions of Bills and Bank Paper on hand^ \st October^ 1839. 
 
 Half Sheets. 
 
 Plate second, One Hundred Dollar bills — 1,600 
 
 Plate third, Ten Dollar bills 700 
 
 Plate third. Five Dollar bills 6,005 
 
 Plate third, Two Dollar bills 4,011 
 
 Plate second. One Dollar bills — 4,816 
 
 Plate third. Fifty Cent bills _-_ 9 
 
 Plate third. Twenty-five Cent bills ^__ 6 
 
 Blank paper on hand 2,000 
 
 19,147 
 
 General mew of the balances of the different issues of Bills under One 
 Dollar^ of the Bank of the State of South Carolina^ 1st August, 1839. 
 
 First plate, Fifty Cent bills issued 
 
 do do cancelled 
 
 Second plate, Fifty Cent bills issued >__ 
 
 do do cancelled 
 
 Third plate, Fifty Cent bills issued 
 
 do do cancelled 
 
 First plate. Twenty five Cent bills issued 
 
 do do cancelled 
 
 Second plate. Twenty-five Cent bills issued 
 
 do do cancelled __ 
 
 Third plate, Twenty-five Cent bills issued 
 
 do do cancelled __ 
 
 First plate. Twelve and one-half Cent bills isued. 
 
 do do cancelled 
 
 Second plate. Twelve and a half Cent bills issued 
 
 do do cancelled' 
 
 First plate. Six and a Fourth Cent bills issued. . 
 
 do do cancelled 
 
 Second plate. Six and a Fourth Cent bills issued. 
 
 do do cancelled-., 
 
 $73,651 
 
 61,478 
 
 86,708 
 
 72,642 
 
 60,400 
 
 38,283 
 
 42,826 
 
 33,368 
 
 43,276 
 
 34,400 
 
 39,800 
 
 20,713 
 
 3,150 
 
 2,360 
 
 25,752 
 
 16,255 
 
 1,150 
 
 521 
 
 8,638 
 
 4,160 
 
 $12,173 00 
 
 14,066 
 
 22,117 
 
 9,457 75 
 8,875 50 
 19,087 
 790 
 
 9,496 63 
 
 628 50 
 4,478 24 
 
 Amount of issues under $1, on 1st August, 1839 $101,169 62 
 
 C. M. FURMAN, Cashier. 
 
 General view of tlie issues of tlie Bank of the State of Sointh Carolina^ of 
 One Dollar bills and upwards, on \st August, 1839. 
 Dr. 
 
 To balance in circulation on 1st October, 1838 $1,597,150 
 
 Issue of 1 12 sets $1 bills, first plate $44,800 
 
 Issue of 351 sets $1 bills, second plate 136,800 
 
 Issue of 20 sets $2 bills, second plate 1 6,000 
 
 Issue of 195 sets $2 bills, third plate 156,000 
 
 Issue of 4 sets $5 bills, second plate 8,000 
 
 Issue of 40 sets $10 bills, second plate 160,000 
 
208 REPORTS OF INVESTIGATING COMMITTEES, 
 
 To Issue of 15 sets $10 bills, third plate $60,000 
 
 Issue of 10 sets $20 bills, first plate 80,000 
 
 Issue of 1 set $100 bills, first plate 40,000 
 
 Issue of 4 sets $100, second plate 160,000 $861 600 
 
 $2,458,750 
 Cr. 
 
 By cancelled $1 bills of first plate, since 1st October, 1830 $76,880 
 
 do $1 bills of second plate do _._ 67,183 
 
 do $2 bills of first plate do 4,655 
 
 do $2 bills of second plate do 20^,139 
 
 do $2 bills of third plate do 28,450 
 
 do $5 bills of first plate do 160,065 
 
 do $5 bills of second plate do 216,190 
 
 do $10 bills of first plate do 98,500 
 
 do $ 1 bills of second plate do 1 35,290 
 
 do $10 bills of third plate do 35 
 
 do $20 bills of first plate do 207,670 
 
 do $ 1 00 bills of first plate do 1 ,600 
 
 do $100 bills of second plate do 2,200 
 
 Balance of issues, 1st August, 1839 1,400,263 
 
 $2,458,750 
 C. M. FURMAN, Cashier. 
 
 D. 
 
 State of South Carolina, for Loan under tJic Act for rc-building the city 
 
 of Clmrleston. 
 
 Dr. 
 
 To cash paid expenses of agents for negotiating loan in 
 
 London- ------ $4,888. 88 
 
 To ca"Sh paid for engraving, printing, and transmission of 
 bonds, expenses of negotiating in New York, and freight 
 and insurance of specie 2,422 42 
 
 To balance - 1,045,428 70 
 
 $1,052,750 00 
 
 Cr. 
 By cash received for £232,500 sterling, including premium 
 
 on exchange, aiid on drafts on New York $1,052,750 00 
 
 By balance , __ _ .-$1,045,438 70 
 
 Charleston, 1st. Oct. 1839. 
 
REPORTS OF INVESTiaATINa COMMITTEES. 209 
 
 E. 
 Cash in the hands of the Cashier of tJie Bank of the State of South Car- 
 olina^ on Wednesday ^the \^th day of July^ 1839, mz. 
 
 E. One hundred and three boxes of silver, ^1,000 each $103,000 
 
 E. Two bags of silver, $1,000 each __ 2,000 
 
 E. One box of silver E. Clmnge 900 
 
 E. One box of silver _ 500 
 
 E. One box of gold coin, (English) E 25,000 
 
 E. One box of gold coin do E 20,000 
 
 E. One box of gold coin do - 17,044 42 
 
 E. One box of gold coin do 10,198 06 
 
 E. One box of gold coin, (American) 15,000 
 
 E. One box of gold coin, (various) 8,290 
 
 E. One bag of gold coin, (English) 10,385 
 
 E. Twenty-one bags of gold coin, (Englis h). 105,000 
 
 E. Eleven bags of gold coin, (FrencJi^s!^S^^S!5^^-- 48,761 
 
 E. One box, (silver and gold)-. ^Z^_-S,J§.S.:^^SS^. 380 
 
 E. Kegs of copper coin -i^_>rl...^''__Cyi'I__.^is\ 1,500 
 
 BANK NOTES (Ji?3i^^Q0y3piSjCpWl\ y^Af 
 
 Seven packages, No. 1, 2,3,4, 5, 6, 8^=^tt =3^5tQ0fe jg8TOr $5 
 
 bills - $35,000 
 
 Seven packages, No. 9, 10, 11, 12, 13, 14, 15, of $5,000 each, 
 
 $5 bills ^-'_-- - 1 35,000 
 
 Seven packages. No. 16, 17, 19; 20, 21, 22, 24, of $5,000 each, 
 
 $5 bills.-- - - — - 35,000 
 
 Two packages, No 30, $5,500, and No. 32, $5,000, $5 10,500 
 
 Seven packages. No. 42, 43, 44, 46, 47, 48, 49, of $10,00a 
 
 each, $10 bills 70,000 
 
 Seven packages, No. 50, 52, 53, 54, 55, 56, 57, of $10,000 each, 
 
 $10 bills 70,000 
 
 One package, No. 58, $30,000, in $100 bills 30,000 
 
 Two packages, No. 59, $19,500, and No. 60, $15,000 34,500 
 
 Two packages. No. 61, $12,000, and No. 62,$11,000 23,000 
 
 Three packages, No. 67, $7,000, No. 64, $4,000, No. 65, 
 
 $3,900.._ -- 14,900 
 
 $725,959 61 
 
 UNSEALED PACILAGES. ^ 
 
 Six packages. No. 1, 2, 3, 4, 5,6, $5,000 each, $5 -. $30,000 
 
 Six packages, No. 7, 8, 9, 10, 11, 12, $5,000 each, $5 30,000 
 
 Six packages. No. 13, 14, 15, 16, 17, 18, $5,000 each, $5 bills, 30,000 
 
 Six packages. No. 19,20,21,22,23, 24, $10,000 each, $10 bills 60,000 
 
 One package. No. 25, $20, $10, $5 10,000 
 
 Three packages, No. 26, 27, 28, $20,000 each,$20 bills 60,000 
 
 Two packages. No. 29, $10,000, and No. 30, $7,000 17,000 
 
 Two packages. No. 31, $12,000, and No. 32, $23,050 35,050 
 
 Two packages, No. 33, $40,400, and No. 34, $24,500 64,900 
 
 Two packages. No. 35, $4,000, and No. 36, $73,600. _ ^ 77,600 
 
 Two packages. No. 37, $5,000, and No. 38, $3,771 82-100. . d,371 82 
 27 
 
210 REPORTS OF INVESTIGATING COMMITTEES. 
 
 Cut money 2,400 
 
 Sealed box of mutilated $1 and $2 bills 37,700 
 
 Sealed box of mutilated $1 and $2 bills.. 21,000 
 
 Package of mutilated, sealed by Commissioners 1 ,200 
 
 do do do do 600 
 
 do do do do 350 
 
 MUTILATED BILLS RECEIVED FROM THE BRANCHES. 
 
 Package No. 1 1,419 25 
 
 do No. 2 -- - _-- 1,273 68 
 
 do No. 3-__ 1,539 12 
 
 do No. 4._ _ 1,000 
 
 do No. 5 .-- -. 650 
 
 do No. 6 .„- 550 
 
 do No. 7. 807 54 
 
 do No. 8. ...- 393 12 
 
 Two packages, No. 10 _ , 1,100 
 
 $1,222,374 14 
 
 CASH, 9th JULY, 1839, AT TWO o'CLOCK. 
 
 Cashier -.$1,222,374 14 
 
 Mr. Cogdell.... 33,731 21 
 
 Mr. Lee -- 107,012 44 
 
 $1,363,117 79 
 
 CASH DIMINISHED TO THE DATE OF EXHIBIT A. 
 
 15tb July, 1839. 
 
 By the diminution of "Individual Deposit account," $1,363,117 79 
 
 1,337,371 54 
 
 $25,746 25 
 
 A statement of the bills of this Bank, of the other Banks of the city, 
 
 &c. and of specie, (as correct as I am enabled to make it,) in my hands, 
 
 as Teller of the Bank of the State of South Carolina, on the 9th of June, 
 
 1839. 
 
 W. LEE, Teller. 
 
 Bills of this Bank $69,343 00 
 
 Mutilated bills of this Bank _ 4,000 00 
 
 Bills of City Bank. A __. 16,660 00 
 
 Bills of Camden, and other Banks out of the 
 
 City 3,377 00 
 
 Checks on City Banks- 13,264 00 
 
 Specie 368 34 
 
 $107,012 44 
 
 Caeh in the hands of R. W. Cogdell, Teller of the Bank of the State 
 of South Carolina, 9th July, 1839, $33,731 21-100, viz : 
 
 Bills of this Bank $10,000 00 
 
 Bills mutUntca 13,460 87 
 
REPORTS OF INVESTIGATING COMMITTEES. 211 
 
 Bills of the Banks of Charleston 9,252 00 
 
 Specie 76 34 
 
 Bank of Camden, Com. Bank of Columbia, &c. 942 GO 
 
 $33,731 21 
 R. W. COGBELL, Teller. 
 
 I 
 
 F. 
 
 Statement of Stocks hddhy the Bankoftlie State of South Carolina^ \Otk 
 
 July ^\^^^^ viz : 
 
 SIX PER CENT/STATE STOCK. 
 
 One Certificate..- .-$140,000 
 
 One Certificate - 68,970 
 
 One Certificate 30,000 
 
 One Certificate _ _ - 30,000 
 
 One Certificate _. 5,000 
 
 One Certificate .__. 2,500 
 
 One Certificate 2,000 
 
 One Certificate 2,000 
 
 One Certificate 2,000 
 
 One Certificate ...1,000 
 
 One Certificate 10,150 
 
 One Certificate 7,036 84 
 
 One Certificate 5,120 
 
 One Certificate u 3,566 67 
 
 One Certificate. . . 2,350 
 
 One Certificate- _.-_ 2,125 
 
 One Certificate . _._- 1,966 60 
 
 One Certificate 1,107 
 
 One Certificate 799 37 
 
 One Certificate _«___- . 658 
 
 One Certificate 200 
 
 One Certificate-. _ 346 44 
 
 $318,895 98 
 
 Premium paid on > 1446 50 
 
 Bo. do. do- \ ' 
 
 $320,342 48 
 
 FIVE PER CENT. STOCK. 
 
 One Certificate 2 --$30,000 
 
 One Certificate 1 0,700 
 
 One Certificate 1 0,000 
 
 One Certificate 10,000 
 
 One Certificate 2,500 
 
 One Certificate _ _ 2,350 
 
212 REPORTS OF INVESTIGATING COMMITTEES. 
 
 One Certificate- .^ _ 2,300 
 
 One Certificate 2,000 
 
 One Certificate--- - - 1,500 
 
 One Certificate - . 1,150 
 
 One Certificate 1,000 
 
 One Certificate - 6,666 66 
 
 One Certificate - 2,552 
 
 One Certificate -._. 2,628 98 
 
 One Certificate.. _ __ 850 
 
 One Certificate : 497 65 
 
 One Certificate _ , 393 71 
 
 One Certificate 804 44 
 
 One Certificate __ -133 33 
 
 One Certificate 133 33 
 
 $88,160 10 
 
 STATE THREE PER CENT STOCKS. 
 
 One Certificate, for $38,385 67-100, cost $23,712 87 
 
 One Certificate, for $4,480 42-100, cost-- - 2,688 25 
 
 $26,401 12 
 
 Commercial Bank Stock, sixteen shares --$486 25 
 
 Bank of the United States stock, seventy-six shares 9,184 
 
 S. W. R. R. Bank stock, five hundred shares-.- .-12,500 
 
 L. C. & C. R. R. stock, five hundred shares 7,500 
 
 CHARLES M. FURMAN, Caskie?-. 
 10th July, 1839. 
 
 BANK OF CHARLESTON STOCK. 
 
 Old shares, nine hundred and eighty-six sharos..-. , $98,600 
 
 New shares, nine hundred and eighty-six shares 49,300 
 
 $147,900 
 
 C. M. FURMAN, Cashwr. 
 10th July, 1839. 
 
 G. 
 
 Statement of " The Bank Estate" held by tJie Bank of tJie State of South 
 
 Carolina. 
 
 The building hitherto used as a Banking House in the city of 
 Charleston, at the corner of Broad-street and Gadsden's-alley. ~ $25,000 
 
 The building lately purchased, and fitted up as a Banking 
 House, in the City of Charleston, at the corner of Broad anj 
 State-streets, . 60,000 
 
REPORTS OF INVESTIGATING COMMITTEES. 213 
 
 The building used as a Banking House in Columbia, situated 
 on Ricliardson-strcet, r — 12,000 
 
 The building used as a Banking House in Camden, situated 
 on the Main-street in the above place. 4,000 
 
 $101,000 
 
 H. 
 
 Statement of " Real Estate!'^ lidcl bij the Bank of tlic State of South -Car- 
 olina. 
 
 Twenty shares in the Augusta Fire Proof Warehouse $2,000 
 
 A lot of land in the town of Hamburg, the site of the Bank build- 
 ings which were burned 500 
 
 A tract of land purchased from Markley's estate, at Sheriflf's sale, 
 
 under an execution. Agreed to be sold for $600 to J. L. Ross GOO 
 A tract of land, purchased as above, said to contain acres 
 
 $3,100 
 
 Tbe Special Joint Committee upon the Bank of the State, to which was 
 recommitted the report of the same Committee, as to the condition and 
 management of the Bank of the State, at Charleston, have considered the 
 same, and respectfully recommend the following alterations and amend- 
 ments : 
 
 After the word " exhibit," at the top of the eleventh page, strike out tho 
 remainder of the paragraph, and insert : 
 
 " The Bank, under the circumstances of the times, incurred but little 
 hazard of loss from this transaction. But it is important to bear in mind, 
 that each subscriber would have been bound to make good his subscription, 
 in case of a revulsion ; the responsibility of the Bank involved an amount 
 equal to its capital and the sinking fund. In this view of the subject, it 
 becomes necessary to adopt proper precautions against this act being con- 
 strued into a precedent, which, upon some future occasion, might induce to 
 responsibilities less fortunate in their issues." 
 
 On the twelfth page, strike out the words, " but rather in its elevation 
 than the ground dimensions." 
 
 On the thirteenth page, strike out the words " may probably," and in 
 lieu thereof, insert " can conveniently." 
 
 On the same page, strike out the words " and whether an indirect method 
 of increasing salaries shall be allowed ;" and after the word " decide," in- 
 sert the following : " Should it be deemed expedient to use the building 
 as residences for the officers of the Bank, they should be charged with the 
 rent, until some distinct allowance thereof, either as an increase, of salary 
 or otherwise, shall have been definitely made by the Legislature or other 
 competent authority. 
 
 Strike out the ninth Resolution, and substitute the following : 
 " 9. Resolved., That without the previous sanction of the Legislature, the 
 Bank shall not subscribe to the stock of any banking or other company : 
 nor shall it deal, or trade, in any stock, otherwise than in the mere purchase 
 
214 REPORTS OF INVESTiaATING COMMITTEES. 
 
 of Btoek of this State, for the purpose of redemption or investment ; or 
 where stock may be received in composition of debts theretofore incurred." 
 All of which is respectfully submitted. 
 
 C. G. MEMMINGER, Chairman. 
 
 1839. 
 BRANCH AT COLUMBIA. 
 
 The Special Joint Committee of the two Houses of the Legislature? 
 nominated at the last session, to examine into the condition of the Branch 
 of the Bank of the State of South Carolina, located in Columbia, beg leave 
 to submit the following as the result of their examination : 
 
 The Committee suppose it is well known that the Branch at Columbia 
 has.no paramount capital, and that all of its banking operations are based 
 upon the amount of its indebtedness to the parent Bank, (and this amount 
 is subject to daily fluctuations,) with such amount of the Treasury deposits, 
 as may be casually in its custody. For the purpose of ascertaining, there- 
 fore, the condition of the Bank at a given period, it became necessary that 
 the Committee should select some particular day, on which to compare the 
 assets of the Branch, with its liabilities. As the fiscal year closes on the 
 30th of September, they selected the following day, (1st of October,) as 
 the most appropriate on which to make the comparison ; on that day it ap- 
 peared that the Branch had, in bonds, bills, and notes discounted to the 
 
 amount of_ $668,699 73 
 
 Notes under protest. _ 90,348 00 
 
 Notes in suit -. 65,744 00 
 
 Judgment on bond. , 12,000 00 
 
 $836,791 73 
 
 In Bank bills .$57,005 79) 
 
 Specie 10,770 00 S 67,980 79 
 
 Cents 205 00) 
 
 Suspense account, as charged in books of Bank 1 3,660 67 
 
 Profits of the preceding year 37,181 20 
 
 $955,614 39 
 On the same day, the liabilities of the Branch were, to the parent 
 
 Bank, -..-- $824,519 43-] 
 
 Profits on discount, exclusive of all expenses 37,181 20 ! g>QKKftt4 on 
 
 Individual deposits 72,186 30 f ^^^^P^"^ ^^ 
 
 Treasury deposits 21,727 46j 
 
 Regarding the debt due by the Branch to the parent Bank, as above set 
 forth, as an average of its indebtedness throughout the year, (and it will 
 not greatly vary from that amount,) and assuming that debt as the capital 
 on which all the operations of the Branch are conducted, the Branch has, 
 for the twelve months preceding the 1 st of October last, made a profit of 
 about four and one-half per cent. On recurring to the books of the Branch, 
 for the several preceding years, and taking the capital of the Branch, (its 
 indebtedness to the parent Bank.) at the nearest day convenient to the 
 close of the fiscal year, it appeared, that in 1834, the profits of the Branch 
 were, exclusive of all expenses of its administration, about 6 7-10 per cent. 
 In 1835, the profits were about 6 per cent. 
 
REPORTS OF INVESTIGATING COMMITTEES. 215 
 
 In 1830, the profits were about 5 0--10 per cent. 
 
 In 1837, the profits were a fraction over 5 per cent. 
 
 In 1838, the profits were about 5 6--10 per cent. 
 
 Making an annual average profit for the five years beginning with the 
 year 1835, and ending with the year 1838, of 5 8--10 per cent. 
 
 It will be observed by the above statement, that a larger per cent, was 
 made by the Branch in the years 1834 and 1835, than in any other year 
 embraced in the series above enumerated, amounting in the two years to 
 $82,120 05. But the losses sustained by the Branch in 1835, came near 
 absorbing the whole of the profit of those two years. Of the amount above 
 exhibited as profits, only $6,052 08 were carried to the credit of the parent 
 Bank; the residue ($77,067 97,) was applied to cover the losses of the 
 Branch during that year. 
 
 It may be proper to explain more fully, some of the circumstances con- 
 nected with the losses of 1835, otherwise an obvious discrepancy would ap- 
 pear between the report of this Committee, and that which reported on the 
 condition of the parent Bank in 1837. In that report, the losses incurred 
 in Columbia, are put down at $45,488 62. This latter amount is probably 
 the eventual and true amount of the losses there sustained, as the Commit- 
 tee were informed that many of the debtors of the Branch, at or after 
 the time of their failure, made assignments of their efiects to the parent 
 Bank, under which assignments, it is supposed that the difference between 
 the amounts above set forth, was realized by the parent Bank. No evidence, 
 however, to that offect, is contained in the books of the Branch. The Com- 
 mittee have not exhibited the foregoing scale of annual profits made by the 
 Branch, with a view of disparaging its administration during the last year. 
 The present condition of every Bank in the State, will furnish a sufficient 
 explanation and reason for the reduction of its profits ; added to which, it is 
 reasonable to suppose that the public debt of the State, to be redeemed by 
 the Bank of the State in the first of next year, may have induced a consid- 
 erable reduction in the discounts of the Bank, as well as its Branches. 
 
 EXPENSE ACCOUNT. 
 
 In debiting the Branch with the amount of profits for the last year, all 
 expenses incurred in its administration, were first deducted. These ex- 
 penses for the last year amounted to $10,277 56, distributed in items, as 
 follows : 
 
 Salary of President- ._ .__ $2,000 
 
 Salary of the Cashier _ 2,000 
 
 Salary of the Teller.-- 1,500 
 
 Salary of the Discount Clerk and Notary. _ 1,300 
 Salary of Assistant and Collection Clerk.. 1,300 
 
 Salary of four Solicitors- -__ - 1,200 
 
 Incidental and Contingent Expenses, 277 56 
 
 $10,277 56 
 
 The Committee examined particularly into the names of the drawers and 
 endorsers of the bills and notes due to the branch, and so far as they were 
 capable of judging, either from their personal knowledge, from reputation, 
 or from information acquired from others, they arc of opinion that the debts 
 owing to the branch are well secured. 
 
216 llEPORTS OF INVESTIGATING COMMITTEES. 
 
 In the statement of the assets and liabilities, there is put down to the 
 credit of the Branch, a suspense account of $13,660 67. This amount ap- 
 pears to be composed of debts of long standing, and although the debtors 
 together with their endorsers, are, and have been for many years, notorious- 
 ly insolvent, yet it appears the branch has no authority to strike them off 
 as bad debts, ointil directed to do so by the parent Bank. The most recent 
 account on the list forming what is called the suspense account, was taken 
 up by the Committee and its existence traced back over ten years ; how 
 much longer it may have existed was not ascertained. 
 
 Another amount with which the Branch stands charged, although it 
 forms no part of the suspense account, is a debt apparently due to the 
 Treasury of the Upper Division, but one in fact for which credit should 
 have long since been given. The facts in relation to this debt, so far as 
 they could be ascertained, are as follow : In 1833 the Trustees of the Co- 
 lumbia Academy were indebted to thq Branch by a note discounted, in the 
 sum of $2,100, exclusive of interest. The note was put under protest on 
 the 10th of October, 1833, and shortly after, the Trustees, petitioned the 
 Legislature to release them from the debt and interest. The Legislature 
 granted the prayer of the petitioners, but did not require the Treasurer to 
 credit the Branch with the amount ; the consequence was, that though the 
 Bank was restrained from the collection of the debt, yet the amount of that 
 debt still stands charged against it, until it be released by passing the 
 amount to the credit of the Treasury. 
 
 Every facility was afforded by the officers of the branch to the committee 
 during the progress of their examination ; nevertheless, it was found dif- 
 ficult in some instances, to prosecute an enquiry to a satisfactory conclusion, 
 on account of the occasional exercise of powers by the parent Bank, over 
 the transactions of the branch. An instance will be given: In 1833, a 
 note of $6,000 was discounted in the branch Bank ; the note was protest- 
 ed for non-payment on the 17th January, 1834, and was still unpaid at 
 the time the branch sustained the losses of 1834 and 1835, before alluded 
 to. (These losses, it should have been stated in the proper place, were 
 principally sustained on drafts.) The drawer of this note subsequently 
 became further indebted to the Bank, on account of drafts drawn by him 
 to an additional amount, and being unable to make payment, made an as- 
 signment for. the benefit of his creditors, the Bank amongst others. The 
 arrangement made to settle and secure as far as possible, the debt of this 
 individual on his drafts, was made by the parent Bank, and in doing so, 
 it would seem that the amount due on his note was not taken into consid- 
 eration, nor was any dividend received on it, yet he received, it is said, a 
 release or receipt in full of all demands against him. It is also repre- 
 sented, that application has been since made to him for payment on the 
 note, but he refuses payment, alleging the sufficiency of the release or re- 
 ceipt, and also, that the demand is barred by the Statute of Limitations. 
 Such would seem to be the state of facts, from the books of the branch ; 
 but the accounts of the parent Bank would probably show that the whole 
 transaction has been correctly adjusted, and that the amount due on this 
 note has been settled, although orders to credit the drawer have not been 
 given to the branch. 
 
 All of which is respectfully submitted. 
 
 L. BOOZER, Chairman 
 Committee of House of Uejjrcscntativcii. 
 
REPORTS OF INVESTIGATINa COMMITTEES 217 
 
 (1839.) 
 BRANCH AT CAMDEN. 
 
 The Joint Committee appointed at the last session of the Legislature, 
 «,nd charged with the duty of examining into the affairs and -condition of 
 the branch of the Bank of the State of South Carolina, at Camden, beg 
 leave to report, 
 
 That they have performed that duty according to their best means and 
 ability. The committee, upon visiting the Bank, found the officers prompt 
 in exposing their books for examination, and ready in communicating any 
 information desired. 
 
 The committee looked to the line of discounts with two views : First, 
 to ascertain whether there was satisfactory security for debts ; and second- 
 ly, whether a distribution of the accommodations of the branch Bank had 
 been made with a proper view to the interest of the community, and not 
 too much absorbed by the directors or favorites. In neither of these par- 
 ticulars, were the committee able to discover any ground of suspicion or 
 complaint. 
 
 The document herewith submitted and marked A, wil exhibit Bmh m- 
 formation in detail, as the committee obtained. It is a correct transcript 
 from the books of the Bank, 
 
 From this it will be seen that the nett profits of this branch, its trans- 
 actions for the fiscal year, ending on the SOth September, 1839, amount to 
 the sum $24,107 33 cents, which is somewhat less than 7 percent. 'On the 
 capital of the Bank ; that the suspended debt account is about $8/M>0, and 
 demands in suit less than one thousand dollars. 
 
 If the profits of this branch have been less than are s»m€4,iii»es made by 
 other institutions, the committee hope and believe that the fact may be an 
 indication of that cautious prudence which is always commendable, and 
 never more necessary than now and recently. 
 
 All of which is respectfully submitted. 
 
 h. J. PATTERSON. 
 
 A- 
 
 STATEMENT 
 
 
 Sliewing the nett profits of the branch of the Bank of the State of South. 
 Carolina^ aZ Camden^ for the year ending the ZOth September ^ 1839. 
 
 By discount account $2G,413 <0G 
 
 By drafts and exchange account 2,142 20 
 
 By interest account 1,523 14 
 
 To officers' salaries... _ __$5,599 92 
 
 To incidental expenses ^371 15 
 
 To the Bank of the State of South Carolina, for nett 
 
 profits this year 24,107 33 
 
 28 
 
 $30,078 40 $30,078 40 
 
 [Signed] THO. SALMOND, President, 
 D. L. DeSAUSSURE, Cashier. 
 
218 REPORTS OF INVESTIGATING COMMITTEES. 
 
 STATEMENT, 
 
 Of the branch of tJic Bank of tJie State of South Carolina^ at Camden, on 
 tlw. '^Oth of September, 1839. 
 
 Dr. 
 
 To Capital - _ $480,000 00 
 
 Discount account _ 26,413 06 
 
 Interest do 2,142 20 
 
 Exchange do 1,523 14 
 
 Individual depositors 21,197 19 
 
 Amount due mother Bank 1 8,526 72 
 
 $549,802 31 
 
 By notes discounted $443,030 00 
 
 Notes protested __. 8,015 00 
 
 Notes in suit 930 00 
 
 Bonds 24,542 44 
 
 Drafts payable in Charleston 1 2,050 00 
 
 Judgments--- _ 32,307 00 
 
 Salaries paid 5,599 92 
 
 Incidental expenses 371 15 
 
 Cash on hand 22,956 86 
 
 Cr. 
 
 $549,802 31 
 
 [Signed] THO. SALMOND, President, 
 D. L. DeSAUSSURE, Cashier 
 
 (1841.) 
 
 FROM THE COMMITTEE APPOINTED IN 1840. 
 
 To tJie Honorable the Senate and House of Rep?esentatwes, 
 
 cf the State of South Carolina : 
 
 The Joint Committee of the two Houses, appointed at the last session 
 to inspect and report upon the affairs of the Bank of the State of South 
 Carolina, beg leave to report. 
 
 The Act of the Legislature of 1824, under which your committee was 
 appointed, is as follows : 
 
 " There shall be appointed, at the first session of every Legislature, by 
 a joint resolution of both branches of the Legislature, a committee of In- 
 spection for the principal Bank of the State of South Carolina, in Charles- 
 ton, and a committee for each of the branches of the said Bank, &c. 
 
 " That it shall be the duty of the several committees, with the Comptrol- 
 ler General, to examine minutely into the affairs and situation of the prin- 
 cipal Bank and its branches, for which they are respectively appointed, and 
 to report to the Legislature at their next session, the result thereof, and 
 particularly all mismanagement in the affairs of the said Bank or its 
 branches, if any such have occurred. 
 
REPORTS OF INVESTIGATING COMMITTEES. 219 
 
 " That all clauses and parts of clauses of any Act of the General As- 
 sembly of this State, which may prohibit the said committee and the 
 Comptroller General from investigating fully the books^ accounts and 
 other documents of the said Bank and its branches, be, and the same are 
 hereby, repealed." 
 
 To facilitate the investigation, under these imperative and comprehen- 
 sive instructions, the committee addressed the following letter to the Pres- 
 ident and Directors. 
 
 To t)ie President and Directors of tJie 
 
 Bank of the State of Sotcth Carolina, Charleston : 
 
 The committee appointed by the House of Representatives at its last 
 session, to investigate the condition of the parent Bank of the State of 
 South Carolina, herewith transmit to the President and Directors of the 
 same, an outline of the objects to which they will direct their enquiries, in 
 making the investigation required by their appointment. They beg leave 
 to state to the Board, that they have fixed upon the early part of the 
 month of June, as the period at which they shall engage in the duty de- 
 volved upon them by their constituents. 
 
 Charleston, 20th April, 1841. 
 
 (1) 
 
 1st. What is the capital, whence derived, and at what dates ? 
 
 2d. What other funds are used by the Bank as capital, although not 
 called capital in the Acts relative thereto ? 
 
 3d. What have been the issues of the Bank since its first establishment, 
 year by year. What amount of those issues has been called in, and what 
 is the present circulation ^ 
 
 4th. What are the other debts of the corporation, and how have they 
 accrued? 
 
 5th. What is the monthly amount of deposits of public money, or mo- 
 ney on deposit from State officers ? 
 
 What is the monthly amount of individual deposits ? 
 
 (2) 
 
 Assets. 
 
 1st. What amount of Specie, what Bonds, Notes, Exchange, Stocks, or 
 Bills of other Banks? 
 
 2nd. As to Bonds, wanted, a list of Bonds originally given for money 
 lent by the Bank, with a statement of the original and present amounts, 
 the nature of the security, its sufficiency, and the supposed solvency of the 
 parties. 
 
 3rd. A list of assigned Bonds, with a like statement of particulars. 
 
 4th. As to notes discounted, wanted, a schedule specifying what Notes 
 now existing are renewals on notes of five years standing and upwards, the 
 names on each note, and supposed solvency of the parties ; also, those 
 notes which are of more than three years standing, and less than five, 
 with like particulars. 
 
220 EEPOBTS OF INVESTIGATING COMMITTEES 
 
 Matters in which the Bank acts as agent for the State. 
 
 1st. As t<!> tlie Fire Loan, what amount of stock has been sold on this 
 account ? At what dates ? AVhat were the nctt proceeds ? And in what 
 medium were they paid in Charleston? 
 
 2nd. Has any of the stock issued for this loan been hypothecated? 
 And, if so, at what rate has it been redeemed? That is, what amount in 
 Charleston was necessary to redeem the said stock? What expenses at- 
 tended the negotiation, including commissions and compensation to agents ? 
 Who received said compensation ? 
 
 3rd. A general Balance to shew the amount due by the State for this 
 stock, and the ways and means, including bonds and all other availables to 
 meet the debt, with their actual value. 
 
 4th. What amounts have been actually loaned to land owners ? Carry 
 out the statement to 1st July, with a supplement to 1st October, 
 1841. 
 
 II. 
 
 As to the income of the State and expenditures through the Bank. 
 
 1st. A statement of the amounts realized for taxes, for the last five 
 years ; and the corresponding drafts on the Bank for payment of monies 
 appropriated, and amount of undrawn appropriations. 
 
 2nd. An interest account between the State and the Bank, shewing the 
 sums paid by the Bank for the State, and interest to the 1st October, 1841, 
 as well as amounts received to that date, so as to exhibit the interest 
 account. 
 
 3rd. A statement of the Sinking Fund, and the outstanding amounts 
 for which it is pledged. 
 
 4th. Funds of the State of every kind; the annual interest in one 
 • column. 
 
 5th. Debts due by the State, and annual interest thereon included, so as 
 to exhibit the point directly, whether the Sinking Fund can ever, and at 
 what period it may, extinguish the debt, 
 
 Miscellarumts Enquiries. 
 
 1st. What amounts is the State liable for, as security for loans, «&c. 
 
 2nd. What bad debts has the Bank made, since its first establishment, 
 year by year? Who were principals, who were sureties? 
 
 3rd. What are the officers of the Bank, and what is the compensation of 
 each ? 
 
 The enquiries here made, were, on the investigation, subdivided into 
 their elements, as will be seen in the subsequent statement. 
 
 The solvency of the Bank, and observance of the law of its charter, will 
 be considered after a statement of its organization and capital. 
 
 The State subscribed all the capital, consisting of various stocks and 
 debts due the State, all of which were, of course, to be reduced to money — 
 as a Bank lends money, and thus converts its capital into the obligations 
 of its customers. 
 
REPOKTS OF INVESTIGATING COMMITTEES. 221 
 
 These funds are, by law, " vested in the President and Directors." And 
 the extraordinary security for the management of the Bank, is contained 
 in these words: " The faith of the State is hereby pledged, for the support 
 of the said Bank, and to supply any deficiency in the funds specially 
 pledged, and to make good all losses arising from such deficiency." Thus, 
 this institution has, in reality, the whole resources of the State, as its stay 
 and support. It cannot fail, in any event, although the State may sufibr. 
 The 10th clause of the first section creates the carporaiion^ so that all the 
 capital is vested in a person known to the law, capable of suing and being 
 sued, and the capital is thus put beyond the control of the State, as far as 
 creditors are concerned; a fact worthy of being noted. The Act of 1813 
 directed all the monies to be received from the United States to be trans- 
 ferred on account of capital; and also, the balances in the Treasury. 
 
 In the course of the investigation, facts were brought to the view of the 
 committee, which render it proper to bring directly before the Legislature 
 gome of those fundamental rules, the violation of which it becomes the 
 especial duty of your committee to ascertain and report. 
 
 The authority of the President and Directors over the funds of the Bank, 
 is thus expressed : — " They shall receive money on deposit, and pay away 
 the same to order, free of expense ; discount bills of exchange, accepted 
 and payohh in the State of South Carolina ; and notes, with two or more 
 good names thereon, or secured by a deposit of Bank or other public stock, 
 at a rate of interest not exceeding one per cent, discount for sixty days." 
 This relates to the ordinary business of a Bank, as an institution calcula- 
 ted to meet the wants of current mercantile business. But an authority 
 is then conferred in these words — "and also, shall have power to make 
 loans to citizens of this State^ in the nature of discount^ on real or personal 
 property, secured by mortgage, and power of attorney to confess judg- 
 ment on default of payment. Provided^ that the sum so loaned shall never 
 exceed the one-third part of the real unincumbered value of the property 
 so mortgaged. And p>ravided further^ that the loan shall never be for a 
 longer term than one year, nor draw a greater interest than at the rate of 
 seven per cent, which shall always be paid in advance, and shall always be 
 payable in the months of February and March, next succeeding such loan, 
 unless an earlier day be fixed by the borrower. And provided further^ 
 that no individual be permitted to borrow, on his own account, on the se- 
 curity of real property, a greater sum than two thousand dollars.''^ 
 
 5th Sec. " The directors for the time being sliaU call in one-tenth of 
 each loan, in each year, and shall have it in their power to call in, in each 
 year, one-fourth part of the loans made on real and personal security, giving 
 a notice of not less than sixty days, in some of the gazettes of the State; 
 and all persons who shall fail to make such payment, shall be deprived in 
 future, of credit in said Bank, and judgment shall be immediately entered 
 up, on the power of attorney, given as above required, and execution shall 
 immediately be issued, in the name and on behalf of the Bank, against 
 such person or persons, for the whole amount of the debt which may be 
 due to the Bank." 
 
 It is also proper to bring to your view the following very general power : 
 " They (the board) shall also be capable of exercising such other powers 
 and authorities as may be necessary for the well-governing and ordering 
 the affairs of the said corporation, and of promoting its interest and its 
 credit ; any law, usage, or custom to the contrary notwithstanding." Like all 
 such general powers in similar instruments; however scemingl^ unlimited 
 
222 REPORTS OF INVESTIGATING COMMITTEES. 
 
 the powers conferred, they are usually construed, rather to refer to inci- 
 dental, than substantive authority, otherwise they supercede and render 
 unnecessary, all the enumerated limitations and restrictions of the charter. 
 An unlimited authority to do any thing, which the President and Directors 
 may decide will promote "its interest and its credit," surrenders the Bank 
 to their discretion, to do as they please, "any law, usage, or custom to the 
 contrary notwithstanding." And all attempt at regulation is nugatory 
 and the only truly fundamental rule of action, is the unrestricted discre- 
 tion of the Board of Directors. As such a construction would be altogeth- 
 er licentious, the committee presumed that that clause must be construed 
 as subservient to the positive regulations of the charter, although it cer- 
 tainly is broad enough to cover or excuse any exercise of discretion. 
 
 The second article, or fundamental rule, in relation to loans on mort- 
 gage, repires that the "value of the property mortgaged under this Act, 
 shall be ascertained to the satisfaction of the President and Directors, who 
 shall be answerable to the State, in an action at law or a suit in equity, 
 wherein the damages incurred by taking insufficient security shall be 
 assessed by the jury, or by the decree of the court, unless the Judges of 
 law or equity, as the case may be, shall be of opinion, and certify, that 
 every necessary precaution was used and no manner of neglect on the part 
 of the President and Directors : Provided Tievertheless^ That in order to 
 secure the President and Directors more effectually from imposition, any^ 
 person or persons who shall apply to them for monies on loan, shall pro- 
 duce a just and true account of the property proposed to be mortgaged, 
 which said property shall be valued on oath, by commissioTiei's Jieremafter 
 to be appointed?'' 
 
 Borrowers are required to submit their titles to inspection, before obtain- 
 ing a loan. The mortgage contained a clause by which the borrower 
 stipulated to this effect : " I do agree that the same (the property mort- 
 gaged) may be exposed for sale, according to an Act, &c. if I do not repay 
 the principal and interest at the several and respective times on which they 
 shall be lawfully due and payable." 
 
 These mortgages were considered of record from their date, and took 
 priority of mortgages not previously recorded in the proper offices. 
 
 The Act required that loans on mortgage should be apportioned among 
 the several districts. 
 
 By the 1 th Article, it is made, among other things, the duty of the 
 Comptroller General, " faithfully to report all and every violation of the 
 fundamental rules of this Corporation, to the Legislature." Five commis- 
 sioners were to be appointed in each district, to value lands offered for 
 mortgage, and the certij&catc of at least three was required. 
 
 Mortgaged property was authorized to be sold on the first Monday of 
 March in every year, and the Board authorized to give titles. 
 
 Such were the fundamental rules, as prescribed by the Act of Incorpo- 
 ration. 8 vol. Stat, at Large, pp. 24 to 31. 
 
 The Act of 1813 provided for a committee of three members, under an 
 injunction of secrecy, to aid the Comptroller in inspecting the accounts of 
 the Bank, and also, directed loans on mortgage at Columbia, "under the 
 same rules and restrictions" as in Charleston. 
 
 In 1831, the Bank was permitted to place a fund in New York, to 
 "furnish merchants who deal with the Bank, drafts on that place ;" or "if 
 it should be thought more advisable or more safe, to open an account for 
 that purpose, with any Bank or safe agent." This seems a curious way of 
 
I 
 
 REPORTS OF INVESTIGATING COMMITTEES. 223 
 
 authorizing the Bank to deal in Exchanges on New York alone. If the 
 Bank sell Exchange or Drafts, they must buy to place their funds there, 
 unless they exported their specie, and yet the authority to deal in foreign 
 Exchanges, is not in terms given. 
 
 In the charter, section 13, coupled with a power to sell their Bank 
 shares, is one " to negotiate Foreign Bills of Exchange." This, taken in 
 connection with a power to discount Bills of Exchange, accepted and paya- 
 ble in the State of South Carolina, is equivocal, as to its power to discount 
 foreign Bills drawn here, and to be sent abroad, as a regular part of its 
 business. A business which is of very questionable propriety in any Bank, 
 as it, in effect, supplies the capital to buy our own produce, and subjects 
 our Banking capital to the hazard of foreign acceptors, who, if the specu- 
 lation is successful, will pay ; if not, they will contrive to secure their home 
 friends first. It interposes the speculator between the producer and con- 
 sumer, and is the true source of that indirect trade which makes our State 
 pay a heavy tribute to New York. If drafts against imports were sent 
 forward to buy cotton, and accepted here, they could be discounted by our 
 Banks, and come to maturity here, and we should have a direct trade. 
 The desolating effects of the effort of the South and West to furnish 
 foreign speculators funds to buy our produce, are witnessed in the broken 
 Banks and deranged currency of a country to which no such evils are 
 naturally incident. What would the Bank of England say to a Charles- 
 ton merchant who should offer his draft on Charleston, to get discounted, 
 to enable him to lay in a stock of British goods % He would be told, it is 
 no part of a Bank to discount or purchase paper not running to maturity 
 at honie. It is the business of the merchant to buy and sell foreign 
 exchange. Our staples are always worth here, to the foreign consumer, 
 their value in the European market in specie, less the charges of transpor- 
 tation ; and let our local currency be what it may, that price they will 
 command. It is, besides, the natural course of trade. The foreign 
 manufacturer sells on a credit, and his drafts, being accepted here and dis- 
 counted by our local Banks, would furnish the legitimate fund for purcha- 
 sing our staples, which are sold for cash. The utter ruin which has already 
 followed the unnatural system of a staple country supplying bank capital 
 to buy its own products, will lead to its abandonment, and the result 
 must be, that some, if not all, our local Banks, must reduce their capital 
 for want of safe employment. To permit their capitals to accumulate in 
 England from Bills there matured, is to hazard the means of our stock- 
 holders, by exposing them to all the casualties of transatlantic revulsions. 
 As things now stand, this dealing in foreign exchange is so much more 
 lucrative than local discounts, that practically, all the advantages of our 
 incorporated Banks are enjoyed by foreign speculators, who destroy our 
 direct trade, and make a profit, which ultimately falls on the consumers of 
 foreign imports, while every stranger, with a letter of credit from houses 
 which prove their bottom by occasionally sinking into the quick-sands of 
 speculation, can obtain money on his drafts, to an almost unlimited extent. 
 Our whole community is loud in complaints that the Banks are of no use 
 to them. The truth is, as long as the bubble lasts, the Banks make more 
 by exchange than by discount, but when one or other o^ them receives 
 the news that its funds in England, on which they calculated to value and 
 reap all the profits of Sterling Exchange, have been swallowed up in some 
 commercial convulsion, then the holders of their stock will join company 
 with those of the United States Bank Stockholders, to look aTtcr their 
 
224 REPORTS OF INVESTIGATING COMMITTEES. 
 
 means of daily bread ; then the advantage of dealing at home will bo 
 appreciated. With staples which are equal to gold in foreign markets, we 
 need never fear that customers ready to pay, will not come for them. 
 
 Except so far as is necessary to enable the Bank of the State to supply 
 Exchange in place of Specie, and meet the interest on State stocks, dealing 
 in foreign Exchange is not advisable, as it diverts the uses of the Bank 
 from the planters, mechanics and merchants of our own State, and hazards 
 it in the hands of foreigners, who are arrogant and bold to-day, and the 
 next packet shows them in the Gazette with all their backers. 
 
 There is no plausible excuse for associations who deal in buying and 
 selling foreign Exchange, to ask for a charter with banking privileges. 
 They deal in merchandize — they encounter the hazards of trade, and reap 
 an unlimited profit, and ought, like other mercantile copartnerships, to in- 
 cur unlimited responsibility ; and such institutions have no more right to 
 the peculiar and somewhat sovereign right of issuing its bills as a circula- 
 ting medium, than any other mercantile concern. Your Committee are 
 aware that those who have profited by the speculations which have kept the 
 prices of our staples in a state of feverish excitement, for the last ten 
 years, will turn a deaf ear to these considerations. But the continued and 
 reiterated fjiilurc of those who have speculated in cotton, and been enabled 
 to do so by tho faciliiies afforded by the American Banks ; the operations 
 directly of the United States Bank, bringing its enormous capital to inter- 
 fere with and supercede the business of regular merchants, its cotton cir- 
 culars, ending in disaster and ruin, afford fit examples of the unnatural 
 effort to interfere with the regular operations of trade, and the application 
 of mercantile capital and enterprise, in the ordinary way. 
 
 Your Committee have grouped together, in order to present at one view, 
 the fundamental rules prescribed by the Legislature, for the government of 
 the Bank, which may be summed up thus : 
 
 The Bank may discount notes with not less than two good names there- 
 on. It may discount Bills of Exchange, accepted and coming to maturity 
 in this State, and negotiate foreign Bills of Exchange. It may place a 
 fund, or open an account, in New York, to afford drafts to its customers — 
 seeming to imply, that this account may be kept up by buying Exchange 
 payable in New York, to furnish a fund to draw on. 
 
 It may lend, to a limited extent, on bond and mortgage of real or per- 
 sonal estate ; Provided^ the property be first valued by Commissioners, on 
 oath. The loan not to exceed the one-third part the clear value. 
 
 The title deeds to be delivered for inspection. 
 
 The mortgages to be accompanied by a Power of Attorney to confess 
 judgment, which is to be forthwith used, in case of default. 
 
 These mortgages to be foreclosed, and the property sold by the Bank, 
 who are authorized to give titles. 
 
 The mortgages to be as of record. 
 
 If the President and Directors have any further or other power to lend 
 the capital stock, it has not been exhibited, nor is it to be found in any Act 
 of the Legislature yet published, unless it is to be found in the general 
 authority to do anything " necessary for the well-governing and ordering 
 the affairs of the said Corporation, and of promoting its interest and its 
 credit ; any laiv^usage^ or custom to the contrary notwithstanding." Which, 
 under a free interpretation, is itself an unlimited license to use the funds 
 of the Bank at discretion. 
 
REPORTS OF INVESTIGATINa COMMITTEES. 225 
 
 We then examine the solvency of the Bank, and the conformity of its 
 proceedings to the directions of the charter. 
 
 THE SOLVENCY OF T^HE BANK. 
 
 This depends upon the relation of its means to its liabilities. The latter 
 are unquestionable, and must be discharged in the legal currency of the 
 country. The former, with the exception of the coin in Bank, consists of 
 debts due the Bank, secured by every variety of names, good and bad, and 
 of its real estate and stocks. Some of the debts have the additional secu- 
 rity of mortgages of real and personal estate. So that the Bank depends 
 upon the solvency of its debtors, its specie and stocks, and the value of its 
 mortgaged property, to pay its debts. If, after all losses are deducted, 
 enough remains to pay its debts, it is solvent, as to creditors ; and if, be- 
 side paying its debts, it has assets remaining, they are applicable to re- 
 imburse the capital advanced by the State, with interest. Anything beyond 
 this, constitutes the clear profits of its operations. 
 
 The general statement of the Bank, exhibits on its debtor side, all its 
 liabilities ; on its credit side, all its assets. The statement, when verified, 
 exhibits at a single view, the actual state of the institution. And to avoid 
 multiplied publication : Exhibit A, in the Report of the President of the 
 Bank, to 1st October, 1841, is referred to. 
 
 The Bank is debtor, for its capital, for its notes in circulation, and depo- 
 sits ; under one of which general heads, all its liabilities are, or may be, 
 included. It is creditor : by its bills and notes discounted ; its suspended 
 debt ; the bonds and other evidences of debt it holds ; its specie ; its cir- 
 culation or notes on hand ; real estate, and balances due from customers. 
 The G-eneral Statement, Document A, printed in the President's Report, 
 will present the state of the Bank on 1st October. 
 
 It is evident, that the means of the Bank are dependent upon the availa- 
 bility of its securities, chiefly ; and so it is with all Banks. Their profits 
 are derived from loaning money, which thus passes out of their custody. — 
 Generally, its discounted paper, as long as it retains its Bank shape, is es- 
 timated as good, and in the usual course, it is paid up at short intervals, 
 and re-loaned. Much, too, of the paper in suit, may be, ultimately, availa- 
 ble ; but it has ceased to be moveable, and is got in altogether by process. 
 The paper in Bank shape, the specie and bills on hand, are the only sources 
 to be relied upon, to meet its circulation. Bonds and judgments, although 
 well secured, cannot be realized at will, or within a short and fixed period, 
 and consequently cannot be relied upon to meet their own paper payable 
 on demand. 
 
 The General Statement will show how large a portion of the assets of 
 the Bank are in this position. 
 
 PROFIT AND LOSS ACCOUNT. 
 
 Over and above the assets contained in the General Statement, the Bank 
 owns a large amount, which has been carried to the account of Profit and 
 Loss, and thus abstracted from the regular operations and calculations of 
 the Bank. This amount is made up of bad debts, so estimated. They 
 have been saved to its active capital, by contributions from the yearly profits 
 from which they have been deducted, thereby diminishing the yearly in- 
 come of the Bank. If this amount is never recovered, it will not alfect 
 
 29 
 
226 REPORTS OF INVESTIGATING COMMITTEES. 
 
 the General Statement, and should any portion of it be realized and paid 
 in, it will swell the income for that year. Still the amount due on the 
 Profit and Loss Account, is the property of the State, and its nominal 
 amount is large. The total of this item, exclusive of bonds and notes in 
 suit, which are included in the General Statement, is $283,891 50, exclu- 
 sive of interest, and consists of the money of the Bank received by its bor- 
 rowers, who have omitted to pay it back, and whose debts, having been con - 
 sidered to be desperate, have been withdrawn from the list of assets of the 
 Bank. An alphabetical list of all the debtors of the Bank, from its foun- 
 dation, who have failed to pay, together with their securities, and the dates, 
 were examined. It will be remarked, that however seemingly large, this 
 aggregate is made of the bad debts incurred in along series of years, since 
 the foundation of the Bank. While this topic is under consideration, it is 
 proper to say that no Suspense Account, separate from the Profit and Loss 
 Account, has been kept ; neither has this fund been under the special su- 
 perintendence of any officer, all being engaged in the current business of 
 the Bank, and these debts being withdrawn from it, have been comparative- 
 ly the object of less attention. It is well known, that debts apparently 
 hopeless, are sometimes realized by vigilance and activity. Men often be- 
 come wealthy by contingencies, which render them unexpectedly able to 
 pay their debts j and if every debt, the moment it goes out of Bank, and 
 ceases to occupy its position as a current debt, were reduced to judgment, 
 and this account placed under the special care of some one charged with it, 
 large sums might be occasionally realized. Good or bad, this fund belongs 
 to the State, or its Bank, and is now submitted to the consideration of the 
 Legislature, as included in the subjects of the investigation of the Commit- 
 tee. Althougk they place no value upon it, in estimating the assets of the 
 Bank, still it is a source from which large sums may be realized. These 
 debts have been handed over from time to time, to the Attorney General or 
 Solicitors, and nothing approaching a systematic and punctual return has 
 been made, by which your Committee could ascertain whether due dili- 
 gence had in all cases been used to render these demands secure or availa- 
 ble. It is well worth the labor, to have all the evidences of these debts 
 searched for, and full returns required of those to whom they were commit- 
 ted, and in case of default, to pursue the necessary steps against them, or 
 their legal representatives, to indemnify the State for any loss it may have 
 sustained by misconduct or culpable neglect. No original paper should be 
 permitted to leave the vaults of the Bank, except when wanted as evidence, 
 and then copies should be retained, and a receipt taken for the original, 
 with an obligation to "return it. In some cases this has been done — in very 
 many, omitted. The present Cashier has been more cautious ; but the 
 conduct and supervision of dishonored debts may be regulated to great ad- 
 vantage. Your Committee were not able to vouch this document by in- 
 spection of the original vouchers, for the causes stated. 
 
 "We now come to the items constituting the available means of the Bank 
 to meet its liabilities. The account, on the day of examination, amounted 
 to $5,668,886 97. 
 
 DISCOUNTS. 
 
 The Committee required the production of every note, took down the 
 amount, and then compared the result with the Books of the Bank, and 
 found them to correspond Among so many notes, it could nof 1-° ^-r^-o+o^^ 
 
I 
 
 REPORTS OF INVESTIGATING COMMITTEES. 227 
 
 that all were above suspicion. But as a discount list, your Committee, after 
 all the scrutiny which their own knowledge of the parties, and such infor- 
 mation as they could obtain from men engaged in the actual business of 
 the community enabled them to bestow, they have come to the conclusion 
 that the customers of the Bank generally, are men who deserve the credit 
 they receive, and that their business renders them desirable customers ; 
 that the Directors have been judicious in their discounts, and the State has 
 no cause of uneasiness on this head. That some exceptions exist is true, 
 but not more than are incident to the dealings of all Banks of Discount. 
 These debts are well distributed throughout the State. This list concludes 
 a true and legitimate business of a Bank ; its debts are running to matu- 
 rity at short periods, and subject to be called in at the option of the Bank, 
 at their expiration, all the parties to the paper retain their standing and 
 credit. Although your Committee felt it a part of their duty to scrutinize 
 this list, and form an estimate of the goodness of the debts it contained, 
 they do not feel that any necessity exists for any further action of the Le- 
 gislature, than to commit it to the intelligent and trust-worthy Directors 
 to preserve and continue its soundness, and where necessary to apply such 
 means as their judgment, acting upon the circumstances of each case, may 
 dictate, to secure the doubtful, and enforce the collection of such as become 
 impervious to influences of Bank credit, in the most prompt and efficient 
 manner. 
 
 DIRECTORS. 
 
 Among the borrowers on the discount list, are of course, the Directors of 
 the Bank. Receiving no compensation, and by their situation, in a degree 
 precluded from accommodations in other Banks, they necessarily give their 
 custom to their own institution. Your Committee abstracted from the 
 Discount Account the liabilities of the Directors, including the President 
 of the Board, and on inspection, it exhibited the fact that generally their 
 liabilities are in proportion to their business and credit. Other merchants 
 deal with each of the Banks for part of their discounts : Directors must 
 rely chiefly on their own. There is no reason to believe these debts are 
 not generally well secured. It is important to the State to secure the ser- 
 vices of men extensively engaged in business, to act as Directors, and to 
 do so, they must be allowed to deal on terms at least as favorable as are 
 offered to Directors in other Banks. In conclusion, the Committee found 
 the line of discount exhibiting a healthy Bank business, and that the Di- 
 rectors were diligent and trust-worthy. 
 
 BILLS AND NOTES IN SUIT. 
 
 This item of assets is distinct, and not included in the amount of debts 
 carried to Profit and Loss. Although they have lost their Bank shape, 
 they are not hopeless, but still looked upon as assets, although not imme- 
 diately available. On inspection of the list, however, there is a large por- 
 tion that seems destined to swell the debit side of the Profit and Loss Ac- 
 count, and in estimating the ways and means of the Bank, a very liberal 
 deduction should be made from the sum total, in order to arrive at a rea- 
 sonable approximation to the relative amount of the debts and assets of 
 the Bank. The aggregate of this class of debts, at the time the investiga- 
 tion was made, was $182,924 84. 
 
228 REPORTS OF INVESTIGATING COMMITTEES. 
 
 BONDS SECURED BY MORTGAGES. 
 
 This class of debts has "been the subject of much animadveTsion, ancl 
 received from your committee all the attention which the large amount at 
 stake, and the anxiety of the Legislature, rendered indispensable. 
 
 The first object of enquiry necessarily was, under what authority so 
 large a portion of the fixed capital of the Bank was loaned in a form not 
 agreeable to the ordinary mode of eflfecting loans from banking institu- 
 tions. 
 
 Your committee are by no means disposed to question the policy of in- 
 vesting in loans on bond, a portion of the capital of the Bank, to use the 
 language of its incorporation, "for a longer period, and on security differ- 
 ent from what had hitherto been required" by banking institutions. For 
 although two good names may do very well for short loans and in ordina- 
 ry cases, yet the constant practice of business men to indorse recipro- 
 cally for each other, leads often to the result, that the same misfortune or 
 mismanagement which overwhelms one, carries the other along with him ; 
 and the history of the last few years, proves that names the most accepta- 
 ble to the Bank Board, if the whole truth was known, are not deserving of 
 any credit ; and that when failures do occur, it becomes a common expres- 
 sion, " he was the last man any one expected would fail." Indeed, the 
 overweening reliance placed on those who keep their credit good, substi- 
 tutes credit for actual capital] and as a little ingenuity will enable a mana- 
 ging man to establish an unquestioned credit, who would find it difficult to 
 accumulate, in the mean time, an actual capital. Banks come to place an 
 unreserved reliance on two good names, the actual worthlessness of which 
 is not discovered until both are exposed, and seldom has there been a 
 wreck left to make a dividend. In fact, mercantile failures have general- 
 ly taken place by the assortment ; when it is discovered, that like card 
 houses, they all rested upon one abutment, and when that gave way, they 
 all fell together. 
 
 Experience has taught Banks to rely less upon mere names, and to look 
 more inquisitively into the substantial property of its customers. Still, 
 however, to preserve a sound Bank currency, and prevent suspicions, so 
 much of their capital as, together with their specie, will enable Banks to 
 meet the occasional pressures which occur, and redeem their circulation 
 promptly, must be invested in short loans, and to men who feel the strin- 
 gency of Bank credit, to compel an actual response to calls upon them, to 
 repay their loans at the day. What portion that ought to be, can only 
 wisely be decided by a Board of Directors engaged in business, watching 
 its current, and warned by its indications, and under the solemn injunc- 
 tion to preserve the faith of the Bank unsullied, and its circulation prompt- 
 ly redeemable in money. The President and Directors of the Bank may 
 be entrusted with a sound discretion on this head, subject to the supervi- 
 sion of the periodical committees appointed to review and examine their 
 proceedings. 
 
 In examining the present bond debt, amounting at the date of the ex- 
 hibit furnished by the Bank, to $609,38 1 67, your committee discovered 
 that there was a great variety in the mode and manner in which the bonds 
 were secured. This led to enquiry, and in order to be able to give an au- 
 thoritative account to your body, they called for every bond, and other 
 voucher or document securing each debt, and minutely examined tlieni. 
 In some instances, the debt was secured by bonds given out of doors, and 
 
REPORTS OF INVESTIGATING COMMITTEES. 229 
 
 assigned to tlie Bank ; in some, a bond and mortgage of real estate in the 
 city was not fortified by an insurance on the buildings, and in case of fire 
 the naked lot and personal responsibility of the borrower, would alone re- 
 main. In two instances, the bonds were fortified by personal security, and 
 land in Alabama added as security ; in one, a simple bond without mort- 
 gage, but guarantied by indorsement by the most ample names. Again, 
 loans were made on real estate, to at least its outside value, and no authori- 
 ty to foreclose, without the delay of a suit ; and in one instance, the debt- 
 or made an assignment in favor of other creditors, who received the 
 rents and profits during a foreclosure, while the Bank debt was increasing 
 by accumulating interest. In fact, there is included in the bond debt, 
 every variety which might be expected in the investments of private indi- 
 viduals, as appeared by the ' examination of an exact transcript of all the 
 bonds held by the Bank — distinguishing those which have, in the course 
 of business, been received in payment, or compromise and settlement of 
 debts due the Bank, being the proceeds of sale of the estates of debtors, 
 or substituted as better security for doubtful debts, from such as were 
 given for original loans, showing the date, original amount, and the balance 
 due, with such particulars as were necessary to illustrate the subject. In 
 relation to those bonds which were taken to secure compromises, or to fa- 
 cilitate the settlement of precarious debts, they doubtless are sanctioned by 
 the general authority of the President and Directors, to do all that may 
 be necessary to secure the interests of the Bank. The money having 
 gone out of the Bank in the mode pointed out by the charter, the JDirectors 
 and President were right to get it back in any shape which would ultimate- 
 ly secure the debt ; and to such bonds and securities, your committee do 
 not consider the directions of the charter to apply — they were obtained in 
 a legitimate efi"ort to secure the Bank. But there is a remaining class of 
 bonds, which, in amount, and the mode in which they are secured, being 
 for original loans, which your committee feel it incumbent upon them to 
 submit to your especial consideration ; these bonds are of various amounts ; 
 as an example, the first bond on the list is for $7,000, dated 15th August, 
 1838, and payable by instalments. The whole principal and interest from 
 date, is due and unpaid, and it becomes necessary now to go through the 
 forms of a regular foreclosure, to enable the Bank to receive its debt, and 
 your committee directed full insurance to be kept up, and the renewal of the 
 policy to be indorsed upon it by the Insurance Company. The principal of 
 this debt, will probably be paid, as the estate of the obligor is represented to be 
 good, but whether all the interest and cost can be realized by a cash sale of the 
 mortgaged premises alone, is at least questionable. Had this bond been 
 taken under the charter, no loss could have been hazarded, and on the first 
 default, the Bank could have foreclosed, and would long since have had its 
 money to lend to other customers. In general, however, these debts are 
 well secured by mortgages of lands and negroes, and personal security ; 
 and have, no doubt, contributed very much to enable the borrowers to gave 
 their estates from sacrifice, and preserve to the State both its citizens and 
 their fortunes, to add to its power and wealth. 
 
 There are, however, bonds secured by lands and negroes without the 
 State, which ought to be realized, and we understand the negroes, in one 
 case, are on their way back, for the purpose of being sold. There are 
 some, too, secured by city property, which has depreciated in value. Some 
 where the debtor has no reasonable hope of better times. Without estab- 
 
230 REPORTS OF INVESTIGATING COMMITTEES. 
 
 lishing any peremptory rule, general instructions to collect and better se- 
 cure this debt, may be so executed as riot to break up the permanent inter- 
 ests of the State, which should be dealt tenderly by, until economy and in- 
 dustry afford their certain means of deliverance. Any peremptory rule 
 might embarrass the collection and hazard the debt. 
 
 Your committee have understood that the departure from the terms, 
 amount, and securities of loans on mortgage, has repeatedly been reported 
 to the Legislature, and been sanctioned by their silence. Such re- 
 ports are not found in print. It is true, that in 1825, A. A. p. 114. a res- 
 olution was passed, extending loans on mortgage "to $10,000, under the 
 same conditions are now established by law ;" but it is equally true, that 
 the same paper contained a resolution directing the committee " to draft 
 a bill to carry the foregoing resolutions into effect ;" and no such bill is 
 found on the statute book. On the large loans to corporations, which are but 
 few, your committee had no means of estimating the value of the real se- 
 curity with accuracy, but the more extensive acquaintance of the members 
 with the particular property, will enable them to do so. On the whole, 
 they believe the bond debts will be realized, with few exceptions ; and the 
 undoubted relief loans have afforded to our own citizens, goes far to palliate 
 any departure from the letter of the charter. While they have most im- 
 plicit faith in the purity of the motives which governed the direction, the 
 committee could not, without a flagrant dereliction of duty, omit to bring 
 these matters distinctly before the Legislature, for its future action. 
 
 The whole number of bonds now on hand is ninety-five. The original 
 amount of these bonds was $909,473 33. The amount now due, is 
 $606,572 26. So that the Bank has received on this debt, $302,901 07. 
 
 Since the foundation of the Bank, the amount loaned on bonds, is 
 and the Bank has received the sum of in discharge. 
 
 Generally, there has been little lost by this debt, and the loans have 
 been, in times of difficulty, a material relief to our citizens ; and if the 
 present list is judiciously and firmly managed, and future loans more cau- 
 tiously made, the benefit to the permanent interests of the State will well 
 warrant the devotion of a proper portion of the funds of the State to this 
 end. Personal security, and a rigid valuation of the property, with a pow- 
 er to confess judgment and sell on default, will remedy most of the defects 
 animadverted upon in relation to the present debt. 
 
 BONDS UNDER THE FIRE LOAN. 
 
 These bonds being all taken under the special directions of law, are 
 generally secure, although from the high price of materials when the build- 
 ings were erected, and the subsequent fall in real estate, severe loss must 
 accrue ; still, as the city of Charleston is guarantee of all these bonds, 
 they may be considered wholly secure. 
 
 CASH. 
 
 Your committee counted the bank notes and specie minutely, on the 10th 
 October, 1841, and found it correct. The Bank account being made up 
 to 1st October, occasions the only discrepancy between their count and the 
 return of the Bank. 
 
REPORTS OF INVESTIGATING COMMITTEES. 231 
 
 BRANCHES. 
 
 The amount of the agencies only appeared by the entries ; and how 
 much of these sums the Hamburg and Georgetown agencies will realize, 
 your committee had no means of estimating, and cannot, therefore, say 
 that these amounts will be positively available to meet the liabilities of the 
 Bank. 
 
 STOCKS. 
 
 The certificates of the stock held by the Bank as part of its assets 
 were produced and inspected. These arc credited at cost. The Bank 
 stock is liable to fluctuations, and that of the United States Bank is all 
 but worthless. The Rail Road stock, also, must abide the success of the 
 enterprise before it can be realized. The obligations, as distinguished from 
 the stock, may be held as available means. 
 
 BANK ESTATE. 
 
 The exhibit herewith filed, will show the actual cost of the two banking 
 houses in Charleston, one of which is rented out, and also those in Colum- 
 bia and Camden. The other real estate was bought in by the Bank for 
 bad debts, as per schedule, and will be sold when practicable. 
 
 JUDGMENTS. 
 
 These are two in number. The precise object in buying up these judg- 
 ments, and retaining them in that shape, did not fully appear ; but it 
 seems the Bank had demands against the debtors, and to facilitate and 
 give the command of their estates, it advanced the amount, and took an 
 assignment of these judgments. The retaining them as debts in this form, 
 is out of the ordinary course, as there is no day for payment, and no pro- 
 portion fixed to be called in. The charter forbids a standing debt ; but 
 in all cases where the permanent property of the State is implicated, a pa- 
 ternal tenderness should be exercised, and an enlightened direction will 
 devise the best means of gradually extinguishing such debts. They may 
 be relied on as means ultimately available, as they bind real and personal 
 estate. The balances due abroad, appear by the accounts, and are no 
 doubt good as specie, as they form the basis of exchange. 
 
 Tlie interest and expenses on State loans, are charged, as the entire sum 
 is credited. On a review of all the liabilities and assets of the Bank, your 
 committee have come to the conclusion, that the Bank will be able to con- 
 tinue its business with unquestioned credit, and meet all its liabilities in 
 actual money, and restore its whole capital to the State unimpaired. 
 
 THE PUBLIC DEBT. 
 
 The Bank is intimately and inseparably connected with the Public Debt 
 and Sinking Fund. 
 
 In f^20, the State borrowed $800,000, to pay the cost of Internal Im- 
 provements, and in December, 1 82 1 , established a Sinking Fund, composed 
 of the profits of the Bank, to meet the interest and final redemption of the 
 then existing six per cent, stock. By the books of the Comptroller Gene- 
 
232 REPORTS OF INVESTIGATING COMMITTEES. 
 
 ral's Office, it appears that at the date of this Act, the amount of the six per 
 cent, stock was $800,000, which was fully redeemed in 1840, from the 
 Sinking Fund. The exhibit shows the entire amount of the Funded Debt 
 of the State. The total is $3,560,000, including $2,000,000 of what is 
 called the fire loan. Of this sum, $1,040,569 00, is due by those citizens 
 of Charleston, who have borrowed under the Fire Loan, and being secured 
 by the guarantee of the city, may be deducted, leaving the sum of $2,519,- 
 431, to be redeemed by the State, independent of its guarantee to the Rail 
 Road Company's debt, which being provided for as will be seen by refer- 
 ence to that head, the funded debt to be paid by the State is thus ascer- 
 tained. The ways and means to meet the interest on this sum, and finally 
 to redeem the principal, which becomes due in instalments from 1 842 to 
 1870, consists of the dividends or profits of the Bank, and its capital stock ; 
 and these will prove, under ordinary circumstances, amply sufficient, as will 
 appear by the calculation hereto annexed. But it is well, in order that the 
 Legislature may be guarded against resorting to the Bank, its profits, or 
 capital, for the ordinary expenses of the State, to point out the fact, that 
 these funds are solemnly mortgaged and pledged to the holders of the 
 State Stocks, without whose assent no diversion of these funds can be 
 made, or their security impaired. The State is but a trustee ; until its debt 
 is paid, it holds only the equity of redemption, in the Bank. The Sinking 
 Fund was solely applicable to the 6 percent, stock. But in 1822, the Le- 
 gislature — (See Vol. 6, State Laws, 196, 1819,) after this Preamble : — 
 " Whereas, the fund created by the act to raise supplies for the year 1820, 
 for tiie payment of the interest on, and final extinguishment of the Stock 
 thereby authorized to be issued, is more than sufficient to answer that pur- 
 pose" — proceeded to create a five per cent, stock of $200,000, the second 
 item in the Exhibit, and added " The faith of the State, the Capital of the 
 Bank of the State of South Carolina, and the annual dividends of the said 
 Bank, are hereby solemnly pledged for the payment of the interest, and the 
 final redemption of said debts." 
 
 The next issue of stock was in 1824, and is a mere continuation of the 
 issue of five per cents, and the act concludes in the same words as that df 
 1 822, pledging the faith of the State, " the capital and dividends of the 
 Bank of the State, for the payment of interest and final redemption" of 
 this stock. 
 
 The next issue was in 1826, of $300,000, but no special fund was set 
 apart for the payment of the interest or redemption of the principal, al- 
 though the faith of the State generally, is of course plighted ; still, if by 
 any contingency there should be any deficiency to meet the interest of the 
 prior stock, its holders might claim the exclusive application of the Bank 
 funds. But at aU'events, some Legislative authority ought to be given to pay 
 the interest, and redeem the principal, out of the Bank funds, to justify its 
 officers in doing so. It is eminently bad policy to permit subordinate 
 agents to supply the omissions of the Legislature. The precedent is of 
 evil tendency. 
 
 The next item of the Funded Debt, was created in 1826 ; no particular 
 fund is appropriated for this interest or redemption of this stock, which 
 was issued to Mrs. Randolph, the daughter of Thos. Jefferson, "^or her 
 sole and separate use and benefit, and to be subject to her disposition, by 
 any writing under her hand." This was a free gift, worthy of the liberality 
 of the State. It is a small item, and it would be well to authorize the Bank 
 to buy it and substitute any of its stocks in its place. 
 
REPORTS OF INVESTiaATINO COMMITTEES. 233 
 
 No further stocks were issued until 1838: '39. At this time the only 
 funded debt of the State was $1,560,000, of which the Sinking Fund re- 
 deemed in 1840, $800,000, which would have left but $760,000, which the 
 Sinking Fund would easily have extinguished, and left the State unembar- 
 rassed, with a large Bank Capital, and an income that would have enabled 
 it to diminish its taxes to a very inconsiderable amount. Indeed, but for 
 the sums expended on Internal Improvements, so much of which proved 
 abortive, the predictions of the sanguine and enlightened parent of the 
 Bank, would have been fully realized. Now, the only funded debt for 
 which the State has no equivalent, is the residue of the Internal Improve- 
 ment Debt, $760,000, the 3 per cent, and Randolph Stock. Since this pe- 
 riod, all the debt incurred, has been under the promise of an equivalent, 
 and forms two distinct classes of debts. First, the purchase or subscrip- 
 tion to stock in the L. C. and C. R. R. Company and Bank, and its ad- 
 vances for the same. And secondly, the Fire Loan of Charleston. The 
 arst item embraces $200,000, 5 per cents, of 1838, and $600,000, 6 per cents, 
 of 1839. The second, $2,000,000, 6 per cents, besides its guarantee of 
 $2,000,000 more to the Rail Road. As these debts also affect the Bank, a 
 full exposition of them is indispensible to a thorough knowledge of all its 
 concerns. The following additional pledges or mortgages exist. The $200- 
 000, created in 1838 — no pledge. The $600,000, in the same year, is se- 
 cured thus : " That the interest on the said stock shall be paid from the 
 Sinking Fund, and that the faith of the State, the capital and dividends of 
 the Bank of the State, and the balance of the Surplus Revenue which may 
 remain on deposite in the Bank of the State, beyond the sums required to 
 meet the four instalments not now advanced by this act, on the subscrip- 
 tion of this State, to the Louisville, Cincinnati, and Charleston Rail Road 
 Company, are hereby solemnly pledged for the- payment of the interest, 
 and the final redemption of said debt." 
 
 The 2,000,000, Fire Loan, is also secured thus : " When the profits of 
 the said Bank of the State of South Carolina shall have paid the interest 
 on certain stocks, and redeemed said stocks, for which they have heretofore 
 been pledged and set apart, the said profits shall also be considered solemn- 
 ly pledged and set apart for the payment of the interest on the said Loan, 
 and the final redemption thereof." Thus a specific pledge is made as to 
 $450,000 to pay the proper debt of the State, of 1822 and 1824 ; for the 
 Rail Road debt of $600,000 : and lastly, the Fire Loan of 2,000,000 ; while 
 no special provision is made for $310,000 of the proper debt of the State. 
 
 SURPLUS REVENUE. 
 
 The amount received on deposit from the U. States was $1,051,422 09, 
 and has been disposed of thus : 
 
 Carried to the Sinking Fund $651,422 09 
 
 Paid to the Rail Road, as subscription 200,000 
 
 In Bank, and used as Capital, 200,000 
 
 $1,051,422 09 
 It will be perceived that the Sinking Fund, by this accumulation, has. 
 notwithstanding the payment of the $800,000 of stock due in 1840, still 
 left the sum of $743,628 31, on the 1st October, 1840. 
 
 30 
 
234 REPORTS OF INVESTIGATING COMMITTEES. 
 
 SALARIES OF OFFICERS. 
 
 Under the injunction to report on this subject, your Committee have col 
 lected, and present in a statement, Exhibit 8, the salaries of the officers 
 and a comparative view of those of other institutions, which leaves no room 
 for animadversion ; on the contrary, as the , extraordinary duties arising 
 from the management of the Public Debt, devolve upon the officers of this 
 Bank, their compensation is moderate. 
 
 PRIVATE DEPOSITS. 
 
 The Exhibit shows the monthly amount of Individual Deposits, for 
 twenty-one months prior to our investigation, and is sufficient to put the 
 Legislature in possession of all the required information on that head. 
 
 CAPITAL, AND FUNDS USED AS CAPITAL. 
 
 The Exhibits Vill give all the information requisite on that head, by 
 which it will be perceived, that the Capital proper of the Bank, is derived 
 
 from the State, and amounts to $1,156,318 48 
 
 Used as Capital _1,903,059 31 
 
 Total, A $3,059,377 79 
 
 REAL ESTATE. 
 
 The Exhibit B. is a statement of the Real Estate of the Bank, its origi- 
 nal cost and expense of improvements. 
 
 FIRE LOAN. 
 
 The particulars of the negotiation of so much of this Loan as has been 
 taken by the citizens of Charleston, having been heretofore so reported, it 
 is sufficient to state, that there is invested in bonds and mortgages, secured 
 
 by guarantee of the City Council $1,045,438 70 
 
 Six per cent. Stock sold and retained by the Bank, 964,444 45 
 
 2,009,883 15 
 Deduct this amount, which was carried to the account of In- 
 terest on the State Loan 9,883 15 
 
 $2,000,000 00 
 The Exhibits will explain all the particulars. 
 
 GENERAL STATEMENT. 
 
 The Exhibit 1, of the President of the Bank, in his Report, is referred 
 to, as containing a correct statement of Debits and Credits of the Bank. 
 
 RAIL ROAD AND RAIL ROAD BANK. 
 
 The connection of the State with these institutions, involving a large in- 
 debtedness, and still larger security, for which its Bank funds are implica- 
 ted, requires to be fully stated. 
 
 The State subscribed to the Rail Road Stock, ten thousand shares, equal 
 
REPORTS OF INVESTIGATING COMMITTEES. 235 
 
 to a million. By the reduction directed by the last Act, the same will be 
 reduced to $800,000. 
 
 It is also in connection a stockholder in the Bank of that Company. 
 
 It has paid in advance on its Stock, to the Company, $600,000 in 6 per 
 cent. Stocks, for which -the State is liable, and it receives interest on so 
 much of this Stock as exceeds the proportion paid in by the other Stock- 
 holders, and their interest goes to pay up the instalments, in part, as they 
 fall due. But the interest on the $600,000 of stock is a charge upon the 
 State, and it receives in return, interest only on the excess of its advance 
 above the portions paid in by the private Stockholders. This Stock the 
 State is bound to redeem in 1848, 1850, and 1852, in equal instalments. — 
 If by that time the Rail Road begins to pay dividends, the State will have 
 an equivalent for this sum ; if not, it will lose the difference between that 
 amount and the actual value of its Stock. 
 
 The State also subscribed to the Bank, and Stock to the amount of 
 $200,000, payable in 1858, was authorized to be issued, and together with 
 $50,000 bonus on the Charter of the Bank of Charleston, was paid to the 
 Bank. Of this sum, the Comptroller has received back $58,307 50, leav- 
 ing due of the Stock, the sum of $141,662 50. The Bank pays a dividend, 
 and this stock and bonus thus has an equivalent. 
 
 Besides this, the State has given its guarantee to the extent of $2,000,- 
 000, on bonds used by the Rail Road. And it holds a mortgage of the 
 Rail Road from Charleston to Augusta, and the Columbia branch, as a 
 security. 
 
 If this enterprise proves successful, the State will be indemnified. And 
 now that the scheme is cut down to the practical purposes of a Rail Road 
 to Augusta, and branch to Columbia, there is good reason to hope that a pro- 
 ject, originating in an ardent desire to meet the spirit of enterprise which 
 characterizes the age, and bring Carolina into the current of enterprise and 
 commercial activity, will at last result in a permanent improvement in our 
 means of internal communication, without overwhelming the patriotic and 
 public spirited individuals who originated it, or the State itself, in any se- 
 rious losses. 
 
 Your Committee have thus performed their laborious and delicate task, 
 with at least fidelity and industry. They have endeavored to change sus- 
 picion into knowledge, by a full developement of the true state of our Bank, 
 and the finances of the State, as connected with it, and beg leave to con- 
 dense in a brief analysis, the result of the enquiries. For some years, 
 there has existed in this State a suspicion that our finances were inextrica- 
 bly involved, and that the funds of the Bank had been improvidently 
 loaned out on imperfect security, and suffered to remain as a permanent 
 debt, to favored individuals ; and that ere long, the Bank would explode, 
 and involve the State in embarrassment and bankruptcy. This suspicion 
 has depreciated the value of our State Stocks, and lessened confidence in 
 the ability of the State to extricate itself from the difficulties which of late 
 years have overwhelmed our citizens, in common with our whole country. — 
 Our citizens have been in the habit of investing their surplus capital in in- 
 stitutions managed abroad, and the late disastrous breaking up of the Uni- 
 ted States Bank, has swallowed up a large amount of capital, and reduced 
 many of them to comparative indigence. 
 
 The knowledge of our own finances must quiet the alarm of the over- 
 cautious, and point out to our citizens who have surplus capital to dispose 
 of, a secure investment. 
 
236 REPORTS OF INVESTIGATING COMMITTEES. 
 
 The general result is, that the Bank of the State is in a safe and flour- 
 ishing condition, and capable of continuing its business on a safe and per- 
 manent basis, and preserving a sound and healthy circulation : That its 
 debts, under an efficient and able direction, will be realized with as little 
 loss as is incident to transactions so extensive and various : 
 
 That the Bank has sustained the best interest of the State in her loans ; 
 and in every stage of its existence, its officers have exhibited the most un- 
 blemished integrity, and have committed as few errors, as from the difficul- 
 ties and uncertainties of business, could have been expected. That its 
 creditors are secured beyond the most distant doubt, and its ability to re- 
 deem its circulation in specie certain. That the capital is also secured, 
 and its future action promises a punctual discharge of all the debts of the 
 State, principal and interest, at the day. 
 
 In relation to the Public Debt of the State, the Exhibit will show the ac- 
 tion of the Sinking Fund, from which will be seen that the Public Debt will 
 be redeemed, and its interest provided, from funds wholly distinct from 
 the ordinary income of the State ; so that no additional taxation is neces- 
 sary, provided the appropriations do not exceed the usual amount realized 
 from taxation. In fact, after paying the following debts : 
 
 Stock due, 1842 $200,000 
 
 Do. 1845 250,000 
 
 Do. 1846 300,000 
 
 Do. 1850 . 10,000 
 
 $760,000 
 an amount not exceeding the Sinking Fund, the State will owe nothing for 
 which it is not in possession of an equivalent. 
 
 The items are, due in 1858 $141,662 50, for which the State holds 
 Shares in the Rail Road Bank, the dividends on which will equal the inter- 
 est of five per cent, and may probably even exceed it, and thus constitute 
 a Sinking Fund to redeem the Stock, and leave the State still its shares. — 
 The next item is $600,000, payable in 1848, 1850, and 1852. This sum 
 was subscribed in advance, to the Rail Road, and of course the State has 
 an equivalent in that Stock, and the mortgage of its property. 
 
 The $2,000,000 Fire Loan is no charge upon the State, as its payment 
 is secured in part by the City, and in part by the Bank, where it is depos- 
 ited, and the dividends are carried to the Sinking Fund, which will in time 
 extinguish it. The policy of increasing Banking Capital by Stock itself 
 bearing interest, is questionable ; but if the Sinking Fund finally extin- 
 guishes it, it will amount to the same thing as carrying the Sinking Fund 
 to Capital. The $2,000,000 guarantied for the Rail Road, is provided for 
 by the application of the income of the Road to pay the interest, and its 
 ample property stands security for the principal. Thus there is nothing in 
 the situation of our finances to create uneasiness, but everything to con- 
 firm our confidence in the unquestioned ability of the State to maintain her 
 faith untarnished. All the public debt will be paid, leaving the State its 
 Bank Capital entire, and the Surplus Revenue ready to be restored to the 
 nation, to which it belongs, whenever the wants of the General Government 
 may require it. While we thus congratulate the State on its financial 
 prosperity, let it be no inducement to further indebtedness. But for ex- 
 penditures upon projects of improvement, in advance of the settlement and 
 wants of the State, the taxes might have been reduced one-half Instead 
 
I 
 
 REPORTS OF INVESTiaATING COMMITTEES. 237 
 
 of further indebtedness, let us rejoice that we have stopped short of dis- 
 graceful insolvency ; and unless to complete what has been well begun, and 
 then with great caution, no further engagements should be made, until 
 what is now due is paid oiF. For what stock we now have out, whenever 
 its holders are dissatisfied, they can find a ready sale for permanent invest- 
 ment among our own citizens, and the Bank cannot do a better business, 
 when its funds can be spared, than to buy it up, as they can readily turn it 
 into money when required. It is now difficult to find investment for the 
 estates of minors and others ; and when foreigners are disposed to send 
 home our stock, it will meet with a welcome at full prices. 
 
 Your Committee, in conclusion, would remark on the sound policy which 
 Jbas led the State periodically to re-elect the presiding officer of the Bank, 
 when found faithful and capable. It gives stability to the institution, and, 
 with the strict and searching scrutiny of your investigations, ensures sys- 
 tem and fidelitj^ It is due to the present incumbent to say, that he has 
 devoted himself to the interests of the Bank with untiring zeal, and being 
 in the meridian of his life, will every year add to the stock of his experi- 
 rience, and consequent usefulness. Most of the officers of the Bank have 
 been of long standing, and their integrity is beyond suspicion. All afford- 
 ed your Committee a ready and willing obedience to their calls for infor- 
 mation ; manifesting a proper sense of their duty to the State, to give the 
 most ample account of their stewardship. 
 
 All which is respectfully submitted. 
 
 F. D. QUASH, Chairman of the 
 
 Committee on the part of the Senate. 
 B. F. HUNT, Chairman of the 
 Committee on the part of the House. 
 
238 REPORTS OF INVESTIGATING COMMITTEES. 
 
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REPORTS OF INVESTIGATING COMMITTEES. 239 
 
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240 REPORTS OF INVESTIGATING COMMITTEES. 
 
 
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REPORTS OF INVESTIGATING COMMITTEES. 241 
 
 [No. 4.] 
 
 Amount of Profits made by the Bank. 
 
 The Profits of the Bank to the 1st of October, 1841, have > 
 amounted to \ 
 
 Int. on the Capital of the Bank to the same time amounts to 
 
 If a charge be made for interest on the funds received 
 from the United States, as Surplus Revenue, and on 
 the Fire Loan Fund in possession of the Bank, 
 
 And if we debit ourselves with interest on our own Sur- 
 plus Profits carried to the Sinking Fund _- 
 
 Still would leave as profit. 
 
 1,234,889 84 
 
 $1,187,880 94 
 509,471 96 
 
 $678,408 98 
 
 485,524 41 
 
 This matter is perhaps better illustrated thus : 
 
 The interest on the Capital of the Bank 
 
 Interest on Surplus Revenue, received from United States 
 Interest on Fire Loan Fund 
 
 Full amount for which the Bank is chargeable as inter- 
 est on funds 
 
 The Bank has paid into the Treasury up to 1841. 
 
 Interest to holders of State Stocks 
 
 Interest paid to holders of Fire Loan Bonds, 
 
 6 per cents, of 1820, redeemed 
 
 From this sum, deduct the amount of interest for which 
 the Bank is chargeable, as stated above 
 
 Leaves as nett profits of the Bank 
 
 To this may be added the arrears and accruing interst on 
 funds of the Bank, (Fire Loan, and other Bonds, &c.,) 
 
 say _ 
 
 Loss of Bills, say 
 
 * Also the Balance of the Profits of the Bank, still remain- 
 ing on hand as part of the Sinking Fund 
 
 (Which three items should have been added to the sum of 
 $3,036,683 62,) _ 
 
 $192,884 57 
 
 $2,047,008 90 
 328,221 10 
 181,250 86 
 
 $2,556,480 86 
 
 $592,001 29 
 
 1,493,941 76 
 
 150,740 57 
 
 800,000 
 
 $3,036,683 62 
 
 2,556,480 86 
 
 t $480,202 76 
 
 70,000 
 130,000 
 
 * 198,206 22 
 
 $868,408 98 
 
 "33,036,683 62 
 *198,206 22 
 
 $3,234,889 84 
 2,556,480 86 
 
 tS678,408 98 
 
 31 
 
242 REPORTS OF INV:ESTIGATING COMMITTEES. 
 
 [No. 5.] 
 
 BANK ESTATE, 
 
 1818 
 
 May 14 
 July 20 
 Aug. 12 
 
 For banking House on south side of Broad 
 Street 
 
 For banking house for branch Bank, George- 
 town 
 
 For banking house for branch Bank, Cam- 
 den 
 
 $18,000 
 3,273 47 
 7,000 
 
 $28,273 47 
 C. M. FURMAN, Cashier. 
 
 Bank estate of the Bank of tJie State of South Carolina. 
 
 1831 
 1832 
 
 1838 
 
 1838 
 
 1841 
 
 October, 
 June, 
 
 June, 
 
 May, 
 
 October. 
 
 To balance 
 
 To cash paid for banking house 
 in Columbia 
 
 To cash for banking house in 
 Charleston 
 
 To cash for building vault, por- 
 tico, desks, and sundry alter- 
 ations to do 
 
 To cash for new granite front, 
 and other improvemento, to 
 old banking house 
 
 By cash from Bank of George- 
 town, for house and lot in 
 Georgetown 
 
 By contingent account for profit 
 on Bank of Charleston stock, 
 reserved for the purpose 
 
 By rent of old banking house 
 placed to this account 
 
 Balance ._ 
 
 DR. 
 
 $28,273 47 
 4,000 
 
 45,000 
 
 17,378 42 
 5,826 64 
 
 $100,478 53 
 
 To balance ._ $64,108 08 
 
 CR. 
 
 $2,500 
 32,415 45 
 
 1,455 
 64,108 08 
 
 100,478 53 
 
 B£al estate owned by tlw Bank^ and received far had debts^ Sfc. 
 
 Tract of land, purchased at sale of Markley's property- _ 
 
 Lot in Hamburg 
 
 Shares in Fire Proof Office, Augusta __ 
 
 Belvedere Mill 
 
 Land in St. Andrew's parish, received from Pinckney for his debt. 
 Land sold E. Cole, for which we have a security by mortgages 
 of the land and negroes 
 
 2,000 
 
 2,800 
 
 800 
 
 600 
 
REPORTS OF INVESTIGATING COMMITTEES. 243 
 
 No 6. 
 
 D^ts due by tJie State of South Carolhiu. 
 
 Three per cent stock 
 
 Five do do do 1822 
 
 do 
 
 do 
 
 do 
 
 do 
 
 do 
 
 do 
 
 do 
 
 do 
 
 do 
 Six 
 Five 
 Six 
 Five 
 Six 
 
 do 
 do 
 do 
 do 
 do 
 do 
 do 
 
 do 
 do 
 do 
 do 
 do 
 
 1824 
 
 1826 
 
 (Mrs. Randolph) 
 
 (Rail Road Bank) 
 
 (L. C.& C. R. R.) 
 
 (Sterling bonds, £333,000,). 
 
 stock — 
 
 $193,530 
 200,000 
 250,000 
 300,000 
 10.000 
 200^000 
 600,000 
 
 1,035,555 
 964,444 
 
 $5,805 91 
 10,000 00 
 12,500 00 
 15,000 00 
 600 00 
 10,000 00 
 36,000 00 
 57,525 11 
 57,866 66 
 
 Funds of tJie State and annual Interest. 
 
 Capital of the Bank 
 
 Surplus revenue, United States 
 
 Sinking Fund 
 
 Bond of Rail Road company. 
 
 8,000 shares in the Lo. C. & Ch. R. R. company. . 
 
 8,000 shares in the South Western R. R. Bank 
 
 Proceeds from loan for rebl. the city of Charleston, 
 
 $1,156,318 
 200,000 
 743,000 
 100,000 
 800,000 
 200,000 
 2,000,000 
 
 69,379 
 12,000 
 
 5,000 
 
 12,000 
 120,000 
 
 I 
 
 [No. 7.] 
 
 INDIVIDUAL DEPOSITS. 
 
 Bank of tlie State of South Carolina. 
 
 1839 October _ 354,880 64 
 
 November 332,906 52 
 
 December 329,081 79 
 
 1840 January 329,393 51 
 
 February 375,129 03 
 
 March 311,776 40 
 
 April - 303,978 08 
 
 May_- - - -385,944 34 
 
 June 337,960 71 
 
 July 371,970 32 
 
 August -327,089 22 
 
 September 283,792 70 
 
 October 267,787 91 
 
 November 264,729 52 
 
 December _ 263,549 13 
 
 1841 January 275,080 32 
 
 February--- 330,638 81 
 
 March 329,352 22 
 
 April 502,158 27 
 
 May .-- - 440,797 64 
 
 June - 440,026 68 
 
244 REPORTS OF INVESTIGATING COMMITTEES. 
 
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REPORTS OF INVESTiaxVTING COMMITTEES. 
 
 245 
 
 [No. 9.] 
 
 CONTINGENT EXPENSE ACCOUNT. 
 
 Expenses on Specie: 
 
 Freight 
 
 Do. _. 
 
 Do. 
 
 Do. 
 
 Do. 
 
 Do. 
 
 Do. 
 
 Do. 
 
 Do. 
 
 Insurance and Commission,. 
 
 sen-") 
 50; J 
 
 Do. do. 
 
 Do. do. 
 
 Do. do. 
 
 Do. do. 
 
 Do. do. 
 
 Do. do. 
 
 Do. do. 
 
 Postage : 
 
 $26 39; $60 84; $77 89; $64 92 
 
 Newspapers and AdvepcTising : 
 
 Patriot, $20 70 ; $20 16. Courier, $23 85 ; $16 70. Mercury, 
 
 $23 20; $17 73. Herald, $6 25 
 
 Books and Stationery 
 
 Hoff & Tucker, $90 82 ; Burgess & Walker, $26 75 ; Rosen- 
 burg, $5 50 ; Head, $5 ; duties on books imported, $3 
 
 Hoif& Tucker, $153 60 
 
 Bank Bills : 
 
 Underwood, Bald & Spencer 
 
 Printing : 
 
 A. E. Miller, $60 ; $137; $92 50 
 
 Expenses on Specie : 
 
 Insurance, $151 45 ; premium, $14 65 
 
 Insurance on Bank Property : 
 
 $68 75; $187 50 . 
 
 Officers' Fees and Costs : 
 
 Register of Mesne Con. $18 75 ; $18 75 ; $18 75 ; $18 75 ; $4 25. 
 Secretary of State, $18 25 ; $15 25 ; $6 50. Clerk Com. Pleas, 
 $18 75. Moise, attorney, costs, $24 36. Phillips, do. $54.— 
 Sheriff, costs, $67 25. Notary, $66 
 
 Repairs, Office Furniture, &c. 
 
 Werner, $38 12; Potter & Kelsey, $100 80; Enston, $14 50 
 May, $21; Downie, $8 50 ; Coyle, $42 82 ; Martin & Waller 
 $10 25 ; Poncignon, $5 75 ; $1 75 ; Lambert & Brs. $122 86 
 Adger, $4 25 ; Davidson, $4 ; Oliphant & Co. $2 75 ; May 
 $2 75; McCartney & Co. $1 75 ; Robinson & Co. $1 13 
 Crocker Co. $14 49 ; G. Y. Davis &> Co. $1 50 
 
 $30 00 
 
 62 50 
 
 62 50 
 
 62 50 
 
 62 50 
 
 62 60 
 
 50 00 
 
 62 50 
 
 5 27 
 
 135 90 
 
 158 60 
 
 78 25 
 96 10 
 
 158 60 
 158 60 
 158 60 
 
 79 23 
 
 230 84 
 128 59 
 
 284 17 
 
 212 50 
 289 50 
 166 10 
 256 25 
 
 349 61 
 
 ^399 36 
 
227 56 
 4j000 00 
 
 3^479 00 
 
 246 REPORTS OF INVESTIGATING COMMITTEES. 
 
 Sundries, Fees, &c. 
 Patton, $24; Allen, $11 50 ; Clifford, $13 ; Clifford, 13 ; 
 
 Mendenhall, $10 ; Strong, $6 ; Reading Room ,$12 50 ; 
 
 Witness, $4 50; Jacobsen, $2 50; Bowie, $15; Lit. 
 
 and Phil. Soc. Dep. $6 81; ins. advanced, $108 75, _ 
 F. H. Elmore, President, balance of salary, due ) , ^^^^ 
 
 1st October, 1840 \ ^'^^^ 
 
 Salary to 1st October 3,000 
 
 C. M. Furman, Cashier, balance of salary, due ) , oq^i 
 
 IstOctober, 1840 \ ^''^^^ 
 
 On account salary, 1st October, 1841 2,085 
 
 W. Lee, Teller-- 1 1,800 00 
 
 T. Waring, Assistant Clerk and Teller 1,600 00 
 
 W. R. Foster, Discount Clerk. __- _-... 1^800 00 
 
 R. W. Cogdell, Book-keeper and Teller 1,800 00 
 
 R. Yeadon, first Assistant Clerk 1,800 00 
 
 Wm. A. Hayne, Book-keeper 900 00 
 
 J. E. Carew!^ Assistant Clerk- __ 500 00 
 
 F. Gadsden, Out-door Clerk and Porter 1,000 00 
 
 Servants wages 241 48 
 
 H.Bailey, Attorney General, Sol. of Bank, act. of salary 650 00 
 
 $23,607 31 
 Cr. 
 Sundry old accounts (deposits) transferred to this account 1 2 1 29 
 
 $23,486 02 
 Deduct- -- - 67 
 
 $23,485 35 
 C. M. FURMAN, Cashier. 
 
 Contingent expense account, Bank of tJic State of South Carolina, 1841. 
 
 Salaries paid $19,338 00 
 
 Expenses on Specie 1,641 81 
 
 Postage, Stationery, &c 1,141 01 
 
 Costs, Officers charges for recording, and certificates- -. 349 61 
 
 Insurance, repairs. Fuel, desks, &c. &c 884 73 
 
 Servants hire, &c 241 48 
 
 $23,606 64 
 Cr. 
 Sundry old deposits placed to credit of this account — 121 29 
 
 $23,485 35 
 
 I 
 
REPORTS OF INVESTiaATIN(i5 COMMITTEES. 
 
 [No. 10.] 
 
 SCHEDULE. 
 
 Bonds now due ; origirud amount^ and present amount. 
 
 247 
 
 This schedule shows the original amount of those bonds now unpaid, 
 and the amount still due on them. 
 
 Due. 
 
 Not due. 
 
 1834 
 1835 
 1836 
 1837 
 1838 
 1839 
 1840 
 1841 
 
 ^5,000 00 
 
 4,165 38 
 
 25,000 00 
 
 00 
 27 
 00 
 00 
 
 142,211 52 
 238,287 66 
 
 19,788 
 
 86.050 
 
 181,230 
 
 207.740 
 
 "13,416 
 2,808 
 7,489 
 
 85 
 37 
 36 
 65 
 37 
 35 
 
 35,390 
 111,575 
 105,336 19 
 125,442 75 
 207,560 39 
 
 95 909,473 83 $606,572 26 
 
 The principal of the above bonds has been reduced by payments 
 $302,901 07. 
 
 From 1 830 to the present time, the Bank has held three hundred and 
 twenty bonds ; of which, two hundred and sixteen have been fully ar- 
 ranged. Nine have been transferred to suit account, and are in process 
 of collection. Ninety-five remain in bond account. Of a portion of these, 
 the Bank has taken measures to enforce payment. The above statement 
 alludes to the year when the whole bond became due. 
 
 [No. 11] 
 
 STATEMENT OF SINKING FUND. 
 
 Statement showing the operation of the Sinking Fund, and the mode of 
 paying the public debt. 
 
 Balance on 1st October, 1841 $743,628 31 
 
 Profits of year ending 1st October, 1841 106,000 00 
 
 $849,628 31 
 Stock redeemable and int. payable during the year 1842 276,000 00 
 
 $573,628 31 
 Profits of year ending 1st October, 1842 110,000 00 
 
 $683,628 31 
 Interest payable in 1843 73,500 00 
 
 $610;128 31 
 
248 liEPORTS OF INVESTIGATING COMMITTEES. 
 
 $G10,I28 31 
 Profits of year ending 1st October, 1843 110 000 
 
 $720,128 31 
 Interest payable in 1844 _, 73,500 
 
 $646,628 31 
 Profits of year ending 2st October, 1844 110,000 
 
 $756,628 31 
 Stock redeemable and interest payable in 1845 314,125 
 
 $442,503 31 
 Profits of year ending 1st October, 1845 100,000 
 
 $542,503 B] 
 Stock redeemable and interest payable in 1846 349,750 
 
 $192,753 31 
 Profits of year ending 1st October, 1846 90,000 
 
 $282,753 31 
 Interest payable in 1847 46,000 
 
 $235,753 31 
 Profits of year ending 1st October, 1847 90,000 
 
 $326,753 31 
 Stock redeemable and interest payable in 1848 230,000 
 
 $87,753 31 
 Profits of year ending 1st October, 1848 80,000 
 
 $167,753 31 
 Interest payable in 1849 34,000 
 
 $133,753 31 
 Profits of year ending 1st October, 1849 80,000 
 
 $213,753 31 
 Profits of year ending 1st October, 1850 _. 78,000 
 
 $291,753 3: 
 
 Stock redeemable and int. payable in 1850, $225,000 > 947000 
 
 Interest payable in 1851 '_. 22,000^ ^^^,^()y} 
 
 $44,753 31 
 Profits of year ending 1st October, 1851, 75,000 
 
 $119,753 31 
 
 Stock redeemable and interest payable, 1 852 $2 1 3,000 
 
 Peduct balance in Sinking Fund 119,753 31 
 
 $93,246 69 
 
REPORTS OF INVESTIGATINO COMMITTEES. 249 
 
 [No. 12.] 
 Statement of 5 pei- cents, issued to South- Western Rail Road Bank. 
 
 Amount of 5 per cent. Stock issued for Stock in the South- } ^onn c\r\f\ 
 Western Rail Road Bank -..- \ ^^00,000 
 
 Amount received by the Comptroller General "from said" 
 Bank previous to Act of last Session, in payment of 
 dividends. The payment of the interest on the Stock 
 having been made out of Sinking Fund. This stock Y $20,000 
 has been held by the Comptroller General as part of 
 the Sinking Fund, but has never been transferred to 
 that account in Bank- _, 
 
 Amount received from the Bank on the" 
 reduction of the Shares held by the 
 State from 10,000 to 8,000— one-fifth, 
 and then cancelled 
 
 Amount received from the So. West. M. 
 R. Bank since Act of the last Sessson, 
 for dividends, and cancelled, 
 
 $50,000 
 
 8,337 50 
 
 $180,000 
 
 58,337 60 
 
 $121,662 50 
 
 Of this balance of $121,662 50, the South- Western R. R. 
 Bank still holds the sum of 
 
 Held by individuals, to whom the said Bank has sold stock, 
 
 To which, if we add the amount held for Sinking Fund,.. 
 
 $81,662 50 
 . 40,000 
 
 $121,662 50 
 . 20,000 
 
 Makes the sum said to be outstanding, -, $141 ,662 50 
 
 C. M. FURMAN, Cashier 
 Bank of the State of South Carolina. 
 
 [No. 13.] 
 
 STATEMENT OF THE FIRE LOAN. 
 
 General McDuffie sold 
 
 To an individual at 95, which netted 
 
 And sold to Baring, Brothers & Co. at 93, paya- 
 ble by instalments 
 
 Which netted 
 
 The balance of the Loan, 
 
 Was raised by the sale of 6 per cent. State 
 
 Stock, in this State 
 
 32 
 
 £ 
 15,500 
 
 217,500 
 
 £ 
 
 14,664 
 
 202,275 
 
 s. 
 6 
 
 6 
 
 233,000 
 217,000 
 
 216,939 
 
 450,000 
 
 • 
 
250 REPORTS OF INYESTIGATINO COMMITTEES. 
 
 The Bonds sold in Europe, produced in Charleston the 
 
 sum of -- $1,045,438 70 
 
 The 6 per cent, stock sold, produced the sum of 964,444 45 
 
 $2,009,883 15 
 Deduct this amount, which was carried to the account of > q ^^r, . - 
 
 interest and expense of State Loan ) ' 
 
 Leaving to the credit of the Loan for rebuilding the ) ^^ OOO 00 
 City of Charleston, ) ' ' 
 
 A part of the Loan was received in specie, but it was 
 principally drawn for by checks and drafts on New York 
 and on London, and current funds credited here. 
 
 The State Bonds were never hypothecated in Charleston- 
 The agents of the State, not being able to sell the Bonds 
 in New York, made an arrangement with the house of 
 Maitland, Kennedy «& Co. agents of the house of Reid, 
 Irving & Co. of London, to make an advance on de- 
 posit of Bonds, of- $300,000 
 
 When the Bonds were sold, this advance was repaid to 
 Reid, Irving & Co. by General* McDuffie, and Messrs. 
 
 Baring, Brothers & Co. the amount being £63,050 55. 5d. 
 
 £ s. d. 
 
 The expenses on this advance were 752 14 7 
 
 Deduct interest on funds in his hands 37 4 
 
 £715 10 7 
 
 The amounts paid to agents were, 
 
 To Judge Colcock for his expenses to Philadelphia and 
 
 New York, to negotiate the Loan and advance. $441 
 
 To General McDuf&e, to cover his expenses to New York 
 
 and to Europe, (incurred in negotiating the Loan,) 4,888 88 
 
 Sundry other expenses incurred for the printing of two 
 sets of Bonds for the transmission of Specie, sending 
 expresses to the Governor, and New York, to carry on 
 the Bonds and have them executed, 2,805 91 
 
 7,135 79 
 Amount transferred to interest and expenses 
 
 on State Loan, as before stated, $9,883 1 5 
 
 Deduct this sum, -- 7,135 
 
 $2,748 15 
 
 J 
 
REPORTS OF INVESTIGATING COMMITTEES. 251 
 FIRE LOAN. 
 
 The Bonds in Europe amount to the sum of £233,000 
 sterling, which, at ten per cent, premium, would require 
 for their settlement, in dollars,..- $1,139,343 33 
 
 The State 6 per cent. Stock sold, amounted to the sum of 964,444 45 
 
 $2,104,787 78 
 The interest on the above sums, viz : 
 
 On Sterling Bonds, ten per cent, premium, $57,525 1 1 
 On Six per cent. Stock,... •. 57,866 66 
 
 $115,391 77 
 The interest on the Bonds of the borrowers 
 
 from Fire Loan is about-- — 62,000 
 
 The interest on the balance of the fund not 
 
 loaned, but used by the Bank as capital, 
 
 say... - 5,108 23 58,500 
 
 $120,500 $120,500 
 
 In the above estimate, the rate of exchange has been fixed at ten per 
 cent, which is higher than it will cost (in all probability) to remit. 
 
 The interest on the later Bonds, taken under the Fire Loan, is fixed at 
 seven per cent ; so that the interest on the Bonds will amount to rather more 
 than the above estimate. 
 
 The fund, so far as it is not used for the original object of the Loan, 
 may be available to the State for more than 6 per cent, as by an enlarge- 
 ment of the capital of the Bank, it becomes the basis for a larger circu- 
 lation. 
 
 The loan is redeemable — one-half in twenty years, and one-half in thirty 
 years. 
 The amount to be paid above the $2,000,000, will be with 
 
 commission, say j-_ $130,000 
 
 Excess of interest for twenty years will amount to $ 1 00,000 
 
 " " " '• ten years, - 25,000 
 
 125,000 
 
 •- 
 
 $5,000 
 The redemption of the capital of Fire Loan is provided in the following 
 manner : In the amount of bonds taken for loans made under the Act 
 for re-building the city; the responsibility of the Bank for the funds re- 
 ceived by it, over and above the amount loaned to land owners, and there- 
 fore the whole means of the Bank, stand as security for the fund. 
 
252 BEPORTS OF INVESTIGATING COMMITTEES. 
 
 
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REPORTS OF INVESTIGATING COMMITTEES. 253 
 
 [No. 15.] 
 
 GENERAL SYNOPSIS 
 
 Of the operations of the Bank of the State of South Carolina. 
 
 From the institution of the Bank to the creation of the Sink- 
 ing Fund in 1821, it paid into the State Treasury as profits. 
 
 It has paid interest on State stocks and bonds, since the es- 
 tablishment of the Sinking Fund 
 
 It has redeemed State 6 per cent, stock, created under the 
 Act of 1820 
 
 There remains in the Sinking Fund, a balance of profits 
 amounting to 
 
 Showing that the Bank profits to 1st October, '41, have been 
 
 The interest on the capital 
 period, would amount to. _ 
 
 of the Bank during the same 
 
 If from this balance, there be deducted the in- 
 terest on the surplus revenue deposited with 
 the Bank of the State, say. -. $328,22 1 1 
 
 And interest on Fire Loan Funds held by it_ . 181,250 86 
 
 $592,001 ^ 
 
 1,644,682 33 
 
 800,000 00 
 198,206 52 
 
 $3,234,889 84 
 2,047,008 90 
 
 $1,187,880 94 
 
 509,471 96 
 
 There remains a nett profit, above 7 per cent, of $678,408 98 
 
 Upon the operations of the Bank, up to the 1st of Oct. last. 
 
 I have not computed interest upon that portion of the Sinking Fund 
 formed of profits of the Bank, as that fund was created by the Bank 
 itself 
 
254 REPORTS OF INVESTIGATING COMMITTEES. 
 
 (1841.) • 
 
 BRANCH AT COLUMBIA. 
 
 The Joint Committee appointed at the last Session of the Legislature, 
 to examine the affairs of the Branch Bank of the State, at Columbia, beg 
 leave respectfully to Report : 
 
 That, "in the discharge of the duties assigned them, they commenced 
 their labors early in May last, which were continued for several successive 
 days, and were again renewed during the last month, for a short period, 
 when they were finally closed. The cordial co-operation of the officers of 
 the Bank with the Committee in their investigations, and the prompt and 
 agreeable manner in which they furnished all the information called for 
 within their power, contributed very much to lighten the labors of the 
 Committee, and to facilitate a proper understanding of their duties. 
 
 The Committee have fixed the period when the Exhibit A, hereunto an- 
 nexed, was completed, as the point at which they propose to shew the con- 
 dition of the Institution, although their examination was extended to a 
 much later period, and they will find it necessary to remark upon some 
 matters that require notice since that time. 
 
 The document above referred to, will shew the general condition of the 
 Branch at the time it was completed ; and the Committee will now proceed 
 to make such remarks as have occurred to them as useful and proper. 
 
 This institution has no fixed permanent capital. It is entirely depend- 
 ent on the parent Bank for its means. Upon its indebtedness to this 
 Bank, together with the Treasury deposits which are placed in its custody, 
 are based all of its banking operations. This sum is fluctuating ; from the 
 best estimate we have been able to make, taking into consideration its con- 
 nection with the Treasury, (and this will be found, on examination, more 
 favorable to the latter,) it may be set down as the amount of its indebted- 
 ness to the parent Bank. The profits up to the date of the said Exhibit, 
 will be found to be $27,527 23, from which deduct all the expenses and 
 salaries, $5,492 23, which will'leave the nett profits $22,035. The sala- 
 ries of some of the officers have been considerably reduced during the last 
 year. Exhibit B. will shew the salary of each officer as now fixed. It 
 may be proper here merely to remark, that this is a matter regulated en- 
 tirely by the parent Bank, and for which it i» alone responsible. The con- 
 tingent expenses form so small an item, that they scarcely deserve to be 
 noticed seriously ; yet, even in this, some reform is expected. 
 
 It appears, from evidence furnished your Committee, that by a regula- 
 tion of the parent Bank, since the year 1835, four solicitors have each been 
 paid a salary of three hundred dollars by this Branch. It is difficult to 
 perceive upon what principle of economy such a regulation could have been 
 predicated. It would seem almost incredible, were not the evidence before 
 us, that such was the fact ; in some of the Circuits, it would be hazarding 
 but little to say that scarcely a litigated case in which the Bank was inter- 
 ested, had ever occurred. And it is clear, that with the slightest attention, 
 much more economical terms could have been obtained for the performance 
 of the same services, as subsequent events have fully proven ; and no one 
 has been found who has attempted to excuse this measure, much less to 
 justify it. This Branch earnestly urged the repeal of this regulation, and 
 desired the selection of its own Attorneys, and finally, on the 23d of July, 
 1840, passed a Resolution disapproving of the said regulations, which wa8 
 
 1 
 
REPORTS OF INVESTIGATING COMMITTEES. 255 
 
 transmitted to tlie parent Bank, and no action had upon it until sometime 
 in March last, when the said salaries were discontinued, and this Branch 
 left to select and pay its own Counsel. There must necessarily be a con- 
 siderable reduction in the annual expenses of the Branch from this new 
 regulation. After carefully examining all the branches of expenditure con- 
 nected with this Institution, your Committee do not perceive any matter 
 upon which they would recommend reduction. 
 
 Your Committee will now turn their attention to the debts due the 
 Bank, including notes discounted. Bonds and Drafts. These items form 
 the most important branches of enquiry which it becomes their duty to in- 
 vestigate, and necessarily required the greatest share of their labors and 
 diligence. Upon the soundness of these debts depend the security and use- 
 fulness of the Bank. Your Committee have availed themselves of all the 
 means within their reach, to obtain satisfactory information as to the real 
 condition of these debts ; and the result of this examination is, that the 
 Committee have no reason to believe that any of them are not well secured. 
 It would be welf to mention here, that the debt of John S. Lott & Co. of 
 $5,000, and a debt due by the Columbia Academy, are to be excluded from 
 the foregoing remarks, although they formed, nominally, a part of these 
 debts : both of them have heretofore been reported to the Legislature, with 
 their real condition, and both have been carried to the account of profit 
 and loss, at the end of the last fiscal year. Your Committee, however, 
 must be permitted to say, from a high sense of moral obligation, arising 
 out of the trust reposed in them, that their belief of the condition of these 
 debts, is predicated upon evidence not of the most satisfactory character, 
 and it is utterly impracticable, from the actual state of things, to obtain 
 anything like certain information, and at last, a great deal must be taken 
 upon hearsay information, Of these Notes, there is in suit and in judg- 
 ments the sum of $305 49, upon which no interest has been paid ; and of 
 the Bond debts, $12,000 are in judgment, upon which interest has been 
 paid. These debts are of long standing, and it is manifest there has been 
 culpable neglect in their collection somewhere. This is too palpable to be 
 questioned, and it is attempted to excuse it here, because of the defective 
 system of collection established by the parent Bank. This excuse cannot, 
 however, be urged any longer. The Board of Directors have passed a 
 Resolution requiring that all judgment debts shall be paid in full by the 
 first of January next ; and the Committee have received the strongest assu- 
 rance that this Resolution shall be rigidly enforced. It was ascertained, 
 in the course of their examination, that a portion of the debts of the Bank 
 was owing by persons resident out of the State, and that some of these 
 debts had been created by individuals who were at the time actually so resi- 
 dent beyond the limits of the State. The Committee believe these loans 
 are not in accordance with the object for which the institution was created, 
 or its true interests, and they are therefore of opinion that these debts 
 should be collected as early as practicable, and that no others of a like 
 character be hereafter created. 
 
 It will be seen, by reference to the Exhibit A, that there is but a small 
 amount of Bond debts due the Bank. It is said that all of these have 
 been created under special circumstances, and that the practice of loaning 
 upon Bond, has been for some time discontinued, as a part of the regular 
 business of the Bank, and that such is to be the line of conduct hereafter 
 to be pursued. « 
 
256 REPORTS OF INVESTIGATING COMMITTEES. 
 
 With a view to ascertain how long the debts of the Bank had been 
 standing, your Committee traced them back to the time of their creation 
 and found them to range from the year 1833 to the date of their examina- 
 tion. They found, also, that a large amount of interest on some of them 
 had been suffered to remain uncollected ; a part of this interest has, how- 
 ever, latterly been paid. Your Committee are -constrained to say that they 
 cannot approve of the administration of this portion of the aliairs of the 
 Bank, and were it not for the Resolutions lately adopted by the Board of 
 Directors, would feel themselves compelledj by a sense of duty, to recom- 
 mend some decisive action on the subject. Your Committee, however, are 
 gratified to believe that the action of the Directors will remedy the evil, and 
 supersede the necessity of the course above indicated. These Resolutions 
 require the payment of thirty per cent, on all the Bond debts, by the 
 month of April next, otherwise the Bonds are to be put in suit ; also, they 
 require ten per cent, to be paid on all Notes, at each successive renewal, 
 commencing on the 10th of October last, and on all Nol^s of long stand- 
 ing, one half will be required by the Return Day previous to the next 
 Spring Court. If these Resolutions shall be carried out in good faith, and 
 your Committee have entire confidence that they will be, little else will re- 
 main to be recommended on the subjects to which they are applicable. 
 
 It appears that on the 14th day of May last, the Directors of this 
 Branch were indebted to it, as Drawers, the sum of $99,915 82, and that 
 the officers, in like manner, are indebted the sum of $21,550 — making the 
 aggregate sum of $121,465 82; and that on the 22d November, 1841, the 
 Officers and Directors were liable, as endorsers, in the sum of $102,300 22. 
 Your Committee would submit the question whether these Officers and Di- 
 rectors have not obtained an undue proportion of the loans of the Bank, 
 and whether some practicable and useful measure might not be adopted, to 
 limit the amount they should be authorized to borrow. Your Committee 
 would not be understood as casting any suspicion on the security of these 
 debts ; nor do they believe that a change of the administration of the 
 Bank would produce a different state of things. If it be an evil, it is in- 
 herent in the system itself. 
 
 The suspense account grew out of the disastrous transactions of 1835. 
 It has been reported upon heretofore, to the Legislature, and it is only ne- 
 cessary here to remark, that no new item has been added to it, and it is 
 now carried to the account of profit and loss. 
 
 Your Committee, believing the information might be useful, have appen- 
 ded to their report, and made it a part of it, a statement, marked Exhibit 
 C, showing the nett profits and losses of the Bank, from the year 1815 
 down to the end of the last fiscal year. 
 
 In conclusion your Committee beg leave to add and submit the follow- 
 ing Resolutions : 
 
 Resolved^ That this Legislature approve of the Resolutions adopted by 
 the Board of Directors of the said Branch, requiring the payment of all 
 judgments by the first day of January next, as also the one-half of all 
 notes of long standing by the last of February next, and one-tenth of all 
 other notes at each renewal ; and recommend that the same be faithfully 
 carried into execution. 
 
REPORTS OF INVESTIGATING COMMITTEES. 257 
 
 Resolved^ That in the opinion of this Legislature, the delbts due to this 
 Bank by persons residing out of the State, ought to he collected as early as 
 may he practicable, and that no others of a like nature be created. 
 All of which is respectfully submitted. 
 
 L. BOOZER, 
 Chairman of Committee of Senate. 
 
 Z. P. HERNDON, 
 Chairman of Committee of House. 
 
 EXHIBIT A. 
 
 Statement of the Braiich Bank^ Columbia. 
 
 1841 
 May 10 
 
 Dr. 
 
 To amount due parent Bank 
 
 Discount account 
 
 Interest on bonds 
 
 Interest on biUs 
 
 Treasury 
 
 Deposits 
 
 Cr. 
 
 1841 
 May 10 
 
 By amount of notes discounted. 
 
 Bonds 
 
 Drafts on Charleston 
 
 Suspense account 
 
 Officers' salaries 
 
 Incidental expenses 
 
 Solicitors' salaries 
 
 Cash-_^ 
 
 $790,197 
 
 26,296 
 
 149 
 
 1,080 
 
 11,749 
 
 73,455 
 
 66 
 76 
 68 
 1^ 
 
 79, 
 
 11 
 
 
 $902,929 
 
 72 
 
 $725,707 22 
 
 42,319 53 
 
 3,700 00 
 
 11,044 22 
 
 4,900 00 
 
 292 23 
 
 300 00 
 
 114,666 52 
 
 $902,929 72 
 
 33 
 
258 REPORTS OF INVESTIGATING COMMITTEES. 
 
 EXHIBIT B. 
 
 Salaries of the Officers of the Branch of the Bank of the State, at Colum- 
 bia^ as now established. 
 
 President -$2,000 
 
 Cashier.-. _ 1,800 
 
 Teller — 1,500 
 
 Discount Clerk--- 1,600 
 
 Assistant and Out-Door Clerk--- 1,000 
 
 $7,900 
 
 EXHIBIT C. 
 
 Statement cf Nett Profits and Losses for each year ^ from 1815 ito 184 L 
 
 ToSOtliSept. 1815, Nett Profits - -.$12,383 10 
 
 « « 1816, do. do. -- 18,995 22 
 
 « « 1817, do. do. 19,791 76 
 
 « « 1818, do. do. 40,100 06 
 
 « « 1819, do. do. .-- 48,292 43 
 
 « « 1820, do. do. . 41,094 09 
 
 « « 1821, do. do. 35,773 55 
 
 « " 1822, do. do. 36,308 64 
 
 « « 1823, do. do. 1 1 35,999 76 
 
 « <' 1824, do. do. _ 36,241 17 
 
 « « 1825, do. do. 41,950 29 
 
 « « 1826, do. do. 43,996 80 
 
 « « 1827, do. do. 42,236 04 
 
 « " 1828, do. do. discount account, and interest 
 
 on bonds 47,801 33 
 
 « « 1829, do. do. do. do...- 45,851 80 
 
 « « 1830, do. do. do. do.--. 49,116 09 
 
 " " 1830, entire losses on notes and bonds 
 
 to date $7,389 86 
 
 « « 1831, nett profits 56,948 58 
 
 « " 1831, losses on notes and bonds 2,722 95 
 
 " " 1832, nett profits discount account, 
 
 and interest on bonds 51,607 09 
 
 « " 1833, do. do. do. do. 41,667 56 
 
 « « 1834, do. do. do. do. 45,700 46 
 
 « « 1835, do. do. do. do. 36,519 59 
 
 Losses on drafts, in 1834 -- 77,067 97 
 
 To30tliSept. 1836, nett profits 37,856 57 
 
 « " 1837, do. do. --- 37,021 44 
 
 « « 1838, do. do. 38,503 49 
 
 « « 1839, do. do. discount acc't, bills 
 
 and bonds 37,181 20 
 
 « « 1840, do. do. do. do. 30,857 16 
 
 " « 1841, do. do. do. do. 41,006 28 
 
 in full to date, on notes 17,041 21 
 
REPORTS OF INVESTIGATING COMMITTEES. 259 
 
 (1841.) 
 BRANCH BANK AT COLUMBIA— SECOND REPORT. 
 
 The Special Committee, appointed on the part of the Senate, to examine 
 the affairs of the Branch of the Bank of the State, at Columbia, to which 
 was re-committed the Report of the said Committee, and to which was re- 
 ferred the letter of F. H. Elmore, President of the said Bank, have consid- 
 ered the matters referred to them, and beg leave, respectfully, to Report: 
 
 That on the subject of the employment of Solicitors, as salaried Attor- 
 neys, by the parent Bank, the following sentence occurs on the fourth page 
 of the Report : " This Branch earnestly urged the repeal of this regula- 
 lation, and desired the selection of its own Attorneys, and finally, on the 
 23d of July, 1840, passed a resolution disapproving of the said regulation, 
 which was transmitted to the parent Bank, and no action had upon it until 
 some time in March last, when the said salaries were discontinued, and this 
 Branch left to select and pay its own counsel." 
 
 After the Report had been submitted to the Legislature, and ordered to 
 be printed, the President of the Bank had an interview with the Chairman 
 of the Committee, and complained of an error in the foregoing statement, 
 in relation to the time when the salaries of the Solicitors were discontinued 
 by the Directors of the parent Bank, alleging that this was done in Dec. 
 1840, and requesting that the alleged error might be corrected before the 
 printing of the Report. With this request your Committee did not feel au- 
 thorized to comply ; the Report had been submitted to the Legislature, 
 and ordered to be printed, and was, therefore, beyond the control of the 
 Committee ; and for this reason the correction was not made as desired. 
 
 The foregoing statement in the report, which is the subject of complaint 
 by the President of the Bank, was predicated upon information furnished 
 by the late President of the Branch, to your committee at the time of 
 their examination in May last, which was entirely satisfactory to them — 
 and your committee had no intimation of the alleged error until their 
 attention was directed to it by the President of the Bank, as before men- 
 tioned. 
 
 The communication of the President- of the Bank, contains the follow- 
 ing statement in reference to this alleged error : 
 
 "I was in Columbia in July, 1840, and attended a meeting of the Board 
 of the Branch Bank, brought the subject before them, and finding they 
 unanimously opposed the system, suggested the very resolution as indi- 
 cating their opinion, which is referred to in the report of the committee. 
 It was forwarded to the Board at the Parent Bank, but so far from there 
 being no action on it until March, 1841, the subject received a great deal 
 of attention — ^was referred to a committee — and finally, the Board infor- 
 mally instructed me to bring the subject before the Legislature, and to 
 endeavor to procure an alteration of the law which would enable us to 
 simplify the collection of our debts. The Committee of Ways and Means 
 of the House of Representatives and of Finance in the Senate, will bear 
 witness that their directions were at the last Session attended to by me. 
 A bill for the purpose passed two readings in the Senate, but was not 
 acted on in the House. Immediately upon its failure, I wrote in Decem- 
 ber, 1840, to the Board in Charleston, informing them of the fact, and 
 advising some immediate action. That Board promptly passed a Resolu- 
 tion dissolving the connection with ishe Solicitors, and informed them of it." 
 
260 BEPORTS OF INVESTIGATING COMMITTEES. 
 
 The difference, then, between the statement made to the Committe by 
 the late President of the Branch, (upon which the allegation in the Reporfc 
 is based,) and that contained in the communication of the President of the 
 Bank, is merely as to the time when the Directors of the Parent Bank 
 acted upon the Resolution of the Branch, disapproving of the employment 
 of the Solicitors; the former fixing it in March, 1841, the latter, in De- 
 cember, 1840. Your committee are satisfied that the statement of the 
 President of the Bank is strictly correct, but they are of opinion that it 
 is perfectly reconcilable with that made to the Committee by the late 
 President of the Branch. In fixing the time when the action took place, 
 he very naturally referred to the time the information was communicated 
 to him, and not when it actually took place. And your Committee can 
 very well perceive, that the Board in Charleston had acted in the matter 
 in December, and in fact the result of their action was unknown to the 
 President of the Branch, until March subsequent. There being, as your 
 Committee were informed, no document or record in the ofl&ce of the 
 Branch, of an ofl&cial communication from the Parent Bank to the Branch, 
 on the subject. 
 
 All of which is respectfully submitted. 
 
 L. BOOZER, Chairtnan. 
 
 (1841.) 
 BRANCH AT COLUMBIA— THIRD REPORT. 
 
 The Joint Committee appointed at the last session of the Legislature", 
 to examine the afiairs of the branch Bank of the State, at Columbia, to whoni 
 was referred the communication of the President of the Bank of the State, 
 in relation to the salaries of the solicitors, beg leave to report. 
 
 That in the report which this committee heretofore submitted to the 
 Legislature, they stated, that it appeared from evidence furnished your 
 committee, that by a regulation of the parent Bank, the branch at Columbia 
 had paid to four solicitors, an annual salary of three hundred dollars each, 
 since the year 1 835 ; that the branch desired to have the selection of its 
 own attorneys, and had earnestly urged the repeal of this regulation ; 
 and that finally, on the 23d July, 1840, the board of the branch Bank 
 passed a resolution expressing their disapprobation of said regulation, and 
 transmitted the same to the parent Bank ; but that no action was had 
 upon the subject by the parent board, until some time in March last, when 
 the salaries were directed to be discontinued, and the branch was left to 
 select its own attorneys. 
 
 In the communication referred to your committee, the President of the 
 Bank complains of so much of this statement, as relates to the time at 
 which the parent board acted upon the resolution of the branch, as being 
 calculated to do injustice to him and them. 
 
 The statement made by your committee, upon the point indicated, was 
 founded upon the following evidence : 1 st. a written statement furnished 
 to your committee about the middle of May last, by the late President of 
 the branch, from which the following is an extract : " The branch Bank 
 had not the right to choose its own attorney for collecting its debts, until 
 within a few weeks since ; and if there has been delay in collecting debts ^ 
 
I 
 
 REPORTS OF INVESTIGATING COMMITTEES 261 
 
 it has arisen from a defective system of collection, for which the branch ia 
 not responsible." 2d. A written memorandum made by the Chairman of 
 the committee on the part of the House of Representatives, at the time of 
 their examination in May, upon information then furnished, to the effect, 
 that the action of the parent Bank upon the resolutions of the branch, was 
 had in the " latter part of March last." 
 
 After the report of your committee was read to the Legislature, and 
 was ordered to be printed, the President of the Bank had an interview with 
 the Chairman of the committee, and requested them to alter their report 
 as mentioned in his communication. This request your committee did not 
 feel themselves at liberty to comply with, because they supposed they had 
 no right to have the report printed otherwise than as it had been read to the 
 Legislature ; that gentleman also addressed to the Chairman of the com- 
 mittee a communication upon the subject, in which he made the following 
 statement : " After taking my seat as President of the Bank, under my 
 election in Dec. 1839, my attention was drawn to this subject. I found 
 the year already begun, and the right (of the Solicitors) to their salaries 
 existing for that year. During the Spring, the subject was examined more 
 carefully, and the opinions of the branches sought. I was present in July, 
 1840, atifche meeting of the Board of Directors, when the subject was ta- 
 ken up. I then learned that they had been always averse to the system, 
 and desired it to be discontinued, and at my suggestion, they expressed 
 their opinions in the form of a resolution, which was sent to the board of 
 the parent Bank. I was instructed by the board, to endeavor to procure 
 a change in the law to suit our peculiar circumstances, and brought the 
 subject up before the Committee of Ways and Means, of the House, and 
 of Finance, in the Senate. The Senate sent a bill to the House making a 
 change, which was not acted on in the House, I immediately wrote to the 
 acting President in Charleston, and informed him of the fact, and en- 
 closed a resolution for their consideration on the subject, which the board 
 approved, and immediately passed, by which the employment of the soli- 
 citors, at an annual salary of three hundred dollars, was discontinued, and 
 they, respectively, were informed of the fact. The action of the board 
 was in December last. My impression is, that the branches were immedi- 
 ately furnished, but I will not say such is the fact, as I have not access to 
 my correspondence here, nor was any notice needed in fact ; for the only 
 material fact ig, that the end was put to the connection with the solicitors, 
 as salaried officers of the Bank, in December, 1840. They are entitled to 
 no salary after that date." 
 
 Your committee would remark in passing, that they think it was the 
 duty of the parent Bank to give notice to the branch, of the resolution to 
 which they had come upon this subject. 
 
 Evidence was laid before your committee, showing that the resolution 
 mentioned by the President, was adopted by the parent board on the 29th 
 of December, 1840, and communicated to the Attorney General on the 31st. 
 
 In a letter which has been laid before us, addressed to the Presihent of 
 the parent Bank by the present President of the branch, he says : " I do 
 not recollect precisely when we were first informed of the change, (in the 
 regulation relative to the employment of attorneys,) but am sure I had of- 
 ficial information of the fact before our notes were sent to suit, about the 
 15th of February last, as I acted under such information in discharging 
 that duty." This gentleman was at that time the Cashier of t\e branch. 
 
 Your committee are well satisfied, that all the gentlemen, whose state- 
 
262 REPORTS OF INVESTIGATING COMMITTEES. 
 
 ments upon this subject are referred to, have stated what they believe to 
 be correct, and have only to express their regret, that no official document 
 has been furnished, to fix with precision the time at which the resolution 
 of the parent board was made known to the officers of the branch. 
 All of which is respectfully submitted. 
 
 Z. P. HERNDON, Ch. Com. of the House. 
 
 (1841.) 
 
 BRANCH AT CAMDEN. 
 
 To the Honorable the Senate and House of Representatives of the State of 
 
 South Carolina. 
 
 The Joint Committee oi the two Houses appointed at the last session to 
 inspect and report upon the affairs of the Branch of the Bank of the State 
 of South Carolina, at Camden, beg leave to Report : » 
 
 That the Committee proceeded, early in the month of September last, to 
 perform the duty enjoined. The Committee, on a careful scrutiny, found 
 
 that the Specie on hand amounted to the sum of $ 709 47 
 
 Billsof other Banks 15,430 50 
 
 Notes of Ha7id Discounted^ to ivit : 
 
 Run to maturity $403,886 00 
 
 Protested 8,915 00 
 
 In suit 9,869 00 
 
 In judgment - 28,004 00 
 
 Total of Notes discounted $450,654 00 
 
 Bonds 52,987 62 
 
 The Assets and Liabilities of the Bank agreed with its monthly return, 
 ending the 31st August preceding the examination, allowitig for slight 
 changes, which the operations of a week would reasonably bring about. 
 
 The Bonds and Notes of hand due the Bank, from the best information 
 the Committee could obtain, after a careful examination, are well secured, 
 with the exception of a small note of hand of three or four hundred dol- 
 lars, which appeared doubtful. On the whole, the Committee was of 
 opinion that the Bank is in a sound and healthy condition, and that it 
 has been ably and faithfully conducted. It is proper to add that every 
 facility was cordially offered, that could aid the investigation. 
 
 JOHN BUCHANAN, Chairman, 
 
REPORTS OF INVESTIGATING COMMITTEES. 263 
 
 (1843.) 
 REPORT OF THE SPECIAL COMMITTEE 
 
 APPOINTED IN DECEMBER, 1842, TO INVESTIGATE THE CONDITION OF THE 
 BANK OF THE STATE, IN CHARLESTON. 
 
 To the Honorable the Senate and House of Representatives of the State of 
 
 South Carolina. 
 
 The Committee appointed by Joint Resolution of both branches of the 
 Legislature, and charged with an inquiry into the condition of the parent 
 office of the Bank of the State of South Carolina, at Charleston, respect- 
 fully report : 
 
 That they have given to the duties assigned them a minute and laborious 
 investigation, which was commenced on the 10th day of July, and con- 
 tinued, without intermission, until the 28th of the same month. During 
 this period the officers of the Rank furnished them promptly with such in- 
 formation, both verbal and documentary, as they called for, and contribu- 
 ted, in every way in their power, to aid the Committee and facilitate their 
 duties. 
 
 Exhibit A contains a general and correct representation of the condition 
 of the Bank, on the 1 0th July, 1 843. This document will vary in many par- 
 ticulars, from the corresponding document, which will be presented to you 
 in the Annual Report of the President ; a difference, however, which arises 
 exclusively from the different periods of investigation, as will appear from 
 their respective dates. Your Committee will now proceed to offer such 
 other documents, and make such remarks on them, as came under discus- 
 sion during their examination. 
 
 SPECIE. 
 
 Upon examination of this item, jjpur Committee found, in the hands of 
 the Cashier, gold coins, consisting of every variety now in circulation, 
 amounting to $208,439 44 
 
 Also, silver coins, amounting to 17,754 20 
 
 Amount of Specie in hands of Cashier $226,193 64 
 
 Amount of Specie in hands of Tellers 4,802 35 
 
 Total amount of Specie in Bank, July 10, 1843 $230,995 99 
 
 BANK NOTES ON HAND. 
 The Cashier produced Bills of the Bank of the State of South Carolina, 
 put up in packages, as counted by a committee of the Directors, which, upon 
 
 examination, your Committee found to be , $382,750 00 
 
 Cut Bills, as per Report of 11th and 18th June, 1832 1,943 50 
 
 Cut Bills, paid by the Cashier ■ 447 50 
 
 Bills of the Bank of Camden 2,750 00 
 
 Treasury Notes 200 00 
 
 Two dollar bills, (loose). >_ 200 00 
 
 Two dollar bills, marked A 2,000^^00 
 
 Two dollar bills, marked B 1,200*00 
 
 Total amount of Bank Notes in hands of Cashier $381,491 00 
 
264 REPORTS OF INVESTIGATING COMMITTEES. 
 Bank Notes in hands of Tellers $58,355 00 
 
 Total amount of Bank Notes on hand July 10, 1843 $449,846 00 
 
 BANK ESTATE. 
 
 Exhibit B, herewith filed, will show the real estate owned by the Bank, 
 together with the original cost and such expenses as have been incurred 
 thereon since the last report by a Committee of the Legislature. This 
 item is distinguishable from real estate received by the Bank in payment 
 of debts, as it consists strictly of purchases made by the Bank for Banking 
 purposes. 
 
 REAL ESTATE OWNED BY THE BANK, RECEIVED FOR 
 
 DEBTS, &c. 
 
 Exhibit C shows the transactions of the Bank under this head, since 1833, 
 together with the real estate on hand at the date of this Report. Your 
 Committee are satisfied that a Bank should never, if possible, allow its 
 funds to be diverted from the ordinary channels prescribed by sound 
 banking principles ; but so long as large loans are made upon mortgage of 
 property, the Bank will be under the necessity frequently, in order to avoid 
 heavy losses, in times of great depression, to become temporarily the owner 
 of property sold under foreclosure of its mortgages. Your Committe are 
 satisfied such has been the character of the transactions of the Bank under 
 this head. The amount is not larger than would reasonably be expected, 
 when reference is had to the large amount of the assets of the Bank se* 
 cured by this kind of property. 
 
 BANK NOTES ISSUED. 
 
 This subject necessarily embraces an extensive range of enquiry ; the 
 first of which, is to ascertain the amount of bills in circulation ; secondly, 
 the amount in Bank ; and thirdly, compare the issues with the specie on 
 hand. It will be seen by the General^tatement, that the amount of Notes 
 issued at Charleston, is $1,103,955 00 
 
 Notes issued in change 79,463 00 
 
 Notes issuedat Columbia „ ..-. 40,200 00 
 
 Total amount issued $1,213,618 00 
 
 Deduct amount of Notes on hand 382,750 00 
 
 Makes total amount in circulation $830,868 00 
 
 By comparing the circulation with specie, the ratio will be a fraction over 
 three to one. But this would not exhibit the true condition of the circula- 
 tion. In thirty-one years a very large amount has been lost, and will never 
 come against the Bank. And besides this, the Bank had of specie funds, 
 viz : Domestic and Foreign Exchange in New York and London, $287,- 
 889 34. The notes of the Bank in possession of the Branches are also to 
 be deducted from the liability of the Bank on this score. 
 
 Exhibit D. shows an elaborated statement of the impressions and issues 
 of Bills since the first of August, 1839. 
 
 BILLS AND NOTES DISCOUNTED. 
 
 The Committee required the production of every note, compared the 
 amounts and endorsers with the statement furnished by the Bank, and 
 found them to correspond. 
 
REPORTS OF INVESTIGATING COMMITTEES. 265 
 
 Among so many notes, amounting to the sum of $912,101 05, it could 
 not be expected that all were above suspicion. But your Committee, after 
 all the scrutiny which their knowledge of the parties, and such information 
 as they could obtain from others, enabled them to bestow, have come to the 
 conclusion, that the Discount list is as good as is ordinarily made by similar 
 institutions. The notes were all endorsed, and most of them based upon 
 planting interests or bona fide business operations. The Committee will 
 not say that these debts are all due by persons owning visible property ; but 
 where such consideration is wanting, the loans seem to have been made 
 upon good business character. Your Committee, therefore, believe that 
 the Directors have been judicious in their discounts, and that the State 
 has no cause of uneasiness on this head. 
 
 BONDS SECURED BY MORTGAGE. 
 
 The Committee required the production of every Bond and Mortgage, 
 compared the amounts and names of the sureties with the statement fur- 
 nished by the Bank, and found them to correspond. The Committee fur- 
 ther required a statement of these Bonds, classified into the several years 
 in which they became payable, the number of each year, the original 
 amount, present amount, and arrears of interest, due July 10th 1843. 
 The number of these Bonds your Committee find to be eighty-eight. One 
 fell due in 1834, one in 1835, two in 1836, two in 1837, nine in 1838, 
 eighteen in 1839, nine in 1840, fourteen in 1841, five in 1842, seven in 
 1843, and twenty not yet due. 
 
 The original amount of this list was-- _ ^ _.$826,315 06 
 
 Amount paid up to 10th July, 1843-__-..----_ 300,945 69 
 
 Amount due for principal 1 0th July, 1 843- __._.--_ $525,369 37 
 
 Arrears of interest due 10th July, 1843 67,187 03 
 
 Amount of principal and interest due 10th July, 1843, $592,556 40 
 
 Your Committee are satisfied that the loss on these debts has been 
 smaller than on other transactions of the Bank, and if the present list is 
 judiciously and firmly managed, and future loans cautiously made, the 
 benefit to the permanent interests of the State will well warrant the devo- 
 tion of a portion of its funds to this purpose. 
 
 Your Committee consider a portion of this debt doubtful, and a small 
 part, probably, irrecoverable, but the loans in such cases were made upon 
 mortgage of property, deemed by prudent men as ample at the time. 
 
 Your Committee observed that, in some instances, the Bank had made 
 loans upon mortgages of personal property, without the addition of per- 
 sonal security. Loss has resulted. They therefore strongly urge the inex- 
 pediency of this course, and suggest that in all cases where loans are 
 made upon a mortgage of personal property, personal security should 
 also be required. 
 
 BONDS, NOTES AND BILLS IN SUIT. 
 
 This item of the assets of the Bank is distinct from, and not included in, 
 the amount of debts carried to profit and loss. Although they have lost 
 their Bank shape, they are still looked upon as assets. 
 
 Your Committee required from the Cashier a full statement of tbe^e 
 debts, classified into the several years in which they were put in s!hit and 
 
 34 
 
266 REPORTS OF INVESTIGATING COMMITTEES. 
 
 judgment recovered ; original amounts, amounts now due, and arrears of 
 interest due to the 10th July, 1843 ; upon a minute examination of this 
 list, your Committee have come to the conclusion, that fully one half of this 
 debt will be lost to the Bank. 
 
 The amount of this item now due, is $205,321 35 
 
 Arrears of interest due the 10th July, 1843- _. 32,694 79 
 
 Amount of principal and interest due 10th July, 1843 $213,016 09 
 
 Your Committee recommend that some mode be instituted by which the 
 Bank may have always at hand a correct knowledge of the state of such 
 debts as are put in suit, that annual or semi-annual returns should be made 
 to the Bank by the Solicitors employed to sue the cases, giving a statement 
 of the condition of such debts. For the want of such a system, the Bank 
 is kept in ignorance of the true condition of the debts in suit, and your 
 Committee were embarrassed in their examination of this item of the state- 
 ment. Your Committee are further of opinion, that the amount of this 
 item should be reduced, by carrying to profit and loss so much thereof as 
 is certainly bad, in order that the amount claimed as assets of the Bank 
 may fairly represent aji available sum. 
 
 SINKING FUND. 
 
 This fund was originally created by the State to redeem the stock issued 
 for Internal Improvements. It was formed by accumulations from the 
 profits of the Bank, and received no other aid until 1839, when the sum of 
 $651,422 09, a portion of the amount received by the State from the Sur- 
 plus Revenue, was added to it. 
 
 Exhibit E, herewith filed, contains a statement of this fund from its 
 commencement to the 1st October, 1842, and shows a balance to its credit 
 of $679,863 54. 
 
 CONTINGENT EXPENSE ACCOUNT. 
 
 This item is made up of the current and incidental expenses of the 
 Bank, including salaries, fuel, insurance, travelling expenses, and such 
 other expenses as are necessary in such institutions. This item was cor- 
 rectly vouched, and amounts to the sum of $20,25 1 92. 
 
 FIVE PER CENTS. ISSUED TO SO. W. R. R. BANK. 
 
 ExmBrr G shows a statement of this Stock, the amount outstanding, 
 amount held by the South Western Rail Road Bank, amount held by indi- 
 viduals, amount held by the Bank of the State, amount held by the Comp- 
 troller, and by whom the interest is paid on each amount. 
 
 FIRE LOAN. 
 
 Exhibit H shows a statement of this Loan, including the negotiations, the 
 several issues, with the dates and rate of interest, and the amount paid on 
 the Bonds. The amount invested in Bonds and Mortgages is $1,086,556 50 
 
 Amount received on account of principal 55,039 88 
 
 Balance, for which the City is guarantor $1,031,514 62 
 
 The interest on these Bonds has been punctually paid by borrowers, 
 and more of the principlal debt would have been paid, had not the liberali- 
 ty of the Legislature extended the time of payment. The guarantee of 
 tJbe City secures the payment of these Bonds. The Bank has foreclosed 
 
REPORTS OF INVESTIGATING COMMITTEES. 267 
 
 mortgages to the amount of $167,687 50, and in every instance where in- 
 dividuals failed to bid enough to pay the mortgage, the city authorities 
 purchased and executed to the Bank the Bond of the Corporation for the 
 purchase money. 
 
 LOANS MADE BY THE STATE. 
 
 The Committee feel it their duty to call the attention of the Legisla- 
 ture to this subject, and submit Exhibit I, as a statement of the several 
 loans made by the State,^"eferring to the Acts creating them, the objects 
 for which they were created, and the times when they must be redeemed. 
 
 CASH FUNDS USED AS CAPITAL. 
 
 Exhibit K furnishes all the information requisite on this head. 
 The Capital proper of the Bank is derived from the State, and amounts? 
 to $1,156,318 V3 
 
 ^""l^^Ld^hrifsilte ^""'^'^ ^*^^'' ^'" \ ^^^^^""- - - ^^^'^^^ ^^ 
 
 Sinking Fund , 679,863 54 
 
 Balance of amount raised by Fire Loan 964,444 45 
 
 Amount received on Fir^. Loan Bonds 55,039 88 
 
 Amount of Capital, and cash funds used as Capital $3,055^666 35 
 
 This Exhibit shows the funds used as Capital each year, from the estab- 
 lishment of the Bank, in October, 1812, the gross annual profits, annual 
 losses, and annual nett profits. 
 
 STOCKS. 
 
 The Certificates of Stock held by the Bank, as part of its assets, were 
 produced and inspected by the Committee. Exhibt L, herewith filed, 
 shows a correct statement of all the Stocks, of every kind, held by the 
 Bank, with the dates of purchase, par value, and cost to the Bank. These 
 Stocks, like all others, are liable to fluctuation, and the State may gain or 
 lose by them, according to the times they are put in the market. 
 
 PROFIT AND LOSS ACCOUNT. 
 
 The amount carried to this account, from the establishment of the Bank 
 
 to October, 1841, is $458,657 85 
 
 In the year 1842, the amount carried was 6,585 21 
 
 In the year 1843, the amount carried was 25,243 86 
 
 Amount carried to Profit and Loss, to October, 1843 $490,486 92 
 
 Of this amount the Bank lost, by its Directors, at different 
 
 times, as drawers $100,154 64 
 
 And as indorsers 83,514 66 
 
 $183,768 72 
 
 And lost by individuals, other than Directors $306^718 20 
 
 This exhibits the gross afhount of Profit and Loss, not deducting sums 
 subsequently collected on the debts carried to that account. 
 
 JUDGMENTS ASSIGNED TO THE BANK. 
 
 This item consists of sundry judgments received from persons indebted 
 to the Bank, in payment of bad or doubtful debts. The balance due un- 
 der this head amounts to $19,525 00; and is considered good. * 
 
268 REPORTS OF INVESTIGATING COMMITTEES. 
 
 DEBTS DUE BY THE STATE. 
 
 Exhibit M shows a statement of the debts due by the State, distinguish- 
 ing each issue of Stock with a column of annual interest payable on each, 
 combined with a statement of th^ assets of the State, distinguishing each 
 item, to October, 1842. 
 
 SURPLUS REVENUE. 
 
 The Bank received on deposit from the Unitefl States, of this fund, the 
 
 sum of-.- -- $1,051,422 00 
 
 Of which was carried to the Sinking Fund. $651,422 09 
 Paid to the R. R. Company, subscription- _ ^,00,000 00 
 In Bank, and used as Capital 200,000 00-1,051,422 09 
 
 \ INDIVIDUAL DEPOSITS. 
 
 This item comprehends all other deposits than those made by the State 
 Treasury. Your Committee had no means of testing this account, except 
 by the monthly balances appearing on the books of the Bank, by which 
 the sum of $424,231 49, was claimed to be on deposit, on the 10th July. 
 1843. ^ ^ ^ 
 
 In conclusion, your Committee consider it their duty to say that they 
 found the affairs of the Bank in a very fair condition ; and, as far as they 
 were capable of judging, the present Directors are managing its concerns 
 with integrity* ~ 
 
 J. BERKLEY GRIMBALL, 
 \ Chairman on part of the Senate. 
 
 \ M. E. CARN, 
 
 \ Chairman on part of Ho. of Reps. 
 
REPORTS OF INVESTIGATING COMMITTEES. 
 
 269 
 
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270 REPORTS OF INVESTIGATING COMMITTEES. 
 
 B. 
 
 Bank Estate of the Bank of the State of South Carolina. 
 
 1818, 
 
 May 14, 
 
 July 20 
 
 Aug. 12 
 
 1832, 
 
 June, 
 
 1838, 
 
 June, 
 
 1838, 
 May 
 
 1843, 
 Oct. 1, 
 
 For Banking House on South side Broad-street.. 
 Do. do. Georgetown, for Branch Bank 
 
 Do. do. Camden, for do. 
 
 Do. 
 
 do. 
 
 Columbia, for 
 
 do. 
 
 Do. do. Charleston, for do. 
 
 Do. Cash for Building Vault, Portico, Desks, &c 
 
 Do. do. for Granite Front and other improvements 
 
 to Old Banking House 
 
 Do. do. for Lot and Buildings adjoining Banking 
 
 House in Columbia, purchased 
 
 By Cash from sale^ Banking House, 
 
 Georgetown..- $2,500 00 
 
 Do, Contingent Acc't for profit in Bank 
 
 of Charleston Stock 32,415 45 
 
 Do. Rent of Old Banking House placed 
 
 to this Account 1,455 00 
 
 Do. Balance. 66,608 08 
 
 $102,978 53 
 
 To Balance. 
 
 $18,000 00 
 3,273 47 
 7,000 00 
 
 4,000 00 
 
 45,000 00 
 17,378 42 
 
 5,826 64 
 
 2,500 00 
 
 $102,978 53 
 
 102,978 53 
 
 $66,608 08 
 
REPORTS OF INVESTIGATING COMMITTEES. 271 
 
 
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272 KEPORTS OF INVESTIGATINO COMMITTEES. 
 
 [Exhibit B.] 
 
 Statement of the Issues^ Impressions of Bills and Blank Taper of the Bank 
 
 of the State of South Carolina. 
 
 Denomination 
 of Bills. 
 
 
 No. of 
 
 Sheets. 
 
 Am't of 
 Issues. 
 
 Plate No. 2. 
 $100 
 
 On hand 1st August, 1839.- 
 
 1600 
 
 
 
 These remain. 
 
 
 Plate No. 3. 
 $10 
 
 On hand 1st August, 1830 
 
 700 
 700 
 
 
 
 Issued since, and prior to 1st June, '41 
 
 6005 
 
 Plate No. 3. 
 
 $5 
 
 On hand 1st August, 1839 
 
 6005 
 6005 
 
 
 
 Issued since, and prior to 1st June, 
 
 1841 1300 
 
 Issued since 1 st June, 1841 2000 
 
 On hand . 2705 
 
 $40,000 
 
 Plate No. 3. 
 2 
 
 On hand 1st August, 1839 
 
 4011 
 5004 
 
 9011 
 
 9011 
 
 
 
 Received in December, 1839. 
 
 
 
 Issued since, and prior to June, 1841, pay- 
 ment - 
 
 
 
 Charleston.-- 7600 
 
 Do. do. Columbia 1400 
 
 On hand- 
 
 
 Plate No. 2. 
 
 On hand 1st August, 1839 . 
 
 4816 
 5004 
 5004 
 
 14824 
 
 
 
 Received in December, 1839 
 
 
 
 Do. in April, 184K_ 
 
 
 
 Issued prior to 1st June, 1841, payment in 
 Columbia 2200 
 
 Issued prior to 1st June, 1841, Charles- 
 ton . 7500 
 
 Issued since June, 1841, payment in 
 
 Charleston 5000 
 
 On hand 124 
 
 20,000 
 
 Plate No. 3. 
 $100 k, $50. 
 
 Received in 1842 
 
 1000 
 1000 
 
 
 Remaining on hand-. ___. 
 
 
 
 
 
 Plate No. 2. 
 $20. 
 
 Received in 1841 
 
 2500 
 2500 
 
 
 Remaining on hand !__ 
 
 
 
 
 
 Plate No. 4. 
 $10. 
 
 Received in 1841 , 
 
 Issued since , 5000 
 
 On hand in Camden 1000 
 
 Do. do. Charleston 1500 
 
 Carried to next page. 
 
 7500 
 7500 
 
 200,000 
 
 
 260,000 
 
REPORTS OF INVESTIGATING COMMITTEES. 273 
 
 [Exhibit D, continued.] 
 
 STATEMENT OF ISSUES, &c. 
 
 Denomination 
 of Bills. 
 
 
 Number of 
 Sheets. 
 
 Amount of 
 Issues. 
 
 Plate No. 4. 
 
 $5. 
 
 Brought forward 
 
 Received in 1841 
 
 Issued since 9400 
 
 On hand in Columbia 600 
 
 10,000 
 10,000 
 
 $260,000 
 188,000 
 
 Plate No. 4. 
 
 $2 and $3. 
 
 Received in 1841 
 
 Issued since 9000 
 
 On hand in Columbia 1000 
 
 10,000 
 10,000 
 
 90,000 
 
 Plate No. 3. 
 $1. 
 
 Received in 1841 
 
 Issued since 6400 
 
 On hand in Columbia 5500 
 
 Do. in Camden-., 8900 
 
 Do. in Charleston 4200 
 
 Amount issued 
 
 25,000 
 25,000 
 
 25,000 
 $503,000 
 
 » 
 
 35 
 
274 REPORTS OF INVESTIGATING COMMITTEES 
 
 [Exhibit D continued.] 
 
 GENERAL STATEMENT OP ISSUES. 
 
 Balance of Bills of $1 and upwards, 1st June, 1841 
 
 Issues of $5, No. 3_ - ..._ 
 
 Do. " 1 " 2 _ 
 
 Do. " 10 " 4 _, 
 
 Do. " 5 " 4 
 
 Do. " 3 $2 4-. 
 
 Do. " 1 " 3.-- 
 
 CANCELLED. 
 
 1842, May 9-- 
 
 Aug. 27. 
 
 Sept. 9. 
 " 12- 
 " 19. 
 
 1843, May 19- 
 July 5.- 
 
 5,500 
 57,900 
 36,900 
 17,200 
 25,410 
 285 
 39,610 
 
 723,220 00 
 40,000 00 
 20,000 00 
 200,000 00 
 188,000 00 
 90,000 00 
 25,600 00 
 
 $1,286,820 00 
 
 182,865 00 
 
 $1,103,955 00 
 
 Balance of Bills under $1, on 1st June, 1841 
 
 Cancelled 27tli August, 1842 _. 
 
 " 9tli Sept. 1842--- 
 
 " 19th Sept. 1842 
 
 « 5th July, 1843. __ 
 
 $1,000 
 1,659 
 1,100 
 
 838 
 
 $84,060 00 
 
 40,597 00 
 
 $79,463 00 
 
 Balance of issues of $1 and upwards. 
 
 « " under $1 
 
 « " at Columbia 
 
 $1,103,955 00 
 79,463 00 
 30,200 00 
 
 Aggregate of Issues, 10 th July, 1843. 
 
 $1,213,618 00 
 
t 
 
 REPORTS OF INVESTIGATING COMMITTEES. 275 
 
 EXHIBIT E, 
 
 Statement of the Sinking Fund from its commencement to Ist October, 
 
 1842. 
 
 1822, October 
 
 1st, Profits 
 
 paid interest. 
 
 1823, October 1st, Profits 
 
 Paid interest. 
 1st. Profits 
 
 1824, October 
 
 I 
 
 Paid interest. 
 
 1825, October let, Profits. 
 
 Paid interest- 
 
 1 826, October 1 st, Profits 
 
 Paid interest. 
 
 1827, October 1st, Profits 
 
 Paid interest. 
 
 1828, October 1st, Profits 
 
 Paid interest- 
 
 1829, October 1st, Profits 
 
 Paid interest. 
 
 1830, October 
 
 1st, Profits 
 
 Carried forward. 
 
 120,072 18 
 39,617 73 
 
 80,454 45 
 113,207 61 
 
 193,662 06 
 56,945 07 
 
 136,716 99 
 116,350 58 
 
 253,067 57 
 61,783 72 
 
 191,283 85 
 115,042 96 
 
 306,326 81 
 70,819 82 
 
 235,506 99 
 70.500 00 
 
 306.006 99 
 74;646 35 
 
 231,360 64 
 75,000 00 
 
 306,360 64 
 84,983 33 
 
 221,377 31 
 113,802 95 
 
 335,180 26 
 83,928 95 
 
 251,251 31 
 112,000 00 
 
 363,251 31 
 85,766 14 
 
 277,485 17 
 112,182 04 
 
 38«,667 21 
 
276 REPORTS OF INVESTIGATING COMMITTEES. 
 (EXHIBIT E. Continued.) 
 
 Brought forward. 
 Paid interest 
 
 1831, October 1st, Profits 
 
 Paid interest. 
 
 1832, October 1st, Profits 
 
 389,667 21 
 86,814 53 
 
 302,852 68 
 120,000 00 
 
 Paid interest. 
 
 1833, October 1st, Profits. 
 
 Paid interest- 
 
 1834, October 1st, Profits 
 
 Paid interest. 
 
 1835, October 1st, Profits. 
 
 Paid interest 
 
 1836, October 1st, Profits 
 
 Paid interest. 
 
 1837, October 1st, Profits. 
 
 Paid interest. 
 
 1838, October 1st, Profits 
 
 Carried forward. 
 
 422,852 68 
 
 85,969 53 
 
 336,883 15 
 
 120,000 00 
 
 456,883 15 
 85,473 37 
 
 371,409 78 
 120,000 00 
 
 491,409 78 
 86,134 08 
 
 405,275 70 
 195,233 45 
 
 510,509 15 
 84,805 44 
 
 425,733 71 
 120,000 00 
 
 545,703 71 
 84,343 46 
 
 461,360 25 
 135,000 00 
 
 596,360 25 
 85,645 79 
 
 510,714 46 
 201,225 37 
 
 711,939 83 
 83,637 29 
 
 628,302 54 
 196,530 84 
 
 824,833 38 
 
REPORTS OF INVESTIGATING COMMITTEES. 277 
 [Exhibit E concluded.] 
 
 Brought forward. 
 Paid interest-. 
 
 1839, October 1st— Profits. 
 
 Paid interest. 
 
 Redeemed and paid 6 per cent, stock, 1820, 
 
 Added to Sinking Fund from Surplus Revenue, 
 
 1840, October 1st— Profits. 
 
 Redeemed 6 per cents. 1820. 
 
 Paid interest 5 and 6 per cent. Stock. 
 
 1841, October 1st— Profits. 
 
 Paid interest. 
 
 Redeemed 5 per cents. 1822. 
 
 1842, October 1st— Profits 
 
 Balance Sinking Fund, 1st Oct. 1842. 
 
 824,833 38 
 86,774 99 
 
 738,558 39 
 210,000 00 
 
 948,058 39 
 91,455 55 
 
 856,602 84 
 798,795 96 
 
 57,806 88 
 651,433 09 
 
 709,228 97 
 110,000 00 
 
 819,228 97 
 1,204 04 
 
 818,024 75 
 74,396 62 
 
 743,628 31 
 106,000 00 
 
 849,628 31 
 69,764 77 
 
 779,863 54 
 200,000 00 
 
 579,863 54 
 100,000 00 
 
 679,863 54 
 
278 REPORTS OF INVESTIGATING COMMITTEES. 
 
 1^ 
 
 
 
 ^^^ 
 
 r^ 
 
 •!:§ 
 
 
 d »^ 
 
 ^ 
 
 IB 
 
 ^^ 
 
 &5 
 
 Si 
 
 II 
 
 1^ 
 
 ^ 
 
 tio 
 
 ill 
 
 C3 
 
 O 
 
 l> S3 P 
 
 ftS ^ 
 
 02 
 
 2 s a 
 
 o 2 2 
 
 Ph Ph f^ 
 
 -2^ ^ 
 
 O CD -^ O 
 lO O 00 O 
 
 t^ CD »0 O 
 CO -!*< ^ O 
 
 CO o^o^o^ 
 lO J>- (>? -^ 
 
 1 r^ 
 
 ' p 
 
 P &D 
 
 «:§ 
 
 t:! P 
 '^ if w 
 
 ^ o "^ 
 
 c3 i-i^ 
 
 
 .^^ ^ ^ -^ 
 
 ^H O tJ "73 'Ti 
 
 2 'o 'o 'OJ 
 
 p 
 
 o a i; i{ 3 
 
 B 
 
 ^ 
 
 9 <=> 
 
 ^ s 
 ^^ 
 
 <D rO 
 
 P P 
 c3 <V 
 
 . 6 
 
 Ph.2 3 
 
 Cb 
 
 < 
 
 < 
 
 o 
 
 1^ 
 
 o 
 
 03 O rt 
 
 cj ^ P tiO 
 
 <D S .1-1 
 
 ^ Vd -tS a* 
 
 ^ io to O 00 ^ 
 
 1-^ ;5; ^ >o »o ^ 
 
 O 00 00 00 00 ^ 
 
 ^ 00" 
 
 2S? 
 
 00 
 
 ^ 
 
 
 •^ "^ O to GO C^ OQ 
 
 O c^ oi oi CO CO a> 
 
 l^ 00 00 00 00 00 -TJ 
 
 o 
 
 PR 
 
 XO o o o o o 
 
 CO O O O lO o 
 
 o o o o o? o 
 
 CO O O O CO o 
 
 iq^ o o^ o^ cq^ o^ 
 co" o" o" o^ ^ o" 
 crs »o o ^-H -^ o 
 
 — 1 CQ CO ^ o 
 
 goo o 
 H P=< P=< cS p:^ JB 
 
REPORTS OF INVESTIGATING COMMITTEES. 
 
 279 
 
 EXHIBIT (H.) 
 
 Statemejit of the Fire Loan. 
 
 ItibS I General McUutiie sold in London to an individual, at 
 95 per cent 
 
 Which netted __. £14,664 6s. 5d. 
 
 He also sold to Baring, Brothers & 
 Co. at 93 per cent, payable in in- 
 stalments 
 
 Which netted 202,275 
 
 Nett proceeds of £233,000 sold in Europe, 2 16,939 6 5 
 
 1840 The 13alance of the Loan, amounting to 
 
 Was raised by the sale of State 6 per cents, sold in 
 Charleston, interest payable there 
 
 The Bonds sold in Europe produced in Charleston the 
 sum of 
 
 The 6 per cents, sold produced the sum of 
 
 Deduct this sum carried to credit of interest and ex- 
 penses on State Loan 
 
 The interest on the Bonds in Europe amounts, annu- 
 ally, to the sum of £n,650 
 
 Commission at 1 per cent 116 10 
 
 This sum, with Exchange at 8^ per cent, will amount, 
 in Dollars, to 
 
 Equal to 5 42 f d. per cent. 
 
 £15,500 
 
 217,500 
 
 233,000 
 217,000 
 
 450,000 
 
 1,045,438 70 
 964,444 45 
 
 $2,009,883 15 
 9,883 15 
 
 $2,000,000 00 
 
 £11,766 10 
 $56,740 67 
 
280 REPORTS OF INVESTIGATINa COMMITTEES. 
 
 EXHIBIT (H.) Continued. 
 Six 2^c?' Cents. Fire Loan. 
 
 1839. 
 November, 
 December, 
 
 1840. 
 January. 
 February, 
 March, 
 April, 
 May, 
 June, 
 July, 
 August, 
 September 
 
 6 per cents, sold 
 do. " do. 
 
 do. 
 do. 
 do. 
 do. 
 do. 
 do. 
 do. 
 do. 
 do. 
 
 do. 
 
 do. 
 do. 
 do. 
 do. 
 do. 
 do. 
 do. 
 do. 
 do. 
 
 Credited by the Bank. 
 
 $24,838 77 
 2,000 00 
 
 92,487 27 
 71 
 53 
 30 
 49 
 19 
 
 4,698 00 
 
 7,590 84 
 
 23,985 28 
 
 165,748 
 
 61,911 
 
 4,970 
 
 33,315 
 
 19,388 
 
 $440,834 38 
 523,610 07 
 
 $964,444 45 
 
 [Exhibit H continued.] 
 
 Sterling Five per cent. Bonds sold in Europe. 
 
 1838. 
 September... 
 
 October 
 
 December 
 
 1839. 
 
 January, 
 
 February 
 
 March 
 
 April 
 
 June 
 
 July 
 
 September. . . 
 
 Received during this Month. 
 Received during this Month. 
 Received during this Month. 
 
 Received 
 Received 
 Received 
 Received 
 Received 
 Received 
 Received during this 
 
 during this 
 during this 
 during this 
 during this 
 during this 
 during this 
 
 Month. 
 Month. 
 Month. 
 Month. 
 Month. 
 Month. 
 Month. 
 
 Six per Cents as per Statement. 
 
 Deduct this sum carried to Interest and 
 Expenses, State Loan 
 
 $168,048 62 
 
 56,000 00 
 
 145.207 71 
 
 317,485 04 
 219,668 41 
 25,305 37 
 1,600 00 
 11,818 00 
 49,893 33 
 50,412 22 
 
 1,045,438 70 
 964,444 45 
 
 2,009,883 15 
 9,883 15 
 
 $2,000,000 00 
 
REPORTS OF INVESTIGATING COMMITTEES. 281 
 
 K. 
 
 Statement of Capital and Income of tJie Bank of tlie State of South 
 
 Caroliiia. 
 
 Capital t 
 
 Rate 
 
 Am't Carried. 
 
 Rate 
 
 
 •Year and Funds used 
 
 Gross Profits 
 
 of 
 
 to Profit 
 
 of 
 
 Nett income. 
 
 as Capital. 
 
 
 Profits. 
 
 and Loss. 
 
 Loss. 
 
 
 1814* 255,900 14 
 
 3,325 21 
 
 1 85 
 
 
 
 3,325 21 
 
 1815 * 338,807 14 
 
 48,900 71 
 
 16 34 
 
 
 
 48,900 71 
 
 18161* 444.973 59 
 
 63,022 69 
 
 16 08 
 
 
 
 63,022 69 
 
 1817 
 
 * 722,879 05| 76,507 91 
 
 13 06 
 
 
 
 76,507 91 
 
 1818 
 
 * 1,052.886 07 
 
 110.738 07 
 
 12 47 
 
 4,900 00 
 
 46f 
 
 105,838 07 
 
 1819 
 
 * 1,372^260 60 
 
 126,383 95 
 
 11 14 
 
 18,790 00 
 
 1 37 
 
 107,593 95 
 
 1820 
 
 1,196,220 65 
 
 100,287 37 
 
 8 38 
 
 
 
 100,287 37 
 
 1821 
 
 1,196,220 65 
 
 96,447 38 
 
 8 06 
 
 9,922 00 
 
 83 
 
 86,525 38 
 
 1822 
 
 1,196,220 65 
 
 121,042 18 
 
 10 11 
 
 970 00 
 
 08 
 
 120,072 18 
 
 1823 
 
 1,304,799 30 
 
 113,207.61 
 
 8 67 
 
 
 
 113,207 61 
 
 1824 
 
 1,361,289 26 
 
 123,325 58 
 
 9 06 
 
 6,975 00 
 
 51 
 
 116,350 58 
 
 1825 
 
 1,420,233 70 
 
 132,176 88 
 
 9 30 
 
 17,133 92 
 
 1 20f 
 
 115,042 96 
 
 1826 
 
 1,466,422 59 
 
 115,184 72 
 
 7 84 
 
 44,684 72 
 
 3 04f 
 
 70,500 00 
 
 1827 
 
 1,465,975 62 
 
 122,693 81 
 
 8 37 
 
 47,693 81 
 
 3 25 
 
 75,000 00 
 
 1828 
 
 1,439,318 73 
 
 127,240 37 
 
 8 83 
 
 13,437 42 
 
 93 
 
 113,802 95 
 
 1829 
 
 1,448,163 15 
 
 125,485 89 
 
 8 66 
 
 13,485 89 
 
 93 
 
 112,000 00 
 
 1830 
 
 1.476,147 32 
 
 130,480 27 
 
 8 83 
 
 18,298 23 
 
 1 24 
 
 112,182 04 
 
 1831 
 
 1,497,703 93 
 
 148,126 93 
 
 9 89 
 
 28,126 93 
 
 1 85 
 
 120,000 00 
 
 1832 
 
 1,535,321 62 
 
 140,925 65 
 
 9 21 
 
 20,925 65 
 
 1 36 
 
 120,000 00 
 
 1833 
 
 1,570,575 64 
 
 148,455 90 
 
 9 45 
 
 28,455 90 
 
 1 81 
 
 120,000 00 
 
 1834 
 
 1,604,396 29 
 
 148,271 13 
 
 9 24 
 
 43,037 68 
 
 2 68 
 
 105,233 45 
 
 1835 
 
 1,623,515 37 
 
 167,685 69 
 
 10 32 
 
 47,685 69 
 
 2 93| 
 
 120,000 00 
 
 1836 
 
 1,658,612 34 
 
 165,111 72 
 
 9 95 
 
 30,111 72 
 
 1 78i 
 
 135,000 00 
 
 1837 
 
 2,162,543 33 
 
 201,225 37 
 
 9 30 
 
 
 
 201,225 37 
 
 1838 
 
 2,776,577 90 
 
 196,530 84 
 
 7 07 
 
 
 
 196,530 84 
 
 1839 
 
 13,637,760 45 221,319 45| 
 
 6 08 
 
 11,319 45 
 
 31 
 
 210,000 00 
 
 1840 
 
 13,676,121 14 
 
 182,526 11 
 
 4 96 
 
 28,657 33 
 
 74| 
 
 153,869 44 
 
 1841 
 
 14,133,435 67 
 
 236,517 64 
 
 5 72 
 
 24,046 51 
 
 58 
 
 212,471 13 
 
 1842 
 
 13,970,740 02 
 
 217,354 63 
 
 5 47 
 
 6,585 21 
 
 16f 
 
 210,769 42 
 
 * The first six years the gross amount received during the year is here stated ; the ac- 
 tual Capital during the year, was less, (Sup. 110 and 181 of Bank Compilation) interest 
 calculated on the latter. 
 
 tin these years the fire loan is included. On the Bonds the interest is 6 per cent, per 
 annum, less than the rate of Bank interest. The amount so invested not available a» 
 ordinary Capital, and the expense of management paid by the Bankv 
 
 36 
 
282 
 
 REPORTS OF INVESTIGATING COMMITTEES. 
 
 EXHIBIT L. 
 
 Statement of stocks held by the Bank of the State of South Carolina. 
 
 Date of 
 Purchase. 
 
 Description of Stock. 
 
 Par value. 
 
 Cost of 
 Stock. 
 
 98,600 00 
 
 98,600 00 
 
 49,300 
 
 00 
 
 49,300 00 
 
 147,900 
 
 00 
 
 147,900 00 
 
 4,108 
 
 00 
 
 4,108 OQ 
 
 4,000 
 
 00 
 
 4,000 OQ 
 
 2,000 
 
 00 
 
 2,000 oa 
 
 169,400 
 
 00 
 
 169,400 78 
 
 179,448 
 
 78 
 
 179,448 78 
 
 30,000 
 
 00 
 
 32,250 00 
 
 2,350 
 
 00 
 
 . 2,538 00 
 
 393 
 
 71 
 
 423 23 
 
 10,700 
 
 00 
 
 11,556 00 
 
 804 44 
 
 868 79 
 
 983 
 
 33 
 
 1,052 16 
 
 1,283 
 
 33 
 
 1,373 16 
 
 495 
 
 65 
 
 532 47 
 
 2,628 
 
 98 
 
 2,681 56 
 
 2,000 
 
 00 
 
 2,040 00 
 
 6,666 66 
 
 6,866 66 
 
 2,500 00 
 
 2,575 OO 
 
 1,000 
 
 00 
 
 1,000 00 
 
 2,300 
 
 00 
 
 2,300 00 
 
 1,500 
 
 00 
 
 1,500 00 
 
 800 
 
 00 
 
 720 00 
 
 286 
 
 62 
 
 266 50 
 
 2,700 
 
 00 
 
 2,565 00 
 
 39,963 
 
 93 
 
 38,365 37 
 
 37,250 
 
 00 
 
 35,387 50 
 
 10,000 
 
 00 
 
 9,200 00 
 
 2,000 
 
 00 
 
 1,860 00 
 
 1,340 
 
 71 
 
 1,250 21 
 
 123 
 
 70 
 
 113 32 
 
 313 
 
 78 
 
 298 09 
 
 '3,395 
 
 56 
 
 3,295 69 
 
 163,780 
 
 44 
 
 162,878 71 
 
 3,200 
 
 00 
 
 1,984 00 
 
 5,741 
 
 41 
 
 3.559 67 
 
 - 4,784 
 
 06 
 
 2,966 11 
 
 3,320 
 
 48 
 
 2,058 69 
 
 1.308 
 
 20 
 
 811 08 
 
 600 
 
 00 
 
 372 00 
 
 1835. 
 1839. 
 
 1840. 
 Jan. 
 
 Aprl. 4 
 1841, Mch 2 
 1840, Sept 30 
 
 1832. 
 July 
 Feby 
 May 
 Aug. 
 Sept. 
 
 1833, Apl. 
 " May 
 
 1834, Jan. 
 " Aug 
 
 1835 "' " 
 
 Bank of Charleston stock, 986 Shs, 
 Bank of Charleston stock, 986^ " 
 
 State 6 per cent stock. 
 State 6 per cent stock. 
 State 6 per cent stock. 
 State 6 per cent stock. 
 
 1836, 
 
 6 
 11 
 Mch. 3 
 " 1 
 
 7 
 5 
 
 State 
 State 
 State 
 State 
 State 
 State 
 State 
 State 
 State 
 State 
 State 
 State 
 State 
 State 
 
 " June 
 
 1837, Oct. 
 
 1838, July 13 
 
 1839, Apl. 16| State 
 
 1840, Sept 2!State 
 
 1841, Apl. 16lState 
 " Mch 5 1 State 
 
 Oct. 14 State 
 State 
 State 
 State 
 State 
 State 
 State 
 State 
 
 1843, Jan. 
 
 Feb. 
 May 
 .July 
 
 1839. 
 May 
 May 
 Oct. 
 
 Nov. 
 
 5 per cent stock. 
 5 per cent stock . 
 5 per cent stock . 
 5 per cent stock- 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock . 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 5 per cent stock. 
 
 State 3 per cent stock - 
 18, State 3 percent stock- 
 22 State 3 per cent stock. 
 11 [State 3 per cent stock-. 
 
 1830, May 13 State 3 per centstock. 
 
 183 I.Aug. 29 1 State 3 per cent stock-. 
 
REPORTS OF INVESTIGATING COMMITTEES. 283 
 
 EXHIBIT L. Continued. 
 
 Date of pur- 
 chase. 
 
 Description of Stock. 
 
 Par value. 
 
 Cost of 
 stock. 
 
 1632, July 2 
 " Aug. 24 
 « Dec. 7 
 
 1833, Apl. 15 
 " May 15 
 
 " July 15 
 " July 16 
 
 1834, Jan. 30 
 
 1835, Jan. 23 
 " " 23 
 " June 26 
 
 1837, Oct. 27 
 
 1838, May 29 
 " July 13 
 
 1839, May 20 
 " Nov. 26 
 
 1840, Mch 2 
 " Dec. 4 
 
 1841, Oct. 13 
 " Nov. 8 
 
 1842, Oct. 26 
 
 1836. 
 1841, May 
 
 1835. 
 1836. 
 
 1837. 
 
 State 3 
 State 3 
 I State 3 
 ! State 3 
 State 3 
 State 3 
 State 3 
 State 3 
 State 3 
 State 3 
 State 3 
 State 3 
 State 3 
 State 3 
 State 
 State 
 State 
 State 
 State 
 State 
 State 3 
 State 3 
 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 per cent 
 
 stock, 
 stock 
 stock 
 stock, 
 stock 
 stock 
 stock 
 stock, 
 stock, 
 stock, 
 stock, 
 stock, 
 stock, 
 stock, 
 stock, 
 stock, 
 stock, 
 stock, 
 stock, 
 stock, 
 stock, 
 stock. 
 
 Lou. Cin. & Ch. R. R. & S. W. R. R. 
 Bank stock, 400 shares subscribed, 
 40 shas. taken for debt, & payt. on it, 
 
 219 ii a a a a 
 
 40 shas. taken for U. S. Bank stock. 
 
 Commercial Bank stock, received 
 
 from Assignees of Finn 
 
 Paid for six shares increased stock, 
 
 Bank of United States stock, re- 
 ceived for debt 32 shares 
 
 Received for debt 44 shares.' 
 
 Deduct reed, for 44 shas. R. R. Bank 
 
 16 83 
 
 176 95 
 
 767 61 
 
 300 00 
 
 725 40 
 
 300 00 
 
 2,473 78 
 
 1,750 00 
 
 3,135 56 
 
 415 44! 
 
 87 15 
 51 35 
 
 145 55 
 5,254 46 
 3.830 74 
 4^480 42 
 
 910 36 
 5,526 89 
 
 361 48 
 
 538 11 
 
 2,792 93 
 667 60 
 
 53,662 76 
 
 •40,000 00 
 
 4,000 00 
 
 * 21,900 00 
 
 4,000 00 
 
 69,000 00 
 
 3,200 00 
 4,400 00 
 
 10 43 
 
 109 70 
 
 475 91 
 
 189 00 
 
 449 74 
 
 186 00 
 
 533 53 
 
 89 37 
 
 1,944 04 
 
 249 26 
 
 50 00 
 
 30 81 
 
 87 33 
 
 3,257 76 
 
 2,298 44 
 
 2,688 25 
 
 546 00 
 
 13 
 
 227 73 
 
 330 93 
 
 1,731 61 
 
 407 23 
 
 3,316 
 
 32,960 75 
 
 40,000 00 
 
 2,366 95 
 79 
 00 
 
 11,114 
 4,000 
 
 67,481 74 
 
 336 25 
 150 00 
 
 486 25 
 
 3,904 00 
 5,280 00 
 
 9,184 00 
 4,000 00 
 
 5,184 
 
 00 
 
284 REPORTS OF INVESTIGATING COMMITTEES. 
 EXHIBIT L. Concluded. 
 
 Pate of pur- 
 chase. 
 
 Description of Stock. 
 
 Par value. 
 
 Cost of 
 Stock. 
 
 1840, Aug. 12 
 
 18d,Nov. 8 
 1843, Jan. 5 
 
 Bonds Lou. C. & Char. R. R. Co. 
 13 of £500 each at, 444 
 
 28,888 88 
 
 Val. without 
 Premium. 
 
 Sterling bonds payable in London 
 
 State & R.R. bonds £11,7001 52,222 25 
 
 State &R.R. bonds 1,250| 5,555 56 
 
 Deduct not yet charged. 
 
 27,444 44 
 
 Paid inclu- 
 ding Prem. 
 
 m7,777 77 
 
 44,395 25 
 4,714 39 
 
 49,109 64 
 852 27 
 
 $48,257 37 
 
 EXHIBIT M. 
 
 Statement of the debts due by the State of South Carolina, on \st October, 
 
 1842. 
 
 Description of Debt. 
 
 Amount. 
 
 Annual inter- 
 est. 
 
 193,530 35 
 250,000 00 
 300,000 00 
 10,000 00 
 141,662 50 
 600,000 00 
 
 5,805 91 
 
 12,500 00 
 
 15,000 00 
 
 600 00 
 
 7,083 12^ 
 36,000 00 
 
 Three per cent stock -- 
 
 Pive per cent stock of 1824 
 
 Five per cent stock of 1826 
 
 Six per cent Randolph, of 1 826 
 
 Five per cent S. W. R. R. Bank, 1838 
 
 Six per cent L. C. and C. Rail Road, 183 _ . 
 Fire loan of $2,000,000, and the Surplus rev- 
 enue, amounting to $1,051,422 09. 
 
 T/ie Assets of the State on the \st October, 1842, viz: 
 
 Bank of the State for original capital $1,1 56,3 1 8 48 
 
 « « " for the sinking fund 680,509 39 
 
 « " " for five per cent stock of do 27,015 84 
 
 « " " for balance of Surplus Revenue 200,000 00 
 
 « " " for cash to Treasury 89,763 43 
 
 « " " for Fire Loan 2,000,000 00 
 
 Bond of South Carolina Canal and Rail Road Co. for 100,000 00 
 
 Interest on same, at 5 per cent, from 1st April, 1832. 
 
 8,000 shares in L. C. and C. Rail Road Company 600,000 00 
 
 Same shares in S. W. Rail Road Bank 200,000 00 
 
 L. C. and C. R. R. Co. for balance of advance on subscription. .258,786 54 
 
 Interest on same at 6 per cent, from 1st March, 1842. 
 
 Miscellaneous, (Sheriffs, Tax Collectors, Hamburg, &c.)_ 16,615 00 
 
REPORTS OF INVESTIGATING COMMITTEES. 285 
 
 (1843.) 
 REPORT OF THE SPECIAL JOINT COMMITTEE ' 
 
 ON THE BRANCH OF THE BANK OF THE STATE OF SOUTH CAROLINA, AT 
 
 COLUMBIA. 
 
 The Special Joint Committee appointed at the last session of the Legis- 
 lature to examine into the condition of the Branch of the Bank of the 
 State of South Carolina, at Columbia, beg leave to report : 
 
 That in pursuance of their appointment, they have performed the duty 
 assigned to them, and commenced their examination, first, by an inquiry 
 as to the number of the officers, their duties, and salaries. The business of 
 the said Branch Bank is conducted by a President, Cashier, Discount 
 Clerk, Teller, and Assistant Clerk, with salaries, in the whole, amounting 
 to ($7,500) seven thousand five hundred dollars. Your Committee was 
 under the impression that by a different arrangement of the duties attach- 
 ed to each department and a new organization of the several offices, the 
 whole routine of business could be as efficiently conducted, by lessening the 
 number of officers to four, and thus effecting a reduction of ($1,000) one 
 thousand dollars in the amount paid for salaries. With this view they 
 submitted the proposition to the President of the Branch, and invited 
 from him an expression of opinion on the proposition presented by your 
 Committee. The result satisfied them of their correctness on this point, 
 and the concurrence of the President in their opinion, convinced them 
 that the proposed reduction might be well made, without any prejudice to 
 the interest of the institution. Your Committee, therefore, recommend 
 that the President and Directors of the mother Bank be requested so to 
 modify and arrange the duties of the several officers of this Branch, that 
 the whole business may be conducted by four, with a reduction of ($1,000) 
 one thousand dollars in the sum total of salaries. 
 
 On the 1st October, 1843, which was the commencement of the present 
 fiscal year, by the return of this Branch to the Parent Bank, it appears 
 that the amount of notes discounted, as returned on 30th September, 
 
 1843, was - $828,350 37 
 
 Amount of Bonds due Branch 56,59S 59 
 
 " " Drafts 18,370 00 
 
 " " Drafts protested 3,500 00 
 
 '• " Oflicers' Salaries 7,683 23 
 
 " " Incidental and contingent expenses 1,767 21 
 
 " '• Cashonhand __ 47,979 88 
 
 $964,244 28 
 Of the Notes making the above amount, there was then 
 
 in suit $61,920 00 
 
 The doubtful debts included in the said sum 
 
 were $ 3,860 00 
 
 The Incidental and Contingent account was increased the past year far 
 beyond the ordinary expenditure, by reason of a considerable outlay both 
 for repairing and improving the Banking house. 
 
 The liabilities of the Branch, on the same day, were as follows ; 
 Due Parent Bank, -(which is to be regarded as the capital 
 
 of the Branch) $814,315 21 
 
 Due Treasury ^5.561 93 
 
286 REPORTS OF INVESTIGATING COMMITTEES. 
 
 Due for personal deposits 71,536 63 
 
 Interest on Notes discounted 45,817 36 
 
 Interest on Bonds 4,659 55 
 
 Interest on Bills discounted 2,353 60 
 
 $964,244 28 
 
 Amount of Interest on Notes discounted $45,817 36 
 
 " Bonds 4,659 55 
 
 " Bills.- 2,353 60 
 
 $52,830 51 
 
 Deduct Salaries $7,683 23 
 
 Incidental and Conting't exp- 1,767 21 9,450 44 
 
 Leaves $4'5,380 07 
 
 Which may be regarded as the profits of this Branch for the past year. 
 
 Your Committee made a diligent and close examination of the state of 
 the indebtedness of the Directors and Officers of this Branch, and find 
 that they are indebted as drawers of Notes discounted to the amount of 
 $138,810, and as indorsers, $110,448. Your Committee deem it proper 
 to state that the notes making the said sums are abundantly secured, so 
 far as they were able to ascertain from their personal knowledge of the 
 parties, and the representations of the President in relation to them. 
 
 Your Committee made a full examination of the Bonds due the Branch, 
 and, on this head, beg leave to report that they found some of them stand- 
 ing since the year 1833, and no payment made beyond the interest. Your 
 Committee cannot forbear the expression of opinion, that too long indul- 
 gence has been extended on obligations of this nature. Besides the im- 
 policy of drawing from circulation funds, which, by active discounts would 
 yield increasing profits, they cannot conceive it consistent with the true 
 wisdom of Banking principles to abstract from constant employment the 
 effects of the institution, and reducing the debts due to a position in which 
 they may be regarded as stationary. Nor should it be forgotten that the 
 Banlj was established for the general accommodation of the whole com- 
 munity, and the more rapid and active the employment of its means, 
 the greater its facilities for extending aid and relief Your Committee 
 would, therefore, . recommend that the Branch should be instructed to 
 collect its old Bonds, and as the amount of the indebtedness of this char- 
 acter is not large, there is no apprehension that the required payment of it 
 will cause even inconvenience to the said obligors. 
 
 Your Committee, from their examination, believe that all the debts due 
 this Branch, (with the exception of those reported as doubtful,) are well se- 
 cured ; that it has been conducted with fidelity and integrity ; and the 
 high character of the gentlemen entrusted with its chief management, is 
 the surest guarantee that the importance of the trust confided to them will 
 be carefully watched and protected. 
 
 Your Committee, in closing their report, beg leave to state, that their 
 examination was aided by the Pre^dent of the Branch, who, at their in- 
 vitation, gave his attendance, and responded to all their inquiries in a be- 
 coming spirit of candor. Every disposition to make a full disclosure of 
 
REPORTS OF INVESTIGATING COMMITTEES. 287 
 
 the condition of tlie institution, was manifested with a courtesy that much 
 facilitated their investigation. 
 
 All which is respectfully submitted. 
 
 FRANKLIN J. MOSES, 
 
 Chairman of Senate Committee. 
 
 Concurred in. 
 
 Columbia, Dec. 1, 1843. 
 
 EDWARD G. PALMER, 
 
 Chairman House Committee. 
 
 (1843.) 
 REPORT OF THE SPECIAL JOINT COMMITTEE 
 
 ON THE CONDITION OF THE BRANCH OF THE BANK OF THE STATE, AT CAMDEN. 
 
 The Joint Committee of the Senate and House of Representatives to 
 examine the affairs of the Branch of the Bank of the State at Camden, 
 beg leave to report. That on the 20th of June last, all the members of the 
 Committee met at Camden for the purpose of performing the duties as- 
 signed them. The Committee take pleasure in bearing testimony to the 
 courtesy, promptitude and frankness with which they were assisted in the 
 discharge of these duties by the President and other officers of that 
 Branch of the Bank. 
 
 The result of the examination was a thorough conviction on the minds 
 of your Committee of the perfect soundness of its affairs, and that it has 
 been intelligently and faithfully conducted, both by its Officers and Direc- 
 tors. Every debt due to the Bank was rigidly scrutinized, and the bill, 
 note or bond, by which it was evidenced, examined, and all were found to 
 be in the proper and most approved form. The solvency of the debtors 
 of the Bank was made a subject of close examination. The result was 
 highly favorable to the character of this Branch of the Bank for vigilance 
 and caution. 
 
 The following statement presents a general view of the debts due to the 
 Bank on the 31st of May, 1843, which was twenty days previous to the ex- 
 amination : 
 
 Notes discounted $386,793 27 
 
 " protested 9,321 62 
 
 " in suit-__ 13,751 00 
 
 " in judgment ..-. 26,526 93 
 
 $436,392 82 
 Amount secured by Bond 51,836 85 
 
 Making an aggregate of. _ . -$488,229 67 
 
 Exclusive of interest on suspended paper, notes in suit and in judgment, 
 and on Bonds. Of this whole amount, there are but two small debts at all 
 doubtful, (one of $270 and another of $410,) both, there is good reason to 
 hope, will be ultimately collected. 
 
 The assets of the Bank, on the 31st May last, were as follows? 
 
288 REPOKTS OF INVESTIGATING COMMITTEES. 
 
 Amount Specie in the vault $ 1,184 12 
 
 " Notes of other Banks including $18,339 75 of 
 
 the mother Bank 33,453 75 
 
 " Notes of Virginia Banks 65 00 
 
 " Notes of North Carolina Banks 16 00 
 
 $34,718 87 
 This added to the above stated amount of judgments and bonds and 
 notes receivable, makes an aggregate of available means (exclusive of inter- 
 est due) to the amount of $522,948 54. 
 
 The indebtedness of the Camden Branch of the Bank at the same date 
 was as follows : 
 
 Amount due the Mother Bank for Capital furnished. $475,292 13 
 Amount due on account of individual deposits 35,769 33 
 
 $511,061 46 
 
 The clear profits of this institution for the fiscal year preceding the 
 
 examination, was $23,505 84, being less than the profits of the preceding 
 
 years ; but not less, it is believed, than the ratio of decline in the profits of 
 
 banking capital, generally, in this State. 
 
 The following synopsis will give a view of the profits in the Branch Bank 
 at Camden, and of the rate of decline for the four preceding years : 
 
 In 1841 the clear profits were $24,916 05 
 
 " 1840 " " " 24,458 80 
 
 " 1839 " " " 24,107 33 
 
 " 1838 " " " 27,214 16 
 
 Your Committee were pleased to note that the accommodations of the 
 Bank were as generally difi"used as was perhaps practicable among the citi- 
 zens of the surrounding country. There were but few large debts due to 
 the Bank. The great mass of its securities was for small amounts ; thus 
 multiplying the number of the individuals who had participted in its behe- 
 fits and favors. The system of doing business that prevails, is by bills and 
 negotiable notes on short time, and drawn according to commercial forms 
 and usages. There are now but seven debts that are secured by bond, and 
 the Committee were informed that no bond has been taken for money loan- 
 ed by the Bank, since September, 1840. 
 
 Suppressing the names of the obligors, the following statement will ex- 
 hibit the debts due by bond : 
 
 1. A Bond originally for $5,000, executed the 15th April, 1835: 
 
 balance now due $335 20 
 
 2. A Bond of the same obligor, and of the same date : balance 
 
 due 10th February, 1840 - -.3,578 37 
 
 3. A Bond executed the 28th July, 1834, on which the balance, 
 
 due 30th Sept, 1842, is 10,939 20 
 
 4. A Bond executed 30th September, 1836, on which the ba- 
 
 lance, due 30th September, 1842, was -. 5,109 42 
 
 5. A Bond executed the 27th June, 1839, on which the balance, 
 
 due on the 30th Sept. 1842, was 4,088 13 
 
 6. A Bond executed 30th March, 1840, on which the balance, 
 
 due on the 30th Sept. 1842, was... 11,976 53 
 
 7. A Bond executed the 30th Sept. 1840, on which the amount 
 
 due on the 30th Sept, 1841.. was .„. 15,810 GO 
 
REPORTS OF INVESTIGATING COMMITTEES. 289 
 
 The debts thus secured by Bonds are believed to be safe, and 
 make an aggregate (exclusive of interest) of $5 1 ,836 85 
 
 Some of these Bonds, particularly those of an older date, have JDcen re- 
 duced by payments. But your Committee are of the opinion, that on the 
 most of these debts the indulgence has been sufficiently extended, and that 
 payment ought to be required by the Bank as early as is practicable, with- 
 out creating unnecessary distress. 
 
 All of which is respectfully submitted. 
 
 J. P. DICKINSON, Chairman House Committee. 
 
 (1845.) 
 
 REPORT OF THE INVESTIGATING COMMITTEE 
 APPOINTED IN 1844. 
 
 To the Honwable the Senate and House of Rep'esentatives of the State of 
 
 South Carolina. 
 
 The Committee charged with the investigation of the condition of the 
 Bank of the State at Charleston, beg to submit the following statement: 
 A quorum of the joint Committee not having met at the expected time, in 
 strictness, perhaps, this may not be considered regularly a report. But a 
 short time before the session of the Legislature, such members of the 
 Committee from both Houses, as happened to be in the city of Charleston, 
 felt it their duty to make such examination as the smallness of their num- 
 bers and the shortness of time would permit. In consequence the members 
 present directed their attention more particularly to the movements of the 
 Bank, since the investigation of the last Committefe, and the verification of 
 such items of the debits and credits as most particularly call for inspec- 
 tion, believing that the general policy and history of the institution have 
 been amply developed in the various reports of previous Committees. 
 
 The general condition of the Bank on the 17th November last, is shewn 
 in exhibit A : which varies of course from the annual statement presented 
 by the officers of the Bank, as it is of a different date. To some of the 
 particulars of this account the attention of the Legislature is now re- 
 quested. 
 
 BANK NOTES ISSUED. 
 
 The exact amount of outstanding issues which the Bank will ever be 
 called upon to discharge, it is of course impossible to ascertain with any 
 degree of accuracy. Large amounts must have in various modes been de- 
 stroyed, and in fact the loss of circulation is one of the most important 
 sources of profit to the Banks of issue. 
 
 In connection with this branch of the subject, your Committee beg to 
 suggest the propriety of some change in the mode of keeping the blanks, 
 and the accounts of issues. At present all the books and vouchers, of this 
 important item are under the control and kept by the officers of the Bank. 
 Your Committee would recommend the adoption of some check, external of 
 the Bank., by which its own account could be tested. By making it the 
 duty of the Comptroller General to retain the plates and deliver the blanks 
 when demanded to the order of the Cashier, the account could easily be 
 verified, and the operations of the Bank would be not at all incommoded. 
 
 37 • ' 
 
290 REPORTS OF INVESTIGATING COMMITTEES. 
 
 DISCOUNT ACCOUNT, &c. 
 
 The amount sliewn under this head is necessarily very small, as it ex- 
 hibits the operations only between the 1st of October, (when the accounts 
 were struck, and a large amount carried to the sinking fund,) and the 15th 
 of November. 
 
 SINKING FUND 
 
 The amount of the Sinking Fund is larger than that set forth in the an- 
 nual Cashier's return, for the same reason, that the account last named is 
 smaller. As the exhibit is of a later date, it represents the transfer as al- 
 ready made, and swells the total of this item. 
 
 INDIVIDUAL DEPOSITS. 
 
 The amount of individual deposits, including all monies on deposit, other 
 than those of the Treasury, is taken from the books of the Bank, and ad- 
 mits of no other practical test. 
 
 BILLS AND NOTES DISCOUNTED. 
 
 The Committee required the production of all the bills and notes set 
 down among the assets of the Bank, and proceeded to verify them, as far as 
 their time permitted. As far as the Committee, either of their own know- 
 ledge,''or from the information of others, could be informed of the condition 
 of the parties, this portion of the debt of the Bank seemed to be well se- 
 cured. As a matter of course, among bills to so large an amount, from so 
 many persons scattered over a large space of country, there were some of 
 which full information could not be obtained, but of the general character 
 of the debt, they are prepared to report favorably. It was satisfactory to 
 find that much of this portion of the loan has been and habitually is in 
 small sums, upon business paper, promptly paid, and much to the accommo- 
 dation of borrowers of limited means. 
 
 Of the amount stated under this head the sum of fifty thousand five 
 hundred and fifty eight dollars and seventy-three cents, ($50,558 73) is 
 upon stock notes. A list of these debts and of the stocks pledged as their 
 security is annexed in exhibit B. 
 
 BILLS AND NOTES IN SUIT. 
 
 At the time of the examination the amount of this item was ninety-four 
 thousand eight hundred and five dollars thirty-eight cents, ($94,805 38.) 
 Doubtless a large portion of this debt will ultimately be realized, and in 
 the management of some of the cases, credit is due to the officers of the 
 Bank, for their diligence in securing in various shapes the Bank from loss. 
 But your Committee regret that the information upon this point does not 
 possess the accuracy so large a sum necessarily demands. They beg to 
 urge the necessity of compelling from the agents of the Bank, a periodical 
 report upon all cases in their hands, so that information on this point may 
 always be readily had. To efiect this a system difierent from any hitherto 
 employed must be adopted. To group together the cases now scattered 
 over every docket in the State, to collect at one or at most three points, the 
 information now to be sought in each and every district, to retain the causes 
 
REPORTS OF INVESTIGATING COMMITTEES. 291 
 
 of action so as to be producible at the exact time and place they may be 
 wanted, without interfering with the promptness of suit, at any other place, 
 are among the effects to be desired. For this purpose it will be sufficient 
 to obtain an agreement on the part of the borrowers to acknowledge ser- 
 vice of process in those districts where the Bank and its branches are lo- 
 cated, should it become necessary to put their accounts in suit. Nor will 
 this, in general, operate as a hardship to the borrowers, but on the contrary* 
 will go far to obviate an indisposition on the part of the direction, to put 
 out funds at points distant from their offices, and prevent distinctions which 
 are odious, although necessary in practice. With these recommendations, 
 leave is requested to report a Bill to carry into effect the views above ex- 
 pressed. 
 
 They would further recommend that all such debts as are ascertained to 
 be bad, should at once be carried to the profit and loss account, so that 
 claims which no 'longer possess value, may not appear as among the availa- 
 ble assets of the institution. 
 
 BONDS SECURED BY MORTGAGE. 
 
 The amount due upon securities of this class, as appears from exhibit, 
 was four hundred and sixty-six thousand six hundred and forty-nine dol- 
 lars, sixty-five cents, ($466,649 65 :) but of this, thirty-five thousand seven 
 hundred and twenty dollars eighty-three cents, ($35,720 83,) has been paid 
 at one of the branches, but was not credited as yet on the original bonds, in 
 possession of the mother B^nk at Charleston. 
 
 The Bonds were produced for the inspection of the Committee, and on 
 comparison with the list furnished by the Bank, were found correct. Some 
 of them being in suit at the time, were verified by the receipt of the agent 
 of the Bank, in whose charge they had been given for that purpose. 
 
 As so few original transactions have taken place under this head since 
 the last investigation, the Committee have not much to remark. Within 
 the last four years, but very few loans have been made on such securities. 
 Within that time, many Bonds and Mortgages, it is true, have been re- 
 ceived by the Bank, but they were taken in security, payment or adjust- 
 ment of claims which had arisen in other ways, and consequently cannot 
 be considered as primary loans. Attention has been directed to the steady 
 withdrawal of such portions of the debt as have been long outstanding, and 
 the preservation of this account in such amounts as will meet the interests 
 of the State, and enable the Bank to meet any unforeseen emergency. 
 
 SPECIE. 
 
 The Committee found upon examining this item, in the hands of the 
 Cashier, as appeared by weight and counting : 
 
 Gold Coin and Bullion $241,084 
 
 Silver 26,322 
 
 Copper Coins 1,250 268,606 
 
 In the hands of the Tellers, Coin and Bullion 14,299 
 
 $282,905 
 Of the above the Gold Bullion in Cash'r's hands was 55,882 
 
 In Tellers 13,080 68,962 
 
 Since the Act of Assembly of 1 843, establishing the office of Assayer, 
 Bullion has found its way in large sums to Charleston, as ameans^f remit- 
 
292 REPORTS OF INVESTIGATING COMMITTEES. 
 
 tance from the Gold Districts, of tins and the adjoining States, and is taken 
 bj the Bank, at such rates as will pay the expenses of transportation coin- 
 age, &c. 
 
 BANK NOTES ON HAND. 
 
 On the day of examination, the Bank notes on hand, in possession of 
 
 .the Cashier, was--_ -. 149,733 56 
 
 Cut Bills, paid as per report of 1842 1,943 50 
 
 Paid under Act of Assembly, afid by order of Board 285 00 
 
 $151,962 06 
 In hands of Tellers 74,280 00 
 
 $226,242 06 
 The amounts set forth under this and the preceding head, vary slightly 
 from the same items in the exhibit. This occurred in consequence of the 
 examination of the cash having occurred on the 25th of November, in- 
 stead of the 1 7th, (the date of the exhibit) and in the "meanwhile a change 
 in this item must necessarily have taken place. The count was checked 
 upon the Bank balance of that day, which was five hundred and nine thou- 
 sand one hundred and forty-seven dollars six cents, (509,147 06.) 
 
 Coin and Bullion, 282,905 00 
 
 Bank Notes 226,242 06 509,147 06 
 
 HAMBURG AND GEORGETOWN AGENCIES. 
 
 The sum of two thousand and six hundred dollars ninety-two cents, 
 remains as the balance of debts often before reported. The amounts 
 were, originally, much larger, and have been reduced by late collections to 
 the amount here stated. 
 
 REAL ESTATE. 
 
 A purchase of. Real Estate, to the amount of seven thousand five hun- 
 dred dollars, has been made by the Bank since the last investigation. The 
 lot in question had been leased by a debtor of the Bank, and extensive 
 and valuable improvements put upon it. Adjoining the premises was the 
 property under mortgage to the Bank, and which it was finally compelled 
 to take in adjustment of the claim. For the full control and proper use 
 of this property, the possession of the lot recently purchased, was abso- 
 lutely requisite, to prevent great fall in the value of that already owned. 
 The Bank purchased the additional land and buildings for the sum above 
 named, and has now closed a treaty for a re-sale of the whole property. 
 
 STOCKS. 
 
 A statement of the stocks held by the Bank, will appear in exhibit C, 
 hereto annexed. Upon the books of the Bank, these stocks stand in the 
 sum of four hundred and forty-nine thousand one hundred and four dollars 
 forty -four cents, (449,104 44.) They were vouched for by the production 
 of the certificate of stock, scrip or bonds, except in the case of Sterling 
 Bonds, in the hands of Messrs. Hambro & Sons, whose letter of acknowl- 
 edgment was submitted to the Committee. Of these assets, sixteen shares 
 in the Commercial Bank of Columbia, and three hundred and thirty-nine 
 in the Rail Road, were taken from assigned estates, or in payment of debts 
 
REPOKTS OF INVKSTlGATINa COMMITTEES. 293 
 
 deemed doubtful or difficult to recover in any other way, and forty of the 
 last named were taken in exchange for the United States Eank stock, of 
 which the Bank was at one time the holder. 
 
 As to the sums invested in this class of securities, your Committee would 
 suggest the impolicy and impropriety of a banking institution locking up 
 for any length of time so large a portion of its funds in the capital of 
 other institutions. It is making the prosperity of the Bank depend upon 
 the degree of integrity, skill or good fortune, with which may be conducted 
 the affairs of other bodies over which the Legislature has no right of con- 
 trol or even examination. It is virtually making other persons than those 
 elected by the Legislature, the directors of the Bank and administrators 
 of the funds of the State. The State is placed in the position of a private 
 stockholder, without the advantages of examining the- condition of the cor- 
 porations with which its interests are involved, and without a voice in the 
 selection of its agents, except at second hand, through middle men, not 
 appointed with a view to this trust, in opposition to the whole spirit and 
 design of our institutions. A conversion of much of this stock into a 
 more active capital, would enable the Bank to grant facilities and extend 
 accommodations, which, of late, it has been compelled to curtail, in conse- 
 quence of the necessity it was under of making provision to meet the pay- 
 ment of the public debt. It is taken for granted that such investments 
 do not furnish legitimate capital upon which to base banking operations, 
 and if it be the policy of the State to preserve its sinking fund, its accu- 
 mulations and resources, its provision for debt and surplus revenue, in this 
 form, it is evident the whole arrangement might easily be effected, through 
 its Comptroller or Treasurer, or other officers, without interposing the com- 
 plicated and expensive machinery of a Bank, to produce so simple a result. 
 The subject is recommended to the attention of the Legislature. 
 
 Under this caption there are two items, to which, as they have accrued 
 since the last investigation, and are among the most important movements 
 since that time, the special attention of the Legislature is directed. They 
 are classed among the shares of the South Carolina Rail Road Stock and 
 Bonds of the Georgia Rail Road and Banking Company. To each of 
 these subjects, a separate section is given. 
 
 SOUTH CAROLINA RAIL ROAD STOCK. 
 
 The Committee report that in the course of the early part of last summer, 
 shares in the above company, to the number of eight hundred and sixty-four, 
 were purchased and are still held by the Bank. As a general rule, your 
 committee apprehend a purchase of this description, to so large an amount, 
 or for the purpose of speculation, would be an act of alarming tendency, if 
 suffered to pass unnoticed. It is admitted that the system of attempting 
 to increase the profits of the Bank, by stock-jobbing, would not meet the 
 approval of the Legislature. It would be fraught with so many evils, 
 would give temptation and opportunity for so much partiality, oppression 
 and fraud, as would be revolting to the moral sense of our community. 
 To sanction such a proceeding, therefore, it is requisite that such a case be 
 made out, as will exempt this particular instance from the censure incident 
 to others of its class." 
 
 To explain the reasons assigned for this movement, your Committee beg 
 to refer to the fourth clause of the A. A. of 1843, page 260, entitled "An 
 Act to provide for the payment of a portion of the Public Debt," by which 
 
294 REPORTS OF INVESTIGATING COMMITTEES. 
 
 it is made the duty of the President and Directors of the Bank to provide 
 for the payment of the debt of 182G, amounting to three hundred thousand 
 dollars. A portion of this debt had been paid in the year 1844. leaving a 
 balance to be redeemed in January, 1846, of two hundred and twenty-five 
 thousand six hundred and seventy-seven dollars thirty-one cents, (225,677- 
 31.) In making provision to meet this amount when demanded, it became 
 necessary to adopt one of several alternatives. Either to hoard the amount 
 in specie or its equivalents, to discount paper which could, with certainty, 
 be called in at the time specified, or to invest in stocks readily convertible. 
 To the first was objected, the heavy loss to which the Bank would be sub- 
 jected by the non-accrual of interest upon its withdrawn capital. The 
 second has, in practice, been found a resource upon which reliance to the full 
 amount can never bt; placed, and, besides, the Bank was realizing its re- 
 sources at a season of the year when the business of the country does not 
 require so large an amount of capital as at other periods, and the loans, if 
 made at that time, would become payable at a time when active capital is in 
 most demand. The Bank had exhausted the foreign and home market of 
 all our own State stocks and bonds, that could advantageously be purchased, 
 and under these circumstanses, the board decided to invest their spare 
 funds in the mode now under review, as the method most eligible for reap- 
 ing a profit and preserving a rapid convertibility. The operation, in a 
 pecuniary point of view, promises to be highly profitable to the State, as it 
 will have secured, within seven months, two dividends upon the shares, and 
 the prices paid for them being much below their present market value, a 
 large gain, it is expected, will be made in their sale. The Committee sub- 
 mit the matter to the action of the Legislature. 
 
 GEORGIA RAIL ROAD AND BANKING COMPANY. 
 
 The next item in the Stock list, is in the shape of Bonds of this Company, 
 being a loan to them in the sum there set down. It might have been treat- 
 ed of under the head of Loans to Corporations ; but as it is in the form of 
 disposable Bonds, and so appears among the Bank assets, it will be here 
 treated of 
 
 At the first glance, the amount and manner of the loan, seemed to your 
 Committee to require full investigation. A loan of one hundred thousand 
 dollars to a foreign corporation, was of course calculated to excite remark ; 
 close attention was consequently given to the subject, and ample explana- 
 tions were required of all the circumstances connected with the trans- 
 action. 
 
 The money was advanced for the purpose of securing a direct communi- 
 cation between the Rail Roads of this State and the Tennessee River. 
 The applicants for the loan were in possession of a charter for the con- 
 struction of a Rail Road from Augusta to Atlanta, (near Covington) in 
 DeKalb County, in the State of Georgia. The Central and Monroe Rail 
 Roads had also in contemplation the extension of their Roads to Atlanta, 
 and it became a ' matter of great competition as to which of these rival 
 Companies should first reach the point of their common destination. 
 
 In addition to the valuable trade of this fertile portion of the South, which 
 could be secured to the successful party, a still greater inducement for exer- 
 tion existed. The State of Georgia had commenced the construction of 
 a Rail Road from Atlanta, direct to the Tennessee River. Whoever, then, 
 could first occupy the ground, and form a connexion witH the last named 
 
REPORTS OF INVESTIGATING COMMITTEES. 295 
 
 work, would be most likely to give direction to tlic trade, wliicli would, of 
 necessity, spring up between the Atlantic coast and the great valley of the 
 West. At this period, although the Georgia Rail Road was under contract 
 as far as Covington, (about one hundred and thirty miles from Augusta.) 
 still the enterprize languished, and appeared likely to fail, from the want of 
 funds to complete the road to Covington, and extend it to Atlanta. Mean- 
 while, the ether road was to be carried around the end of the Georgia 
 Rail Road, and to tap the State Road at Atlanta, thereby securing a direct 
 connexion between the Tennessee River and the city of Savannah, and 
 diverting to that channel the whole rich stream of South-western and 
 Western commerce. Under these circumstances, an appeal was made to 
 the Banks of the city of Charleston, to give their aid in the shape of a loan, 
 to finish the connecting link between the Georgia Rail Road and the 
 Western and Atlantic Rail Road. Impressed with the importance and 
 the opportunity of securing advantages, by which to revive the fortunes of 
 the metropolis of our State, to increase the prosperity and stimulate the 
 energies of our people in almost all departments of business, as well as to 
 increase the transportation upon our own Rail Roads, in which the State is 
 so largely interested, the Directors, after careful deliberation, agreed to be- 
 come parties to an arrangement by which several of the City Banks under- 
 took to supply a loan of three hundred and fifty thousand dollars, 
 ($350,000.) being the sum required for a completion of the undertaking. 
 
 The timely advance of this amount has efi"ected*the object in view. 
 The Roads, in whose success this State is interested, have been connected, 
 and when the Western and Atlantic Rail Road shall be completed, (fifty- 
 two miles of which are now open and in operation,) the line of Rail Road, 
 commencing at Charleston, will have been pushed four hundred and fifty 
 miles, to one of the great natural highways of the mighty West, to procure 
 for us the benefit of its exchanges and other advantages, for which the 
 State was willing to subscribe its millions as the purchase money. From 
 the conditions of the contract and the guaranties offered, it appeared to 
 the Bank, that these advantages could be gained without the expenditure 
 of one single dollar on the part of the State, and simply by the advance 
 of funds, the repayment of which wa3 amply secured, and for the use of 
 which the usual interest would be given. The share taken by the Bank of 
 the State, was one hundred thousand dollars, (the balance being taken by 
 some of the other Banks,) upon the securities now to be mentioned. 
 
 The loan was granted upon bonds of the Georgia R. R. & Banking Co. 
 payable in five equal annual instalments, in 5, 6, 7, 8 and 9 years, respec- 
 tively, with interest at the rate of 6 per cent, per annum, payable quarter- 
 ly in Charleston. To secure the payment of the Bonds, a deed of trust 
 was executed to H. W. Connor, F. H. Elmore and James Gadsden, offici- 
 ally, providing the following securities. 
 
 1st. A mortgage of the income of the Road, from Augusta to Athens 
 and Madison, and of such extensions as the company should make to both 
 Roads, and of the buildings, cars, negroes^ &c. connected with the Road, 
 with power, in case of failure of payment, to enter on the premises and to 
 receive and apply the income to the satisfaction of the Bonds, as they be- 
 come due, without application to any Court or Judicial process, to give 
 possession, with a further power to sell the property mortgaged, under 
 certain conditions. 
 
 2nd. A deposit of Bills of the Banking Co., to the amount of the loan 
 to be made, at the Bank in Charleston, under special deposit and under the 
 
296 REPORTS OF INVESTIG2VTING COMMITTEES. 
 
 seal of the Trustees, and to remain as collateral security, for the payment 
 of the Bonds. The additional guaranty offered by this part of the arrange- 
 ment arises from the fact, that under the Charter of the Road and Bank- 
 ing Co., the Stockholders are directly liable for the issues of the Bank. 
 
 3rd. The South Carolina Rail Road guarantees the payment of the debt 
 in case of a failure so to do on the part of the Georgia Company, and 
 of the securities proving insufficient. 
 
 The Bank is thus in possession of a lien of the income of the Road, the 
 individual responsibility of the Stockholders, and the guaranty of our own 
 Rail Road. These would appear ample to secure a loan of much larger 
 ■ amount than the sum for which they are offered, ($350,000.) although it 
 must be remarked as to the first item, that it is in fact a guaranty by the 
 State, (to the extent of its interest in the Road,) not only to the Bank of 
 the State, but also to the other Companies concerned in the loan. The 
 Deed further provides for the substitution of other Trustees, in case of the 
 death or resignation of those named. 
 
 In coming to a conclusion on this subject, the Board appear to have 
 acted with care and mature reflection. As to their power and the legality 
 of the operation, they were fortified with the opinion of the Attorney Gen- 
 eral, a copy of which is herewith annexed. 
 
 The times of payment of the Bonds are as follows : 
 $20,000 on January 8th, 1849. 
 " " " 1850. 
 
 " " " 1851. 
 
 . " " " 1852. 
 
 " •' " 1853. 
 
 And it is supposed they will furnish investments to pay off in part, the 
 State Stocks, $200,000 of which fall due in 1850, and $200,000 in 1852 ; 
 being the 6 per cents, issued in 1839, for the Rail Road subscription. . 
 
 EIRE LOAN. 
 
 Previous Reports have given such full statements of the negotiation and 
 disposition of this Loan, that it would be useless to go over the same 
 ground. The guaranty of the City of Charleston, in addition to other re- 
 quisites of the Fire Loan Acts, is ample security for this class of debt. — 
 From the high price of labor and materials, immediately after the great 
 fire of 1838, and the subsequent depreciation of Real Estate, many of the 
 borrowers have sufi"ered severely, and the Bank has been compelled to fore- 
 close the mortgages. In such cases, provision has been made by the City 
 to meet the regulations of the Act. It is hoped that the pressure upon the 
 debtors, under this Act, has much decreased, and that the remaining in- 
 stalments will be paid in due course, and without the compulsion of forced 
 sales. 
 
 The charge of interest, in the item of Interest and Expense State Loan, 
 arises from the fact of advances having been made by the Bank, for the 
 purposes of the Act, before the negotiation of our State Stock, and interest 
 has been charged up to the time that the Bank was re-imbursed. As the 
 futerest received on these cases, however, is somewhat higher than that paid, 
 and the excess is applied to the charge, it will gradually disappear. 
 
REPORTS OF INVESTiaATING COMMITTEES. 297 
 
 NESBIT MANUFACTURINa COMPANY. 
 
 The attention of tlie Committee was directed to tlie state of the debt, 
 due by this Company, in relation to which certain Resolutions were passed 
 at the last Session of the Legislature, and which will be found at p. 173 
 and 4 of the printed proceedings. In the course of last summer, a nego- 
 tiation was entered into with some parties, but it came to no useful result. 
 
 In order to carry out the intention of the Legislature, it became requi- 
 site for the Bank, at a judicial sale, to become the purchaser of the proper- 
 ty of the Company, the Iron Works and appurtenances necessary to carry 
 on the business ; on the 10th and 1 1th of September last, in pursuance of 
 a decree in Equity, the property of the Company was offered for sale and 
 
 was bought in by the Bank for the sum of $124,890 
 
 The land, with the right of the Company under their charter, and the 
 
 wagons, (3arts, horses, mules and stock sold at the price of $50,600 
 
 Negroes l... __ 74,290 
 
 • $124,890 
 
 Negroes to the value of $3,615, were also bought by other purchasers. 
 As soon as the sale had taken place, the President (who at the time was 
 on the spot,) wrote to the Board enclosing a particular advertisement of the 
 property, and recommending its immediate publication for a re-sale under 
 the 2d Resolution abov^ alluded to. The Board, however, upon delibera- 
 tion, decided to wait for the regular confirmation of the sale in Equity, 
 which will be had at the January Term of that Court for Charleston. So 
 soon as this shall be obtained, the Bank will be prepared to meet the re- 
 commendations contained in the 2d Resolution. 
 
 In pursuance of their duty, the Committee beg to submit the foregoing 
 to the consideration of the Legislature. They take 'this opportunity to re- 
 turn' their thanks to the Officers of the Bank, for the courteous and prompt 
 attention to all matters requested by the Committee. 
 
 PETER DELL A TORRE, Chair'n House Committee. 
 R. DeTREYILLE,. Chair'7z Committee of Senate. 
 
 38 
 
298 
 
 REPORTS OF INVESTIGATING COMMITTEES 
 
 EXHIBIT A. 
 Statement of tlve Bank of tJie State of South 
 vember 17 tK 1845 
 
 Carolina at Charleston^ No- 
 
 DR. 
 
 Capital 
 
 Bank Notes issued 
 
 " " inctange, 
 
 " " at Columbia 
 
 Discount Account 
 
 Interest " on Notes 
 
 " " on Bonds 
 
 " " on Fire Loan. 
 
 Protest u 
 
 State Treasury _ _. 
 
 " for Sinking Fund 
 
 " Loan for rebuilding city. . 
 
 Merchants' Bank, N. Y 
 
 C. J. Hambro & Son, 
 
 Deposits _ 
 
 1,242,060 
 
 78,066 
 
 30,200 
 
 6,157 
 
 1,727 
 
 569 
 
 6,405 
 
 14 
 
 65,733 
 
 675,177 
 
 1,810,253 
 
 5,561 
 
 5,899 
 
 1,123,357 73 
 1,350,826 00 
 
 14,874 54 
 
 2,551,164 08 
 
 11.460 83 
 442,041 96 
 
 CR. 
 Bills and Notes discounted 
 
 "^ '• in suit 
 
 Bonds secured by Mortgage 
 
 " Fire Loan 
 
 Specie, Cashier 
 
 Bank Notes, Cashier 
 
 " and Specie, Tellers. -^'. 
 
 Columbia Branch 
 
 Camden " 
 
 Hamburg Agency .. 
 
 Georgetown " 
 
 Bank of Charleston Stock . 
 
 State 3 per cent 
 
 - •<' 5 " 
 
 Commercial Bank 
 
 South Western R. R 
 
 " 6 per cent 
 
 South Carolina Rail Road Company . 
 
 « Bonds 
 
 " Sterling 
 
 Georgia R. R. and Banking Co 
 
 Bank Estate — 
 
 Real « 
 
 Judgments 
 
 Interest and Expenses State Loan.- 
 
 Baring, Brothers & Co 
 
 Foreign Exchange Account 
 
 Domestic " " 
 
 Contingent Expense " _ 
 
 $5,493,725 14 
 
 ,293,500 
 
 94,805 
 
 466,649 
 
 931,925 
 
 267,440 
 
 81,622 
 
 158,850 
 
 ,044,141 
 
 484,718 
 
 1,276 
 
 1,324 
 
 147,900 
 
 630 
 
 1,006 
 
 486 
 
 30,298 
 
 2,500 
 
 101,481 
 
 27,444 
 
 37,357 
 
 100,000 
 
 66,608 
 
 48,462 
 
 1,388,305 77 
 
 lj398,575 27 
 
 507,912 78 
 
 1,528,860 35 
 
 2,600 92 
 
 449,104 44 
 
 115,070 27 
 
 19,525 00 
 
 43,898 36 
 
 4,130 55 
 
 28,027 3i 
 
 4,958 62 
 
 2,755 50 
 
 $5,498,725 14 
 
REPORTS OF INVESTIGATING COMMITTEES. 299 
 
 , EXHIBIT B. 
 
 3000 00 ^ ^^ shares in the Planters' and Mechanics' Bank ; 32 shares in 
 
 I the Union Bank, and 3 shares in the Bank of Charleston. 
 1400 00 35 new shares in the Bank of Charleston, 
 2348 29 ^ ^^ shares in the Bank of Charles-ton, and 
 ( 52 shares in the Bank of South Carolina. 
 400 00 20 shares in the Charleston Insurance and Trust Company. 
 800 00 20 shares, (new stock) Bank of Charleston. 
 800 00 16 " " " 
 
 650 00 25 '• " " 
 
 2500 00 51 shares Charleston Insurance and Trust Company. 
 4400 00 ^ ^^ shares South-western R. R. Bank, with corresponding shares 
 
 ( in Road, and an indorser. 
 1700 00 50 shares Charleston Insurance and Trust Company. 
 3500 00 46f shares in Georgia Rail Roard and Banking Company. 
 3000 00 116 shares in the Bank of Camden. 
 4000 00 100 shares in the S. W. Rail Road Bank and Road. 
 2800 00 40 " " " " 
 
 1680 00 24 " . ^' " « 
 
 20 " •' "' . « 
 
 and 50 shares Charleston Insurance and Trust Company. 
 1090 00 26 shares in the Bank of Camden. 
 400 00 $408 67 City 6 per cent stock. 
 
 470 00 10 shares Charleston Insurance and Trust Company. 
 22*50 00 ^ ^^ shares in Union Bank, 16 shares in the Bank of South Car- 
 (■ olina, and 5 shares State Bank. 
 400 00 5 shares in the Bank of Charleston. . 
 600 00 20 shares in the Planters' and Mechanics' Batik. 
 2970 44 ^ ^^ shares in the Bank of Charleston, and 20 shares in the 
 ( Charleston Insurance and Trust Company. 
 300 00 7 sjiares in the State Bank. » • 
 
 2500 00 55 shares in the Charleston Insurance and Trust Company. 
 
 C 40 shares (new stock) of the Bank of Charleston ; 43 shares 
 3700 00 ^ Commercial Bank of Columbia, and 30 shares in the South 
 I Carolina Manufacturing Company. 
 
 3000 00 
 
;00 REPORTS OF INVESTIGATING COMMITTEES. 
 
 EXHIBIT C. 
 SCIIED UI.E OF STO CKS. 
 
 !baoj£ of Charleston^ old shares 
 
 new 
 
 State 3 per cents, certificate Oct. 1st 
 
 1845, for $1,000 
 
 " 5 per cents \ 
 
 Commercial Bank Columbiaj 16 shares. 
 South-western Rail Road, 
 
 original 400 shares, 
 " •• taken in liquidation 339 " 
 " " " exchange 4*0 " 
 purchased 864 "' 
 
 .986 $98,600 
 
 .986. 49,300 
 
 1643... 
 ^ Certificate deposit 6 per ct. 
 Jan. 1st, 1841. 
 
 South Carolina Rail Road 
 
 South Carolina Rail Road Co's. bonds, J 
 
 13 bonds £500 each, £6,500 \ 
 
 par value, 28,888, bought at 95. ) 
 Sterling bonds in hands of Hambro & Son, London 
 ijreorgia Rail Road and 
 Banking Co's. bonds, 
 
 7 of '5000 35,000 
 
 35 of 1000___. . 35,000 
 
 60 of 500-_ . 30,000 
 
 147,900 00 
 
 630 00 
 1,006 38 
 
 486 25 
 
 3Q,298 26 
 
 2,500 00 
 101,481 48 
 
 27^444 44 
 
 37,357 63 
 
 100,000 00 
 
 $449,104 44 
 
 EXHIBIT D. 
 Hon. F. H. Elmore : , 
 
 Dear Sir — I have very carefully considered the question which you 
 have referred to me, to wit : whether the Bank can lawfully make a loan 
 to, or purchase the bonds of, a corporation of a sister State ; and I had in- 
 tended in my answer to it, to have stated the reasons for my opinion, at 
 more length than I shall be able to do this morning. I understand that 
 my views upon the subject are wanted for the meeting of your board to- 
 day, and in order that I may meet the requisition, it is necessary that I 
 sbould content myself with stating briefly, the conclusions at which I have 
 arrived. 
 
REPORTS OF INYESTIGATINa COMMITTEES. 301 
 
 It is a general rule, that corporations have power to make all such con- 
 tracts as are necessary and usual in the course of business, as means to 
 einable them to attain the objects for which they were created ; and the grant 
 of these, and other general corporate powers, contained in the charter of the 
 "Bank of the State, is expressed in the most large and ample terms. See 
 Act of 1812, section 1, clause 16. To make loans is one of the chief ob- 
 jects of every incorporation of a Bank, and the preamble of the Act of 1812 
 expressly declares it to be one of the objects of incorporating the Bank of 
 the State, '• to make loans for longer periods than has heretofore been cus- 
 tomary, and on security different from what has hitherto been required." 
 It is plain, therefore, that every question as to the powers of the Bank to 
 make a loan, must be answered in the affirmative, unless some reason to 
 the contrary can be collected from the charter, either in its express provi- 
 sions, or by necessary implication from them ; and I am not aware of any 
 in reference to the questions now submitted to, me. 
 
 It may be inferred that the benefit of the loans to be made by the Bank, 
 was intended to be secured, in the first place at least, to the citizens of 
 this State. But this is an inference from what may be supposed to be the 
 intention of the Legislature, rather than from any thing contained in the 
 charter. The latter part of the 4th clause, 1 st section, does, it is true, re- 
 strict loans, to be made on the security of a mortgage of property only, 
 to citizens of this State, but this manifestly has^ reference to the nature of 
 the security, and to a particular species of loans which may be insisted on 
 as a right ; for in the immediately preceding part of the same clause, au- 
 thorizing the discount of bills, of exchange and promissory notes, there is 
 no such limitation or restriction, except, indeed, as to bills of exchange, 
 which are required to be accepted and made payable in this State. This 
 latter restriction at one time applied to all the Banks, and the object, I 
 suppose, was to prevent Banks dealing in exchanges, and to confine them 
 strictly to the defined rates of legal inter-est on their loans and discounts. 
 The restriction has, I believe, been since removed in the case of every one 
 of the Banks, all of whom, I am under the impression, may now deal in 
 exchanges. It seems to me to haver been removed in the case of the Bank 
 of the State, by necessary implication from the Act of 1817, the first sec- 
 tion of which, amongst other things, authorizes the Bank " to open an ac- 
 count, and give credit, to any other Bank or' Banks in any of the sister 
 States." But independently of this, the 12th section of the Act of 1831 
 authorizes (see also A. A. 1840, Bank comp. page 52) the Bank to appoint 
 an agent in New York, for the express purpose of dealing in exchanges. 
 
 These Acts too, show very clearly, as it seems to me, that it was never the 
 intention of the Legislature to limit the powers of the Bank, in " making 
 loans," to making such loans to citizens of the State, exceptin the casei)f loans 
 on a mortgage of property, under the 4th clause, 1st section of the original 
 charter. There are several other Acts from which the same inference 
 might be dra\yn. As'' for instance, the 10th section Act of 1831, which 
 authorizes the Bank to buy stock, and in doing so, uses tlie phrase, " any 
 other stock," without any limitation or. restriction. 
 
 Upon the whole, I have no doubt but that the Bank may lawfully make 
 a loan to a corporation of a sister State, or purchase the bonds of such in- 
 stitution, if the measure should be deemed advisable. Of course it be- 
 
302 REPORTS OF INVESTIGATING COMMITTEES. 
 
 hooves the Board to look well to the security, and also to take care not to 
 disable itself in its means of granting necessary accommodations to our 
 own citizens ; but I regard the question as one of discretion, rather than 
 authority, and that the contract is legally valid and binding. The form of 
 the security appears to me immaterial, so far as regards the question of 
 power to make the loan. 
 
 Very respectfully, &c. 
 (Signed) H. BAILEY. 
 
 June 25, 1843. 
 
 (1845.) 
 REPORT OF THE SPECIAL JOINT COMMITTEE, 
 
 APPOINTED IN pECEMBER, 1844, TO EXAMINE THE BRANCH OF THE BANK OF 
 THE STATE OF SOUTH CAROLINA, AT COLUMBIA. 
 
 The Special Joint Committee, appointed in December, 1844, to examine 
 tjie Branch of the Bank of the State of South Carolina, at Columbia, beg 
 leave respectfully to submit the following 
 
 REPORT: 
 
 That they proceeded to discharge the duties assigned them, on the 10th 
 diay of July last, and facilitated with the information afiforded by the pre- 
 siding officer, were enabled to inform theniselves fully and satisfactorily, 
 not only in reference to its condition at the time of the examination, but 
 also in relation to their banking operations for the last fiscal year ; and 
 more especially the mode and manner in which their finances have been 
 conducted heretofore. 
 
 As the fiscal year with the Bank of the State and its Branches termi- 
 nates on the first of October, it would certainly be more practicable for 
 subsequent Committees to commence their labors at that, time, but the 
 particulars in which we may vary, will be readily perceived by reference to 
 the different statements submitted. The statement marked Exhibit A, 
 was presented by the officers of the Bank, shewing its conditiofi at the time 
 of the investigation, and exhibiting its banking operations from the 1st of 
 October, 1844, to the 10th of July, 1845, showing, by the addition of the 
 several items marked * a profit of $44,0G7 61, for a period of little more 
 than nine months, or pro rata about $57,000 per «,nnum. As the returns 
 of Banks are generally so complex as not to be easily understood, except 
 by those who are in every respect familiar with commercial and banking 
 operations, we have submitted a difierent mode of representing the condi- 
 tion of the Bank, which will appear by reference to Exhibits B. and C. in 
 which we have charged the Bank with all its liabilities, and given credit for 
 all its assets, thus approximating as near the profits of the institution, as 
 we can possibly arrive ; not deducting from the same, however, any debt 
 which may be considered lo§t or doubtful. 
 
REPORTS OF INVESTIGATING COMMITTEES. 303 
 
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304 
 
 REPORTS OF INVESTIGATING COMMITTEES. 
 
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REPORTS OF INVESTIGATING COMMITTEES. 305 
 
 It may be thought that your Committee, in exercising the authority with 
 which they were invested by the Legislature, should have confined them- 
 selves exclusively to the operations of the Bank for the last twelve months ; 
 but entertaining the opinion that in a faithful discharge of that duty we 
 should assume the privilege of investigating each and every circumstance 
 connected with the Bank, we have entered more into detail, with a view of 
 aflfording all the information we can, to those who have entertained doubts, 
 in regard to the financial operations of this institution. 
 
 With the exhibits before us, we proceed to remark upon the different 
 items composing the assets and liabilities of the Bank. 
 
 1st. " The amount due the parent Bank," is the general balance of the 
 account current due the Bank in Charleston, (including the original capi- 
 tal of $850,000) and which has been increased and diminislied, at differ- 
 ent times, by various operations, since the establishment of this Branch in 
 1814, showing an indebtedness on the 10th July, 1845, of $948,496 55. 
 
 2nd, " The amount due New York," is the balance of our Exchange 
 Account, due the parent Bank, for Northern exchange sold in Columbia, 
 and which is paid by the Bank in Charleston, and charged in their Ac- 
 count Current against the Branch Bank in Columbia. The facilities thus 
 afforded in selling exchange on New York, without being required, like other 
 Banks, to draw against a fund on deposit, is a feature worthy of some no- 
 tice. It has the good effect of suppl3dng the citizens of the upper Districts, 
 who may be engaged in commercial transactions, with Northern exchange 
 at Charleston rates ; and at the same time acts as a check on the country 
 Banks in regulating the premium of exchange ; such a policy is certainly 
 commendable, and must eventually afford, though limited at present, addi- 
 tional source of profit to the Bank. 
 
 3d. " The amount on Deposit,"- consists of various sums in Bank placed 
 to the credit of individuals, corporations, so<cieties, institutions, etc. and 
 show an indebtedness of the Bank to the amount of $104,700 22, and 
 thouo-h strange it may appear, that the " cash on hand," is not equal to the 
 " amount on deposit," a circumstance which is unusual with' other Banks, 
 and which might be thought a fearful state of affairs by many not acq^uaint- 
 ed with the situation of the funds of this institution, yet your Committee 
 were perfectly satisfied, from a critical examination, that every check that 
 could be drawn upon the Bank, would be promptly met in cash, from the 
 fact, that a sum exceeding $40,000 would not be called for, and the great- 
 er portion of which could not be appropriated before the meeting of the 
 Legislature. 
 
 These items collectively embrace the liabilities of the Bank ; we next 
 proceed to remark upon the assets, showing the probability of meeting this 
 indebtedness. 
 
 1st. "The notes discounted," include many which are of longstanding, 
 and of the solvency of which your committee were not in some instances well 
 satisfied. About 750 notes are in Bank, which have been discounted at dif- 
 ferent times, amounting to $884,087 09. the proceeds of which, no doubt, 
 have afforded accommodations to citizens in nearly every part of the State, 
 but at the same time, we find a suspended debt of $77,219 50, a portion of 
 which has been lost to the Bank. In justice to the presiding officer of the 
 Bank, we feel in duty bound to state, that some of these debts were origi- 
 nally contracted before his official duties commenced ; and we have been 
 
 39 
 
306 REPORTS OF INVESTIGATING COMMITTEES. 
 
 assured that no efforts, consistent with circumstances, have been spared on 
 his part, to bring them to a more favorable condition, 
 
 2d. " The drafts discounted," comprise the operations in domestic ex- 
 change. A sum equal to her entire banking capital has been discounted 
 upon drafts drawn upon Charleston within the last nine months, no part of 
 which appears to have been returned under protest. This fact speaks 
 much in favor of the experience and management of the officers of the 
 Bank ; it is a branch of business comparatively new to this institution, 
 and should be encouraged to any extent, if safely administered ; it has 
 already afforded many facilities to the agricultural interests of the upper 
 Districts, by removing, in part, the monied, restrictions under which the 
 purchasers of produce frequently labor, and at the same time offers to the 
 Bank of the State an opportunity of circulating her own bills, and receiv- 
 ing in payment the bills of other Banks. We recommend a continuance 
 of this branch of its business, as the means not' only of affording an ex- 
 tended capital, but eventually securing large profit to the State. 
 
 3d. In regard to " The Bonds in Bank," your committee regret that they 
 cannot speak in more favorable terms. There appears to be but twenty 
 bonds in this Bank, yet the fact presents itself, that some of them have 
 been lodged from 'five to ten, and in some cases near thirteen years, and 
 in small sums too, (comparatively speaking) due by individuals who have had 
 frequent accommodations in Bank from time to time, for more than double 
 the amount of the bond. Your committee therefore recommend, that all 
 the bonds or mortgages of long standing, due the branch Bank of the State 
 at Columbia, be either collected, (or secured in some other form,) before 
 the next annual report of the Bank to the Legislature. 
 
 In connection with this part of the report, we also recommend to the 
 officers of the Bank, that some definite action be taken in bringing to a 
 more favorable situation certain debts, which seem at this time to be under 
 protect, and not in suit, and due by parties perfectly solvent. In conclu- 
 sion, your committee would avail themselves of this opportunity to remark, 
 that as the subject of indebtedness of Bank directors has for a long time 
 created an uneasiness in the minds of the community, though it is not our 
 privilege to speak of the same individually, still we must express an agree- 
 able disappointment, in the exhibit of the Bank accounts of the directors 
 of this institution. We called upon them without giving notice, and at a 
 season of the year when it could not be expected that their accounts would 
 make a very favorable showing ; in consideration, however, of the various 
 pursuits and occupations of the different gentlemen composing the board 
 of Directors in this Bank, we are satisfied that their accommodations have 
 not been more liberal or partial to themselves than to many other citizens 
 of the State, and in every case, we believe the indebtedness of the pres- 
 ent board to be amply secured. As regards that general spirit of accom- 
 modation which has ever characterized the officers of this Bank, in afford- 
 ing substantial benefits to the agricultural and commercial interests of the 
 State, we have only to observe, that their loans have been equal to their 
 original capital ; and the claims which they now hold, are due by citizens 
 residing in almost every district of the State, thus manifestly exhibiting 
 a disposition to conform to that extensive accommodation, which was ori- 
 ginally dictated by the purposes for which this Bank was incorporated. 
 
 As regards the '^ modus operandi^^ of conducting the practical opera- 
 tions of the Bank, on the part of the salaried officers, we do not hesitate 
 
REPORTS OF INVESTIGATING COMMITTEES. 307 
 
 to say that their books exhibit a clear and, concise view of the affairs of the 
 Bank, and have been kept neat and correct, as far as your committee could 
 possibly discover. To the presiding officer we cheerfully accord that pa- 
 triotic disposition to sustain, on liis part, the reputation of the State, as 
 well as that of her institution ; and we are fully satisfied, from all the in- 
 terchanges of opinion which this investigation necessarily elicited, that 
 under his administration, with the benefit of such suggestions as your 
 committee have thought proper to recommend; that the financial opera- 
 tions of this institution can and will be, faithfully, honestly and safely ad- 
 ministered. 
 
 All of which is respectfully submitted. 
 
 JAMES K AIKEN, } ., ... . xr 
 
 JOSEPH A. BLACK, i Committee of House 
 JOHNL. MANNING. ) of Representatives. 
 
 H. C. YOITNO, } r^ -^^ ^ q . 
 WM CIST ? Committee 01 benate. 
 
 Columbia. Dec. 8. 1845. 
 
 (1845.) 
 
 REPORT OF THE SPECIAL JOINT COMMITTEE 
 
 Appointed to examine the Brrnich of tlie Bank of the State of South Caro- 
 lina at Camden. 
 
 The Joint committee, appointed at the last session of the Legislature, 
 ^B the part of the Senate and House of Representatives, to inspect the 
 branch of the Bank of the State of South Carolina at Camden, ask leave 
 to submit the following report. " ' : ' 
 
 The capital of the branch of the Bank of the State of South Carolina 
 at Camden, may be said to consist of the debt which it owes to the parent 
 Bank. This debt varies from time to time, as bills are furnished to or 
 withdrawn from the branch. The average capital, however, is estimated 
 at four hundred and eighty-one thousan-d dollars, to which, in order to as- 
 certain the nett profit, sliould be added seven thousand dollars, the cost 
 of the lot and buildings in Camden, used for banking purposes — making, 
 in the whole, four hundred and eighty-eight thousand dollars. 
 
 PROFITS. 
 
 The gross profits for the year ending the first of October, 1845, amounted 
 to thirty-five thousand three hundred and fifty-one dollars, fifty-four cents. 
 
 The profits arise in the following manner : 
 
 On discounts $25,768 58 
 
 On domestic exchange 834 49 
 
 On Northern exchange . 61 23 
 
 Interest on bonds and suspended notes 8,521 24 
 
 Protest 166 00 $35,351 54 
 
 EXPENSES. 
 
 The salaries of officers..---- ___-$6,000 00 
 
 Incidental expenses 566 76 6,566 76 
 
 Net profits.-- $28,784 78 
 
308 REPORTS OF INVESTIGATING COMMITTEES. 
 
 Being over 5^ per cent, on the estimated capital, including the cost of 
 the banking house. 
 
 LIABILITIES ON THE FIRST OF OCTOBER, 1845. 
 
 Debt due parent Bank. . _ $521,640 36 
 
 " " Individual depositors 34,754 33 
 
 " " Merchants Bank of New York '. 11,670 42 
 
 $568,065 U 
 ASSETS ON THE 1st OCTOBER. 1845. 
 
 Notes discounted, (not dishonored) , ..__: . $436,563 61 
 
 « " protested » i... 7,821 42 
 
 In suit ■ - 11,948 00 
 
 In Judgment , 25,091 85 
 
 Drafts on Charleston _ 6,590 00 
 
 Bonds . .- _- 53,899 93 
 
 Bills of various Banks of this State, principally of the parent- 
 
 Bank ^_ 25,151 70 
 
 Bills of Banks of other States 24 00 
 
 Gold and silver coin — > 974 60 
 
 $568,065 11 
 
 There are twenty-one bonds in the branch Bank, eight of which were 
 taken, during the present year, to secure debts, and to prevent the sacrifice 
 of property. Most of the debts in bond are secured by mortgage, in ad- 
 dition to personal security. 
 
 The number of borrowers on notes was, on the first of October last, 
 three hundred and twenty-one. 
 
 ■ Accommodations by the branch seemed to be extended generally, not 
 only to the district where it is located, but in the adjoining districts also. 
 
 Your committee examined the bonds and notes with refereiice to their 
 amounts, and the solvency of debtors. From the knowledge of your com- 
 mittee in some cases, and from such informotion as they could obtain in 
 others, they have come to the conclusion that the debts are generally well 
 secured. Some of the old debts sued, may be considered doubtful, and there 
 are some small notes, amounting all together, to about twelve hundred and 
 fifty-five dollars, which your committee regard as doubtful, if not decidedly 
 bad. 
 
 Every facility for examining into the affairs of the branch was afforded 
 by the able officer at its head. It is the opinion of your committee, that 
 the affairs of the branch are in most respects well conducted. But it does 
 appear to your committee, that the aggregate indebtedness and liabilities 
 of the directiou, are not proportioned to the capital and business of the 
 branch. 
 
 All of which is respectfully submitted. 
 
 JAMES CHESNUT, Chairman of House Com 
 
REPORTS OF INVESTIGATING COMMITTEES. 309 
 
 (1847.) 
 
 REPORT OF THE SPECIAL JOINT COMMITTEE, ON THE 
 BANK OF THE STATE AT CHARLESTON. 
 
 To the Honorable the Senate and House of Representatives of the State of 
 
 South Caroliria. 
 
 The Joint Committee of the two Houses, appointed at the last Session 
 to inspect and report upon the affairs of the Bank of the State of South 
 Carolina, report : 
 
 That it being the first duty of your committee, " to examine minutely 
 into the affairs and situation of the Bank, and to report the result thereof, 
 and particularly all mismanagement in the affairs of the said Bank, if any 
 such have occurred ;" and being for these purposes clothed, under the Act of 
 the Legislature of 18243 with power to iiivesfcigate fully the Books, Accounts 
 and other documents of the said Bank, they, on the 28th of August last, 
 did proceed to the investigation. 
 
 They resorted to every means that seemed to them available for arriving 
 at correct conclua-ions. They examined, carefully, all the public and 
 private accounts, with the view to ascertain, at least with reasonable certain- 
 ty, on what sort of security the money of the State had been invested, 
 and how far these investments had been safe and judicious. They went 
 through all the note accounts, and the securities in bonds and stocks. Tkey 
 weighed and counted the specie, investigated all the assets of the Bank of 
 every kind and amount, and the profit and loss account, and your commit- 
 tee believe they have not left any department of the institution without 
 investigation. 
 
 In these examinations we take pleasure in stating that the officers of the 
 Bank afforded every assistance and facility ; every thin^' was spread out to 
 view, without the least reserve, and a scrutiny invited and promoted, by all 
 the means apparently in their power. 
 
 After such examinations as satisfied every member of your committee, 
 they have come, unanimously, to the conclusion, and have agreed, to report 
 to your honorable body, that although your committee will not say that 
 there have not been errors in their administration, yet they feel bound to 
 declare, that so far as they have been able to judge, the affairs of the in- 
 stitution have been managed with prudence and circumspection, and the 
 interests of the State seem generally to have been held in view, as the pri- 
 mary object of their operations. 
 
 To the profit and loss account, your committee turned their particular 
 attention. This account contains, in general, 4he names and debts of men, 
 principally merchants, who have been known to the whole community from 
 year to year to have failed in business, from the time of the foundation of the 
 institution to the present. Most of them were already known to the members 
 of 3"0ur committee as unfortunate bankrupts, who had not been able to pay 
 their debts. Very few of the losses were at all extraordinary, and if the 
 average of these losses, for the course of years, be compared with the aver- 
 age clear annual profits of the bB,nk for these same years, they will not be 
 found grijater in proportion, than must reasonably be expected in all ope- 
 rations of this kind, however prudently conducted, and much less than 
 generally befall commercial operations of the same extent, 
 
310 REPORTS OF INYESTiaATIITO COMMITTEES. 
 
 There does not seem to your committee any motive to conceal the names 
 on the profit and loss account of the bank from the public eye, except the 
 honorable one of adhering to the pledge contained in the charter, and on 
 which the money had been originally borrowed by these unfortunates, that 
 their names should not be made public, and a praise-worthy unwillingness, 
 to expose to unnecessary humiliation those, or the relatives of those, whose 
 only fault, in most instances, had been, that they were unfortunate — per- 
 sons who failed to pay their creditors, generally, and not the bank in par- 
 ticular. There seems not to be any valuable object or practical result to be 
 obtained by the publication of these names, even if it could be honorably 
 done, whilst that idle and childish curiosity, which would be indulged and 
 promoted by such an exhibition, would be any thing but creditable to our 
 people. These losses, as we have isaid, are' not large when compared with 
 the annual profits from which they hav<}, from time to time, been deducted. 
 
 Nor do they seem to have been incurred either by the negligence or im- 
 prudence of the officers of the instilution. They seem rather to be the 
 amount of those contitigent losses, from which no prudence could entirely 
 guard, and which are necessarily incidental to all banking operations. In- 
 deed, without the risk of which, in some sort, no profits could be made. 
 
 Some loss of this kind will always occur in banking concerns ; and the 
 only fair estimate which can be made of their^degree, must be by comparing 
 them with the clear average profits, which at the same time have occurred. 
 
 Your committee also turned their attention to the accounts of the Direc- 
 tors. But as these are submitted to the annual inspection of the members 
 of botli Houses, it does not seem incumbent on them to canvass the ac- 
 counts themselves. Each member can examine and judge for himself 
 Your committee would, nevertheless, respectfully suggest, that frequent 
 changes in the direction must, necessarily, have an injurious effect on the 
 operations of the institution. Every new director becpmes a new borrower. 
 The State pays no salary to these gentlemen for their services, and it must 
 always be understood, that the candidate for a director's place can be 
 seeking nothing in the attainment of this office, but pecuniary facilities of 
 some sort. .Not that your committee would be understood to imply that the 
 simple fact of the director's borrowing from the bank, is injurious. On the 
 cohtrary, it would sepm that he ought to. be entitled to some such privilege 
 as a compensation for his services. Gratuitous service in any department, 
 is perhaps the most costly the State can receive ; and good borrowers are 
 precisely that class of citizens out of whom the profits of the bank are 
 expected to be made. . 
 
 But your committee doubts much, whether the present m.ethod of exhibit- 
 ing these accounts to the- Legislature, is productive of any good. practical 
 results. 
 
 Under these impressions, they have submitted an enquiry to the Presi- 
 dent of the Bank on the subject, which enquiry, together with his reply, 
 accompanies this report, and will be found in the appendix. 
 
 Serious losses are more, apt to ocgur to the Bank from the Directors' ac- 
 counts, than from any other. We believe this has been found practically 
 true in the past experience of the institution ; but the true security of the 
 State consists, not so much in watching your public servant invidiously 
 after you have invested him with the trust, but in taking due care, in the 
 first instance, to elect those only in whom you may fully and securely con- 
 fide. The losses of the bank of the past year, demonstrate that the existing 
 method of scrutiny is not effective. On the other hand, there is no doubt 
 
 I 
 I 
 
REPORTS OF INVESTIGATING COMMITTEES. 311 
 
 but that this method has had the effect of removing*' some of the ablest and 
 most experienced merchants from your board, who now direct the private 
 institutions with ability and success. It must also be recollected, that 
 whilst the directors of these private institutions are selected, generally, 
 with reference to their mercantile skill and credit, yours are selected rather 
 according to the influence of friends and the number of votes they can 
 command on joint ballot in the Legislature. 
 
 There are some very peculiar features in the Constitution of the Bank 
 of the State, which it seems to your committee not amiss at this time to 
 bring more particularly to the. view of your honorable body. This Bank is, 
 in many respects, an Independent Treasury. The funds of the State are, 
 in effect, kept by herself, or by a corporation entirely under her own control. 
 None of her assets go into the private institutions, cither to be kept or 
 banked upon ; but are in her own vaults, and only to be used, so far as 
 the theorj of the establishment is concerned, for the benefit and at the will 
 of the State. , 
 
 -The Bank, under these circumstance, not only brings the State an annual 
 income, but it also manages nearly the whole of her fiscal concerns. Being 
 the place designated by law for the deposit and safe keeping of all the 
 public funds, it also takes an important part in negotiating and adminis- 
 tering her aid in the management of. the public debt and loans of every 
 description, and in their payment. 
 
 In this point of view, it is unquestionably of great value to the State, 
 and we much doubt whether her fiscal affairs could be managed by any 
 other plan with equal facility and precision. 
 
 Under circumstances as they noAV exist, the aid of the Bank seems to 
 youi' committee indispensable; and this, not with reference to the revenue 
 derived or to be derived from it. This is, perhaps, the least of the benefits 
 accruing to the State. Were the institution for the first tipie to be now 
 established, and the profits to be derived from its operations held out as 
 the prominent inducement to give it a charter, we are free to admit, that 
 we should not, probably, be found among those who would lend their aid to 
 its creation. But it has already been established. Its interests have be- 
 come interwoven, in many important respects, with those of the State, and 
 they cannot be torn asunder, without serious and extensive disaster. 
 
 There is another point, of view, in which this institution seems peculiarly 
 valuable to the commercial relations of the State at large. The State her- 
 self being the guaranty for its stability, there is scarcely a possibility of 
 the failure of the bank. The consequence resulting from this feature is, 
 that it operates as a great and salutary check in times of commercial dis- 
 tress on the disastrous panics which at those periods occur. When distrust 
 is abroad and deposits and specie withdrawn on every side from the private 
 corporations, then the beneficent effect of an institution under the guaranty 
 of the State is more peculiarly felt. At such times it becomes the grand 
 depository of all those funds which have been thus drawn from the private 
 banks, and which would otherwise be withdrawn entirely from circulation 
 and hoarded, and by this withdrawal would increase two-fold the' general 
 suffering. 
 
 Your committee are informed that at periods like these, the deposits 
 received at this institution are immense. Your honorable body can easily 
 perceive the substantial benefits which must always accrue to the commerce 
 of the city and State, from this feature in the bank. To have one safe 
 place of deposit which can weather any commercial crisis, shorj of those 
 
312 REPORTS OF INVESTIGATING COMMITTEES. 
 
 produced by civil commotions, must, at such times, be worth more to the 
 people of the State than all the private banking Companies together. 
 
 This benefit, which is, perhaps, the most substantial derived from this 
 institution, seems not to have been at all in the contemplation of those 
 who first projected and established it. It seeins to have grown out of the 
 natural course of events^-the security of the capital, resting on the power- 
 ful guaranty of the State, being thus beneficially brought to bear on the 
 transactions of her commerce. Should the Bank continue to be prudently 
 and effectively managed, this may long remain a main sheet anchor to our 
 people, in times of commercial revulsion and distress. 
 
 Whilst we thus endeavor to set forth fairly and impartially, some of the 
 benefits derived and to be derived from this institution, your committee 
 deem it also their duty to touch on some of the evils it may be calculated 
 to create or foster. The first and most important of these, is the facility 
 with which it may be used as an engine of political influence. But it must 
 be recollected that this danger, (and it is a great one) springs, more than 
 any other, from the action of the Legislature itself, and the manner in 
 which it has linked itself with the Bank. None but a man of considerable 
 strength in the Legislature can be elected its President, and all its Direc- 
 tors rest on the same foundation for their appointment, and the keeping of 
 their places. This money power is not peculiar to the Bank of the State. 
 It appertains to every corporation, where large ca^pital is concentrated in 
 the hands of a few. The fact of this institution being entirely under the 
 control of the State, rather impairs than enhances its possible means of 
 monied influence. Money is power in all j3laces, and those who have the 
 management and direction of it, wield this power. A banking corporation 
 of equal capital, entirely beyond the control and supervision of the State, 
 would be faf more formidable ; because, its operations would be out of our 
 sight and reach, and we would only know of them by feeling their effects. 
 It therefore w^ould wield entirely an independent influence, more to be 
 dreaded, and far more calculated to act injuriously on the free suffrages of 
 the citizens, than that of a bank which may be called to account for any 
 indirection in this as well as in other respects, or be abolished at the will 
 of the State. 
 
 It is a gross mistake to suppose, that were the possible money power in 
 the Bank of the State abolished, this influence itself would end. We 
 should only transfer it to the private institutions, on whom the Bank is 
 now a check, to be used by them without check or stint, for their own pur- 
 poses, ox that of their directors, whenever they should think proper. 
 Neither would we be able to discover but casually whence this secret influ- 
 ence is derived. Men who have power of any sort are prone to use it, and in 
 most instances, for their own personal and exclusive objects; and it would 
 be difficult to shew how, by transferring this control over the monetary con- 
 cerns of the State entirely to private corporations, we should promote the 
 welfare, either of the State as a political body, or of her citizens. So long 
 as we are satisfied that the influence of the Bank of the State is not 
 wielded for political purposes, and whilst it continues in the exercise only 
 of its lawful functions, and in the pursuit of objects for which the State 
 invested it with power, it is but reasonable that it should not be embarrassed 
 by any undue action of the Legislature. 
 
 On the whole, your committee would respectfully submit, that every 
 part of the monetary concerns of the State has become connected and in- 
 terwoven with its action. These monetary concerns are well managed, and 
 
REPORTS OF INVESTIGATING COMMITTEES. 313 
 
 her credit sustained, at all times up to the highest point. Whilst the bank 
 has never had, nor could have had, any agency in creating the debts of 
 the State, it has ever, since its formation, been the main staff on which she 
 has rested, either for assisting her in raising new funds in times of diffi- 
 culty, or of liquidating and paying off all her pre contracted liabilities. 
 
 The debts of the State are large. It is on the management and effi- 
 ciency of the bank we principally rely for their payment, and whilst we 
 should continue to watch narrowly, that it does not swerve from its duty, 
 we should, on the other hand, render every reasonable aid and encourage- 
 ment ,to its officers, in the furtherance of the all important objects for 
 which it was instituted, and in which the public welfare is so deeply 
 involved. 
 
 There being certain subjects on which the committee desired to be in- 
 formed, but were unable, by any investigation they could institute, to reach, 
 they sought of the I^resident the information, by propounding to him the 
 following 
 
 QUERIES. 
 
 1st, Will the Bank be able to meet and pay off the instalments of the 
 public debt, charged upon it, as they fall due ? , 
 
 2nd. Can the public debt be paid off at periods earlier than now arranged 
 foi^ ; if so, how can it be effected ? 
 
 3d. Is the mode established by the resolution of December 9th 1842, 
 for ascertaining the fitness of directors, by exhibiting in a private report 
 the state of their accounts on the 1st day of each month, useful or injuri- 
 ous ? What is its effect ? Can any better plan be suggested ? 
 
 4th. Is the present the best method for collecting your debts ? Could 
 it be improved so as to benefit the public without injury to the debtor? 
 
 5th. Does the circulation of this Bank depend, for its maintenance, on 
 the same principles as that of the private institutions ; if not, what modifies 
 or affects it differently ? ' . 
 
 6th. Is the amount charged on the debtor side of your general account, 
 as " Bank notes issued," the amount in actual circulation ? 
 
 7th. Have all the notes which the Bank has issued, from its commence- 
 ment, been charged against it in the statement of issues ? — or has any de- 
 duction or credit been made for what may have been lost or destroyed? 
 
 The answers to these queries are added, as an appendix, to this report, 
 and will be found valuable for the information contained in them, and as 
 affording practical suggestions for amending and 'improving the laws on 
 these subjects. 
 
 ^ JAMES SMITH RHETT, 
 
 Chairman Com. of the Senate. 
 JOHN E. CAREW, 
 Chairman Com. of the House of Representatives, 
 
 40 
 
314 REPORTS OF INVESTiaATING COMMITTEES. 
 
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REPORTS OF INVESTXGATINa COMMITTEES. 315 
 
 APPENDIX. 
 
 CHARLESTON, NOV. 25th, 1847.. 
 To Ehn. James S. Rhett^ and John E: Carew^ Esq., 
 
 Chairmen of the Committee of Investigation. 
 Gen^tlemen :• — I submit herewith the answers I have prepared to the 
 JL questions propounded by you. The delay in furnishing these answers has 
 ™' been occasioned by the state of my health, which has been such as to com- 
 pel me to prepare them at iirtervals, when I was able to attend to the sub- 
 jects of inquiry. 
 ifc Very respectfully, your obedient servant. - ' 
 
 K" ' • F. H. ELMORE, President Bank of the State of So. Ca. 
 
 L Question. 
 
 "Will the Bank be able to meet and pay off the different instalment^ of 
 the public debt, which are charged upon it, as they fall due ? 
 
 Answer. 
 
 That the Bank wiU be able to meet and pay off all the public debt 
 charged upon it as it falls due, if the Legislature does not. impair its ability 
 by measures injurious to its business, I have not the least doubt. I will go 
 further, and say, that if arrangements can be made with the public credi- 
 tors for that purpose, the payment of a large part of it can be met by th6 
 Bank before it falls due, and in all human probability, the extinguishment 
 of the whole be effected with advantage to the public interest, even before 
 the periods fixed in the present arrangements, • 
 
 The reasons on which this opinion is founded were set foi'th in my spe- 
 cial report of December, 1843, made in obedience to the -call of both 
 branches of the Legislature, (see special Rep. pp. 9-10) and, again, three 
 years after, in the annual Report of 1846, (see Rep. and lies. 1846, pp. 23, 
 4, 5, and 6.) To these reports I ask your attention, in order that you may 
 subject the views then expressed, to the test of subsequent experience, and 
 see how fully the calculations then made have been verified, and even ex- 
 ceeded. With my special Report of December, 1843, I submitted- a table, 
 carefully prepared, to show what we believed would be the action of the 
 Bank in paying the public debt. We showed in that table, that with the 
 very low rate of profits estimated, the Bank would meet and pay the whole 
 public debt, as it fell due. The rate of profits for 1844, 1845 and 1846," 
 exceeded those estimated by five thousand dollars, and those of 1847 ex- 
 ceed the estimate by $72,000. The greater profits were made, notwith- 
 standing the Bank cancelled in 1844, $417,008 29 of the State stocks it 
 held as part of the capital on which it estimated its profits ; and has also, 
 out of its capital, bought up since, and paid $33,333 33 of the fire loan duQ 
 in 1858 and 1868, long before it was due. 
 
316 REPORTS OF INVESTIGATING COMMITTEES. 
 
 Besides purchasing and cancelling stocks, not yet due, to 
 
 the amount of __-_ ,.$43,441 33 
 
 The Bank also paid in 1845 and 1846, th& five per cents. 
 
 due then _'_..__.._ 544,523 64 
 
 The total amount of these payments was.— $587,964 97 
 
 while the Bank was only required to have paid. 550,000 00 
 
 Showing an excess of payment of public debt $37,964 00 
 
 It will thus appear that the Bank, in the last four years, has paid $37,- 
 964 03 more of the public debt, and carried to the sinking fund $77,000 
 more in profits, than it promised in the table of 1843, and I point to these 
 results to justify the opinions I expressed in 1843 and 1846, and which I 
 now repeat with increased confidence, viz : that the Bank, if it is not em- 
 barrassed by unwise interference and restriction, will be fully able to pay 
 off the whole public debt, as it falls due, or even to anticipate and pay it 
 off before the times it now falls due, if arrangements can be made with the 
 public creditors that will allow it. 
 
 As regards the operations of the Bank in the coming years, I can per- 
 ceive no reasons why they should not be equally, if not more profitable 
 than the past. The field of operations is widening every day. Bail 
 Roads within and steam-ships without, are extending the domestic and for- 
 eign trade of Charleston, and hold out a promise of great increase in her 
 commerce, wealth and population. This State, and the neighboring States, 
 are enjoying a high degree of prosperity, and enlarging greatly their pro- 
 ducts, transactions and industry. Bank capital will have a constantly en- 
 larging sphere for wholesome and profitable employment, in the enjoyment 
 of which I trust this Bank will not fail to participate. 
 
 II. QuESTICiN. 
 
 Can the public debt be paid off at periods^ earlier than now arranged for, 
 and if so, how can it be effected ? 
 
 Answer. 
 
 The periods for the payment^ of the several instalments of the public 
 
 debt, have been fixed by law and embodied by contracts with the public 
 
 • creditors. These contracts cannot be changed without their consent. As 
 
 now arranged, the several debts payable by the Bank, fall due as follows : 
 
 1st Jan. 1848, Rail Road 6 per cents -.$196,873 71 
 
 1st « 1850, " " _- 196.873 71 
 
 . 1st " 1852, " ." 196^73 71 
 
 *lst " 1858, Fire Loan 5 per cents, in London 535,461 12 
 
 1st " 1860 « " " 482,222 22 
 
 1st " 1868 " " « '. 538.794 44 
 
 1st " -1.870 " " " 325',808 92 
 
 The importance of the matters embraced in these questions requires a 
 full examination of the subjects embraced. By the foregoing, it is shown 
 that the debts of the State for which the Bank is pledged as security, run 
 over a space of 22 years from the Igt January next. 
 
 ♦ Exchange is included in that payable in England 
 
REPORTS OF INVESTIGATING COMMITTEES. 317 
 
 In addition to the general principle, whicli would make it desirable that 
 the public debt should be paid as early as it can be done without public loss, 
 there is one consideration connected with the Rank itself to make it pecu- 
 liarly so. The pledges of the institution which have been given to the 
 public creditors, establish a limitation on the power of the Legislature over 
 the Rank, which might operate, in a conceivable' condition of its affairs, as 
 a serious impediment to such Legislative action as might be urgently re- 
 quired by the public interests. To adopt Legislative action inconsistent 
 with the contracts made with the public creditors, however it' might com- 
 port with convenience or interest in other respects, would inflict a wound 
 on the character and credit of the State which no pecuniary advantage 
 would justify. 
 
 The removal of this restriction can only be effected by the extinguish- 
 ment of the existing contracts with the public creditors, either by purcha- 
 sing up their claims at once, or making a new contract by which they will 
 agree to surrender their present demands and take new stocks without the 
 security of the Rank. 
 
 The immediate purchase and extinguishment of so large a debt is not 
 practicable^ — and the . object can only be reached by inducing the public 
 creditors to surrender their old contracts and take new stocks for those they 
 now hold. It will be observed that there- are two objects in view. They 
 are, 
 
 1st. To obtain from the creditors of the State a surrender of the stocks 
 they now hold, and the substitution of others payable by annual instal- 
 ments at earlier dates, retaining their security. " , 
 
 2d. The relinquishment by them of the security which they now hold 
 on the Rank. . - 
 
 1st. It will be observed, that if both these objects can be accomplished 
 at the same time, they do not, in the slightest degree, conflict or interfere, 
 but that both can be brought into harmonious combination, if the assent 
 of the public creditors can be obtained. 
 The question then presents for inquiry, 
 Can the assent of the public creditors be obtained ? and 
 Is it advisable for the State to make the effort 1 
 
 In regard to th^ first of these, I am not sufficiently advised to give any 
 definite opinion. ' I am by no means sanguine that the effort would be 
 successful. 
 
 The views of Gen. McDuffie,' our agent, and of Messrs. Raring, Rrothers 
 & Co. with whom the Fire Loan was made, and of Messrs. Hambro & 
 Son, shbw that great value is attached to the security given to the Fire 
 Loans by the pledge of the Rank. 
 
 In the precarious condition of the credit of the American States, it is 
 extremely doubtful if such a proposition would be acceded to, and it is not 
 improbable that even the fact of its being made, might be construed un- 
 favorably to our credit. 
 
 I regret that the time between this and the session of the Legislature, 
 will not be sufficient to enable me to obtain satisfactory information on 
 the point. 
 
 Rut it would seem unadvisable for us to make any attempt which 
 might be construed to our disadvantage, and tend to shake our credit , 
 without all the consequences being provided against beforehand, by such 
 
318 REPORTS OF INVESTiaATING COMMITTEES. 
 
 an understanding between us and the parties, as would prevent miscon- 
 ception. 
 
 I will only add, that I will give my aid in every way, to carry out this 
 measure,, if it is deemed advisable to make the effort. 
 
 2d. This brings us now to the second and niain point, viz : To obtain 
 from the creditors of the State a surrender of the stocks they now hold, 
 and the substitution of others, payable by instalments at earlier dates. 
 A new arrangement with the public creditors which would break the heavy 
 sums payable in 1858-60-68 and 70, into earlier annual payments, distri- 
 buting them from 1853 until the whole public debt is paid off, would be 
 greatly to the public advantage, in all its bearings on the Bank and the 
 community. The advantages are so great, that the object should be at- 
 tained even by sacrifices, which will be compensated by those advantages. 
 The objection to the present arrangement is, that it postpones the pay- 
 ments of the Fire Loans to remote periods, and then causes them to be 
 paid in such large amounts, that they must ine\dtably produce derangements 
 and irregularities in the operations of the Bank, unfavorable to proper 
 banking and to safe commercial business. 
 
 Fluctuations in the capital employed, arid in the amount and character 
 of discounts, are by no means desirable. 
 
 The Rail Road 6 per cents, amounting to $590,621 14,^ payable in sums 
 of $196,873 71 on the 1st January, 1848, 1850, and 1852, will keep the 
 capital and means of discount under a gentle control, which will sufficiently 
 preserve the safe balance. 
 
 But from 1852 to 1858, no part of the public debt is payable, during 
 which time, the profits will probably reach near $500,000, which will re- 
 main in Bank increasing its operartive means or capital. 
 
 On the first January, 1858, about $600,000 will be required at once, to 
 pay the first Fire Loan instalment, and interest on other stocks. 
 
 The sudden withdrawal of $600,000 at one operation, however prudent- 
 ly effected, will necessarily be felt in every branch of business. The next 
 instalment is due in 1860, and will, in like manner, withdraw near $500,- 
 000 at a single operation, producing even greater derangement and irregu- 
 larity. 
 
 Then succeed eight years, during which, profits again accumulate, and 
 swell the operative capital by something like $520,000, which will be em- 
 ployed and mingled up in the general business of the community, and 
 must again be called in suddenly, to be paid Out for another instalment of 
 $500,000 On 1st January, 1868, to be followed, two years after, on 1st 
 January, 1870^ by the, last payment of $325,000, paid out in the same 
 way. 
 
 These fluctuations of capital, producing heavy shiftings of funds, con- 
 centrated in large amounts on single -points of time so unequally distribu- 
 ted, cannot" fail to produce irregularity, exceedingly unfavorable to sound- 
 ness in business and safety in banking ; and these causes will operate the 
 more stringently in this case, from the fact that a large portion of these 
 heavy payments have to be made in England, where no part of what is paid 
 out, will find its way ba<3k into the channels of our business, to alleviate, 
 through other sources, the embarrassments its withdrawal has created. 
 
 There is no point of view, in which such a state of things is not unfa- 
 vorable to the public good. 
 
 The Bank is far more liable to fall into errors in its administration, ancj 
 
REPORTS OF INVESTiaATING COMMITTEES. 319 
 
 to sustain losses, from the great expansions and contractions wliicli its bu- 
 siness must necessarily undergo, while legitimate commerce is disturbed 
 and agitated by these irregular ebbs and Sowings of its springs. There 
 is even hazard to the Bank itself in such a condition of things. We felt 
 this in 1840, when, under the general suspension of specie payments hj 
 other Banks, and our circulation was contracted to the lowest point, we 
 were called on to pay off $800,000 of 6 per cents, make loans to the Fire 
 Loan borrowers, advance the expenses of the State Government, redeem 
 our deposites and circulation, to an aggregate sum of a million and a quar- 
 ter of dollars within a few months. Such shocks cannot be often and 
 safely encountered, and should be guarded against at almost any cost. 
 
 The same dangers may again be opened upon us in 1858, '60, '68, '70, 
 if we do not take timely measures to prevent them. 
 
 If the arrangement which I have suggested meets approval, we have 
 five years before us to effect it before the first payment, in 1853, would-be 
 made under it. 
 
 In comparison with the benefits in its management, the security of its 
 funds, and that of the Bank itself, against such extremities as I have 
 pointed out, the payment of a reasonably increased rate of interest should 
 form no sufficient ground for rejecting it. 
 
 The distribution of the payments of the Fire Loan debt, intb annual or 
 biennial instalments, begipining 1st January, 1853, will prove, (for the 
 dangers indicated) a simple and effectual remedy. 
 
 The payments of the Rail Road six per cents, 1848, 1850 and 185^, 
 will act in the same way until that time, and if the arrangement can be 
 made, to begin at their expiration to make the payments on the Fire 
 Loans, and continue them annually in instalments of about $100,000, the 
 whole could be paid and cancelled by or before 1870, the period now limit- 
 ed by the Act of the Legislature. In fact, I see no reason to doubt but 
 it might be accomplished even as early as 1865, without inconvenience, 
 thus anticipating the final extinction of these debts by some years. 
 
 The annual instalments as thus proposed, would about absorb the annu- 
 al profits, prevent their accumulating in the sinking fund and being haz- 
 arded for years in loans to create expansions and fluctuations, and give to 
 the operations of the Bank the regularity and steadiness most conducive 
 to safe and wholesome business. 
 
 The only mode of accomplishing an arrangement so desirable, is to 
 make a new contract with the public creditors, by which they will be in- 
 duced to surrender the stocks they now hold, and take new stocks therefor, 
 having the times arranged as 1 have suggested. This can be effected but 
 in one way, viz : by making it their interest to do so, and that will be ef- 
 fected by raising the interest to such a rate as will compensate them for 
 shorter investment's. What that rate would be, I am not now prepared to 
 suggest, but that it could be adjusted on terms of equality and fairness to 
 both paf ties, I see no reason to doubt. 
 
 It may be done by the Bank itself, acting under authority of the Le- 
 gislature, or by an agent specially authorized for that purpose. If the au- 
 thority is delegated to the Bank, its means for negotiating are already or- 
 ganized in its existing agencies established in Loudon, while its direction, 
 fully informed of the bearings of the whole subject, would be less likely to 
 fall into any errors in arranging the details, which might disturb the har- 
 monious working of the measure. 
 
320 REPORTS OF INVESTIGATING COMMITTEES. 
 
 It may seem an objection to this measure, that to effect it, a higher rate 
 of interest will have to be paid. But if we consider the subject in all its 
 aspects, we may see cause to doubt if this objection is not more than bal- 
 anced on the other hand ; in fact, it is quite probable it would prove in 
 tl;e end the most economical. It is hardly to be expected that no losses 
 would be incurred in the administration of funds so long on hand ; they 
 would probably balance the increased interest, while the annual payment 
 by the Bank of $100,000, would produce that gentle and wholesome pres- 
 sure, which would make its directors more prudent and successful in man- 
 aging the funds of the institution. 
 
 III. Question. 
 
 Is the mode established by the resolulfioti of 9th Dec. 1842, for ascer- 
 taining the fitness of directors, by exhibiting in a private report to the 
 Legislature, the state of their accounts on the 1 st day of each month, use- 
 ful or injurious ? What is its effect ? And can any better plan be sug- 
 gested ? ■ . . 
 
 Answer. 
 
 The exhibit required of the state of the director's accoimt on the 1st of 
 each month, is not such a statement as will giv« a correct idea of either 
 the business or fitness of a director. It is but part of the. evidence requi- 
 site, and in the form it is given, is as often calculated to lead to erroneous 
 conclusions as to correct ones 
 
 It is but part of the evidence which should decide, for it is not so much 
 the amount of his account, as the reasonableness of the amount, reference 
 being had to the capital and business of the director, and to the security 
 for the debts ; and there is nothing required or allowed to be given, which 
 will show these. What would be an enormous accommodation to a man of 
 small capital and business, with weak security, would be a small and rea- 
 sonable amount for another of large capital and extensive business, and 
 ample security, If you look solely to me amount of a director's account, 
 very erroneous conclusions may be drawn. 
 
 The director who brings to a Bank the best and largest account, and the 
 best and safest customers, if himself a man of intelligence and probity, is 
 the most useful and desirable. Such men are sought for as directors by 
 all our Banks, and aire desirable exactly in the proportion that they are 
 intelligent, honest, and can bring business of the right description. There 
 is no Bank conducted on ta-ue business principles, that will not be gainer 
 in extending larg« accommodations to such a director. 
 
 I have said the present mode of reporting the accounts of the directors, 
 is even calculated to lead to erroneous conclusions, so much so, as to do 
 such injury to the credit and business and sensibility of mercantile men 
 that no advantages we can offer, would be sufficient to induce some of the 
 most desirable and best qualified for that office, to be. directors in our Bank. 
 In fact, our Bank has, from time to time, lost some of its best directors 
 from this cause. They have felt that their accounts have not been under- 
 stood, their credit has been brought into question, their feelings have been 
 wounded, and they have transferred their useful services to other institu- 
 tions. Keenly alive to their own interests, these institutions are always on 
 the look out for such directors, and gladly invite them to seats at their 
 
IIEPORTS OF INVESTIGATING COMMITTEES. 321 
 
 boards^ where their accommodations are more extended, and they are free 
 from the exposure of th(^ir a^airs, and the vexatious, and sometimes very 
 injurious effects of public reports of their accounts. 
 
 But it is perhaps better that I should illustrate more explicitly, how- 
 erroneous conclusions may be drawn from these reports. I have said 
 before, that they furnish only a part of the evidence" necessary to forming 
 a correct opinion as to the accounts themselves, or the fitness of the Direc- 
 tors for the place. The balance of that evidence are the items of the 
 accounts, showing the nature of the debts ; the value or sufficiency of the 
 security ; and the deposit account of the Director — these, with his charac- - 
 ter fqr business and probity, constitute the elements out of which a proper 
 estimate of the fitness of the Director is t6 be formed. Now, while the 
 President's report is required to give the amount of the Director's ac- 
 count, it cannot give a 'single fact to ^how, either th^ character, good or 
 bad, or the items of the account ; or the nature of the debts ; or the 
 names or sufficiency or insufficiency of the security ; or the deposits made 
 by the Director. The charter very wisely forbids the exposure of the 
 names and accounts of the customer^ of the Bank, and even if the Direc- 
 tor desired it, no officer of the Bank can, without a violation of duty, 
 make such disclosures," except to a Committee or the Comptroller General. 
 I say the charter wisely forbids the exposure of accounts, because no mail 
 in good credit will allow his name, either as principal or indorser, to go 
 into a bank which publishes his transactions with it — ;^^the good customers 
 as well as good directors would be driven off, and their places be supplied 
 by those who were refused in other Banks, and whose necessities compel 
 them to submit to what men of sound credit consider a degradation and 
 an injury. 
 
 The accounts of the director consists of discounts directly to himself, or 
 to others on his indorsement. In many cases, as of factors for instance, 
 the loan which is apparently to himself, is, in reality, for his planter cus- 
 tomers, being for means to make advances on their crops. A factor's 
 account for " liabilities," is almost always predicated on produce on hand 
 or to be received, and is most generally ah indorsement or acceptance of 
 drafts drawn by the owner, to anticipate the sale of the produce. And so 
 the account of a wholesale merchant is largely composed of the notes of 
 his country mer-chant customers, indorsed by him, and offered for discount 
 a little' before they are due. These debts are really the debts of others ; 
 whose credit and standing are good, but yet they stand charged against the 
 director whose name is upon them. 
 
 The aggregate may often amount to a large sum, and, unexplained is 
 calculated to excite distrust, but if it were known that it often is but the 
 debts of a great many persons of large property, and is to be paid out of 
 their crops when sold, or by their country merchants when due, the misap- 
 prehension would not arise. 
 
 It is a fact well known, that in other banks of this city there are 
 directors whose accommodations of this sort amount to more than double 
 what is extended to ours, without ever having created among the stock- 
 holders the slightest uneasiness. Indeed, it may safely be said, that in 
 these institutions such men are sought for as directors, and the records of 
 our bank show that many of the best directors it has ever had, yielding to 
 the greater advantages and protection offered by the private banks for their 
 business and feelings, have transferred from this Bank to them their 
 services and business. No class of business is safer, more useful to a com- 
 
 41 
 
322 REPORTS OF INVESTIGATING C0MMITT*:ES 
 
 munity, or more desirable to .a bank, than that of the large factor or 
 wholesale merchant, and yet none is so likely to mislead the Legislature, 
 as to a directqr who is one, without explanations which the resolution does 
 not call for, and which the charter wisely prohibits being given. 
 
 If the charter were eyen amended so as to allow the explanations, it 
 would introduce a practice repudiated in all banks, opposed to all com- 
 mercial sensibility, and which would inevitably lead to the loss of all good 
 directors and good customers, and fatally affect the business and credit of 
 the bank itself 
 
 The next branch of the inquiry, is, whether any better mode of ascer- 
 taining the fitness of a director can be recommended ; and what that plan 
 should be, is a question of no little difficulty. While my mind is clear as to 
 the evils of the present system, it is not equally Qlear as to the remedy. 
 It has seemed to me, however, that in respect to their accounts, a safer and 
 better mgde than the present, would be to create a board of supervision, 
 whose duty it should be. to examine monthly, quarterly, or semi annually, 
 the accounts of the directors, in all the particulars I have indicated above, 
 making it their -duty, if they observed any departure from the line of pru- 
 dent and proper credits, to calHhe attention of the Board of Directors to 
 .it, and if it was not rectified, to report the fact to ^he Legislature. This 
 board might consist of the Comptroller General, the 'Attorney General, 
 and the Treasurer of the Lower Division. 
 
 If such a iDoaird should be deemed ^ advisable, it should not betjallowied 
 to supercede th&;Hennial Bank Committee of the ^J-i.e^Jature, but might, 
 in its workingj^^i^-auxiliary to it, and thus enjabie" the Legislature to have 
 at all times a vigilant eye over th^. Ban£ 
 
 A confidentiaWre'port from such a board would give to the Legislature 
 better iniSiwitation and views in regard to its directors, and enable it to 
 judge more corre^ctly of their fitness and value, and of their solvency and 
 safety. 
 
 . . COLLECTION OF DEBTS DUE TO THE BANK. 
 
 IV, Question. 
 
 Is the present the best mode of collecting your debts, or could it be im- 
 proved so as to benefit the public interest, and without disadvantage to the 
 debtor? 
 
 Answer. 
 
 The courts are open to this Bank for the collection of its debts, in the 
 same way as to other corporations, but owing to the peculiar character of 
 this Bank, the purposes for which it was created, the duties which are de- 
 volved upon it, and the nature of its negotiations, it differs in so many 
 respects from other institutions, as to render it an exception to the rules of 
 business adapted to them, and renders the facilities for collecting debts 
 offered by the courts, inadequate, in many respects, to what its business 
 and the public interests require. My attention was drawn to this subject 
 very early after I was elected to preside over the Bank. After very care- 
 fully examining the subject, it was brought before the Legislature in the 
 annual report of 1841, (Comp. 407,) again in 1843, (Comp. 440,) and 
 since in 1846. 
 
 1 
 
I 
 
 REPORTS OF INVESTIGATING COMMITTEES 323 
 
 The views submitted from the Board of Directors, ou these several 
 occasions, (to which I beg leave to refer you,) so far from having lost any 
 weight, have derived additional importance and conviction from subsequent 
 experience. The sj^^stem suggested in 1841, is believed to be the best that 
 can be devised, and unless it, of something analogous to it, is adopted, 
 risks and losses from this source must continue to occur, and probably to 
 increase. . ' 
 
 This subject is one of such importance as to' demand a more full 
 developement, and with the permission of the Committee, I will briefly 
 submit such views as seem to me deserving the consideration of the public 
 authorities. 
 
 This Bank is public property : it was established, as the proceedings in 
 which originated its charter, and all subsequent history prove, not as a 
 Bank in the strict technical meaning which that term signifies, but as one 
 combining otlier functions, and to be conducted on principles and with 
 views essentially diiFering. ' It is unnecessary to designate all tlie points of 
 difference ; it is enough for the present purpose, to confine my illustration 
 to that which constitutes the ground work of the present investigation. 
 The Bank was, in one respect, made a loan office, for the accommodation 
 of the planting and other industrial interests; modified, it is i^rue, by 
 assimilating its discounts to loans and its loans to discounts; but essenti- 
 ally differing in this new mode of banking from any system pursued by 
 any other Bank. 
 
 Established out of the money of the people ; owned by the State ; created 
 with the avowed purpose of affording relief to' them in a period of great 
 pecuniary difficulty, it has for a third of a century conformed its practice 
 to the principles in which it had its origin, and it must continue to conform 
 to these principles, or it loses an essential feature of usefulness, and its • 
 chief recommendation for tlie support of the people. While the accommo- 
 dations of other Banks are confined chiefly to the people and business near 
 them, these principles open the accommodations of this Bank to every part 
 of the State. In times of distress, applications for its aid come in as 
 naturally from citizens of Pendleton or Spartanburg, as from those of 
 Charleston or Columbia. They have equal claims on the consideration of 
 the directors, let them come from what part of the State they may ; and 
 these claims have always been considered and acted on in the spirit and 
 policy which induced the establishment of the Bank. The consequence is, 
 that debts have been contracted all over the State. The borrowers in the 
 country, as a class, differ in two important particulars from those in the 
 city and towns where the mother and branch Banks are located, viz :— 
 requiring their accommodations at longer periods, and being less punctual 
 in making renewals and paying up instalments. In the city and towns, 
 our chief customers are merchants, to whom bank credit is as necessary as 
 capital, and as q, protest would destroy that, and with it their standing in 
 business, they are scrupulously punctual in meeting the requirements of 
 the Bank ; but no such fearful consequences attach to failure. or punc- 
 tuality, to debtors in the country. They know that men's credit is' based 
 there more on the property they can exhibit ; that their neighbors will not 
 forget that their crops are their source of income, and realized only once 
 a year, and that their distance from the point of payment and the difficulty 
 of making it frequently and punctually, is very great. In short, that a 
 protest is not bankruptcy, when the party can shew ample property in land 
 
324 REPORTS OF INVESTIGATING COMMITTEES. 
 
 and slaves to pay all. Payments, therefore, are not so prompt from this 
 class of debtors, although ultimate losses from them are very rare. 
 
 This habit, while it creates irregularity in the business of the bank to 
 some extent, renders suit for collections more frequent in this than in 
 private institutions. These banks have no such relations to the people: 
 they are intended simply to make the' most money they can for their stock 
 holders in a fair and regular commercial business, and they confine their 
 accommodations to the narrowest limits consistent witL the full, safe and 
 profitable employment of their funds. 
 
 In fact, they rarely allow a sympathy for a customer to make them grant 
 a loan, especially to a planter or farmer, who lives at a remote part of the 
 State. It is neither, strictly speaking, a banking operation nor one so pro- 
 fitable to them as the employment of their funds in discounts and exchang- 
 es immediately at their door. But the very circumstances which would 
 make it their duty to refuse such a loan, might, and often do, make it the 
 duty of this Bank to grant it, viz : to save property from being sacrificed 
 and a citizen or number of citizens from being ruined. The State has so 
 deep an interest in doing so, that she created this Bank for this amongst 
 other purposes, and she has sustained it for thirty-five years, while it has 
 made this a cardinal point of its policy. 
 
 The result of this relation between this Bank and the people, has j^een 
 to give a far wider extent to its loans all over the State, than has ever 
 existed with any other Bank, and with these widely extended operations 
 there come many instances of Iferdiness in payments, which render a resort 
 to suits in the courts necessary. 
 
 These suits must, in most instances, be brought in the districts where the 
 parties reside, and it happens, not unfrequently, that the maker and indor- 
 sers of the same paper reside in difi'erent districts, and even in difierent 
 circuits. In such cases the suits for the same debt must often be brought 
 by different attorneys ; and in some cases, it has occurred that the cause of 
 action was needed at the same time at courts in two or more circuits, caus- 
 ing delays in obtaining judgments, or danger of non-suits. 
 
 But the greatest injury that results to 4he interests of the Bank, and of 
 course to the public, comes from the almost insuperable difficulty of giving 
 to cases in suit that regular attention and supervision which they require. 
 There is no class of its business so likely so be neglected. It is with the 
 greatest reluctance a note is put in suit in any district out of that in which 
 the Bank or Branch that sues it is situated. 
 
 In most cases, the moment it is sued on, the parties lo^e much of their 
 sensibility to, and desire for its liquidation, and consider themselves fairly 
 entitled to all the delay they can obtain. The sympathies of the sheriffs 
 are naturally more with their neighbors than a distant corporation. The 
 cases are scattered, one here and another there. The attorneys are em- 
 ployed as near the parties as convenient, that they may see after and pro- 
 tect the interests of the Bank, but as the cases are not numerous enough at 
 distant points to warrant an exclusive attention to them, we are not able to 
 obtain such regular reports or particular information at all times as the 
 interests of the public require. The variety and complexity of circum- 
 stances attending such cases, in their various stages of progress, and which 
 it is very desirable should be always known in the Bank, cannot be com- 
 municated with systematic regularity, when they must come from so many 
 different agents, residing at remote points, and varying as much in the 
 
 I 
 
I 
 
 REPORTS OF INVESTIGATING COMMITTEES. 325 
 
 structure of their minds and modes of transacting business, as they do in 
 their places of residence. 
 
 Various systems, or attempts at systems, hare been made to obviate 
 these difficulties, In the earlier periods of the bank history, this branch 
 of its business had not grown to its present importance, and no great incon- 
 venience or loss reslilted from the want of any system. The Attorney 
 General in Charleston, and the Solicitors in the country^circuits, transacted 
 the business, receiving compensation for each case ; the Attorney General 
 receiving a salary as general counsel. This was so far modified at another 
 time, that the Solicitors were also compensated by salaries. But it was 
 found that the duties performed were very unequal; one doiug more than 
 his salary fairly compensated, and another drawing a salary and having 
 nothing, or a very inadequate duty to perform for it, and these arrange- 
 ments were discontinued and each branch and the Mother Bank were left 
 to take such steps in each case, as the case itself required. This was an 
 experiment, adopted for the time, and to last no longer than it worked well, 
 or until the Legislature should provide for the exigeney, to Which their at- 
 tention has been repeatedly called. . 
 
 In both systems, that of employing the Attorney General and Solicitors 
 only, and that last resorted to, we found great practical difficulties. 
 
 The Solicitors were but five in number, while the judicial districts' are 
 twenty-nine, giving five or six districts to each. As each had his place of 
 residence, it is clear that in other districts he must commit cases to others, 
 partners or friends, or leave them, in many respects, exposed to accidents 
 and losses, which a more immedia^te and active supervision would often 
 prevent. Under these circumstances, to obtain regular, full and satisfacto- 
 ry reports of our cases after each term, showing their condition, what has 
 been done, and what omitted to be done in each, has been found imprac- 
 ticable. . • ' 
 
 The relation which exists between the Bank and its attorneys and soli- 
 citors, is not, in some respects, different from that existing between attor- 
 neys atid private clients. It has been supposed by many, that the bonds of 
 the Attorney General and Solicitors would cover any responsibilities they 
 might incur in transacting the business of the Bank. The fact-.is not so. 
 The employment of these officers by the Bank, is exactly on the same foot- 
 ing with the like relations with any other memJDers of the bar. 
 
 With these explanations, I will turn to the system which my judgment 
 suggests as calculated to work most for the welfare of all concerned. 
 
 I propose, in the first place^ that the Bank be allowed to select an attor- 
 ney and solicitor for the mother Bank in Charleston, and one for each of 
 the Branches, who shall be officers of the Bank, and give adequate bonds 
 and security for the faithful discharge of their duties. That the Board 
 shall have power to make, from time to time, regulations defining their du- 
 ties and enforcing their performance. That all suits and legal services 
 shall be performed at fixed rates of compensation or for a salary. To ena- 
 ble these three officers to do all the legal services of collection, they should 
 be allowed to bring their suits in the courts of the Districts in which the 
 contracts shall be made, or may mature, under such regulations as would 
 protect the defendants from any surprise or other disadvantage, 
 
 A requirement to serve the party with the writ, would obviate the first, 
 and a power to the judge, on good cause shewn, to order the case to be tried 
 in another district, would answer the last. 
 
 In suggesting this plan for consideration, I should point ou4its mode of 
 
326 REPORTS OF IxNVESTIGATlNG COMMITTEES. 
 
 operation upon the public interests. By this arrangefnent all the suits 
 which the Bank found it -necessary to institute for collecting its debts, 
 would be in the bands of three officers of the Bank and Branches, respon- 
 sible directly to them by tenure and bond of office. These officers, resi- 
 ding at the locality of the Bank or Branch with which they were respective- 
 ly connected, would at all times be prepared to give proper information, or 
 to receive instruction in every case and emergency. - The business thus 
 concentrated, would be worth the attention of the best counsel, and with 
 the services of such agents so devoted to the cases of the Bank, a perfect 
 supervision in every case and every part of the State can^ be obtained. — 
 This supervision may be rendered as perfect to us at the mother Bank for 
 the cases in suit from the Branches, as for those of the mother Bank itself. 
 This we would effect by requiring from each of the Bank attorneys, full 
 reports in every case in his hands at the end of every circuit, or twice a 
 year. The attorney of the Mother Bank reporting to its Board, and the 
 attorney of the Branch, not only to the Branch, but in duplicate to the 
 Mother Bank. 
 
 The forms of these reports can be easily arranged to draw out every 
 thing done during the term in each case, and they can be condensed in 
 books for the purpose, with indexes to the cases, affi)rding at a glance all the 
 information that the Board may desire, or any committee of the Legislature 
 may require in every case put in suit. 
 
 In these books the instructions given by the President or Board, as well 
 as the measures taken by the attorney, may all be embcdied. 
 
 I feel persuaded, that with such regulations, far more promptitude and 
 efficiency in securing and collecting our debts would be obtained. 
 
 But it may be objected that this is a novel, practice, and partial to the 
 Bank of the State. 
 
 The answer is obvious. It is not novel in principle, although it is some- 
 what in the mode proposed to apply it. 
 
 In the original charter, to obtain a loan it was required, in one class of 
 cases, to lodge a power of attorney to confess judgment on default of pay- 
 ment, (Comp. p. 4.) This does not propose to go so far, and does not ex- 
 clude a defendant from making a defence, as that did, nor from having the 
 case removed for trial to his own District, on a reasonable showing, whei'e 
 such a change of venue is necessary to. his defence. It becomes a part of 
 the arrangement, when the money is borrowed, that the borrower will not 
 put the Bank to the great trouble, expense and delay of following him into 
 a distant District and Court, to obtain its own, in the event of his default. 
 But it is said, that this measure would be partial and an advantage to this, 
 over other Banks. If it were an advantage given to one private corpora- 
 tion over another, the objection would have far more force ; or even if the 
 private Banks entered with us into that system of loans, to the citizens all 
 over the State, which they wholly reject, and leave to this Bank alone, 
 then too, there would be unfairness in denying them a similar privilege in 
 collections ; but while they take none of those burthens on their shoulders 
 which our charter, the public will and the laws impose on us, they surely 
 a ve no cause to complain, that while such duties are imposed on the Bank 
 of the State, the means are accorded to it to discharge these duties in a 
 manner most conducive to the public interest. But there is another reply ; 
 the privilege asked for, is not against, but for, the public. It is for the 
 protection of the interests of all and every one of the body politic. And 
 in her system the State recognizes a principle by her laws, that gives to 
 
REPORTS OF INVESTIGATING COMMITTEES. 327 
 
 herself, to the commonwealth, advantages which she concedes to no private 
 interests; thus she allows no statutes of limitation to bar her rights, and in 
 the distribution of the estates of deceased persons, she claims and enforces 
 a preference for her own demands against all others. 
 
 The interests of the public are higher, and entitled to more consideration 
 than those of individuals, and even if^there were no such duties imposed 
 on this Bank as those which I have shown compel it, by the spirit of its 
 charter and the object of its establishment, to extend its accommodations 
 ail over the State, still, as a public property, as an interest wholly belong- 
 ing to the people at large, it should, for their advantage, have every means 
 given it to protect its business, to make it safe, profitable and useful. 
 
 V. Question. 
 
 Does the circulation of this Rank depend, for its maintenance, on the 
 same principles as that of the private Ranks ; or is there anything which 
 modifies or afiects it differently? 
 
 Answer. ' 
 
 The circulation of Rank notes is maintained by the credit of the institu- 
 tion which issues them, and the share or proportion of notes which each 
 Rank can keep in general circulation, will, in a common way, be in some- 
 thing, like a fair proportion to the credit it has with the public. This credit 
 is again based upou and maintained by the capital, management, and ulti- 
 mate resources to redeem its circulation. Ry its management, I mean the 
 business it transacts, including its points of transaction and the mode of 
 transacting it. ' 
 
 All our Ranks have good capital, and have, by the fidelity and probity 
 of their management, justly preserved. the confidence of the public, and en- 
 joy in their full degree, these elements of credit. In some respects these 
 elements apply to a greater extent to this Rank, and give it proportionally 
 an advantage. 
 
 In the first place, having, . at Charleston, Columbia and Camden, three 
 important points of business, it extends more widely its facilities for pur- 
 chasing the produce and aiding thie commercial exchanges of the State. — 
 This puts a larger amount of its notes afloat ; the redemption of which is 
 provided for by the bills of exchange taken for them, which are drawn on 
 the produce itself, and otherwise made secure — a business, of great profit to 
 the Rank and utility to the community. 
 
 In the next place. Reyond those resources which the Rank has within 
 itself to convert its notes into coin, the State has added its pledge, in case 
 of its failing, that it will pay off all its liabilities. This is a resource far 
 beyond the limited liability of stockholders in the private Ranks. There is 
 no probability of ultimate loss on our notes, which gives them, in the esti- 
 mation of many, and for many purposes, the highest value that can be im- 
 parted to bank paper. We" have many evidences that they are preferred 
 by many who do not wish to spend or deposit their money, but hoard and 
 keep it themselves, in applications for large notes for that purpose, and in 
 the fragments of notes partially destroyed in such hoards, brought in to be 
 redeemed or replaced. The wide field we occupy through our branches 
 and connexions with the State, the nature of the operations I have ex- 
 plained, and the fact that the State stands pledged for its obligations, gives 
 
328 REPORTS OF INVESTIGATINO COMMITTEES. 
 
 its paper not only a free circulation in the State, bnt a high credit in the 
 adjoining States. There being no fear of any ultimate loss on its bills, 
 they hold their own at all points ; and although in all times they will bear 
 their proportion in being returned on the bank for commercial purposes, in 
 times of panic they will not be as rapidly returned from apprehensions of 
 failure. In fact, when there is fear of bank failures, the circulation and 
 deposits of this Bank are less affected by these kinds of alarms. We 
 have at such times found its deiposits increased, from the confidence re- 
 posed in the State, while the credit of its paper has not been depreciated. 
 
 Question. 
 
 If you can maintain a circulation larger than the private banks in pro- 
 portion to capital, can you do sd safely ? 
 
 Answer. 
 
 I have above expressed the opinion, that this Bank can maintain a lar- 
 ger circulation in proportion to Capital, than a private Bank, and I feel 
 warranted in adding that it can do so safely. The ability of a Bank to 
 keep a circulation out, depends on its credit, and -while it maintains that 
 unimpaired, and makes a fair use of it in safe business, to provide adequate 
 resources for redeeming its obligations, that credit will not be affected in- 
 juriously with intelligent men. An instance in point exists in the busi- 
 ness of the last year. At Columbia, "during the season for buying cotton, 
 we discounted $1,500,000 of cotton bills, or domestic exchanges, giving 
 that amount of our notes far circulation to the merchants. Besides being 
 drawn on the cotton itself, these exchanges were made more safe by in- 
 dorsements there, and by the acceptances and guaranties of factors who 
 received and sold the cotton here. 
 
 It was clear that these transactions aided the commerce and industry of 
 the State, realized a good profit to the Bank, and obtained, in these ex- 
 changes, or cotton drafts, a fund equ^l to specie, to meet and redeem the 
 notes of' the Bank put into circulation to discount them. We were not 
 sensible of any injurious effect on our credit by the operation, while we 
 have felt that it added to our strength and usefulness. Our branches ena- 
 ble us to do this business more safely and extensively than agencies, and 
 we have thus an advantage in this respect over the private Banks* 
 
 *KoTE.— In further explanation of the operation of the Bank, it may 
 properly be noted here, that the board believed the utility of the Bank and 
 the true principles of banking, called for the most active employment of its 
 capital and credit, which was compatible with safety — that the interest of 
 the commonwealth in all its classes and employments was best subserved 
 by affording the greatest accomjnodations and facilities for the transactions 
 of business, consistently with this principle ; and that by converting the 
 produce of the country into specie or specie funds to redeem them, we 
 could safely extend the circulation of our notes for that purpose ; we act- 
 ed accordingly, and gave our notes to the merchants to pay for the cotton 
 and other produce, taking their cotton drafts or exchanges in return, and 
 out of their proceeds purchased domestic and foreign exchanges and specie 
 to protect or redeem our paper. We have accordingly, during the year, 
 purchased by these means, of northern and foreign exchange $1,214,363 27, 
 
REPORTS OF INVESTIGATINa COMMITTEES. ^ 329 
 
 But the history of the past shows" that even without these resources, the 
 Bank has had, in its nationalty as the institution of the State, a vast source 
 of strength. Aided by this, and by the deposites of taxes and public offi- 
 cers, its discount line has given it power to ride through very stormy 
 periods in safety, meeting and redeem'ing its circulation as promptly as pre- 
 sented, and establishing its credit on the strong foundations of public con- 
 fidence. In considering these elements of credit and means for redeeming 
 our circulation, a word or two regarding the discount line, may not be out 
 of place. I am aware that there are many who do not attach much impor- 
 tance to a discount line as a means of meeting and redeeming its circula- 
 tion. As a Sole reliance, it would not prove an adequate provision ; and 
 especially would it prove delusive in a panic. The resources of Banks 
 consist of specie, specie funds, and notes or bills discounted, bonds and 
 stocks. These are not equally convertible at a moment's warning, but it 
 must be borne in mind, that all the liabilities of a Bank are not likely to 
 be presented at once. They come in, usually, in such a way as to allow 
 time to call in the resources of a Bank to meet them. There is. almost al- 
 ways some warning and time for preparation. The first demands are met 
 by specie, or specie funds on hand, and then by their other resources, 
 which are callled in as rapidly as the exigency requires. At such times, 
 stocks are not always found reliable ; in times of prosperity, they are high 
 and can be readily sold", but when adversity comes they feel its first tovi^h. — 
 confidence in them wavers, and they fall in market — to rely on them too 
 far is not safe — but in such cases we . iiave* always found our discounted 
 notes and bills much the most available. 
 
 From 1818 to 1821, a general commercial embarrassment of fearful 
 character, was aggravated by the selfish exactions' of the United States 
 Bank, which drained all of our Banks of their specie to send it to Phila- 
 delphia. The discount line alone enabled this Bank to sustain itself. 
 (See President Elliott's Reports, 1819, and 1824.) 
 
 The revulsion of 182^, and that of 1837, were periods of like trial ; 
 the latter was extended through 1839-40,. when it attained a power in its 
 intensity and concentration on this Bank, which no 'other institution in the 
 State has encountered. For a full exposition of these, circumstances I 
 refer you to the knnual Bank report of 4840. In all these periods, and in 
 the last especially, the circulation was redeemed, the depo&its paid, and 
 
 and .provided also, chiefly from New York'and England, $811,864 35 in 
 coin, of which over one-half was . imported from England. With these 
 means, we have had very ample supplies of specie and specie funds to pro- 
 tect and maintain the credit of our paper. 
 
 It has been judged most for the public interest to import the precious 
 metals requisite for our purposes, from those commercial points at a dis- 
 tance, to which we send our staples, as it in effect converts 'them into spe- 
 cie or specie equivalents here, imparting a healthy and vigorous vitality to 
 our ojperations and the business of the country. If all our Banks acted 
 on the same principle, an^S in a like degree, the country would be provided 
 'in any emergency with a sufficiency of coin to protect its circiflation and 
 business from the disastrous effects of sudden revulsions. S^om& act fairly 
 up to the principle, while some rely on the supplies they can pick up in 
 
 42 
 
330 REPORTS OF INVESTIGATING COMMITTEEB. 
 
 the credit of the State protected and sustained, almost exclusively by the 
 assistance of the discount line. A heavy public debt of $800,000, fire 
 loans, State expenses, and circulation, were paid off to the amount of a mil- 
 lion and a quarter of dollars, by means, the greater part of which came 
 from the bonds, notes and bills discounted. 
 
 Besides the facts abpve stated, I oppose to the opinions of those who 
 undervalue this resource, the opinion of one who thoroughly understood 
 this subject, having added to its study an enlightened experience that 
 gave to his views the "highest authority of wisdom. In his celebrated re- 
 ■port of 1819,. Mr. Elliott, in treating on this subject, says: 
 
 " We may now perceive how idle is much of the clamor which has been 
 lately excited about Banks. In many cases, the debts due to a Bank, the 
 notes which it has discounted, and for which its paper has been actually 
 issued, have been considered in the estimate made of the situation of a 
 Bank as of no importance. One would suppose, from some views taken 
 of the subject, that the property of the country had ceased to bear any val- 
 ue, that every man was in a state of insolvency. We believe that if causes 
 should suddenly occur to produce what is called a run upon Banks, that is, 
 if all the paper issued by a Bank should be brought back to it, and pay- 
 ment unexpectedly and immediately demanded, no institution doing busi- 
 ness actively, has ever been prepared to meet such a pressure. Banks, 
 like individuals, make their calculations upon the ordinary occurrences of 
 life, and do not feel themselves obliged to be prepared at all times to meet 
 those events which may never happen. They make, generally, liberal pro- 
 vision for the contingencies that are probable, and beyond them calculate 
 that they shall always be able to collect their debts as rapidly as circum- 
 stances may require. Extraordinary events may baffle their expectations, 
 because it will commonly happen that the same causes which produce great 
 and general pressure on the Banks, create an equal pressure on the indi- 
 viduals who are indebted to them. Embarrassments of this kind are very 
 far and very different from a state of insolvency." 
 
 the domestic market, or procure from the others. There is not only un- 
 fairness in this, for all should contribute to keep up the supply, but in 
 times of scarcity and panic, it will be a disturbing cause that will aggra- 
 vate commercial embarrassments, increase the pressure on and from the 
 Banks, and enhance the probabilities of suspending specie payments — the 
 latter circumstance being the more likely to occur, as from its commercial 
 position, Charleston must hereafter always be a point on which the interior 
 towns will accumulate balances, and draw, or be enabled to draw, on her 
 banks for specie — a liability which will be increased exactly in the ratio 
 that her rail road communications extend her commerce into Georgia, Ala- 
 bama, Tennessee, North Carolina and other parts, and make her the reci- 
 pient of their produce and trade. 
 
 It may be asked, is there any remedy for this ? The remedy lies partly 
 in the power of those who manage the Banks themselves— a change of 
 their system — and partly, perhaps, in the power of the Legislature. If a 
 law was enacted to prevent any Bank from paying out or passing off the 
 notes of any Bank but its own, each then would be under the necessity of 
 ceasing business, or doing it with its own notes, and of providing specie to 
 
REPORTS OF INVESTIGATING COMMITTEES. 331 
 
 VI. Question. 
 
 Is the amount charged on the Dr, side of your general account as" Bank 
 notes issued," the amount in actual circulation ? 
 
 Answer. 
 
 No. By looking on the Cr. side of the general statement, you will see 
 " Bills of this Bank," and the sum opposite that entry is the amount of the 
 notes charged as issued, which arc in the han'ds of the Cashier and Tellers, 
 and not in circulation. To this is also to be added what is at the branches, 
 which is charged in our accounts as in circulation from the time we send 
 it to them ; and that, too, notwithstanding large amounts of them lie there 
 unemployed, and not out against us in reality as a liability. 
 
 VII. Question. 
 
 Have all the notes which the Bank has issued from the commeucement 
 of its existence been charged against it in the statement of issues ? Or 
 has any deduction or credit ever been made for what may have been lost 
 or destroyed ? 
 
 Answer. 
 
 Every note the Bank has ever issued is charged against it. They amount 
 
 in the aggregate to ^ $6,"416,427 18 
 
 Of these there have been cancelled and burnt np to the 1st 
 
 Oct, 1847._ 4,854,390 80 
 
 Balance as charged in the general account $ 1 ,562,036 38 
 
 redeem the full share of the general circulation composed of its own notes, 
 giving thereby a wider basis of security for a sound currency, for the pre- 
 vention or suspension, and for the ultimate redemption of all the Bank 
 paper in circulation. Our views on these points have been given hereto- 
 fore in 1840, 1841, and 1842, in the annual reports, to which I beg 
 leave to refer you. We have seen no cause to change them since. 
 
 The policy of providing by purchase in the regular way. of commerce, 
 specie and specie funds, has always been that regardedrand acted on, as the 
 true one in this institution. President Elliott, in his report of 18 19, states 
 that except the very small sum of $60,000 drawn at the first organization 
 of this Bank in 1813, "to meet any demand which the exigencies of the 
 State during the continuance of the war might require," " we have never 
 knowingly or intentionally drawn one dollar from the vaults of any other 
 Bank." He believed that all specie brought in from abroad, was capital 
 added to the common stock of the country — that all the Banks had-a com* 
 mon interest and ample field to employ their capital, and should not prey 
 on each other ; and concludes, " we felt, therefore, no wish to cramp or 
 cripple the operations of other institutions ; ^e were rather gratified that 
 the Stat^ should enjoy the full advantages of all its pecuniary resources. 
 We consequently drew from the commerce of the country, not from its 
 Banks, the specie which appeared to be necessary to support the credit of 
 our paper." ^ 
 
3a2 REPORTS OF INVESTIGATING COMMITTEES. 
 
 In this balance, no allowance or credit has been made for any notes lost 
 or destroyed, except those which have been redeemed, cancelled and de- 
 stroyed by the board of directors at the Baukj and which are regularly 
 recorded. 
 
 Question. 
 
 Is there any reason for believing that any considerable portion of those 
 charged in your general statement are destroyed, or will never be presented 
 for payment ? • 
 
 - ANS^yEIt.' 
 
 There are good reasons for believing that a very considerable portion of 
 the notes issued by the Bank and charged against it as liabilitie, are de- 
 stroyed and will- never J)e presented for payment. An amount more than 
 equal to any debts due to the Bank which are in the least degree ques- 
 tionable. 
 
 in 1839 and '40, a test was applied, which if it did not afford conclusive 
 proof of the extent of the loss on the notes put in circulation, gives some 
 data for approximating it. All the city Banks, except those of the State 
 and the Charleston Ban]£, had Suspended specie payments. Specie was 
 worth three per cent, more than the notes of the suspended institutions. 
 All ordinary business payments were made in their paper, while the notes 
 of the specie'paying banks came back upon them in an incessant stream to 
 draw specie. The taxes were, by law, to-be paid in specie, or in the notes 
 of specie paying banks, and collected in all parts of the State large 
 amounts of our notes which were brought in to us. We were compelled 
 to collect from our discounts, in less than six months, over six hundred 
 thousand dollars, besides calling in heavy payments on bonds, considera- 
 ble portions of which were paid in our own notes. By these means the 
 notes standing charged as issued by the bank, from the beginning to that 
 day, and amounting to^ upwards of $5,000,000, had all been returned and 
 redeemed, except $339,000. Of these, it was a rare incident to meet one 
 as large or above the denomination of five dollars, in circulation ; and it 
 was then believed, (and we have seen no reason since to question the cor- 
 rectness of that belief,) that much the greater part, at least 200,000, had 
 been utterly lost and destroyed. - ' • 
 
 The bank commenced its issiies in 1813, thirty-four years ago. It issued 
 then, notes of denominations from $100, down to 6^ cents. A large pro- 
 portion was of $5, 2, 1, 5a-100, 25-100, 12f 100, and 6^-100. The issuing 
 of Bank Notes under $5, was forbidden to any other bank, co^-poration or 
 individual. These small notes entered largely not only into the circula- 
 tion of this State, but of the adjoining States, and were to be met, as are 
 now those of and above^$l, all over this and the neighboring States. I 
 have had a table prepared, showing, of the issues of the several plates of 
 each denomination, the balance out on the 1st October, 1841, and what has 
 been brought in and cancelled each two years afterwards, to the 1st of 
 October, 1847. 
 
 By carefully examining this table, the Committee will see that of -the 
 earlier issues, very few, especially of the denominations of and under $5, 
 have come in; the amounts diminish at each biennial balancing. Of the 
 notes of $5 plate. No. I, the balance out is charged at $11,045 — the last 
 issue was in 1822, and for two years past only $100 have been presented. 
 So of plate No. i,'of $2, the balance out is charged at $10,263, the last 
 
i 
 
 REPORTS OF INVESTIGATING COMMITTEES. 333 
 
 issue WAS in 1 824, and for the last six years only $32 has been presented. 
 So of plate No. 1, of $1, the last isdiie was in 1830; the balance now 
 charged, $17,266, and for two years past only $30 have been presented; 
 and finally, of the notes under $1, the balance charged is $78,395.38, while 
 the amount presented for the last two years, is only $170,62. 
 
 A constant observation has been kept over these issues, with a view to 
 form some idea of the probable amount which may be considered as lost, 
 and to that extent a gain to the Bank. The wide area of their circulation, 
 the many hands they have passed through, the destructibility of the mate- 
 rial, and the inconvenience which would attend the returning on the Bank 
 the mutilated notes of small denomiuatious, and their consequent liability 
 to entire destruction, have all been considered, and they all concur in lead- 
 ing the mind to the conclusion, that very few of them remain in existence ; 
 a conclusion which accords with the constaptly diminishing amounts of each 
 returned on the Bank for redemption. I feelj therefore, fully warranted in 
 the opinion, that $200,000 or more, are now totally destroyed, and cannot 
 ever be presented against the Bank, constituting a clear gain to that extent. 
 But this would be too limited a view of the probable gain on the issue now 
 out, A considerable loss on that must occur before it is ever brought in 
 from the wide rounds of its circulation. 
 
 The whole profit from the losses already made, and that which Will enure 
 on the notes now out, will, in all probability, not be less than $250,000 ; 
 a sum more than suflicient to cover and make good any deficiency, if any 
 existed, in the means of the Bank. None such, however, exists that are 
 not provided for out of each year's profits, so as to keep the capital unim- 
 paired, and therefore this sum from lost circulation, may be fairly consid- 
 iered a profit realized. 
 
 Respectfully submitted, 
 
 F. H. ELMORE, President: 
 
334 REPORTS OF INVESTIGATING COMMITTEES. 
 
 Statement of the issues of tlm Bank of the State of South Carolina, front 
 June \st, 1841, to Oct. \st, 1847. 
 
 i3alance of bills of $100, No. 1, signed by S. Elliott. 
 
 First issue 1817. last 1823. 
 
 Bal. of bills of.$100. No. 1, signed C. J, Colcock. 
 
 Cancelled in 1844 , >. _. 
 
 First issue in 1830, 
 
 Bal. ofbillsof $100, No. 2.. 
 
 Cancelled in 1844 
 
 Issued in 1831 
 
 Issue of bills of $100, No. 3, seven half setts. 
 
 Cancelled in October, 1847. 
 
 Issued in 1B44, last 1847 _-^.__ 
 
 Issue of bills of $50, No. 1 , seven half sets. 
 
 Cancelled to 1st October, 1847 
 
 First issue 1844, last 1847- , . 
 
 Bal. of bills of $20, No. 1, signed S. Elliott 
 
 Cancelled to October, 1843. 8,000 
 
 do do 1845 _ 1,700 
 
 do 
 
 do 
 
 1847 _1,300 
 
 First issued 1813, last 1830 
 
 Bal of bills of $20, No. 1, signed C. J. Colcock 
 
 Cancelled to October 1843 ..4,000 
 
 do do 1845.__ 580 
 
 do do 1847-._ 1 360 
 
 All issued in 1830 _ 
 
 Issue of bills of $20, No. 2^ three sets. 
 First issue 1 844, last 1 847 
 
 Bal. of bills of $ 1 0, signed S. Elliott 
 
 Cancelled to October, 1843 1,840 
 
 do do 1845 960 
 
 do do 1847 160 
 
 First issue 1814, last 1820. 
 
 Bal. of bills of $10, signed S. Elliott 
 
 Cancelled to October, 1843 8,050 
 
 do 
 do 
 
 do 
 do 
 
 1845 10,790 
 
 1847. 
 
 1,350 
 
 Bal of bills of $10, No. 2, signed C. J. Colcock 
 
 Cancelled to October, 1843 _-.„__- 3,000 
 
 do do 
 
 do do 1847 
 
 First issue 1831, last 1833. 
 
 1845 18,710 
 
 1,290 
 
 11,400 
 900 
 
 24,100 
 .1,100 
 
 140,000 
 100 
 
 70,000 
 50 
 
 52,000 
 
 11.000 
 
 38,010 
 
 4,940 
 
 5,120 
 
 2,960 
 
 40,780 
 
 26,190 
 
 70,000 
 
 23,000 
 
 2,500 
 
 10,500 
 
 23,000 
 
 139,900 
 
 69 950 
 
 41,000 
 
 28,070 
 
 24,000 
 
 2,160 
 
 14,590 
 
 47,000 
 
 I 
 
REPORTS OF INVESTIGATING COMMITTEES. 
 
 335 
 
 TABLE CONTINUED. 
 
 Bal. of bills of $10, No. 3 - I 
 
 52 005 
 
 
 Cancelled to October, 1843..._ 
 
 -. 70 
 
 
 
 do do 1845 - 
 
 -. 410 
 
 1,560 
 
 
 do do 1847 
 
 --!,080 
 
 50,445 
 
 First issue in 1835, last, June, 1841 , . 
 
 
 
 
 
 
 
 Issues of bills of $10, No. 4, seventy-five sets-_ 
 Cancelled to October, 1847 
 
 300,000 
 1,740 
 
 298.260 
 
 First issue 1843, last 1847 - -J 
 
 
 
 
 
 
 Bal. of bills of $5, No. 1, signed S. Elliot 
 
 ^ 11,915 
 
 
 Cancelled to October, 1843 _ 
 
 ....520 
 
 
 
 do do 1845--.: 
 
 .---250 
 
 
 
 do do 1847 
 
 -.-100 
 
 870 
 
 11,045 
 
 First issue 1813, last 1822 . _ 
 
 
 
 
 
 
 
 Bal. of bills of $5, No. S, signed S. Elliott. __ 
 
 118,342 
 
 
 Cancelled to October, 1843 ^_ 
 
 .61,130 
 
 
 
 do do 1845i 
 
 .42,925 
 . 2,515 
 
 106,570 
 
 
 do do 1847 
 
 11,772 
 
 First issue 1823, last 1830 _ 
 
 
 
 
 
 
 
 Bal. of bills of $5, signed C. J. Colcock. _ _ . . . 
 
 6,100 
 
 
 ^ Cancelled to October, 1 843, nothing ■ 
 
 
 
 do do 1845 
 
 ..2,595 
 
 
 
 do do 1847 
 
 -- 545 
 
 3,140 
 
 2,960 
 
 Issuedf"1832 
 
 
 
 
 
 
 
 Bal of bills $5, No. 3 _. 
 
 26,000 
 
 
 Issued to October, 1843 __ 
 
 do do 1845. ___ 
 
 .40,000 
 .42,000 
 
 82,000 
 
 
 
 108,000 
 
 
 Cancelled to October, 1843 
 
 35 
 
 
 
 do do 1845 ,..-_ 
 
 . 4,450 
 
 
 
 do do 1847 
 
 .12,185 
 
 16,670 
 
 91,330 
 
 Issue of bills of $5, No. 4, 160 sets 1. 
 
 320,000 
 
 
 Cancelled to October, 1843, nothing 
 
 
 
 do do 1845 
 
 -- 450 
 
 
 
 do do 1847 
 
 ^.2,015 
 
 ^ 2,465 
 
 317,535 
 
 First issue 1843, last 1847 _ 
 
 
 
 
 
 
 
 Bal. of bills of $2, No. 1, signed S. Elliott..- 
 
 10,295 
 
 
 Cancelled to October, 1843, notbinff 
 
 
 do do 1845-__ -_ 
 
 12 
 
 
 
 do do 1847 
 
 20 
 
 32 
 
 10,263 
 
 First issue 1813^ last 1824 
 
 
 
 
 
 
 
336 REPORTS OF INVESTIGATING COMMITTEES. 
 -TABLE Concluded. 
 
 Bal. of bills of $2, signed S. Elliott. __ 
 do do do C. J. Colcock. 
 
 Cancelled to October, 1843 __--_-6,560 
 
 do do 1845 
 
 do do 1847 
 
 First issue 1824, last 1837 
 
 1,204 
 300 
 
 Bal. of bills of $2, No. 3 _.-_ . 
 
 Cancelled to October, 1843 41,400 
 
 . do -do 1845 -_' 29,298 
 
 do do, 1847---_-_^ 26^24 
 
 First issue in 1834, last in 18,41 ^ 
 
 Issue of bills of $2, No. 4, 130 half sets. ._ 
 
 Cancelled to October, 1845-' -___3,616 
 
 do do 1847 _-9,300 
 
 First issue 1844, last 1847 ___- .. 
 
 26.847 
 1^560 
 
 28,407 
 
 8,064 
 
 122,892 
 
 97,222 
 
 Bal. of Bills of $1, No. 1, signed S. Elliott. 
 
 Cancelled to October, 1843 
 
 do ■ do 1845 v_. 
 
 do do , 1847 _-.. 
 
 First issue 1813, last 1830 ... 
 
 .660 
 384 
 . 30 
 
 Bal. of Bills of $1, No. 1, signed C. J. Colcock 
 
 Cancelled to October, 1843 1,200 
 
 do do. 1845 :_. 350 
 
 ' do do 1847 60 
 
 First issue 1831, last 1834 ^_ 
 
 Bal. of Bills of $1, No. 2 
 
 Issued to October, 1845, twenty-one setts _._ 
 do do 1847, twenty-nine, or. _ ^ _, 
 
 Cancelled to October, 1843 46,000 
 
 do do 1845 32,434 
 
 do do 1847 ___12,811 
 
 •First issue 1834, last 1841 . 
 
 Issue of Bills of $1, No. 3, 243 setts 
 Canceled to October, 1843 
 do , do 
 do do 
 
 - 400 
 
 1845.-- 6,623 
 
 1847 20,486 
 
 Issue of Bills of $3, No. 1, 130 half setts 
 
 Cancelled to October, 1843, nothing 
 
 do do 1845 1,554 
 
 do do 1847 8,268 
 
 Bal. of Issues $1 and upwards, Ist October, 1847 \ 
 
 52,000 
 12,916 
 
 18,340 
 
 1,074 
 
 9,23t) 
 
 1,610 
 
 80,784 
 . 8,400 
 11,600 
 
 100,784 
 
 91,245 
 
 97,200 
 
 27,509 
 
 78,000 
 
 20,343 
 
 25,67a 
 
 39.084 
 
 17,266 
 
 T,620 
 
 9,539 
 
 69,691 
 
 68,178 
 
 1,453,671 
 
EEPORTS OF INVESTIGATING COMMITTEES. 337 
 
 Statement of the Issues of Change Bills, to Oct. 1, 1847. 
 
 Bal. 
 
 Bal. 
 
 Bal. 
 
 Bal. 
 
 Bal. 
 
 Bal 
 
 Bal. 
 
 of Issues of 50-000, Plate, No. 1, June 1, 1841_ _ 
 
 Cancelled to October 1, 1843 2 00 
 
 do do 1845- 23 00 
 
 do do 1847 1 50 
 
 First issue 1815, last issue 1823 
 
 of issues of 50-100, No. 2, June 1,1841 __- 
 
 Cancelled to October, 1843 575 00 
 
 do do 1845 98 00 
 
 do do 1847 22 00 
 
 First issue 1 823, last issue 1830 
 
 of Issues of 50-100, No. 3, June 1, 1841 
 
 Cancelled to October 1, 1843 2,290 00 
 
 do do 1845 397 00 
 
 do do 1847 -. 73 00 
 
 First issue 1831, last issue, 1838 
 
 of Issues of 25-100 No. 1, June 1, 1841 
 
 Cancelled to October, 1 843, nothing 
 
 do do 1845 2 25 
 
 do do 1847-.- 50 
 
 First issue 1815, last issue 1823 
 
 of issues of 25-100, No. 2, June 1, 1841 
 
 Cancelled to October, 1843 ... 75 00 
 
 do do 1845 - 41 00 
 
 do do 1847 8 25 
 
 First issue 1 823, last issue 1 830 __ 
 
 of issues of 25- J 00, No. 3, June 1,1841 
 
 Cancelled to October, 1843 -_-l,650 00 
 
 do do 1845 330 75 
 
 do do 1847 6.4 50 
 
 First issue 1831, last issue 1839 ._. 
 
 of issues of 12^-100, No. 1, June 1, 1841, 
 
 Cancelled, none 
 
 Issued in 1815 
 
 Bal. 
 
 Bal 
 
 of issues of 12i-100, No. 2, June 1, 1841 
 
 Cancelled to Oct. 1, 1843_ 4 00 
 
 do do 1845 4 69 
 
 • do do 1847: 87 
 
 First issue 1815, last issue 1824 
 
 ©f iBsues'of G:|-tOO, No. 1, June, 1841 
 Cancelled, none > 
 
 Issued 1815-- , 
 
 12,116 00 
 
 26 50 
 
 12,669 50 
 
 695 00 
 
 13,352 00 
 
 2,760 00 
 
 9,436 25 
 
 2 75 
 
 8,757 75 
 
 124 25 
 
 12,356 88 
 
 2,045 25 
 
 790 00 
 
 9,478 38 
 9 66 
 
 628 50 
 
 12,089 50 
 
 11,974 50 
 
 10,592 GO 
 
 9,433 50 
 
 8,633 50 
 
 10,311 63 
 
 790 00 
 
 9,468 82 
 
 628 50 
 
 43 
 
338 REPORTS OF INVESTIGATING COMMITTEES. 
 
 Bal. of Issues of 6^-100, No. 2, June 1, 1841 
 
 Cancelled to October 1 , 1843, none 
 
 do do 1845 1 31 
 
 do do 1847 
 
 First issue 1815, last issue 1823 
 
 Bal. of Issues of Change Bills, Oct. 1, 1847.. 
 
 4,474 741 
 
 1 3ll 4,473 43 
 
 $78,395 38 
 
 Statement of the issues, of bills of one dollar and upwards^ made payable at 
 
 Columbia^ S. C. 
 
 Bal. of bills of $10, No. 3, June 4, 
 Cancelled in 1 846 
 
 1841 
 
 10,200 
 230 
 
 
 
 Q Q70 
 
 Issued in 1832 _- 
 
 
 
 1841 
 
 
 Bal. of bills of $2, No. 3, June 1, 
 
 ^ 
 
 11 200 
 
 First issue 1839, last 1840... 
 
 
 
 
 1841__ 
 
 
 Bal. of bills of $1, No. 2, June 1. 
 
 , 
 
 8 800 
 
 First issue 1 839, last 1840 _ _ . 
 
 
 
 
 
 
 October 1, 1847 
 
 
 $29,970 
 
 (1847.) 
 REPORT OF THE JOINT COMMITTEE, 
 
 To examine the Brandt Bank of the State^ at Columbia. 
 
 The Joint Committee appointed at the last session of the Legislature, 
 to examine the affairs of the branch of the Bank of the State at Columbia, 
 begs leave to report, 
 
 That they have fixed on the 30th of September, 1847, the end of the 
 fiscal year, as the time at which -they propose to exhibit the. condition of 
 the institution. The annexed exhibits, A and B, will show its condition 
 at that time, and profits made for the preceding fiscal year. It will ap- 
 pear that its profits this year, carried to the credit of the parent Bank on 
 the 1st October, 1847^ amounted to the sum of fifty-five thousand and 
 eighty-six dollars and eleven cents, after deducting seven thousand, six 
 hundred dollars, amount of officers' salaries, and eight hundred and ten 
 dollars and thirteen cents, amount of incidental expenses. This is the 
 largest amount of annual nett profit which has ever been made by this 
 branch from 1815, with the exception of the year 1831. In looking to the 
 profits of this branch, it will be considered that this in not a Bank of issue, 
 it is a mere agency of the parent Bank, and is entirely dependent upon it 
 for it« capital. It cannot, like other Banks, issue bills to three times the 
 amount of their capital, upon which to operate, and by which to enlarge 
 its profits. The capital of this institution is so much in Bank bills loaned 
 by the parent Bank. Upon this indebtedness, together with the treasury 
 deposits, and individual deposits, are based its banking operations. The 
 treasury deposit, however, is constantly fluctuating in amount. Often the 
 branch is largely in advance to the Treasury till the month of June, when 
 
 I 
 
REPOllTS OF INVESTIGATING COMMITTEES. 339 
 
 taxes are paid in by the tax-collector. The amount of indebtedness, there- 
 fore, to the parent Bank, may be assumed as the capital upon which its 
 backing operations are based. Upon this capital, after payment of sala- 
 ries and expenses, more than 6 per cent, has been realized for the past 
 fiscal year. 
 
 The committee further report, that their attention was directed to an ex- 
 amination of the schedule of bonds and the bill ledger for notes discounted, 
 as upon the character of this paper depends the soundness of the institu- 
 tion. It is impossible for a committee to arrive at any positive knowledge 
 upon this subject ; but from all the information accessible to the commit- 
 tee, they are entirely satisfied of the sufficiency of the securities held by 
 this branch. That class of paper which comes under the denomination of 
 suspended debts or notes in suit, is of course excepted from this remark, 
 though we are assured by the able officer at the head of this branch, that 
 in the amount of the suspended debt of thirty-three thousand five hun- 
 dred and forty-six dollars now in suit, he does not class as " doubtful" 
 more than twenty-three hundred dollars. Of this amount in suit, we are 
 informed by the officers, that ten thousand four hundred and- ninety-five 
 dollars and twenty cents has been received by the Bank ; that they have 
 been notified of the collection of one thousand six hundred and eighty- 
 four dollars more, and that the balance, save the item of twenty-three hun- 
 dred dollars, classed as doubtful, is perfectly secured. 
 
 Of the amount of nine hundred and forty-one thousand seven hundred 
 and eighty-eight dollars and sixty-seven cents discounted upon notes, the 
 sum of four hundred and sixty-six thousand eight hundred and twenty- 
 nine dollars have been discounted upon four hundred ^.nd four (404) new 
 notes during the past year. . Of this amount, three hundred and thirty-one 
 thousand five hundred and eighty dollars have been paid in during the 
 year, and about two hundred thousand dollars have been received on the 
 reduction of all notes. Your committee were pleased to be informed, that 
 this branch have adopted a rule, requiring old notes to be renewed every 
 sixty days, with payment of interest in advance up to the next renewal 
 successively, and semi-annually a payment of ten per cent, upon tli€ prin- 
 cipal, thus calling in an annual payment of twenty per cent. Your commit- 
 tee recommend a continuancer of this salutary rule. The number of per- 
 sons appearing to be accommodated by this branch, are eight hundred and 
 one. This seems to be a diffusion of its benefits to the public, whose in- 
 stitution it is. 
 
 It may be proper here to remark, that the directors appear to« be indebt- 
 ed to the branch Bank, one hundred and twenty-six thousand one hundred 
 and thirty-four dollars ($126,^134) ; and the officers sixteen thousand eight 
 hundred and sixty dolkrs ($16,860.) These debts appear to the commit- 
 tee to be as fully secured as any other debts on the bill ledger. 
 
 Your committee directed their attention to the draft business of this 
 branch, and were gratified to find, that out of the very large amount of bu- 
 siness done, in the aggregate, one million six hundred and seventy-eight 
 thousand three hundred and forty-four dollars and nineteen cents ;' all were 
 paid at maturity, except one draft of eight hundred dollars, the parties to 
 which have been sued, and are represented to be good for the debt. 
 
 In conclusion, the committee take pleasure in expressing their approba- 
 tion of the prudence and integrity with which the affairs of this institution 
 have been managed for the past year. 
 
 All which is respectfully submitted. 
 
 BEN J. C. YANCEY, Ch. of the Hou'se Com. 
 
340 REPORTS OF INVESTIGATING COMMITTEES. 
 
 
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REPORTS OF INVESTiaATlNG COMMITTEES. 341 
 
 (1847.^ 
 
 REPORT OF THE JOINT COMMITTEE ON THE BRANCH 
 BANK AT CAMDEN. . 
 
 The Joint Committee appointed in December, 1846, to examine the 
 Brjyich Bank of the State of South Carolina atCJamden, ask leave to sub- 
 mit the following report; ^ 
 
 That they proceeded to discharge the duty assigned them, on the 5th of 
 October last, and with the aid of the presiding officer of that institution, 
 who cheerfully afforded them every facility, they were enabled to inform 
 themselves satisfactorily in regard to its operations for the past fiscal year. 
 
 Assuming the indebtedness to the Bank in Charleston as returned to 
 jour Committee, as its average capital for the past year, the interest arising 
 therefrom amounts to 5|- per centum, exclusive" of the amount vested in 
 the Banking House : a smaller profit than in previous years, which may be 
 attributed in some degree to the fluctuations in the price of the great sta- 
 ples of the country. 
 
 The gross profits for the year ending the 1st October, 1847, amounted 
 to $30,355 1 1, and derived from the following sources : 
 
 On Discounts _•_ -- ."_.-._. $23,702 11 
 
 Exchange . 1,595 57 
 
 Northern Exchange . ,- 33 50 
 
 Interest _-- 4,899 79 
 
 Protest--- 124 14 
 
 $30,355 11 
 
 From which deduct EXPENSES. 
 
 The salaries of officers _ $6,000 00 
 
 Incidental expenses • 441 12 
 
 $6,441 12 
 
 Leaving a nett balance of- - _ $23,9 1 3 99 
 
 RESOURCES OT THE BANK. 
 
 Notes Discounted $3^6,037 00 
 
 « Protested J 9,289 06 
 
 " in suit : '.___. 7,240 00 
 
 « in judgment . 27,260 03 
 
 Drafts in Charleston , 17,560 53 
 
 Bonds , .. 35,838 74 
 
 Branch Bank of the State of South Carolina, at 
 
 Columbia -_._ 38 87 
 
 Merchants' Bank,. New York 1,176 71 
 
 U. S. Branch Mint, Charlotte ' 425 53 
 
 Bills of Banks in this State _. 27,784 00 
 
 " of Banks of other States , 5 00 
 
 Specie- _ .._ 10,894 12 
 
 ,• . .^ , $523;549 59 
 
 Leaving a balance against the Bank for salaries 
 
 of officers and incidental expenses, of 6,441 12 
 
 $5^9,990 71 
 
342 REPORTS OF INVESTIGATING COMMITTEES. 
 
 LIABILITIES. 
 
 Debt due Bank State of South Carolina $46 1 ,49 1 25 
 
 Individual Deposits -.- 32,906 11 
 
 Due Parent Bank on Sales of Property 5,238 24 
 
 $499,635 60 
 
 To which add the gross profits for the year, 
 
 ending I st October, 1847 30,355* 1 1 
 
 $529,990 71 
 Your committee examined with minuteness, the various Bonds and Notes 
 of the Bank, and as far as their information extended, believe them, with a 
 few exceptions, to be good ; and generally, in comparatively small amounts, 
 confined not to the District in which the Bank is located, but extending 
 into the adjacent Districts : thus afibrding liberal facilities to those who 
 seek them. 
 
 Your committee received important aid from the officers connected with 
 this institution, and believe that its afiairs have been generally conducted 
 with ability and cautious liberality. 
 
 Yet they are constrained to say, that in a few instances, they found some 
 liabilities of long standing, which your committee would recommend should 
 be collected in such amounts as would not compel forced sales. 
 Respectfully submitted, 
 I. D. WILSON, Chair'n of House Committee. 
 
I 
 
 REPOKTS 
 
 OF THE 
 
 PRESIDENT AND DIRECTORS 
 
 OE THE 
 
 BANK OF THE STATE 
 
 (1813.) 
 
 7b the Honorable the Senate and House of Representative^^ of the State of 
 
 South Carolina: 
 
 The President and Directors of the Bank of the State of South Caro- 
 lina, respectfully report, 
 
 That in pursuance of the powers and directions contained in their char- 
 ter, they convened early in January last, and took the most prompt and 
 effectual measures in their power, to carry into effect the object of their 
 appointment. 
 
 They immediately despatched an agent to Philadelphia, to procure the 
 plates and paper necessary for their bills ; and while awaiting his return, 
 they made all the arrangements in this State, necessary for the commence- 
 ment of their business. 
 
 From circumstances attending a state of war, which rendered it neces- 
 sary that their agents should travel and transport all their materials by 
 land, and from the accumulation of business in the hands of those artists 
 who were most highly recommended, and whom alone they wished to em- 
 ploy, a delay beyond their expectations occurred, and it was not until the 
 9th of August, that they were able to commence the operations of the 
 Bank. 
 
 Although from these causes, and from the number of plates, and the 
 quantity of paper which were required by the fortunate privilege which 
 had been extended to them of issuing small bills, the expenses incident to 
 such an establishment have been increased, they feel a confident persua- 
 sion that their expenses, compared with the outfits of any similar institu- 
 tion in this city, would appear by no means disproportioned. 
 
 It would be incorrect to detail the transactions of an institution like 
 this, to expose to rivals or enemies, its means, its resources, its business or 
 wants, unless such a disclosure should be demanded by the Legislature. 
 Statements of the general transactions of the Bank have been furnished 
 to the Comptroller General, whenever they were required, and a statement 
 of the sales of public stock made under the authority of our charter, was 
 also rendered to him before the meeting of the Legislature. 
 
344 ANNUAL REPORTS OF 
 
 After the experience of a few monthsj it would be premature to offer an 
 opinion on the ultimate success of an institution, and it might appear pre- 
 sumptuous to anticipate results which, depending on facts, and not on 
 opinion, must be left time for their ultimate determination. Yet the Pre- 
 sident and Directors have no hesitation in stating, that the operations of 
 their Bank, as far as they have progressed, have been highly satisfactory, 
 and justify the hope that the experiment will realize the reasonable antici- 
 pations of its friends. 
 
 If the Legislature should deem it advisable to continue and extend its 
 patronage to this institution, the President and Directors beg leave to sug- 
 gest the following circumstances to their consideration. 
 
 By the Act incorporating the Bank, the President and Directors were 
 authorized to issue six per cent. ^ stock, to the amount of three hundred 
 thousand dollars, provided it could be sold at par ; this sum was supposed 
 to be nearly the amount of debt due this State by the United States, over 
 and above the sum due by this State to its citizens. As the United States 
 have, since that time, been disposing of their stock at twelve per cent, be- 
 low par, giving one hundred dollars in six per cent, stock for eighty-eight 
 in money, it was not to be expected that the six per cent, stock of this 
 State could be sold at par ; accordingly no sales have been made. In the 
 mean time, however, the United States have been reducing the amount 
 due the State, 1st. by paying annually two per cent, on the original amount 
 of the debt, or 24,000 dollars per annum. 2dly. By paying quarterly on 
 the reduced debt, the same amount of interest which was originally due, 
 the balance of which sum over the interest now actually due, is applied to 
 the extinguishment of the principal of the debt. This balance, on the 1st 
 January last, was $9,670 86; on the 1st April, $10,187 33 ; on the 1st 
 July, $10,731 38 ; arid on the 1st October, $11,304 48 ; and on the prin- 
 ciples of compound interest, is increasing quarterly.- "By these means, the 
 balance, three hundred thousand dollars, will, in less than five years from 
 the ist of January, 1813, be extinguished, and if these sums are annually 
 mingled with the revenue of the State, a very considerable portion of its 
 capital may be expended incautiously, or perhaps without the Legislature 
 being duly aware that it was the stock, and not the interest, the capital, 
 and not the income of the State, which they were appropriating. 
 
 "We wish, therefore, that the Comptroller General might be authorized 
 and directed to transfer to the Bank,, on account of its capital, all sums 
 which may be received from the United States on account of the principal 
 of their debt, and all sums which, though received nominally as interest, 
 may operate to extinguish the principal of their debt. 
 
 The eleventh clause of our charter also provides, that all the unexpend- 
 ed money in the Treasury should be turned over to the Bank on account 
 of capital, but as no time was specified in the charter, although the 1st 
 October or the end of the fiscal year was evidently intended, no transfer 
 has as yet been made. We beg to be excused for calling the attention of 
 the Legislature to this subject. The object of this measure was to prevent 
 unexpended money from accumulating in the Treasury, to give activity 
 and value to any sums the State might at any time possess, and to in- 
 ci-case gradually but effectively, the capital of the Bank, until it should be 
 able to meet all the exigencies of the State. 
 
 As the Bank fegls itself bound to meet the .appropriations Which may 
 be made by the Legislature, no inconvenience can at any time result from 
 
 I 
 
I 
 
 PRESIDENT AND DIRECTORS. 345 
 
 an annual transfer of the unexpended money ; neither can the Legisla- 
 ture f^el itself trammeled in any arrangement which in its wisdom it may 
 choose to make ; whilst some advantages might arise from an annual exhi- 
 bition of the expenses of the State compared with its nett annual income, 
 unmingled with the balances of its former years, or the redeemed princi- 
 pal of its- capital stock. 
 
 The revenue arising from the funds which have been granted to the 
 Bank, has been sufficient, with a very moderate tax, to defray the current 
 expenses of the State ; and so long as the Legislature shall forbear to 
 trench on this capital, or shall have the magnanimity to make annual pro- 
 vision for thQ extraordinary expenditures that may casually occur, the same , 
 fortunate exemption from taxation may be transmitted to posterity ; while, 
 if this capital should be confounded with the current revenue of the State, 
 and be employed to meet every' extraordinary contingency, in a few years 
 a tax double the amount of our present tax may become necessary to meet 
 the annual and ordinary expenses of the government. 
 
 We trust that in our situation there can be no impropriety in submit- 
 ting the foregoing observations. We have been the more earnestly in- 
 duced to make them, from the. recollection, that one of the strongest mo- 
 tives for the establishment of our Bank, springs from the desire of separa- 
 .ting this capital more completely than it has hitherto been done, from the 
 ordinary revenue of the State, of presenting it to the public eye in a more 
 distinct and definite form, and of enabling the country to note with cer- 
 tainty its in'crease or its diminution. 
 
 By the 17th clause of our charter, certain officers were directed to de- 
 posit in this Bank the public money which should at any time be in their 
 hands. We do not know that this provision has been evaded, but as we 
 understand that a distinction has been made between public and private 
 money — a distinction that would totally defeat the intention of the Legis- 
 lature, we request that the clause would be so far amended, as to direct 
 all the officers embraced by it to deposit in the Bank every sum of money 
 which may be received in virtue of their offices, either in suits actually de- 
 pending, or in consequence of decrees of the Courts of Law or Equity in 
 this State ; and in cases where the courts, either of Law or Equity, shall or- 
 der sums of money to be invested in funds of a. particular descriptinn, that 
 the money, until the time of its actual investment, shall be deposited in 
 the Bank of the State of South Carolina. 
 
 An opinion, we understand, has been expressed, that the .repealing clause 
 in our charter has removed from the other Banks the prohibition of issu- 
 ing bills of small denominations, and though no practical use has been 
 made of this opinion, we wish the Legislature to remove all doubts upon 
 the subject. " 
 
 We consider this privilege of very great importance to our institution*— 
 a, source of profit, a means of extending its benefits anH conveniences — 
 and while we do not wish ourselves, and while we have the most entire con- 
 fidence that the Legislature of our country have not the smallest desire 
 to infringe the privileges of any chartered corporation, yet we deem- it con-, 
 sistent with every view of prolicy and justice, to secure to a public institu- 
 tion like ours, every advantage which shall not encroach upon the rights 
 of others. The emission of one 'and two dollar bills, although a subject 
 of some complaint in the city oT Charleston, has been called for by the 
 
 44 
 
346 ANNUAL BEPORTS OV 
 
 country with an almost united voice, and the extensive circulation in this 
 State, of the small bills of the adjoining States, is itself a proof of the 
 scarcity of a circulating medium, and an ample proof of the necessity and 
 expediency of issuing, on the authority of the State, bills of similar de- 
 nominations, 
 
 S. ELLIOTT, President. 
 
 (1814.) 
 
 To the Honorable the House of Representatives of the State of South 
 
 Carolina : 
 
 The President and Directors of the Bank of the State of South Caroli- 
 na respectfully report : 
 
 That on the 1st October last, at the close of their fiscal year, after de- 
 fraying the ordinary expenses of the institution, and after defraying all 
 the extraordinary expenses attending the establishment of the principal 
 Bank, and the branch at Columbia, under circumstances peculiarly unfa- 
 vorable, they paid over to the Treasury, for the use of the State, the sum 
 of $3,325 20. 
 
 If this result should appear less favorable to the State institution than 
 its friends had anticipated, the President and Directors beg leave to sub- 
 mit the following observations : 
 
 It is usual for a private Bank to commence its operations with as much 
 business as its capital will actually bear. There are even some circum- 
 stances which give to its business an artificial accumulation. ~ All the indi- 
 viduals who have invested property in it are interested in its success, and 
 use /Some exertions to give activity to its capital. Many engage in it on 
 speculation, and in order to sell their shares advantageously, endeavor to 
 give artificial success to its early operations ; and many persons who have 
 subscribed for stock in the Bank, borrow from the institution itself, the 
 money necessary to make their late payments. It therefore generally hap- 
 pens that their commencements are peculiarly prosperous. 
 
 But with this Bank there were no such favorable circumstances. No 
 individuals were interested in its success. The mercantile interest of the 
 State was rather hostile than friendly. The commerce of the country was 
 in a depressed and declining situation, and the directory had to draw from 
 the stagnating current of business, such portions as accident or friendship 
 offered to their acceptance. Besides, from January to May, at that season 
 of the year when commerce is most inactive, they were obliged to make very 
 large advances to the State ; and on the 1st of April, the day fixed by law 
 for the balance in the Treasury to be turned over to the Bank, as capital, 
 they had advanced to the State, including the direct tax, upwards of 
 $200,000. 
 
 Now although on the direct tax an interest was received, yet it was not 
 equal to the profits gained by discounting notes to an equal amount, and to 
 those acquainted with the operations of Banks ,it will be obvious, that a 
 large sum, such as the direct tax, placed to the credit of one individual, 
 
 I 
 
PRESIDENT AND DIRECTORS. 347 
 
 and liable to he drawn at once, must cramp the operations of an institution, 
 much more than a large amount distributed into a multiplicity of hands ; 
 and although this tax wfl-s ultimately drawn in a manner very favorable to 
 the institution, yet the directors were in their arrangements obliged con- 
 stantly to provide for the possibility of its being called for in one draft. 
 
 To this it may not be improper to add, that all the funds of the State, 
 which have hitherto been applied to create the active capital of the Bank, 
 would, if they had not been converted to this purpose, only have produced 
 a revenue of $8,330. 
 
 The Bank has commenced its second year under circumstances much 
 more favorable, with a business equal to the funds of the institution, with 
 the means of increasing it with the extension of its -capital, and with the 
 enjoyment of public credit and confidence to a degree highly advantageous. 
 The Directors have a prospect of realizing some of the hopes which were 
 entertained of this institution as a fiscal arrangement. If, however, in the 
 present situation of our country, the Legislature should choose to avail it- 
 self of the credits and resources of the Bank, and make it an .accommoda- 
 tion to the country rather than a source of revenue, if it should consent to 
 exchange profit for convenience, there is no doubt that the Bank, without 
 impairing its credit, or injuring its resources, can offer great facilities to 
 the operations of the government. 
 
 The provisions of the Legislature have left to the Directors biit little oc- 
 casion to apply for alteration in their charter. Circumstances, however, 
 occasionally arise which they consider it their duty to present to the view 
 of the Legislature. It appears that the charter of the Bank has made no 
 provision for supplying those vacancies in the direction, which occur by the 
 omission of the Legislature to appoint a full Board of Directors. The 
 power of filling up those vacancies devolves, according to the opinion of the 
 Attorney General, on the Governor of the State, under his general consti- 
 tutional powers. They merely state the fact, without intending to suggest 
 any alteration. 
 
 It would facilitate the obtaining of loans in certain cases, if the Legisla- 
 ture would by law declare renunciations of dower legal, if dated before the 
 mortgage, where on the face of the renunciation it was explicitly declared 
 to be for the purpose of obtaining a loan from the Bank of the State of 
 South Carolina, and on condition of such loan being obtained. At present, 
 to render a renunciation of dower legal, a person after obtaining a loan, (if 
 he resides at any distance from the Bank,) must take much unnecessary 
 trouble ; and the alteration proposed in our law, if confined to the single 
 case of persons borrowing from the Bank, cannot, we believe, produce any 
 inconvenience. 
 
 By order of the Board : 
 
 STEPHEN ELLIOTT, President. 
 
 (1815.) 
 
 To the Hb7iorable tlie Speaker mid Members of the House of Representatives 
 of the State of South Carolina. 
 
 The President and Directors of the Bank of the State of South- Carolina, 
 respectfully report : 
 
348 ANNUAL REPOllTS OF 
 
 That on the 1st of October, they paid over to the Treasurer of the Low- 
 er Division of the State, the sun^ of forty-eight thousand nine hundred dol- 
 lars and seventy-one cents, to be applied to the current expenses of the 
 State ; this sum being the nett profits of the business of the Bank, from 
 the 1st of October, 1814, to the 1st October, 1815. 
 By order of the Board : 
 
 STEPHEN ELLIOTT, President, 
 Charleston, 15th Nov., 1815. 
 
 (1816.) 
 
 To the Honorable the Speaker and Members of tJie Hoiise of Representatives 
 of tJie State of South Caroli?ia. 
 
 The President and Directors of the Bankof the State of South-Carolina, 
 respectfully report : 
 
 That on the 1 1th of October, they paid overtotheJTreasurer of the Low- 
 er Division, for the use of the State, the sum of sixty-three thousand and 
 twenty-two dollars and eighty-nine cents, being the nett amount of the 
 profits of the Bank for one year, ending on the 1st of October, 1816. 
 
 STEPHEN ELLIOTT, President-. 
 
 (1817.) 
 
 To the Honorable the Spmker. and Members of the House of Representatives 
 of tlie State of South Chrolina. 
 
 The PresideTQt and Directors of the Bank of the State of South-Carolina 
 respectfully report : 
 
 That on the 6th day of October they passed over on their books, to the 
 credit of the Treasury of the Lower Division of the State, the sum of sev- 
 enty-six thousafid five hundred and seven dollars and ninety-one cents, 
 being the nett amount of the profits of the Bank, for the year ending on 
 thelst of October, 1817. ' 
 
 The President and Directors think it also proper and necessary to in- 
 form the Legislature that in the course of the last summer, the lease of the 
 house in which the business of the Bank had been hitherto conducted ex- 
 pired. As the situation of this building was not convenient to the commer- 
 cial business of Charleston, as the vault was excessively damp, and unfit for 
 the deposit and safe-keeping of papers of ^ny description, and as it was 
 impracticable to lease a building provided with vaults suitable for the uses 
 of a Bank, it became necessary for the institution to purchase or to build. 
 Under these circumstances, a convenient house, in an excellent situation, 
 having been offered to the Bank at a reasonable price, the Directors deter- 
 mined to purchase. They have prepared this building for the use of the 
 Bank and now occupy it. As all the expenses of repair and alterations, 
 including the vault, are charged to the contingent expenses of the Bank, if 
 deducted out (rf its profits, ihe capital of the Bank will have no other charge 
 against it for this purchase than the sum of eighteen thousand dollars, the 
 original cost of the house, and there can be no doubt that, with the great 
 
PRESIDENT AND DIRECTORS. 349 
 
 improvements wliich have been made on the buildings, this sum may at any 
 time hereafter be obtained for this property* whenever it shall cease to be 
 required for the service of the State. 
 
 S. ELLIOTT, President. 
 
 (1818,) 
 
 To tJie Honorable the Senate andHouse of Representatives of the State of 
 
 South Carolina. 
 
 The President and Directors of the Bank of the State of SoUth Carolina 
 respectfully report : ' 
 
 That on the 17th day of October j they transferred on their books to the 
 credit of the State, the sum of one hundred and five thousand eight hun- 
 dred and thirty-eight dollars and seven cents, being the nett amount of the 
 profits of the Bank, from the 1st October, 1817. to the 1st October, 1818. 
 
 The President" and Directors further report, that having adopted the 
 .principle of deducting annually from the profits of the Bank, an amount 
 equal to any debt or debts which in the vicissitudes incident to a commer- 
 cial community, the Bank may and must occasionally lose, they 'have re- 
 placed from their profits in the funds of the Bank, besides the sum carried 
 to the credit of the Treasury, the amount of the only debt which they have 
 yet ascertained to be bad ; as a Reference to the Schedule marked " A," will 
 more fully represent. 
 
 The charter of the institution having required that all the outstanding 
 debt of the State should be redeemed by the Bank, before the end of the 
 year 1824, the Directors considered the beginning of the last fiscal year, 
 as a period favorable for the commencement of this operation, and accord- 
 ingly proceeded, after due ndtice had been given, to redeem, on the 1st Jan- 
 uary last, all the outstanding deferred 6 per cent, stock of the State. Of 
 this description of stock $33,378 49 has been actually paid ofi"; a small 
 balance of $3,295 04 still remains unclaimed, but can no longer bear an in- 
 terest against the State. 
 
 The Directors then gave notice, that on the 1st July, they would redeem 
 all the outstanding 6 percent, stock of the State. Of this description of 
 stock they have actually paid off $140,057 38 ; a balance, amounting to 
 $3,837 90, which is no longer entitled to interest, remains unclaimed. 
 
 The Directors have also purchased from time to time, such certificates of 
 the thre'e per cent, stock of the State as have been offered at the price lim- 
 ited in the charter. Of this stock, $5,820 20 were purchased prior to 1st 
 October. 1818, and the Directors still continue, as opportunities occur, to 
 make occasional purchases. 
 
 In pursuance of the joint resolution of the two houses, during the last 
 session of the Legislature, the Directors have made all the preliminary ar- 
 rangements necessary for establishing a branch of the Bank at Camdefi. — 
 Believing, however, that a positive act of- the Legislature was necessary to 
 sanction such an establishment, they have postponed the appointment of 
 ofl^cers, and the commencement of business, 'until such sanction could be 
 obtained. If the Legislature should deem it proper to authorize the estab- 
 lishment of this branch, the Directors will adopt immediately measures to 
 commence the operations of the branch, as soon as the pressure which now 
 
350 ANNUAL REPORTS OF 
 
 exists on all of the Banks in the country, but particularly on the State 
 Bank, shall be so far removed e? to admit of an extension of business 
 
 S. ELLIOTT, President. 
 
 (1819.) 
 
 Tq the Honorable tlic Senate and House of Representatives of tJve State of 
 
 South- Carolina. 
 
 The President and Directors of the Bank of the State of South-Carolina 
 respectfully report : 
 
 That on the 8th of October they transferred to the credit of the Treasu- 
 ry of the State, $107,593 95 cts. — being the nett amount of the profits of 
 the Bank, from the 1st of October, 1818, to the 30th September, 1819, after 
 having reserved a sum sufficient to cover all the bad or doubtful debts, 
 which may have been unfortunately contracted in the course of a peculiarly 
 calamitous year. 
 
 As, however, the ];irofits of the Bank for the past year have fallen short 
 of the promise which was held out to the Legislature, and as the dividend 
 for the ensuing year will necessarily be less than that of the past, it has 
 become our duty to enter into some explanations on the subject ; and if we 
 should deem it expedient to offer some preliminary ^observations on the 
 causes which have diminished, and are continuing to diminish the income 
 of our institution, some reflections on our currency in general, and on the 
 situation of our local Banks, with respect to that currency, to the Bank of 
 the United States, and to the National Government, we trust that the mag- 
 nitude of the subject, and .its great importance to the fiscal resources and 
 internal improvements of the State, will plead our excuse. 
 
 Ever since the complete establishment of the present National Govern- 
 ment, Bank paper has constituted the current money of the United States. 
 Issued by different institutions, under different authorities, sanctioned by 
 the State Legislatures, or by the General Government, it has pervaded 
 every quarter of the Union, and formed the universal medium of exchange. 
 The Bills of the different Banks have always purported to be convertible, 
 on demand, into a certain quantity of gold or silver, and have passed in 
 circulation as the reputed representatives of so much specie. This con- 
 vertibility was sometimes real iind practicable ; very frequently it was but 
 nominal ; yet this paper was universally current, because entire confidence 
 was reposed on the solvency of the institutions by which it was issued, and 
 on the sufficiency of the funds secured for its final redemption. 
 
 During a long portion of that revolution, which for a quarter of a cen- 
 tury has convulsed and desolated Europe, the United States enjoyed the 
 great advantages of a neutral nation. As long as a state of war existed 
 between Spain and Great Britain, the citizens of this country became the 
 carriers and commercial agents of Spain, and nearly all the metallic treas- 
 ures of Mexico passed through our hands. During this period, gold and 
 silver were abundant, and there existed no difficulty in procuring specie 
 for any demand and to any amount which our commercial or fiscal ar- 
 rangements required. The vaults of our Banks are said to have overflowed 
 with silver. From the peace of Amiens, however, this influx of specie 
 abated ; our commerce with the Spanish colonies, which had been the acci- 
 dental result of war, declined ; and the wealth of that country was restored, 
 
PRESIDENT AND DIRECTORS. 351 
 
 in a great measure, to its ancieut channels : and, wken the invasion of 
 Spain, by Bonaparte, in 1808, threw that ill-fated country and her colonies 
 into the arms of Great Britain, a new direction was given to their treasures, 
 and almost a new monopoly created for their commerce. At the same 
 moment, the embargo, which our disputes with the European powers 
 induced our government to impose on our commerce, began to act with 
 great effect on the specie capital of the country ; for wh^n our produce 
 could no longer be exported, all who had engagements to meet in foreign 
 countries, all to whom remittances abroad were advantageous, if not indis- 
 pensable, transmitted specie as the commodity most easily concealed and 
 transported; From this time the amount of specie in the United States 
 rapidly diminished. The unsettled state of our commercial and political 
 relations with foreign powers, during the three succeeding years, prevented 
 a new accumulation, and soon after our declaration of war against Great 
 Britain, in 1812, the Banks throughout all the Middle and Southern States, 
 which for some years had been paying specie reluctantly and sparingly, 
 suspended altogether their specie payments. 
 
 Soon after the restoration of peace, the Bank of the United States was 
 chartered, for the professed purposes of creating a national currency, of 
 facilitating exchanges between tBe diflPerent portions of the United States, 
 and of maintaining and enforcing throughout the country the payment of 
 specie. To promote the same object, the State Banks, at the earnest desire 
 of the Secretary of thg Treasury, resumed universally and almost simul- 
 taneously, the payment of specie. Yet many of the directors of these 
 institutions were aware that this resumption was premature. The charter 
 of the Bank of the United States required that a certain portion of its 
 capital should be contributed in specie. By the precipitate commencement 
 of business, to which it was' urged by the Treasury department, and by 
 the interested solicitations of many of its stockholders, it effectually frus- 
 trated that provision of its charter. The second payment in specie was 
 in a great measure eluded, as much of its own paper, which it had thus 
 hastily issued, and which it could not refuse, was returned to it as an 
 equivalent for specie. The third and last payment was altogether nominal. 
 The State Banks, before it became due, had resumed generally, the pay- 
 ment of specie, and their biHs were everywhere received in the place of 
 bullion. Indeed, it was immediately obvious, that if this last payment had 
 been actually required in coin, it would not add to the sp(3cie capital of the 
 country; it wouid only transfer to the National Bank a certain amount, 
 drawn from the vaults of the.State Banks. It thus unfortunately happen- 
 ed, that even by the creation of this colossal power, a very small addition 
 was made to the real metallic capital of the United States. For sometime, 
 however, no difl&culty was experienced. During twelve or eighteen months, 
 silver, to a considerable amount, was imported by the Banks, and by indi- 
 viduals, and hope was entertained that no further embarrassments on the 
 subject, of our currency would speedily occur. But during the two last 
 years our immense importations of foreign productions appear to have left 
 no balances in our favor to be liquidated by returns in specie ; while ihe 
 East India trade, which has always been the great absorber of our silver, 
 has revived with unprecedented activity, and has exhausted, or threatens to- 
 exhaust the metallic capital of our Country. The specie drawn from the 
 Banks, instead of being diffused generally throughout the country, is in- 
 stantly consigned to foreign markets : the bullion occasionally imported ifi 
 
352 ANNUAL REPORTS OF 
 
 immediately purcliased to supply tlie wants of foreign commerce • and 
 even the petty sum's which, are accidentally seen to circulate, are pursued 
 and collected with ^ceaseless avidity.,. The specie capital of the United 
 Stat/3S is again daily diminishing ; and, by the magnitude of the evils with 
 which we are threatened, the subject of our currency is unavoidably forQed 
 on the public attention. 
 
 It may not, however, be improper to remark, that during the whole pe- 
 riod to which we have alluded, whatever may have been the embarrassments 
 of those who wanted, or of those who were called upon to pay gold or silver, 
 there was a general and extensive -circulation of Bank paper ; and the 
 country enjoyed almost uninterupted prosperity. ^There was that continu- 
 ed and progressive improvement which marks the growth of wealth, of 
 population, and of power p tha^; steady increase in the value of labor and of 
 property, which encourages and remunerates the exertions of individuals; 
 we were enjoying that condition, the most enviable in. the career of nations, 
 when enterprise was never without hope, nor labor without reward. There 
 was scarcely a moment in that period in which, at least in our large cities, 
 men of real and substantial property could not procure means for any 
 purpose ; money suffiqient for any experiment "in agriculture, commerce, or 
 manufactures which they might -choose to attempt ; and, if facilities too 
 great were occasionally giveUj ^ if encouragement was sometimes offered to 
 speculative adventurers, to men rash Svithout judgment, and without 
 private resources to support their projects, to men regardless alike of 
 credit, of reputation, or of real character, the losses incurred by these 
 errors generally fell on th,c Banks themselves, and their -profits enabled 
 them to bear these occasional disappointments. From this state we are 
 now awakened as from the delusions of a dream. It has been represented 
 as a state of intoxication, of delirium, of niadness, from which we must be 
 recalled to the sober realities of universal embarrassment and unexampled 
 ruin. V' 
 
 It has unfortunately happened, that during the last six or eight years, 
 there has been a rapid increase^ in the number of. Banks throughout the 
 United Stated. The greater part of these have been established with femall 
 capitals. Some of the States haVe incorporated Banks for every county. 
 The number of these institutions has necessarily caused a diminished con- 
 fidence in their paper, and has certainly multiplied the chances of misman- 
 agement. Of late great pains have -been taken to create public apprehen- 
 sion and alarm ; and the embarrassments of the Banks, which unavoidably 
 resulted from the constantly decreasing amount of specie in the United 
 States, have been aggravated by artificial excitement. Hence the Banks, 
 generally, have been led by prudence, or compelled by necessity, to curtail 
 their business, and lessen the amount of their circulating paper. Another 
 cause has contributed "most powerfully to these measures. 
 
 For some time after the organization of the Bank of the United States, 
 the Directors of that institution continued to import or purchase specie for 
 its own use, and to discount in proportion to its capital and its resource^. — 
 They continued, as had been avowed by the friends to its incorporation, to 
 act in harmony with the local institutions. But within a twelve-month 
 past they have suddenly and entirely changed their system. They have 
 withdrawn its own paper from circulatipn,, and have employed the funds 
 which th<3 government of the United States has placed at its disposal to 
 force ^rom the State Banks their specie capital. In some places this sys- 
 tem has been severe and unremitted, in others it appears not to have been 
 
PRESIDENT AND DIKECTOllS. 353 
 
 enforced, or it hasbeen in some measure counteracted by local circumstan- 
 ces. These different causes, however, have produced this general result, 
 that every Bank has been obliged to withdraw its paper as speedily as pos- 
 sible from circulation. In many instances where the local Banks have not 
 been able promptly to recall theii- funds, which could only be done by se- 
 vere pressure on their debtors, or where they have been at all mismanaged, 
 they have been necessitated either to suspend specie paj^ments, or finally to 
 close their doors; and even those who are most able and have been most 
 prudent, are compelled to decline all new business; and are now employing 
 every means within their power to collect their own paper, to preserve and 
 secure their own resources, to remain entirely inactive, until they shall be 
 able to ascertain the extent or ultimate effects of this system. The cur- 
 rent money of the country may be considered even now, as rapidly and 
 steadily decreasing, and the' Bank of the United States has unquestionably 
 the power of lessening the quantity at pleasure. As long as it refuses to 
 issue its own paper, and continues to wield the resources of the govern- 
 raent, if can compel every other institution to recall from circulation all 
 the paper which it may have issued. We may soon exhibit the singular 
 spectacle of a commercial and agricultural nation, formidable in its power, 
 rich and varied in its resources, and yet possessing scarcely money enough 
 to supply the most common wants, or to meet the most trifling arrange- 
 ments of life. 
 
 There are few circumstances in society more striking than the effects 
 which are produced by the increase or diminution of the circulating curren- 
 cy of a country ; while it is increasing, every undertaking is accompanied 
 with -an expected or ascertained profit ; while decreasing, every experiment 
 is attended with hazard, with the apprehension or certainty of lx)ss. In 
 the former case, there is a general and regular advance in the value of 
 property and of labor. Purchases are therefore made with confidence, be- 
 cause it is supposed that property will be worth more to-morrow than to- 
 day ; labor is employed freely, because every one expects that the products 
 of that labor will more than repay its cost. Enterprizes of great magni- 
 tude are readily undertaken, because men look to the future with sanguine 
 anticipations ; improvements are everywhere extending, because all are 
 confident of an ample remuneration. On every side is seen the joyous as- 
 pect of animated and rewarded industry. In the same manner the high 
 price of manufactures stimulates the artist and the mechanic ; excites by 
 its influence the dormant faculties of the inventive, calls from obscurity un- 
 known talents, and fosters and protects the improvements and discoveries 
 of genius. On the same principle, the high price of produce encourages 
 the farmer in his laborious occupations ; enables him to build and to re- 
 pair ; to improve his tillage and his implements of culture ; to manure his 
 fields ; to add to his stock of labor, and to encounter any and every expense 
 which may be necessary to render his lands productive, or give comfort to 
 his home. But where money is "decreasing in a country, and every thing 
 else diminishing daily in its value, the prospect is entirely reversed'; confi- 
 dence is extinguished, and enterprize becomes totally unnerved. The crop 
 which is to ripen hereafter, is sowed without hope, and therefore without 
 care ; the manufacture which is to be finished at a future day, is commenced 
 in despair ; the commercial speculation which is to be realized after a dis- 
 tant voyage, is undertaken with anxiety and unremitted apprehension — all 
 are commenced from the necessity which exists of doing something ; all 
 
 45 
 
354 ANNUAL KEPORTS OF 
 
 may terminate under circumstances which will render them dii^astrous -- 
 Even in a few months money may have become comparatively so dear that 
 the returns of experiments will never repay their cost. Everything stag- 
 nates. No one will buy that property, which at a future day he may de- 
 sire or be compelled to sell; the work-shop of the mechanic is abandoned ; 
 the buildings of the farmer may decay, his lands may become exhausted, 
 his stock may perish ; he feels no inducement, in fact, he possesses no pow- 
 er, to make advances or to incur expense ; the returns for hi« labor will no* 
 longer repay him, He alone prospers in this state of society, who merits 
 least to prosper ; he whose means are useless to society and himself; the 
 miser who hoards, finds his wealth daily increasing. Money alone rises in 
 value, and therefore the wise men of this world will collect and accumulate; 
 and bury that which is only useful in proportion to the rapidity with which 
 it circulates. Creditors are supposed to prosper in such periods, and they 
 cettainly would prosper could they insure the jpayment of their debts ; but 
 in the general depreciation of property, their security melts away. The 
 means of the debtor are sunk and annihilated in his ineffectual struggles 
 to redeem his fortunes ; and it is probable, that although some may be suc- 
 cessful, yet viewed ofl an extensive scale, the creditors themselves become 
 finally the greatest sufferers. At such moments the moral character and 
 energy of man become depressed ; possessing no longer motives for im- 
 provement, feeling no excitement to exertion,. he sinks into inaction, and 
 his labor, his talents, and his powers are lost to his country. In this state 
 of society, migratioris commence. All who have been impoverished, and 
 find their fortunes still sinking under such untoward circumstances, but 
 who yet possess the means of transporting themselves, go in search of 
 some better or more fortunate country ; and diminish even by their de- 
 parture, the decreasing means of their ancient home. . 
 
 Let it not be said, that when the money of any country is reduced, it 
 only alters the former prices, not the relative value of property. That if 
 at any moment,' nine tenths of the circulating currency should be with- 
 drawn, the remaining tenth part will still represent the whole ; that one 
 dollar will be worth intrinsically as much as ten were before ; that a new 
 scale of value wall be established, but tha't the proportion between every 
 other species of property will remain unaltered. This may become true 
 at some remote and undetermined period, but it will be most ruinously un 
 true to -those who are actors and sufferers in the scenes of such a revolu- 
 tion, to those on whom this change will have to operate. It can readily be 
 imagined, that if any society could be trained and managed anew from its 
 infancy to maturity, any amount of money, however small, could be made 
 to answer the demands of its circulation. For a nation as populous and 
 as wealthy as the United States, one million of dollars might be amply 
 sufficient ; and if, during the growth of such a nation, that million had 
 gradually increased from $100,000, or ?rom $500,000, it would probably 
 have exhibited in its whole progress the features of an improving and pros- 
 perous country ; because during that whole time, there would have been a 
 regular increase in the value of all of its productions. But if the same 
 nation, having once possessed a circulating currency of ten millions of 
 dollars, should find that currency suddenly reduced to one million,, the i*e- 
 sult would be widely different. There would necessarily be a great and 
 immediate reduction in the value of property, but this reduction would bo 
 imequal. The connecting ligaments of society, as far. at least, as they 
 
PRESIDENT AND DIRECTORS 355 
 
 had referenqe to property, would all be broken, and the condition and rela- 
 tive position of every individual would be sensibly altered. In the great 
 leading division of society, the situation of debtor and creditor would be 
 most ruinously changed. Every mdln who, when money was abundant, 
 had contracted to pay, one thousand dollars, would, from the increased 
 value of money, have really to pay ten thousand. The debtor would have 
 to pay, and the creditor recaive ten timcs^ as much as they had mutually 
 agreed to pay and to receive. Again, in all the mingled relations of life, 
 where regular fees of fixed prices had usually been given for services per- 
 formed, wherever established rents or long leases should exist^no variation 
 would speedily take place, nor would tlje parties interested, bend to the 
 new state of things without a struggle. We have even known <3ases where 
 persons who considered their services or their talents peculiarly valuable, 
 have, under similar circumstances^ raised the price of their labor, to com- 
 pensate -if possible in this manner, for a diminished consumption. The 
 operation of such a measure, it will be easy more distinctly to trace. — 
 There would be immediately a general scarcity of money, and a consequent 
 inability to purchase at former prices, or to' maintain in each fiimily its ac- 
 customed expenditure. , There would be an universal diminution of con- 
 sumption. The cultivators and the manufacturers of perishable articles 
 will first feel the pressure ; they cannot waitTor the return of more pros- 
 perous seasons — they must sell at any price which may be ofiered, or lose 
 their commodities altogether ; but even with reduced prices, they w^ll not 
 find the former consumption — they will be compelled to produce less, and 
 to sell what they do raise or manufacture at lower prices. Now, with their 
 reduced incomes, they can no longer meet their usual expenditure ; one 
 will withdraw his children from school, because the prices of tuition have 
 been long fixed, and have not yet been graduated to a new scale, Anoth- 
 er will neglect his family in sickness, because the charges of the physician 
 are still regulated by former practice. All, if the rates of the butcher, 
 the baker, the tailor, the shoc-moker, &c. continue unaltered, will endeavor 
 to lessen to the uttermost their consumption, to avoid absolute ruin. On 
 the other hand, these persons all suffer in their turn, by diminished em- 
 ployment ; they feel their embarrasmeuts, but they know not when, nor 
 wherey nor how. to yield. Among the manufacturers and cultivators of- 
 imperishable articles, the same difficulties will also occur ; each will en- 
 deavoi* to maintain the prices of his labor as long as possible, will hold 
 back his productions from a falling market, and will struggle until his cap- 
 ital and credit are utterly exhausted. They yield only to unconquerable 
 necessity. The indigent must first fall ; those who have only their labor for 
 their support, are dismissed on all sides from employment ; they must beg 
 or perish ; those with small capitals or large families soon follow, and it is 
 only after a whole generation is swept away, that their places will be occu- 
 pied, if ever re-occupied, by a new race, educated under new habits, and 
 with views accommodated to new circumstances. In the mean time the 
 whole property of the country passes into tlie hands of those who have been 
 so opulent as not to feel the general calamity. Wealth acquires new- 
 power, and an influence unsuited to our systems; the indigent become 
 more independent, the affluent more rich ; the inequality of c6ndrtion, of 
 feeling, of views, continually increases, and the principles of rational liber- 
 ty will, in a short time, be gradtially undermined, or openly subverted. It 
 may well become a nation voluntarily entering on such a career, #o pause 
 and en(][uire, whether the object of its pursuit is worth the cost. 
 
356 ANNUAL REPORTS OF 
 
 Among the undetermined problems in political economy, among those 
 perhaps which can never he absolutely resolved, we m'ay consider that which 
 would adjust the proportion, which the active or monied capital of a society 
 ought to bear to that portion of its capital which is fixed and unchangea- 
 ble. But as in many cases where certainty is unattainable, we can yet by 
 approximation, secure some satisfactory results, there are even in this un- 
 settled question, some land-marks which may aid us in approaching our 
 destined object. 
 
 Money, or those objects which can readily be converted into money, i» 
 the immediate reward of labor ; the ultimate object of labor is generally 
 to a'dd to the value of real and immovable property. The active wealth 
 of a nation arises from, and consists in, the accumulations which are annu- 
 ally made from its labor, after defraying the expense Of that labor ; and 
 although much of this amount is generally lavished by the wealthy capi- 
 talists on -their domestic expenditures,"the greater part is usually employed 
 in adding to the real and permanent capital of the country ; to its cities, 
 its buildings, its canals, its roads and bridges, to its literary or, manufactu- 
 ring establishments, to its agriculture, to the general improvement of its 
 soil, or the embellishment of its surface. Now, that country only can be 
 considered as completely improved,/ which possesses labor sufficient for the 
 cultivation or decoration of every portion of its soil, however extensive or 
 diversified, sufficient to convert its whole surface into a garden or city ,- 
 and possesses at the same time, active capital enough to employ and re- 
 ward that labor. 
 
 It is unnecessary to remark, how far this country falls below such a 
 standard ; how deficient it still continues in its active capital. We neither 
 possess labor enough to cultivate our soil, nor wealth sufficient to ofier to 
 foreign labor encouragement and recompense. Let us, however, apply 
 other tests, let us employ other guides ; let us measure by other standards, 
 our approach' to that proportion which ought always to exist between the 
 active and inactive funds of a nation. 
 
 We may, perhaps-, assume it as a principle applfcable to all stages of so- 
 ciety, that the active capital of a country bears a fair and reasonable pro- 
 portion to that which is fixed and permanent, whenever real can be readi- 
 ly sold or converted into active property at a fair valuation ; or whenever 
 money ckn be obtained readily at a reasonable rate of interest, on secure 
 mortgages of real estate. We consider this last as probably the best test 
 which exists in this difficult inquiry. 
 
 In every country, some fixed price or premium for the use of money, 
 has usually been established by law ; a price intended to exhibit the average 
 profit that can be made by its actual employment. In infant societies the 
 premium allowed by the government, is generally lower than that average ; 
 because the active capital of such societies is necessarily small, and can 
 therefore, be always advantageously employed. A young country has not 
 had time to make those accumulations which constitute wealth. To its 
 small capital a thousand modes of profitable investment are open. The 
 real value of money is therefore great, and this value is constantly en- 
 hanced by the sanguine temper of mankind, who view in untried experi- 
 ments, unknown and unparalleled advantages. As the capital of the country 
 continues to increase, the most lucrative employments are gradually occu- 
 pied. Competition diminishes the profit, and capital is insensibly diverted 
 to other and less productive uses. In this manner the average profit of 
 
 J 
 
PRESIDENT AND DIRECTORS. 357 
 
 money, by degrees, lowers tp that standard wliich tlie law has fixed, and in 
 process of time it will become difficult, even to obtain the profit which the 
 government allows for its lise. It is in this state of things that money 
 will come freely into the market Men who may possess prudence, and 
 wjio may yet perhaps possess neither skill nor industry to render any mo- 
 ney productive, when every path of labor, when every department of trade 
 is fully occupied, and when on every side they have to meet the competi- 
 tion of able and enterprising antagonists, will prefer the certainty of well 
 secured interests to the hazard of Experiment. Money will then be regu- 
 larly off'ered on loan, and can be readily obtained by all who have unques- 
 tionable security to off"er. With the increase, of wealth, this efi"ect will be 
 yet further extended. Money will cOme into competition with money, 
 until the premium for its use will fall below the standard fixed by law. 
 In Holland, in its most prosperous age, the interest of money was as low 
 as 2 or 3 per cent. In England, and in many parts of Europe, the inter- 
 est of money at the present time is scarcely more than 4 or 5 per cent. 
 In this country it has rarely been below 10 or 12 per cent, excepting when 
 it has been borrowed from the Banks. The great deficiency of our active 
 capital then is obvious ; and the great benefit to us of Banks, has been 
 that they have supplied, in some measure, that deficiency — that they have 
 been able to substitute credit for capital^that they have in fact created 
 capital, and accelerated the progress of our country to prosperity and 
 power. It would appear .almost unnecessary to add, what seems indeed a 
 self-evident proposition, that if moijey can be made to produce" an annual 
 profit of '8, 10 or 12 per cent, and can be borrowed from Banks or 
 frofti any source whatever at 6 per cent, the surplus profit is a substantial 
 gain, a real addition to the wealth of the country. Nor will it be of any 
 consequence to what extent the operation is carried. As long as money 
 can be made to produce more than it costs, so long will its employment 
 be beneficial ; and whenever it ceases to produce what is demanded fox its 
 use, including also the necessary expense of management, we are bound 
 to believe, reasoning on the common principles of human nature, that it 
 will no longer be borrowed or employed. 
 
 If, from theory, we turn for a moment to facts, if we examine the actual 
 state of our property, our commerce and our currency, we shall perhaps be 
 led no less certainly to perceive the deficiency of our active capital. It is 
 not in our power to estimate the property of the United States, or the 
 amount of money which may be necessary to give activity to the wealth 
 of this great nation; but with regard to our own State, we possess many 
 materials which may assist us in this inquiry, and facts which will scarcely 
 admit of doubt. 
 
 The property of the State of South Carolina may be safely valued at 
 200,000,0.00 of dollars ; and of the annual exchange of property, the fol- 
 lowing estimate will furnish some idea. The annual exports from South 
 Carolina have averaged, for the last three years, upwards of 10,000,000 of 
 dollars, and the imports we may suppose to have been at least equal. The 
 general amount of imports in the United States in that time, has greatly 
 exceeded the amount of exports ; and if the Custom House books of this 
 city should not exhibit direct importations from Europe to that extent, 
 there is no doubt that we have received our fair proportion of the goods 
 imported into our northern cities, from Europe and India. Now, many 
 of our native productions change owners twice before they are shipped ; 
 nearly all the imported articles change owners as often befor^ they are 
 
358 ANNIML REPORTS OF 
 
 consumed. Many of them are transferred four, five, or "even ten times before 
 they are finally used. We may, therefore, with prudence, suppose that 
 one-half of this property is twice transferred. Tliese latter exchanges might, 
 it is true, he most correctly classed under the head of internal commerce' 
 yet for greater simplicity in our statements, we have placed them here! 
 The general r.esult will be as follows : 
 
 Annual/exports- -'-_-.... _ .--$10,000,000 
 
 ^ Annual imports . 10^00,000 
 
 Exchange of these commodities, on the supposition that one- 
 half of the total amount has been twice transferred : 10 OOO.OOO 
 
 -$30,000,000 
 
 In England, the internal commerce of the country so far exceeds the 
 external, that their writers on the subject assume ten for one as a rate so 
 moderatQ, as to admit of no controversy. In this country, however, as we 
 have not yet become a manufacturing people — as our great staple produc- 
 tions are raised for foreign markets — as even our permanent improvements 
 are few, and those not extensive, the proportion is by no means so great ; 
 yet when we consider the multiplied exehanges of property 'at home, the 
 sale and re-salo of lands, houses, ncgtoes, hors6s, cattle, furniture, plate 
 and stock* of every description ; the purchases for daily consumption, in- 
 dependent of imported articles ; the taxes, national, state and corporation, 
 which are paid and again expended ; the income and expenditure of socie- 
 ties, charitable, literary or social ; tlie emoluments of professional persons, 
 clergymen, physicians, lawyers, magistrates, &c. ; the wages paid to labor- 
 ers, overseers, mechanics ; the rent of houses, stores, wharves ; the divi- 
 dends on stock ; the capital employed in building or repairing private, or 
 public edifices^ or in establishing manufactories; the payment of debts, 
 legacies and inheritances ; in short, were we to trace every transfer which 
 the wants or the necessary consumption of society occasions ; every ex- 
 penditure, whether of necessity, folly or vice, it will readily appear that 
 the internal exchanges of a country, though more difficult to ascertain, 
 must far exceed its foreign commerce. ■ • 
 
 In Great Britain the amount of exports may be considered as averaging 
 from 40 to 50,000,000 of pounds sterling, and the amount of pape"r issued 
 by the Bank of England is generally about £30,000,000. But private 
 bankers in England issue paper also, and the amount of their paper is sup- 
 posed to be at least as great as that of the Bank of England. The issues 
 also, made by the Bank and bankers in Scotland and Ireland, add greatly 
 to the aggregate amount. But besides this, the great bankers in London 
 have weekly meetings, at which, by balancing and transferring debts and 
 credits, they are supposed totransaet business to the amount of £400,000,- 
 000 sterling a year ; the whole of which would otherwise form' money trans- 
 actions, and would require of course a proportional increase of money. In 
 this country this system is unknown, as we have wisely and fortunately in^ 
 stituted private incorporated Banks, for the English practice of -private 
 
 * It may give some idea of the amount of the internal exchanges of the country, to 
 state, that from the best information that could be obtained, it appears that the sales of 
 stock of different descriptions (Bank, Insurance, United States stock, &c.) made in 
 Charleston, during the year 181H, exceeded, considerably, five miUions of dollars 
 
PRESIDENT AxND DIKECTOKS. 359 
 
 bankers ; \ye say forluiiately, because notwithstanding tiie cmbarrassmentB 
 of many Banks at the present moment, we believe no one seriously appre- 
 hends from them any worse evil than procrastinated payments. They are 
 substantially solvent. But every one acquainted wdth the internal and lo- 
 cal history of Great Britain, knows that the losses in ijhat' country, from 
 the failure of private bankers are immense, and perpetually recurring. — 
 The complaints of individual ruin from this source, may be heard from 
 every quarter ; and it may give some idea of the multitude of this evil, to 
 state, that in the years 1814 and 1815, upwards of two hundred ajid forty 
 private bankers stopped payment, the greater part of whom were truly in- 
 solvent. Yet in their day, they contributed to supply the currency, which 
 the vast commerce of that empire requires ; afid their places have necessa- 
 rily been filled by new names, producijig the same effect. The immense 
 circulation of that country has been supported by piiblic or private credit, 
 by bills of public Banks or private bankers, to an. amount many times great- 
 er than its foreign commerce. 
 
 We have reason to doubt, whether the amount of paper issued by the 
 Banks in South Carolina, has ever exceeded, at one time, five millj^ons of 
 dollars, or one-half -of the value of our annual exports. That amount is 
 now greatly reduced. We confidently, however, believe, not only that the 
 largest sum which has eye/ been issued by our Banks, but that a much 
 greater amount could be immediately and profitably employed; and would 
 yet leave us very far behind many nations in the means of increasing the 
 wealth and improving permanently the resources of our country. 
 
 We have, fortunately, before us a memorable fact. When the ^Bank of 
 the State of South Carolina was established, Columbia was but a small vil- 
 lage, with few improveraepts and little commerce. It was supposed when 
 the branch of oiir Bank was established in this place, that one hundred 
 thousand dollars could, be used, and that two hundred thousand dollars 
 might be tried. After the experience of six years, after the capital of this 
 branch has been enlarged to nine hundred thousand dollars, the Board of 
 Directors now declare that two, perhaps tliree millions of dollars, could be 
 safely and advantageously employed. With this creation of capital, the 
 improvement and comiilorce of Columbia have steadily advanced. They 
 have excited, and w^e hope will, continue to excite, universal attention. 
 
 Shall it be said that the improvements of Columbia are the results of an 
 artificial stipiulus ; that 'its edifices are paper fabrics ; that its commerce is 
 ruinous and overstrained ; that its wealth is fictitious, and its increase omi- 
 nous and unnatural. It would be easy to demonstrate that they are all the 
 necessary and almost inevitable results of capital placed within the reach 
 of enterprize and exortioa. And when we add, that of the whole amount of 
 debt; which appears on the books of this branch, we are assured that not 
 one individual debt is considered even as suspicious, we give every proof 
 which can be required, that the transactions of this branch have been real 
 and substantial. We have every reason to believe and to hope, that they 
 have been as beneficial to the individuals interested in those transactiens, 
 as to the institution itself. 
 
 Augusta will still further illustrate and strengthen our observations. — 
 Situated like Columbia and Camden, at the head of good navigation on one 
 of our great rivers, she naturally, by her position, commanded the com- 
 merce of the country irrigated by the Savannah. But having fortunately 
 possessed, the advantages of an early and extensive us(; of capital, she has 
 been able to make her marts the centre of a large and increasing circle of 
 
360 ANNUAL REPOilTS OF 
 
 business, and has become one of the most flourishing inland cities in the 
 United States. 
 
 Camden occupies on the Wateree precisely the same situation which Co- 
 lumbia holds on the Congaree. Both are the' head of navigation on streams, 
 whose course through the rocks of our primitive country is still impeded. 
 The "Wateree, when the impediments which now obstruct its channel shall 
 be removed, will admit of a navigation more extensive, and through a 
 country probably richer than that which is drained by the Congaree. At 
 present, the local advantages and disadvantages of each of these places, 
 are similarj and nearly equal. Nature has given to Camden almost evefy 
 privilege which an inland commercial town can require ; yet from the want 
 of capital, its improvements for tht3 last twenty years, laave been very in- 
 considerable. It has been left to that slow accumulation of capital, whicli 
 is ."Supposed to be natural and wholesome, and it has remained stationary. 
 
 Nor ought this to create any surprise. When the inhabitants of a 
 country, contiguous to s^. sxnall market, offer their productions for sale, and 
 find that although they may be able to obtain for them a fair nominal 
 price, they cannot immediately obtain money, that they must allow a credit 
 until their own 'produce can be sent to another mart, where- monoy can be 
 procured ; it is natural, under such circumstances', that those who raise 
 the articles, should find or imagine it to be their interest to transport them 
 at once to ttfat market, where their value can readily be realized. In this 
 manner the small market is gradually abandoned, and all of those produc- 
 tions which cannot bear the expense of a distant transportation, are lost 
 altogether. 
 
 Chatham, or some adjacent spot on the Peedee possesses advantages ex- 
 actly similar to those of Camden or Columbia. It is situated at the head 
 of navigation, on an extensive river traversing one of the richest tracts of 
 country in the maritime States. Capital only is wanted to locate the com- 
 merce of a most fertile district ; and a capital could be employed on this 
 river, equal to that required either by Camden or Columbia. Let it be re- 
 membered too, that the business of these rivers is entirely distinct, and can 
 scarcely be made to communicate. When we were preparing last winter 
 to establish a branch of our Bank at Camden, we were led to enquire 
 whether some of the capital employed in Columbia could not be diverted 
 to that place ; whether in fact, much of the business of Columbia was not 
 done for the inhabitants of the Wateree and Catawba; we were surprised 
 to find that of the amount of debts' due to the Bratich at Columbia, not 
 more than one-fifteenth part could be transferred ^io Camden.-. 
 
 We have only noticed the most prominent stations in oitr State, those 
 positions which promise to become the i^entral points of an extensive com- 
 merce. It is unnecessary to consider the wishes of Oeorgetown for an en- 
 largement of capital ; the claims of Beaufort for the establishment of a 
 branch ; or to advert to those places in our western districts, which must 
 become the marts of considerable business. " Whenever the improvements 
 which the State has so wisely, so liberally, so happily commenced on our 
 rivers, shall be completed, these positions will be distinctly indicated. — 
 Wherever navigation on each great stream shall necessarily cease ; wher- 
 ever boats can begin to receive the produce of our soils, at those spots, 
 towns must arise, whose business and importance will depend on the fertil- 
 ity and improvement of the surroxinding country. At every one of these' 
 points capital will be wanted, and could be usefully invested. The 
 
PRESIDENT AND DIRECTORS. 361 
 
 Resources of our country would bo explored, invigorated and extended ; new 
 sources of wealth would be opened to our citizens ; new demands would 
 be created for consumption ; new employments offered to labor, and new 
 action given to the whole circle of productive industry. 
 
 Yet, under all these circumstances, with so obvious and almost universal 
 a deficiency of our active capital, the local Banks have been assailed as thfi 
 authors of all of the evils and embarrassments of the country. To their 
 over issue of paper, every difficulty has been ascribed. It has been asserted 
 and reiterated, that by this means they had not only caused the high price 
 of property and produce throughout the United States, as if this had been 
 a ruinous and enormous evil ; but had 151 fact, caused a real depreciation 
 in our currency. To these charges permit us briefly to reply. 
 
 The price of every article of exportation, in a fair and open market, is 
 generally that which the prices in the consuming markets will authorize to 
 be given. Competition will raise this price as high as it can be carried con- 
 sistently with the risk which must be run, and the mercantile pcofit which 
 ought to be received on every transaction. The ardor and sanguine tem- 
 perament of individuals, will cause them sometimes to exceed this point, 
 but this does not generally occur. No man is so infatuated as to purchase 
 with a certainty of loss ; no one so inconsiderate as to reduce himself, de- 
 liberately and intentionally, to bankruptcy. The high prices of produce 
 were not caused by the facility with which money could be obtained from 
 the Banks in this country, but from the high prices which wel'e received in 
 the European markets. The infatuation was not with us. High prices 
 were given here, because high prices were received abroad ; not because our 
 produce was paid for in a depreciated currency. The price of all other 
 things necessarily rose with that of the staple article of the country. The 
 value of labor, when employed in the culture of cotton or rice, regulated 
 its value in all other occupations. Likewise, labor was diverted to the 
 production of the most profitable articles, until the scarcity of other jpom- 
 modities enhanced in turn their value. For two years these great prices 
 were given without loss. Every one, however, supposed the markets to be 
 unnaturally high, and asserted that they must inevitably fall. But no one 
 was wise enough to foresee the hour ; much less could any one anticipate 
 the rapidity or the extent of the fall. Many a tottering bridge, which has 
 been long used with safety, has at length overwhelmed some adventurer, 
 inore unfortunate certainly, but perhaps not more imprudent than the thou- 
 sands who had passed before him and escaped. The prices in the Europe- 
 an markets at length suddenly gave way, and the prudent and imprudent 
 appear equally to have suffered. When the price of cotton at Liverpool 
 was 38 to 40 cents, and appeared to be still rising, 30 and 38 were given 
 for it in this country. Does any one believe that if our Banks were again 
 in full operation, if all of the money which circulated eighteen months ago 
 was now current, that the prices of the last year would be given for cotton, 
 when that article sells at Liverpool from 23 to 28 cents a pound ? It rose 
 formerly, and has fallen now, exactly in proportion to the European price, 
 proving both in its rise and in its fall, that the money of each place was of 
 equal value ; and if it shpuld be said^ that the money of England as well 
 a,s of the United States, was a paper currency, we have only to add, that 
 the prices at Havre were generally as high, frequently higher, than at Liv- 
 erpool, and at Havre paper is unknown. Besides, if when rice was quoted 
 at the Havana at $8 and $9 per hundred, $12 or $15 could have been ob- 
 
 46 
 
362 ANNUAL llEPORTS OF 
 
 tained in Charleston, we might then have readily perceived, that we were 
 using a depreciated currency. But if, when rice was $8 or ^9 at the Ha- 
 vana, it was difficult to obtain for it $5 or $6 in Charleston, it unquestion- 
 ably praves the paper dollar of Charleston was as valuable as the silver 
 dollar of the Havana. But we need not enlarge on this point. Since the 
 premium on dollars themselves, much as they have been wanted for a par- 
 ticular purpose, has rarely exceeded 5 per cent, and we doubt if more than 3 
 per cent, has ever been given in Charleston for sums of any magnitude ; 
 how idle is it to speak of the depreciation of our paper, of that deprecia- 
 tion, we mean, which can injuriously affect the commerce and resources of 
 our country. The issues of the Banks, within the last twelve months, have 
 been greatly reduced. Does any one believe that their bills are now more 
 valuable than they were formerly, excepting as money itself has become 
 more valuable ? Has any one felt his confidence in them increase as their 
 amount has lessened. If we were to feel a doubt on this subject, it would 
 be that aS the value of property in general has been diminished, and as the 
 security for the payment of debts has been consequently reduced, the value 
 of Bank paper itself has been endangered by this operatien. But we have 
 no doubts whatever. As far as the Southern Banks, at least, are concern- 
 ed, we know that they can be conipelled by the Bank of the United States 
 to call in their paper ; .that they can be compelled to discontinue business ; 
 they can be rendered unprofitable to their proprietors, and useless to the 
 community ; but they cannot be rendered insolvent.'. 
 
 If we have extended our observations on this subject, it is because we 
 believe that wrong impressions have been made on the public mind, and 
 very erroneous causes assigned for the general embarrassments of the 
 country. While to over-trading, as it has been termed, so many disastrous 
 effects have ^been imputed, can we seriously believe, that the failure of 30 
 . or 40 mercantile housies in Charleston, of whom not more than three or 
 four were in extensive business, could have produced such universal dis- 
 tress? Even when to this we add, what ought perhaps fairly to be added, 
 the losses sustained by those merchants who have not actually failed, but 
 whose resources have been crippjed, and whose enterprize depressed by un- 
 fortunate shipments, the effects still have been, too great for the specified 
 cause. li^r it must be remembered, that the produce on which so niucb 
 has been lost, was purchased in our own markets, was the growth of our own 
 soil ; the high prices by which the shipper was injured, were paid to our 
 own citizens. The losses on one side were compensated by profit to ano- 
 ther. But our embarrassments have a deeper and far more extended foun- 
 dation. They have arisen from the sudden and rapid diminution of the 
 cii'culating currency of the country ; from the necessary and inevitable de- 
 preciation of property of every description ; from the consequent inability 
 which every man feels of converting unproductive into productive capital ; 
 of exchanging property for money ; of procuring loans or accommodations 
 even from usury itself; or of meeting his engagements without sacrifices 
 so enormous as to sweep away credit and capital in promiscuous ruin. — 
 This evil has pervaded the whole Union ; has spread to its outermost limits; 
 has penetrated to its most quiet recesses. It has affected, in proportion to. 
 his means and engagements, every inhabitant. A cause so extensive, could 
 alone have produced this general stagnation ; this universal pause in the 
 pecuniary transactions of our country. ' • 
 
 In our investigation of this subject, it has not been possible, neither has 
 
PRESIDENT AND DIRECTORS. 363 
 
 it been our intention, to overlook the great principle on which, perhaps, the 
 whole inquiry rests ; we mead the nature of currency itself. The restora- 
 tion of a metallic currency has been the avowed object and apology for the 
 Government and Bank of the United States, in their recent operations. It 
 becomes necessary to inquire, whether, in the present state of the world, a 
 metallic currency, sufficient for the wants of our country, is attainable, and 
 whether, if it be obtained, it will be worth the necessary cost ; whether, in 
 fact, a currency equally good, perhaps better, may not be established, with- 
 out any of those sacrifices which our country has already been obliged to 
 make, and which it must, for a long time, continue to make, to secure this 
 fugitive and evanefecent object. . 
 
 Let us, then, inquire, what is the real and natural standard of a circula- 
 ting currency. ; what that currency has to perform ; on what it must act ; 
 what it must represent, measure, and regulate ; and on what principles it 
 ought to be constructed. 
 
 Labor is the foundation of property. From, the accumulations of labor 
 all wealth has been derived, and the value of almost every descriptiiTn of 
 property may again be resolved into the labor whicb has been employed in 
 its production, or for its acquisition. Labor is necessary to society ; nature 
 is bountiful and liberal, but she nowhere spontaneously feeds, and cloths, 
 and provides for man. She has ^iven him. means and motives, she has 
 given him members formed for action, and an understanding designed to 
 govern and direct them ; with the power, she has entailed on him the 
 necessity of exertion. In his individual, as in his social state^ he cannot 
 exist without consuming, ^d the articles of consumption must be produced 
 or procured by labor. In his savage state his wants are few, but those 
 wants must be supplied ; in a civilized state, they are perpetually increas- 
 ing and multiplying, and his labor and talents must be unceasingly engaged 
 in furnishing the means of subsistence, of gratification, of enjoyment, 
 which society demands. Labor bears a relation to man as necessary and 
 as durable as the materials of which society consists; eternal, if the race 
 of man could endure forever. . 
 
 Labor is not the foundation of property, but it is the standard by whicli ' 
 all property must^be measured. It bears, and must forever bear, an indis- 
 pensable and almost definite relation to life. A certain quantity of labor 
 is necessary to produce a certain quantity of food and clothing; and a 
 certain quantity of food and clothing is necessary for the support of any 
 given society. There may be som,e small variations; an impoverished 
 society may ^ consume a little less, a wealthy society may waste a little 
 more, but within these limits the demand and consequent value of labor is 
 absolute^ or society must dissolve and perish. The value of all things 
 else may sink and cease altogether, but the value of labor is secured and 
 maintained by the unchangeable wants and condition of man. 
 
 Whether, then, we look on the past or to the future, labor is that stand- 
 ard by which all things must be measured. If we are desirous of knowing 
 the value of any species of money itself, in any of the past ages of the 
 world, we are obliged to inquire and ascertain what quantity of labor, or 
 the immediate products of labor, it could at any time have commanded. 
 If we wish to secure the income of property foy a long period to come, it 
 is to labor, or the immediate results of labor, that it must be made payable. 
 Labor has always formed, and must and will forever form, the only triie 
 standard of property. The object of a currency will be to measure, to 
 
364 ANNUAL REPORTS OF 
 
 transfer, to excliange that labor. Under whatever forms it may be dis- 
 guised, however multifarious the shapes it may assume, the constituent 
 principles of property may still be reduced to labor ; and money is the 
 type or symbol which should represent that labor. 
 
 We know that in the value of labor itself there are flucttiations, that its 
 market perpetually vibrates ; but these oscillations are within small and 
 natural limits ; they amount to much in the minute, but nothing in the 
 hour ; they appear considerable when near^ but at a small distance of time 
 or space, they become insensible. There is nothing more stable connected 
 with man. There is also in labor a strong and almost irresistible tendency 
 to find and to preserve one common and average value. Wherever society 
 is unshackled, wherever government imposes no undue restrictions, this 
 disposition becomes immediately apparent. If labor should become more 
 profitable in one place or.in one pursuit than another, it would be drawn 
 very speedily from those occupations or places where it was cheap and 
 abundant ; whenever it became ynproductive, it would be removed and 
 scattered, or transferred to some njore profitable emploj^ment. Even in 
 those pursuits which appear to depend on chance, the same regulating 
 principle prevails. In searching for diamonds and pearl, in digging for 
 gold and silver, great fortunes are sometimes suddenly and accidentally 
 acquired ; but they only bear a fair proportion to the total amount of labor 
 which has been expended in such adventures ; otherwise, wherever enter- 
 prize is free, wherever the employment of capital is unrestrained, if great 
 profits were made on every experiment, or by a moderate expenditure of 
 labor, more labor would immediately be divert^ to these pursuits, until 
 the sources of profit were exhausted, or until the value of the commodities 
 themselves should be so niuch reduced bj their abundance, as to yield no 
 more than a fair average profit. We might multiply our illustrations, but 
 we should still find that labor is that standard which a currency must 
 ultimately measure and represent. 
 
 The current money of different nations has been variously, constituted. 
 Among barbarous people it has been generally rude and inartificial ; shells, 
 beads, leather, objects of little or no intrinsic value, having no means 
 pledged for their redemption, have been used, and have supplied the mode- 
 rate wants of ignorant and poor communities. <xrain, where it has been 
 cultivated, cattle, where they have been reared, salt, or the productions of 
 the chace, have, by various nations, been extensively employed ; they form- 
 ed a new era in commerce, deriving from their intrinsic value the value 
 which they bore as money. But when metallic substances became known, 
 their beauty, their indestructibility, their general utility, rendered them 
 objects of cupidity to almost all mankind ; they were gradually employed 
 as the standards of value, and became the current money of the civilized 
 world. Possessing really much intrinsic value, they yet derived from their 
 employment as money, for which, by their durability, they were peculiarly 
 well adapted, a steadiness and permanence of value, which otherwise they 
 would not have enjoyed. Finally, however, in the vast increase and 
 improvements of modern society, as a metallic currency became too cum- 
 bersome and inconvenient for the rapid circulation of commerce, or per- 
 haps became unequal to represent the vast accumulations of property, but 
 on a greatly reduced scale ; a symbolical 6urrency has again been intro- 
 duced, bearing with it the improvements of the age. Negotiable notes given 
 by individuals known or supposed to be able to redeem them when due ,' 
 
PRESIDENT AND DIRECTORS. 365 
 
 Bills of Exchange drawn on the credit of property sold or exported ; Bank 
 Bills issued on a pledge of property actually deposited, or on the names of 
 persons considered as solvent, have become the current money of the most 
 commercial and most prosperous nations. Paper worth intrinsically noth- 
 ing, now represents property whose value can scarcely he computed ; now 
 bears on its buoyant though apparently unsubstantial wings, the wealth, 
 the commerce, the resources, perhaps the destinies, of mankind. 
 
 Money being intended to represent, to act upon, to measure property, 
 the high attribute which it ought to possess is stability. It should be so 
 constituted that its value should be permanent, if possible, unchangeable. 
 That the sum which represents, to-day, the value of a day's labor, should 
 represent that value an hundred or a thousand years hence ; that what is 
 received for a certain amount of labor now, should always command again 
 the same, or nearly the same labor. The two great conditions on which 
 this will depend, are first, that the money of a country, the type or symbol 
 of its property, should be unchangeable in its own value ; secondly, that 
 it should always bear a certain proportion to the wealth of a community, 
 increasing and diminishing with its prosperity and decline. When these 
 conditions are obtained, the great purposes of a currency are accomplished, 
 and the property- of nations and of individuals secured, as far as human 
 wisdom can secure it, not only from the sudden and ruinous fluctuations 
 which overwhelm, but from those silent changes which gradually undermine 
 its value. 
 
 Omitting, in our investigations, those substitutes for a currency which 
 have been issued only by ignorant nations, we will examine those which 
 have been extensively adopted in the civilized world ; they are only two, 
 the precious metals and bills of credit. 
 
 The precious metals possess, as a circulating currency, many advantages : 
 their beauty, their durability, their ductility, their great intrinsic value^ 
 qualify them peculiarly well for this office. They are indestructible by 
 the common operation of the elements — susceptible of minute and almost 
 interminable divisions, and they represent in a small compass great value. 
 Their use as money has besides given them an almost uniform value in the 
 estimation of all nations ; they are not only money but property itself, and 
 he who possesses a metallic coin possesses not only the type or symbol of 
 property, but the substance. This has rendered them particularly desi- 
 rable in unsettled periods of the world, in moments of anarchy and confu- 
 sion, amidst the revolution of empires, amidst the convulsions and destruc- 
 tion of governments. and of nations. Hence, too, the timid and cautious 
 have always been unwilling to abandon what appeared to be a real repre- 
 sentation of property, and to substitute in its place a symbolical currency. 
 These are their advantages ; they are obvious and well known. Their dis- 
 advantages have perhaps been less considered, and therefore merit a more 
 particular examination. , 
 
 The disadvantages of the precious metals are, in the first place, that they 
 can be easily counterfeited, altered, or debased. On this point one fact 
 will almost suffice : In Great Britain,' where the bills of the Bank of 
 England have been so coarsely executed as to have drawn down on the Di- 
 rectors of that Institution the animadversions of the public from every 
 quarter ; so coarsely that juries at length have refused to find verdicts 
 against forgers, under the impression that the Bank, by its negligence, had 
 tempted them to sin ; so coarsely that they can be imitated by every one 
 
366 ANNUAL REPORTS OF 
 
 who knows the use of the graver ; yet the trials for counterfeiting the coin 
 
 of the country, have always borne to those for forging Bank bills at least 
 
 the proportion of seven to one. In this country proper regulations on the 
 
 part of our government, might probably procure for us a gold currency . 
 
 By undervaluing gold in comparison with silver, we have driven it out of 
 
 our country; by giving it the same comparative value which it bears in 
 
 the West Indies, it would perhaps return*; and gold is not absorbed by our 
 
 East India commerce. But gold,' as a metal, is so soft, and bears so high 
 
 an intrinsic value ; the temptation to debase it so strong ; it can so easily 
 
 be alloyed, in proportions or with substances not readily ^detected, that 
 
 with us it will soon become an unpopular currency. Even when not debased 
 
 it is so easily clipped or filed or sweated, that after a gold coinage has been 
 
 a short time in circulation, it would become necessary for every individual to 
 
 provide himself with scales and proper weights, and to understand the use 
 
 of the hydrostatic balance, that he might be able on all occasions to ascertain 
 
 the weight and probably the purity of the coin he should be obliged to 
 
 pay or to receive. Without these precavitions, it is easy to perceive, that 
 
 a gold currency would soon lose its great recommendation, that of possess^ 
 
 ing an intrinsic value equal to the value it is said to represent ; the coin 
 
 would become only tokens supposed to represent a certain value. Silver 
 
 is exempt from some of those inconveniences, but it is more easily imitated 
 
 and alloyed and debased than gold. And we must, in addition, remember 
 
 that the mildness of our penal laws would certainly attract to our shores 
 
 all of the workmen in gold and silver, all of the artificers of light coin 
 
 whom Europe had to spare. 
 
 In tlie second place, the quantity of gold and silver extracted from the 
 earth, appears no longer to keep pace with the wealth and improvements 
 of the world, and has perhaps become incompetent to represent the vast 
 accumulation of property, which the industry and talents and exertions of 
 man have heaped together. We live in an age when a tide of prosperity 
 is overspreading every region which the foot of man can traverse. Every 
 people, every nation is becoming enterprising, intelligent and commercial ; 
 ^very one endeavors to draw to itself some portion of those treasures 
 which the mines of Peru and Mexico still yield. It is not now as of old, 
 when only one or two luminous points were to be seen along the horizon 
 of a benighted world ; when the resources of mankind were or easily 
 could be collected in a few dominant- stations. The inhabitants of Europe 
 are colonizing or improving every portion of the globe ; they carry with 
 them their arts, their intelligence and their wants ; and the products of hu- 
 man industry have acquired a magnitude and a value unknown to any for- 
 mer age. But still the predominant and most steady want is that of the 
 precious metals, because they have everywhere been made to represent and 
 command property ; because they are everywhere the most ready instru- 
 ments by which pleasure, influence or power can be procured. Hence 
 they have become objects of such universal demand ; hence in every country 
 they have become difl&cult to acquire, niore difficult to retain ; and hence 
 it is, that having become insufficient for the circulating currency of the 
 world, one general complaint is heard of the scarcity of money, and the in- 
 dustry of man appears to be oppressed by a deficient circulation. 
 
 It is necessary, also, to recollect, that this increasing demand for gold and 
 silver does not arise solely from the increasiDg commerce of the world, and 
 from the necessary want of a corresponding and proportioned currency ; it 
 
PRESIDENT AND DIKECTORS. 367 
 
 arises in a great measure, from the increasing demands of Itixilry, and the 
 now almost necessary uses of domestic life. Even if we were to presume 
 that each portion of the precious metals which is wrought into solid plate^ 
 into permanent articles of ornament or use, might by necessity be again 
 restored to circulation ; it would yet be difficult to ascertain, or even to form 
 any conjecture that would be probable, of the quantity which, in plating or 
 gilding, is annually consumed ; which in various manufactures is so far at- 
 tenuated as to be finally wasted ; or which by accidents on land or in the 
 ocean, is forever lost. It is the remark of an English writer, that all the 
 bullion of Grreat Britain, in the reign of queen Elizabeth, would not plate 
 the carriage harnesses of the reign of George III. Nor will a comparative 
 scarcity of the precious metals, affect or suspend these operations. Manu- 
 facturers can always afford to give for bullion more than its standard value, 
 because they still charge on their productions a price proportioned to the 
 cost of th^ materials they are obliged to use ; they will still receive on their 
 expenditures, their customary profits ; and in an age of refinement and 
 wealth, it is not a small rise in the price of gold and silver, considered as 
 raw materials, which will diminish the calls of vanity and fashion. 
 
 One circumstance connected with this branch of our enquiry, merits 
 very serious attention. . Until within the last thirty years, the whole trade 
 between Europe and her colonies on the one part, and the great nations in 
 the east of Asia on the other part, was monopolized and locked up by 
 privileged companies. A few individuals, in fact, regulated this great 
 commerce. They imported and exported exactly such articles, and to such, 
 an amount, as they thought proper ; taking effectual care not to overstock 
 the markets of either country, with the commodities in which they traf- 
 ficked. Yet even under the advantages o^ this monopoly, it iS known that 
 silver constituted the great and steady article of export to Asia. This 
 silver, however, was always then procured on the most advantageous terms, 
 and shipped only to such an extent as the European market appeared 
 conveniently to afford. Of late, all of the ancient restrictions have been 
 broken down ; the commerce of the East has been thrown open to 
 the enterprise of both Europe and America. It has already been extend- 
 ed far beyond the calculations of former times ; it is annually increasing, 
 and its final results we have yet to learn. 
 
 From causes which it is unnecessary here to examine, the price of labor 
 has always been, and continues to be, much lower in the east Indies and 
 China, than in Europe or America. Labor among the Asiatics is indeed 
 so cheap, that the inhabitants of Europe have been able to contend with 
 them in manufactures, only by the aid of machinery, only by that immense 
 power with which they have been armed by genius and science. If, there- 
 fore, a dollar will purchase many times, perhaps six, eight or ten times as 
 much labor in one xiountry as in the other, it must possess nearly in the 
 same proportion, so much more value, so much more power. And if we 
 reason strictly on the subject, we must conclude, that so long as silver con- 
 tinues to be much more valuable in the east than with us, so long must it 
 continue to seek that better market. This operation can only cease, a re- 
 action can only be expected, either when the abundance of silver in China, 
 shall hav6 raised the price of labor in that country; or until its scarcity 
 here shall have reduced the price with us to some common level. — 
 The former of these conditions, after three centuries of uninterrupted 
 commerce, appears to be as far from its accomplishment as ever ; the latter 
 condition we candidly acknowledge we wish not to sec accomplished 
 
 L 
 
368 ANNUAL REPORTS OF 
 
 Many advantages would unquestionably result to the, arts and to manufac- 
 tures, from having labor reduced to three, four or five cents ^ day ; but 
 these advantages would be obtained at an immense expenditure of human 
 happiness. 
 
 On the metalic capital of the United States, the East India commerce 
 acts with peculiar effect. Europe possesses now a few manufactures adapt- 
 ed to the eastern market ; and the Europeans procure from the Spice 
 islands they hold in the Indian Archipelago^ some articles, of which even 
 the Chinese themselves acknowledge their want. The United States have 
 none of these resources. The petty supply of ginseng they formerly fur- 
 nished, appears no longer to be demanded ; a few of our enterprising sea- 
 men traverse the ocean, and collect the skins of the Sea otter, and Sandal 
 wood, and sometimes the birds' nests of the Molucca lalands, as portions 
 of an outward cargo ; but the great mass of our shipments is constantly 
 specie — and on the silver we export to China, gates, like those of death, 
 are closed for-ever. This unsatiated commerce absorbs all of the specie 
 which the enterprize of our citizens is able to collect. It does not act at 
 intervals, giving the metallic capital of the country time to recruit after 
 each loss. Its demands are unceasing and unsparing. It not only redu- 
 ces the country to a state of exhaustion, but keeps it exhausted. It is the 
 vulture of Prometheus, which not satisfied with devouring the full grown 
 liver of his victim, watches the renascent organ, preying on each quivering 
 nerve that springs to light. 
 
 We know it is supposed that gold and silver, like every other commodi- 
 ty in the market, will be produced in proportion to the demand, and will, 
 therefore, find and keep their true relative value ; that if the demand for 
 them should increase, more labor would be immediately employed in ex- 
 tracting them from the earth ; that the capital employed in the production 
 of the precious metals, must only yield a profit fairly proportioned to other 
 employments of capital; that if ityields more, new amounts of capital would 
 be certainly diverted to this occupation ; that, therefore, an absolute scar- 
 city of these metals need not be apprehended ; nor even such a variation in 
 the supply as to affect materially their value, and in consequence, the pres- 
 ent relations of property. 
 
 Whilst we acknowledge the truth of these positions, we are obliged to 
 remark, that whenever we attempt to apply general principles to human ac- 
 tion we must necessarily allow for all those irregularities, to which the con- 
 duct and character of man are subject. Circumstances must and will for- 
 ever modify principles, in their particular application. Perhaps this re- 
 mark will be seldom better illustrated, than by the very subject we are now 
 discussing. If gold and silver were uniformly, however sparingly, diffused 
 over the surface of the earth ; if they could be found like irom, or lead, or 
 copper, in almost every territory of moderate extent ; capital could then be 
 applied to their production, exactly in proportion to the profit which that 
 capital would yield. The restraints which might be imposed in one country, 
 would be counteracted by the freedom of competition permitted in others, 
 and there could then be only slow or insensible changes in their value. Or 
 limited or confined as they are by nature, almost to one great range of 
 mountains, yet if those mountains were thrown open to enterprize as freely 
 as the forests of North America, capital would soon seek employment in 
 them, and would accumulate as long as it could be made productive. But 
 encircled as the mines of Mexico and Peru have been, by colonial and re- 
 ligious restrictions, they have hitherto been nearly inaccessible to labor or 
 
PRESIDENT AND DIRECTORS 369 
 
 to capital Desolated as they now are by insurrection and civil war, a long 
 period must elapse, before they can again be rendered productive. It is 
 probable that in the last eight years, there has been a deficiency in the pro- 
 duce of the mines of xVmerica. of at least two hundred millions of dollars, 
 while the consumption of gold and silver, and in consequence, the demand 
 for thcni, have been increasing with an accelerated velocity. Another age 
 may view the Andes trodden by the feet of freemeA, or ruled by liberal j, 
 and enlightened governments. Before another generation, silver may be 
 scattered with a profusion which will disqualify it for the purposes of money. 
 But we must examine and decide on our own wants, we must act for our 
 own age, and the race which surrounds us. When her present distractions 
 shall cease, Spanish America will not resemble a powerful and intelligent 
 nation, returning after moraentar}^ convulsions, to the habits and the arts of 
 peace. She will exhibit a devastated and depopulated country ; a naked 
 and desolate territory ; without resources to provide for her future welfare, 
 perhaps without a goverment to repair her past misfortunes. Is it wise to 
 enchain our pro-sperity to the contingenc'es whch may befall that ill-fated 
 country ; or to expect that commercial principles can counteract her moral 
 and political evils? 
 
 A third disadvantage, which attends the use of the precious metals as a 
 circulating currency, is the expense of such a currency. That portion of 
 the capital of a country, which is employed in facilitating the interchange 
 of commodities, adds nothing to the value of those commodities. It is an 
 unprofitable portion of its capital, devoted, however, to a necessary use. All 
 of the labor which has been expended in procuring that portion, may be 
 considered as having been diverted from a productive into an unproductive 
 channel. If a farmer should determine to have all his instruments of la- 
 bor, his ploughs, his harrows, his rakes, his spades, of silver ; it is easy to 
 perceive how great would be the waste of capital on such a project: Not 
 that these silver instruments would not answer. In certain soil and under 
 certain circumstances, they would perform their functions as well as iron, 
 but they dould perform them no better. They might, it is true, in times of 
 trouble, be hoarded or hidden, but to be hoarded or buried were not the 
 purposes for which they were made, neither were these the objects for 
 which a circulating currency was provided. 
 
 All of the capital, therefore, which was| employed in procuring these in- 
 struments, might have been better engaged in improving the tillage, fer- 
 tilizing the soil, or adding to the stock of the farm, or in any other mode in 
 which it could have been rendered productive. So it is with a metallic 
 currency. All of the labor which has been expended in procuring such a 
 currency, might have been employed in adding to the productive funds of 
 the country. 
 
 The fourth, and perhaps the greatest disadvantage, which attends the 
 precious metals as a circulating currency, arises from the perpetual fluctua- 
 tion which takes place in theii- own intrinsic value. It is singular, that 
 while it is universally known and acknowledged, that gold and silver vary 
 greatly in their value at distant periods, it should be supposed that at short 
 intervals this variation does not exist, or is too inconsiderable to merit 
 notice. This, however, is one of the errors which has arisen from our own 
 habits and opinions. It is, therefore, more diflScult to be discovered and 
 eradicated. We have in truth, been so accustomed to a metallic currency, 
 that to its irregularities we have become insensible. Thus, while we per- 
 
 47 
 
370 ANNUAL REPORTS OV 
 
 ceive au incessant fluctuation in the prices of all things around us we 
 habitually suppose that the changes are always in the value of those ob- 
 jects themselves; we never suspect the scale by which we measure them • 
 like the passenger looking out of the cabin window of a vessel in a gentle 
 motion, to whom every thing appears to move except the vessel in which he 
 stands, while yet the only object which appears to him stationary, is per- 
 haps the only one which moves. The great difficulty is to disengage specie 
 even for a moment, from its functions as money ; every step afterwards 
 would be easy and apparent. In Great Britain, where alone in modern 
 days, gold and silver have for a short time been left freely to find their val- 
 ue in an unshackled market, they have been known to fluctuate in value 
 nearly 50 per cent, in the course of a few months ; a fluctuation which no 
 paper currency has ever undergone, excepting such as has been issued by 
 the mandates of an arbitrary or necessitous government, where no value has 
 been received for it on its emission, no pledge given or secured for its re- 
 demption. 
 
 We know that this fluctuation has by some been considered as a fluctu- 
 ation in the value of the paper currency of Great Britain. It was, however, 
 too rapid to have arisen from the depreciation or appreciation of paper, without 
 producing more violent effects than were felt in Great Britain. Neither did it 
 produce a corresponding rise and fall in the value of other articles. While oh 
 the other hand, circumstances existed to produce 'an immediate action , on 
 gold and silver, sufficient to account, on the true principles of commerce, for 
 the depression and subsequent rise in their value. After the first occupa- 
 tion of Paris by the Allied Powers, when the peace of the world was nearly 
 restored, and the commerce of all nations again opened to Great Britain : 
 when her exportation of bullion to the continent. of Europe, for military or 
 political purposes consequently ceased, her markets for a short time were 
 overstocked with gold and silver, and they actually fell below their stand- 
 ard value. They could have been purchased at 10 or 12 per cent, below 
 their value as coin. But on the return of Buonaparte from Elba, when it 
 became evident that the British government would be compelled to make 
 great remittances to the continent in specie, bullion immediately rose, and 
 was soon 30 or 40 per cent, above, its standard price. It rose and fell ac- 
 cording to its scarcity or abundance, compared with the demand. It rose 
 and fell on the same principles and from the same causes which would have 
 determined the rise or fall of flour, or rice, or military stores. It was a 
 real fluctuation, a true mercantile action on the value of gold and silver. 
 
 Gold and silver, from local circumstances, owe their value not so much to 
 the labor necessary to procure them, as to their scarcity. That value 
 therefore, must perpetually fluctuate, either as new mines are discovered, 
 rendering them more abundant ; or as old ones may be exhausted, render- 
 ing them more scarce ; or as the increasing wealth and expenditure of soci- 
 ety, acting on an uniform average produce, consume annually a greater 
 portion. To fix therefore on gold and silver as a standard, -when their val- 
 ue has no absolute relation to labor, is to adopt a principle full of uncer- 
 tainty, and to depart from one that is durable and unerring. Even while 
 these causes are constantly, we might almost say hourly affecting their val- 
 ue, it is evident that ever since the discovery of America, until within a 
 few years, these metals have been gradually, though irregularly deprecia- 
 ting. It is well known that in Europe, wherever permanent rents have 
 been reserved on property alienated some centuries ago, if those rents have 
 been made payable in money, even gold or silver, they have now by the de- 
 
PRESIDENT AND DIRECTORS. 
 
 371^ 
 
 preciation of those metals, become comparatively insignificant ; but when- 
 ever they have been reserved in grain, or in any of the immediate products 
 of labor, they have retained to the present hour, their full value. These 
 metals are among the elements of property, but they are not so essentially 
 property as grain or land, or labor itself. Why should all the pecuniary 
 arrangements of life be entangled in the labyrinth of their erratic move- 
 ments? Why to the mere conveniences which they afford, should the best 
 interests of society at any tinie be sacrified? 
 
 Of the fluctuations in the value of the precious metals, let us take one 
 other view ; let us examine their relations to each other. Before the dis- 
 covery of America had disturbed all of the ancient arrangements of money, 
 gold in Europe was from 10 to 11 times as valuable as silver ; that is to 
 say, 1 ounce of gold was supposed to be worth 10 or 11 ounces of silver. 
 Silch is said to be the value of gold in China at the present day ; while in 
 Japan, the proportion is only as 8 to 1. Since the discovery of America, 
 silvep has been obtained from the mines of this hemisphere, in such compar- 
 ative abundance, that in little more than a century, it had depreciated 35 
 to 50 per cent. About the middle of the seventeenth century, the standard, 
 which with little variation we now use, was generally adopted.* Gold was 
 computed to be worth nearly fifteen times as much as silver. Since that 
 period, th^ proportioned quantity of silver yielded by these mines, has in- 
 creased, w% has not the depreciation augmented? The total amount of 
 silver produced by the mines' of America, since its discovery, bears to that 
 of gold, the proportion of 46 to 1 . Why should the standard value have 
 continued for nearly 200 years, at about 15 for 1 ? If gold possesses such 
 real intrinsic value as has been ascribed to it, why has it not risen, regard- 
 less of the regulations of the Mint, in proportion to its scarcity? Even 
 allowing that there is and has been in manufactures, a greater consumption 
 of silver than of gold, can this consumption have kept so regular a pace 
 with the supply ; can the use, the. waste, and even the casual loss, have 
 been so invariably in the ratio of 3 to 1, as to account for the steady com- 
 parative value which these metals have maintained? May'we not more cor- 
 rectly ascribe to the regulations of the Mint, that influence which has giv- 
 en to gold its high and permanent value? Should these metals once cease 
 to be used as money, they would not only fluctuate generally and perpetu- 
 ally in their market-price, but perhaps no two durable substances, whatever, 
 would vary more' in their proportioned value. 
 
 *The following notices will show some of the variations of gold and silver : 
 1300! In France, under Philipthe Fair, the proportion > 
 
 was as i 
 
 1336, In Holland, '.'.'.','.-.'.'. 
 
 1388, In France, 
 
 1589 
 1601 
 1641 
 
 1650 
 
 In Holland, 
 
 Fixed by Clueen Elizabeth in England, 
 
 In Flanders, - 
 
 In France, 
 
 In Spain about 
 
 j.In Italy, and Spain, . . . . , ; 
 
 1690 At th*i Convention of Leipsic,- the German coins 
 
 I were adjusted at a fraction above, 
 
 I728.1n England, 
 
 1816 In the United Sates, nearly. 
 
 to to 1 
 
 10 50 to 1 
 
 10 75 to 1 
 
 11 60 to 1 
 22 
 
 14= tol 
 62 
 
 12 50 to 1 
 
 13 50 to I 
 
 14 tol 
 
 15 tol 
 
 15 to 1 
 
 15 21 to 1 
 
 23 
 15= tol 
 
 57 
 
 This appears to have 
 been a period of great 
 uncertainty in the va- 
 > lue of gold, because no 
 general regulation of 
 the money of Europe 
 J had then taken place^ 
 
372 ANNUAL REPORTS OF 
 
 It is, in truth, to tlieir employment as money, that gold and silver are 
 indebted for nearly all of the steadiness and uniformity of value, which 
 they actually possess. We endow them with certain powers ; we bostow 
 on them certain privileges ; we give them, by our decrees, a fixed and de- 
 finite value ; and then reason on our own decisions as on an unchanging 
 law of nature. 
 
 Before concluding this subject, permit us to make some general, though 
 miscellaneous observations. 
 
 We have stated fairly the inconveniences and disadvantages which at- 
 tend the use of these precious metals, as a circulating currency. We pro- 
 pose not, however, to banish them from common use as money, whenever 
 the situation of the world will allow them to be used without any other 
 difl&culty or objection, than that of their expense. We only deem it un- 
 reasonable, that under every inconvenience, all other substitutes for cur- 
 rency should, in their favor, be prescribed. We wish them to enter freely 
 into circulation, or to be withdrawn, exac^y in proportion to their scarcity 
 or abundance. We wish them to become visible or to disappear according 
 to the vicissitudes of commerce ; but let us not be compelled to follow their 
 mutations ; let us not be chained as victims to their chariot wheels. Is it 
 not cruel, is it not unwise, is it not almost ridiculous, that the fortune and 
 fate of individuals, that the property and prosperity of nations, tiat all the 
 relations and conditions of life, every public and private engagement, should 
 be grievously aficcted by the accidental discovery or failure of a vein of 
 silver in the mountains of Mexico and Peru ; that the business of the world 
 might in fact be disarranged, by the results of a petty civil war. carried on 
 in one or two obscure and remote provinces of a decaying empire ; or, sit- 
 uated as these treasures are, in the land of the earthquake and the volcano, 
 that a shock which should overwhelm the mines of Guanaxuato and Potosi, 
 should be felt in the most distant regions of the civilized world ? 
 
 We have supposed the case of a farmer who should resolve to use no im- 
 plements of husbandry, excepting such as were made of silver. What 
 should we think of the wisdom of such a man, if, finding himself unable to 
 accomplish his wishes, he were to determine that his fields should remain 
 unploughed, his laborers unemployed, his property unimproved, until he 
 could procure these costly instruments 7 Are we not pursuing this very 
 system, are we not even now deereeing that our lands shall remain untilled, 
 that our laborers shall be unemployed, that the manufactures of our coun- 
 try shall cease, that its commerce shall be suspended, that its prosperity 
 shall be blighted, that its resources shall continue dormant ; unless they 
 can be restored to activity, be animated and invigorated by a metallic cur- 
 rency? The slumbering genius of national industry, must only be awa- 
 kened by cymbals of silver or harps of gold. 
 
 We have represented the East India commerce as a vulture preying on 
 the vitals of our country ; but this will only be the case while we resolve 
 that gold and silver shall constitute those vitals ; that they shall form the 
 active principles of life. If these metals were disengaged from their em- 
 ployment as money; if. like other commodities, they could become a mere 
 article of commerce in the market, the East India trade would in many re- 
 spects be beneficial — in no one, injurious to the country. It is an admi- 
 rable nursery for seamen ; it encourages, and perhaps improves our ship- 
 builders ; it trains up a number of skilful and experienced commanders ; 
 and if it does not consume much of our surplus produce, it at least supplies 
 many of our wants, on better terms than we could otherwise indulge them 
 
PRESIDENT AND DIRECTORS, 373 
 
 But between our East India and our other commerce, there is at present 
 this essential difference: that when an European or West India merchant 
 wishes to make up a cargo, he is obliged to go into the market and pur- 
 chase cotton or rice, or flour, or tobacco, or lumber, at whatever prices the 
 markets abroad, and the competition at home, have established ; but when 
 the East India merchant wants his cargo, he claims the privilege of de- 
 manding from the Banks, specie at a fixed and determined price, without 
 any regard to its real value at home or abroad. Why should this be the 
 case ? Why should not gold and silver be permitted to find their fair and 
 real value in an open market 1 If an East India voyage will bear the pre- 
 mium of 5, or 7, or 10 per cent., which the merchant may have occasionally 
 to pay for specie, let him buy the specie, and prosecute the voyage. But if 
 this trade will not bear such a premium, why should it be encouraged ; 
 when from the very statement of the case, it will produce ho other profit 
 than that very premium, which the public who provides the specie, has paid 
 him for the enterprize 7 
 
 It seems to be greatly apprehended, that if the precious metals were 
 disused as a circulating currency, they would be w^ithdrawn from the mar- 
 kets, and might disappear altogether.. This, however, will not happen. — 
 Gold and silver, if reduced to merchandize, will, if wanted, always be fur- 
 nished as certainly as broad-cloth or wine, or any other article of luxury or 
 necessity. Those who require them for the purposes of foreign commerce, 
 and those who seek for them to bury or accumulate, will readily obtain 
 them at their fair commercial value. They ma}^ then facilitate, and they 
 would no longer embarrass, the interchange of nations. 
 
 We have stated, that in the last eight years, the deficiency in the produce 
 of the mines of America, has exceeded 200,000,000 of dollars ; we think 
 this amount by no means overrated. When Baron Humboldt published 
 his views of New Spain, after having -visited that country, and after he had 
 obtained in Europe, prior to his publi<jation, all the information which on 
 this subject could be procured, he presented the following estimate of the 
 annual produce of those mines : 
 
 Annual average produce of the gold and silver mines of 
 America, about the year 1803 $43,500,000 
 
 Of this sum, Mexico yielded >«..- _. $23,000,000 
 
 According to a late statement which appears to be official, the annual 
 average produce of the mines of Mexico for the last eight years, ending on 
 the 31st of December, 1818, has been $8,100,000 ; making an annual de- 
 ficiency of $14,900,000, which in eight years would amount to $1 19,200,000 
 from Mexico alone. 
 
 The Spanish provinces of South America were estimated 
 by Humboldt, to produce annually the following amounts : 
 
 Peru-- __ _ $6,240 000 
 
 Chili .._._ 2,060000 
 
 Buenos Ayres 4,850.000 
 
 New Grenada 2,990,000 
 
 $16,140^000 
 
374 
 
 ANNUAL REPORTS OF 
 
 86,080.000 
 
 Now we know that Chili, Buenos Ay res and New Gve- 
 nada have been more convulsed than Mexico, and that Pe- 
 ru has not been tranquil. In some of these provinces, the 
 works in the mines have been totally suspended ; in all they 
 have been seriously interrupted. If, then, we estimate the 
 deficiency at two-thirds, which the statements from Mexi- 
 co willfully justify, it will give an annual deficiency from 
 
 these provinces of ^10,760,000 ; in eight j^ears, 
 
 $205,280,000 
 
 And it must also be remembered, that the war in Spanish America has 
 been frequently, and we fear on both sides, a war of extermination. That 
 as in our revolution, every man has been obliged to bear. arms, and mingle 
 in the conflict. The laborers in the mines; the superintendents and refi- 
 ners of the ore, and the proprietors themselves, have been equally engaged 
 and have equally sufi"ered. The naines, too, have been in some places laid 
 waste, the implements and machinery necessary for their works have been 
 destroyed, and many, by neglect, have been sufi"ered to fill with water. — 
 The injury has not been accidental and momentary. The care of a parent- 
 al government, and' capital, and after all, time, will be .necessary to repair 
 their misfortunes. 
 
 Let us now trace in its dispersion, the gold and silver which are annu- 
 ally produced, and examine how far the supply will, replace^he annual con- 
 sumption and waste. The amount now produced by Spanish America, we 
 have supposed to be : 
 
 From Mexico $8,100,000 
 
 From South America. - _ 5,380,000 
 
 Brazil, (estimated in 1 803, at $4,360,00,) now probably yields. . 5,000,000 
 Europe, and the North of Asia furnish . 4,500,000 
 
 Amounting to.. -_.. z $22,980,000 
 
 The silver which was annually sent to Asia about the com- 
 mencement of the present century, was estimated by Humboldt 
 as follows: 
 
 By the Levant $4,000,000-] 
 
 By the North of Asia, through Kiachta ) 4 ooo,o6o U25,500,000 
 
 and Tobolski-:. ) 1 
 
 By the Cape of Good Hope..--- 17,500,000 J 
 
 It is certain that the trade of the Levant must have great- ' 
 ly increased, since Europe has been restored to peace. With- 
 out, however, noticing the probable addition to this com- 
 merce, or that of Russia through Siberia, we shall make ^ I oto 500 000 
 very moderate estimate, if we allow for the extension of the ' ' ' 
 trade of the United States since 1803, and for the reviving 
 trade of Holland, France, and Germany, by the Cape of 
 
 Good Hope, the sum of 
 
 Total by the East India trade, $28,000,000 
 
 The annual waste in Europe and America in articles oV 
 jewelry, plate, lace, embroidery, gilding, plating, &c., it is 
 more difficult to determine. Humboldt supposes that in 
 1810, it amounted to $24,000,000. If from this sum we )» $20,000,000 
 deduct $4,000,000 as the probable amount of old plate sold 
 or sent to be re-cast, it will leave an anjanal consumption 
 of _ . 
 
PRlilSlDENT AND DIRECTORS. 375 
 
 Annual consumption-. $48,000^000 
 
 Annual supply.. _ - .'. 22,980,000 
 
 $25,020,000 
 
 Leaving an annual deficiency of $25,000,000, wliich must be taken from 
 the old stock of money existing in Europe. And if Great }3rifcain, Russia, 
 Adstria, and the United States, who at present all use paper, should deter- 
 mine to have a metallic currency, more than $300,000,000 will be required 
 for this purpose. 
 
 We have enumerated some of the inconveniencies of a metallic curren- 
 cy, and portrayed some of the difficulties which will attend the effort to 
 create in our country a specie circulation. We say create, because it would 
 be incorrect to speak of restoring that which we never possessed.. In the 
 interval between 1787 and 1790, we may place the only approach, whicli 
 was probably ever.made in the United States, to a real specie currency, and 
 no one who can remember distinctly the situation of the country at that 
 time, will sigh for the blessings we then enjoyed. To procure for us now 
 a metallic currency sufficient for the necessary uses and commercial de- 
 mands of the country, it will be requisite. that the whole exported produce 
 of the United States for three years, shall be applied exclusively to this ob- 
 ject. France, in the reign of Louis XIV, possessed a circulating currency 
 of 1,20.0,000,000 of livres ($225,000,000 ;) in 1805, under the Emperor Na- 
 poleon, that currency amounted to 2,550,000,000 of livres, ($485,000,000.) 
 JSfow France, although much more populous, is less commercial than the 
 United States ; and with us, space, in some measure, compensates for our 
 yet scanty population. It is obvious, that one hundred thousand persons 
 collected in a city, can transact their business, and meet every pecuniary 
 exigency, with a much smaller sum of money than the same number will 
 require, if scattered over an extensive surface. The United States, with a 
 population of 10,000,000 of inhabitants, diffused over an area of 1,200,000 
 square miles, a population rapidly increasing and daily dispersing, will need 
 one-third, we may safely say one half, as much money for its circulation as 
 France with 28,000,000 of people, condensed in a space which scarcely ex- 
 ceeds 160,000 square miles. These circumstances certainly demand atten- 
 tive consideration, and the expediency and practicability of establishing in 
 the United States a metallic currency, should be duly weighed, before the 
 project is incautiously adopted or rigidly enforced. 
 
 On considering bills of credit, or Bank bills, as a circulating currency, it 
 is immediately obvious that they fulfil the first condition we require in 
 money ; their own intrinsic value is not liable to change. The small ex- 
 pense of the material, and even of the workmanship, may be considered as 
 nothing, when compared to their final .value and their use, and there is no 
 danger that these sources of expense will oyer increase, These bills, too, 
 have but one function to perform : they have only to measure and exchange 
 the property of a country ; they will neither be withdrawn from circulation 
 for avarice to hoard, nor can caprice or fashion divert them to another ob- 
 ject. 
 
 The second condition required of a circulating currency, that it should 
 bear an unvarying proportion to the wealth of the community, is far more 
 important, and can only bo obtained with a currency which a government 
 can regulate at pleasure. Paper alone affords this facility, and p(^sesses. 
 
37G ANNUAL REPORTS OF 
 
 in this view, peculiar advantages. The great object of a currency should 
 be to preserve the value of labor and property as uniform as possible ; 
 to give to them all the steadiness which objects appertaining to men can 
 acquire ; to make calculations for the future, as probable, if not as certain 
 as for the pi'eseut. To prevent those incessant fluctuations, which, arising 
 from unforeseen changes m the quantity and cpnsequent value of money, 
 in the market, cause all Gxchanges of property to become mere blind 
 speculations ; reduce all transactions to games of chance ; and render the 
 calculations and foresight of the prudent at times equally unavailing. It 
 may perhaps be desirable that there should be that constant and gradual 
 depreciation of money, which, only perceptible at long intervals, at thirty, 
 fifty or an hundred years, may yet be operating perpetually and beneficial- 
 ly on the industry of mankind. But this is very different from that state, 
 when the currency of the country is incessantly ebbing or flowing, when 
 it can be exhausted in years of adversity, accumulated in times of pros- 
 perity, and be, however, incapable of maintaining that equable circulation, 
 that tranquil level, which the essential interests of society require. 
 
 We have, however, no hesitation in avowing the opinion that a paper 
 currency, to answer sufficiently the purposes of soiciety, should be issued 
 exclusively by the government of that society. We believe that in no 
 other manner security can be given on those points which are essential to 
 its stability. There is, in the first place, no other mode by which its 
 amount can be accurately regulated and limited — no other mode by which 
 it can be made to bear a definite proportion to the wants of society. It is 
 among the known and avowed inconveniencies of private Banks that their 
 paper is issued or withdrawn, entirely from private considerations. Their 
 Directors are scarcely at liberty to take into view public feelings and in- 
 terests. Hence it frequently happens that in prosperous seasons, when 
 the crops are -abundant, when commerce flourishes, when industry is ex- 
 cited and confidence high and undisturbed, great issues of paper are made 
 by the Banks, and mone}^ is thrown liberally into a circulation already 
 overflowing. But whenever this prospect is reversed — when commerce 
 has been disastrous and the embarrassments of a community begin to 
 multiply, money is no longer issued, all that can be collected is with- 
 drawn from circulation, and the evils of an appreciating currency are added 
 to bad seasons, to unfortunate shipments or unsuccessful speculations. — 
 The distresses of the country are increased by the measures which the 
 Banks deem necessary for their own welfare. They become, themselves, 
 oppressive to the community, at the very moment when they ought to 
 afford relief. But a national currency could be regulated on better prin- 
 ciples : it might be placed above the influence of temporary difficulties — it 
 might be made to expand when it was wanted, to contract when it is too 
 abundant, and to be stable amidst all the vicissitudes of individual wealth. 
 
 In the second place, there is no other inode by which a proper security 
 can be taken for the final redemption of such a currency. We deem it 
 essential to its circulation, that the people should know that not a bill 
 has been issued, without an adequate fund having been pledged for its 
 repayment ; and that although each particular bill may not have a lien on 
 a specific piece of property, yet the whole amount has been amply secured. 
 Such a paper will contain within itself a regulating principle, which will pre- 
 serve and perpetuate its value. Before any unreasonable sum can be thrown 
 into circulation, so great a mass of property will be encumbered by its 
 
 1! 
 
PRESIDENT AND DIRECTORS. 377 
 
 issue, that there will probably be as many persons anxious to relieve their 
 possessions, as to contract new debts. There will, at all events, be many, 
 able and willing to remove, under favorable circumstances, the incum- 
 brances from their own property. If then this paper should at any time 
 depreciate, even three, four, or five per cent, there will be many persons 
 ready to avail themselves of this advantage, and secure this premium. If 
 it depreciates more, this result will inevitably take place. Great repay- 
 ments will be made. And as no person will be desirous of borrowing a/ 
 depreciated currency — as in fact no new loans ought to be made at such 
 periods — every debt discharged will diminish the quantity of paper afloat, 
 until its scarcity will again raise it to its proper value. This action and 
 re-action will be perpetual, fpr they are the result of the strongest im- 
 pulses of self-interest. It will be only necessary to determine that no new 
 loans should be granted — no new issues made — while there exists any ten- 
 dency in the paper to depreciate, and it wiU readily find and maintain its 
 proper level. 
 
 A paper money whose basis is firmly fixed on the real property of a 
 country will probably furnish the best currency a nation can possess. The 
 one least liable to fluctuation, most permanent in its valud, and bearing 
 the most steady relation to labor, and consequently to property. This 
 connection is intimate and almost inseparable. The earth, it is true, is 
 the immediate donation of heaven, not the result of human labor. Yet to 
 the labor of man it is indebted for its improvements, and frequently for 
 its value. It does not, we acknowledge, increase in value in proportion to 
 the labor bestowed upon it, and therefore cannot directly represent that 
 labor. But it is found steadily to increase in value with the general im- 
 provement of society, and frequently to mark, by the rise of its prices, the 
 progress of wealth and national prosperity. The price of land is -an , 
 index which may be used in reviewing the history of the wealth of nations, 
 and great confidence may be reposed in its authority. The real property 
 of a nation forms the only foundation for a national currency, which can 
 neither be removed nor destroyed. As long as the property of a nation 
 bears any value, its land must bear its full proportion of that value, ; as 
 long as there remains^any wealth in a community to be represented, money 
 founded on such a basis, will repfresent that wealth ; and whenever its 
 wealth has departed, whenever that evil hour arrives, when the r§al prop- 
 erty of a country has ceased to possess any value, it will be perfectly im- 
 material what has been its circulating currency. This will be but a fact 
 for history to record. 
 
 But the cry of death has been raised against a paper currefncy — a war 
 of extermination is excited against a symbolical money. It is said that 
 paper is but rags, that it possesses no real and intrinsic value, and that 
 therefore it is incapable of forming a sound currency. May we not reply 
 that promissory notes, bills of exchange, bonds and mortgages, are but 
 paper — according to this doctrine, only rags. Wo be to him, however, 
 who, possessing property, should put his hand to such instruments, and 
 suppose them to have no efficacy. This clamor, too, has been raised by 
 many- who probably for the last twenty years have used nothing but paper; 
 and who, perhaps, have never in that time felt one moment's embarrassment 
 from the composition of the money they were constantly employing. Yet 
 to these persons we would most seriously reply, that money in its original 
 intent and purpose, was not intended to be property itself, but a standard 
 
 48 
 
378 ANNUAL REPORTS OF 
 
 which, by general consent, should measure, and represent, and facilitate 
 the exchange of property. If then with this very paper, which is so much' 
 traduced, we can go to the butcher and baker, and procure bread and meat 
 — if we can go to the tailor, the shoemaker, the hatter, and obtain clothes 
 — if we can go to the auction table and purchase horses, or furniture, or 
 houses or land — if we can go to the broker and procure public securities 
 and stock of all descriptions, (paper by the bye themselves) — if we can go 
 to the importing merchant and buy goods, or bills of exchange on foreign 
 countries, or even specie itself — if, in short, with this paper we can pay 
 taxes, or debts, and procure every article of necessity and comfort, without 
 difficulty, without delay, without even an inquiry, as to the nature of the 
 mediuni to be given in payment, what more has money to perform? This 
 paper, it is true, cannot be hoarded, neither can it be buried ; but to those 
 who have this propensity, we would say^ buy in the market those articles 
 that can be hoarded, buy diamonds, buy plate, buy gold and silver in coin 
 or in bullion — this very paper will purchase them all ; bury them in the 
 bosom of the earth and sleep in peace. It is indeed an advantage in pa- 
 per, that it cannot be hoarded. If, while using such a currency, there 
 should be persons who, mistrustful of the present and fearful Of the future, 
 become anxious to collect and amass property that can be readily conceal- 
 ed and easily transported, they, at the worst, only accumulate an unpro- 
 ductive stock : they do no more nor worse than those who lay up wine, or 
 purchase costly furniture ; they only withdraw so much from their own 
 productive capital. But When the currency of a country is itself hoarded, 
 society at large suffers ; because it is obliged to purchase and replace that 
 portion of its money which the timid or saspicious have subtracted from 
 circulation. 
 
 But it is still apprehended that paper must depreciate. Some even sup- 
 pose that this depreciation cannot or may not be detected, until some se- 
 rious, perhaps irremediable injury is inflicted on a community. We have 
 already stated our reason for believing that a paper currency, prudently 
 issued and cautiously limited, will either not depreciate, or will at least 
 contain within itself a preserving principle. Money must absolutely exist 
 in every civilized country. A certain portion is, in fact, so necessary, that 
 it would have currency even if .issued on the worst principles, and com- 
 posed of the vilest materials that can be imagined. If wisely constructed 
 and established, why then should we apprehend danger ? 
 
 There are, besides, tests, by which the slightest depreciation of paper can 
 at any time be detected. The value of money is known, not by referring 
 it to any standard we. have ourselves created, but by comparing it with the 
 current money of other nations. We know, for instance, at the present 
 moment, and may know whenever we establish a national currency, what 
 relation or proportion our unit bears to that - of other nations. What our 
 dollar bears to the pound sterling of Great Britain, the livre of France, 
 the mill rea of Portugal, or the standard money of any other country. — 
 While these proportions continue uniform, no change can have taken place. 
 But whenever we find these relations broken, if no alteration has taken 
 place in the money of other countries, we mayjustly suspect some variation 
 -in our own. The reality and extent of this change, can also easily be 
 tnown. The rate of exchange between our country ^nd foreign nations 
 will show it. The prices of our great staple commodities, will make it still 
 more clearly manifest. Whenever, in our markets, the prices of cotton, rice, 
 
PRESIDENT AND DIRECTORS. 379 
 
 or flour, preserve the proportions they now bear to the prices in the Euro- 
 pean markets, making merely an allowance for the expense and risk of 
 transportation, with a very moderate addition for the profit of the expor- 
 ter, we may be assured^ that our money also maintains its relative value. 
 But whenever the prices here shall exceed, according to the standard we 
 may use, the prices abroad ; whenever sixty, eighty or an hundred dollars 
 are given in our markets for that which will bring but fifty in the foreign 
 markets ; we may then conclude, that allowance has been made for a de- 
 preciated currency. We have already demonstrated that no such deprecia- 
 tion has yet taken place ; the same principles will test the subject on all 
 future occasions. 
 
 It may, however, be necessary distinctly to state, that it is not with gold 
 and silver alone, that this comparison ought to be made. They may be 
 used equally with other property, as objects of reference, but they ought 
 not to be considered as the exclusive objects. A currency may continue 
 sound and unaltered, it may bear an uniform relation to labor, to real estate, 
 to public securities, to provisions, to all the objects of life that are im- 
 portant as property : and yet may have varied greatly with regard to the 
 precious metals ; simply because those metals may have undergone grejit 
 alterations in their own intrinsic value. 
 
 Another evil imputed to a paper currency is its liability to abuse. It is 
 apprehended that from the facility with which it can be created, no limit 
 will be placed to i|is amount 5 that the community would soon be over- 
 whelmed, that the value of property would be destroyed, by immoderate is- 
 sues of a depreciated paper. To this we can only reply, that if this cur- 
 rency were exclusively subjected to national regulation, we should be per- 
 fectly willing to trust it to the sound discretion of our government ; to that 
 sound discretion, to which we. constantly submit our lives, our liberty, and 
 in so many other modes, our property itself We believe, that if it were 
 once to be established, as a principle of national economy, that such a -cur- 
 rency should in no case be issued, unless on ample security pledged for its 
 repayment, the government would no more be induced to depart .rashly 
 from such a principle, than to issue metallic money of a debased and de- 
 preciated standard. The power in both cases would equally exist; the- 
 temptation in both cases would be equally strong ; and we know of no ne- 
 cessity that could palliate or justify the one enormity, which might not be 
 pleaded for the other with equal effect. 
 
 As it has been made an objection to a paper currency, that it is liable to 
 be forged, it may be necessary on this point, to make one additional observa- 
 tion : We have already remarked, that it is much more easy to counter- 
 feit metallic coin, than to forge Bank bills. We will not only add, that 
 we believe the improvements, which can and will be made, in the fabrica- 
 tion of these bills, will soon render forgery too difficult or too expensive to 
 be practised with success. We know the mildness of the punishment for 
 this crime in some of our sister States, has greatly multiplied these offences; 
 but we feel confident, that even at the present monient, any man capable 
 of forging such bills as are now in use, could readily make a fortune, not 
 only without risk, but with reputation and honor, by his profession as an 
 engraver. And can we think the perversity of human nature so great, as 
 to induce any one to prefer danger, disgrace and death, to certain and well- 
 merited fortune? ' . ' 
 
 We have only examined ihis great question hitherto on abstract prill' 
 ciples, but one national consideration yet remaiiis of paramount^ inaportance. 
 
380 ANNUAL REPORTS OF 
 
 We believe, that "by years of suffering, of impoverishment, of ruin, a metallic 
 currency may be established in the United States, but we firmly believe, 
 that when accomplished, it can only prove a temporary system. We ac- 
 knowledge that during the continuance of peace it may be maintained, but 
 we are firmly convinced, that on the first onset of war, it must be abandon- 
 ed. If that war should be with a nation possessing maratime power, we 
 should immediately find the sources which supply us with specie, dimin- 
 ished or intercepted ; while the causes of exhaustion were extended and 
 multiplied. We should soon find all the relations of property disregard- 
 ed ; all the pursuits of labor embarrassed ; we should feel the influence of 
 war, in every situation and occupation ; and we might haye a dissatisfied, 
 because an impovished population. Even then, we should be unable to 
 contend advantageously with any nation who may know how to use a paper 
 system, with dexterity and vigor. It is not merely loans that we mean ; 
 where there is little or no money, even loans cannot be obtained. It is the 
 creation of a good currency which will command the resources of the 
 country, which will prevent the operations of government from being sus- 
 pended or weakened on all occasions, by the want of money. It is in vain 
 to turn aside from the importance of these views. It is idle to speak .of 
 the evil of heaping up embarrassments for a future hour, or on a future 
 generation; of the folly or wickedness of these modes of anticipation. 
 The efficacy of this system is well known. There are no other .means by 
 which so much power can be accumulated in the present moment — by which 
 the energy of ages can be concentrated in the passing hour. This system 
 will be used whenever convenience requires or necessity demands. It will 
 be used whenever it becomes essential to the welfare, the safety, or even the 
 glory of a country. It will be used by all governments that can command 
 confidence at home or abroad. Is it then wise in peace studiously to dis- 
 credit that, which in war may be essential to our safety? Shall we now 
 tell our citizens that paper is but rags ; that a paper system cannot be ren- 
 dered worthy of confidence ; and in the day of danger assure them it is on 
 paper they must rely, that their welfare, therr honor, their national exist- 
 ence, may depend upon it? Will this tend to diminish the distractions of 
 such an hour ; will it tend to unite the actions and councils of our country- 
 men? And if at such a period, feuds and jealousies and local dissentions 
 should prevail, will this serve to harmonize all discord, to suppress or ex- 
 tinguish all party feelings? Surely it would be a measure, about which the 
 rancorous and exasperated spirits of the times, would contend with aggra- 
 vated fury. It would indeed be better to improve the calm we now enjoy, 
 and construct and establish a national currency, on the best foundation ; 
 our citizens will then in peace become accustomed to its operations, famil- 
 iar with its use, and acquainted with its principles. In danger we should 
 possess a currency which commerce could not withdraw, nor fear diminish. 
 The internal transactions of our country would experience no interruption ; 
 war itself would only be felt in its battles or its conquests ; and the fiscal 
 resources of the government, and the business and pecuniary intercourse of 
 our citizens, would be managed with all that ease and regularity, which re- 
 sults from habits of long and well established confidence. 
 
 We have spoken of paper in what appears to us its best form, a national 
 currency emenating from the government, but still secured by private cred- 
 it, and individual responsiblity. It may be now proper to show, that even 
 in that shape in which it has hitherto existed in this country, it has been free 
 from many of the evils which have been imputed to it. 
 
PRESIDENT AND DIRECTOES. 381 
 
 Banks ha\^ been, and perhaps will continue to be, found the most con- 
 venient instruments that can be employed for circulating a paper currency, 
 and for procuring to it confidence and credit. They possess or create so 
 many conveniences ; they transact so much and such a variety of business; 
 they adjust in a measure the accounts of so many individuals ; that what- 
 ever money they receive freely, they will generally in a short time be able 
 to pay away with equal facility. 
 
 So much has been said lately about Banks, by persons who were appa- 
 rently but little acquainted with their principles : such wrong impressions, 
 on some points connected with these institutions, appear to have been made 
 on the public mind, that it seems necessary to recur, however briefly, to 
 their original construction, and trace the operations of a Bank from its first 
 formation. 
 
 Let us then suppose that a Bank has been established, no matter from 
 what source, whether with public or private wealth, with a capital of $100,- 
 000, with permission to issae notes to double the amount of its capital ; and 
 that this capital has all been paid in, in the current money of the country. 
 It will now be prepared to commence business. If this current money has 
 been the bills of other Banks, it will demand from them as much specie as 
 may be deemed necessary to support the credit of its own paper ; if specie, 
 it will retain as much as will answer the same purpose, and will loan out 
 the remainder. It has rarely been considered expedient or useful to re- 
 tain more tban one-third or one-fourth of the capital of a Bank in specie, 
 as it would be generally an idle accumulation of productive funds. Let us, 
 howevel*, suppose in the present instance, that one-half has been reserved, 
 for the current and contingent uses of the institution, and that the other 
 half, and all of the bills it was authorized to issue, have been thrown, into 
 circulation, for such promissoiy notes, or bills of exchange, as a Bank is ac- 
 customed to discount. The general result will then be as follows: 
 
 The Bank will possess in specie,. _ i. __ ^ , -$50,000 
 
 And in notes which it has discounted, $250,000 
 
 On the other >hand, it will hav« issued in its own bills, $200,000 
 
 On this shoj't and simple statement, permit us to make the following ob- 
 servations : 
 
 1st. It is scarcely necessary to remark, that the whole of the paper of the 
 Bank has been issued for promissory notes, secured by the deposit of val- 
 uable property, or by names supposed to be solvent, and able to pay when- 
 ever they shall be required. Perhaps no bill of this whole amount has 
 been issued for specie. When, therefore. Banks are required or expected 
 to have specie for the total amount of their bills, it is, perhaps, never recol- 
 lected, that notes and not specie were received for them. And, therefore, 
 it is, in the first instance, no mark of fraud or insolvency, if they have not 
 at all times specie to redeem them. 
 
 2d. The specie which a Bank acquires in a regular course of business, 
 over and above the stock it originally reserved, is generally received from 
 the deposits of its customers, or in payment of its discounted notes. . When 
 the circulation of a country is in specie, these sources furnish an abundant 
 supply. The streams that flow out are fed by fountains of equal capacity. 
 And if an extraordinary demand should occur, the Directors, by declining 
 to do new business for a short time, while they are constantly receiving 
 payments upon what they have already done, 9an without difiiculty provide 
 for such an emergency. When the circulating currency of a country is not 
 specie, the case is widely different. The supply is no longer equ^ to the 
 
382 ANNUAL REPORTS OF 
 
 demand. The payments made are neither wholly nor in part in specie. 
 The Directors of a Bank are compelled to use great vigilance ; to pay out 
 as little specie as possible ; to purchase bullion on all favorable occasions ; 
 and to guard with prudence and fidelity the credit of the institution. But 
 when an extreme case occurs, when in addition to a paper circulation, the 
 specie of a country is constantly and specifically "demanded, for foreign com- 
 niierce ; when the sums drawn from the Banks are not thrown again in cir- 
 culation, but immediately exported ; we believe no exertions can maintain, 
 under such circumstances, the system of specie payments. It will be found, 
 as it has been pronounced, an absurdity to require specie payments from 
 the Banks, with a paper currency throughout the country. The country 
 must return, whatever may be the cost, to a specie circulation, or the 
 Banks must be permitted to issue paper not payable on demand, in gold or 
 silver. , - • 
 
 3d. The real solvency of a Bank depends, not upon the amount of specie 
 it may at any time possess, but upon the nature and validity of the security 
 pledged to the Bank, upon the responsibility of the individuals indebted 
 to it. It is, therefore, by examining the nature of the business a Bank has 
 transacted ; by scrutinizing the situation of the persons with whom it is " 
 connected ; that a true estimate is to be formed of its prosperity. In the 
 statement we have made, it will be perceived, tha^ to redeem $200,000 of its 
 paper, the Bank possesses $50,000 in specie, and $250,000 in discounted 
 notes ; now the drawers and endorsers of more than $100,000, that is of 
 more than two-fifths of the whole amount, must prove insolvent, before 
 thero can be a deficiency of funds to redeem this paper. This can never 
 happen but in cases of such manifest fraud, as would become. immediately 
 known to the whole community. In well managed Banks, a sum is always 
 reserved out of the annual profits, suflicient to cover all the known bad 
 debts of the year ; and if a season has been peculiarly disastrous, (and no 
 prudence can always guard against the vicissitudes of commerce,) if the 
 losses have been very great, the dividejid on the stock of the institution is 
 diminished, or entirely withheld, to repair and replace those losses. In this 
 manner the solvency of a Bank, honestly administered, is^ecured almost 
 beyond the reach of casualty ; and its embarrassments are only those tem- 
 porary obstructions which arise from the difficulty of collecting its debts at 
 particular seasons, or under peculiar circumstances. If, in the case we 
 have represented, the Bank should have issued bills only to the amount of 
 its capital, or $100,000, its position would be still stronger. It would then 
 possess $50,000 in specie, and $150,000 in discounted notes, to pay $100,- 
 000 in its own paper. Two-thirds of its discounted notes must then prove 
 bad, before it can cease to have funds to redeem its own bills. So far then 
 as the public, who give currency to the bills of such a Bank, is concerned, 
 the security is abundantly ample ; and if due care has been taken to make 
 provision annually for suc.i notes as have proven, or are likely to prove un- 
 sound, the proprietors may reasonably expect to receive, besides their an- 
 nual profit, the whole amount of their capital, whenever circumstances may 
 lead to a dissolution of the institution. 
 
 4th. We may now perceive how idle is much of the clamor which has 
 been lately excited against Banks. In many cases, the debts due to a Bank, 
 the notes which it has discounted, and for which its paper has been actu- 
 ally issued, have been considered in the estimate made of the situation of 
 .a Bank, as of no importance One would suppose fro^m some views fcafeeo 
 
PRESIDENT AND BTKEOTORS ' 383 
 
 of the subject, that the property of the country had ceased to bear any 
 value, that every man was in a state of insolvency. We believe tli^t if 
 causes should sucfdenly occur, to produce what is called a run upon Banks, 
 that is, if all the paper issued by a Bank, should be brought back to it, and 
 payment unexpectedly and immediately demanded, no institution doing 
 business actively, has ever been prepared to meet such ^a pressure. Banks, 
 like individuals, make their calculations upon the ordinary occurrences of 
 life, and do not feel themselves obliged to be prepared at all times to meet ^ 
 those events, which may never happen. They make generally liberal pro- 
 vision for the contingencies that are probable, and beyond them calculate 
 that they shall always be able to collect their debts as rapidly as circupi- 
 stances may require. Extraordinary events may baffle th^ir expectations, 
 because it will commonly happen, that the same causes which produce great 
 and general pressure on the Banks, create an equal pressur-e on the indi- 
 viduals who are indebted to them. Embarrassments of this kind arei very 
 far, and very different, from a state of insolvency. 
 
 5th. However paradoxical at the present hour it may appear, we feel dis- 
 posed to assert, that the benefit which the community receives from a Bank, 
 is exactly in proportion to the amount of paper it can issue, over and abova 
 the amount of specie it retains in its vaults. If .i Bank, possessing $100,- 
 000 in specie, should issue but $100,000 in paper ; if it is obliged to keep 
 a specie dollar in its vaults, for ever paper dollar it sends abroad, it adds 
 nothing to the circulating currency. It would indeed be better for the 
 proprietors to divide their capital, and loan it out themselves, without the 
 expense of management. But if a Bank with a capital of $100,000 can 
 circulate, with safety and prudence, 2 or 300,000' dollars in paper, it then 
 creates a capital, which may be actively and profitably employed. We say 
 with safety, that is, if it can be issued on perfectly good security ; and 
 with prudence, that is, if it can be made to obtain general currency. This 
 latter point, experience can only determine. If sucl^ paper can be made 
 to circulate, and acquire general confidence, the* institution becomes pros- 
 perous ; and its profits arc proportionally enhanced. If this confidence 
 cannot be obtained, if its bills return rapidly on the Bank, it is obliged to 
 curtail its business, to call in its debts, until only such portion of its paper 
 remains afloat, as is really absorbed in the general circulation of the 
 country; and just according to the excess of this portion, over the specie 
 it retains in its vaults, is the general utility of the institution. 
 
 Let it not be supposed, however, that we imagine Banks may not have 
 been unnecessarily created ; that particular institutions may not have issued 
 too much paper ; or- that all of them may not incautiously have discounted 
 notes on insufficient security. We believe the two former cases may have 
 occurred; we know the latter has frequently happened. We have just 
 stated the principles on which a Bank ought to, issue its owr paper. If it 
 attempts to force more into circulation, than that circulation will absorb, 
 the paper will return, to the injury, perhaps ruin of the institution. This 
 is a check on this abuse, of a most efficient nature. Banks, however, may 
 be so multiplied, as to defeat their own objects ; too much capital may be 
 employed in this, as in any other occupation ; bills, too, may be issued from 
 so many institutions, may require at last so much caution in the public, 
 may afford so many facilities to forgery, as to discredit Bank paper alto- 
 gether. Banks, too, with small capitals, are more easily embarrassed than 
 those with extensive resources. They may frequently be checked and dis- 
 
384 ANNUAL REPORTS OF 
 
 credited by individuals with extensive resources, whom they may happen to 
 offend ; and the failure, or even apprehended failure, in times of difficulty, 
 of a number of small institutions, will affect and injure even the most pru- 
 dent' and most substantial. But these evils are only incidental^ not by 
 any means inherent. They can be readily removed by tiine, and public 
 opinion, xind while, in the last place. we admit that credit is frequently 
 given incautiously, and without due consideration ; that Banks sometimes 
 place confidence in individuals by whom it is not merited ; we cofidently 
 assert that no evil in society bears within itself, a more radical and certain 
 remedy. A Bank, no more than an individual, can .ever desire to render 
 itself bankrupt. Its Directors will at times err, and may be deceived ; but 
 they never can wish to contract bad debts. As soon as they find that cer- 
 tain persons or classes of persons, are engaging in hazardous projects, as 
 soon as they discover that commerce itself has become fluctuating and un- 
 certain, they begin to withhold their discounts, to call in their debts, par- 
 ticularly in those quarters in which they have become suspicious, and soon, 
 perhaps, create more alarm from their vigilance, than from their remissness. 
 Some losses such institulions must sustain, but losses to an extent materi- 
 ally injurious to them, can only occur from such fraudulent combinations as 
 rarely take place in any community ; such as must be speedily detected, 
 and ought to bring down on those concerned, the indignant justice.of their 
 country. 
 
 While, however, in justice to the private Banks, we have endeavored to 
 vindicate them from many of the charges which have been alleged against 
 them, we nevertheless think that some errors have existed in the practice of 
 Banking pursued in the United States. We have«adopted a mercantile 
 system, without giving to it the rigor which such a system demands. With- 
 out remembering that in a mercantile system every transaction ought to be 
 closed at very short periods, not exceeding sixty or ninety days ; that no 
 renewals, no protracted credit, should be allowed. By adhering to one 
 part of this system, while we have abandoned the other, we have rendered 
 everything anomalous ; we have made our theory and practice alike incon- 
 sistent. In general, Banks are still considered as only calculated for mer- 
 cantile uses," oply to support and be supported by mercantile credit. The 
 man whose property is fixed and immovable,' is considered an improper 
 customer ; he whose possessions are constantly changing, is the favorite at 
 their Boards. The man whose estate is real, readily known, and incapable 
 of concealment, is discountenanced and rejected ; while ho whose means 
 are invisible and untangible, capable of being transferred instantly and se- 
 cretly, is patronized and ' supported. The planter, the farmer, the free- 
 holder, make their annual ventures, but it is their income only which is at 
 hazard. The merchant stakes constantly both income and capital, yet on 
 this very account, because his whole property is afloat, frequently in money, ^ 
 generally in objects easily converted into money, and therefore apparent in 
 the books of a Bank,' he enjoys the highest privileges ; and credit gives to 
 him advantages, which the iiiost substantial wealth cannot obtain. The '^ 
 results of such a practice,. are exactly those which such a theory merits. — 
 On every shoclt in the mercantile world, bankruptcies are numerous. The 
 docket books of the courts are crowded with suits on behalf of Banks, to 
 recover that which, like the fabled Proteus of old, has assumed, or can as- 
 sume, any shape, which may suit the views of an iuterested debtor ; or 
 which, like a shadow, has vanished altogether. An insolvent debtor's act 
 closes each little drama, and leaves the actor>s to make new exhibitions, in 
 
PRESIDENT AND DIRECTORS. 385 
 
 new characters. And it is on experiments of this kind, on a practice so 
 hazardous and unwise, that the Banks stand accused of encouraging a 
 speculative temper in society ; of promoting rash and visionary adventures ; 
 of enabling men to embark with fictitious capitals in perilous enterprises ; 
 and under the standard of mercantile credit, to involve in their calamities 
 an innocent community. But let them reverse these principles, let them 
 consider real and ostefisible property, as the foundation of all extensive 
 credit, and no serious losses can then accrue to themselves or to society. — 
 They may move slowly, sometimes heavily; their machines may be cum- 
 brous, it is true, and unwieldy, but they will at least advance steadily and 
 safely, over the rough i-oads, and in the bad weather, where the slight, tre- 
 mulous car of commercial credit will be shivered to atoms. 
 
 If mercantile Banks would adhere strictly to mercantile ' principles, if 
 they would only discount bills or notes given in the course of real business, 
 and for which payment in full would be expected whenever they became 
 due ; or if tliey only granted those accommodations which a merchant 
 might occasionally require, while converting stock into money, such as would 
 merely reader it unnecessary for him to keep large sums of money unem- 
 pfoyed, they would accomplish without risk, the objects for which they were 
 probably first established. Their business would then be satisfoctory, their 
 calculations certain, and the embarrassments of the passing day, could al- 
 •ways be counteracted by easy and competent arrangements. But when 
 extensive credit is given on the apparent business which mercantile houses 
 are transacting, when indulgence is extended and expected, not only until a 
 cargo can be purchased, but until that cargo can be exported, sold, invested, 
 the returns re-shipped, and again realized ; individuals are tempted and 
 encouraged to trade, not in truth, as has been said, on artificial capitals, 
 but on the real and substantial capital of the Banks themselves. While 
 these institutions incur the risk arising in each case, not only from the un- 
 certainty of the sjpeculation itself, but from the possible insolvency or want 
 of faith in every .person through whose hands the property must' pass. — 
 We doubt whether the situation of our country admits of the rigid appli- 
 cation of mercantile principles ; it becomes, therefore, the more important 
 to look, on all occasions, steadily to the security which m,ay be offered for 
 the final, although, perhaps, protracted payment of every debt. We believe 
 that no security can be better, none so efficient, as that of the merchant, 
 whose success has enabled him to realize a large portion of his capital, and 
 to continue with the remainder a limited commerce ; no security so uncer- 
 tain as his, whose property is always employed and constantly jeoparded. 
 No government for Bank« can be better than that of the merchant who has 
 fairly and decidedly retired from bi^siness ; none, perhaps, so hazardous as 
 his, who is actively and deeply engaged. 
 
 From these general considerations, we must now return to a more un- 
 pleasant subject, while we review the transactions of our own Institution, 
 and exhibit the embarrassments under which we have labored, and the im- 
 pediments which attend our future operations. 
 
 We trust that we have sufficiently shown that the bills of the Bank of 
 this State have never depreciated, and that the money issued by them has 
 never equalled the amount which could have been actively and advanta- 
 geously employed in the country. It may be now proper to prove that the 
 Directors of this institution have never neglected those means which were 
 
 49 
 
386 ANNUAL REPORTS OF 
 
 necessary to secure its substantial credit, and to preserve to its paper, the 
 high confidence which it has always enjoyed. 
 
 Although we have never ceased to consider the resumption of specie pay- 
 ments in February, 1817, as unfortunately premature; as having produced 
 great evils, which might have been entirely avoided, by a delay of only six 
 months ; yet the Directors of this Institution acquiesed in the decisioti of 
 the country, and from that time, have been unceasing in their efforts to 
 maintain a specie currency. We have, endeavored to co-operatCj as far as 
 possible, in what appeared to be a favorite object with the government of 
 the United States ; .we made efforts, which, to many of the ablest of our 
 Directors, who yet asquiesed in them, appeared to be unnecessary and su- 
 perfluous. In twenty-six months, between the 20th of December, 1816, and 
 the 20th of February, 1819, while our capital, which is progressive, had 
 increased from $466,129 84 to $909,224 81 ; we procured for the use of 
 the Institution upwards of $500,000 in specie, without taking into view the 
 small sums, which were daily passing through the hands of our Tellers ; or 
 without including the amount which we possessed at the former period. — 
 And this amount, (exceeding half a million, of dollars,) was fairly added 
 to the specie capital of the country. ^ At the first commencement of our 
 business, we did draw from the Banks a -small sum in specie ; but as specie 
 payments were at that time generally suspended, we merely exacted a mod- 
 erate amount, ($60,000,) to meet any demand which the exigencies of the 
 State, during the continuance of war, might require. Since that period, 
 we have never knowingly or intentionally drawn one dollar from the vaults 
 of any other Bank. It has been our wish, and we believed it to be our 
 policy, to have with them a common interest. . We considered the business 
 of the country as more than sufficient for the capital of all our Banks, at 
 least until our own capital should be greatly ai:^mented ; and we had proofs 
 which appeared to us demonstrative, that the paiper we were authorized to 
 issue,. would not supply the real wants and uses of the State. We found 
 our own means insufficient to meet and' transact the business, which was of- 
 fered us from every quarter of -the country. We felt, therefore, no wish 
 to cramp or cripple the operations of other institutions ;. We were rather 
 gratified that the State should enjoy the full advantage of its- pecuniary 
 resources. We, consequently, drew from the commerce of the country, not 
 from its banks, the specie which appears to be necessary to support the 
 credit of our paper. - \ •■ 
 
 We have already stated the circumstances, under^hich specie payments 
 are easily maintained by Banks, and we have pointed out those causes, 
 which render them difficult and expensive, if not impracticable. But lat- 
 terly, new impediments have arisen, that are nearly insurmountable. In 
 addition to a paper circulation, and a specific demand for silver for expor- 
 tation, the Bank of the United States appears determined to avail itself of 
 its great advantages. It has assumed a position which has rendered all 
 other embarrassments unimportant. ^ 
 
 In the ordinary routine of business, in cities where many Banks are lo- 
 cated, it will commonly happen, that each Bank will receive the paper of the 
 other Institutions, nearly in proportion to the business they mutually trans- 
 act. Their accounts, therefore, if accounts are kept between them, can 
 usually be balanced by an interchange of paper ; but more frequently, when 
 good temper exists among them, each will discount without hesitation, ort^. 
 the paper of the other Banks which it may hold, and thus throw it again 
 
PRESIDENT AND DIRECTOKS. 387 
 
 into circulation. If any Bank should manifest a spirit of hostility, it is 
 checked by the common exertions of its rivals, because the^ paper of other 
 institutiotis which it may possess^ can ^nd will be counterbalanced by the 
 paper which it has been obliged itself to issue. ^ 
 
 But an entirely new case occurs, when a Bank, .without doing business, 
 becomes, from extraneous causes, the depository of the circulating currency 
 of. the country ; or at least becomes a channel through which all of the 
 money of the country must flow. When such an Institution chooses to act 
 with hostility ; when it requires that all or a great portion of that paper, 
 which is constantly and necessarily passing through its coffers, shall be im- 
 mediately redeemed ; no prudence can guard Banks differently situated, 
 against such a pressure, no exertion enable them to support its continued 
 operation. To suspend business totally, and to withdraw its paper from 
 circulation, is the only system which can then ^lace any Bank jn a state of 
 security. . 
 
 In this community, the Bank of the United States has no paper in cir- 
 culation. All of the duties, or taxes, or debts due to the national govern- 
 ment, must therefore, as long as those debts, or taxes, or duties continue to 
 be collected, be paid into the Bank in the IdIIIs of the local Institutions. — 
 Not because those Institutions have issued too much paper, not because 
 they have overtraded, not because they have been imprudent, but because 
 there is no other money in Circulation. And under the present system this 
 must continue to be the caso, until their last dollar is actually withdrawn. 
 And if a Bank which, like that of the State of South Carolina, has been 
 formed for the public benefit, and has been avowedly destined to relieve^ 
 the distresses of our fellow-citizens, in moments like the present ; if such a 
 Bank should procrastinate the time of calling in its paper ; if it should de- 
 lay to the last possible hour, the pressure, which such si measure would ne- 
 cessarily occasion ; if unmindful, perhaps," of its own immediate interests, 
 it should endeavor to check or avert the ruin whicH was overwhelming the 
 community : it might appear at last to have a great deal of paper in circu- 
 lation, because its paper would finally form the only currency, which the 
 public would have to use. Against such a Bank it will then become easy 
 to accumulate balances. And under such circumstances, it will not create 
 surprise to learn, that in a little more than thirteen jnonths, this Institution 
 has been compelled to pay to the Bank of the United States upwards of 
 $528,000 ; besides about $50,000 of our own paper, which were drawn out 
 of its vaults, by stock sold expressly for that purpose. And as thete are 
 four other Banks in Charleston, against all of whom large balances have 
 been obtained, it is easy to percfeive why the business of the city and coun- 
 try has been embarrassed and curtailed, why there h^s been, and why there 
 ,must be, for an indefinite time to come, a suspension of all accommodation. 
 
 If the Bank of the United States depended entirely on its own re- 
 sources, great as is its capital, and great as are its advantages, there might 
 be some chance for competition. If it did business extensively, it would 
 be compelled to issue its own paper ; if it transacted no business, it could 
 collect no balances against the local institutions. But standing as' it does 
 in our community, the reservoir and dep'ository of the national wealth ; re- 
 ceiving into its vaults, the overflowing tide of public revenue ; acquiring in 
 this manner nearly all of the circulating paper of the local banks ; its ope- 
 rations against them, when hostile, are irresistible. But it is only by the 
 immense deposits of the United States that these operations can be effected ; 
 
388 ANNUAL REPORTS OF 
 
 it is by the resources of the nation that we are overpowered ; it is by the 
 arm of government that we are oppressed ; and it may merit some inquiry, 
 whether the arm of government ought so to be employed. 
 
 These circumstances merit the more consideration, because great injury 
 may, on certain portions of the country, unexpectedly and unintentionally, 
 be inflicted. A system, general in its principles, and uniform in its appli- 
 cation, may be unequal and oppressive in its operation. The Bank of the 
 United States derives its principal, if not its only means of annoyance, 
 from the resources of the government. In places, therefore, where little 
 or no revenue is directly paid to the government, it can acquire no ascen- 
 dancy over the local Banks. In places where large portions of the reve- 
 nue are received, if great expenditures are made by the United States, the 
 same result will ensue ; no balances against the State Banks can accumu- 
 late, because the revenue, as fast as it may be collected, is employed in the 
 service of the government. It is only in places where a large part of the 
 revenue is received, and little or nothing expended, that the full and ruin- 
 ous effects of this system can be exhibited. In such places, its influence 
 and control are absolute and unlimited. It should perhaps always be kept 
 in remembrance, that where large sums are collected in one part of a coun- 
 try, and employed in another, the government ought to afford every facility 
 and indulgence in the transmission which may be practicable. It is a heavy 
 tax on a community to lose annually a large portion of its circulating cur- 
 rency, which it must replace. In very prosperous periods, these burdens 
 are not felt or not considered ; but in moments like the present, they press 
 on our attention, because they all conduce to impair the deer-easing means- 
 of the country, to retard the hour of returning prosperity. 
 
 There is one view of the subject, which, however unpleasant, it is impos- 
 sible to overlook. Wherever a Branch of the Bank of the United States 
 is established, it immediately becomes an instrument, bv which all other 
 monied institutions are and must be regulated. At its pleasure, they 
 transact or suspend business, and at its decrees, the commerce of any city, 
 or local district, can be interrupted or paralized, or totally destroyed. It 
 wields in truth a power, which the government of the United States itself 
 cannot exercise, and does not possess. The laws of the United States 
 must be enacted publicly, and must have an universal and uniform operation. 
 The decrees of the Bank are passed in privacy, and are only known by 
 their effects ; they can be made to act on one city, or on one district of 
 country exclusively; they can cripple the enterprise of one State aud pro- 
 mote that of another ; they can drain the specie from the Banks of one 
 district, to facilitate the operations of their officers in some more favored 
 or more unfortunate quarter. Decisions which may affect every pecuniary 
 transaction of a country, may be made in silence, and executed almost in 
 secrecy. They would at least only be known, and then but partially, at 
 the moment of execution. A community may feel their effects, may find 
 itself involved in distress and ruin, without being able to trace distinctly 
 the origin or extent of the operating cause. The commerce of any par- 
 ticular city, may be destroyed even. without design, for the power of this 
 corporation is as yet, perhaps even to its Directors, but inadequately known. 
 There can be no doubt, that if in two contiguous cities, such as Charleston 
 and Savannah, a system of coercion against the Banks, and consequently 
 against individuals, should be enforced in the one, and not in the other ; 
 such would be the fecilities given to the merchant, such the accommodation 
 
t 
 
 PRESIDENT AND DIRECTORS. 389 
 
 to the planter, such the advantages afforded to the mechanic in that city, 
 in which a liberal system should be adopted, that in a very short time, we 
 should find every floating branch of commerce, every species of removable 
 property, every individual unattached to the soil, transferred to that spot 
 where business was unshackled amd encouraged. In one of the cities we 
 have mentioned, this truth has been perfectly well understood. 
 
 In Charleston, overtrading has been a cabalistic word, which has super- 
 ceded argument and fact, and has threatened destruction to every interest. 
 This ominous cry has issued from the press, has been repeated at our cor- 
 ners^ has re-echoed through our streets, until hundreds who had not the 
 means or the leisure to inquire into its correctness, considered themselves 
 obliged to join in the denunciation, and unite their efforts to suppress so 
 protentous an evil ; to suppress the commerce and exertions of our com- 
 munity, to repress -that buoyant and elastic spirit of adventurous enter- 
 prise, which has distinguished and elevated the character of our country, 
 and given it a pre-eminent station among the nations of the globe. In 
 Savannah, the inhabitants have more fortunately, if not more wisely 
 c'oncluded, that although some individuals have been injured by great, per- 
 haps unguarded business in a disastrous year, that their extended and 
 growing commerce, has been, notwithstanding, beneficial to their city, ad- 
 vantageous to the country, and profitable in various modes to many who 
 were engaged in its prosecution. They have been able to perceive in the 
 extent of their trade, the germs of individual and national prosperity. 
 They have, therefore, with one accord, promoted and upheld it under every 
 pressure, supporting, as far as it was practicable, those who ha4 been un- 
 fortunate ; and enabling those who had been successful, to pursue with in- 
 creased facility, the career of fortune. Can we be surprised if with such 
 views, that city has greatly prospered, and is now prospering ; must we not 
 expect that as long as it can maintain and perpetuate such liberal princi- 
 ples, it will continue to prosper? 
 
 How idle, how visionary, how ruinous are the efforts to enter into the de- 
 tail of personal pursuits, and regulate the employment of capital. We are 
 called upon to clip the wings of commerce, manacle the hands of industry, 
 control the spirit of enterprise, that they may not range through the world, 
 and endanger by their excesses the tranquility of our systems. The gov- 
 ernment, or the Banks, must manage the transactions of its citizens, lest 
 they become wealthy and misemploy their wealth ; or become idle and ad- 
 venturous and squander it away. Money must be withheld, that individu- 
 als may not plunge into ruin ; credit must be withdrawn, lest it be un- 
 profitably used. But amidst these cautionary projects, we may have yet 
 to learn, that a commercial people deprived of a circulating currency, dis- 
 appointed in their customary accommodations; crippled in their resources, 
 oppressed in their exertions, may become a people without commerce ; that 
 the torper of the heart must soon produce in every member the coldness 
 and stillness of death. 
 
 It is peculiarly unwise to shackle and curb the freedom of mercantile ad- 
 venture. The path of the merchant is full of peril and uncertainty ; his 
 life is one of constant, of bold, and even daring experiment. It is his pro- 
 vince to traverse each haunt of man, to visit each trace of human habita- 
 tion ; to explore evei'y source of human desires or human wants ; to seek in 
 every region, a market for the productions of his native country ; to search 
 in every clime for the commodities wanted at home for domestic enjoyment; 
 
390 ANNUAL REPORTS OF 
 
 to transport and interchange the manufactures and arts t>f the most remote 
 and most widely separated people ; to. supply the mutual and necessary 
 wants of nations ; he is found in every port, his canvass whitens tsvery sea; 
 wealth is his object, danger and toil and hazard are his companions the 
 world is his domain. He knows that his efforts may be counteracted by 
 the elements, may be injured by unforeseen competition, may be frustrated 
 by unexpected restrictions, may be destroyed by the occasional conflicts of 
 nations. He must provide against these evils, by foresight, by prudence, by 
 sagacity, or lose his high name and standing in the comn\unity ; but as it is 
 from his personal information and knowledge, that he frames his adven- 
 tures, not by the direction of the government, so it is by his own caution 
 and vigilance, not by the supervision of others, that he mu*t guard against 
 their failure. * , . ■ 
 
 If we have indulged, perhaps idly, in Jhese 'reflections, it is because we 
 have felt the effects of l^ese opinion?. It appears to have -been in this city, 
 a prevalent idea with the directoi:s of the b;ranch of the Bank of the United 
 States, that the business of the country had been imprudently augmented ; 
 that the merchants and local Banks had all greatly overtraded ; that they 
 required to be checked' and restricted, perhaps stood in need of parental 
 guidance and monitory counsel. ' , 
 
 Yet amidst all of these difficulties, there might have been circumstances 
 which would have silenced every murmur. If the Bank of the United 
 States were really a National Bank ; if its resources, its objects, its advan- 
 tages, were national ; if it had created a national currency ; if it had facil- 
 itated by its arrangements, the intercourse, or increased the harmony of 
 the diff"ererent members of oiir union, amidst the benefits it was extensive- 
 ly diffusing, the occasional evils which . it produced, might have been un- 
 noticed, or would have been disregarded. . 
 
 If it were really a National Bank ; if its capital were truly national ; if 
 its income and profits belonged solely to the government, and were, or 
 might be applied exclusively to national purposes, amidst the general 
 splendor and utility of its results, every minor consideration, every pergon- 
 al or local interest, would have been forgotten. But, in its present situation, 
 a corporation which may be owned and governed by a few opulent men in 
 our great cities, and be directed solely to private and personal objects ; 
 which may be monopolized by foreigners ; or which may exhibit once 
 more, scenes of unexampled and unblushing speculation ; we know not 
 why the other private or local institutions should be prostrated before it ; 
 why the interest of the many who have invested their property in the State 
 Banks, should be sacrified to that of the comparatively few, who are inter- 
 ested in the Bank of the United States ; or why the government of the 
 United States should employ their means, or suff"er them to be employed, to 
 overwhelm and destroy institutions which, in the hour of difficulty and dis- 
 tress, aff'orded to their country the most efficient aid. 
 
 The Bank of the United States enjoys many privileges, which even under 
 common circumstances, give it great advantages over the local Banks. Its 
 great capital, its extensive credit, and the power of circulating its bills 
 over the whole surface of the United States, enable it to transact more 
 business, and to issue with safety more paper, than any other monied in- 
 stitution. The bills payable at Boston may be actually distributed at 
 New-Orleans ; those payable in Charleston may be scattered on the Mis- 
 souri. These are important privileges, to which it is fairly entitled from 
 
PRESIDENT AND DIKECTOKS. 391 
 
 the services it renders to the government. But when it employs these ad- 
 vantages to destroy, when it intimates, by its conduct, a design to accom- 
 plish that object so often hinted at by its great stockholders, of standing 
 alone in society ; the citizens of this country will be inevitably compelled 
 to. inquire into the purposes for- which this power was ostensibly given ; and 
 into the expediency and propriety of placing the credit and fortunes of al- 
 most every individual in the United States, perhaps the commerce of our 
 cities, and the resources of our country, under the control of the directors 
 of any one private institution. 
 
 Neither must it be forgotten that the directors of the Parent Bank, by 
 whom all the subordinate branches are governed, let them be selected with 
 the utmost caution, must in their views and feelings be essentially local. 
 Th6 opinions and prejudices, and even errors of Philadelphia, must be their 
 guides. We cannot expect always to find or retain in its government men 
 superior to the age or community in which they reside Their leading ob- 
 ject must be to render their arrangements at home satisfactory ; every 
 movement of the system must bend to this purpose. They will listen to 
 rumors of suflFerings, of ruin, in the remote corners of the Union, with the 
 same general emotions of sympathy, with which they hear of the distant 
 ravages of the elements : they will, perhaps, consider them as alike acci- 
 dental, and ec[ually inevitable. The only suffering which they can distinct- 
 ly feel, the only ruin whose cause they can clearly appreciate, is that which 
 occurs in their own immediate vicinage. 
 
 Such are the views of the Bank of the U-nited States,- and of its opera- 
 tions on the local Banks, which we have felt ourselves compelled, however 
 reluctantly, to present to your notice. If, even under its present adminis- 
 tration, they have been forced on our attention, what might we not expect, 
 if the talents and integrity which now guide it, should at any time be ex- 
 changed for an unsteady and tyrannical administration ; for principles par- 
 tial, local or corrupt? 
 
 For the establishment of. specie currency in the United States, the Bank 
 of the State of South-Carolina has -probably made, in proportion to its cap- 
 ital, as great exertions as any Bank in the Union ; and this without any 
 conviction on the part of its Directors of , the expediency or practicability 
 of the measure. We have never availed ourselves of any privileges as a 
 national institution, nor have we been disposed to shelter ourselves under 
 the protection which public favor might have offered to us. We have 
 adopted, as far as lay in our power, every precaution which, even to private 
 Banks, prudence appeared to dictate. We have embraced every opportu- 
 nity to procure specie, either by purchase, when it was abundant in the 
 market, or by offering occasionallyio depositors some of those advantages 
 which a Bank, without loss, can frequently bestow. But if every hundred 
 we coUeeted had been thousands, we believe at the present moment, it would 
 be equally unavailing. . - 
 
 We have already remarked how arduous was thq effort to maintain specie 
 payments, when the sums drawn from the Banks, were immediately export- 
 ed. One fact connected with our business may serve to illustrate our ob- 
 servation. In the first six months of the last year, (1818,) it is probable 
 that upwards of ^800,000' in specie, were thrown into general circulation in 
 the City of Charleston. This Bank, at that time the smallest in point of 
 capital, of six, who were all doing business freely, paid out $140,000. . . It 
 is probable that by the 1st of November in that year, not 50,000 dollars of 
 
392 ANNUAL REPORTS OF 
 
 the whole sum, remained in the State ; we are confident that not $10,000 
 could have been found in Charleston. It was a tribute thrown into a stream 
 which had no reflux, into a current whose course has been as unvarying as 
 the flight of time. 
 
 For some time past we have been steadily^ngaged in withdrawing our pa- 
 per from circulation, an-d this must be our employment for some time to 
 come. All our means must be directed to this object. It will be seen by 
 the istatements which accompany this report, that before the half of the 
 debts due to the institution is paid, every dollar of our paper will or may 
 be withdrawn from circulation.. The credit of the institution will be pre- 
 served, however its profits may be reduced. 
 
 We must again apologize for the length to which these disquisitions have 
 been protracted. We felt it our duty to state as distinctly as we are able, 
 the prominent causes of our present embarrassments. We have done this 
 the more freely, because we have no interest separate from that of the com- 
 munity, in the decisions of the country on its pecuniary arrangements. 
 We have no participation in the profits of this institution ; no personal mo* 
 tives for extending improperly or unwisely its operations. We can have 
 no wish but to render it beneficial to the country, and profitable to the 
 State ; no anxiety but to be found faithful 'guardians of the trust commit- 
 ted to our care. ' ^ 
 
 Signed by order of the Board : 
 
 STEPHEN ELLIOTT, President. 
 
 Charleston, 1st Nov., 1819. 
 
 • (1820.) 
 To tlie Tresident and Members of tlie Senate of the State of South Carolina: 
 
 The President and Directors of the Bank of the State of South-Carolina, 
 respectfully report : 
 
 That on the 13th of October, they passed to the credit of .the Treasury of 
 the State, one hundred thousand two hundred and eighty-seven dollars and 
 thirty-seven cents, being tlie nett profit of the Bank, from 1st October, 1819, 
 to 30th September, 1820. 
 
 In making this return, they think it may not be uninteresting to state, 
 that when the great commercial embarrassments which have occurred with- 
 in the last three years, the great fluctuation in the value of property of ev- 
 ery description, and the consequent and almost unexampled changes in the 
 circumstances of individuals, are duly considered, they have reason to be 
 gratified at the good fortune which shielding them from any serious or se- 
 vere losses, has hitherto attended their operations. They deem it not im- 
 proper to add, that in order to meet the arrangements and views of the 
 Legislature, and to prevent any interruption to the important, and as they 
 hope most valuable improvements which have been advancing in almost 
 every quarter of the State, they have been obliged to turn their attention 
 and resources through the past year, almost entirely to the public exigen- 
 ces, and to make great advances for the public service. 
 
 This, however, has been attended with no other inconvenience than that 
 of preventing them from withdrawing their paper as rapidly from circula- 
 tion, as the circumstances of the times appear to require. To this point, 
 
PRESIDENT AND DIRECTORS. 393 
 
 however, their efforts are still steadily directed, and they trust that it will 
 yet be accomplished without producing, or having produced, to individuals 
 or the public any disadvantages. 
 
 STEPHEN ELLIOTT, President. 
 
 (1821) 
 To the Honorable the Speake)' and Members of the House of Representa- 
 tives of the State of Soutlv- Carolina : 
 
 In pursuance of the Resolution of the Legislature, passed during its last 
 session, in which "the President of the Bank of the State is requested to 
 state to this' Legislature, at its next session, his opinion of the expediency 
 of increasing the capital of the said Bank, and letting in private stockhold- 
 ers for a proportion thereof/' the , following observations are respectfully 
 submitted : 
 
 The Hesolution of the Legislature embraces two distinct subjects. 1st. 
 The expediency of increasing the capital of the Bank of the State pf South 
 Carolina ; and 2dly, the expediency of admitting private stockholders to 
 become interested in the Institution. To each of these. propositions a sep- 
 arate consideration shall be given. 
 
 On a former occasion, some observations were submitted to tTie Ijegisla- 
 ture, on the importance and value of banking institutions, exhibiting the 
 conveniences and facilities which they afford to commerce, and to the gen- 
 eral interchange of property, and pointing out the influence which, when 
 well directed, they exert, not only on local sections of a country, but on 
 its national prosperity. No reflectipns which have since been made on 
 this subject — no facts which have since occurred, have tended to shake the 
 opinions then expressed ; and the importance of preserving, if not of ex- 
 tending, the capital now employed in banking within the State of South- 
 Carolina, becomes entitled, at this moment, to peculiar attention. TKe 
 charters of two of our private Banks are about to expire, and nearly two 
 millions of capital may be withdrawn from circulation. Even if it should 
 be siifjposed that enough would remain in Charleston, for the business of 
 that City, which would be very doubtful, many places within the State, and 
 the State itself, would probably derive great advantages from the employ- 
 ment and proper location of a banking capital larger than that which we at 
 present actually possess. It is unnecessary to point out these locations. 
 The two branches we have established are insufficiently supplied with cap- 
 ital, and it is scarcely possible to converse with intelligent men from vari- 
 ous parts of our country, without perceiving the points which only require 
 capital to become the centre of an active and permanent commerce. There 
 can, therefore, I think, be no doubt that an increase of capital to the Bank, 
 and even an increase of the capital now employed- in banking, will be beUe^ 
 ficial to the State. 
 
 The banking capital, in the State may be continued or enlarged, either 
 by re-incorporating the old Banks, or by creating new Banks, or by en- 
 larging the capital of the Bank of the State of South-Carolina. The 
 Resolution of the Legislature confines my attention to the last of these ar- 
 rangements — to the expediency of enlarging the capital of the Bank of the 
 State of South- Carolina. 
 
 50 
 
394 ANNUAL REPORTS OF 
 
 It is perhaps of more importance than is generally imagined, that the 
 small Banks distributed over the" State should be connected together by 
 one common bond — should, if possible, be branches of one great institution, 
 located at the commercial capital of the State. 
 
 This would not only give union and harmony to their operations, and 
 would increase the power of resisting the pressures and fluctuations of 
 commerce, but would prevent those evils which have been felt in some parts 
 of the United States, by the multiplication of small independent Banks. 
 It would prevent the great efforts which, in order to render business profita- 
 ble, have sometimes been made to force paper into circulation, without pos- 
 sessing adequate means to support its credit ; and it would avert those con- 
 tentions and competitions which generally originate from the unaccommo- 
 dating temper of a few individuals, and which, without benefit to any in- 
 stitution, are injurious to the whole, and to the public at large. The 
 Bank of the State has not at present capital sufficient to establish new 
 branches ; it cannot supply the branches at Columbia and Georgetown 
 with as much capital as could be advantageously employed. It remains 
 for the Legislature to determine whether it will establish other Banks or 
 enlarge the capital of their own. 
 
 The capital of the Bank of the State can be increased, either from indi- 
 vidual wealth, by admitting private stockholders to subscribe to the Bank, 
 to such an extent and in such a manner as may be deemed expedient ; or 
 from the funds of the State, by restoring the original provisions of the 
 charter, and adding such sums as may from time to time be diverted to this 
 channel. 
 
 In favor of admitting private stockholders into the Bank, it is urged : 
 
 1st. That the Bank will be more prudently and safely managed, by those 
 who have a personal interest in its prosperity : 
 
 2d. That the public will have more confidence in its operations, and that 
 individuals will yield it more aid and support. 
 
 3d. That the capital can be increased by this means, to any extent, and 
 at any moment, when the 4)ublic may deem it expedient. 
 
 To the first of these considerations, more weight has, I think, been giv- 
 en, than it really merits. It seems, on the first view, so deeply and justly 
 founded on the constitution of man, that we are accustomed to overlook the 
 many circumstances which may render this opinion fallacious. If it were 
 always the case, that in private Banks those who were called to the man- 
 agement, had their whole property invested in them, the assumption would 
 be more strong. They would then be liable only to the errors which ac- 
 company all human actions, added to the risk of those desperate specula- 
 tions which often take place when the individuals who govern an institu- 
 tion combine to raise or depress, the price of their stock in the market, ac- 
 cording as they may be disposed to sell or to purchase. But in general, 
 the active Directors in private Banks are individuals extensively engaged 
 in other pursuits, and who sometimes regard the institutions with which 
 they are connected, only as instruments to facilitate the attainment of more 
 important objects. It would be easy to point out cases in which it may 
 become the interest of a director, even if a large stock-holder, to jeopard or 
 sacrifice the welfare of the Bank, to his private speculations. The diminu- 
 tion or even loss of a dividend on the stock he may hold may be a trifle, 
 when' compared to the great stake at issue on some other game. The risk 
 he may run as a stockholder in the future insolvency of parties doing busi- 
 
 i 
 
PRESIDENT AND DIREC/^||r r p. J'^^ 
 
 ness with the Bank, may be a trifle, compared withNj^i^^jfcd^iiazard^S'* ^ 
 an endorser. It would be easy, if necessary, to show B^^^fgpAtftJjEl j^ 
 a Bank may be made to bend to the vie\^s of those fn^'T^mTritiUfyiB nTtr 
 ing or in selling in the stock, or in the markets ; but I wish to excite no 
 prejudice whatever ; I wish merely to show that this argument has not the 
 weight which has been ascribed to it ; to express an opinion that private 
 Banks may be mismanaged, even by their own stockholders, and that it 
 may sometime become the interest of a stockholder, even of one holding 
 stock to a large amount, to mismanage them. We must, then, let the chance 
 of management rest on its proper basis — on the integrity of the persons 
 selected for this purpose. 
 
 The second.of these arguments admits of little controversy ; unfortunate- 
 ly, however, it is of more importance to those who govern these institutions, 
 than to those who own them, or to the public generally. The proprietors 
 at large would commonly be contented with the operations with which the 
 directors who were themselves great stockholders, appeared to be satisfied, 
 and the officers could not become the object, perhaps the victims, of per- 
 petual suspicion. Whenever losses should occur, from which no institution 
 can be exempt, the circumstances of each case would be intimately known 
 to those who were principally concerned, and causes improper or untrue, 
 could never, through ignorance, be imputed to the agents in each transa^c- 
 tion. But as I have already remarked, these are advantages of far more 
 importance to the rulers of these institutions, than to any other persons : 
 And although it is generally supposed, and perhaps truly, that a private 
 Bank would obtain more support from individuals, even from those not 
 connected wi,th it, than a public Bank, it may yet be renmrked, that on this 
 point,' no one can speak with certainty, who has not had an opportunity of 
 examining the Books of many Banks, and of becoming acquainted with the 
 situation and circumstances of the individuals connected with them. 
 
 That the capital of the Bank can be increased by the junction of pri- 
 vate stockholders, to any extent which may be deemed beneficial, is cer- 
 tain. Notwithstanding the prejudices which have existed, or may have 
 been excited against this institution, no difficulty whatever will exist in 
 finding individuals willing to share in its fortunes. Th6 Legislature has 
 only to declare its will on this subject, and it will speedily be accomplished. , 
 
 If the Legislature should deem it expedient to admit private-holders, I 
 think it would be advisable that the State should reserve the right of in- 
 creasing, at pleasure, its interest in the institution. The same cause which 
 led to its first formation — large surpluses remaining unemployed in the 
 Treasury, may occur again ; and it will surely be beneficial,^ that a mode 
 should always exist, of employing these sums profitably. No. evil could re- 
 sult to the State, from the increase of its proportion of the capital of the 
 Bank, as it would always be able to sell its stock, if its fund should be 
 wanted in money : No disadvantage, that we perceive, could arise to the 
 private stockholders, as no increase of capital from this source would pro- 
 bably accrue more rapidly than the increasing population and wealth of the 
 State would naturally require. It may be proper also, to add, that ' if this 
 union should take place, the appointment of the officers of the Institution 
 should be left exclusively to the Board of Directors : harmony and mu- 
 tual confidence between the officers and Directors would be essential to its 
 proper and prosperous management. If we view, on the other hand, the 
 inducements which may persuade the Legislature to preserve the Bank in 
 
396 ANNUAL REPORTS OF 
 
 its present form, as exclusively the property of the State, they will appear 
 to he not inconsiderahle. For if wo are permitted to suppose that as a pub- 
 lic fund it can be managed safely, and we believe that checks, if, or when 
 necessary, can be multiplied around it in such a manner as almost to en- 
 sure that safety, it is certain that a Bank so constructed, affords a smaller 
 scope for those disastrous speculations which Banks have been accused of 
 encouraging, than one in any other form. No Directors can throw their 
 weight, as great stockholders, in favor of any project or individual. Each 
 member in the Board stands on an equal and independent footing, and as no 
 Director is stockholder, none of those projects can exist which are calcula- 
 ted and designed only to act on the price of stock in the market. 
 
 And if a small capital can, as is generally supposed, be managed better, 
 and rendered more productive than a large one, it would be unwise in the 
 State to injure the productiveness of its own funds, by adding to them 
 suddenly a large amount of foreign capital. If its funds should increase 
 gradually, by means within its reach and power, the interest yielded on its 
 investments may diminish, but the State will have some compensation in 
 the magnitude of its own capital, for the comparative decrease of its divi- 
 dends. 
 
 And it should also be remembered, that in their present position, the 
 funds of the State can be readily commanded, and exclusively directed to 
 national purposes. In times of peace, this may be of little importance, but 
 during moments of embarrassment and danger, the value of such a re- 
 source, particularly in a country where monied capitals are not abundant, 
 it is not easy to estimate. During the late war, this Bank, at the very 
 commencement of its operations, advanced, for three years, the direct tax 
 imposed on this State by the General Government, and saved to the citi- 
 zens, annually, the premium of fifteen per cent, allowed to those States 
 which should pay promptly into the general treasury, the amount of the 
 tax. And when it was proposed to raise a Brigade of State Troops, the 
 Bank offered to advance $500,000 a year, for three years, for their support. 
 Peace rendered this measure unnecessary ; but it would be easy now to 
 prove that this offer was not an idle pledge, but that under the circum- 
 stances of the. case, the measure, had it been carried into effect, might have 
 been rendered as profitable to the Bank, as it would have been beneficial 
 to the State, and tothe United States, During war, not only all the money 
 which such a Bank might be able to collect, but all which it might be pru- 
 dent or possible to issue, could be directed to public purposes. From a 
 private Bank, this could not be expected — it certainly never would be ob- 
 tained. The claims aiid the wants of the stockholders would necessarily 
 require attention. Their private engagements would demand their first 
 consideration, and, to those who can command money, the chances, during 
 war, of profitable speculation, become so alluring, that all who have influ- 
 ence or interest, press on the private institutions with irresistible weight. 
 
 It has become so much the practice, in modern ages, fpr governnaents to 
 be borrowers, on every emergency, that no one appears now to inquire 
 whethet the accumulation of funds, against periods of adversity, merits 
 national consideration. This, it is true, is but an idle question to those 
 governments which are already so much involved, that in order to pay the 
 interest of their debts, they are obliged to resort to every exertion, and, to 
 every mode of taxation ; but to those which are more fortunately situated, 
 this system offers some advantages, and may claim from them some atten- 
 
PRESIDENT AND DIRECTORS. 397 
 
 tion. The possession of funds, at moments which usually create embar- 
 rassment, might prevent the necessity of submitting to disadvantageous 
 loans : might avert the failure of many an enterprize tha^ proves unsuc- 
 cessful, from the employment of insufficient means ; and might relieve a 
 government from the severe, and often unpopular duty of imposing heavy 
 taxes, at periods when the most light are not easily collected. In times of 
 peace, the revenue obtained from this source might be employed in a thou- 
 sand modes, to improve, to embellish', and to render more productive, the 
 resources of the country. 
 
 If the Legislature shpuld deem it expedient to increase the capital of 
 the Bank, from its own funds, four sources from which this increase may be 
 derived, without adding to the taxes, or to the debts of the State, present 
 themselves to view. Two of these are contingent ; two certain, and capa- 
 ble of iminediate application to this object. 
 
 1st. The premium which may be given to the State for the re-incorpora- 
 tion of old, or the incorporation of neW Banks. This premium is a fair 
 equivalent for the exemption from taxation, which is granted in each char- 
 ter, and one to which the State has a just and indisputable claim. Though 
 an inconsiderable sum, it would yet add something to the permanent funds 
 of the State. This, however, is but a contingent source of revenue, de- 
 pending upon the future decisions of the Legislature. 
 
 2d. The second source of revenue, which is also contingent, requires 
 more consideration than can be given to it in this Report. It is the fund 
 which may arise from the claim which the old States appear disposed to 
 urge, on the public land, to equalize the advantages which, by the reserva- 
 tion of the sixteenth part of their whole territory, and for the purposes of 
 public instruction, has been given to the new States. The subject will prob- 
 ably be brought before the Legislature, from its proper sources, during the 
 present session. While all are ready to admire and applaud the wisdom 
 and liberality of the .government of the United States, in making this pro- 
 vision for the rapid improvement of the new States, it appears difficult to 
 controvert either the justice or the policy of the claim which the old States 
 may advance. To the Legislature of Maryland, the other States are in- 
 debted for the manner in which this subject has been exhibited to public 
 view. - , 
 
 If this fund should be obtained, there appears to me no mode in which 
 it can be invested, superior to that of making it a part of the permanent 
 capital of this Bank. It is granted for a perpetual object ; it ought not 
 therefore to be employed for temporary purpos^es. It ought to be rendered 
 productive, that the purposes of the appropriation may be steadily and per- 
 manently accomplished, without impairing its original amount. It might, 
 in this manner, relieve the treasury from a great portion, if not the whole 
 of that sum which is annually and liberally granted for the support of Free 
 Schools, and of the College ; and if, as it may be realized, this fund should 
 be set apart and added to the capital of the Bank, the income arising from 
 it may be solemnly pledged and appropriated to its legitimate uses.. 
 
 3d. The third source from whence the funds of fie State may be in- 
 creased, may be derived from the claims which this State has on the United 
 States, for services performed during the late war. These claims are al- 
 ready, in a great measure, adjusted, and paid ; and there can be no doubt 
 that, together with the lands in Charleston, on which the lines are built, 
 they will realise at least $200,000. This sum can, at the pleasure of the 
 
398 ANNUAL REPORTS OF 
 
 Legislature, be added to the capital of the Bank, or may be employed on 
 its internal improvements. 
 
 4th. The fourth source of increased capital, may require more considera- 
 tion ; when the Legislature issued, last winter, stock to the amount of $800 - 
 000, it made no regular provision for its final redemption, A resolution 
 of the Legislature authorized and required the President and Pirectors 
 of the Bank to purchase annually of this stock, to the amount of $50,000, 
 provided it could be obtained at or under its nominal value. These in- 
 structions will probably prove nugatory. During peace, stock well secured, 
 and bearing an interest of six per cent, will generally command a price 
 above par ; ana if the Legislature should order, unconditionally, that stock 
 to the value of $50,000, should annually be purchased, this determination 
 might expose the State to much imposition. The dealers in stock are a 
 peculiarly quick-sighted race, and if the order is peremptory, it must be 
 obeyed, even if stock should be artificially raised to double its nominal 
 value ; and when the stock should be held by a few individuals or monied 
 institutions, the price could be fixed by concert, and at pleasure. It ap- 
 pears to me far more correct, to order that, in the first place, the interest 
 of the stock should be paid annually, out of the nett profits of the Bank ^ 
 that, in the next place, the residue of those profits should be added to the 
 capital of the Bank ; that this fund should be pledged for the final redemp- 
 tion of the debt, and that the Directors should be authorized to employ it 
 for this purpose, whenever the stock of the State can be redeemed, or pur- 
 chased at par. There can be no doubt that if the debt of the State be not 
 greatly increased, this fund, thus invested, will, before the expiration of 
 twenty years, be amply sufficient for its total extinguishment ; and in the 
 mean time, the State' will derive the double advantage of having this fund 
 actively employed, and of increasing gradually the banking capital of the 
 State. 
 
 The original provision of the charter, intended to secure the gradual in- 
 crease of the capital of this Bank, by adding to it annually the surplus re- 
 maining in the Treasury, was repealed two years ago, to prevent it from 
 reaching and affecting the funds provided for internal improvenient. But 
 it would have been easy, without this measure, to have guarded against such 
 contingencies. Sums raised, either by taxes or by loans, for specific pur- 
 poses, might have been kept separate in the Treasury, as a distinct fund, 
 and have been applied to their specific objects. If the capital of- the Bank 
 could have been permitted insensibly to increase to the amount of three, 
 four, or five millions of dollars, it is easy to perceive how valuable a fund 
 the State would have held in its possession. A fund sufficient, either to 
 supercede altogether the necessity of taxation, or to allow annually, with- 
 out any inconvenience, large appropriations for every object to which wis^ 
 dom, liberality, and patriotism, could direct the attention of our country. 
 
 STEPHIJN ELLIOTT, President 
 of the Bank of the State of South- Carolina, 
 
 26th November, 1821. 
 
 i 
 
PRESIDENT AND DIRECTORS. 
 
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400 ANNUAL REPORTS OF 
 
 (1822.) 
 
 To the Speaker and Members of the House of Representatives of the State 
 of South Carolina : 
 
 The President and Directors of the Bank of the State of South-Carolina, 
 respectfully report : 
 
 That on the of November they carried to the credit of the Sink- 
 ing Fund, for the redemption of the 6 per cent, stock of the State, the 
 sum of $120,072 18 — being the nett proceeds qf the Bank for the year 
 ending on the 1st of October, 1822, after deducting the losses which had 
 occurred during the year. 
 
 Out of this fund, which will be annually increased by the profits of the 
 Bank, will be paid, in pursuance of the "Act to provide a Sinking Fund 
 for the redemption of the 6 per cent. Stock of the State," the interest which 
 will hereafter become due on the debt of the State, and provision be made 
 for the redemption of the principal, whenever it becomes due, or can be 
 purchased at its nominal value. 
 
 In compliance with the Act of the Legislature, of the 16th of December, 
 1818, and the wish of the inhabitants of the large district of country, ar- 
 rangements have been made during the present year, to establish a Branch 
 of this Bank at Camden ; and although the commencement of business at 
 that place has been retarded by accidental occurrences, we hope thet it will 
 now soon be in operation. 
 
 S. ELLIOTT, President. 
 
 (1823.) 
 
 To the Speaker aivd Members of the House of Representatives of the State 
 of South CarolinOr: 
 
 The President and Directors of the Bank of the State of South Carolina, 
 respectfully report : 
 
 That on the 14th of October, 1823, they transferred to the credit of the 
 Sinking Fund of the State of South Carolina, the sum of one hundred and 
 thirteen thousand two hundred and seven dollars and sixty-one cents — being 
 the nett profits of the Bank, from the 1st of October, 1822, to the 1st of 
 October, 1823. 
 
 In reviewing the operations of the Bank, the President and Directors 
 deem it proper to remark, that in the progress of their business they have 
 been obliged to feel, with great regret, their inability to supply the Branch- 
 es which they have established at -the suggestion of the Legislature, with 
 funds, as rapidly and as extensively as the increasing wealth and prosper- 
 ity of our country appear to require them. No doubt exists in their minds, 
 from the evidence which their own books afibrd,,and from the opinions of 
 almost every individual acquainted with the business of the country, that 
 the capital now employed at Columbia, and at Camden, and perhaps even 
 that employed in Charleston, and in Georgetown, could at least be doubled,, 
 with advantage to the institution over which they preside, and to the busi- 
 ness of those places, and of the surrounding country. And at Cheraw, to 
 which their attention has been directed by the wishes of the . inhabitants, 
 and by the Acts of the Legislature itself, and where the foundations of an 
 extensive commerce have already been laid, they have not been able to 
 
PRESIDENT AND DIRECTORS. 401 
 
 establish a Branch, because they could not have afforded it a capital more 
 than sufficient to defray its necessary expenses. No one who views the 
 rise and increase of the towns in the interior of our country, can hesitate to 
 acknowledge their importance ; no one can be unmindful of the inte^ourse 
 which they create . between different sections of the State; of the value 
 which they communicate to many objects which would otherwise be use- 
 less ; of the the extension which they afford to commercial enterprize ; and 
 of the impulse and value which they give, both directly and indirectly, to 
 agricultural exertions. It is wise in a country to foster their growth by 
 every moderate and rational aid, and will be highly important to connect 
 them all intimately with the commercial capital of the State. Whether 
 this institution, by such an increase of its capital, as will enable it to meet 
 the increasing demands of the country, shall become that connecting chain, 
 it will remain for the wisdom of the Legislature to determine. 
 
 One opinion the President and Directors of this Bank do not hesitate to 
 express. The commercial towns in the interior of our State, will derive 
 many advantages from the extension of their monied capitals, and from the 
 facilities which the operations of a Bank afford to every pecuniary trans- 
 action. If the Legislature should deem it inexpedient to increase the cap- 
 ital of the Bank of the State, it would become almost a duty, to permit the 
 inhabitants of those towns to employ their own capital in banking opera- 
 tions, for their common benefit. We should regret that this institution, 
 which was intended to promote, should in any manner be employed to re- 
 tard the improvement of our country ; and however important and profita- 
 ble it might be to our operations, to have exclusively the business of a great 
 portion of the State, we should consider it a misfortune, if to that profit 
 more important interests should be sacrificed, or even endangered. 
 
 One other subject, the President and Directors beg leave to submit to 
 the consideration of the Legislature : A great anxiety must necessarily 
 be felt throughout the country, respecting the operations and condition of 
 this institution. Perhaps no statements or reports from the Board itself, 
 however fully or carefully drawn up, can at all times give entire satisfac- 
 tion. The Legislature has once appointed a Joint Committee to examine 
 the books and business of the ^ank, and no inconvenience resulted from 
 this measure. To the Directors of the institution it was a subject of much 
 gratification. They, therefore, take the liberty of suggesting to the Legis- 
 lature, the proprierty and policy of making this ^n established custom, an^ 
 of appointiiig at each session, a Joint Cimmittee of both branches of the 
 Legislature, to inspect the books, and examine the operations of the Bank. 
 It is unnecessary tQ mention how efficacious such a measure might prove, 
 in detecting at an early period, or perhaps even of preventing an aberration 
 in the management of its affairs ; or, on the other hand, the great impor- 
 tance of preserving the character of the institution ; and while its funds 
 are prudently and carefully administered, of securing to it that public con- 
 fidence, from which it has hitherto derived its most essential advantage. 
 Signed by order of the Board : 
 
 STEPHEN ELLIOTT, P/esw^e?i^. 
 
 Charleston, 21 st November 1823. 
 
 51 
 
402 ANNUAL REPORTS OF 
 
 (1826.*) 
 
 To the Honorable the Speaker and Members of the House of Representatives 
 of the State of South Carolina : 
 
 The President and Directors of the Bank of the State of South-Carolina, 
 respectfully report : 
 
 That the profits of the Bank, for the year closing on the 1st of October, 
 1826, amounts to one hundred and fifteen thousand one hundred and 
 eighty-four dollars and seventy-two cents : That out of this sum, they de- 
 posited, on the 3 1st of October, to the credit of the Sinking Fund, seventy 
 thousand five hundred dollars ; a sum sufiicient to meet, for the ensuing 
 year, the interest on the debt of the State. The balance has been applied 
 to replace, in part, those debts which were reported to the Legislature at 
 its last session, by the Committee appointed to investigate the transactions 
 of the Bank, as bad or doubtful, and which had principally accrued from 
 the commercial vicissitudes of the past year. And although the business of 
 the Bank must necessarily be diminished, in the ensuing year, because no 
 private Bank in the Southern States can now keep in circulation the paper 
 which it has been accustomed to issue, we still hope that at the close of 
 another year, we shall be able to clear oiF these losses entirely, without ceas- 
 ing in the meanwhile, to pay for the State the interest on a debt larger 
 than the real capital of the Bank. 
 
 With this report is transmitted a statement of the Sinking Fund, up to 
 the 1st of October of the present year. 
 
 All which is respectfully submitted : 
 
 STEPHEN ELLIOTT, President 
 
 (1827.) 
 No. I. 
 
 To the Hcmorahle the speaker and Members of the House of R^rresento^ives 
 of the State of South Carolina : 
 
 The President and Directors of the Bank of the State of South Carolina, 
 respectfully report : 
 
 That the profits of the Bank for the last fiscal year amounted to the sum 
 of $122,693 81 cents. That of this sum, $75,000 were carried to the 
 Sinking Fund, to meet the interest due on the public debt of the State ; 
 and the balance has been applied according to the intimation in our last 
 annual report, to clear from our books all of the bad and doubtful debts, 
 which had been accumulating for some years. 
 
 This has been nearly, if not entirely, accomplished ; and we have the sat- 
 isfaction to add, that in two years, pursuing the recommendation of the last 
 Committee of the Legislature, this object has been effected, and the Bank 
 in the mean time has continued to pay for the State the interest on a debt 
 larger than its own capital. By this means, it has prevented the stock 
 which has been created to carry on the system of internal improvement 
 from becoming burthensome to the public. 
 
 ♦The Reports of 1824 and 1825 have not been found ; nor those of 1828 and 1829. U 
 obtained before the completion of the work, they will be printed in an Appendix. 
 
PRESIDENT AND DIRECTORS. 403 
 
 The statement of the Sinking Fund, and the other statements necessary 
 to exhibit an entire view of the state and condition of the Bank, have been 
 placed in the hands of the Committee of the Legislature appointed to ex- 
 amine the transactions of this Institution, by whom they will be duly pre- 
 sented to your honorable body. 
 
 All which is respectfully submitted. 
 
 STEPHEN ELLIOTT, President. 
 
 Charleston. 16th November. 1827, 
 
 No. II. 
 
 To the Honorable the Speaker and Members of the House of Representatives 
 of tJie State of South Carolina : . 
 
 The President and Directors of the Bank of the.State of South Carolina, 
 respectfully report: 
 
 That in pursuance of the provisions of the Act passed on the 20th day 
 of December last, " to admit and incorporate private stockholders in the 
 Bank of the State of South Carolina," books were opened on the 1st day of 
 February last, at Charleston, Georgetown, Cheraw, Camden, Columbia, 
 Hamburg and Beaufort, for the purpose of receiving subscriptions from the 
 individuals who were disposed to connect themselves with this institution, 
 and become proprietors of new stock created by the said Act ; and as many 
 doubts had been expressed, both in public and private, as to the nature" of 
 the principles and the operation of the conditions under which individuals 
 would enter into co-partnership, arid whether, by the terms offered in the 
 Act, the union would be fair and beneficial to. the private stockholders; 
 the following letter from the President and Directors of the Bank, upon the 
 points which presented most difficulty, was addressed to the Commissioners 
 jaomiriated by the Legislature to open books at these several places ; with 
 a request that it might be communicated to every jperson wishing to under- 
 stand the position in which stockholders would be placed. 
 
 Charleston, 25th January, 1827. 
 
 Gentlemen : — As persons who wish to subscribe to the Stock proposed 
 to be annexed to the Bank of the State of South-Carolina, may "wish for 
 some information, particularly as to the mode in which it is contemplated 
 to form an union of the two interests, and a fair valuation of the capital 
 belonging to the State, we have thought it might not be improper to pre- 
 sent you with the following observations : 
 
 The only difficulties we can foresee in our new arrangements will be the 
 adjustment of the S/^c/c of the State, with the private stockholders — on this 
 point our present view is to make, on the part of the State, two proposi- 
 tions, one of which we think the private Stockholders will readily accede 
 to. The first is, that the Stockholders shall receive the business of the 
 Bank as it now stands, with its capital estimated at $ 1 ,200,000, and its debts 
 and credits, good, bad and indifferent ; increasing its future business by the 
 increase of capital subscribed, and making no other alteration, even in its 
 Books, than by dividing its profits among a greater number of proprietors. 
 
 The disadvantages to the private Stockholders of this proposition, are, 
 that they will be obliged to bear a portion of the losses on the debts already 
 created. The advantages are, first, that they will be saved the expenses of 
 
404 ANNUAL KEPORTS OF 
 
 an outfit, which rarely costs Banks less (including Bank bills, vaults, and 
 a variety of minor items) than from 40 to 70,000 dollars, and banking- 
 house, ad libitum 5 these are all provided, as far as our present business and 
 branches extend. 2ndly, that the arrearages of interest or notes under 
 protest and in suit, which cannot at present be less than $35,000 on good 
 notes, will pass over to the joint concern — and 3dly, That the profit arising 
 from the wear and tear of our bills, which considering the great number and 
 amount of small bills that we have had in circulation, cannot be less than 
 from $70,000 to $ 1 00,000, will also become a common benefit. These three 
 sources of profit, will we hope, treble our bad debts ; (for it must be re- 
 membered, that in October last, we cleared off $44,000,) and this proposi- 
 tion is the one which, were we stockholders, we should accept, for it must 
 also be remembered that this Bank has now between $2,700,000 and 
 $2,800,000, actually invested, which are bearing an interest, and would be 
 producing an income to the company, from the moment of union. - 
 
 If the subscribers, however, should be so cautious as to be unwilling to 
 encounter any risk, whatever may be the prospect of ultimate advantage, 
 we shall propose : 2dly, That they shall receive from all such paper (dis- 
 counted notes) as shall be unquestionably good, (for as money to be profi- 
 table must be invested, it will be an advantage to have a large sum at once 
 well employed,) the amount of which shall be carried to the credit of the 
 State; and shall lay aside the bad and doubtful debts to be collected on 
 account of the State, and carried over to its credit as they shall be collect- 
 ed. If this course should be preferred by the private stockholders, it will 
 then be but fair, as all the risk of these debts will be thrown on the State, 
 that the stockholders should be charged with a proportion of the outfits, 
 and that the arrears of interest, and the profits from the wear and tear of 
 our bills, as far as they have already accrued, shall be reserved to the 
 State — this arrangement will give some trouble, and cause a few more 
 books to be opened than we now keep, but it can be carried into effect 
 without iiny difficulty. 
 
 We are, &c. 
 
 On opening the books, however, as directed by the Act, only 765 shares 
 were subscribed, amounting to $76,500. This was so far^hort of the sum 
 of one million of dollars, which was required by the Act, to give validity 
 to the measure, as to render it doubtful, whether that amount, under exist- 
 ing circumstances, would bo subscribed, and the attempt to obtain subscrip- 
 tions was not renewed. 
 
 It may not be improper in us to bring to the view of the Legislature the 
 causes, as far as they come to our knowledge, which rendered this experi- 
 ment unsuccessful, and the objections that were made to the provisions of 
 the Act, as it was finally adopted. 
 
 It is probable that the subject was not distinctly understood, and there 
 was undoubtedly much personal influence exerted by some who were part- 
 ners in other Banks, to prevent the final, ratification of the charter offered 
 in this Act by the State to individuals. But there were also some ar- 
 rangements in the Act itself, to which distinct and strong objections were 
 rnade. 1st. In the first place, that portion of the 7th section, which em- 
 powers the Legislature to establish branches " wherever, in their wisdom, 
 they njay deem proper," was a source of much dissatisfaction ; it was sup- 
 posed, that this power might, most advantageously, be left to the discretiott 
 
PRESIDENT AND WllECTORS. 405^ 
 
 of the government of the Bank, as the Directors, with a full view of the 
 condition of the Bank, would, perhaps, be the best judges of the time, 
 place and circumstances, which would render the establishment of a new 
 branch advantageous, both to the institution and to the country. It was 
 apprehended that the Legislature might be easily induced, by partial rep- 
 resentations, made, perhaps, by persons who would only regard their own 
 convenience, without considering the interest, either of the State or of the 
 stockholders, to locate branches in situations in which they could not be 
 profitable ; and it was even feared, that under this reserved power, the 
 Legislature, if at any time it should become unfriendly to the institution, 
 might destroy it altogether, by ordering branches to be established at 
 every Court House within the State — or in so many places as totally to 
 absorb all the profits of the institution. 
 
 2dly. An objection was also made to the third clause of the 1st section, 
 by which the State shall, at any time hereafter when it may think proper, 
 have the power of increasing its stare of the capital to two millions of 
 dollars. 
 
 In the original draft of this bill which was presented to the Legislature 
 last session, while this power was given to the, State, the private stockhold- 
 ers had also the privilege of increasing the private stock to three millions 
 of dollars. This latter provision was stricken out, and this circumstance 
 appeared to excite a suspicion that the Legislature might, as soon as a 
 large amount of private funds should be invested in the Bank, increase 
 their own stock, and thus, by the arrangements of the charter, as to the 
 appointment of directors, secure the entire control of the institution. 
 
 However unfounded this suspicion may have been, or may be, it will, 
 perhaps, if the State should deem it expedient to renew the ofier to indi- 
 viduals, be advisable to remove it, by giving again to the private stockhold- 
 ers, the right of increasing their stock to three millions of dollars, if the 
 State should extend its capital to two. Two-fifths of the directors will 
 secure to the State as much influence as it ought, pc rhaps, to possess or 
 exercise, in an institution in which so much private capital shall be in- 
 vested. 
 
 3d. Another objection was made to the right reserved to the State, of 
 withdrawing, after the 1st day of December, 1840, all or any portion of 
 the capital stock owned by the State. 
 
 Upon this point no great stress was placed — all, perhaps, which it might 
 be necessary for the State to stipulate, would be, that if it should at any 
 time after that period, either in part or entirely, withdraw from the insti- 
 tution, it shall only be by a sale of their stock, so that no diminution of 
 the active funds of the Bank shall be made by such separation of interest. 
 4th. Another cause ^ hich operated with great power in preventing sub- 
 scriptions to the Bank, was that clause, which restrained the Legislature 
 from renewing the charter of any private Bank, during the term allotted 
 for the duration of this charter. This rendered every person who was 
 deeply interested in the existing Banks, unfriendly to the Bank of the 
 State in its proposed form, and anxious to prevent subscriptions ; for if the 
 sum of one million of dollars had been subscribed, the Act would have 
 become absolute, and the contract between the State and the individual 
 stockholders, been on this point conclusive and irrevocable. 
 
 It may, perhaps, deserve to be noticed, as a proof of the high character 
 and feeling of our community, that while this provision of the lie^ charter 
 
406 ANNUAL KEPOKTS 01^ 
 
 secured such advantages to those wlio, availing themselves of the offer of 
 the Legislature, should come . forward, and, by subscribing, secure these 
 almost unexampled privileges, the impression that these benefits were to 
 be obtained by an act operating against the interests of other individuals 
 and other institutions, induced so many to decline subscribing. 
 
 Of the expediency or inexpediency, as an abstract question, of renewing 
 the charters of the private Banks, w4ien they shall severally expire, it does 
 not become us to express an opinion ; we would merely suggest that what- 
 ever may be the opinion of the Legislature at the present moment, it may 
 be prudent to leave this subject open for consideration, until the question, 
 by the expiration of the charters now in existence, shall necessarily arise. 
 
 But while these different causes acted with more or less efficacy in pre- 
 venting subscriptions, the provision which actually defeated the measure was 
 the proviso in the 7th clause of the 1 st section of the act, by which it was 
 ordained, that this act shall not go into operation, unless stock to the 
 amount of one million of dollars shall be subscribed. 
 
 By this restriction, a means of defeating the measure was given, and 
 some who were prepared to subscribe largely, held back, with a wish and 
 expectation, that, by so doing, the act would necessarily be referred back to 
 the Legislature for consideration. 
 
 Perhaps this may be a fortunate result: but if the Legislature should, 
 after re considering this question, determine again to propose an union with 
 private stockholders, whatever, in their wisdom, they may^think proper to 
 decide on the other questions submitted to their revisal, we think this pro- 
 vision ought to be omitted. There appears to us no good cause for its in- 
 sertion. If the act had been intended to establish an entirely new Bank, 
 the failure of some small institutions which had been erected in this State, 
 might have made the Legislature hesitate to grant a charter to another with 
 an insufficient capital. But, in the present case, where a Bank actually 
 existed, with an efficient capital of $1,200,000, a gradual increase would, 
 perhaps, have been more prudent and advantageous than a sudden accumu- 
 lation of its active" funds. Two or three hundred thousand dollars, annu- 
 ally, might have been as much as could have been advantageously employed. 
 If there had been no limitation, a large sum would have been certainly sub- 
 scribed — many who were under all circumstances prepared to subscribe, 
 withheld their subscriptions under the persuasion that the sum of one mil- 
 lion of dollars would not be obtained, and an apprehension that the instal- 
 ments actually paid on subscribing, might be retained in the Bank until the 
 meeting of the Legislature. It may be proper to add, that, as soon as this 
 Board received the return of the sums actually subscribed,^nd determined 
 not to re-open the books until the charter should be again submitted to the 
 Legislature, the instalments actually paid in were returned to the subscri- 
 bers. All of the difficulties respecting the apportionment of the capital, 
 and the responsibility and risk of outstanding debts, we considered as re- 
 moved by the offers made in the circular letter contained in this report. — 
 No one, to our knowledge, has ex mined that letter without acknowledging 
 the fairness and equitable principles of the offer on the part of the State. 
 
 If the Legislature, after reviewing this subject, shall deem it expedient 
 again to offer to individuals the privilege of becoming parties in this insti- 
 tution, we think policy would dictate the propriety of making the terms of 
 
PRESIDENT AND DIRECTORS. 407 
 
 union so fair, and even liberal, as to secure the pordial co-operation and effi- 
 cient support of the private Stockholders. 
 
 By order of the Board : 
 
 STEPHEN ELLIOTT, President. ^ 
 Charleston, 16th November, 1827. 
 
 (1830.) 
 
 BANK OF THE STATE OF SOUTH CAROLINA, CHARLES- 
 TON, NOVEMBER, 1830. 
 
 To the Honcyrable the SpeaJcei' and Membos oftJic House of Representatives : 
 
 Gentlemen : — The deeply lamented death of our learned and distin- 
 guished fellow-citizen, Dr. S. Elliott, late presiding officer of this institu- 
 tion, called into exercise the privilege secured to the Board of Directors, 
 under the provisions of the Act incorporating the Bank, of electing a Pres- 
 ident, to fill the vacancy until the next meeting of the Legislature. 
 
 Called by this event to direct the affairs of your Bank, I have, with un- 
 wavering adherence to that policy which I conceived the most salutary, 
 sedulously devoted all my efforts to advance the interests and augment the 
 credit of the institution. To what extent these efforts have been crowned 
 with success, will, it is presumed, be the subject of inquiry through the cus- 
 tomary organs of your Honorable House. For that investigation I am in 
 attendance, and shall so remain until it be accomplished. 
 
 In the short period -wrhich has elapsed since these important duties de- 
 volved on me, it will not be expected that very material changes could have 
 been effected in the general character and interests of the institution. In 
 submitting, however, a statement of our proceedings for the past year, I 
 have peculiar satisfaction in believing that you will perceive results entitled 
 to the favorable consideration of your honorable body. The amount trans- 
 ferred to the Sinking Fund, for the eventual redemption of the five and six 
 per cent, stock, will be found in the accompanying Exhibit. 
 
 This balance was placed to that fund, after deducting the whole amount 
 of losses, actually incurred by the Branches, since they have been in ope- 
 ration ; a measure which for the first time, has received the attention and 
 sanction of the Board of Directors. 
 
 In considering that document, it will appear that the amount of issues 
 is not extended — that a continued and active circulation of its bills has 
 been maintained — that the specie capital has increased. Our balance 
 against the Branch Bank of the United States, in Charleston, sustained 
 and enlarged — a considerable amount of bad debt relieved ; while an effi- 
 cient and healthy action has been continued in every department of ;the in- 
 stitution, its general prospects brightening, and its capacities and means of 
 usefulness further developed and established. 
 
 Whether you will adopt for it a course of operation which shall more 
 generally diffuse the facilities and benefits of the institution to the State 
 at large, by establishing other Branches, or by augmenting the means and 
 enlarging the sphere of usefulness of the offices which have been already 
 organized, are matters for legislative decision. The general augmentation 
 
408 ANNUAL REPORTS OP 
 
 of tlie Sinl^mg Fuiid, and a judicious use and appropriation of the means 
 at the command of the Bank, will enable it, in the course of the current 
 year, to extend its issues to an amount that would essentially subserve the 
 interests of the towns of Hamburg and Cheraw, if, for the present, strictly 
 confined to the commercial operations of those places. Adhering to the 
 policy heretofore pursued by your honorable body, as well as to the sug- 
 gestions of a wise caution, the effort should not, for the present, embrace 
 more than one of those places. The capacity of either of those towns to 
 sustain a Bank, may be judiciously tested by the preliminary measure of 
 constituting a limited agency, guarantiedby a corresponding responsibility 
 and security. Through such a medium, the benefits desired could be more 
 promptly extended, and the advantages of a permanent establishment fully 
 developed. < 
 
 It is my duty to represent to you, that the Town Council of Georgetown 
 have, in their corporate capacity, imposed a tax on the real estate of this 
 Bank. This measure was resisted by the Attorney General, unsuccess- 
 fully, and the decision of the Hon. Judge Bay, which accompanies this re- 
 port,, enabled that corporation to collect the tax. If the Legislature do not 
 interpose to prevent the recurrence of this exercise of power, it will become 
 the interest and duty of every other corporation to enforce it. Other and 
 less important modifications of the laws establishing this Bank, with those 
 having relation to the obligations of its debtors, and their endorsers, may 
 in the course of the investigation appear necessary. Such circumstances 
 as may have transpired, indicating the necessity of your remedial interfer- 
 ence, will be detailed to your Committee. 
 
 In retiring from a station of great responsibility, tendered to me without 
 solicitation on my part, and in discharging the duties of which, I found it 
 incumbent on me to acquire all the information that patient investigation 
 and minute inquiry could elicit, I feel competent, with the aid of documents 
 in my possession, to submit a clear and comprehensive view of the opera- 
 tions of the Bank. I surrender to your honorable body this high trust, 
 conscious of having discharged its duties with fidelity, and desirous only 
 that the confidence inspired by a minute and satisfactory elucidation of the 
 actual condition of the institution, in its several relations to the Legisla- 
 ture, and the community at large, may be accorded. 
 Respectfully submitted : 
 
 THOS. BENNETT. 
 
PRESIDENT AND DIRECTORS 
 
 409 
 
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410 ANNUiVL REP0RT8 OF 
 
 (1831) 
 . To the H.07wi'ahle the House of Representatives : 
 
 In presenting the Annual Account of the Bank, it affords me much 
 satisfaction to be able to say, that the clear profit of the year has been 
 equal to that of any preceding one, and but for the deductions for losses 
 from bad debts, would have been more than the most sanguifie could have 
 expected. 
 
 I feel imperiously called upon to make a more full expose of the affairs 
 of the Bank, than is usual. In doing this, it is not my intention to excite 
 alarm, nor to cast blame on any who have been concerned in the manage- 
 ment of the institution — muth less would I have it supposed that I intend 
 any reflection on the course of (fonduct pursued by the late highly-respected 
 President, and founder of the institution. From what I have learned of 
 the operations of the Bank, from the minutes of tlie Board, and other 
 sources of information, it reflects great credit on his ability, that he was 
 able to support it against the powerful opposition which was made to it in 
 1818 and 1819, d«ring thirteen months of which time, he paid to the 
 Branch Bank of the United States $528,000, besides $50,000 of paper. 
 
 I shall ask lea,ve to call your attention to the different items of the 
 Annual Account, in the order of their importance. The first is the capital ; 
 how this was constituted, you have been fully informed (as I perceive.) by 
 two very elaborate reports ma^e in 1821 and 1827. The first by your 
 distinguished Chief Magistrate, and the second by the H<5n. Thomas S. 
 Grimke. I shall only speak of some of the particulars which constitute 
 this item. You will perceive the sum of $101,400 stated as the value of 
 1,014 shares of the State Bank. It is proper that you should know 
 that this Stock has fallen below par. It could not now be sold for more 
 than $85 on the hundred, and I much doubt if t"hat could be obtained, for 
 the whole of it. I would therefore recommend that we be authorized to 
 dispose of it at convenient seasons, to the best advantage. In estimating 
 the true state of the Bank, the Bank estate, I should think, ought to be 
 put down at its real value. The sum stated m the account, is that whicfi; 
 it cost, but it would not now bring anything like that amount. It consists 
 of a banking house in Charleston, and one in Camden. The item of real 
 estate, consists of houses and lots received in payment, and the sums given 
 for them is the amount stated. But in no instance would any particular 
 piece of property command that amount-; and as to two houses and lots in 
 Camden, there has been a serious loss sustained in the destruction of the 
 houses by fire. 
 
 I shall next call your attention to the item of discounted notes. From 
 this amount is to be deducted about $46,000, held as securities, or con- 
 nected with securities, for notes subsequently discounted for the conveni- 
 ence of the representatives of estates. Besides which, about $240,000 are^ 
 in suit, and under protest, of which a lar^ portion was reported by a coia-j 
 mittee of the Board (raised at my request, to ascertain the state of the 
 Bank when I first went into office,) to be at. least doubtful. Some of thei 
 however, on a subsequent examination,* I am satisfied, are perfectly good,1 
 though suspended for the presejit, either by the interposition of your 
 Honorable Body, or by the difficulty of getting at the property of the 
 debtors, or by the usual obstacle of the law's delay. And as to those which 
 are in Bank operation, and considered perfectly good, there are in some 
 
PRl^SIDENT AND DIRECTORS 4 [ 1 
 
 instances large amounts in the '.ands of a few individuals, depending on 
 their mutual endorsements. On the amount of bonds secured by mort- 
 gage, there may be placed the utmost reliance. There is but one, and 
 that of small amount, which is bad ; and even of that, some part may be 
 received ; and it is worthy of remai»k, that it is the only instance (so far as I 
 have been able to obtain information.) of a loss on the loans thus made. 
 
 On the "debts of a Bank, depend its safety and solvency. It therefore 
 requires a most circumspect and vigilant course of conduct, to secure their 
 payment; and there is no method of doing this effectually, except that of 
 calling for payments at stated periods ; and it is here, that the principal 
 difficulty in conducting the operations" of the Bank lies. The extreme 
 indulgence which has been granted ; the large debts which have been con- 
 tracted, and the great depreciation of property, render it extremely difficult 
 to obtain payments, particularly at a moment when most required. And 
 it is utterly impossible to conduct the operations of a Bank, in a proper 
 and advantageous manner, without prompt and regular returns. The ac- 
 commodations which have been afforded to the different sections of the 
 country, through our branches, have been carried to the extreme of safety, 
 and it has become in dispenearbly necessaTy to put a limit to them. The 
 mother Bank has to bear the whole burthen of redeeming our, bills. Before 
 I speak of the issues of the Bank, I would ask leave, briefly to state my 
 course of operation since I have presided" over the institution. I am 
 induced to pursue this course, from the reliance which seems to be placed 
 on the ability of the Bank to pay the public debt, as it falls due. 
 
 Before I left Columbia, I possessed myself of the views of the Committee 
 of Ways and Means, and the report of the President pro tern, with his 
 views, as far as they were laid before the committee ; and I entered on the 
 duties of my office, conceiving that a course had been suggested to me by 
 the committee, who, t had no doubt, had taken a very full and correct 
 view of the subject. I set about to impart to the Institution a more active 
 ■operation, particularly in the mercantile business, and found no difficulty 
 in increasing the usual discounts, endeavoring, as far as was practicable, to 
 establish in all loans the true Bank principle of speedy payments, and 
 using all my influence to obtain the aid of the branched. And I do tiot 
 hesitate to say, that if the operations of the business season be examined, 
 they will be found to have been unexceptionable as to safety, and unex- 
 ampled, as to profit. But my surprise and disappointment cannot be 
 described, at finding how difficult it was to call in payments,, even on the 
 operation paper which had been tong in Bank. . For before I went into 
 office, I had always supposed that Bank debts must be- paid, (by those who 
 had property,) whenever demanded, or tliat at all events the instances to 
 the contrary were very rare. 
 
 I found in a shorf time, from the operations of the Bank, and the calls 
 made by the U. S. Bank, that the lowest amount of issues which had been 
 proposed, exceeded the safe limit ; and relying with great confidence on 
 the ability and experience of my distinguished predecessor, (Mr. Elliott,) 
 I deemed it advisable to proceed very slowly, and ultimately to stop far 
 short of the sum proposed, (^300,000, although at different periods we 
 destroyed large amounts of mutilated money bills. I am aware, that there 
 is a great difference of opinion on this, as well as on many other points 
 connected with the subject of banking. But pursuing the course of the 
 most prudent and judicious writers, as well as that pointed out by experi- 
 
412 ANNUAL REPORTS OF 
 
 ence, and I may add, rendered indispensably necessary, by the existing 
 state of things in this community, I think the issue should never exceed 
 the amount of capital ; and it is said by Mr. Gallatin, should not amount to 
 that : and that he thinks a positive restriction on the issue of notes, so that 
 they never should exceed two-thirds of the capital, would be highly bene- 
 ficial ; and I take it to be a conceded point, that the debts should never be 
 permitted to exceed double the amount, and then should be always of such 
 description as to be readily called in, to meet any unexpected emergency. 
 And here I would beg leave, with the most profound respect and deference, 
 and solely with a view to advance the interests of the institution, to sug- 
 gest to your Honorable ]pody, that I think it will be found most expedient 
 to leave to those to whom you commit the management of the institution, 
 the entire regulation of all its operations. One of the most obvious rea- 
 sons for this suggestion, I am sure, will be sufficient ; that it is utterly im- 
 possible to decide on the propriety of any course of conduct, without a 
 full knowledge of all the operations of a Bank, and that even with this, 
 as far as it can be imparted, a change of circumstances, suddenly occurring, 
 often renders a change of operations necessary. I deem it inexpedient to 
 be more explicit on this subject ; but there are many additional reasons, as 
 well as facts, which can be mentioned in support of the suggestion. 
 
 As to the issue of change bills, (those under the denomination of a dol- 
 lar,) we had determined to dispense with the use of the two smaller de- 
 nominations, (12^ and 65 cents,) and to apply the new issue of twenty-five 
 and fifty cent bills to the use of the country, entirely ; there being a great 
 abundance of silver change in town ; and we think that when the present 
 issue is exhausted, no more of them should be issued. There is an item 
 of $5,180 on the credit side of our account, which, I am informed, origina- 
 ted in the receipt of the bills of the Bank established at Cheraw. As this 
 was a loss induced by an Act of the Legislature, I would suggest the pro- 
 priety of ordering the Treasurer to give a credit for it in the account, be- 
 tween the State and the Bankj so that in future it may not encumber the 
 annual account. 
 
 In pursuance of the authority given to the Bank, at the last session, we 
 have established an Agency at Hamburg ; although the business of that 
 place at present does not authorize the establishment of a branch, yet I am 
 persuaded that some advantage will be derived from the agency. About 
 one-third of the business of the place is conducted through agents in 
 Charleston, and I think more of it will find its way to that place. The 
 whole of that section of our State which lies on or near the Savannah river, 
 is supplied with Georgia bills ; and great complaints were made for the 
 want of our money ; in this point of view, it will, 1 think, be also beneficial. 
 
 It may be expected that I should say something at to the future pros- 
 pects of the Bank, as connected with the subject of the payment of the 
 public debt. And I should, without hesitation, say that the Legislature 
 might calculate on the aid of the Bank to the full extent of seven per cent, 
 on its available fund, but for the all-controlling power of the United States 
 Bank : all calculations as to the correct principles on which a Bank should 
 be conducted, sink into utter insignificance when placed in comparison 
 with the annihilating power of this tremendous engine. . I hesitate not to 
 say, that it can control and circumscribe the operations of any Bank in the 
 State, however limited its issue, or well conducted its operations. It pos- 
 sesses a direct control over the operations of individuals. It says to one. 
 
 I 
 
PRESIDENT AND DIRECTORS. 413 
 
 do this, and he does it ; and to another, abstain from this, and he oheys. — 
 That tiiis may not be considered as the idle speculation of one not suffi- 
 ciently experienced to form a correct opinion, I beg leave to refer to the 
 report made by my distinguished predecessor, in the year 1819, since which, 
 it is not to be presumed, that a successful and uncontrolled course of ope- 
 ration, has in any degi-ee lessened the power which he so clearly proves 
 that it possessed. " In the ordinary routine of business, in cities where 
 many Banks are located, it will commonly happen that each Bank will re- 
 ceive the paper of the other institutions, nearly in proportion. to the busi- 
 ness they mutually transact." They may keep accounts, or discount on 
 each other's paper — if one manifest a spirit of hostility, it is controlled by 
 the other. " But an entirely new case occurs, when a Bank, without doing^ 
 business, becomes, from extraneous causes, tEe depository of the circula- 
 ting currency of the country; or at least becomes a channel through which 
 all of the money of the country must flow. When such an institution 
 chooses to act with hostility ; when it requires that all or a great proportion 
 of that paper, which is constantly and necessarily passing through its cof- 
 fers, shall be immediately redeemed, no prudence can guard Banks differ- 
 ently situated, against such a pressure — no exertion enable them to sup- 
 port its continued operation. To suspend business, totally, and withdraw 
 its paper from circulation, is the only system which can then place any 
 Bank in a state of security." 
 
 .''In this community, the Bank of the United States has no paper, (we 
 may now say very little.) in circulation. All of the duties, or taxes, or 
 debts due to the National Government, must, therefore, as long as those 
 debts, or taxes, or duties continue to be collected, be paid into the Bank in 
 the bills of the local institutionf? ; npt because those institutions have issued 
 too much paper ; not because they have overtraded ; not because they have 
 been imprudent ; but because there is no other money in circulation ; and 
 under the present, system, this nnist continue to be the case, until their 
 last dollar is actually withdrawn. . And if a Bank, like' that of the State of 
 South Carolina, has been formed for the public benefit, and has been avow- 
 edly destined to relieve the distresses of our fellow-citizens, in moments like 
 the present — if such a Bank should procrastinate the time of calling in its 
 paper; if.it should delay to the last possible hour, the pressure which such 
 a measure would necessarily occasion ; if, unmin-dful of its own immediate 
 interest, it should endeavor to check or avert the evil which was overwhelm- 
 ing the community, it might appear af last to have a great deal of paper in 
 circulation, because its paper would form the only currency which the pub- 
 lic would have to use. Against such a Bank it will then become easy to 
 accumulate balances ;" and then he mentions thecircumstances alluded to 
 in the beginning of this report. "If the Bank' of the United States de- 
 pended entirely on its own resources, great as its capital is, and great as are 
 its advantages, there might be some chance for competition ; but, standing 
 as it does in our community, the reservoir and depository of the national 
 wealth ; receiving into its vaults the overflowing tide of public revenue ; 
 acquiring, in this manner, nenrly all of the circulating paper of the local 
 Banks : its operations against them, when hostile, are irresistible. The 
 Bank of the United States derives its principal, if riot its only means of an- 
 noyance, from the resources of the Government. In places, therefore, 
 j^ where little or no revenue is directly paid to the Government, it can ac- 
 quire no ascendency over the local Banks. In places where larger portions 
 
4t4 ANNUAL KEPORTS OF 
 
 of the revenue are received, if great expenditures are made by the United 
 States, the same result will ensue ; no balances against the State Banks 
 can accumulate, because the revenue, as fast as it may be collected is em- 
 ployed in the service of the Government. It is only, in places where a large 
 part of the revenue is received, and. little or nothing expended, (as in our 
 
 State,) that the fidl and ruinous effects of this system Can be exhibited. 
 
 In. such places its influence and control are absolute and unlimited. There 
 is one view of the subject which, however unpleasant, it is impossible to 
 overlook. Wherever a Branch of the Bank of the United States is estab 
 lished, it immediately becomes an instrument by which all other' monied in- 
 stitutions are and must be regulated. At its pleasure, they transact' or 
 suspend business ; and at its decrees, the commerce of any-city or local 
 district can be interrupted or paralized, or totally destroyed. It wields in 
 truth, a power which the Government of the United States itself cannot 
 exercise and does not possess. , The laws of the United States must be en- 
 acted publicly, and mu&t have an. universal and uniform operation-; the 
 decrees of the Bank are passed in privac}', and are only known by their 
 effects. Decisions which may affect every pecuniary transaction of a country, 
 may be made in silence, and execu4:ed almost in secrecy. They would at 
 least only be known, and then but partially, at the, moment of execution. 
 A community liiay feel their effects, may find itself involved in distress., and 
 ruip, without being able to trace distinctly the origin or .extent of the ope- 
 rating cause. On the whole, it is by the resources of the nation that we 
 are overpowered ; it is by the arm of Government that we are oppressed ; 
 and it may merit some inquiry whether the arm of Government ought to 
 be so employed." The recent avowal of Mr. Biddle, confirms this opinion 
 of Mr. Elliott. I close these remarks on the power of- this institution, 
 with this single observation : That if this was purely a national institution ; 
 if the profits of it went into the coffers of the General Government, our pa- 
 triotism might induce us to submit ; but wheji it is recollected that it is in 
 fact the establishment of a 7iionied Aristocracy;^ that a few individuals 
 reap the greater part of the profit, and direct its operation ; that they can 
 and do control tlie money concerns of the country, and the acts of all who 
 are engaged in them, it should excite the indignation of every genuine lover 
 of liberty, and. call forth the united opposition of the people of the differ- 
 ent States. ' • ■ 
 
 But it is now some years since the United State's Bank has exercised its 
 full power in this State, and not until lately even attempted to create a 
 balance against us. It is, therefore, possible, that we may be permitted to 
 participate to some extent in the business of the country. In order, how- 
 ever, to' make the best preparation for the payment of the public debt, I 
 would submit the propriety of authorizing tliB President and Directors to 
 purchase any safe stock, with the amount appropriated to the Sinking Fund, 
 as occasion may offer. - 
 
 By an Act of the Legislature, passed in -, it is made the duty of 
 
 the President of the Bank, to countersign all transfers of stock. To ail 
 who are acquainted with the nature of this business, the urgency of the 
 parties is well known; I am by this, often compelled to leave the Bank, 
 and go to the Treasurer's office, where the books are kept, to discharge this 
 duty. I need not say to the Legislature, that I am willing to perform any 
 duty, which they have or may think proper to prescribe ; but it must be 
 obvious that this duty clashes with the more important duties which T am • 
 
I 
 
 PRESIDENT AND DIRECTORS. 415 
 
 required to perform in the Bank. In the Bank of the United States the 
 whole business of transfer is conducted in the Bank : and it may very 
 easily, be so done in our Bank, with the number of officers we now have. — 
 But if it should be deemed inexpedient to adopt this course, I would re- 
 spectfully request that the duty be imposed on some other public officer. 
 
 I shall ask leave, through your Committee, to propose some regulations 
 as to the internal police of the Bank, which I deem important to its good 
 government. , ' 
 
 Should I have omitted anything in this report, which was expected-of me, 
 I must throw myself on the well known liberality of the Legislature, plead- 
 ing as an excuse, that I am young in office, and holding myself ready to 
 make any other or further communication which may be required. 
 
 All which is respectly submitted, by 
 
 C. J. COLCOCK, 
 President of the Bank of the State of Smith CaroU'na. 
 
416 
 
 ANNUAL EEPORTS OF 
 
 
 
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 PRESIDENT AND DIliEOTOllS. 417 
 
 (1832.) 
 To the Honorable the House of Representatives. 
 
 I herewith present for your information, tlie annual account, by which it 
 will be seen, that a profit equal to that of the last year, has been received, 
 after a considerable deduction for losses by bad debts. The profit is equal 
 to 8 per cent., including the Sinking Fund with the capital. Very con- 
 siderable sums have been received from the amount of suspended debts, 
 though a large amount still remains unproductive. I have purchased du- 
 ring the year, the sum of $71,405 12 of stock, but have not been able to 
 dispose of any of that which it was recommended should be sold. It gives 
 me pleasure to be able to state that not a bad debt has been made since 
 my administration, thus far. In looking forward to the operations of 
 another year, I am not permitted to indulge the hope, or to hold out the 
 expectation to your Honorable Body, that I shall be able to carry them on 
 so successfully as heretofore. No Bank, it is believed, in the State, ex- 
 cept our own, and the United States' Branch, makes more than 6 percent.; 
 and the increased competition of the new Bank which has been recently 
 chartered, and that of those re-incorporated, whose privileges have been 
 greatly extended, must, as a matter of course, when added to the overwhelm- 
 ing influence and control of the United States' Bank, greatly diminish our 
 operations, and consequently our profits. 
 
 The cheering prospect, however, of being released from the controlling 
 influence of the tJnited States' Bank, and the almost certain prospect of a 
 speedy release from the other unjust and unconstitutional oppressions un- 
 der which we have long groaned, and to which we have but too tamely sub- 
 mitted, induce me to hope that 1 shall yet be able to make the institution 
 as profitable as any other Bank not possessing greater advantages. 
 
 I shall take occasion to communicate to your Honorable Body such other 
 matters as may be necessary to be made known to you, but not proper to 
 be stated in this report. 
 
 All which is respectfully submit ted, &c., &c. 
 
 C. J. COLCOCK, President. 
 
 53 
 
418 
 
 ANNUAL REPORTS OF 
 
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PRESIDENT AND DIRECTORS. 419 
 
 (1833) 
 
 To the Honorable the Prcsideut and Members of the Senate of the State 
 of South- Carolina : 
 
 Gentlemen: — In presenting my Annual Account, it affords me great 
 pleasure to be enabled to inform you that the fiscal affairs of the State have 
 not bieen in a more flourishing condition within my recollection. 
 
 The gloomy prospect which was presented to us at the commencement of 
 the year forbade my holding out any expectation of being able to realize 
 the same profit from the Bank that was done during the last fiscal year. 
 But the exertions which have been made to meet the large expenditures 
 which circumstances rendered necessary, to preserve the credit of the State, 
 and to carry on successfully the operations of the Bank^ have been blessed 
 by a kind and overruling Providence ; and I am again enabled to carry to 
 the credit of the Sinking Fund, the sum of one hundred and twenty thou- 
 sand dollars, ($120,000,) besides paying the premium on the purchase of 
 seventy-two thousand, four hundred and seventy-six dollars, sixty-nine cent3 
 ($72,476 69-100) stock, and carrying to the profit and loss account, nine- 
 teen thousand seven hundred and sixty-four dollars, thirty-three cents, 
 ($19,764 33-100,) so that the gross amount of profit for the year is one 
 hundred and fifty-one thousand and three dollars fi,fty-two cents, ($151,- 
 003 52-100,) more. I can confidently assert, than ever was made in any 
 antecedent year, since the establishment of the Bank, (beyond the ex- 
 penses of the Bank.) I am also waranted in stating that not a dollar has 
 yet been lost to the Bank, in any debt contracted since my coming into, 
 oflSice. This of course cannot be expected to continue always, but it is, I 
 think, the best evidence of the cautious and prudent conduct of the Insti- 
 tution, and I feel confident, that should our exertions continue to be crown- 
 ed with similar success, we shall be enabled (with the aid of ahy surplus 
 revenue of the State,) to meet the payment of the public debt without at 
 all affecting the operations of the Bank. 
 
 Should it be the pleasure of your Honorable Body to continue its opera- 
 tions — and it becomes my duty at this time to bring your attention to the 
 subject of re-chartering the Bank, as the limitation contained in the original 
 charter expires on the first May, 1835. It is therefore necessary that the 
 subject should be taken up at this Session, for if it should be determined 
 by the Legislature not to continue the Bank, it must be obvious that it 
 should be known to the community as early as possible — and also that prop- 
 er arrangements should be made for winding up its affairs. It is not my 
 duty, nor my inclination, to obtrude any of my views on the subject of re- 
 chartering the Bank, or paying off the public debt .but such views as, have 
 presented themselves to me in discharge of my official duties, I am at all 
 times ready to communicate to your Honorable- Body, in such manner as 
 you may be pleased to direct. In the event of the Bank's being re-charter- 
 ed, I conceive it my duty to submit to your consideration the propriety 
 of discontinuing the Branch at Georgetown. There is no longer any com- 
 merce in that place, and its contiguity to Charleston, with the facilities now 
 afforded by the mail, enable persons resident there, to make communica- 
 tions to the parent Bank on one day, and to receive an answer on the next. 
 The Planters in that section of the State, generally (it is believed,) send 
 their produce to Charleston, and have Factors in town, who can always ne- 
 gotiate their Bank business. Many of those beyond the District of George- 
 town, who have not this direct and speedy communication with th^ city of 
 
420 ANNUAL REPORTS OF 
 
 Charleston, are as near to the Camden Branch, where they may obtain 
 their loans ; and above all, it has been found impossible to obtain a direc- 
 tion so constituted as to form a Board throughout the year, so that in fact, 
 it is now, during the summer months, no more than an agency. The ex- 
 pense of a Branch could be saved, and an Agent appointed to do all the 
 business which is at all profitable to the Bank. I am aware that objections 
 may be made to this alteration in the arrangement of the Institution. It 
 may be said, that it would be inconvenient to the debtors to renew their 
 notes in Charleston. This difficulty can easily be obviated, by allowing 
 them to renew either in the parent Bank in Charleston, or in the Branch 
 in Camden, or with the Agent at Georgetown, giving to those who would 
 renew in the Bank in Charleston, or the Branch at Camden, a longer time 
 to make their arrangements with proper agents : say six months, or more 
 if necessary. There can be no doubt that a more active employment of the 
 amount now due at that Branch would benefit the Institution, besides the 
 saving in the expenses, and there could not be a more favorable time for the 
 alteration than the present, as the President of the Branch has tendered to 
 us his resignation, finding that the state of his health would not permit 
 him to devote as much of his time to the affairs of the branch, as his high 
 sense of duty dictates to him to be necessary. I beg leave to bring another 
 matter to the view of your Honorable Body. By a resolution passed at the 
 Session of 1827, "The President and Directors of the Bank were instructed 
 to indulge Gren. Sumter during his life time, on his debt to the Bank, free 
 of interest from that time, taking such steps as may be necessary to secure 
 the ultimate payment of said debt." 
 
 This distinguished patriot having paid the debt of nature, the indulgence 
 of course ceases, and it becomes our duty to collect the debt. This would 
 in all probability exhaust the greater part of the estate left by him ; and 
 we have therefore thought it proper, at the request of his representatives, 
 who have paid a year's interest since his death, to postpone acting in this 
 matter until this session, when the directions of your Honorable Body may 
 be obtained. There is another matter of vital importance to the Bank, 
 which it becomes my duty to present to your notice. Mr. Overstreet was 
 some years ago appointed a Director of our Bank, and after borrowing a 
 large sum, failed. Mr. Michael Brown was considered by the community 
 in Charleston as his copartner, and was sued both in Georgia and in this 
 State as such; on some of the notes, and after much and tedious litigation, 
 we succeeded a few Courts past in obtaining judgment against Mr. Brown, 
 and execution was issued to make the money. Mr. Brown has carried up an 
 appeal to the U. S. Court. Had this been a private matter, (such is my 
 opinion on the right of Mr. Brown to appeal,) I would have indemni- 
 fied the Sheriff', and proceeded to make the money. But as I considered 
 it as a matter of public concern, and involving some of the most vexatious 
 and difficult points of dispute between the States and the General Govern- 
 ment, I deemed it most proper to lay the matter before your Honorable 
 Body, and to pursue such directions as you may think proper to give me. 
 
 All of which is respectfully submitted, by 
 
 J. COLCOCK, President. 
 
PRESIDENT AND DIRECTORS. 
 
 421 
 
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422 ANNUAL REPORTS OF 
 
 (1834.) 
 To the Honorable tlie Members oftJie Legislature of Sotfth Carolina. 
 
 In presenting my annual report, it lias been hitherto my boast, that not 
 a dollar had been lost on any debt contracted since I have been in office : 
 but it now becomes my duty to inform you, that shortly after my last 
 report, a most unheard of (and as to amount) a most unexpected calamity 
 befel our . branch at , this place. Five of the commercial liouses of this 
 place, who had been for years in the habit of dealing with our Branch, and 
 who had never before failed to pay up the least of their drafts, at, or soon 
 after, the close of the business season, suddenly, and in the midst of that 
 season, stopped payment or utterly failed, as it was said, to a very great 
 amount. It was not from the want of vigilance or foresight, that the loss 
 occurred, for had it been possible, by any effort of mine, to have warded 
 off the blow, it had never fallen upon us. Soon after the establishment of 
 the Commercial Bank, I foresaw the liability to such imposition, arising 
 from the facility of procuring money, where two rival institutions subsisted 
 in so small a place, and exerted myself to make such arrangements as 
 would secure us from losses of this kind. My efforts were all unsuccessful. 
 As soon, however, as the worst was known, every exertion was made to 
 gave as much as possible, and by a prompt action, aided by the co-operation 
 of a gentleman joined with me by, the other Bank and parties, and that of 
 the President himself, we succeeded in securing from two houses, funds 
 sufficient to pay the full amount due by them. In only one instance is the 
 full extent of our losses clearly ascertained, which is in the case of D. & J. 
 Finn ; the former of whom was a Bank director. Mr. Finn's debt to the 
 Branch was forty-two thousand dollars, ($42,000) and to the other cred- 
 itors, it was two thousand three hundred and sixty -four dollars 68-100, 
 ($2,364 68-100,) and he assigned property and paid in money to the amount 
 of sixteen thousand and ninety-eight dollars 61-100, ($16,098 61-100) the 
 most of which has been received, and he is bound to make the rest availa- 
 ble. On the debt due by Brennan & Co. we have received about fifty 
 cents in the dollar ; and in the case of F. & J. McCuUy, suits have been 
 commenced and are in progress, though hopes are still entertained of a 
 compromise which may yield us sixty cents in the dollar. It will be per- 
 ceived by the accounts rendered, that we have carried to the profit and 
 loss account, to meet these losses, the whole of the profits of the Columbia 
 Branch, amounting to forty-five thousand seven hundred dollars and forty- 
 six cents, which is more than sufficient to cover the ascertained losses on 
 Finn's debt, and the anticipated loss on that of F. & J. McCully. Our 
 prospects of future payments from Brennan & Co. depend much on the 
 amount which we may recover on claims assigned in Alabama — from 
 present prospects we are led to expect some addition to our receipts. If, 
 then, the profits of the Bank for the next year equal those of the present, 
 they will be more than sufficient to reinstate it in its former flourishing 
 condition. 
 
 It affords me some relief, however, to show to you that the gross profits 
 of the Bank exceed those of any former year, and I am thereby enabled to 
 carry to the credit of the Sinking Fund, the sum of one hundred and five 
 thousand two hundred and thirty-three dollars and forty-five cents, certainly ; 
 which is within three thousand dollars of seven per cent, on the whole 
 
r 
 
 PRESIDENT AND DIRECTOKS. 423 
 
 amount of capital and sinking fund in our hands last year. And relying 
 on the well known justice of the Legislature, I trust the further sum of 
 thirteen thousand six hundred and forty-one dollars eighty-nine cents, 
 which they have taken from the Bank for the benefit of individuals, and 
 which must be carried to the credit of the Bank, in some way, to place 
 them on the fair ground on which they ought to stand, will be refunded. 
 
 The sums alluded to, are seven years interest on the debt of General 
 Sumter, $10,780, — and the debt due by the Female Academy at Columbia, 
 twenty-eight hundred and sixty-one dollars 89-100, and interest — both of 
 which were released to the parties by resolutions of the Legislature. 
 
 These debts were the property of the Bank, and must, of course, appear 
 on their books. If taken from the capital of the Bank, given to it by the 
 Legislature, it will, of course, diminish its income by so much the succeed- 
 ing yoar — an event which, I think I may safely say, the Legislature never 
 contemplated in the exercise of their liberality towards these individuals. 
 To deprive the Bank of so much of its profits, without any remuneration 
 or credit, would be doing an injustice to th^ managers of that institution, 
 which I am confident the Legislature never intended. I therefore most 
 respectfully request, as the best mode of adjusting this claim — that the 
 Comptroller be directed by Resolution, to give the Bank a draft on one or 
 other of the Treasurers, for these amounts, which will then be carried to 
 the credit of the sinking fund, and make our annual alppropriation within 
 a small amount of what it has been for the last three years. 
 
 I beg leave to embrace this opportunity, in the most respectful manner, 
 and with the utmost deference, to suggest some considerations on the sub- 
 ject of this interference of the Legislature with the affairs of the Bank, 
 which have made a deep impression on my own mind, and which I think 
 are worthy of the notice of your Honorable body. 
 
 The Bank has been regularly incorporated, and I submit to your con- 
 sideration, whether, (legally speaking) the Legislature has now any control 
 of its funds ; and, I presume, in the original e'stablishment of it as a ^fiscal 
 arrangement, it was intended so to organize the establishment as to prevent 
 that very interfeTence. But there is still another consideration, operating 
 as powerfully to show that the Legislature should not dispose of the funds 
 of the Bank. 
 
 By an Act of the Legislature, the profits of the institution are solemnly 
 pledged to the extinguishment. of the public debt; thus giving to your 
 stock a greater value than that of any stock hitherto issued by this State, 
 from the confidence with which the holders of it are inspired. And I fur- 
 ther submit, whether it is saying too much, that, both in a moral and legal 
 sense, the fund is placed beyond the control of the Legislature for any 
 other purpose, and whether this would not be a sufficient answer to all ap- 
 plicants. It must be obvious, that the officers who manage this fiscal 
 establishment, could not, with propriety, array themselves against the 
 Legislature, and say their Resolutions, disposing of the funds of the Bank, 
 should not be carried into effect — while the compliance with them will 
 operate as a serious loss, if the Bank be not reimbursed in some way ; 
 and in process of time, it might operate to the destruction of the very pur- 
 pose for which it was created. For such precedents will always operate as 
 a wedge, as has already been made to appear by the number and nature 
 of the applications made within a few years past. A sense of duty has 
 induced me to submit these considerations to you, for I feel as sensibly as 
 
424 ANNUAL KEPORTS OF 
 
 the Legislature do, the weight of the public debt, and the indispensable 
 necessity of promptly meeting the payment of it. A difficulty in effecting 
 this object, has been created by the circumstance of so large a portion of 
 it being made redeemable at one period — though there is no doubt that it 
 can be overcome when that period does arrive. It will be observed that 
 our issue has been considerably diminished, and our amount of specie in- 
 creased, since our last annual return, and we have also added to the stabili- 
 ty of the Bank, by the purchase of $8,417 11 worth of stock; and it is 
 our purpose to diminish the issue still further ; for the establishment of 
 new banks in the interior of the State has, (as a matter of course) restricted 
 our operations in that section of country where we formerly occupied the 
 whole ground, and the issue of those institutions necessarily pushes ours 
 out of circulation, and sends it back to us (much of it) through the United 
 States Bank, to our great disadvantage. There never can be any approach 
 to equality in a competition between a public and a private Bank ; so large a 
 portion of the community are directly and individually interested in these 
 Banks, and tliat interest now so well understood and attended to, that the 
 unusual circulation hitherto supported by the circumstance of our furnish- 
 ing by far the larger portion of the whole circulation of the country, and 
 the great credit of the State, can no longer be sustained with a due regard 
 to the safety of the- institution, and the preservation of that high confi- 
 dence hitherto reposed in the State, and so justly merited by the course 
 which has been invariably pursued in all her pecuniary transactions. 
 There is, however, a wide field besides the interior of the State, in which 
 the mother Bank can and has operated, and should the charter of the 
 United States Bank not be renewed, there will be still greater calls on all 
 the other Banks for money — for thati institution has hitherto contributed 
 largely to the supply of the wants of the commercial interests in Charleston. 
 
 As the Bank is now at the commencement of its operation, under the 
 new charter, it may be deemed improper to close this report, without pre- 
 senting a summary view of its principal operations as a fiscal establish- 
 ment. The capital is one million one hundred and fifty-six thousand three 
 hundred and eighteen dollars 48-100 ($1,156,318 48-iOO,) and this com- 
 prises every description of funds that we have received from the State. 
 One object effected by the use of this capital, is to pay annually, (and it 
 has been done for years,) the interest of the public debt, which amounts to 
 eighty-five thousand five hundred dollars, (85,500,) a sum exceeding, by 
 several thousands of dollars, the interest on the fund received from the 
 State. But from the profits of its capital, the Bank not only pays the 
 interest on one million five hundred and fifty thousand dollars ($1,550,000) 
 of the public debt ; it also, from the same source, has accumulated a fund, 
 which, on the close of this fiscal year, amounted to more than four hundred 
 thousand dollars, ($400,000) and which will be hereafter applicable to the 
 payment of the principal of the public debt. In estimating the rate of 
 profit which may be made by the Bank in any one year on the amount of 
 its funds, it may be well to account for the interest on this portion of j 
 them ; but in estimating the benefit which has resulted to the State from 
 the establishment of the institution, the whole of this fund must be placed 
 to its credit, having been first created by it, and now an interest paid on it. 
 
 All of which is respectfully submitted, with the usual accounts. 
 
 C. J. COLCOCK, President. 
 
 Columbia, Dec 1834. 
 
PRESIDENT AND DIRECTORS. 
 
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426 ANNUAL REf^ORTS OF 
 
 (1835.) 
 To the Honm-ohh the Memhers of the Legislature of South Carolina : 
 
 In presenting the annual accounts of the Bank, it affords me no small 
 gratification to be able to state, that the profits of the Bank have far ex- 
 ceeded those of any former year ; and so far as my information or know- 
 ledge enable me to judge, are equal to those of any other Banking Institu- 
 tion of the State. The whole amount of profit, as will be perceived, is 
 $165,628 62. One hundred and twenty thousand dollars is carried to the 
 sinking fund, and the rest to the extinguishment of the unfortunate losses 
 at Columbia, and some old debts in Charleston, which have been for a long 
 time unavailable to the Institution. The issue has been reduced at least 
 $130,000, since my last report, and the amount of specie increased about 
 $250,000. Throughout the whole year, in our transactions with the United 
 States' Bank^ a balance in favor of this Bank has been maintained. I have 
 annexed to the annual accounts, the accounts for the year 1830 ; by a com- 
 parison with which, it will appear that the condition of the Bank has great- 
 ly improved : In that year the profits in Charleston were $28,414 46 
 
 In this year : 96,560 72 
 
 In that year, the whole profit was 113,280 18 
 
 In this-. ^ _ : 165,628 62 
 
 And a comparison of the amount of specie on hand, and of the issue, is 
 equally favorable. It will be observed that the Bond account has been also 
 greatly increased. These debts, when well secured, and in due proportion 
 to the amount of capital, are the^best that can be held, inasmuch as they 
 yield an interest of 7 per cent. They are a great accommodation to the 
 agricultural interest of the State, as there is no other Bank in which such 
 accommodation can be obtained by the planters, and it was originally in- 
 tended that from -this Bank, accommodations of this kind were to be ex- 
 pected. I am aware that objections have been urged against these loans ; 
 but the history of the Bank proves, that in addition to the profit of the 
 Bank on the one hand, and the accommodation to the planter on the other, 
 • less loss has been sustained from "debts of that kind, than from any other ; 
 there being but one solitary instance in which a loss has been sustained, 
 and that not exceeding $500, and even in that case, the land mortgaged is 
 now in the hands of the Bank, though depreciated in the value from that 
 which was aflflxed to it by the Commissioners ; and such is now the prospect 
 of improvement in our State, that it is thought expedient by the Board of 
 .Directors, as well as by myself, to propose to your consideration an amend- 
 ment of the charter, so as to authorize loans on real estate in the cities, by 
 note, on the same principle as loans on stock ; by which means, a man's 
 real estate would enable him to borrow without an endorser. Since a re- 
 charter of the State Bank, on the condition of making up the capital, its 
 stock, as was predicted, has risen rapidly in value, and as soon as it reached 
 that point at which w« were safe in selling, viz : 14 per cent, above par, I 
 brought the subject to the view of the Board of Directors, who agreed with 
 me in the propriety of selling out, and buying stock in the new Bank, for 
 which purpose a Committee of two of the Board were appointed, who, by 
 their attention and active co-operation, procured for the Bank 1,786 shares 
 in the Bank of Charleston, which are divided between the Bank and the 
 .Sinking Fund, the Act of 1832 "Authorizing a purchase for the latter. By 
 
r 
 
 PRESIDENT AND DIRECTORS. 427 
 
 which operation, the value of that portion of our capital has been very much 
 increased, that stock being now 30 per cent, above par, with a prospect of 
 rising still higher. I beg leave, respectfully, to call your attention to the 
 application made in the report of the last year, to restore to the Bank the 
 sums withdrawn from it by Legislative authority; say $10,780, being in- 
 terest on the debt of the late General Sumter ; and $2,861 89, the debt due 
 by the Female Academy in Columbia, which did not pass through the Sen- 
 ate, for want of time. 
 
 From the growing prosperity of our State and city, and the consequent 
 improvement of the Bank, and the- amount of the Sinking Fund, I do not 
 think it is venturing too much to say, that the Bank would be enabled to 
 assist the State in any proposed improvement which may be undertaken 
 by the authority of your honorable body. 
 
 All of which is respectfully submitted. 
 
 C. J, COLGOCK, President. 
 
428 
 
 ANNUAL REPORTS OF 
 
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PRESIDENT AND DIRECTORS. 429 
 
 (1836.) 
 To the Honorable tJie Speaker a^id Members of the House of Representatims : 
 The President of the Bank of the State of South Carolina begs leave 
 to report : 
 
 That the operations of the Bank for the last year have been unusually 
 successful — and he is enabled to carry to the credit of the Sinking Fund, 
 the sum of $135,000, besides extinguishing the remnant of some old debts 
 which have been lost, by carrying the amount to the account of profit and 
 loss, and leaving to the credit of the contingent account, the sum of $20,- 
 638 73, to meet the payments to the Rail Road subscription, premium on 
 stock, specie, &c. While it affords him great satisfaction to make such an 
 Exhibit, during a year of such severe trial and difficulty in the commercial 
 world, and such an unusual disturbance in the money system of the whole 
 world, it becomes a duty, not only to the State, but to himself, to say, that 
 a continuation, and more particularly, any increase in these matters of dif- 
 ficulty, forbid the hope of the like success for another year. The late diffi- 
 culties between the Bank of England and the American merchants, have 
 developed some important and startling facts, which are worthy of serious 
 consideration, when we advert to the standing which is held by that great 
 institution. It is declared that the specie of the world is not adequate to 
 the greatly increased demand of the commercial world — and hence, it has 
 become the subject of barter and sale, to the great annoyance of the Bank- 
 ing system. Added to the universal increase in the commerce of the world, 
 arising from the peaceful state of Europe and America, for the last thirty 
 years, the rapid rise and improvements of the latter have required and e:^- 
 hausted no small amount of the capital of England, and consequently, their 
 operations at present are somewhat contracted, and must remain so for ^ 
 time. The truth of these facts has been greatly felt, during the last year, 
 and are at this moment operating in our community, and it will require, all 
 the aid of a good crop to afford relief to us, and assistance to them. 
 
 So much specie has been drawn from England of late, that every effort 
 must now be made by her, to prevent a further drain, and interest has risen 
 in every part of Europe, as far as we can obtain information. The great 
 number of Banks in the United States, and that numljer continually increas- 
 ing — each requiring a certain amount of specie corresponding with their 
 capital, has created, together with the universally high rate of exchange, 
 (and the Government order in the sale of the public lands,) such a demand 
 for it here, as to induce the brokers to make it a subject of barter and ex- 
 change, and they have been, and now are, drawing daily from the Banks 
 all they can, to the great inconvenience of the community ; inasmuch as it 
 obliges the Banks to restrict their operations. I think I am within bounds, 
 when I say, that a million of specie more has been required in the opera- 
 tions of the Banks of our city this year, than in any former year, since that 
 of 1825. Add to all this, a spirit of speculation and over- trading, which 
 pervades all parts of our country ; and it will be seen that the utmost cau- 
 tion and circumspection are necessary in the conduct and management of 
 the institution. With an enlightened and active Board of Directors, such 
 as we now have — ever mindful, that it is not only necessary to sustain the 
 Bank, but also the credit of the State, I think I can venture, (with a confi- 
 dence in the protection and support of that benignant Providence we have 
 experienced for so many years,) to promise such results as, under all cir- 
 cumstances, will be deemed satisfactory to an enlightened and liberal Le- 
 gislature. All which is respectfully submitted. * 
 
 C. J. COLCOCK, President. 
 
430 
 
 ANNUAL REPORTS OF 
 
 
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PRESIDENT AND DIRECTORS. 431 
 
 (1837.) 
 To the Honorable the Speaker and Members of the House of Representatives : 
 
 Gentlemen : — Since the period of my last Report, the monetary affairs 
 of our country have been thrown into great disorder and confusion, by 
 one of those revulsions, to which the nations of the earth, as well as the in- 
 dividuals who inhabit it, are equally liable. 
 
 We do not profess to have been able to have formed any estimate of its 
 desolating effects — though we are happy to be able to say, that the coming 
 storm was anticipated, and as far as our foresight and power extended, we 
 were prepared to meet it. We claim no merit in saying this, because it 
 was impossible for persons occupying the position we do, not to have fore- 
 seen it — though there were many who were deaf to all admonitions on the 
 subject, and were constantly branding those who saw more clearly than 
 themselves, with the epithets of alarmists. 
 
 The happy result, to ourselves and our country, of the course we have pur- 
 sued, is the only triumph which we desire to claim. We believe there is no 
 Bank in the Union, whose operations are as extensive as ours, who have 
 suffered less than we have .done, or are like to do, by the desolating rava- 
 ges of the late calamity. We are enabled to return, as the amount to be 
 carried to the Sinking Fund, the sum of two hundred and one thousand two 
 hundred and twenty-five dollars and thirty-seven cents (201,225 37) clear 
 profits of the Bank; besides the sum carried to profit and loss, and deduct- 
 ed for this year, as you will perceive, from the Contingent Fund. 
 
 The Bank, however, has been driven from her usual course, and com- 
 pelled, in some degree, and to a certain extent, to yield to the force of cir- 
 cumstances which she did not possess the power to control. In the month of 
 May, the Banks at the North, (and elsewhere, according to the rumor of the 
 day,) stopped specie payments ; or, in other words, refused to redeem their 
 notes. The consequences to us, were manifest and inevitable. We should, 
 in a short time, have been drained of all the specie we possessed, and com- 
 pelled to have stopped business, or have had to add to the calamity by 
 which the country was nearly -overwhelmed, by pressing our debtors for 
 payment. In this state of things, a meeting of all the Banks was called, to 
 deliberate on the proper course to be pursued — and we took the ground that 
 no action on the part of the Banks was proper, until called on by the peo- 
 ple ; a meeting of the citizens of Charleston and its vicinity took place the 
 next day. During their deliberation, it appeared that there were persons 
 in the town, at that very moment, prepared to draw largely on the Banks ; 
 in consequence of which, a committee was deputed to wait on the Banks 
 SEind to request that they would not redeem their notes until the resolutions 
 of the meeting could be made known. These resolutions, as soon as adopt- 
 ed, were transmitted to the Banks by the proper authorities ; and at a se- 
 cond meeting of the Banks, it was agreed that the public welfare demanded 
 jof us a compliance with their request. 
 
 I deem it unnecessary to enlarge upon this topic, because, at this day, the 
 public are well and fully informed on it — and of course, your honorable body 
 well qualified to form a correct opinion on the propriety of our course ; our 
 statement will show that the condition of the Bank did not render such a 
 step expedient, and you are assured that we were most reluctantly brought 
 into the measure. 
 
 In another particular, it becomes my duty to acknowledge that the Bank 
 has been driven to the necessity of exercising a power which it ^id not 
 
432 ANNUAL REPORTS OF 
 
 possess — indeed, one which it was prohibited from exercising, by the second 
 clause of the Act re-incorporating the Bank, passed on the 19th day of 
 December, 1833 — "That of issuing bills under the denomination of one dol- 
 lar." This was, in a measure, a consequence of the suspension of specie 
 payments. For, in a very short time after that was determined on, all the 
 specie change that was in circulation was withdrawn, and as fast as the 
 Banks supplied the circulation, was again taken up. On the first applica- 
 tion the Bank refused to act. An application was then made to the City 
 Council, and to the other Banks. But, on . investigation, it appeared that 
 they were not only prohibited from issuing bills below five dollars, but t}i .t 
 such issue, by them, was declared to be absolutely void. See Act of Assem- 
 bly, 19th December, 1816. 
 
 The Bank was then called on by the Comptroller General, the Mayor of 
 the City, and three or four Members of the Legislature, as a Committee of 
 the Delegation, with the joint solicitation of all the Presidents of the Banks 
 of the city, and requested to yield to the wanta of the community. It was 
 urged that some mode of supplying this demand must be devised. For, 
 otherwise, each individual would issue'^his own Due Bills — and the neces- 
 sity of the case compelling the citizens to receive them, would, undoubted- 
 ly, induce great loss — and that, too, to that portion of the community least 
 able to bear the loss — the laboring class. That as the the necessity was 
 apparent, and this Bank was known to be the public agent for the manage- 
 ment of its fiscal concerns, atad high in credit with the people, it was ad- 
 visable that the issue should come from it. We accordingly have issued to 
 the amount of thirty thousand dollars, and are daily called on for more. 
 I would, therefore, respectfully call the early attention of your honorable 
 body to the subject — and request that you will either re-enact the law giv- 
 ing the authority of the Bank to issue notes of twenty-five and fifty cents, 
 or merely sanction the issue already made, as may be deemed most proper. 
 The duty of issuing them is an arduous one, and the operation expensive 
 — and the Legislature will remember how readily the Bank dispensed with 
 them. Indeed, the clause was inserted at my special request. It will be 
 obvious, that so long as the payment of specie is suspended by the Banks, 
 the necessity for these bills will continue — and as this Bank is the only 
 one authorized to issue anything under five dollars, perhaps it is as well the 
 authority should be given to it — limited either as to amount, or time, or 
 both, as may appear most proper. The whole burthen of supplying the 
 community with change having fallen upon us, it becomes our duty, in or- 
 der to prevent an increase of circulation, a measure to be avoided at a time 
 like the present, to exchange these bills for other bills of this Bank — and 
 this we shall continue to do, until we receive a further authority to issue, or 
 are stopped in the operation of issuing them. 
 
 In immediate connexion with this subject, I beg leave to call the atten- 
 tion of your honorable body to the Act of Assembly, 16th December, 1818, 
 which authorizes the Presidents and Cashiers of "The Branches of the Bank 
 of the State of South-Carolina, to sign small bills of credit, payable on de- 
 mand, of a lower denomination than five dollars, under such regulations as 
 the President and Directors of the Bank of the State of South Carolina may 
 direct — and the President and Cashier of the said Bank of the State of 
 South Carolina, are hereby exempted from signing the same, any law to the 
 contrary notwithstanding." It is indispensable that this power should be 
 given, for such is the wear and tear of these small bills that a continued 
 
PRESIDENT AND DIRECTORS. 433 
 
 renewal of them is necessary — many of them being unfit for use in two or 
 three months. But in practice, it is troublesome to send the bills unsigned 
 to the Branches. I -would, therefore, respectfully request that the Act be 
 so amended as to authorize the President and Directors to cause the signa- 
 tures to be affixed to all bills under the denomination of five dollars, by a 
 Clerk, to be called Assistant Clerk, or otherwise, under the immediate in- 
 spection of the President and Directors. 
 
 The authority of the Act of 1818 has been seldom exercised — never, ex- 
 cept in times of great pressure on the Officers of the Bank. But the busi- 
 ness of the Bank has, of late years, been so much increased, that the Presi- 
 dent and Cashier are at all times fully occupied in business of much great- 
 er importance than signing these small bills — and, therefore, the power 
 should in future be exercised through some agent legally authorized. In 
 closing my Report, I am compelled to state that our Agencies have both 
 ceased. The amount standing to the Hamburg Agent is in suit against 
 him. Our Agent at Georgetown having resigned, the notes standing to that 
 account are in his hands, as Attorney, for suit. 
 
 All which is respectfully submitted, by 
 
 C. J. COLCOCK, President. 
 
 55 
 
434 
 
 ANNUAL REPORTS OF 
 
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PRESIDENT AND DIRECTORS. 435 
 
 (1838.) 
 
 To tfie- Honorable the Speaker and Members of the House of Representatives, 
 
 Gentlemen : — Since I had the honor to make my last report to you, the 
 monetary affairs of our country have been gradually, though slowly, return- 
 ing to a more healthful state, and though by no means fully restored to 
 their former prosperous condition, yet I hope they will ere long be in a 
 safe condition. AH the Banks have not yet resumed specie payments, and 
 when the period arrives beyond which they can no longer postpone it, or 
 forfeit their charters, we must unavoidably experience some inconveniences 
 in their struggles to maintain themselves. 
 
 It will be observed, that our return is not as large as it was the last 
 year, but when it is recollected what a serious shock we sustained, it may 
 well account for the small difference of five thousand dollars. The period 
 is fast approaching, when $800,000 of the public debt must be paid. Such 
 has been the pressure on the community arising from losses of crops, and 
 depreciation in price, as well as the general embarrassments, that we have 
 been obliged to extend indulgence to all who were unable to meet their 
 payments, by which means our amount of discounts and loans on bonds 
 have been increased to an unusual amount, one, in fact, which could not be 
 excused, except by the extraordinary state of things which has existed for 
 the last two years. In consequence of these embarrassments, we have 
 been unable to purchase as much of the stock redeemable in 1840 as we 
 otherwise could have done, and as our true policy directed that we should 
 do. But we shall be under the necessity of calling in during the present 
 year, for it would be a reflection on the State, not to meet, with its usual 
 promptness this demand, particularly when it is observed, that upwards of 
 three millions and a half are due to us, and the sinking fund amounts to 
 more than $800,000. 
 
 There are also considerations of a more pressing nature, which urge the 
 payment of this debt. The State has lent its credit to the Louisville, Cin- 
 cinnati and Charleston Rail Road Company, for two millions, and issued 
 its bonds for the relief of the sufferers by fire in Charleston, for two mil- 
 lions more — it is to be hoped that it wil> not be called on for the interest 
 on the first loan. But on the secoii(kJt certainly will, for we have reason 
 to believe that General McDuflSe wifl be able to negociate the loan in a 
 short time — it is proper that I should state to your honorable body, that 
 after three months trial in New York, we could not get an offer for the 
 Charleston loan at a higher rate than par, though it was acknowledged by 
 all the buyers that it was the best stock ever put into the market. Had I 
 been acting alone, I would have sold at par, but it was thought that more 
 could be obtained in Europe, which I hope may be the result. In order, 
 however, to carry out the benevolent and patriotic intentions of the Legis- 
 lature, we thought it proper to take an advance on the bonds of $300,000) 
 which we have been loaning out to the sufferers by fire, and shall continue to 
 do, at 6 per cent. Though it costs us more to get the money here, we. are in 
 hopes of being able to loan the amount obtained in England, at that rate, and 
 it would not have been proper or advisable to make a difference between the 
 first applicants, and those who might come in after the advance of $300,000 
 was expended. By the time this report is read in your body, I do not 
 doubt that we shall be authorized to draw on England. There is great 
 difficulty in getting money even from New York, for the demand for 
 
436 ANNUAL REPORTS OF 
 
 Exchange is very limited, and the rate down to ^ per cent, though, with a 
 knowledge of having funds at our command in England, we shall not per- 
 mit those who are entitled to the benefit of this loan, to suffer any embar- 
 rassments. Great complaints are made of inconvenience and expense in 
 the operation of the law regulating the manner of making the loans to the 
 sufferers by fire, and I am inclined to think that some of them have been 
 prevented from applying in consequence of these difficulties ; as it is of 
 the first importance to loan out the money as fast as possible, that we may 
 not sustain any loss of interest, I would respectfully recommend that the 
 law be revised, and the difficulties removed, as far as is consistent with the 
 security to and safety of the State. 
 
 All of which is respectfully submitted, by 
 
 November 24, 1838. 
 
 C. J. COLCOCK, President. 
 
 r 
 
PRESIDENT AND DIRECTORS. 
 
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43^ ANNUAL REPORTS OF 
 
 '^ (1839.) 
 
 To tJie Honorable the Speaker and Members of the Hmise of Represe?ita- 
 
 fives : 
 
 Gentlemen : — Among the many eminent citizens whose loss we lament 
 since the period of your last meeting, the venerable Judge Colcock occu- 
 pied a distinguished position. Presiding over this institution for many 
 years, and identified with its interests, he discharged the duties of the high 
 trust reposed in him, with zeal and fidelity, securing the well merited con- 
 fidence of successive Legislatures. The vacancy occasioned by his death, 
 having been filled according to the requisitions of the Charter, by election 
 among the Directors, the following report is respectfully submitted : 
 
 The amount transferred to the Sinking Fund, as nett profits of the Bank 
 for the last year, is two hundred and ten thousand dollars, ($210,000,) be- 
 sides the sum of fourteen thousand six hundred and forty-one 1-100 dol- 
 lars (14,641 01) carried to profit and loss. 
 
 As the redemption of the six per cent, stock will absorb the Sinking 
 Fund, and virtually diminish the active means of the Bank, it was deemed 
 advisable to address a circular to the debtors on bond, requiring certain 
 payments. 
 
 The general accommodation of the Agricultural interest throughout the 
 State, and the undoubted security of the debt, has heretofore induced the 
 Directors to extend indulgence when default of payment has been occa- 
 sioned by unpropitious seasons, or other unavoidable calamity. A diminu- 
 tion of the debt would be highly advantageous to the interests of the in- 
 .stitution. 
 
 Having always considered ourselves under obligation to meet the de- 
 mands of the Treasury, it is incumbent on me to remark, that the heavy 
 advances to supply the deficiency of the Revenue, necessarily impairs the 
 means of the Bank in promoting the business of the country. 
 
 The Committee of Ways and Means, at your last session, recommended 
 " That the President and Directors of the Bank of the State of South Car- 
 olina should be authorized and requested to take such means as in their 
 judgment would be deemed necessary to preserve at par throughout the 
 State, the bills which might be issued by any Bank within its limits." In 
 compliance with the above resolution, the Cashier opened a correspondence 
 5>ith the various institutions of the State. Replies were received from the 
 Commercial Bank of Columbia, and the Bank of Camden. Recent events 
 having rendered the action of this resolution more comprehensive than was 
 contemplated, and the subject being deeply interesting to the State, it will 
 rest with your Honorable Body to apply the corrective, and avert the evils 
 of a depreciated currency. 
 
 The bright anticipations of profitable business with which the year com- 
 menced, have unfortunately not been realized, and the causes operating to 
 produce these adverse results, so various a»d wide spread, that it would be 
 difficult to condense them in a brief statement. Fluctuation in the price 
 of the great staple of our country, large reclamations due, and consequent 
 distrust of private credit, occasioned a constant demand for specie fts a 
 means of remittance. Capital diverted from its usual and regular channel 
 of business, and locked up in irredeemable paper, tended greatly to increase 
 commercial embarrassment. 
 
PRESIDENT AND DIRECTORS. 439 
 
 To swell the catalogue of disasters, a great central institutiorij struggling 
 to sustain its credit abroad by great sacrifices at home, spread a panic 
 throughout the land by suspending specie payments. The example was 
 immediately followed by most of the Banks south of Philadelphia, and by 
 all in this city, except the Bank of Charleston, and the Bank of the State 
 of South-Carolina. With every disposition to act in concert with the other 
 institutions of the city, when it did not conflict with higher duties, the ne- 
 cessity of the case was not considered sufficiently urgent for precipitate ac- 
 tion, and we felt morally as well as legally bound to continue to redeem 
 our obligations in good faith. Administering a great public trust, and spe- 
 cially charged to use every endeavor to keep the currency sound, we believe 
 that we consulted the true interest of the community, and the honor and 
 character of the State, in maintaining our position unchanged. 
 
 Under the Act for re-building the City of Charleston, it is made the duty 
 of the President and Directors of this Bank, to make an annual statement 
 of the condition of the fund. Gen. McDuffie's agency in Europe has re- 
 sulted in the sale of Bonds to the amount of one-half of the contemplated 
 loan, and we have reason to believe that at no time since could the same 
 price have been obtained. He negotiated with the house of Messrs. Ba- 
 ring, Brothers & Co. two hundred and seventeen thousand pounds (£217,- 
 000,) at ninety-three pounds (£93) for every one hundred pounds (£100), 
 equal to two hundred and two thousand two hundred and seventy-five 
 pounds (£202,275,) and sold fifteen thousand five hundred pounds (£15,- 
 500) at ninety-five pounds (£95) for every one hundred pounds, (£100,) 
 equal to fourteen thousand seven hundred and seventy-five pounds, (£14,- 
 775.) These amounts were drawn at an average premium of ten per cent, 
 yielding a nett sum of one million and forty-five thousand four hundred 
 and thirty-eight dollars, seventy cents, ($1,045,438 70.) This loan cost 
 the State about five and one-half per cent, and the interest on the premium 
 will be more than equivalent to the seven (7) on every one hundred (lOO) 
 that will be paid on redeeming the Bonds. 
 
 The increased value of money abroad rendering all further negociation 
 hopeless, except at a sacrifice, which the credit of the paper did not war- 
 rant, nor the emergency of the case require, the Board of Directors have 
 determined to recall the remaining Bonds, two hundred and seventeen 
 thousand five hundred pounds (£217,500) from the hands of Messrs. Ba- 
 ring, Brothers & Co. and in lieu thereof, with the consent of His Excellen- 
 cy, the Groveriior, have advertised a six per cent, stock in this market, and 
 have already sold to the amount of about three hundred thousand dollars 
 ($300,000.) 
 
 I would respectfully suggest, that the act be so amended, that the certifi- 
 cates of stock issued, should be signed by the Cashier, and countersigned 
 by the President of the Bai k, instead of the Governor and Comptroller 
 General, as the difficulties of transfer would be much lessened by the al- 
 teration. 
 
 The liberal policy of the State in assisting private enterprise to repair 
 the ravages of a destructive calamity, has achieved, in a few months, what 
 years of unaided industry would have failed to accomplish. 
 
 Seven hundred and thirty-eight thousand one hundred and seventy-seven 
 50-100 dollars ($738,177 50) has been actually loaned to applicants, many 
 of whom are entitled to further instalments. The amount has beeD ex- 
 
440 ANNUAL REPORTS OF 
 
 pended in erecting valuable and substantial buildings, offering inducements 
 to enterprise, by giving additional security to property, contributing to the 
 comfort and accommodation of the inhabitants, and the embellishment of 
 the city. The gratuitous service of our fellow-citizens in the valuation of 
 lots, has tended to equalize the distribution of the loan, and give general 
 satisfaction to the community. 
 
 In resigning my seat in an institution with which I have been connected 
 for many years, and in whose prosperity I feel a deep interest, I may be 
 permitted to express my acknowledgments to the Cashier for his valuable 
 aid and information, and to the Directors for their uniform co-operation 
 and support. 
 
 All which is respectfully submitted, by 
 
 JAMES ROSE, President jy)o. tern. 
 
PRESIDENT AND DIRECTORS. 
 
 441 
 
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442 ANNUAL REPORTS OF 
 
 (1840.) 
 
 To the Honorable the Senate and House of Representatives of the State of 
 
 South Carolina. 
 
 The President and Directors of the Bank of the State of South Carolina 
 respectfully report : 
 
 That the profits of the Bank, from the 30th day of September, 1839, to 
 the 1st day of October 1840, including interest received on the bonds for 
 money loaned for rebuilding the City of Charleston, amounted to the sum 
 of one hundred and eighty-two thousand five hundred and twenty-six dol- 
 lars and seventy-seven cents, ($182,526 77.) Of this sum thirty-two 
 thousand nine hundred and seventy dpllars and nine cents ($32,970 09,) 
 the whole amount received as interest on the fire-loan bonds, was paid to- 
 A ards the interest of the bonds of the State sold in Europe to raise that 
 fund ; the further sum of ten thousand eight hundred and ninety-nine dol- 
 lars, thirty-five cents, (10,899 35) was paid for interest on the State stock 
 issued to raise the second million ; the further sum of twenty -eight thous- 
 and six hundred and fifty-seven dollars and thirty-three cents, (28,657 33,) 
 was reserved to cover the bad and doubtful debts which, contracted through 
 several years past, have been suspended in hopes of payment ; and one 
 hundred and ten thousand dollars ($110,000) have been transferred to the 
 credit of the Sinking Fund. The usual tabular statements accompany 
 this report, showing in detail the operations of the Bank, and its branches 
 at Columbia and Camden, and the condition of the several funds under its 
 charge. There are also some other tables and statements presented here- 
 with, intended to illustrate such views as the Board have thought it their 
 duty to submit, anjd which they will refer to more particularly in the course 
 of this Report. 
 
 The diminished income derived from the operations of the Bank during 
 the past year, as compared with other years, as well as considerations bear- 
 ing upon its future usefulness and ability to fulfill the expectations of the 
 State in redeeming the public debt, make it our duty to submit some ex- 
 planations of the circumstances and causes which have influenced and pro- 
 duced this result. Of these causes, several were sufiiciently powerful, 
 singly, to have diminished considerably the profits of the year ; and coming, 
 as they have done, altogether, at a time the most unpropitious for th.e Bank 
 that could have happened, it is a source of pride to those who know the 
 difficulties which surrounded us on all sides, that we have been able, not 
 only to sustain the payments of specie, but at the :same time, to meet and 
 discharge every obligation of the State, maintain its honor and credit, and 
 turn over, to the public us6, a moderate dividend. Not a single bad debt 
 has been contracted, while a large amount of those which had gradually ac- 
 cumulated in the course of previous years, have been carried to profit and 
 loss. The severity of the tests applied during the past year, evince the 
 soundness of the Bank, and will, we trust, be taken as evidence, that the 
 confidence the State has reposed in it, has not been misplaced. When it 
 is remembered that the available means of the institution have been de- 
 creased nearly one million and a quarter of dollars for this year, as com- 
 pared with the past, combined with other causes which will be explained 
 hereafter, it will be seen that the result of the year's business has been -quite 
 as favorable as we had a right to expect. ' ' 
 
 For many years the commercial world has not known a period of greater 
 
PRESIDENT AND DIRECTORS, 443 
 
 clifficulty than that just past. At no time has the scarcity of money, and 
 the derangement of exchanges and commerce, been greater than during the 
 earlier part of it. We have not been exempt from the common lot, but 
 have had our full sliare of suffering. At the beginning of this fiscal year, 
 the circulation of our Banks was barely more than one-half of what it 
 was in 1837 ; and before its close it had been so much more reduced, that 
 probably not more t an one-third of what was the circulation in 1837, was 
 left for the trade and business of the people. 
 
 The effects of this state of things on our profits has been obviously un- 
 propitious, in disabling our debtors to meet their engagements with punctu- 
 ality. The depressed state of trade, and scarcity of money in our foreign 
 markets, had already brought do^yn the prices of our staple to a very low stand- 
 ard, but this contraction of the circulation, so great in amount, and so rapid 
 in its perpetration, by reducing not only these prices still lower, but the val- 
 ue of all kinds of property, added greatly to the pressure and distress^ 
 Payments into the Bank were made with difiiculty by most of its debtors, 
 and in too many instances we have been unable to procure any. 
 
 It was in this state of things, the public debt of eight hundred thousand 
 dollars of six per cent stock, isstied under the act of 20th December, 1820, 
 became due, the redemption of which was charged upon the sinking fund. 
 The payment was promptly met ; and during the month of January last, 
 as presented, the whole of the Stock except $1,204,04 not presented, was 
 redeemed. The payment of so large an amount from tlie Bank could not 
 be made at any period without causing a great contraction in its business, 
 and inconvenience to the community ; but at this time, it bore with pecu- 
 liar hardship on the debtors of the institution.' The Board of Directors, 
 fully alive to tjie necessity. of preserving the honor of the State, resolutely 
 enforced sufficient collections to meet this and other demands which were 
 accumulating with a fearful and concentrated power on the Bank. The 
 demand for specie had been unintermittingly kept up u'pon the institution 
 from August, 1839— in one year from that day, $391,000 had been drawn 
 from our Bank. -Unaided, after the suspension of 1839, in sustaining spe- 
 cie payments, except' by the Bank 'of Charleston, the current was turned 
 heavily upon us. Our bills of all denominations, even to the one's and 
 two's, issued to accommodate the community with change, were collected 
 and the specie drawn for them. The extent of these demands upon us will 
 appear when we state that we redeemed of our circulation, with specie, from 
 30th Sept., 1839, to 1st of Oct., 1840, $288,000. 
 
 It will be seen by referring to the table marked I, that the individual 
 deposits were about the samfe time greatly reduced, being drawn out at the 
 very moment that the Bank was hardest pressed. The monthly average of 
 the deposits for the four last fiscal years, were as follows : 
 
 1st Oct. i 836, to 1st Oct. 1 837, monthly average, $679,000 
 
 . " 1837, . " 1838, « '' , . 618,250 
 
 " 1838, ' " 1839, " " ._. 502,500 
 
 " 1839, '' 1840, " '' 338,000 
 
 During the same period the payments oti the fire loans were excessively 
 heavy, being two hundred and seventy-six thousand four hundred and forty 
 dollars, ($276,440,) and the payments of interest on the public debt amount- 
 ed to the further sum of $91,455 55. The Bank was also in advance at 
 one time, one hundred and twenty-one thousand two hundred an^ sixteen 
 
444 ANNUAL REPOKTS OF 
 
 dollars twenty-three cents ($121,216 23) to the public Treasury, for money 
 drawn out during the most trying and difficult period of the year. 
 
 Between the 30th day of September, 1839, and the 1st October, 1840, 
 the Bank met and discharged the following liabilities for the State and 
 itself : 
 
 Of Six per Cent Stock of 1820 $798,795 96 
 
 Interest on Public Debt, :__-. 91,455 55 
 
 Fourth Instalment on L C. & C.li. K Co. for h^tate - 50,000 00 
 
 Fourth, Fifth and Sixth Instalments on Stock held by Bank 7,500 00 
 For interest and expenses on the loan for rebuilding Charleston, 62,886 44 
 
 To borrowers on the Fire Loans. 276,440 00 
 
 To individual depositors _ 100,000 00 
 
 Specie in redeeming its billsj 288 000 00 
 
 $1,675,077 95 
 During the year, the Bank received, by the exchange of 6 per 
 cents, of the fire loan stock, for six per cents, of 1820 
 $236,000, and a further amount of $141,151 10 by the 
 sales of other certificates of the same stock, making in 
 all - 427,151 10 
 
 Leaving a total paid out. by the Bank, beyond what was thus 
 received, and a diminution of its available means in the 
 year's business, of. $1,237,926 85 
 
 The exchanges of the Fire Loan Sixes for those of 1 820, took place at 
 the first of the year, and the sales of the remainder were made, in most 
 cases, in the latter part of it so that near, $1,200,000 of the foregoing trans- 
 actions, were between the 1st October, 1839, and the 1st June, 1840, em- 
 bracing the active season of our business. 
 
 It was during the severest season of this pressure, caused by these ex- 
 hausting demands, that the funds of the Treasury gave out, and the whole 
 burthen of sustaining the State Government devolv-ed upon the Bank By 
 this event, we were deprived of the use of a large amount of ready money, 
 averaging for the four first months of this year, nearly one hundred thou- 
 sand dollars ($100,000.) The consequence was very unfortunate for the 
 Bank ; it lost the income of this fund during the most profitable season of 
 the year, and not only so, but by its abstraction, was exposed to the loss of 
 nearly an equal amount of its specie, which cost us a considerable sum to 
 replace. To explain this more clearly, let it be borne in mii;d that tie only 
 paper in actual circulation, was that of the suspended Banks. All pay- 
 ments into the Bank of the State and all the ordinary transactions around, 
 were made in that paper. The bills of the Bank of the State were a com- 
 modity sold at a premium of 3 per cent., as equivalent to specie. All pay- 
 ments were therefore made from the Bank, as far as possible, in other bills 
 than its own, but when these were exhausted, its own bills were necessarily 
 paid to the public or Bank creditor. Under the exhausting payments be- 
 fore stated, this occurred occasionally, and the bills invariably were return- 
 ed upon us to be redeemed in specie. If the Bank had been left in pos- 
 session of this large amount of its own funds, they would have been em- 
 ployed in providing exchanges, which would have been received in lieu of 
 specie, or readily converted into it ; and while tl>e operation would have 
 rendered important aid to trade and business generally, a profit would have 
 
PRESIDENT AND DIRECTORS. 445 
 
 been realized, and the expense necessarily incurred in replacing the specie 
 drawn out, saved to the Bank. On the other hand, in consequence of its 
 abitraction, we were compelled to press our debtors still more, staggering 
 as they were under burthens almost insupportable, for the means to dis- 
 charge the Treasury checks. The effect may be judged by the simple fact 
 which is exhibited in the table of our discounts marked K. and L. by which 
 it will be seen that we had called in and reduced the discount line of the 
 parent Bank, between the 1st of October and the 1st of April, from 
 $1,526,459, to $1,037,824, or the enormous amount of $428,635, in six 
 months. These heavy curtailments fell chiefly on the commercial commu- 
 nity of Charleston. At the Branches the same system was carried out as 
 far as possible — they were called upon to contribute their shares to the 
 same purpose ; and from October to May. their discounts were contracted 
 one hundred and sixty four thousand seven hundred and thirty-one dollars 
 sixty cents. 
 
 We cannot permit the present occasion to pass by without earnestly call- 
 ing the attention of the Legislature to the consequences of a continuance 
 of this system of throwing the burthens and expenses of the State on the 
 funds of the Bank. The State is indebted for the following stocks redeema- 
 ble as follows : 
 
 5 per cents, of 18^2, redeemable in January. 1842, $200,000 00 
 
 5 " " " 1824, " " " 1845 250 000 00 
 
 5 " " " 1826, " " " 1846 300,000 00 
 
 6 " " " 1839, " " " 1848. 200.0C0 CO 
 
 6 " " " 1839, « " « 1850, 200.000 00 
 
 6 " " " 1826, Mrs. Randolph, " 1850, 10.000 00 
 
 6 " " " 1839, redeemable in " 1852,'..., ..200.000 00 
 
 5 " « ■" 1838, " " July, 1858, 517,777 78 
 
 5 " 'i " 1838, " • '^ " 1868, 517,777 78 
 
 6 " " " 1838, " 1st January, I860,. _. .482,222 22 
 
 ^ " « " 1838, '• '^ " 1370,.,.. ... 482,222 22 
 
 $3,360 000 00 
 To redeem this heavy debt, the Legislature has, by successive acts, 
 pledged, not only the profits of the Bank, but the capital also. How far 
 prudence may dictate, and good faith require, that the BaLk shall be left in 
 posses^sion of her own funds, to make a fair profit for the redemption of these 
 stocks as they may fall due, is respectfully submitted to the consideration 
 of the Legislature. For several years, the expenditures have exceeded the 
 income of the State, and threaten hereafter to absorb the available means 
 of the Bank, at the most important season of business. The balances in the 
 Treafury, for five years, La\e leen as follows : 
 
 1st October, 1836, balance in Treasury was. _ $382,124 62 
 
 " " 1837, " " " '' : 296,049 03 
 
 " " 1838, " " " " ... 172.913 88 
 
 " " 1839, " " " « 113.087 68 
 
 " " 1840, " ' " " _._ 62^426 16 
 
 On the 1st October, 1839, the State had $1 13.087 68 in the Treasury, 
 and before the end of December, it was in debt to the Bank $23,442 41. 
 On the 1st October, 1840, there was only $62,426 16 in the Treasury, 
 while there were undrawn appropriations to the amount of $68,893 20 to 
 be met, besides all the necessary expenses of the State, until the*taxes are 
 
446 ANNUAL REPORTS OF 
 
 paid in on the 1st June, 1841. These expenses, if no appropriation for 
 other purposes are made at the present session, will require upwards of 
 $200,000 mote before the 1st of June, 1841, all of which may be drawn 
 out of the Bank. This steady increase of expenditures over the income, 
 and its corresponding encroachment on the funds of the Bank, if persisted 
 in, will inevitably endanger its ability to meet, from its profits, the several 
 engagements for which the honor and faith of the State stand solemnly 
 pledged, and which the people expect the Bank to redeem ; and in conse- 
 quence its capital must be taken, or the faith and honor of the State 
 broken. On the other hand, if the integrity of its funds is preserved, and 
 its means arud resources left to it, besides redeeming from its profits all the 
 debts of the State for which it stands pledged, it will, it is confidently be- 
 lieved, be able to carry into effect the objects for which it was instituted, 
 giving a wholesome and safe support to the great interests of the State. 
 
 The matters above submitted for your consideration, are every day ac- 
 quiring additional weight, from the unsettled state of the money market, 
 and the deranged condition of trade. Whilst specie payments are not 
 resumed generally in our own country, and especially in Georgia^ disturb- 
 ing causes of great magnitude are agitating every country with which our 
 commercial connexions are of any importance, and admonish us of the 
 necessity of great prudence in the management of our affairs. The hostile 
 attitude of the powers of Europe towards each other, and the large ship- 
 ments of specie in that direction, should neither be unheeded nor the pos- 
 sible consequences overlooked. iShould a general war ensue amongst them, 
 we may look for an increased drain of our specie, and a diminished demand 
 for our cottons. The extent of either, we may not be able to foresee, but 
 the effect, it can scarcely be doubted, will be to produce a greater pressure 
 on, and more distress amongst, those who are in debt. If such a condition 
 of affairs should unhappily come upon us, we shall be in a crisis, not unlike 
 that in which this institution was created for the aid of the community, 
 and if it is desirable that it should be in a condition, should such an event 
 occur, to afford similar assistance to the people, great care is necessary not 
 to lessen its means nor to impair its resources. After the extraordinary 
 exertions of the last year, and the payment of such heavy sums from its 
 coffers, some time and rest are necessary, to get it again in the command of 
 active means sufficient for the full and vigorous prosecution of all its 
 duties. 
 
 BONDS AND MORTGAGES. 
 
 In the annual statement of the Bank,^ it will be seen that the^ present 
 amount of the bonds secured by mortgages, has been decreased since the 
 last annual report. The payments in this department of our business 
 have been small, compared with those on notes. This debt is chiefly owed 
 by the planters. In some instances, the rice crop has been an etitire fail- 
 ure, and in others, it has been very short. The cotton crop was large, but 
 its abundance created heavy charges in preparing it for, and getting it to, 
 markets which were already overstocked, and, in consequence, the prices 
 realized have been very inadequate returns for the labor and capital em- 
 ployed in its production. A very small amount was consequently received 
 from this source on their bonds. The condition of the Bank, at the same 
 time, prevented any increase of loans in this way, as it must continue to 
 do, while its situation remains as it is at present, and its funds arc diverted 
 from their legitimate functions. 
 
PRESIDENT AND DIRECTORS. 4^7 
 
 SINKING FUND. 
 
 Letter E is a report which exhibits the present amount and condition of 
 the sinking fund. The large increase to it now exhibited, is occasioned by 
 the transfer of $600,000 of the surplus revenue, appropriated formerly for 
 the subscription of the State to the Louisville, Cincinnati and Charleston 
 Rail Road, and which has been so transferred by virtue of the Act of the 
 last session, providing for an advance by the State to that Company, of 
 $600,000 of State Stock in lieu of instalments to be paid out of this 
 fund. 
 
 FIRE LOANS. 
 
 Letters G and H, contain the annual report of the fire loan fund, as 
 required by the Act of June 1st. 1838. It will be observed that the whole 
 amount of the interest received on these bonds is only thirty-two thousand 
 nine hundred and seventy dollars and nine cents, ($32,970 09) while the 
 interest paid for it in Europe, for the same time, is fifty-eight thousand one 
 hundred and ninety-three dollars ninety-nine cents, ($58,193 99) which, 
 with one quarter's interest paid last year, and other expenses, exhibits a 
 balance on its interest and expense account, of fifty-three thousand one 
 hundred and ninety dollars and ten cents, ($53,190 10) which the Bank is 
 in advance for. The arrears of interest due, and daily becoming due, on 
 the loans, will, in due time, extinguish this balance. 
 
 The Act of 21st December, 1839, extending the time within which ap- 
 plications might be made, for the benefit of loans, until the 1st June, 1841, 
 contained no provision requiring the guaranty of the city of Cha,rleston. 
 There were also some other classes of cases which the l^oard thought were 
 not covered by the guarantee already given, but which came within the 
 spirit cf the law. Upon calling the attention of the City Council to these 
 cases, and requesting that body to remove all doubt on the subject, by 
 either including all these cases in the guarantee already given, or refusing 
 to do so, an ordinance was promptly passed on the 1 1 th May, by which 
 the same security is given in every case of loans made, or to be made, under 
 the several Acts on this subject. 
 
 The bonds of the State which were in the hands of Messrs. Baring, 
 Brothers & Co. in London, for sale, amounting to two hundred and seven- 
 teen thousand five hundred pounds sterling (£217,500) and which Presi- 
 dent Rose informed the Legislature, in the last annual report, had been 
 recalled, have all been received at the Bank, and, in the presence of the 
 Comptroller General, destroyed. Finding no purchasers for the State 
 stock issued in lieu thereof, except in small sums, which were sold at par, 
 the Board determined to close that account by charging the Bank with the 
 remaining stock. That fund is now credited with the whole amount of 
 the two millions, and the Bank charged with the stock then unsold. 
 
 In directing your attention to the considerable sums of money vested in 
 these loans, and the great amount of property bound for its repayment, it 
 may be well to have in view, at an early day, such measures as niay give 
 the greatest market value to the property mortgaged. If compelled to sell' 
 the whole power of deciding that measure is with this Board. The title to 
 the property is changed by its decree, and it is respectfully suggested, 
 whether an additional price would not be readily giten by a purchaser if 
 assured of immediate possession, and whether some proceeding analagous 
 to that provided for in the Act of 1817, between landlord an^ tenant, 
 might not be advantageously enacted for that purpose. 
 
448 ANNUAL REPORTS OF 
 
 Some legislative provision is necessary to regulate the transfers of this 
 stock, from one purchaser to another. Other State stocks are transferred at 
 the treasury, but as every thing else relating to this fund is transacted 
 through the Bank, it would preserve the unity of the proceedings, and add 
 but little to the duties of its officers, to have this done at the same place 
 the transfers being signed by the President and countersigned by the 
 Cashier. 
 
 SIGNING RILLS. 
 
 In December, 1818, an Act passed the Legislature, authorizing the 
 President and Directors of the Branches of this Bank, under such regula- 
 tions as might be prescribed by this Board, to sign small bills for circula- 
 tion. This Act was repealed in December, 18ot, and the duty temporarily 
 transferred to a clerk. The time limited has expired ; and it is respect- 
 fully submitted to the Legislature, that a new provision shall be enacted, 
 authorizing this Board to have such bills, of and under the denomination 
 of ten dollars, signed by the Presidents and Cashiers of the Branches, or 
 by a clerk, as they may deem advisable,. under such regulations as they 
 may prescribe. The propriety of this recommendation will be apparent, if 
 the following circumstances are considered. In his report of 1st. October, 
 1837, President Colcock, in recommending that this duty should be devolv- 
 ed on a clerk, makes -the following remark: — -but the business of the 
 Bank has, of lateyenrs, been so much increased, that the President and 
 Cashier are at a 1 times fully occupied in business of much greater iujpor- 
 tance than signing these small bills." These duties have been greatly in- 
 creased since then ; and it may be safely said, that at this time, they are 
 twice as great as they were ten years ago. The increase of capital and 
 business by the fire loans the supervision and management of the several 
 funds under the charge of the Bank, the various and multiplied questions 
 and matters which are hourly arising oj.t of them, and the connexions and 
 correspondents they have created, foreign and domestic, leave but little 
 time to bestow on a duty which is merely mechanical, and can be as well 
 and as safely performed by others, who have greatly more time and leisure 
 for it. During the past year, this Board has counted and destroyed 
 ($801,650) eight hundred and one thousand six hundred and fifty dollars, 
 of the old issues, and an entirely new issue of bills will be made as soon as 
 practicable, which will render the provision asked for very desirable. 
 
 AGENCIES. 
 
 By the 12th section of " An Act concerning the Bank of the State of 
 South Carolina," passed December 17th 1831, authority was given to this 
 Board to establish an agency at New York. This power has been acted 
 upon, and the benefit arising from* it in promoting the business of the 
 Bank, has been found so decided, that it has been deemed expedient 
 to ask for a general power to establish similar agencies wherever the inte- 
 rests of the Bank may require them and its means permit. The advanta- 
 ges of such connexions are often very great in regulating exchanges, and 
 proaioting a sound state of trade. 
 
 RESOLUTION ON THE CURRENCY. 
 
 On the 19th December, 1838, the Legislature passed the following 
 resolution. 
 
PRESIDENT AND DIRECTORS. 449 
 
 " Resolved^ That the President and Directors of the Bank of the State 
 <of South Carolina be authorized and requested to take such measures as, 
 in their judgment, may be deemed proper, to preserve at par, throughout 
 the State, the bills which may be issued by any Bank within its limits." 
 
 While this continues the will of the Legislature, the Bank considers 
 itself bound, under instructions, to carry this resolution into eJBFect as far as 
 practicable ; but at the same time, this Board is fully of opinion, that in 
 the late and present condition of its affairs, its power is not adequate to 
 the task, if unaided by other institutions near it. Indeed, if there be 
 not some radical change in the future fiscal action of the State, which will 
 relieve it of exhaustion from the Treasury during the business season, it 
 will require all its resources to preserve itself, and be without means to 
 carry out this policy. If it is intended ever to resort to the circulation of 
 our own notes again, for profit or public convenience, such a measure is in- 
 dispensable to give them currency. From our circulation as a legitimate 
 source of income, the Bank has, in former years, made large profits. 
 These were the profits of the people, and passed into their Treasury to pay 
 their debts. In the present condition of things, however, this source is 
 nearly cut off, and has sunk to nothing comparatively. In the years 
 1833-4-5 and 6, this Bank kept, upon an average, over $1,200,000 of its 
 own bills, in actual circulation — which enabled it to give great accommoda- 
 tion to the people, and carry large profits to the sinking fund — but recent 
 events have contracted and driven this circulation back on the Bank, until 
 it now amounts to only $453,480, and was, in June, as low as $339,000, 
 This has, no doubt, resulted, to a considerable extent, from general causes, 
 arising out of commercial embarrassments, and great changes which have 
 taken place in regard to business generally, especially the business of bank- 
 ing. It is clear that two Bank issues of different values cannot have 
 equal circulation in the same community ; but, if that which has the lesser 
 value has still sufficient credit to be received at .its nominal par in pay- 
 ment of debts, and for ordinary business transactions, it will supplant 
 and drive the other out of circulation. There are now two such Bank 
 issues which are offering for the circulation in the country ; the one emana- 
 ting from the Banks which redeem their bills at the centre of the trade 
 and business of the State, and the other from the Banks that do not so 
 redeem their bills. Charleston is the point where the business of the State 
 concentrates. Here its produce is sold, and here its merchandize is pur- 
 chased. Large amounts of money are necessarily due here from the coun- 
 try, and must be remitted in produce or money. If the latter is remitted, 
 it will not be in the bills of the Banks which are below par, for that is a 
 certain loss, but they will be kept and paid out again from hand to hand, 
 while the bills of such as redeem here, will be taken from the circulation, 
 and sent back as remittances, upon the Banks which issue them. The bills 
 of this Bank have at all times had, throughout the State, the highest 
 value, and have, consequently, been eagerly sought after for remittance, 
 and constantly sent back upon us. In such a state of things, it is next to 
 impossible to force them into general circulation, and this Bank will not 
 only be cut off from a valuable source of fair profit, but be crippled in its 
 means of giving that aid and accommodation to the people which was one 
 of the great objects had in view at the creation of the institution. 
 
 57 
 
450 ANNUAL REPOKTS OF 
 
 Recently, tl^e South-western Rail Road Bank, the Bank of Charleston 
 and the Planters' and Mechanics' Bank, seeing the necessity of a reform 
 and the propriety of providing for the maintenance of a sound and stable 
 currency of equal value in all parts of the State, have, upon consultation 
 entered into an agreement by which it is believed a remedy will be provided 
 and the proper correetive applied. Having proposed to this Bank to co- 
 operate with them, under the instructions of the resolution before recited 
 and the views which we have submitted, and others which might be adduced, 
 this Board did not feel at liberty to withhold their concurrence. As long 
 as they continue to act in concert with us on the basis agreed upon, the end 
 proposed by the Legislature will bo attained. But all such agreements, 
 being voluntary, may be rescinded in a day, and it- is unsafe to rely on them 
 as permanent regulations. If the Legislature adheres to the policy of that 
 resolution, and intends that this Bank shall carry it out, it should be care- 
 ful not to cripple its operations, and to preserve its resources and powers 
 equal to the great duty which it imposes. At the same time, if some gen- 
 eral regulation could be enacted, Jby which no Bank should pay out any 
 bills but its own, it is believed it would promote the object in view, intro- 
 duce a wholesome reform in Banking, by which each Bank would have to 
 contribute, in proportion to its capital and business, to the furnishing and 
 preserving a wholesome, sound, and stable currency ; and the public have 
 the most perfect security possible against future suspensions of specie 
 payments, and the fluctuations in the value of bank paper, and for its cer- 
 tain convertibility and redemption. 
 
 Your attention is again respectfully called to the debt of the Columbia 
 Female Academy, released by the Legislature in Dec, 1838. The princi- 
 pal of that debt was two thousand eight hundred and sixty-one dollars, 
 eighty-nine cents, as reported by President Colcock, to your honorable body, 
 in Dec, 1834 and 1835. This sum has been, by an act of the Legislature, 
 taken from the capital of the Bank, and should be either replaced, or that 
 amount be credited by the Comptroller General, and taken frdm the capital 
 charged against it. 
 
 In the administration of its affairs during the past year, the Board have 
 been governed by an earnest desire to carry out the objects for which it is 
 believed the Bank was created by the State, viz.: to promote the con- 
 venien<;e and advance the prosperity of its citizens. ' Believing that gains, 
 in the shape of dividends, was but a secondary consideration, they have 
 not hesitated, to submit to smaller profits in a year of peculiar hardship 
 and suffering, for more substantial public good. While they could not 
 foster enterprise, nor aid industry, by loans, they have been careful to de- 
 stroy no one ; but as far as was compatible with the public exigencies, and 
 the safety of their debts, have extended every forbearance practicable to 
 those of their debtors who, from accident, misfortune, or the casualities of 
 the season, have been disabled for a time, from meeting their obligations 
 as they fell due. Although three per cent, below the par of our own, the 
 bills of the suspended banks were received at our counter, because their 
 refusal would have added materially to the embarrassments of the commu- 
 nity ; and, during the suspensions, for the same reason, the issues of our 
 one and two dollar bills was continued, although they were habitually col- 
 lected and returned upon us for specie. With a like view, when the period 
 approached for the payment of the taxes, which were required in specie, or 
 the bills of specie-paying banks, we felt bound to make an effort to put our 
 
 I 
 
PRESIDENT AND DIRECTORS. 
 
 451 
 
 bills within reach of the people of the country. Small amounts of them 
 were let out at Columbia, under the promise that they should be kept, and 
 paid in for taxes ; and it was not until the almost immediate return of 
 these bills for specie, frequently in the very packages in which they left 
 our vaults, demonstrated the insufficiency of such precautions, and the im- 
 practicability of carrying our experiment into successful operation, that the 
 effort was abandoned. 
 
 All of which is respectfully submitted. 
 
 F. H. ELMORE, Preside^U 
 Bank of the State of South Carolina. 
 
 Nov. 16, 1840. 
 
452 
 
 ANNUAL REPORTS OF 
 
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PRESIDENT AND DIRECTORS. 453 
 
 (1841.) 
 
 To the Honorable the Senate and House of Representatives of the State of 
 
 South Carolina. 
 
 The President and Directors of the Bank of the State of South-Caroli- 
 na respectfully report : 
 
 That the operations of the Bank, from the 30th of September, 1840, to 
 the 1st October, 1841, have produced a profit of two hundred and thirty- 
 six thousand nine hundred and seventeen dollars sixty-four cents. ($236,- 
 917 64.) 
 Of this, there has been paid for interest on the > ,^^^ ^^o 60 
 
 Bonds for the Fire Loan held in Europe. .\ ' ^ 
 For interest on the Stock sold for the second > 
 
 Million Fire Loan _ \ 49,608 53 
 
 Carried to profit and loss, on old debts at Pa. ) 
 
 rent Bank _ _. \ 7,002 49 
 
 Carried to profit and loss, to cover sundry old ^ 
 
 debts lost at the Columbia Branch, from V 17,044 22 
 
 1816 to 1833 ) 
 
 Transferred to Sinking Fund _ 106,000 00 
 
 $236,917 64 
 
 We would here remark, in justice to the President and Directors of the 
 Columbia Branch, and their immediate predecessors, that the foregoing 
 sum of seventeen thousand and forty-four dollars and twenty-two cents, 
 ($17,044 22.) now carried to profit and loss from their Books, is the accu- 
 mulation of cases from 1816 to 1833, old debts, known to be bad and lost 
 for many years, as will appear by a Report of the Committee of Investiga- 
 tion, made in 1839, and published at pages 169-70, in the collection of 
 documents relating to the Bank, just printed under direction of the Presi- 
 dent, by order of your honorable body. 
 
 The past year has again been one of great pressure and monied difficul- 
 ty. The crop, in most parts of the State, was a short one, and in some, it 
 proved a total failure. The country had not yet recovered from the sud- 
 den and unexampled prostration that followed that period of extravagant 
 prices, and unbounded credit, which had seduced so many, even of the most 
 prudent, into contracts and undertakings beyond their means, reduced by 
 the sudden revulsion, to meet and discharge. And although, immediately 
 upon the change in their condition, with a resolution beyond former exam- 
 ple, the people prepared themselves to meet the exigency, by vigorous in- 
 dustry and retrenchment ; yet, the evil was of too great magnitude, to be 
 easily or soon remedied. Years of patient labor and rigid economy alone, 
 aided by a judicious forbearance on the part of their creditors, could bring 
 the remedy, and enable very many of the best of our citizens to retrieve 
 their affairs, and meet their engagements. This virtuous and honorable 
 course is, as fast as the state of the times will permit, working its natural 
 consequences, and the country, under it, is slowly, but surely, recovering 
 from its difficulties, and freeing itself from debt. The business which 
 passes through this Institution furnishes evidence that the pressure has 
 uot been as great in the present, as the last season, while it has been equal- 
 ly evident, that with a maaifest disposition on the part of the debtor's to pay, 
 
454 ANNUAL REPORTS OF 
 
 tlieir ability has been greatly limited by tlie short crops, and the very low 
 prices of most of our agriculttiral productions. But there are indications 
 which can hardly mislead us, that induce us confidently to expect an im- 
 proved state of affairs for the ensuing year, and to calculate on considera- 
 ble increase of profits upon its business. 
 
 The spirit of inquiry which has arisen in regard to Banks, and been espe- 
 cially directed towards the Bank of the State, has induced this Board to 
 spread all the information in their power before the Legislature, and 
 through it, before the people; and in addition to the usual exhibits of the 
 Report of this, and that made to your honorable body last year, and to the 
 mass of important documents published under your instructions by the 
 President of this Board, they have caused to be prepared from the Books, 
 a tabular statement of the fiscal action of this Bank, from its foundation 
 to the present day. To that table, exhibiting on its face, at one glance, the 
 essential features of its operations and their results, your attention is espe- 
 cially invited.* It will be seen from it, and the reports made to the Legis- 
 lature, from year to year, what has been the policy which has always go- 
 verned its administration, and under which, while incalculable benefits have 
 been conferred on the people, still more striking advantages have resulted 
 to the State, in a fiscal point of view. It will be borne in mind, that the 
 Bank was chartered in 1812, after the country had undergone intense suf- 
 ferings from the embargo, and the war just begun with Great Britain. It 
 was chartered upon a petition' from the people, for some measure of aid and 
 relief: in responding to which the Legislature set forth, in the preamble 
 to the charter, that it was " deemed expedient and beneficial both to the 
 State and the citizens thereof, to establish a Bank, on the funds of the State, 
 for the purpose of discounting paper and making loans for longer periods 
 than have heretofore been customary, and on security different from what 
 has hitherto been required." 
 
 The policy thus indicated was more distinctly developed in the enact- 
 ments of the Charter ; and under the beneficent administration of its ven- 
 erable founder, and most able President, Mr. Stephen Elliott, that policy 
 assumed its distinct form. Under each suGceeding administration it has 
 remained the same in principle, receiving modifications to suit the changes 
 of times and circumstances. No task could be more grateful, than to trace 
 out, in all their beneficent results, the operations of this institution ; but the 
 time and the occasion will only allow us to glance at them, leaving it to 
 others who may be so inclined, to pursue the developement. Important as 
 was its aid to the commerce of the State, it was upon its agricultural and 
 mechanic interests that the most beneficial influence was manifested. To 
 these it has at all times given a steady and efficient support, enabling them 
 to overcome difficulties incident to their pursuits, which, without this assist- 
 ance, would have been insuperable. Some it has assisted in critical periods 
 of their affairs, to carry on their business, and others, to accomplish what 
 added greatly to their own fortunes, and to the resources of the common- 
 wealth. Many it has rescued from needy and merciless creditors, and ena- 
 bled, by timely assistance, to work through impending ruin. It has saved 
 to the State many useful citizens, who, without its aid, would have been 
 broken up and compelled to emigrate. It has kept within our own limits 
 thousands of slaves to improve our lands, increase our wealth and pay taxes 
 for the support of the State. And while it has stimulated agriculture, 
 supported trade, and sustained industry, in all its branches, and, in in- 
 * See this table in Report of 1847. 
 
PRESIDENT AND DIllECTOllS. 455 
 
 stances without number, shown the tenderest care for the welfare of the 
 citizen, its history is not stained by a single instance of vindictiveness or 
 oppression. But, proud as are these trophies for its character, they are 
 not more striking in their speculative bearing, than are those which have 
 resulted to the State in connection with her finances. Before the charter 
 of this Bank, the funds of the State were either invested in Bank Stocks 
 and Stocks of the United States, or were in the Treasury. /Those invested 
 in Stocks, brought a moderate incom'e to the State, and those in the Trea- 
 sury were unproductive, and not always secure. Since the charter of this 
 Institution, it has been the great fiscal agent through which the transac- 
 tions of the Treasury have passed.^ It has kept the funds and disbursed 
 them, without charge and without the loss of a cent. Those which were 
 in Bank and other Stocks, and the balances in the Treasury of several 
 years, were consolidated into a capital for this Bank. In their employment 
 as such, while they have dispensed upon the people the benefits before 
 enumerated, and borne the expenses of .the parent Bank and the Branches, 
 they have, from their profits, paid for the State the following amounts, viz : 
 
 Jnto the State Treasury, __-_$592,001 29 
 
 Interest on State Stocks and Bonds . 1,644,682 33 
 
 State Six Per Cent. Stocks, 1820,-_' -_ $00,000 00 
 
 Andhave remaining in Sinking Fund. ^ 198,206 22" 
 
 Showing a profit, from 1814 to 1841, of $3,234,889 84 
 
 The Interest on the -Capital given to , the Bank, for the 
 same time is '_ . --_ 2,047,008 90 
 
 Showing an excess of profits, over seven per cent, on the 
 Gapi^^al, of . ..$1,187,880 74 
 
 But as the State has deposited in the Bank other funds which have been, 
 used in its operations, a full allowance of interest may be charged on them. 
 In this estimate, the Sinking Fund is not included, (except that part de- 
 rived from the Surplus Revenue.) as that did not come from the State, but 
 from our own profits. The account will then be thus stated : 
 
 If from the profits of the Bank ..„ .$3,224,889 84 
 
 we deduct interest on Capital, $2,047,008 -90 
 
 Interest on Surplus Revenue, 328,22 1 1 
 
 And interest on Fire Loan, 181.256 86 
 
 '- 2,556,480 86 
 
 The nett gain of the Bank, over seven per cent., for the 
 State, is- -.--:.. ------_: .-.___:. 1. ._..:._. $678,408 98 
 
 And if, again, to the interest above charged, a charge be added for inter- 
 est on the Sinking Fund, taking it as of the 1st of April of each year, which 
 is taken as the fairest amount to charge interest on, (that being the day of 
 paying the semi-annual dividends of interest on the public debt,) the account 
 will stand thus : , 
 
 Profits of the Bank, . $3,234,889 84 
 
 Interest on Capital, Surplus Revenue, and 
 Fire Loan,... . --_.. .$2,556,480 86 
 
 Interest on Sinking Fund, (its ov/n profits.) • 485,524 41 
 
 3,042,005 27 
 
45 6 ANNUAL REPORTS OF 
 
 Making the balance of profits, over seven per cent on all 
 these funds, the sum of- $192,884 57 
 
 But to give an accurate idea of the actual state of this account between 
 the Bank and the State on the 1st October, 1841, we should state that, in 
 addition to these profits, thus already declared and set apart to the public 
 use, there are other items which may be fairly claimed, viz : 
 
 Loss of notes issued, at least $120,000 00 
 
 Arrears of interest on Fire Loan Bonds, accrued, but not 
 due — on bonds, and notes, and judgments, which are un- 
 questionably good, about . 70,000 00 
 
 To which may be added the debt of the Columbia Female 
 Academy, released by the Legislature in 1833, with interest, 3,867 78 
 
 Interest on Greneral Sumter's debt, 9,625 00 
 
 $203,512 78 
 From these sources we may safely count on enough, full four times over, 
 to make good every bad or doubtful debt, and to leave to the Bank its 
 whole capital untouched. 
 
 This table also exhibits the fluctuations which have occurred in the 
 circulation of our Bills, in a striking and instructive point of view. With- 
 out the aid of a considerable circulation of its own, the profits will necessa- 
 rily diminish, and may at length contract its business to the mere loaning 
 its own capital ; from the profits of which must be borne all losses incident 
 to banking, and all the expense of conducting its business. It will be 
 seen, by reference .to the table, that in the earlier periods of its existence, 
 the bills actually circulating were more. in amount than the capital of the 
 Bank, and that they did not fall much below it, until the chartering of the 
 present number of Banks, gave to them the means of taking from it a 
 large portion of the circulation and its profits. Even that competition, 
 however, would not keep down our circulation to the small amount it now 
 maintains, if it were properly divided and regulated. Wherever Bank 
 paper has different values, that having the highest is driven out, and that 
 which maintains the lesser will keep the circulation. The place of test is 
 the place of settlement, and as Charleston is that point for the whole State, 
 the notes of those Banks which are not at par there, will keep the circula- 
 tion and drive ours home. To such an extent has this law of trade opera- 
 ted on us, that in June, 1840, our circulation, with an operative capital 
 of more than $2,500,000, was reduced to $339,000 ; charging against us 
 all the notes we have ever issued from the commencement of our operations. 
 If from these, a reasonable allowance is made for those lost and destroyed, 
 the actual amount in circulation did not probably exceed $200,000, or one 
 dollar for every twelve and a half of capital. It is not perhaps desirable, 
 that our issues should ever rise as high as they have been ; but a fair pro- 
 portion of the circulation of the State, and of the profits derived from such 
 a source, is the due and right of the people, who own the Bank, and pay 
 the expenses of a paper circulation. In our Report of the last year, we 
 submitted some views on this subject, in remarking on the Resolution of 
 the Legislature of 19th December, 1838, which "authorized and requested 
 this Board to take such measures, as in their judgment may be deemed 
 proper, to preserve at par, throughout the State, the Bills which may be 
 issued by any Bank within its limits." No cause has been seen to change 
 any of those views, but every day has strenthened the convictions then 
 expressed. We then stated our inability, single-handed, to do the will of 
 
PRESIDENT AND DIRECTORS. 457 
 
 the Legislature ; and we informed you at the same time, that by a volun- 
 tary arrangement of the Bank of Charleston, the Planter's and Mechanic's, 
 and South-Western Rail Road Banks, measures were taking which would, 
 for the time they subsisted, effect that end. But we then stated that "all 
 such arrangements being voluntary, may be rescinded in a day, and it is 
 unsafe to rely on them as permanent regulations." The event justified the 
 remark, as the agreement was dissolved shortly after, and the whole matter 
 is in the same condition it was when the Resolution of 1 838 was passed. 
 We have now to repeat, that the measure which appears to us to promise 
 the best corrective, (and whether that is within the power of the Legisla- 
 ture is not within our province to decide,) would be some regulation by 
 law, "that no Bank should pay out any Bills but its own ; which it is 
 believed would promote the objects in view, introduce a wholesome reform 
 in banking, by which each Bank would have to contribute, in proportion to 
 its capital and business, to the furnishing and preserving a wholesome, 
 sound, and stable currency ; and the public have the most perfect security 
 possible, againt future suspensions of specie payments, the fluctuations in 
 the value of bank paper, and for its certain convertibility and redemption." 
 
 The collection of the debts due to the Bank and its branches is becom- 
 ing every day a more important subject of consideration. The present 
 system is one of great inconvenience and risk. The debtors are scattered 
 over all parts of the State, and when a note, or other cause of action, is 
 sent to suit, it in a great measure is lost sight of, especially if the party 
 defendant lives in a remote district. If the principle which was recognized 
 in the Charter, in the 4th Rule of the 1st section, viz : that every applica- 
 tion for a loan should be accompanied by a power of attorney to confess 
 judgment, in case of failure to pay, was so modified as to allow suit to be 
 brought in the Court of the district in which the contract is made or 
 matures, under such regulations as will protect parties from injustice, it 
 would enable the Bank, by books properly kept, and a system of regulations 
 with the collecting officers, properly digested, to have at all times a perfect 
 knowledge of the actual condition of their cases, and a perfect control over 
 them. We would also further suggest, that when property is to be. sold 
 by any Sheriff, on which the Bank has any lien, that he should be required 
 to give notice of the fact to the parent Bank, or the Branch to which the 
 lien appertains. We have been liable, and are still liable, to great losses, 
 from the non-existence of such a, regulation. 
 
 By the 3d clause of the "Act to amend the Charter of the Bank of the 
 State of South Carolina," passed the 18th day of December, 1840, the 
 President and Directors were directed to restore to its capital, the sum of 
 $2,861 89, the amount of a debt released to the Columbia Female Acade- 
 my, by the Legislature, in December, 1833. As that sum was in fact, 
 taken out of the profits which belonged to the Sinking Fund, and was as 
 a part of it pledged to the public creditors, it should be paid from the 
 Treaury to that fund, so as to preserve the faith of the State, and to restore 
 to them what is their proper due. 
 
 AH of which is respectfully submitted. 
 
 F. H. ELMORE, President 
 
 58 
 
458 
 
 ANNUAL REPORTS OF 
 
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PRESIDENT AND DIRECTORS. 463 
 
 (1842.) 
 To the Honorable the Senate and House of Representatives of the State of 
 
 South- Carolina : 
 
 The President and Directors of the Bank of the State of South Carolina 
 respectfully report : 
 
 That the operations of the Bank of the State of South Carolina, from 
 the 30th of September, 1841, to the 1st of October, 1842, have produced a 
 profit of two hundred and seventeen thousand, three hundred and fifty-four 
 63-- 100 dollars, $217,354 63 
 
 Of this there has been paid. 
 
 For interest on the Fire Loan Bonds 
 
 in Europe, --. $50,000 00 
 
 For interest on the stock sold of the Se- 
 cond Million of Fire Loan 60,769 42 
 
 Carried to profit and loss, 6,585 21 
 
 Transferred to Sinking Fund, 1 00,000 00 
 
 '- $217,354 63 
 
 At the beginning of the present fiscal year there were indications that 
 we should have a more active and prosperous condition of commerce, and 
 increased prices for the staple productions of our industry. These pros- 
 pects, unhappily, have not been realized, and we have passed through 
 another year of trial and difiiculty. The prices ofoui; marketable products 
 have ruled exceedingly low ; business transactions have been greatly con- 
 tracted ; great difficulty in meeting engagements experienced ; and much 
 embarrassment, and even distress, been felt throughout the country. From 
 this condition of depression and embarrassment, the profits of all pursuits 
 have been curtailed, and no class of business has been able to realize the 
 anticipations with which the year was opened. In this condition of con- 
 traction, depression, and diminished profits, no pursuit has been more 
 materially affected than the business of Banking. 
 
 In "addition to the general causes which have conspired to reduce the 
 profits of Banking generally, our's have been diminished for the current 
 year, by the payment of two hundred thousand dollars of the State 
 debt, on the 1st of January last, and by the expense incurred for an entire 
 new issue of our notes for circulation. 
 
 It is a fundamental principle in this State, to preserve the circulation of 
 her Banks from taint of suspicion. A currency of bank notes, free from 
 fluctuations, and at all times convertible on bemand, into specie, is of the 
 highest consequence. The policy which has always characterized this 
 State, in its endeavors to establish and maintain such a currency for its 
 people, is profoundly wise, as it inculcates the only principles of good faith 
 and well directed exertions which must be the basis of all real prosperity. 
 It has been the constant endeavor of this Board to carry out these princi- 
 ples, in accordance with the known wishes of the State. We have much to 
 fear from the fluctuations of Bank issues, leading us at one time, by un- 
 justifiable expansions, into wild speculations, and at another, by sudden 
 and sometimes unnecessary contractions, into the most ruinous derange- 
 ments of business, and sacrifices of property. An amount of circulation 
 which is measured by, and respresents, the real business transactions of the 
 country, which expands only as that business increases, and is contracted 
 only as that business diminishes, is the one which will, in the long run, 
 most effectually promote its true prosperity, and solid improvement^ With 
 such a circulation, all pursuits of industy have their natural operation, 
 and are remunerated accordingly ; commerce follows, regulated channels 
 
464 ANNUAL KEPORTS OF 
 
 for legitimate profit : and the people, undisturbed by artificial fluctuations, 
 steadily progress in a course of sober, steady and successful prosperity. 
 Over this career. Banks, if judiciciously administered, exercise a whole- 
 some influence ; they become the instruments of business, and by the notes 
 they issue, furnish the medium of its transactions, neither exceeding nor 
 falling below what that business requires. The difficulty in procuring that 
 judicious administration is very great, even where the Banks are few, and 
 becomes much greater where these institutions are numerous, when also 
 the danger of their becoming disturbing causes to, instead of useful auxilia- 
 ries of a safe business, is greatly increased. No one institution can lay 
 down a rule for so conducting their afi"airs as to perfect the system, and 
 perhaps all regulations would be inadequate to the removal of every evil 
 from a system in which more or less of evil is inherent ; but this Board 
 cannot refrain, under a sense of duty, from repeating here, again the opin- 
 ions expressed in their reports of the two last years, that much may be 
 done for maintaining a sound and stable currency, at all times, safe and 
 convertible, by each Bank paying no bills out but its own, in all its trans- 
 actions. Their notes would then be more likely to represent their actual 
 business with fidelity, and they be, exactly, in that proportion, prepared 
 with means for their prompt redemption on presentation ; .no false credit 
 would give circulation to the paper of a doubtful or unsound Bank, by the 
 virtual indorsement it has, in being received and paid away by another 
 institution in good credit ; suspension would scarcely occur, and if it did, 
 would be necessarily more limited in its extent, and in its consequences 
 comparatively harmless ; while the community would have the security of 
 their joint capitals for their issues, of which the aggregate circulation which 
 they use is constituted. 
 
 We also beg leave to lay before your Honorable Body a copy of the 
 Report of the Commissioners of the Fire Loan. It gives a condensed 
 view of their useful labors, extending over nearly four years of service ; the 
 disbursement of more than a million of dollars, and the reconstruction of 
 more than 130 principal buildings, many of which are of great size, and 
 some cover several tenements. The fidelity and intelligence with which 
 this laborious and responsible duty has been discharged, is attested by the 
 great satisfaction expressed by all parties interested, and by the solidity of 
 the edifices constructed, conforming in materials and workmanship with 
 the requirements of the laws of the State, and the ordinances of the City of 
 Charleston. 
 
 This Board would also call your atttention to a change in the law regu- 
 lating the deposites in this Bank by Public ofiicers, so far as regards the 
 Sherifi's of Charleston, Columbia and Camden, efi"ecled by the 64th Section 
 of the Act passed on the 21st Dec, 1839. By the Act of 1817, returns 
 were received in their official capacity, with the names of the persons on 
 whose account it had been received, for the preceding month. This re- 
 quirement is dispensed with in the act of 1839, which has been construed 
 as a repeal of the regulation, and deposites made by the Sheriff of Charles- 
 ton weekly, most usually in one sum, and by a check on another Bank, 
 which dajiosites are generally checked out in a day or two, and thus entail 
 much trouble and inconvenience on the officers, while they yield less ad- 
 vantage to the Bank than the Legislature intended. If made daily, as 
 collected, and in the funds with which they are paid, the intention of the 
 Legislature will be effected, and the Bank derive a benefit from the measure 
 which will fairly compensate the State for the risk and trouble incurred. 
 Respectfully submitted, 
 
 F. H EhMOn^:, President. 
 
PRESIDENT AND DIRECTORS, 
 
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470 ANNTTAL REPORTS OF 
 
 (1843.) 
 
 To the Honorable the Senate and House of Beprese^itatives of the State of 
 
 South Carolina: 
 
 The President and Directors of the Bank of the State of South Carolina 
 respectfully Report : 
 
 That from the 30th day of September, 1842, to the 1st day of October, 
 
 1 843, the profits of the Bank have been $25 1 ,876 03 
 
 Of this, there has been carried to the credit 
 
 of the interest and expense account of the 
 
 Fire Loan (in Europe,) $67,8 1 4 55 
 
 To interest on 6 per cent stock, 58,817 62 
 
 " Profit and Loss. 25,143 86 
 
 " Sinking Fund, .- --.100,000 00 
 
 $251,876 03 
 
 On the above statement it is to be remarked, that the profits of this year 
 exceed those of the last by $34,521 40. That of these the considerable 
 sum of $25,143 86, has been absorbed to cover old commercial debts, the 
 chief part of them the result of the disasters of 1837. 
 
 That in addition to the $100,000 carried to the Sinking Fund, we have 
 carried to the credit of the Expense account of the Fire Loan (H.) the sum 
 of $67,814 55, being $17,814 55 more than was credited to this account 
 last year. Under the directions of the Act of 1838, all the interest col- 
 lected from the borrowers of the Fire Loan, is credited to the expense ac- 
 count of this fund. The interest collected this year, amounted to $67,8 14 
 55, the sum credited, and, as we paid for that account only $56,173 55, the 
 remaining $10,641 of these receipts go to diminish the balance standing to 
 the debit of that account. Thus the Bank has made this year, over and 
 above the sums paid for interest, and profit and loss, $110,641, against 
 $100,000 last year. 
 
 In submitting the general and particular statements showing the general 
 condition of the Bank, and the actual position of each branch of its business, 
 the Board will remark, that it has not exhibited for many years a more 
 healthful, vigorous, or sound state of its afiairs. The profits of the past 
 year show an increase over those of several preceding years, and manifest a 
 returning ability in the community to meet their engagements. Heavy 
 losses have been sustained by most, if not all, our institutions in the late 
 revulsions ; profits have been diminished, and every discouragement has 
 been upon the country. Our profits have undoubtedly felt the efifects of 
 these causes ; but with the other institutions situated in this great highway 
 of commerce for the State, it is believed we may compare results without 
 disadvantage. The profits of several if not most of the Banks of Charles- 
 ton, for several years before the reverses of 1837, and some of them even af- 
 ter it, had reached the high point of 10 per cent. ; but under the pressure 
 of the disasters of the subsequent years, they have none of them divided 
 more than 6 per cent., more of them 5 per cent., and one 4 44-100 per 
 cent. 
 
 This Board cannot but also advert to another result, as in their opinions 
 going far to solve an important problem connected with this institution. 
 It has been believed by many, that no institution administered upon the 
 principles of this Bank, can maintain, successfully, the proper functions of 
 a Bank. In other words, that a Bank which gives accommodation on bonds 
 
PRESIDENT AND DIRECTORS. 471 
 
 and mortgages, or on securities having periods longer than the usual 60 
 days mercantile paper to run, cannot safely issue notes or maintain a cir- 
 culation, and therefore becomes, in effect, a loan office. If the whole busi- 
 ness of a Bank was confined to such loans, there would be force in the ob- 
 jection. If its whole capital and credit was absorbed, in bonds or notes at the 
 long periods required for the accommodation of the planting interest, there 
 would be extreme hazard at all times, and in some an utter impossibility of 
 carrying on the business successfully. But we areunderno necessity of adopt- 
 ing either the extreme of vesting all the capital and resources of the Bank 
 in mercantile transactions, nor of putting it in the bonds or long notes of 
 planters, farmers and mechanics, any more than we are to exclude them en- 
 tirely from the Bank, as we would do if we put them on the short discounts 
 and regular reductions of the 60 days so universally adopted for mercantile 
 accommodation. The difficulty is, in finding and adhering to the propor- 
 tion of each which the Bank may safely take — a difficulty very considera- 
 bly enhanced by the facts that the changes in business, and the money 
 operations of commerce, are so very frequent and often sudden, that the 
 proportion which may be best suited to the business of one year, is not the 
 one adapted to the next ; and also, that when one interest is more pressed 
 than the other, its importunities for an accommodation disproportioned to 
 its real claims, and to the safest business of the Bank, are very difficult to 
 resist. Still, we are warranted in believing that a Bank may be success- 
 fully sustained by the State, which will divide its accommodations between 
 the several pursuits, interests and classes of the people, and which may safe- 
 ly and profitably loan a part of its funds on bonds and mortgages, and long 
 notes, and yet perform the functions of a Bank of circulation, promptly re- 
 deeming its notes with specie. We feel warranted in this opinion, by the 
 events of the suspension in this State in 1839. Of the seven Banks in 
 Charleston, six were purely commercial, rejecting bonds and such securities 
 in their operations ; and of these, five suspended specie payments, while 
 this Bank met and redeemed in specie, all its notes as presented, and at the 
 same time paid off more than a million of dollars of other liabilities. (See 
 Report O/1840.) 
 
 There is one view which may not be without its value at this moment, 
 and which justice to all concerned will not permit us to withhold. It is of the 
 profit and loss account of this Bank, in its bearing on two classes of its 
 transactions, the one founded on real estate and slave property, and the 
 other on its commercial business, including under that head, all commer- 
 cial transactions of accommodation notes, business paper, and exchanges. 
 Of the profits on these respectively, it may be remarked that commercial 
 business is absolutely as essential to the Bank, as is breath to the body ; 
 and of the latter, that it is to that breath, the body which gives strength 
 and maintains vitality. The commercial business is that which moves the 
 most briskly, gives the most frequent transactions, brings the capital most 
 constantly under control, enables the Bank to shape its business most 
 readily to circumstances, and yields the greatest profit. Without it, the 
 operations of the Bank could scarcely be maintained. But It is a business 
 also, where credit may stand for capital, or mixed with it, and scarcely to 
 be distinguished from it ; where, along with the greater profits, come great- 
 er risks, and greater losses ; where appearances may be and sometimes are 
 maintained to the last moment, which give the very highest credit and con- 
 fidence, because the easy conversion of the means of the party into»money, 
 
472 ANNUAL REPORTS OF 
 
 even at sacrifices, to raise the small proportion of the Bank renewals, ena- 
 bles deception to be kept up until almost nothing is left ; and when the end 
 can no longer be avoided, little is found to meet the indebtedness. 
 
 Although slower in payments, and although the profits are not in ap- 
 pearance so great in the business founded on the lands and slaves of the 
 planter, mechanic, and tradesman, yet the property is visible, and cannot 
 "be so easily wasted without being detected ; the losses and risks are small- 
 er, and when a failure does take place, the estate is there to meet it. Thus, 
 perhaps, in the long course of years, taking all vicissitudes together, and 
 making every fair allowance, it will be found, that in reality, the one busi- 
 ness is as profitable as the other, so far as the dividends on the capital is 
 concerned, for if the commercial branch is in the first place more lucrative, 
 its losses are greater, and if the agricultural is less hazardous, it is also 
 much slower. The statement of this account, from the beginning of our 
 operations, verifies the views we have submitted. The whole amount car- 
 ried to profit and loss, since its establisment, by the Bank, is about 
 
 $473,558 66 
 Of this, what is known : 
 
 . As commercial is $253,551 68 
 
 As agricultural is- _ _ 39,609 24 
 
 As mixed or uncertain is 131,086 46 
 
 As of mechanics and tradesmen 49,3 1 1 28 
 
 $473,558 66 
 
 In the course of its operations the Bank frequently becomes the proprie- 
 tor of considerable sums of the State Stocks. Sometimes it has surplus 
 and unemployed funds, which it invests in such of these as have to be ex- 
 tinguished by its Sinking Fund, and they thus become in efiect a part of 
 that fund. At other times they are received in payments made to the 
 Bank. They constitute for investment, in this way, a very desirable re- 
 source, because, while they are in effect, payments of so much of the public 
 debt, (as in no instance has any Stock thus purchased ever been permitted 
 to go again into the market,) at the same time, in case any of those emer- 
 gencies to which Banks as well as individuals are subject, should render a 
 resort to them necessary, they constitute a resource at all times available, 
 either by sale, or as pledges for temporary loans. While at some periods 
 the possession of these Stocks may be highly desirable, at other times it is 
 equally so to deliver them up to the Comptroller General, and to have 
 them cancelled, and the Sinking Fund credited with their amount. The 
 operation should be one left to the discretion of the Board of Directors, for 
 if it be made compulsory, it would take from the Stocks one of their high- 
 est recommendations, viz., a resource in case of difficulty, and therefore it 
 would be prudent and proper on the part of the Bank, frequently to decline 
 purchasing or taking them in payment, when, but for such condition, it 
 would be highly desirable to obtain them. The fact that no resale of any 
 Stocks yet taken in by the Bank has ever been made, proves clearly that 
 there is little likelihood they would be resold hereafter. Another reason 
 why it should not be compulsory is, that some of the Stocks now held are 
 of loans payable in years subsequent to other loans for which the sinking 
 Fund is pledged ; and as they constitute in effect a part of that fund, and 
 would, if its cash were deficient, be of its assets to make up the deficiency. 
 
PRESIDENT AND DIRECTORS. 473 
 
 they ought not to be cancelled before the prior liens are discharged. This 
 may be considered as pressing the doctrine of State faith very far, but there 
 is no point of national policy or obligation, which should be guarded with 
 more scrupulous observance, than the strict fulfilment of the contracts of 
 the State. 
 
 The situation of the Bank at this time is such, that if power was now 
 vested in the Direction, they would be prepared to cancel such of the cer- 
 tificates of Stock as they now hold, and which could be so disposed of upon 
 the principles laid down. There is only one contingency which at present 
 would be likely to affect their views in this particular. Applications have 
 been made for several years for the establishment of Branches at Hamburg, 
 Cheraw, and Georgetown. If it should be deemed advisable by the Legis- 
 lature to direct one to be established at either of these points, that circum- 
 stance would render it prudent not to act on the power to cancel until the 
 effect of such a measure could be seen, and it was ascertained that the aid 
 of the Stocks was not needed. 
 
 This Board cannot close this Report without again calling earnestly to 
 your attention, the recommendation submitted by them in their Annual 
 Report of 1841, in relation to the collection of their debts. The subject 
 grows in importance, and the convictions upon this Board are strengthened 
 every day, that without some such regulation the Bank will be subjected 
 to many losses. A deep sense of duty compels them to repeat all that they 
 have said heretofore on this point. 
 
 All of which is respectfully submitted. 
 
 F. H. ELMORE, President, 
 
 Nov. 23, 1843. 
 
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PRESIDENT AND DIRECTORS. 479 
 
 (1844.) 
 
 To the Honorable the Senate and House of Representatives of the State of 
 
 South Carolina. 
 
 The President and Directors of the Bank of the State of South Caro- 
 lina respectfully report : 
 
 That from the 30th day of September, 1843, to the 1st day of October, 
 
 1844, the profits of the Bank have been..-- .._ $23 1,237 62 
 
 Of these, there has been applied to the in- 
 terest and expense account of Fire Loan 
 
 (in Europe) $56,777 88 
 
 Do do. do. (6 per cents, home,). 54,637 35 
 Carried to Profit and Loss 19,822 39 
 
 Carried to Sinking Fund $100,000 00 $231,237 62 
 
 The diminution of profits, as compared with last year, is more apparent 
 than real, as nearly the whole difference arises from the loss of the inter- 
 est which would have been received from the Treasury for the State 
 Stocks, which were held by the Bank, and cancelled under the provision 
 of the Act of the last Session. These Stocks amounted to $417,008 29, 
 and the Public Debt stands, by the aid of this Bank, that much less against 
 the State, than it did at this time last year. Another circumstance has 
 operated more disadvantageously to the Bank, during the past season, than 
 usual ; we refer to the advances required for the Treasury, before the taxes 
 are collected and paid in. These advances were required earlier, and in 
 larger amounts than usual. The eifect is in a two fold view disadvanta- 
 geous, by drawing from us, at the most active period of business, consid- 
 erable sums of our own funds, while our responsibilities are increased, at 
 the very time that every Bank finds it most dangerous to be exposed. A 
 curtailment of our business, much beyond the funds actually withdrawn, is 
 the necessary consequence ; and with that curtailment, a loss of profits, be- 
 yond the interest of the advances. 
 
 Appended to this Report, will be found a communication from the Pres- 
 ident and Directors of the Columbia Branch, giving an exposition of the 
 principles and policy of its management. It is submitted to the Legisla- 
 ture for its consideration. 
 
 Under the authority and instruction of the Act of the Legislature, rat- 
 ified on the 19th day of December last, entitled "An Act to establish the 
 office of Assayer," the Board have elected J. Lawrence Smith, M. D. a 
 gentleman highly qualified, and of Charleston, to that ofilce ; and also 
 established regulations for the performance of its duties, which are ap- 
 pended to this Report, marked K. 
 
 In order to give the fairest opportunity of testing the advantages of this 
 measure, this Board resolved to take all the gold and silver assayed by Dr. 
 Smith, which might be offer'^d, at his assay valuation, allowing at the rate of 
 101 3-10 cents per pennyweight for fine gold. This was about three cents 
 below its value at the mint, and was at first adopted to cover risk, expense 
 of transmission, insurance and interest. A few transactions satisfied the 
 Bank that the assays were very accurate, and that the whole operation 
 might be covered at about one per cent. ; and we now take pure gold at 
 that rate of deduction. The quantity offered has not been large, but in- 
 
480 ANNUAL REPORTS OF 
 
 creases ; and gives promise of still greater increase. It is found to be the 
 best kind of remittance from the interior ; and will, if properly fostered 
 add something to the trade of our city and towns. 
 
 In compliance with the Act of the 19th of December last, the stocks of 
 the State held by the Bank in Charleston were, on the 19th day of Janu- 
 ary last, delivered to the Comptroller General to be cancelled. A state- 
 ment of these is submitted, marked I. By reference to this exhibit, it will 
 be perceived, that while the debt of the State is diminished $417,008 29, 
 the credit given to the Bank by the Comptroller General, is only $396,- 
 305 58, being $20,702 71 less than the face of the debt paid off by the 
 Bank. This difference was insisted on, because the Bank had purchased 
 $53,663 46 of the three per cent. Stocks for the sum of $32,960 1^, for 
 which latter sum only was credit allowed. In the purchases heretofore 
 made by the Bank, it has frequently occurred that a premium has been 
 paid, in some instances, as high as eighteen per cent. ; yet that premium 
 has never been allowed as a credit to the Bank, but in all such cases the 
 Stocks have been reduced to the par in their settlement with the Sinking 
 Fund, the Bank losing the premium. It would, therefore, seem but the 
 equal working of the same rule, to allow the Bank credit for the par of 
 these Stocks. 
 
 At the same time that the Comptroller General received these Stocks 
 for cancellation, he transferred to the Sinking Fund the two hundred thou- 
 sand dollars of surplus revenue remaining in the Bank on deposit, thus 
 finally closing that account, under the provision of the Act of 19th of De- 
 cember last. 
 
 The Legislature, by a Report and Resolutions adopted at its last session, 
 indicated the policy which it desired to be pursued by the Bank, for the 
 extinguishment of the Public Debt ; and directed that this Bank should, 
 '• in their Annual Report, inform the General Assembly of such measures 
 as they shall from time to time have adopted, for carrying out the policy 
 indicated." 
 
 The call made in the foregoing resolution for information, renders it 
 proper to recite the measures adopted bp the Board previous to, as well as 
 since the passage of the Resolution of the last Session, in order that the 
 whole subject may be fully understood. The condition of the debts of the 
 State, at a very early day after the election of the present incumbent to the 
 presidency of the Bank, occupied the attention of the Board ; and espe- 
 cially the advantages which might accrue to the public interests, from ob- 
 taining a control over some portions of that which was payable in Europe. 
 In the depressed price of all the Stocks of the States in England, ours 
 had participated ; and it was believed, that with proper arrangements, and 
 the services of a judicious agent, they might be purchased by the Bank to 
 great advantage. Extensive inquiries were instituted, both in England 
 and in this country, upon the subject, and the result of the best informa- 
 tion we could procure, was such a confirmation of these impressions, as to 
 encourage the Board to take more decided nfeasures towards the accom- 
 plishment of the scheme. The visit of General James Hamilton to Eu- 
 rope, in the spring of 1840, afforded an opportunity for prosecuting the 
 measure by further and more particular inquiries, and also for making 
 arrangements for an agency to carry out our views not only in this, but in 
 other important particulars connected with our general and current busi- 
 ness. His great experience, extensive acquaintance with tlic bankers of 
 
 I 
 
PRESIDENT AND DIKECTORS. 481 
 
 standing, and well-tested ability, pointed out this gentleman as peculiarly 
 fitted for this duty, which he immediately and cheerfully undertook, refu- 
 sing any compensation for his services. Instructions for his government 
 were delivered to him, dated the I9th of April, 1840. During the summer 
 and fall, he prosecuted his inquiries and negociations, and in the month of 
 December, concluded arrangements with an eminent banking firm in Lon- 
 don, on terms advantageous to the Bank, and satisfactory in all respects, 
 except that they conflicted in one particular with an existing contract with 
 Messrs. Baring, Brothers & Co., and in another made an unimportant re- 
 quirement, which our charter did not exactly cover. The contract was not, 
 therefore, ratified. These papers were received and disposed of in the 
 month of January, 1841. 
 
 As the Bank had no authority to establish such an agency abroad, in 
 order to be prepared to carry out the measures contemplated, the Board, 
 in their Annual Report of 1840, applied to the Legislature for proper 
 authority, which was granted in the Act passed at that session to amend 
 the charter of the Bank. 
 
 Being now fully invested with the requisite authority by law, the Bank, 
 as early afterwards as practicable, resumed the matter, and was fortunately 
 able to procure the services of Leon Herckenrath, Esq. a merchant of 
 high standing, and advantageously, as well as extensively known and con- 
 nected, both in Europe and America. Mr. Herckenrath readily, and with- 
 out compensation beyond the expenses actually incurred, undertook, and 
 with great fidelity discharged the ofiice of our representative, in making 
 proper arrangements. He received his letter of authority and instruction 
 under date of the 3d of August, 1841, and proceeded to England, where, 
 after much deliberation and careful inquiry, he concluded a satisfactory 
 arrangement with a firm of the highest rank and credit, to become our 
 agents, which was finally ratified on the 23d of July, 1842. On the same 
 day, our agents commenced operations by the purchase of South-Carolina 
 Securities, and have continued the same while any have been in market, at 
 rates which would allow of their being purchased to advantage. As the 
 success of all such transactions depends upon their secrecy, it has not been 
 deemed advisable, heretofore, to allude to them ; nor is it now thought ex- 
 pedient to say more in regard to them, than to state that all the corres- 
 pondence exhibiting the instructions, negotiations, agreements and direc- 
 tions for purchase of Stocks, given from time to time, will be in the hands 
 of the President, at Columbia. Funds and credits have been in the hands 
 of the agents in Europe at all times since, with instructions to purchase 
 our State, or Rail Road Company Bonds, whenever they could be bought to 
 advantage ; and considerable amounts have been purchased, and are now 
 in the hands of the agents, subject to our orders. The reasons for inclu- 
 ding the Rail Road Bonds were, that very few of our own could be got at 
 any time — and as the Rail Road Bonds were guarantied by the State, bore 
 the same rate of interest, and would be paid in London, two years before 
 a part of our own, and being from 3 to 10 per cent, lower, they presented a 
 fair and safe investment, which might either be re-sold when they rose to 
 par, or retained to meet our Bonds when they fall due. Both, however, 
 have risen so much, that our agents have not been able to buy any during 
 the last twelve months. In the home market, the Bank has purchased all 
 that have been off'ered at par. The recent Acts of the Legislature, in- 
 structing the Comptroller General to purchase with the funds of ij^c Trea. 
 
 61 
 
482 ANNUAL REPORTS OF 
 
 sury, has brought all that were below up to par, or above it ; and the 
 greater part of what is for sale, is absorbed by individuals, or by him for 
 the Treasury. If the means of the Bank allowed it, and it had entered the 
 market as a competitor, the only effect would have been to run the Stock 
 up to a higher price on the Comptroller General. It has therefore been 
 deemed advisable, on all accounts, not to bring the Institution further into 
 the market, than to advertise its readiness to cash at par, on presentation 
 at its counter, such of the five per cents, due in January, 1 845, as might 
 be brought in. These are now frequently presented and redeemed, and the 
 whole not redeemed before, will, on the first of January next, be paid ofi", 
 and cancelled. 
 
 By an oversight, entirely accidental, there was an omission in the last 
 Annual Report, of the statement of Gross Profits, and the Contingent and 
 Expense Accounts, required bythe 2d Resolution of 9th December, 1842. 
 An omission the more venial, as the account had almost, at the meeting of 
 the Legislature, been thoroughly examined and vouched by the Committee 
 of Investigation, as appeared by their Report. Statements for both the 
 last and currant years are appended, marked L and M. 
 
 Within a few years past, a copy of the very able Report of the Commit- 
 tee of Investigation, made in December, 1827, has been placed in the hands 
 of the President. It is the only copy known to be in existence, and be- 
 longs to a private library. Independent of its intrinsic merit, it consti- 
 tutes an important part of the documentary history of the Institution, and 
 would, could it have been recovered in time, have had its place in the com- 
 pilation of the papers relating to the Bank, heretofore published under the 
 directions of the Legislature. Believing that it will be in accordance with 
 the views which ordered the collection and re-publication of those docu- 
 ments, it is printed as an accompaniment to the Annual Report now sub- 
 mitted. F. H. ELMORE, President. 
 
PRESIDENT AND DIRECTORS. 
 
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484 
 
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PRESIDENT AND DIRECTORS. 
 
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PRESIDENT AND DIRECTORS. 489 
 
 I. 
 
 Statcnietit of Stocks surrendered for redemption by tJie Bank of tJie State of 
 South-Carolina^ unde7' provisions of Act passed at Session of Legisla- 
 ture for 1843. 
 
 Amount of 6 per cent Fire Loan 156,413 30 
 
 " 6 " Rail Road Loan 9,378 86 
 
 " 5 " 1824 _- - 90,893 12 
 
 " 5 " 1826 74,322 69 
 
 ^^ 5 " So. West. Rail Road Bank _-32,336 86 
 
 " 3 " $53,663 46, valued at cost _ 32,960 75 
 
 $396,305 58 
 C. M. FURMAN, Cashie): 
 
 K. 
 
 The following Regulations have been adopted by the Bank of the State 
 under the Act of the Legislatue creating the ofl&ee of Assayer : 
 
 REGULATIONS FOR THE PUBLIC ASSAYER. 
 
 1st. The Assayer shall accurately assay all Gold and Silver brought to 
 him for that purpose, including coins genuine and counterfeit, 
 
 2nd. He shall keep a Book, and in it require persons bringing metals for 
 examination, to enter their names, their residence, and such other particu- 
 lars as the Assayer may deem advisable, as may from time t© time be re- 
 quired by the appointing powers. 
 
 3rd. He shall, if the parties desire it, make the Gold and Silver assayed 
 into bars or ingots, on each of which shall be stamped. 
 
 1st. Its regular number, beginning at No. 1. 
 
 2nd. The gross weight of the assayed bar or ingot. 
 
 3rd. The value per pennyweight of that bar or ingot according to the 
 mint standard. 
 
 4th. The amount in pennyweights of pure Gold or Silver in said bar or 
 ingot. 
 
 5th. The date of the assay ; and 
 
 6th. The name of the owner. 
 
 4th. He shall keep a Book, in which shall be entered as specified above, 
 the gross and specific weights of each bar or ingot, the amount of precious 
 metals contained in it, the name of party owning and that of the person 
 bringing it, the day it was entered in his Book, and the number of the bar 
 or ingot. A report of these particulars shall be lodged regularly in the 
 Bank of the State, where it shall be recorded for public inspection and 
 reference. 
 
 5th. In assaying the Gold, the Silver it contains is to be estimated and 
 reckoned in fixing the value of the bar or ingot under the 2nd and 3rd 
 Specifications of the 3d Regulation above. 
 
 The Charges shall not eocceed the following Rates : 
 FOR GOLD. 
 
 Ingots under 100 pennyweights — $1,00 
 
 „ between 100 and 400 " one cent a pennyweight. « 
 
 . 62 
 
490 
 
 ANNUAL REPOllTS OF 
 
 " " 400 and 1,000 " ojic cent a pennyweight for the first 400, and 
 a quarter of a cent additional for each pennyweight over 400. 
 Ingots over 1000 pennyweights, the same charge as the last with one-eighth 
 of a cent additional for all over 1,000 pennyweights. 
 
 FOR SILVER. 
 
 Sums under $100 .._.$1,00 
 
 " between$100 and 500_ 2,00 
 
 " " $500 and 1000 3,00 
 
 "of $1000 and upwards - .___-4,00 
 
 If the Gold should be in the form of grains, it is to be run into ingots 
 or bars at the expense of the Assayer, provided it does not exceed 1000 
 pennyweights, and if it exceeds that weight, he has the privilege of charg- 
 ing 3 cents an ounce for the excess. The same is applicable to bars or 
 ingots that it may be necessary to recast. 
 
 The portion of the bar or ingot clipped in making the assay, is to be 
 kept by the Assayer, and taken in part payment of the operation, if it 
 should not amount to the full charge ; if exceeding it, the difference must 
 be paid by him. 
 
 CHARaE FOR EXAMINING COINS. 
 
 If it be simply to make such examination, as to decide upon the genuine 
 or counterfeit character of the coin, not to exceed 50 cents. If the coin 
 should be cqunterfeit, and the exact composition be required, not to 
 exceed $2. 
 
PRESIDENT AND DIRECTOES. 
 
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PRESIDENT AND DIllECTOllS. 493 
 
 Branch Bank, Columbia, October 1, 1844. 
 To the President and Directors of tJie Bank of tJie State of South- Carolina. 
 Gentlemen : — In submitting our tabular statements of the operations of 
 this Branch, we have deemed it proper to accompany them with some 
 explanatory remarks. 
 
 For three years past our accommodation discounts have been made, in a 
 great measure, with a view to aid the embarrassed planters and farmers, 
 which necessarily has diffused our loans over a large extent of country. 
 Notwithstanding the wide diffusion of these transactions, I am happy in 
 bsing able to say, with great confidence, that I believe every note is good 
 beyond doubt, and will be paid in such instalments as our Board may 
 require, which have heretofore, and will continue to be, such as are adapted 
 to the circumstances of the country. The wide extension of our accommo- 
 dations is dictated by the object for which the Bank was incorporated, and 
 has conferred very great relief in a period of great pressure and distress. 
 The amount of capital allowed this Branch for such transactions as belong 
 to its ordinary business, is $850,000 ; and the number of notes discounted 
 for accommodation, are between 750 and 800, proving the great number 
 of citizens who have been enjoying the benefits of the institution. 
 
 Our bonds are few and of no considerable amount. We have no 
 authority for making original loans on bond. When taken, they have 
 usually been to get additional security on old or doubtful debts, or in the 
 sale of property for debts due the Bank; or more frequently for sales of 
 property where the Bank has consented to sales of its debtors' property on 
 extended credits, to make it brin'g full prices to secure the payment of 
 other creditors, and the saving something for the families of the unfor- 
 tunate. These are all amply secured ; the interest is promptly paid, and 
 the principal is in progress of regular reductions. 
 
 There is one branch of our business which it may not be amiss to review. 
 I refer to the discount of domestic exchange, or, in other words, drafts for 
 the purchase of cotton. At one time previous to 1834, and during that 
 year, this Branch did a considerable business in discounting these drafts. 
 They were then simply drawn on the faith of the produce, and had only 
 the acceptance of a house in Charleston for their security. In 1834, 
 heavy failures in the cotton buying houses produced heavy losses to the 
 Bank, and the business was almost entirely suspended until revived since 
 1840. During this period of suspension the commerce 'of Columbia, 
 although aided by the Commercial Bank to a considerable extent, was still 
 impeded for want of proper accommodations, and the cotton jnarket often 
 suffered from the restriction and inadequacy of the money facilities for our 
 merchants ta purchase and forward it to market. The planters and far- 
 mers were made, at times, to smart under unnatural depressions, and sub- 
 mit to much lower prices than were just, because the great body of the 
 cotton buyers could not at all times get the money required to pay for 
 their crops. The gradual and steady return of the Bank to the discount- 
 ing of good cotton drafts, well secured, gradually but surely removed this 
 evil. Under our just and impartial regulations, money could at all times 
 be procured for these operations, and the cotton trade of Columbia assumed 
 a steadiness and regularity that it had not known before. Under the 
 regulations adopted, ample security was given, both at this Branch and in 
 Charleston. The time the bills had to run was reduced from 6f to 30 
 4ays, and sometimes less, and a healthy action and safe business grew up, 
 
494 ANNUAL REPORTS OF 
 
 of real transactions, and which has banished the reckless and speculative 
 spirit out of which had arisen so much distress to individuals, and losses to 
 the Bank. 
 
 By these means I am confident that we have done more solid and sub- 
 stantial benefits to the agricultural interest of the State, than we would 
 have done in any other mode, with double the amount of capital. We gave 
 to the planters, if they choose to send their own produce to market, every 
 facility by taking these bills. We gave to the merchants the means always 
 to buy their produce at a fair price, and to pay them in a good convertible 
 currency. To the merchant our measures gave confidence and steadiness 
 in his business ; and to our Bank we brought a profitable and advantageous 
 custom. The effect was, in truth, to extend its circulation in the interior, 
 and to supply the Bank, in the cotton drafts, a specie fund, convertible as 
 they fell due into so much of gold and silver, or its full equivalent. Our 
 business in these transactions, in the seasons of 1842 — 3, was very con- 
 siderable ; but it was not until the last year, 1843 — 4, that anything like 
 its full benefit was obtained. During the last season we furnished the 
 merchants in discounts of these cotton drafts, with $910,000, with which 
 they bought and paid for cotton. Of this large amount, every bill has been 
 paid promptly ; and besides the great advantage it has given to our agri- 
 cultural labor, it has aided essentially in promoting the prosperity and 
 commerce of Columbia, while to the Bank it has been equivalent almost to 
 so much specie. 
 
 Considering these important results, the Board of this Branch earnestly 
 recommend the continuance of this policy. They view with great satisfac- 
 tion the prosperous condition of the town in which their operations have 
 been conducted, and feel that they are not claiming too much when they 
 attribute no small part of it to the course of this institution. 
 
 The paying in of the taxes of the Upper Division, at so late a period of 
 the year as June, is attended with a serious disadvantage to the Bank. 
 The most pressing wants of the indebted planters arc tcr meet the demands 
 of the Spring courts ; a season of the year when we are least in condition 
 to accommodate them, from the heavy drafts upon us from the Treasury, 
 during the latter part of December and the month of January. From our 
 inability to serve them, at this pressing period of their wants, they resort 
 to other Banks, for accommodations on short loans, to be paid when this 
 branch receives the taxes in June ; which gives to these Banks the benefit 
 of a circulation of their bills in the country, to be paid back in a short 
 time in the bills of our Bank, which are immediately returned upon us, 
 greatly to our disadvantage. An earlier collecting and paying in of the 
 taxes, would not only remedy this evil, but would considerably increase the 
 profits of the Bank. If the taxes, amounting to about $120,000, were 
 paid in on the 1st of March, instead of the 1st of JunCj as is now the case, 
 the increased profits would amount to about $1,800, a circumstance of itself 
 sufiicient to recommend its adoption. I cannot see that the proposed 
 alteration of collecting the taxes in February, instead of May, would at all 
 injure or inconvenience the tax payer ; the former being a period of the 
 year when money is more abundantly in circulation, and more easily to be 
 obtained in small amounts, than at the later period in May. 
 
 I recommend that you bring this matter to the notice of the Legislature 
 at its ensuing 'session. 
 
 All of which is respectfully submitted. 
 
 R H. GOODWYN, President. 
 
PRESIDENT AND DIRECTORS. 495 
 
 Exhibits of cotton Drafts discounted at the Branch Bank at Columbia 
 since the \st of October^ 1841, and the net irrofits arising from tlie same- 
 Drafts. Profits 
 
 1841-2, $201,025 $2,352 30 
 
 1842-3 365,228 __2,353 60 
 
 1843-4, 910,000___ 5,170 09 
 
 A portion of the profits for the last year's draft business, was realized at 
 the parent Bank in Charleston, and is not included in the above exhibit. 
 
 R. H. GOODWYN, President. 
 Branch Bank, Columbia, October 1, 1844. 
 
 (1845.) 
 
 To the Honorable the SenMe and House of Representatives of the State of 
 
 South- Carolina : 
 
 The President and Directors of the Bank of the State of South Carolina 
 respectfully report : 
 
 That from the 30th day of September, 1844, to the 1st day of October, 
 1845, the profits of the Bank have been $241,290 91 
 
 Of these, there has been applied to the inter- 
 est and expense account of Fire Loan (in 
 Europe,) $61,180 82 
 
 To interest on 6 per cts. (Home,) 48,819 18 
 
 To profit and loss, for U. S. Bank Stocks, and 
 old debts, ._..._.. 21,290 91 
 
 Carried to the Sinking Fund _ 110,000 00 $241,290 91 
 
 The sums for profit and loss, include the loss on $9,184 of Stock of the 
 Bank of the United States, which had been taken for a doubtful debt, 
 many years ago by this Bank, before the failure of the former ; upon which, 
 by good fortune, we have sustained a loss greatly below that which has 
 fallen on other Stockholders. 
 
 In the profits of the Bank, but not included in the statement above, is to 
 be estimated the gain made by the purchase and extinguishment of £7500 
 of Sterling Bonds of the Fire Loan, of which £4000 were payable in 
 1858, and £3500 in 1868. These Bonds were purchased in London, in- 
 cluding the exchange, at something more than $3,000 under par, and have 
 been credited by the Comptroller at par, excluding any credit for exchange. 
 The Public Debt has been diminished by the operation to 
 
 the amount of ._ $33,333 33 
 
 At a saving to the State of upwards of 6,000 00 
 
 In obedience to the instructions of the Legislature, in their Resolutions 
 of 15th December, 1843, the Board have to report the measures they have 
 pursued for carrying out the policy, indicated at that time, for the extin- 
 guishment of the Public Debt ; 
 
496 ANNUAL REPORTS OF 
 
 The 5 per cent. Stocks, issued in 1824, to fall due on 1st January, 1845, 
 
 amounted to $250,000 00 
 
 Of these, the Bank had redeemed and cancelled last year.__ 90,883 12 
 
 Leaving due on 1st January, 1845 ..^ $159,106 88 
 
 Of this there has been presented to and paid by the Bank. .156,319 32 
 
 Not presented and still duo $2,787 56 
 
 The Bank has paid and extinguished, since the last Annual Report, the 
 following amounts of the principal of the Public Debt, viz : 
 
 Of 5 per cents, due 1st January, 1845. ._ __-$156,319 32 
 
 Of 5 do. do. do. 1st January, 1858 ) oo qqq oq 
 
 Of 5 do. do. do. do. 1868^ 66,666 o6 
 
 $189,652 65 
 
 With a view to the redemption of the Fire Loan 5 per cents, falling due 
 in Europe in 1858, the Board have purchased and have now in the hands 
 of an Agent in Europe, £10,500 of the Bonds of the Rail Road Compa- 
 ny, guarantied by the State, which will fall due in 1856 ; these stand us in 
 our accounts, all expenses included, in $37,357 63, and are worth about 
 $48,000, at their present rates in England. 
 
 Funds, or Credits, have at all times, for several years past, been in the 
 hands of the same Agent, with instructions to buy up the Fire Loan 
 Bonds, if opportunities offered for doing so advantageously ; but such is 
 the credit of the State and the value of these Stocks, that none are oifered 
 in the market, nor can any be procured, at rates which would render their 
 purchase an object. ^ 
 
 In the domestic Market, the State Stocks have all been above par, and 
 the Board have not been able to purchase beyond the small amount re- 
 ported in the Bank statement B : these will be surrendered when a larger 
 gum has been accumulated. 
 
 Not being able to purchase the Stocks of the State, and having funds 
 accumulating, the Board have made purchases of other safe Stocks, at low 
 rates, to invest a portion of their funds that can, when needed, be readily 
 converted into money for the Sinking Fund. These constitute interest 
 bearing securities, which can be used whenever the payment of the remain- 
 ing portion of the Public Debt requires their being turned into cash for 
 that purpose. 
 
 The Stock issued by the State in 1820, bearing 5 per cent, interest, and 
 
 to fall due 1 st January, 1 846, amounts to . _ _ . . $300,000 00 
 
 Of this, the Bank had redeemed and cancelled as reported 
 
 to you lastyear _ 74,2^2 69 
 
 Leaving due and redeemable on 1st January, 1846--_-_ -.$225,677 31 
 This the Bank is prepared to discharge immediately on presentment. 
 
 The. h^avy payments for principal and interest, on the Public Debts, ta 
 be made during the next year by the Bank, must produce some effect on its 
 operations ; and a somewhat diminished rate of profits may be anticipated. 
 At the Session of 1843, in a Report made by the President, in answer to u 
 call from the Legislature, a table was appended, as exhibit No. I, to show 
 
PRESIDENT AND DIRECTORS. 497 
 
 the probable operation of the Sinking Fund for the extinguishment of the 
 Public Debt. The profits of the Bank are there estimated as follows : 
 
 For the Year ending 1st October, 1844 $110,000 
 
 do do. do 1st October, 1845 , _100,000 
 
 do do. do 1st October, 1846 90,000 
 
 These estimates, so far, have been fully realized, nothwithstanding the 
 surrender of a large amount of State Stocks, which constituted a part of the 
 Bank capital, when these estimates were made. The business of the ensu- 
 ing year, will feel very sensibly the depressing influence of the heavy de- 
 ficit in our crops. Mercantile transactions must be materially circum- 
 scribed, and all business transactions, which give active and useful employ- 
 ment to Bank Capital and credit, be considerably limited. Still there 
 seems to be no reasonable ground to fear but that the Bank will realize the 
 income estimated for 1846, in the statement referred to. 
 
 October 1st, 1845. F. H. ELMORE, PresUeiit. 
 
 63 
 
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504 
 
 ANNUAL REPORTS OF 
 H 
 
 Statement of the Contingent Expense Account of the Bank of the State^ 
 at Charleston^ from \st October^ 1844, to \st October^ 1845. 
 
 1845. 
 Sept. 30. 
 
 To Officers' Salaries $16,850 00 
 
 " Printing Bank Bills __- 1,756 84 
 
 " Attorney General and Solicitor's Salaries 2,058 69 
 
 « Books, Stationery, &c. _ 424 22 
 
 " Subscription to Papers, Advertising, &c 296 91 
 
 " Printing Checks, Blank Notes and Notices 144 00 
 
 " Post Office 300 96 
 
 " Expenses on Specie 87 50 
 
 " Insurance..- -- 245 00 
 
 " Offices Clerk Common Pleas and Register M. C. 153 50 
 
 " Repairs to Banking House 65 47 
 
 " Subscription to Reading Room 12 50 
 
 " Hire of Servant, Fuel and other Office expenses 374 61 
 
 " Advertising Limestone Springs and expenses of 
 
 sale... - 114 37 
 
 $22,884 57 
 By Costs returned... 110 00 
 
 22,774 57 
 
PRESIDENT AND DIKECTORS. 505 
 
 I 
 
 Statement of the Contingent Expense Account of the Branch of the Bank 
 of tlw State of South Carolina^ at Columbia^ for the year ending ^Qth 
 Septemhei'^ 1845. 
 
 1845. 
 
 Sept. 30. To Officers' Salaries 1 $7,600 00 
 
 " Fees to Attorneys 402 49 
 
 " Repairs to Bank House 188 97 
 
 " Hire of K_ervant .- 100 00 
 
 " Postages.--. 99 67 
 
 " Officers' expenses to Charleston on Bank business 105 25 
 
 *' Cashier's expenses to Camden, on Bank business 5 87 
 
 ^' Stationery, Fuel, &c. &c.-_- 180 72 
 
 $8,682 97 
 
 K 
 
 ^alement of tlw Contingent Expense Account of the Branqh of the Bank 
 of the State of South Carolina^ at Camden^ for t?te year ending Wth 
 September^ 1845. 
 
 1845. 
 
 Sept. 30. To Postages $19 73 
 
 " Repairs to Banking House 69 46 
 
 " Stationery, Fuel, &c , 129 07 
 
 " Thomas J. Withers, as Solicitor for 1844 300 00 
 
 " Thomas Salmond's expenses to Charleston, on 
 
 Bank business 28 50 
 
 " Thomas Salmond's expenses to Sumter, Darling- 
 ton, Cheraw and Chester, on business 20 00 
 
 " Officers' salaries _. 6000 00 
 
 $6,566-76 
 
 64 
 
506 ANNUAL REPORTS OF 
 
 (1846.) 
 
 To tJie Honorable the Senate and House of Representatives of the State of 
 
 South Carolina: 
 
 The President and Directors of the Bank of the State of South Carolina 
 respectfully Report : 
 
 That during the fiscal year ending on the 30th September, 1846, the 
 profits of the Bank have amounted to $227,663 96 
 
 Of this, there was paid for interest on Loan 
 
 (in Europe,) $55,587 04 
 
 Interest on 6 per cents, at home, 49,469 3 1 
 
 Profit and Loss Account, 27,607 61 
 
 Carried to Sinking Fund, __. 95,000 00~$227,663 96 
 
 The unprecedented failure in the crops of the State in the last year, 
 compelled the planting interest to apply the larger part of the proceeds of 
 their cotton to purchase provisions ; and there was consequently a more 
 than ordinary derangement of the usual commercial exchanges, and a great- 
 er difficulty in procuring payment in existing debts, while the great extent 
 of the destitution required the extension of increased accommodations, to 
 aid in procuring the necessaries of life. Yet, notwithstanding the unto- 
 ward influences of this great calamity, the profits of the Bank have exceed- 
 ed the estimates which were submitted to the Legislature, by the President, 
 in his Special Report of the 8th December, 1843, made in obedience to 
 calls by Resolutions from both Houses. 
 
 That portion of the Report which answers as to the ability of the Bank 
 to pay off the public debt charged upon it, was accompanied by an exhibit, 
 showing the estimated profits of its operations for each year until the debt 
 is finally extinguished. 
 
 The table is again submitted as Exhibit L of this Report. A reference 
 to its items will show, that the profits then estimated for 1844 and 1845 
 have been realized, while those for 1846 have been exceeded. 
 
 The excess of this year would have been increased' $25,000, had not a 
 heavy loss been sustained, by the fraudulent delinquency of Alexander 
 McDonald, one of the Directors, who enjoyed, in a very high degree, the 
 confidence both of the State and the City of Charleston, which he has 
 abused, by conduct without precedent in our annals, and against which 
 human prudence could afford no certain protection. 
 
 In this case, the Board has deemed it most advisable to reserve at once 
 from the profits of the year a sum which they estimate may cover any 
 ultimate loss, although proceedings are instituted from which hopes are 
 entertained of recovering even a larger portion of the debts. 
 
 The Resolutions of the 15th December, 1843, make it the duty of the 
 Board to report annually, the measures they have taken for the extinguish- 
 ment of the public debt, in accordance with the principles therein in- 
 dicated. 
 
 The ability of the Bank to pay the public debt charged upon its profits 
 must always be a subject of anxious solicitude. 
 
 Three years have elapsed since the Legislature made a special call for 
 information on that point, and a review of the opinions given by the Presi- 
 dent, in his answer, compared with, and tested by, the actual results of the 
 measures adopted to meet the wishes of the Legislature, may not be with- 
 out use to aid it in forming correct conclusions for what may be expected 
 
PRESIDENT AND DIRECTORS. 507 
 
 from future operations. By referring to Exhibit L and the reports of this 
 and the two years preceding, it will be seen that, notwithstanding the Bank 
 has subsequently purchased and cancelled a large amount of State Stocks, 
 the interest of which was counted on as a part of its income, the profits of 
 1844 and 1845 were equal to, while those of 1846 have exceeded, what 
 was promised in the estimate of 1843, and that the 5 per cents which fell 
 due in January, 1845 and 1846, amounting to $550,000, have all been 
 paid, except five hundred dollars of 1845, and one thousand and ten dol- 
 lars of 1846. not presented.* 
 
 This, however, does not show the action of the Bank in its entire extent, 
 either in the actual reduction of the liabilites of this State, nor in the pre- 
 parations it has made to pay off the Stocks falling due hereafter. The 
 annual reports of 1844 and 1845 contain particulars embodied below, 
 showing the cancellation, by the Bank, since 1843, of the following Stocks. 
 
 On the 19th January, 1844, the Bank cancelled of the Fire Loan Bonds 
 held by it, $156,41 3 30. Of which $146,305 30 had never been sold, and 
 $10,108 00, had been sold and re-purchased. At the same time, it cancel- 
 led $33,333 33 of the 5 per cent, stock created to pay the State's subscrip- 
 tion to the capital of the South Western Rail Road Bank, which had been 
 transferred to the Sinking fund, to replace interest on that stock, advanced 
 from it by the Bank, under the warrants of the Comptroller General. 
 Exclusive of these operations, the Bank purchased and cancelled in 1844 
 and 1845, 
 
 Of the Fire Loan Stock, as above stated $10,108 00 
 
 6 per cent of 1839, (advance on R. R. subscription) — 9,378 86 
 
 5 " " Fire Loan, bought in Europe, due 1853, 33.333 33 
 
 3 " " (bought by Bank for $32,960 75) 53,663 46 
 
 For two years past, the Bank has not purchased any of the State Stocks 
 for cancellation ; because, in 1845, they were above par, and in 1846, tlie 
 heavy payments made in January to redeem the 5 pet cents then paid off, 
 rendered it impracticable. 
 
 But, in addition, during 1845, to the considerable investments then held 
 as reserves for the payment of the State Stocks, as they fell due, the Board 
 made other investments in safe Stocks at low rates, which have risen in 
 value, and will, in all probability, continue to rise much more, constituting 
 interest-bearing securities, which can be readily sold and converted into 
 cash, whenever the payment of the remaining portions of the public debt 
 requires it. This reserve fund is fully adequate, exclusive of the accruing 
 profits, to what will be required to meet the Stocks falling due in January, 
 1848, 1850 and 1852. 
 
 It has been seen that, until the present time, the Bank has not only paid 
 all the debt charged upon it by the several Acts of the Legislature, but 
 has anticipated, by purchase and cancellation, other portions of the public 
 clebt, before it fell due ; and has made provisions to meet what will fall 
 due in 1848, 1850 and 1852, being the balance of the 6 per cents created 
 in 1839, and amounting to $590,621 , 14. 
 
 These views have not included any calculations for the profits of future 
 operations. In reviewing the estimates for these, submitted in the special 
 report of 1843, and again laid before you with this, the Board sees no 
 
 ♦ Of the 5 per cents of 1826, due 1st of January, 1846, the Comptroller General pur- 
 chased fox the State and cancelled S5,476 36. 
 
508 ANNUAL REPORTS OF 
 
 reason to doubt but tliat those estimates will coutiuue to be fully realized, 
 if not exceeded. The reasons, in part, on which these opinions are based, 
 will be brifly stated. The ability and prosperity of a Bank depends on 
 the ability and prosperity of its customers. At the time the estimates of 
 1843 were made, every thing admonished extreme moderation in forming 
 them. A long course of oppressive Federal taxation had crippled our 
 commerce, and borne heavily on the industry of the people. The value of 
 property was depreciated, and the spirit and enterprize of the State de- 
 pressed. The aspect of affairs in all these respects, is changed greatly for 
 the better, while new elements have been brought into action, which are 
 destined to have a powerful influence in the advancement of the general 
 prosperity, and that of South Carolina and Charleston in particular. The 
 extension of the Rail Road to Columbia and Camden, reaches the middle 
 portions of the State, where the grain growing sections begin, — the exten- 
 sions into Georgia, have penetrated through the cotton, and far into the 
 grain growing sections, and are rapidly approaching complete connexions 
 with still greater lines into Alabama and Tennessee, where the corn, wheat, 
 pork, beef, hemp and tobacco, besides other staples of the soil, are, or can 
 be, produced in unlimited profusion. Minerals and manufacturing facili- 
 ties are abundant. Each road is the parent of other Rail Roads or Turn- 
 pikes, or reaches navigable streams penetrating other portions of these 
 fertile countries, which will collect and bring to the Atlantic a commerce of 
 vast and ever increasing extent and value. The opening. and extension of 
 new lines further into the interior of our own State, will swell this vast 
 amount of staples seeking an outlet to foreign markets, and far the greater 
 part will find their way to Charleston, extending greatly its business at 
 home, and its commerce with foreign countries. The reduction in our 
 Tariff comes at a happy moment for all branches of trade, while the free 
 trade measures in Great Britain, and especially the relaxation of duties on 
 grains and other provisions, are most fortunately timed to render our Rail 
 Road improvements of inestimable advantage, in restoring to Charleston 
 the prosperity to which her great natural commercial advantages entitle 
 her. In that prosperity the whole State will participate. The creation of 
 Br provision trade between Charleston and Europe, will open a new employ- 
 ment for the cultivators of the soil, diversifying their labors, and rendering 
 them more independent. The extension in the number and variety of 
 articles for market, the increase in the value of the products of their in- 
 dustry — the activity that a. trade, freed from oppressive restrictions, will 
 impart to commercial exchanges, will all operate to invite new capital, in- 
 crease population, and, in a thousand ways, seen and unseen, to improve 
 the condition of the customers of the Bank, by adding to their ability to 
 meet existing liabilities, and to make and fulfil new engagements. It is 
 not, therefore, unreasonable to look, in the future, for a more active and 
 profitable employment of the capital and credit of the Bank, than we have 
 experienced for a great many years past. 
 
 The improvement which is anticipated for the business in which it will 
 be engaged, will be natural and enduring, and if realized, to any thing like 
 the extent which the present condition and apparent progress of events 
 would seem to promise, its profits will fully reach, and most probably will 
 greatly exceed, the estimates of 1843, and will, finally, fully extinguish the 
 whole public debt without creating embarrassments or imposing any bur- 
 thens on the State. 
 
PRESIDENT AND DIKECTORS. 509 
 
 The annual report of the President and Directors of this Bank for 1823, 
 suggested the appointment of annual committees to examine its books and 
 business, and to report to the Legislature ; in consequence of which, the 
 Act of December, 1823, was passed, providing for the appointment of a 
 joint committee for that purpose by every new Legislature at its first ses- 
 sion. Unfortunately, such a committee, from the constitution of the 
 Legislature, is necessarily biennial, instead of annual, asrecommended by 
 the Board. The present Direction concur in all the reasons then adduced 
 for the measure, and regret that these investigations are not made- at least 
 annually. Desiring the most frequent and impartial examinations while 
 under their management, as most conducive to its prosperity and usefulness, 
 and to the maintenance of the public confidence, the Board submits that 
 they might be made intermediately by the Comptroller General, with, per- 
 haps, other public officers of high trust, so that the Legislature may be 
 annually advised, from other sources entitled to its confidence, as to the 
 management and condition of its affairs. 
 
 The Board feel again compelled to renew to the Legislature their earnest 
 application for an amendment of their charter in regard to the collection 
 of their debts. The business of this institution differs from that of every 
 other Bank, in several respects : — It has two Branches, each carrying on a 
 large business, and situated at a distance, and, from its own peculiar char- 
 acter, the business of the mother Bank is spread all over the State. Ap- 
 plications for its aid come from every district and parish, and these applica- 
 tions having merits of even equal weight with those of persons residing in 
 Charleston, cannot be considered with equal favor, because, in case of fail- 
 ure to meet the payments required, suits must be instituted in remote 
 courts, where the case passes entirely beyond the supervision of the Board, 
 and is, of necessity, often overlooked. Under the original charter, each 
 party asking a loan, was obliged to accompany his application with a power 
 of attorney to confess judgment, in case he failed to pay his instalments. 
 The regulation worked well. No complaints were ever uttered against it. 
 The same principle, modified to cover all cases of contract at the mother 
 Bank or Branches, and allowing suits to be brought in the district where 
 the contract was made or matures, reserving a right to a defendant to 
 remove the cause to his own district for trial, in case he could show good 
 ground for it to the Judge who may preside where the writ is returnable, 
 would remove every well-founded objection, and insure to a party having a 
 real defence, all possible security against injustice. Such an arrangement 
 would enable the mother Bank, by proper regulations with the Branches 
 and their legal officers, to have reports after every circuit in the State, 
 which would be condensed in a set of Books in the Bank, where, on refer- 
 ence, the actual condition of each case could at all times be known. 
 
 As it now is, the Bank is compelled to have an agent in almost every 
 district where it has a suit, and it has been found, in practice, next to im- 
 possible to procure reports and returns. The plan proposed would reduce 
 these agencies to one for each Branch, from which, after each Circuit, full 
 returns of what had been done in every case could be bad, simplifying 
 and giving efficiency to our business of very great importance. If the 
 present system is to continue, in addition to its greater expense, losses and 
 embarrassments must increase. 
 
 During the past year, and since the report of the Committee appointed 
 to investigate the condition of the Bank, made to the Legislature in De- 
 cember last, the instructions of the Legislature in regard to the debt of the 
 
510 ANNUAL REPORTS OF 
 
 Nesbitt Manufacturing Company and the Iron Works, have been so far 
 progressed in, as to make it proper to report the proceedings. As soon 
 after the passage of the Resolutions on that subject as it could be done, a 
 Bill was filed by the direction, in the Court of Chancery, to foreclose the 
 mortgage and enforce its demands. A decree was pronounced, ordering a 
 sale of the whole property, and the Bank found it necessary to bid it in, to 
 enable it to carry out the instructions, and became the purchaser at a sum 
 less than the debt due to itself. To this point the report of the Committee 
 of investigation informed the Legislature at its last session. 
 
 Against a confirmation of this sale, objections were subsequently filed 
 by some of the creditors, which were argued and overruled in Court, and 
 from that decision an appeal was taken, and is now pending. 
 
 Upon being notified of this appea/1, the Bank consulted the Attorney 
 General and the eminent counsel associated with him in the case, and 
 were advised that no doubt existed in their minds of the dismissal of the 
 appeal when it came to trial ; and as the property was too valuable, and at 
 the same time too liable to exposure and injury if left idle, and it did not 
 comport with the views of the Board to carry on its operations, it was 
 advertised for sale for several months, in the early part of the year, with 
 a full description, and on the terms and credits prescribed by the Resolu- 
 tions of the Legislature. 
 
 No off'er of purchase was received, except one from a portion of the old 
 stockholders, who being already liable for any deficiency, proposed to take 
 the property at a price which will cover the debts due the Bank ; and to 
 give therefor, in addition to the mortgage of the property itself, such other 
 security, either personal or in other property mortgaged, as may be deemed 
 sufficient. The propositions have been considered and agreed to, and the 
 details are being perfected by a committee of the Board, the Attorney 
 General, and the parties offering to purchase. It is not always that a 
 business of such extent and importance can make its progress through the 
 forms of the courts and the adjustments necessary to its conclusion, as is 
 desirable ; in this instance, the Bank has omitted no means in its power to 
 bring it to a termination ; and there seems now no reason to doubt but 
 that it will be fully concluded before the next committee of investigation 
 will examine the Bank, to which all the details can be fully explained. 
 
 In the meantime the Board deems it proper to state, that two of the 
 old proprietors undertook to keep the Works in repair and employed, 
 without risks or costs to the Bank, and that they have done so, from 
 the time of the first sale, through all the difficulties of a year of great 
 scarcity. 
 
 F. H. ELMORE, President 
 
 November, 23. 1846. 
 
PRESIDENT AND DIRECTORS. 
 
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516 
 
 ANNUAL REPORTS OF 
 
 The Contingent Expense Account of the Bank ef the State of ScmtK Co/r- 
 lina^ 30th September^ 1845, to 2>0th September, 1846. • 
 
 1846. 
 Sep. 30 
 
 To Officers' SalarieB 
 
 " Expenses on Specie . — 
 
 ^' Printing, Stationery, &c._^ __. 
 
 " Repairs to old and new Banking Houses *- 
 
 " Postages -S: 
 
 " Advertising and -subscription to various papers 
 
 " Insurance - 
 
 " Costs and Fees i_. __ 
 
 " Hire of a Servant and Office expenses 
 
 " Offices of Cl6rk of Court, Register Mesne Con- 
 veyances, and Secretary of State ._.- __ 
 
 16,824 
 
 00 
 
 1.389 
 
 25 
 
 405 
 
 75 
 
 ^257 
 
 42 
 
 122 
 
 60 
 
 167 
 
 79 
 
 205 
 
 00 
 
 579 
 
 87 
 
 ' 256 
 
 12 
 
 j " 178 
 
 75 
 
 $20,386 55 
 
 H. 
 
 The Contingent Expense Account of tlie Branch Bank at Columbia^ from 
 2>0th September, 1845, to SOth September, 1846. 
 
 1846. 
 Sep. 30 
 
 To Officers' Salaries '. . 
 
 " Attorney's Fees.. 
 
 " Repairs to Bank House _ 
 
 " Advertising and Supscription to papers 
 
 " Postages ._- 
 
 " Hire of Servant for the Bank — ___.-_ 
 
 " Insurance of Bank' House^ , — 
 
 " Expenses of Officers' visits to Charleston on 
 
 Bank Business ^ 
 
 " Stationery, Blank Books, Fire Wood, &c. &c.- 
 
 7,600 
 
 00 
 
 274 
 
 00 
 
 154 
 
 67 
 
 65 
 
 25 
 
 53 
 
 10 
 
 100 
 
 00 
 
 62 
 
 50 
 
 131 
 
 00 
 
 143 
 
 IS 
 
 $8,583 70 
 
 I. 
 
 State Treasury for Loan linder the Act for 
 Dr. Charleston. 
 
 the City of 
 Cr. 
 
 1846. 
 Sep. 30 
 
 To Balance, $1,810,253 37 
 
 1845. 
 Oct. 1. 
 
 1846. 
 Oct. I, 
 
 By Balance,- -$1,8 10,253 37 
 
 By Balance,- -$1,810,253 37 
 
PRESIDENT AND DIRECTORS. 
 
 517 
 
 The Contingent Expense Account of the Bank of the State of South Car- 
 olina, at Camden, from the 30th Sept. 1845, to 30th Sept. 1846. 
 
 1846. 
 Sep._^30 
 
 To Officers' salaries w 1 
 
 " Postages-- ■ 
 
 " Printing, Stationery, &c 1 
 
 " Subscription to Papers and Advertising 
 
 " Office expenses, including fuel 
 
 " Travelling exp. of Ag't, to and from Charleston 
 " Repairs, ---_ 
 
 6,300 00 
 17 53 
 47 87 
 16 39 
 26 50 
 49 50 
 8 22 
 
 $6,466 01 
 
 EXHIBIT L. 
 
 The following is a statement of the probable operation of the- Sinking 
 Fund, in payment of the Public Debt up to 1st January, 1852, when the 
 last -instalment of the 6 per cents., issued for the subscription to the Rail 
 Road falls due. 
 
 Balance of the Sinking Fund 
 held by the Bank on the 
 1st of October 1841. _$743,628 31 
 
 Profits of the year ending 1 st 
 
 October, 1841 ... 106,000 00 
 
 Amount brought forward, 736,628 31 
 Interest payable in 
 1845,-__ 314,503 31 
 
 $849,628 31 
 Stock redeemable and Inter- 
 est payable during the year 
 1842.. 276,000 00 
 
 $573,628 31 
 Profits of the year ending 1 st 
 
 October, 1842 _. 100,000 00 
 
 ^ 673,628 31 
 
 Interestpayable in 1843.-73,500 00 
 
 600,128 31 
 Profits of year ending 1 st 
 
 October, 1843 .100,000 00 
 
 700,128 31 
 
 422,503 31 
 {a) Profits of year ending 
 
 1st October, 1 845. _ 1-1 00,000 00 
 
 $522,503 31 
 
 Stock redeemable and 
 Interest payable in 
 1846,-.__ -.._. 349,750 00 
 
 172,753 31 
 
 (b) Profits of year ending 
 
 1st October, 1846, 90,000 00 
 
 ■ - 262,753 31 
 
 Interest payable in 1847. .46,000 00 
 
 Interest payable in 1844.. 73,500 00 
 
 626,628 31 
 (a) Profits of year ending 
 
 1st October, 1844 110,000 00 
 
 736,628 31 
 
 Stock redeemable and 
 
 216,753 31 
 Profits of the year ending 
 
 1st October, 1847 90,000 00 
 
 306,753 31 
 Stock redeemable and In- 
 terest payable in 1848-240,000 00 
 
 66,753 31 
 Profits of year ending 1 st * 
 
 October, 1848 _-80,000 00 
 
 146,713 31 
 
518 
 
 ANNUAL REPORTS OF 
 
 EXHIBIT L— CONTINUED. 
 
 Am't brought forward- -$146,713 31 Interest payable in 
 
 In't. payable in 1849 34,000 00 
 
 112,753 31 
 Profits of year ending 1st 
 
 October, 1849 ..80,000 00 
 
 192,753 31 
 Profits of year ending 1st 
 
 October. 1850 ..78,000 00 
 
 Stock redeemable and 
 Interest payable in 
 1850 225,000 00 
 
 $270,753 31 
 
 1851 .22,000 00.247,000 00 
 
 23,753 31 
 Profits of year ending 1 st 
 
 October, 1851 ^.75,000 00 
 
 98,753 31 
 Stock re(^eemable and Inter- 
 est payable in 1852. .$213,000 00 
 Deduct the above balance 
 
 in the Sinking Fund.. .98,753 31 
 
 Balance to be provided 
 
 for-- ,..$114,246 69 
 
 The state of the Funds held by the Bank in Jan. 1852, will be as follows : 
 
 (c) Capital . -. ..$1,156,318 48 
 
 (c) Surplus Revenue j_ ...".'.' 200,000 00 
 
 (c) Fire Loan 2,000,000 00 
 
 3,356,318 48 
 Deduct the foregoing amount to be advanced to the Sink- 
 ing Fund in January, 1852 _.. 114,246 69 
 
 Leaves this balance to be then held by the Bank $3,242,071 79 
 
 The following is a statement of the probable operation of the Bank, in 
 payment of the Public Debt, after 1st January, 1852: 
 
 The profits of the Bank, after payment of the interest on the Fire Loan 
 for the year ending 1st of October, 1852, maybe assumed to be $70,000 00 
 
 Profits of the year ending 1st October, 18531.. 70,000 00 
 
 " " ^' '• " "' 1854. 70,000 00 
 
 " " " " " '• 1855---- -.75,000 00 
 
 " " ^ ^' " " " 1856... .-.75,000%0 
 
 " " " ■ " '• " 1857 1.80,000 00 
 
 Sinking Fund will then be ...$440,000 00 
 
 (a) Note — These estimates of income were made previous to the surrender of the 
 State Stocks, held by the Bank, and included the interest on the said Stock. 
 
 (b) Note — This amount varies from the actual state of the Sinking Fund. This is 
 occasioned by the transfer of the surplus Revenue, $200,000, to that fund, (to aid in the 
 redemption of the Stock of 1826, which had not been chargeable on the Bank,) and by 
 the deposit of dividends of the South Western Rail Road Bank Stock, under the Act 
 of 1843, &c. 
 
 (c) Note — These three items will vary from these amounts. The capital of the Bank 
 has been reduced by the redemption of a portion of the Three per cent. State Stock. — 
 The Surplus Revenue has been transferred to the Sinking Fund, as above stated. The 
 Fire Loan has been reduced by the redemption of a portion of the 6 per cent. Stock, 
 and of the Bonds payable in London. 
 
PKESIDENT AND DIRECTORS. 519 
 
 EXHIBIT L— CONTINUED. 
 
 On the 1st Jantrary, 1858, there will fall due one half of the 5 per cent. 
 Sterling Bonds held in Europe (a part of the Fire Loan,) which, with 
 charges and exchange, will amount to about- -$554,350 00 
 Deduct the above amount of reserved profits of 
 
 Sinking Fund... ----- -..•>440,000 00 
 
 Will leave to be provided or silpplied by the 
 
 Bank from the funds in its charge, over and 
 
 above profits 1 - $114,350 00 
 
 The profits of the year ending 1st October, 1858. $75,000, 00 
 The profits of the year ending 1 st October, 1 859 . . 75,000 00 
 
 $150,000 00 
 
 Six per cent. Stock, part of Fire Loan, which 
 
 will fall due 1st January, 1860, amounts to. $482,222 22 / 
 Deduct the two years profits of Sinking Fund. .150,000 00 
 Will leave to be supplied by the Bank from the 
 funds in its charge, over and above the profits 
 
 on hand $332,222 22 
 
 Profits of the Bank for the year ending Oct. 1860, $60,000 00 
 " « .« " . " . '-' 1861, -60,000 00 
 
 '- " " " " , " 1862, 60,000 00 
 
 « " " "• '' ■ " 1863, 65,000 00 
 
 •' -." . « « " « 1864, 65,000 00 
 
 " ^« « " '• " 1865, 70,000 00 
 
 " " " '• " " 1866, 70,000 00 
 
 " " " >• " " 1867, 70,000 00 
 
 $520,000 00 
 On the 1st of January, 1868, the balance of the 5 per cent. 
 
 Bonds held in Europe will fall due, amoun'g to $554,350 00 
 Deduct the above amount of reserved profits or 
 
 Sinking Fund 520,000 00 
 
 Will leave to be supplied from funds held by the 
 
 Bank -^ 34,350 00 
 
 Profits of the year ending 1st October, 1868 $70,000 00 
 
 " . " " " " " 1869 70,000 00 
 
 $140,000 00 
 
 Six per cents, which will fall due on the 1st January, 1870, 
 (balance of the Fire Loan) amount to $482,222 22 
 
 Deduct above amount of reserved profits or Sink- ' 
 
 ingFund- . 140,000 00 
 
 Leaves to be supplied by the Bank from the fnnds 
 
 held by it, over and above profits. -. $342,222 22 
 
 Making the sum of ... $823,144 44 
 
 the entire amount required to be advanced to take up the debts of the State. 
 
520 ANNUAL REPORTS OF 
 
 EXHIBIT L— CONTINUED. 
 
 The Funds to be held by the Bank on the 1st October, 1 852, 
 
 it has been shown, would amount to about $3^242,071 79 
 
 Deduct the above amount to be supplied out of said funds 
 
 to take up the Public Debt. _. '.. 823,144 44 
 
 ' ' Leaving funds to the amount of-_- $2,418,926 35 
 
 after final payment of the State Debt. 
 
 The following then will be a synopsis of what will have been the opera- 
 tion of the Bank from the date of its. institution to the 1st January, 1870 : 
 
 FUXDS RECEIVED BY THE BaNK. 
 
 For Capital ,.-- -.$l,-372,250 60 
 
 Surplus Revenue of United States '.J __ 1,051,422 09 
 
 Fire Loan ---^ .--- -_...: 2,000^000 00 
 
 ^4,423,672 69 
 
 De^ts paid by the Bank. ' 
 
 6 per cents, and 3 per cents. Revolutionary Debts $215,93^ 12 
 
 Paid on State subscriptions to Rail Road 200,000 00 
 
 " 6 per cents, of 1820 800,000 00 
 
 " 5 per cents, of 1822 200,000 00 
 
 " 5 per cents, of 1824 250,000 00 
 
 " 5 per cents, of 1826 •_ 300,000 00 
 
 " 6 per cents, due 1848, Rail Road subscription 200,000 00 
 
 " 6 per cents, due 1850, do do 20a,000 00 
 
 " 6 per cents, due 1 852, do do 200,000 00 
 
 " 5 per cents. Sterling Bonds, Fire Loan^ 554,350, 00 
 
 " 6 per cent. Stock do _ 482,222 22 
 
 " 5 per cent. Sterling Bonds do.- . 554,350 08 
 
 " 6percent. Stock do _ ,482,222 22 
 
 ^ 4,639,076 56 
 Deduct Funds received for the State _._.i..__ 4,423,672 69 
 
 $215,403 87 
 Add balance of Funds remaining on hand 2,418,927 35 
 
 $2,634,331 22 
 The above statement exhibits the operation of the Bank with respect to 
 
 the funds received from the State, in the form of principal or capital. 
 The interest account is separate and requires a further statement. 
 
 During the first eight years after the Bank was established, 
 it paid in cash into the Treasury, (see Annual Statements 
 of the Comptroller.) $592,001 28 
 
 Subsequently — up to the 1st of October, 1843, the Bank has 
 
 paid to the holders of State Stock for Interest 2,004,884 63 
 
 Interest payable by the Bank up to the 1st January, 1852, as 
 
 estimated in the foregoing statement of the Sinking Fund,- .367,375 00 
 
PRESIDENT AND DIRECTORS. 521 
 
 Interest payable on the Fire Loan debt from the 1st October, 
 
 1843, to 1st January, 1858, when first payment falls due. 1,784,250 00 
 Interest payable on Fire Loan debt from 1st January, 1858, 
 
 to 1st Jan. 1860, when one half of the 6 per cents, falls due. .175,000 00 
 Interest payable from 1st January, 1860, to 1st January, 
 
 1868, when the balance of the Sterling Bonds fall due 468,000 00 
 
 Interest payable from 1st January, 1868, to 1st January, 
 
 1870, when the balance of the 6 per cents, fall due 58,000 00 
 
 $5,449,510 91 
 It therefore appears, that the Bank will have paid for In- 
 terest, either directly into the State Treasury or to the 
 
 Creditors of the State, the sum of. -.-.$5,449,510 91 
 
 That the State Treasury will not have paid one dollar of the 
 above Stocks, either principal or interest, but that the 
 
 Bank will have paid for interest . 5,449,510 91 
 
 Debts to the amount of.__: .4,639,076 56 
 
 And will have on hand a balance of - -.2,418,927 35 
 
 And that to effect these operations, the only means it has re- 
 ceived from the State, are the several sums above stated, 
 
 which amount in the aggregate to _• 4,423,672 69 
 
 One other mode of illustrating the action of the Bank is added, combi- 
 ning a general Interest account with the receipts and payments on account 
 of Capital, viz : 
 
 The entire amount of funds received from the State, and 
 used by the Bank as Capital, at various times, and for va- 
 rious periods $4,423,672 69 
 
 On the several items of this aggregate, Interest is calculated 
 
 "for the time the Bank has had them, occasionally making 
 
 rests, and adding profit to Capitai, and adding Interest on 
 
 such sums. The Interest chargeable to the Bank up to 
 
 1870, calculated in the above manner 6,300,000 00 
 
 The Bank to be charged to 1870, with $10,723,672 69 
 
 The Bank has paid for the State, and in 1870 
 
 will have paid to the amount of. $4,639,079 56 
 
 for the principal of Debts. 
 Interest on said debts, as exhibited in the 
 
 above statement of Interest account 5.449,510 91 
 
 Assets on hand in 1870, as Capital, as shown 
 
 above - 2,418,929 35 
 
 12,507,512 82 
 
 Leaving, as clear gain to the State in 1 870, by the operation 
 
 of the Bank. --.-.- $1,783,842 13 
 
 To exhibit precisely the rate of profit made by the Bank during the 
 above operations would require a complex statement and calculation, which 
 would not tend to elucidate the general view of the Bank operations in 
 redemption of the public debt. It is partially exhibited in the " Bank 
 Compilation," page 218, (241,) and in the Report of the President at page 
 405, (455,) of said Compilation. 
 
 66 
 
522 ANNUAL REPORTS OF 
 
 (1847.) 
 
 To the Honorable the Senate and House of Repi-esentatives of the State of 
 
 South Carolina. 
 
 The President and Directors of the Bank of the State of South Caro- 
 lina respectfully report : , 
 
 That during the year Ending on the 30th September, 1847, the profits 
 of the Bank have amounted to $303,252.01 
 
 Of this there ivas applied 
 To interest and expense of Fire \ 
 
 Loan in Europe, \ $73,802 44 
 
 To interest 6 per cents at home, 47,485 20 
 To Profit and Loss, 19,964 37 
 
 Carried to Sinking Fund, 162.000 00 
 
 $303,252 01 
 
 It will be observed, that $17,215 40 more has been applied to expense 
 account on Fire Loan in Europe in this than in the last year. This is in 
 pursuance of the provision of the Act of June 1838, which has been here- 
 tofore fully explained in the Annual Report of 1843. 
 
 In submitting the present statement, the Board feel that they have good 
 cause for congratulating the Legislature, not so much on the results of 
 this year's operations of the Bank, as on the fruits of that wise policy, 
 which, by sustaining it in periods of adversity, reaps now a double reward 
 in the prosperity of the country and its enlarged profits. 
 
 Under the continuance of a just fostering care, there is every reason to 
 believe the institution will continue to discharge all the obligations and 
 fulfil all the duties imposed on it by the State. 
 
 The first instalment of the six per cents, issued under the Act of 1839, 
 for an advance on the State's subscription to the Rail Road Company, 
 falls due on the 1st of January next, amounting to $196,873 71. The 
 Bank is prepared to pay ofi" the amount whenever presented. 
 
 In obedience to the resolution of 15th December, 1843, requiring this 
 Board to report, from time to time, what steps it has taken to purchase up 
 and extinguish the public debt, they inform the Legislature, that orders 
 heretofore existing with their agent in England, to purchase the Fire Loan 
 Stocks whenever they could be procured at fair prices, have been continued 
 and renewed — but the rates at which they ar€ held, owing to the good 
 credit of the State, have been so high that none could be purchased. The 
 Board have felt the less regret at this, as the payment due in January is 
 as heavy as the Bank can meet at any one time, without creating derange- 
 ment in its regular business. 
 
 A sense of duty compels the Board again to renew to the Legislature its 
 recommendation in regard to the collection of debts, made in 1841, in 
 1843, and again in 1846. To the correctness of the views expressed in 
 these several reports, time and experience have added stronger convictions; 
 and the attention of the Legislature is again earnestly invoked to the 
 subject. 
 
 The last instalment of the advance of six per cents to the Rail Road, 
 made in 1839, is due on the 1st of January, 1852. After that, no other 
 public debt is due until January 1858, a period of six years, when the first 
 instalment of the Fire Loan is due in England, — two years after, in 1860, 
 the second instalment is due, — eight years after, in 1868, the third; and 
 
PRESIDENT AND DIRECTORS. 
 
 523 
 
 in 1870, the fourth and last instalment is payable. These instalments 
 average nearly $500,000, being in amounts which all experience admo- 
 nishes us are two great to fall upon the Bank in single payments. If in- 
 stead of delaying frona 1852 to 1858, the Bank could be allowed to break 
 these heavy instalments into annual payments of about $100,000, commenc- 
 ing on the 1st January 1853, the board feel confident it would be best both 
 for the Bank and the State. But as both the amounts and times of each 
 payment are fixed by law and the contracts with the public creditors, and 
 can only be changed by joint consent, the Board respectfully submit to the 
 consideration of the Legislature, whether measures should not be adopted 
 to effect such arrangements with the holders of this Stock as will accom- 
 plish so desirable an object, 
 
 F, H. ELMORE, President, 
 
524 
 
 ANNUAL KEPORTS OF 
 
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PRESIDENT AND DIRECTORS. 
 
 525 
 
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PRESIDENT AND DIEECTORS. 
 
 529 
 
 G 
 
 Dr. State Treasury, for Loan under Act for re-huilding the Cn. 
 
 City of CJiarleston. 
 
 1847. 
 Oct. 1. 
 
 By balance from 
 last yeav._..-.tl,810j253 37 
 
 C. M. FURMAN, Cashier. 
 
 H 
 
 CorUingcnt Expense Account of the Bank of the State of South Caro- 
 lina, Xst October, 1846,^o \st Oct. 1847. 
 
 1847. 
 
 Sept. 30. To Officers' S-alaries---. . $16,961 00 
 
 " Expenses on Specie . 1,948 33 
 
 " Attorn'ey General and Solicitors 1,306 52 
 
 " Printing Bank Notes !___ 722 50 
 
 " Office expenses and hire of servant 660 64 
 
 " Costs. and Fees 659 76 
 
 " Books,- Stationery, &c 546 92 
 
 ^' Offices of Clerk of Court and Register Mesne 
 
 Conveyance 379 47 
 
 " Repairs to Old and New Banking House 333 13 
 
 -" Insurance —-. __ 276 85 
 
 " Post Office 181 14 
 
 " Subscription to Papers and Advertising 110 05 
 
 $24,086 31 
 
 Contingent Expense Account of the Branch of the Bank of the State of 
 South Carolina, at Columbia, from SOth Sept. 1846, to dOth Sept. 1847. 
 
 Officers' Salaries 7,600 00 
 
 Attorney's Fees 31 16 
 
 Repairs to Bank House 50 75 
 
 Advertising and subscription to Papery 62 87 
 
 Postages 71 16 
 
 Hire of Bank servant one year and six months - 150 00 
 
 Insurance _ 62 50* 
 
 Officers' Expenses on Bank business to Charleston 40 50 
 
 Stationery, Blank [^ooks, Fire Wood, &c.&c 341 19 
 
 f8,410 13 
 67 
 
530 
 
 ANNUAL REPORTS OF 
 
 Account of incidental expenses of the Branch of the Bank of tlie 
 South Carolina^ at Camden^ for the year ending on the 30^^ 
 
 ber. 1847. 
 
 State cf 
 Septem- 
 
 1846. 
 
 Dec. 1. ' 
 
 1847. 
 Jan. 7. 
 
 « 9 
 
 " 16 
 " 20 
 
 a u 
 
 « 26 
 
 « 30 
 Feb. 11 
 
 Mar. 4 
 
 « 25 
 
 Ap'l. 1 
 
 « 21 
 
 May 7 
 
 June 19 
 July 8 
 Aug. 14 
 
 
 To paid E. A. Salmond for ten cords Fire 
 Wo6d-_„ - -- 
 
 Thomas J. Withers his fee, as Bank 
 
 Solicitor, for 1846 
 
 Subscription to the Charleston Daily 
 
 Mercury, to 23d April, 1847 
 
 for repairs on Kitchen chimney., 
 
 Thos. W. Pegucs for blank Drafts. _ 
 
 do for advertising 
 
 for" Tecording in the office of the Sec- 
 retary of State. 
 
 J. D. Murray for stationery 
 
 for mourning Crapp and Ribbon, (J. 
 
 Patterson) — - - 
 
 J. R. McKain for paper :.>__ — ^^_- 
 for Banker's Magazine, from Nov. 
 
 1846, to Oct. 1847 -- 
 
 Postages, _- 
 
 J. R. McKain for a Discount Book, 
 
 and Renewal Statement Book _. 
 
 Subscription to Charleston Mercury 
 
 to 23d April, 1848, _. 
 
 Thos. W. Pegues foi^ Blanks 
 
 Postages . »-, 
 
 the Camden Journal for advertis 
 
 ing. 
 
 Stationery . — 
 
 General Expenses. 
 
 Stationerv. 
 
 7 50 
 2 00 
 
 6 25 
 1 00 
 
 40 50 
 12 50 
 
 General 
 Expeftses. 
 
 30 00 
 
 300 00 
 
 10 00 
 1 62 
 
 3 50 
 2 50 
 
 3 00 
 2 00 
 
 10 00 
 5 00 
 
 3 75 
 
 69 75 
 
 371 37 
 
 Total of incidental expenses [441 12 
 
 Branch Bank S. S. C. THOMAS SALMOND, President. 
 
 Camden. . D. L. DeSAUSSURE, Cashier.' 
 
 K 
 
 Account of Officers' s Salaries paid at the Branch of the BanJc of the 
 State cf South Carolina^ at Camden^ fw the year ending on the Wth 
 Sept. 1847. 
 
 Thomas Salmond, President . 1900 
 
 D. L. DeSaussure, Cashier 1500 
 
 Jesse S. Nettles, Discount Clerk 1400 
 
 Burwell B. Salmond, Out Door Clerk 1200 
 
 Branch Bank S. S. C. 
 Camden. 
 
 $6000 
 THOMAS SALMOND, President. 
 D. L. DeSAUSSURE, Cashier. 
 
PRESIDENT AND DIRECTORS. 
 
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PRESIDENT AND DIRECTOKS. 
 
 533 
 
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REPORTS 
 
 OF THE 
 
 PRESIDENT OE THE BANK 
 
 IN ANSWER TO SPECIAL CALLS. 
 
 I 
 
 (1841.) 
 
 Communication from the President of the Bank of tJie State of South 
 Carolina^ in relation to tiie salaries of tlve Solicitors. 
 
 Columbia, Dec. 4th 1841. 
 * To tJve Honorable tJte President and Membe'rs of the Senate. 
 
 The report of the committee appointed to investigate the affairs of the 
 Branch Bank at Columbia, laid upon your table yesterday, contains an 
 error in regard to the Board of the parent Bank, which justice to them 
 requires should be corrected. I endeavored to have the correction made 
 before the printing of the report ; and while it was yet preparing for pub- 
 lication, had a personal interview with the Chairman of the committee for 
 that purpose, to whom I pointed out the errOr referred to, and furnished a 
 written statement of facts. The report has since been laid upon your 
 table printed, and without correction, and as no other means of correcting 
 the error remains, I ask leave of your Honorable body to submit the fol- 
 lowing facts. 
 
 The error referred to is that in which, on the fourth page of the printed 
 report, in commenting on the employment of the Solicitors as Attorneys 
 of the Bank, the committee state that after the Branch had earnestly 
 urged a repeal of the regulation employing them, and its Board had 
 "finally, on the 23d of July, 1840, passed a Resolution disapproving of 
 the said regulation, which was transmitted to the parent Bank, and no 
 action had upon it until some time in March last, when the said salaries 
 were discontinued, and this Branch left^to select and pay its own counsel." 
 
 The facts in relation to that matter are these: Immediately after 
 taking charge of the Bank, under your election, as its President, I took 
 into consideration the system for the collection of our debts. I found the 
 Solicitors were employed as retained counsel, at salaries of $300 per 
 annum each. I was not satisfied that it was the best arrangement, but not 
 being disposed to make changes unadvised, and as the year had already 
 
 * A similaj' communication was sent to the House of Representatives. 
 
536 SPECIAL REPORTS OF 
 
 begun, and tlieir right to the salary was vested for the year 1840, 1 directed 
 my attention to devising, foi* the future, a better system ; inquiries were 
 directed by the Board to be made through me at such sources as would 
 give them the best information. I was 'in* Columbia in July, 1840, and 
 attended a meeting of the Board of the Branch Bank, brought the subject 
 before them, and finding they unanimously opposed the system, suggested 
 the very resolution, as indicating their opinion, which is referred to in the 
 report of the committee. It was forwarded to the Board at the parent 
 Bank, but so far from there being no action on it until March, 1841, the 
 subject received a great deal of attention — was referred to a committee — 
 and finally, the Board informally instructed me to bring th€ subject before 
 the Legislature, and to endeavor to procure an alteration of the law which 
 would enable us to simplify the collection of our debts. The Committee 
 of Ways tmd Means of the House of Representatives, and of Finance in 
 the Senate, will bear witness that their directions were at the last session 
 attended to by me. A bill for the purpose passed two readings in the 
 Senate, but was not acted on in the House. Immediately upon its failure, 
 I wrote, ipi December, 1840, to the Board in Charleston, informing them of 
 the fact, and advised some Tmrnediate action. The Board promptly passed 
 a resulution dissolving the connection with the solicitors, and informed 
 them of it ; as those of them now here' can testify, and as- one of them did 
 state to the Chairman of the Committee of the House of Representatives. 
 No Solicitor is, or has been, in the pay of the Bank at the salary of $300 
 during any part of the year, 1841, nor has one cent been paid on that 
 account for 1841. The salary .of one of them for 1840, was not drawn 
 until sijice the commencement of the fiscal year. of. 1841, a circumstance 
 explained, as the President of the Branch informs me, by himself, to the 
 Chairman of the Committee of the House of Representatives. 
 
 Respectfully submitted^, 
 
 F. H. ELMORE, 
 
 President o^Bank of the State of South Carolina. 
 
 (1841.) 
 
 Rejport of tJie President of tJie Bank of the State of South Carolina^ in 
 obedience to a Resolution of the General Assembly^ on the Bonds due at 
 the Parent Bank, and tlie Branch at Colmnbia. 
 
 To tJie Honorable tJie President and Senate^ and Speaker and House 
 of Bjejyresentatives. 
 
 In obedience to the resolution of your Honorable body of the 18th De- 
 cember, 1840, I have the honor to lay before you the accompanying state- 
 ments of the number of bonds due at the parent Bank, and at the Branch 
 at Columbia, and such as are becoming due, with the year in which they 
 respectively fall due — the original amount of said bonds, and the amount 
 
PRESIDENT OF BANK. 537 
 
 remaining unpaid on the 1st October last. No report has been rendered 
 yet from the Camden Branch, but as soon as receiveii, it shall be laid before 
 the Legislature. 
 
 It will be seen by reference, to the statement of the parent Bank, marked 
 A, that since 1830, three hundred and twenty bonds have come into that 
 Bank. Of these, two hundred and sixteen have been finally settled ; nine 
 have been sent to suit, and are in progress of collection ; and ninety-five 
 remain in the bond account. That of those remaining in Bank, the origi- 
 nal amount was nine hundred and nine thousand four hundred and seventy- 
 three dollars thirty-three cents, ($909,473 33) and that besides interest 
 paid in, there' has been collected of principal, three hundred and two 
 thousand nine hundred and one dollars seven cents. (302,901 07) 
 
 I have further to report to your Honorable Body, that strenuous efforts 
 have been made by the Board, to carry out your instruction contained in 
 the resolution of the same date, requiring them "to call in the bonds held 
 by the Bank, and which are past due, as speedily as the circumstances of 
 the country and of the individual debtors, will permit." The circumstances 
 of the country are known to have been exceedingly embarrassed, and those 
 of the individual debtors, in many instances, were not less so. Where a 
 failure to pay resulted from unavoidable misfortune, such as loss of crops, or 
 other accidental disabilities, which, in time, the industry and proper exer- 
 tions of the party might remedy, and where the disposition to make all 
 proper exertions were satisfactorily shown to the Board, they considered 
 that they acted conformably to your instructions, and for the best interests 
 of the Bank, the State, and its citizens, by giving such indulgence as the 
 circumstances of each case required. They endeavored to exercise the 
 same judicious discretion which a prudent and humane creditor would 
 always pursue as an individual, where debts would be endangered, and 
 sometimes lost, if forced to the extremity of immediate collection ; but 
 which are often rendered perfectly safe, by either procuring additional 
 security, and enabling the party to work out of his difficulties, or by saving 
 his property to better times, when its value may be obtained for it. A 
 course of rigorous exaction which makes no allowance for misfortunes, and 
 has no forbearance for those who have unhappily been caught, heavily 
 burthened with debt, by the sudden change of a period of great prosperity 
 into one of extreme hardship and pressure, and which would give no time 
 nor opportunity for industry and economy to work through their difficulties, 
 would, it is true, force large sums into your Bank, to be again employed 
 in loans, discounts or dealings in exchanges ; but it will be equally clear, 
 that the Commonwealth would be injured, the estates of debtors sacrificed, 
 and the property of every other citizen greatly lessened in value, by the 
 quantity forced upon the market at ruinous prices. The natural conse- 
 quence of such action, on the part of the Bank, which is the largest cre- 
 ditor in the State, would be to alarm all confidence, and to cause other 
 Banks and large creditors to rush into a like course, causing immense 
 amounts of property to change hands at nominal prices, involving many 
 families in wide spread ruin, and sending your slaves in crowds, to improve 
 by their labor, other States, while nobody would be benefitted by the ope- 
 ration, but those who are out of debt and in the command of money and 
 who can stand by in the general wreck, and buy up the property thus need- 
 lessly forced into market. * 
 The increase apparent in the Bond account, has not arisen from original 
 
 68 
 
538 SPECIAL REPORTS OF 
 
 loans, but from Bonds received in payment of property sold for debts dne 
 to the Bank, or as additional and collateral security for debts already sub- 
 sisting. 
 
 All of which is respectfully submitted, by 
 
 F. H. ELMORE, 
 President Bank State of South Carolina. 
 
 Statement of Bonds dtie at tJie Bank of tJie State^ in CJiarleston^ on tJie 
 
 \st October, 1841. 
 
 No. of Bonds. Original Amount. Balance Unpaid. 
 
 - 1 $5,000 00 $3,416 86 
 
 1 4,165 38 2,808 37 
 
 2 25,500 00 7,489 36 
 '3 ^ 19,788 00 7,572 65 
 
 13 86,050 '27 35,390 37 
 20 181,230 00 111,575 35 
 
 14 207,740 00 105,336 19 
 19 142,211^52 125,442 75 
 22 238,287 66 207,560 37 
 
 Dec. 
 
 1834 
 
 ii 
 
 1835 
 
 u 
 
 1836 
 
 It. 
 
 1837 
 
 u 
 
 1838 
 
 u 
 
 1839 
 
 iC 
 
 1840 
 
 u 
 
 1841 
 
 Not due 
 
 95 $909,473 33 $606,572 26 
 
 The principal of the above Bonds has been reduced, by payments, 
 $302,901 07. ^ . , ^ 
 
 From 1830 to the present time, the Bank has held three hundred and 
 twenty Bonds, of which two hundred and sixteen have been finally settled. 
 Nine have been transferred to Suit account, and are in process of collec- 
 tion. Ninety-five remain in Bond account. Of a portion of these, the 
 Bank has taken measures to enforce payment. The above statement 
 alludes to the y^ar when the .whole bond became due. 
 
 CM. FURMAN, Cashier. 
 
 B 
 
 Statement of Bonds due at tJw Bratwh Bank, Coliimhia, on the 1st of 
 
 
 Octobe?- 
 
 , 184L 
 
 
 No. of Bonds. 
 
 Original Amount. 
 
 Balance Unpaid. 
 
 Dec. 1833 1 
 
 
 $3,275 38 
 
 * 33 22 
 
 " 1835 2 
 
 
 9,588 50 
 
 6.965 00 
 
 « 1837 1 
 
 
 2,725 00 
 
 2,725 00 
 
 « 1838 3 
 
 
 17,327 00 
 
 t9,780 23 
 
 " 1840 1 
 
 
 810 00 
 
 450 00 
 
 « 1841 1 
 
 
 8,339 00 
 
 6,000 00 
 
 Not due, ^ 1 
 
 
 6.817 00 
 
 2,538 14 
 
 In suit, judgment, 1 
 
 
 12',000 00 
 
 12,000 00 
 
 11 $60,881 88 $40,491 69 
 
 Since the end of the fiscal year, there has been paid (3,333 32) three 
 
 hundred and thirty-three dollars and thirty-two cents, on the above bonds. 
 
 M. A. MOORE, Cashier. 
 December 3, 1841. 
 
 ♦ Since paid. t ^,000 since paid. 
 
PRESIDENT OF BANK. 539 
 
 (1841.) 
 
 R^ort of tJie President of the Bank of tJie State^ in answer to a Resolu^ 
 tion respecting certain debts., ■■ ' 
 
 To the Honorable the President and Members of the Senate^ and tJie 
 Speaker and Members of the House cf RqrreseiUatives. 
 
 GrENTLEMEN : — I havG the honor to submit herewith the following Report, 
 in obedience to the subjoined Resolutions of your Honorable Body, dated 
 December 17, 1841, (this day) viz; 
 
 " Whereas, the committee appointed at the la«t session of the Legisla- 
 ture, to investigate the affairs of the Bank of the State of South Carolina, 
 have made their Report, and laid the same before this body : 
 
 " And Whereas, the said committee have reported, -amongst other things, 
 that " on the large loans to Corporations, which are but few, your Committee 
 had no means of estimating the value of the real security with accuracy, 
 but the more extensive acquaintance of the Members with particular pro- 
 perty will enable them to do so." 
 
 And whereas, the" said committee have reported further, that "the 
 amount at the Agencies only appeared by the entries, and how much of 
 tltese sums the Hamburg and Georgetown Agencies will realize, your com- 
 mittee had no means of estimating, and cannot, therefore, say that these 
 amounts will be positively available to meet the liabilities of the Bank." 
 
 Be it tJierefore Resolved^ That, the President of tlie said Bank do-report 
 to the Legislature, without delay, the amount of the debts owing by Incor- 
 porations to said Bank ; when payable ; when created ; what security, if 
 any ; and whether the security upon any of them has been changed or 
 released, and other matter necessary to put the Legislature in full posses- 
 sion of the real condition of these debts. 
 
 Resolved, That the said President do also report to the Legislature, with- 
 out delay, all the information in his power, as to the sums at the Agencies 
 oi Hamburg and Georgetown, so as to exhibit the true condition of these 
 debts." 
 
 The late period at which these inquiries have been propounded, and the 
 absence, at this place, of books, documents, and papers necessary for 
 reference, will prevent that exactness of information in many particulars 
 which is desirable. But it is believed that the means within my reach 
 here, will put it in my power to give the information sought for with suffi- 
 cient accuracy to enable the Legislature to be satisfied on all material 
 points of the inquiries. 
 
 The funds charged in the annual statement of the Bank, "Hamburg 
 Agency," and referred to in the report of the Committee of Investigation, 
 and the foregoing Resolution, are all covered by a judgment against the 
 sureties of the late Agent of the Bank. There is no Agent of the Bank 
 there now. The Agent who formerly transacted our business, fell in arrear 
 to the Bank and failed ; suit was brought on his bond, and judgment ob- 
 tained for a part of the demand. The amount charged, is the balance ^9,\ 
 
540 SPECIAL REPORTS OF 
 
 was due on the 30tli September, 1841, on that judgment — it is now some- 
 thing less. The Solicitor reports the debt as good beyond any possible 
 question, and I have, from information derived from other sources, no doubt 
 of its perfect safety. 
 
 The amount charged " Georgetown Agency," and referred to in like man- 
 ner, is composed of certain debts, the residum of the business of the 
 Branch formerly existing there. The principal debt was upwards of five 
 thousand dollars on the 30th September last, of which two thousand have 
 since been paid; the balance, I am informed by the Cashier, is abundantly 
 secured. The rest of the account is composed of several debts represented 
 and believed to be good, but of which, in the absence of the books, I can- 
 not furnish the details. 
 
 The Resolution which requires a Report upon the debts owing by Incor- 
 porations, covers a great variety of points, some of which, (of no great ma- 
 teriality) it will be impossible to answer without reference to books, which 
 are not here, and to wait until that information could be procured, would 
 delay this report beyond the adjournment of the Legislature. I have, 
 therefore, hastened a reply without further delay. The resolution calls for, 
 
 1. The amount of debts owing by Incorporations. 
 
 2. When payable 1 
 
 3. When created? 
 
 4. What security, if any ? 
 
 5. Whether the security has been changed or released ? 
 
 6. And every other matter necessary to put the Legislature in full pos- 
 session of the real <;ondition of these debts. 
 
 In the absence of the books, the amount which will be given below, in 
 most instances, must be only approximations from memory, and imperfect 
 data within my reach here ; but I believe they will, in all cases, be suffi- 
 ciently accurate for correct conclusions, both as to the safety of the debts, 
 the amounts owing, the security, and ^he policy of them. Amongst the 
 debts of Incorporations, is one owing by the City of Charleston, for a pur- 
 chase of property sold to satisfy a debt under the Fire Loan ; also, one of 
 the Louisville, Cincinnati and Charleston Rail Road Company, whose 
 bonds and note we hold ; others are due from Manufacturing Companies ; 
 some by companies for improving and establishing within our own State, 
 places of resort for invalids and travellers during our Summers, at Mineral 
 Springs ; and some by the Theatres, Medical Colleges, and Churches. 
 The amount of the whole was originally near $400,000 — it is now upwards 
 of $250,000. These debts were created at different periods, and are made 
 payable at different times. Without the aid of the books of the Bank, 
 and the papers which are the evidences of these debts, it is not in my 
 power to state, concerning so many different transactions every particular, 
 as almost every one occurred and was perfected, before my connexion with 
 the Bank commenced. 
 
 On the 4th point of inquiry, I have to state that the security is, in my 
 judgment, good in all the cases. To two of them I will advert more particu- 
 larly hereafter, as it is presumed that they are more especially the object 
 Of this call, and as, with one of them, I have a personal connexion and 
 interest, which makes it peculiarly desirable to me to have the fullest infor- 
 mation before the Legislature. In the case of the City of Charleston, be- 
 sides its obligation, a mortgage of very valuable property secures the debt ; 
 in another, the Louisville, Cincinnati and Charleston Rail Road Company, 
 
PRESIDENT OF BANK. 541 
 
 we have, for a large part of it, the bonds of the Company guarantied by 
 the State, and, for the rest, a good note, which is regularly reduced when 
 we have to pay instalments on our shares in the road ; it is secured by 
 mortgage of the road also. In all other instances we have good personal 
 security and in most, mortgages on good property besides. 
 
 In no instance has the security, originally given, been changed or releas- 
 ed, within my knowledge ; except so far changed in degree, as to add to and 
 increase that before held by the Bank. 
 
 If any exception has occurred, I am not aware of it. The only case 
 where such a construction could be supposed for any transaction, is one, 
 where the facts are not known . correctly, and which will be explained 
 below, viz : — That of the Loan to the Limestone Springs Company, to 
 which I will presently advert. 
 
 In two cases, it is supposed the most full information is sought for, to 
 wit : — The Loan to the Limestone Springs Company, and the Loan to the 
 Nesbitt Manufacturing Company. And as the resolution requires "every 
 other matter necessary to put the Legislature in full possession of the real 
 condition of these debts," I shall proceed to report, fully, on all particu- 
 lars which may enable them to come to a fair and just conclusion. 
 
 I. The LiTnestorie Springs Company. Every part of the transactions, 
 in regard to this loan, occurred before I had any official connection with the 
 Bank, and the facts I state, I have derived from the officers of the institution, 
 and the then President of the Company. This Company, intending to build 
 up and improve a Watering Place at the Limestone Springs, in Spartan- 
 burg District, with a view to keep within our own State, the money of its 
 citizens who usually travel out of it in Summer, spending large amounts in 
 other States, applied to the Legislature for a loan, to aid them in erecting 
 buildings. The application was favorably regarded, but was considered as 
 more appropriately within the sphere of the operations of the Bank. The 
 expressions of opinion were such, as to cause a withdrawal of the applica- 
 tion from the Legislature, and an application to the Bank, where it was 
 granted, upon the following conditions : — The note of responsible Directors 
 was taken for the loan of twenty-one thousand two hundred dollars, which 
 was to be applied in erecting improvements, and when the improvements 
 were so valuable as to afford good security for the debt, a bond of the 
 Company, and a mortgage of the lands, (about three hundred acres) thus 
 improved, was to be given, and the note was then to be surrendered. 
 
 The terms were complied with ; very large and expensive improvements 
 costing upwards of fifty thousand dollars, were made, a bond and mortgage 
 was executed, and the papers exchanged, on the 26th of January, 1836, 
 three years before I was honored with your confidence, by being placed at 
 the head of the Bank. 
 
 This property was valued by appraisers, in 1 838, at upwards of seventy 
 thousand dollars, and is now worth, more than forty thousand dollars. It 
 has been sold under the mortgage to the Bank, and purchased in by it, at 
 fifteen thousand dollars, and I do not entertain any fears, but that it can 
 be disposed of for more money than the debt to the Bank. 
 
 2d. The remaining case is that of the loan to the Nesbitt Manufactur- 
 ing Company. As I am a stockholder in this company, and was so when I 
 was placed at the head of the Bank, and for several years before, and as it 
 is, in many points of view, a very important transaction, every considera- 
 tion which could affect me as an officer of the public, as well as a citizen, 
 
542 SPECIAL REPORTS OP 
 
 induces me to desire that the fullest knowledge of all that relates to this 
 transaction, should be spread before your Honorable Body. And as the 
 terms of the resolution call for every other matter necessary to put the 
 Legislature in full possession of the real condition of these debts, I have 
 no doubt but that in giving the following details^ I am acting in accordance 
 with your call. " , > 
 
 The origin of the loan was as follows : — The company was formed to manu- 
 facture iron. It had purchased some 800t) acres of land, covering the most 
 inexhaustible beds of iron ores, which were of the best quality, and great rich- 
 ness, having the finest water power, limestone, fuel, and every element aiid 
 every facility for this manufacture. - The Company informed themselves 
 of the wants Of the State in this particular, and ascertained that there' 
 went out of the State, to pay for its consumption of iron,* not including 
 cutlery and such small wares, little, if anything, short of $2,000,000 annu- 
 ally. They were satisfied they could erect works which could make from 
 2 to 3000 tons of iron annually, which, in its various forms, of castings, 
 bars, rods, plates and nails, could be made to supply from $150 to$300,000 
 of this consumption, and keep that amount of oui* money at home, to 
 stimulate and reward the industry of our own State, while it would prove 
 to the stockholders a profitable investment. Upwards of $100,000 was 
 paid in; lands purchased, costing nearly 60,000; upwards of 100 slaves 
 at once put on the premises; and the improvements, to consist of four 
 furnaces, for smelting ores, finery, bloomeries, rolling mill, foundry, ^ail 
 factory, and all the accompanying shops and appliances for the manufacture 
 of iron, were beg^n or projected ; but before progressing far into this 
 great and useful enterprise, an application was made, in writing, to the 
 Bank for aid, " and a loan of- $100,000 asked for, to enable the Company 
 to put their works into complete operation." The Bank was then filled 
 with money ; the Surplus Revenue was untouched, and the Bank was in 
 possession of larger funds than it had immediate use for. The proposition 
 Was favorably received. A part of the money was advanced on the notes 
 of some of its members, and a tvritten -engagement teas taken from the 
 Agent of the Company^ duly authorized tJwrefor^ that when the sums 
 advanced amounted to the sum necessary to enable the Company '• to put 
 their works into complete operation," the company should execute a bond 
 with the personal security of its members, and a -mortgage of its lands, 
 works, and such number of negroes as the Bank might require. With 
 the money advanced, and their own resources, they progressed with their 
 improvements, and made contracts for others on the faith of the engage- 
 ments of the Bank ; but, most unfortunately for them, the State diverted a 
 large amount of the funds the Bank relied on, to the Louisville, Cincin- 
 nati and Charleston Rail Road Company, and othar uses, and the Bank, 
 after advancing about half the cash promised, was compelled to decline 
 any further advances. From that cause and from that time, the Company 
 has encountered very great difiiculties, which have delayed them full two 
 years in getting their works completed and in full operation. They are 
 now in full and successful work, and are producing castings and iron of 
 the best quality, in all varieties for use, including upwards of a ton of nails 
 per day, and which will shortly be increased to double that quantity. 
 
 The property now consists of some eight thousand acres of lands, on 
 which are four Blast Furnaces, Finery and Bloomery, Forges, Rolling 
 Mills, Feundry, Workshops, Dwellings, a Nail Factory and Merchant Mill, 
 
PRESIDENT OF BANK. 543 
 
 wltli a valuable Toll Bridge across the Broad Biver, and about one hund- 
 red and sixty slaves, many of them valuable workmen, and well skilled 
 in the different branches of this manufacture. 
 
 The lands have cost nearly sixty thousand dollars. The improvements 
 are solid and permanent; all the machinery of the best construction, and 
 according to the most modern improvements, and will bear comparison 
 with any in the United States. But perhaps the best test of its intrinsic 
 value, is to be found in a simple fact, that the present President and mana- 
 ger of this Company, (who by a remarkably sound judgrhent and untiring 
 industry, has been eminently successful in the manufacture of iron,) a 
 little more than one year ago, purchased forty thousand dollars of stock in 
 this Company, and before doing so, examined the lands and the improve- 
 ments carefully. The lands he valued at more than they cost — sixty 
 thousand dollars, and the improvements at one hundred and twenty-five 
 thousand dollars, and at that estimate took his stock. Since then, from 
 fifteen to twenty thousand dollars more of improvements have been added. 
 With these, he is confident that he will, during the year 1842, turn out the 
 equivalent of two thousand tons of iron, worth from eighty to one hundred 
 and ten dollars per ton. 
 
 Having thus stated such preliminary facts, ias will enable the Legislature 
 to judge with some degree of accuracy as to what follows — I proceed to 
 report the circumstances which remain to ^ be stated, in regard to the 
 present condition of this debt, and the security for it. Besides the notes 
 of the stockholders, on which the Bank had advai^ced a part of the loan 
 agreed to be made, there were some other notes owing by one of them, 
 from whom the company had bought its lands ; all of these notes were 
 discounted previous to my election as President : Jbut after that event, the 
 Company proposed to the Bank to assume payment of the whole, and 
 without changing either these notes, or those given for the money advanced, 
 but letting them remain as debts, (some of the parties haying died) to 
 give to the Bank, as additional security, the bond of the Company, accord- 
 ing to the spirit of the agreement originally made with it, and a mortgage 
 of the whole of the lands, with the works and improvements, and one 
 hundred of its most valuable slaves. The terms were acceded to, and a 
 bond for $91,898 77, with a mortgage of property worth at least double 
 that amount, was, in October, 1840, added to the security already possess- 
 ed by the Bank, in the individual and personal responsibilities of the 
 original makers of the notes ; and that no room should exist for supposing 
 these liabilities were lost, a written consent of the parties to the notes 
 under their seals, respectively, has been executed, which keeps alive the 
 original debts on the notes, and the liabilities of the parties to them unim- 
 paired. 
 
 *If this loan is to be considered as a mere money" transaction, the securi- 
 ty is believed to be sufficient ; although the amount is large in its aggregate. 
 But when it is remembered, that it is as much an individual as a corpora- 
 tion debt, and the number and undoubted responsibilities of the individu- 
 als concerned is estimated, and a division of it be made amongst them, 
 the proportion of each would be esteemed but a moderate accommodation. 
 
 If the object had been to foster a mere private speculation, perhaps it 
 shguld be judged by a rule somewhat different from what ought to be ap- 
 plied to it a^ it is ; the enterprise was not sqlely a private enterprise, but 
 one intimately blended with the advancement of real and solid benefits to 
 
544 SPECIAL REPOllTS OF 
 
 the State. It disinters from the bowels of the earth, where it sleeps in its 
 crude form, inert and useless, the most valuable mineral known to man, 
 and converts it from a dead and cumbersome earth, into an agent of living 
 and active usefulness ; one entering into every use, and constituting the 
 basis of all the pursuits and business of civilized life ; an essential, neces- 
 sary in every art and improvement, and in every trade. With i^ the earth 
 is tilled for food, clothing is made to cover our nakedness, houses for our 
 shelter, ships for our commerce, arms to defend our property, lives, and 
 liberty — and, in short, from its use, come all the innumerable appliances, 
 which at every moment and in every circumstance and condition of life, 
 minister to the necessities, comforts and enjoyments of existence. It may 
 be added, that this enterprise constitutes a most important step towards 
 converting into one of its most productive portions, a large section of your 
 State, which, although abounding in fertile lands and industrious farmers, 
 and admirably adapted for raising the provisions to support a manufactur- 
 ing population, and having all the natural advantage necessary for such 
 pursuits, has hitherto contributed but little to the productive wealth of the 
 State. 
 
 It should not, therefore, be a matter of censure or surprise, that my 
 able, patriotic, and venerable predecessor, under whose andministration this 
 transaction took place, should, in his known devotion to all that he thought 
 calculated to advance the welfare of the State, have given his sanction to 
 a measure calculated to develope its richest resources, and to stimulate its 
 improvement in all peaceful pursuits, while it prepared a resource for arm- 
 ing and defending her in a time of war; and that too, with perfect safety 
 to her treasury, and without costing the public a cent. 
 
 All of which is respectfully submitted, 
 
 F. H. ELMORE, President. 
 
 (1842.) 
 
 Letter of the President of the Bank^ in an&wer to a call from the Committee 
 of Ways and Means respecting the Mre Loan Borrowers. 
 
 To C. Gr. Memminger, Esq., Chairman 
 
 Committee of Ways and Means : 
 
 1 have before me the call of the Committee of Ways and Means, for my 
 opinion, "Whether the gi-anting relief to the Borrowers of the Fire Loan in 
 Charleston, will affect injuriously the credit of the State abroad, or the 
 ability of the Bank, as the agent of the State, to meet and discharge, as 
 they fall due, the payment of the interest and principal of the public debt, 
 and my reasons therefor." 
 
 The credit of the State abroad, depends upon an ability to meet her 
 debt ; the punctuality with which she discharges the payment of the in- 
 terest ; and the evidence she exhibits to the holders of her bonds, that she 
 will have the means in readiness, when the principal falls due, for its faith- 
 ful payment. 
 
 The ability of the State to pay her public debt depends, first, upon her 
 
 i 
 
PRESIDENT OF BANK. 545 
 
 general resources, viz : The property of her citizens, upon which taxes 
 may be laid ; and second, upon specific funds or property of her own, to 
 which she may resort for means of payment. Of the latter class, the Bank 
 of the State constitutes the chief, and for all available purposes, almost the 
 only resource. 
 
 The State has solemnly pledged to the public creditors, all the former, 
 in pledging the faith and credit of the State, and has specifically and dis- 
 tinctly pledged and appropriated the Bank, and its profits also, to the same 
 purpose, making it, especially in the case of the foreign creditors, the agent 
 of the State to pay the interest and principal, and directly responsible to 
 them for both. 
 
 First : The credit of the State abroad, so far as it depends upon the 
 value of the property of her citizens generally, and their ability to meet by 
 taxation, whatever may be required for the fulfilment of her contracts with 
 the public creditors, and for the preservation of her faith and honor un- 
 tarnished, would not, it appears to me, be injuriously affected, either at 
 home or abroad, by the proposed measure of relief; but, on the contrary, 
 by preventing heavy and ruinous sacrifices of the property of this class of 
 its citizens, and giving them time and opportunities for working through 
 their difficulties in more propitious times, very great depreciation in the 
 values of other property of all classes of our people will be arrested, and a 
 serious derangement of business avoided, by which the general ability of 
 all to sustain themselves, and meet their liabilities, will be promoted, and 
 the State be strengthened and made more able to fulfil her obligations, if 
 ultimately she should be placed under the necessity of resorting to taxa- 
 tion for the means. 
 
 Second : The inquiry of the Committee, which covers the ability of the 
 Bank to meet and to pay the interest and principal of the debt of the 
 State, is that which is most material. To a great extent .the same general 
 principle will hold in this, as in the first branch of the subject : The ability 
 of the Bank will depend on the ability of those who are its debtors ; and 
 they consist, as to this inquiry, of two classes. 
 
 First : The debtors, other than Fire Loan Borrowers. 
 
 Second : The Fire Loan Borrowers. 
 
 Although totally distinct in the natue and character of their debts, there- 
 is a connexion or sympathy in their affairs, which exercises, to some ex- 
 tent, an influence over each. It is impossible in any community, to cause 
 a serious depreciation in the prices of any kind of property which is of 
 considerable extent and value, without affecting, not only all other property 
 of the like kind, but of all other kinds ; and every depreciation of value in 
 property, to that extent diminishes the means of those who are in debt to pay 
 their debts ; distrust succeeds to confidence — settlements are urged — em- 
 barrassments multiply, and panic and ruin succeeds. The property mort- 
 gaged by the borrowers of the Fire Loan is about 130 houses and lots 
 extending to 1 60 tenements, and worth, at ordinary valuation, scarcely less 
 than $1,500,000, and probably as much as $2,000,000. If this relief is 
 not extended, much of this property must of necessity become an utter 
 sacrifice to the present owners, for it has now no market value. It may 
 not be out of place to recall to your memory some circumstances, besides 
 the general causes which depress it everywhere, which conspire just now 
 to exercise an unfavorable effect on the value of property in Charleston. 
 The fire itself, in April, 1838, destroyed probably two millions of ^operty 
 
 69 
 
546 SPECIAL REPORTS OF 
 
 whicli was an entire loss, the failure of the United States Bank has sunk 
 two millions and a half more of the capital and resources of her citizens, 
 and their expenditure for constructing our Rail Road has absorbed no 
 inconsiderable additional sum. The buildings erected by the petitioners 
 have, with the lots on which they stand, cost, generally, considerably more 
 than the money borrowed. These circumstances are sufficient in them- 
 selves to exercise a very unfavorable influence on their value, but com- 
 bined with the universal derangements of business, the fall in the price of 
 our staples, and depreciation of property everywhere, the effect is almost 
 fatal to any present market price whatever. We have tested the truth of 
 the above opinion, by exposing at different times during the past year, 
 houses and lots made liable by failure to meet the requirements of the Fire 
 Loan, and I regret to say, that no purchasers appeared, and the resjilts 
 have been such as to satisfy me that fundamental changes are necessary in 
 the law. I cannot, therefore, but answer, that the relief proposed would 
 exercise a beneficial influence on the ability of the whole community, and 
 in that view rather strengthen than weaken the ability of the Bank, as it 
 will of all other Banks connected with the business of the city. 
 
 In regard to the Fire Loan borrowers themselves, there are some views 
 on which my opinions are founded, which I proceed to give. If they are 
 able, or made able to meet their Bonds as they fall due, or in a reasonable 
 time before the debt contracted for this loan by the State falls due, there 
 can be no serious apprehension for the credit of the State.' The question 
 then arises, are they able ? And if not able, is there any plan by which a 
 reasonable prospect is held out, to make them able ? 
 
 From what I have stated above, it will appear, that I do not think, as a 
 class, they are able to meet and discharge, as they fall due, their interest 
 and instalments under the law as it now stands, and I feel it due to them 
 to say that this disability has grown mainly out of revulsions and reverses 
 for which they are not to blame — causes affecting all business, property, 
 and pursuits in all quarters of the globe. I have stated before, that the 
 lots on whicii the buildings are erected, were in many instances purchased 
 for the purpose ; they were paid for, to get a clear title to mortgage, at 
 high prices, and the buildings, especially those put up at an early day, 
 were built at great expense of materials and labor ; and the parties have 
 expended, out of their own means, very considerable sums in addition to 
 the money borrowed. The present unexampled depression, therefore, finds 
 them exhausted by the great expenses incurred in their improvements ; and 
 the same causes have so diminished the values and profits of mercantile 
 pursuits in Charleston, that tenants and business are no longer to be had 
 at remunerating prices. The fall of rents has been very great ; 50 per 
 cent, perhaps would not . measure the extent of the fall ; and under these 
 circumstances, to carry out the law as it stands, the Bank, upon their 
 failure to pay either interest or principal, must sell the houses and lots on 
 which failures are made, for cash. For these, with now and then an ex- 
 ception, no real purchaser appears, and the consequence is, that the proper- 
 ty is bid off by the owner, who don't pay, or by the City of Charleston as 
 the guarantor. It is therefore manifest -that the credit and ability of the 
 Bank is no way increased by this operation, but rather we may say, 
 lessened and impaired. 
 
 It is proper, perhaps, I should advert to the effect likely to be produced 
 on the City of Charleston, if the relief is not granted. Unless some ex~ 
 
PRESIDENT OF BANK. 547 
 
 traordinary and immediate cliange comes over her affairs, the trade and 
 commerce of the city, now greatly embarrassed, will not be increased in 
 extent or value. Some of these buildings are now without tenants, and 
 unoccupied. She will have no increase of men of business — no addition to 
 her capital, and therefore no use for the buildings which will be fhrown 
 upon the market. These must be bought in by her, and she be compelled 
 to pay the Bank for the Bonds she guaranteed. How is she to pay this ? 
 She cannot sell the houses ; and while she owns them, she receives for 
 them but little rent, and no taxes. She must raise the amount she will 
 have to pay, by taxing the property and business of her people. The 
 taxes already imposed on business and property for the use of the city 
 government, are so heavy, as to be a serious burthen on commerce and 
 residence in her limits ; and it is a fact well known, that many of her citi- 
 zens, including some of her most opulent men of bjisiness, as well as others, 
 who could contribute much to support her, have removed out of the cor- 
 porate limits of the City, on the Neck, where a new city is growing up. 
 Every person who leaves, weakens her resources, and compels her to in- 
 crease the taxes on those who remain. The increase in her taxes, which 
 will be necessary to enable her to pay her liabilities for this debt, if in the 
 whole or any considerable portion, it is thrown upon her, will cause a still 
 farther depopulation, less need for these buildings, a constantly descend- 
 ing value of all property in her corporate limits, and a consequent decline 
 in her commerce, capital, population and importance. 
 
 The important question then recurs. Is there any reasonable prospect 
 held out to make the property built with the Fire Loan, itself available, 
 and the borrowers able to meet their bonds ? 
 
 In stating my opinion, that there are hopes of this result, if the relief 
 asked for is granted, I must task the patience of the committee for a few 
 moments longer, while I give my. reasons for thinking, as I do, that this 
 can and will probably be effected. ' - 
 
 The great effort recently made by the States of South-Carolina, Ten- 
 nessee and North-Carolina, to construct a Bail Bead to the Ohio, from 
 which such mighty results to the trade and business of Charleston were 
 anticipated, has proved a failure. No one doubted, had it succeeded, but 
 it would have given immense increase tO trade, and that it would have 
 brought great accessions of capital^ and men of business, to fill up these 
 buildings with useful tenants, and a prosperous commerce. But we have 
 failed in finishing this work, and been saved thereby the expenditure pf 
 the many millions of money which it would have cost, while by a providence 
 that has ever been watchful over us, the enterprise has been almost effected- 
 for us, and. will undoubtedly be finished before long, by the State and 
 people of Georgia, at a cost of more than f 5,000,000. A great line of Rail 
 Road, beginning at Augusta, where ours ends, and extending to the navi- 
 gable waters of the Tennessee River— penetrating 450 miles from Charles- 
 ton into a most fertile portion of the South-West, and opening at that and 
 intermediate points, channels of commercial connection with- Georgia, 
 Alabama, "Tennessee, North-Carolina, Virginia, and indeed the vally of the 
 Mississippi, is in rapid progress of construction; and when completed to 
 the Hightower River, (the point to which its completion is now" a matter 
 almost of certainty.) the City of Charleston will then be in direct com- 
 munication, by a continuous Rail Road of three hundred and ninty miles, 
 with these extensive regions. This extention of commercial intercourse 
 
548 SPECIAL REPORTS OF 
 
 into the heart of so productive a country, with the measures now in pro- 
 gress to cheapen the expense of transportation, and to increase the facili- 
 ties of business by this road, it is a fair presumption, must produce no 
 inconsiderable addition to the trade of the city, and to the population 
 which carries it on. From this cause, and from the changes which it is by 
 no means improbable may succeed this stagnation, it would appear but 
 reasonable that a reaction will follow, and impart additional value to this 
 property, and consequently increase the ability of its owners to pay what 
 they owe for it beyond what is exhibited in the present condition of things. 
 A healthful and vigorous revival of enterprise and commercial activity, at 
 no very remote period, is entirely within the range of probability, from which 
 we may expect a safer and more sound condition of things than that from 
 which we have fallen. If this change for the better does not come, the 
 worst that will follow the relief asked for, will not make matters worse 
 than they now are, and must be, if it is refused ; while the future, which 
 seems to hold out a fair and reasonable prospect of improvement, may 
 fully realize all it seems to promise ; and if by this course the borrowers 
 of the Fire Loans are enabled to pay them up, or have such a value im- 
 parted to their property, that others will purchase it and pay the debt, it 
 will be a most important point gained, in saving the City of Charleston, 
 our great emporium of commerce, from a liability which will hang heavily 
 on her, and greatly impair the growth of her trade, population, and re- 
 sources — matters which the whole State has a deep stake in fostering in 
 the highest degree. 
 
 One other point remains : In the relief asked for, the petitioners pray 
 that sales, when made, may not be for cash, but for such credit as remains 
 unexpired on the original loan — upon condition that the purchaser shall 
 give the same kind of bond, with good personal security, and a mortgage 
 with same conditions as in the original loan. That such an arrangement 
 would be equitable, and that by adding to the security of the debt, it will 
 add to the resources and ability of the Bank, is very apparent. These 
 loans were begun in 1838, and were finished, the last about the 1st of 
 October, 1841. All the instalments, therefore, are payable before the debt 
 of the State, contracted by borrowing for the Fire Loans, falls due. The 
 securities for the debt are : 1. The bond and mortgage of the borrower ; 
 2. The guarantee of the city ; 3. The insurance of the buildings at the 
 amount of the loan. To these it is proposed to add, in case of sales, a 
 fourth in personal security on the bond of the purchaser, preserving all 
 the others. With these precautions, I think the credit of the State cannot 
 be aflfected injuriously, nor the ability of the Bank impaired to meet and 
 discharge, as they fall due, the interest and principal of the public debt, by 
 the measures of relief suggested by your Committee. 
 Very respectfully, your obt. servt. 
 
 F. H. ELMORE. President. 
 
PRESIDENT OF BANK. 549 
 
 (Dec. 1843.) 
 
 To the Honorable tlie President and Senate of the State of South-Ca/rolina : 
 
 ^'- Resolved^ That the President of -the Bank of the State of South Caro- 
 lina, and the Comptroller General of the State, be directed, severally, to 
 report such facts and reasons as they may deem best calculated to illus- 
 trate the practical effects of any proposed changes or measures in relation 
 to the payment of the public debt, the management of the Bank and Sink- 
 ing Fund, and the fiscal operations of thi Treasury ; as well as their effect 
 on the credit of the State." 
 
 In obedience to the foregoing Resolution, the President of the Bank 
 begs leave to make the following Report : 
 
 The great extent of the inquiries propounded, and the short time al- 
 lowed to prepare replies, will necessarily call for great indulgence for the 
 manner in which the subjects embraced in the inquiries will be treated. 
 
 The only measures or plans before the Senate upon the subjects referred 
 to, are those for the payment of the public debt, and the management of 
 the Sinking Fund, proposed by his Excellency the Governor, in his annual 
 Message to the Legislature, at the commencement of tliis Session. In re- 
 gard to the grounds on which the recommendations of the Executive De- 
 partment are based, it will perhaps be advisable first to ascertain if there 
 are any points for difference of opinion, in regard either to the bearing 
 of the facts adverted to on the case, or as to the construction of the laws 
 in regard to them. 
 
 The Message I understand to state, that although $1,000,000 of our In- 
 ternal Improvement debt has been paid by the Bank, it "has been made 
 the pretext for issuing stock to the amount of $1,706,107 94, thus actually 
 increasing the public debt $700,000, instead of diminishing it." The 
 proofs adduced, are, 
 
 1st. That $964,444 44 of Fire Loan ^onds were used as " a Loan to it- 
 self," and sold for that purpose by the Bank. 
 
 2nd. That $600,000 of 6 per cents, were issued in 1839 as an advance 
 to the Rail Road subscription, and increased the State debt. 
 
 3rd. The issue of 200,000 of 5 per cent. Bonds to S. W. R. R. Bank, 
 subscribed for its capital by the State. 
 
 1st. In regard to the first, it will appear by the Fire Loan Act of June, 
 1838, that the G-overnor was "authorized and directed to issue $2,000,000 
 of Bonds or contracts" for this Loan, and in the 3rd clause that " the mo- 
 ney, when realized in Charleston, shall be deposited in the Bank of the 
 State of South Carolina, and shall become part of tJie capital tJiereof^ It 
 will also be remembered that the first plan thought of, was a Loan to be 
 managed by commissioners without the agency of the Bank, and that it 
 was changed to the plan finally adopted, in order to increase the capital of 
 the Bank. The whole operation was consequently made a Bank operation, 
 for the raising of the Loan, and the managing of the Fund. 
 
 The direction of the Legislature to issue the Bonds, and create the debt 
 and make it capital, was absolute ; and it was created by the Legislature as 
 the Message states, " almost by universal consent" of the State ; the only 
 discretion given by the Act to the President and Directors of the Bank 
 was to procure the Loan " upon the best terms either in Europe or Ameri- 
 ca." No authority to supervise the action of the Legislature, or to annul, 
 
550 SPECIAL REFOllTS OF 
 
 or control it, is to be found in the Act. The Bank was the passive agent 
 of its execution, and used no other pretext for carrying it out, than the 
 plain order contained on the face of the Act. To have exercis^ed the right 
 and power to cancel these Bonds, would have been to assume not executive 
 
 but legislative functions, and to have put the Bank over the Legislature. 
 
 The circumstances under which the issue of the Bonds was made in Charl.es- 
 ton, are these : Messrs. Baring, Brothers & Co. agreed to take the whole 
 Loan from General McDuffie, (except about £15,500 sold before to another 
 house,) upon condition that for all beyond $1,000,000, they should have 
 the right to decline to a given day. Before that day arrived the value of 
 American Stocks had fallen, and Messrs. Baring, Brothers & Co. declined 
 taking the balance of the Loan. My predecessor, as soon as informed of 
 this, apprised Gov. Noble of it, and suggested that, as the Bonds were un- 
 saleable except at a loss in Europe, they should be ordered home, and a 
 domestic Loan substituted for a foreign debt by the issue of a 6 per cent. 
 Stock; which, counting the risk of remittance, commissions, time and ex- 
 changes, would upon the whole be nearly if not quite as advantageous as a 
 5 per cent Loan in England. The Governor promptly concurred, and the 
 Bonds were ordered home in 1 8S9, and before the close of the fiscal year, 
 contracts for the exchange of $286,000 of them for the stock of 1820, pay- 
 able on the 1st January, 1840, were made, and for sales of $14,000 nioVe, 
 making $300,000 dollars in all, which was duly reported to the Legislature 
 in December, 1839, by President iiose. In 1840 the same facts were again 
 reported by the present incumbent ; and in neither instance was any indi- 
 cation made by that body, that any other construction was put upon the 
 Act of 1838, than that put on it and acted upon by the Bank. This was 
 the whole amount of the Fire Loan used in paying the $800,000 in Janu- 
 ary, 1840. It is also material to the proper understanding of this matter, 
 to bear in mind, that thq time for applications for the benefit of the Fire 
 Loan, was by the Act of 1838 extended to two years, and by the subsequent 
 Act of 1839, still further extended toJupe, 18'41; and that the extent of 
 the applications to borrow under its- provisions, could by no possibility be 
 "ascertained until after that time. 
 
 2d. In regard to the second, or the $600,000 issued as an advance on 
 the subscription of the State to the Bail Road, it appears that the State, 
 by a resolution of the 20th December, 1836, (see Res. 1836, p. 129) au- 
 thorized the Comptroller General to subscribe 1 0,000' shares, or $1,000,000, 
 to the R. Road, to be paid out of the surplus revenue, in instalments as 
 other stockholders paid. The appropriation Act of same year, (S. L. vol. 
 6, p. 566.) authorized the Comptroller General to call on the Bank for 
 these instalments from the surplus Revenue, as they were called for by the 
 Company. By tlds sicfjscription the State became indebted to the Rail 
 Road Company. $1,000,000, which under the Charter could be called for 
 by the Company in instalments of five dollars per share, or fifty thousand 
 dollars ($50,000) every sixty days. At the same Session, (December, 1836,) 
 an Act was passed, (S. L. Vol. 6, p. 555,) " to provide for the reception 
 and disposition of the Surplus Revenue," &c. The 3rd section directed, 
 that it should be received and " deposited in the Bank of the State, not as 
 capital, but shall be banked upon and employed like the capital of the 
 said Bank, until it may be withdrawn," &c. In December, 1837, (S. L. 
 Vol. 6, p. 572,) the State agreed to endorse or guaranty $2,000,000 of their 
 Bonds to enable the L. C. & Charleston Rail Road Company to pay the 
 
TRESIDENT OF Bx\NK. 551 
 
 cash part of the purchase of the Hamburg Rail Road, and took a mortgage 
 " of the whole estate, property and funds, which said Company may then 
 possess or afterwards acquire ;" which included the Hamburg Road. The 
 Act contained an assent of the State to a mortgage of the Road to the 
 stockholders, from whom it was purchased, for the two credit payments, one 
 payable on 1st January, 1839, and the other on 1st January, 1840. In 
 December, 1839, the L. C. *fe C. R. R. Company, by memorial, informed 
 the Legislature that they had paid up all due on that purchase in January, 
 1839, and a part of thai due on 1st January, 1840, leaving however to be 
 met on that day $862,000, and, that if it was not paid, one half of the 
 shares of the Hamburg Road would be sold by tjie creditors under their 
 mortgages. " • 
 
 They prayed the. Legislature to anticipate twelve of the instalments of 
 the State, or $600,000, by issuing a 6 per cent, stock, promising with it to 
 pay oiF the encumbrance on the Hamburg Road, and to finish the road to 
 Columbia. Only twenty days intervened: it was too late to call in instal- 
 ments in time to save the Road. 
 
 The instalments of the State were not payable faster tlian those of indi- 
 viduals, and therefore the 12 asked for, ran over two years, viz : 1840 and 
 1841. To have precipitated at once on the Bank on the 1st January, 1840, 
 when it had $800,000 of 6 per cents, to pay off, a further sum of $600,000, 
 without warning or preparation, when that institution, aided only by the 
 Rank of Charleston, was sustaining specie payments, would have inevitably 
 compelled it to suspend also. The Legislature referred the memorial to a 
 Jt)int Committee, composed of Messrs. Huger, Gregg, B^atty, Evans, and 
 McWillie, of the Senate, and Messrs. Colcock, Frost, Middleton, Dawkins, 
 Perry, F. H. Windlaw, Irby and DeSaussure, of the House of Represent- 
 atives, (Jour. Legis. pp. 99 and 103-4.) This Joint Committee unani- 
 mously adopted a Report recommending the issue of the $600,000 of 
 Stock, distributing its payments most judiciously to the capacity of the 
 Bank to meet them, viz : $200,000 in 184S, $200,000 in 1850, and $200,- 
 000 in 1852. 
 
 The Committee say, "The Company, with the aid thus extended, it is 
 believed, will be able to pay off the mortgages due in January, and then io 
 apply its whole resources to the finishing the Road to Columbia. In its 
 present state, to abandon it would be a loss of $1,000,000 ; to complete it 
 will add $1,600,0.00 to the security of the State, for its indorsements of 
 the Company's Bonds. Thus this advance will enable the Company to free 
 half of the Hamburg Road from mortgages, having a priority to the State 
 lien, giving by it $1,600,000 to the State's security, and at the same time 
 to complete the<Columbia Branch, adding it, at its cost of $1,600,000, also 
 to that security ; in other words, the advance of $600,000 of stock by the 
 State, will enable the Company to add these two Roads unencumbered to 
 the security of the State. This additional security cannot be estimated at 
 less than $2,500,000, and is estimated by some at $3,000,000." 
 
 3d. In regard to the third instance adduced in proof of the view of the 
 Governor, viz : the issue of $200,000 of 5 per cent, stock, to pay the State's 
 subscription to the South Western Rail Road Bank, the Message states 
 that "at the regular Session in December, 1838, the Legislature passed an 
 Act confirming the subscription of the Governor to the Rail Road Bank, 
 and authorizing the Comptroller General to pay it by drafts upon the Bank 
 of the State, or by an issue of 5 per cents, in case the President and Di- 
 
552 SPECIAL REPORTS OF 
 
 rectors of the Bank found it embarrassing to advance the funds." The 
 words of the Act go farther, adding " or without violating tJie faith of the 
 State, pledged in an Act to provide a Sinking Fund for the redemption of 
 the 6 per cent, stock of this State, passed in the year of our Lord ] 82 1 : 
 and pledged in subsequent Acts for the redemption of all the Stock subse- 
 quently issued ; then and in that case the Comptroller General is required 
 to issue Stock therefor, on the part and in behalf of the State, bearing a 
 half yearly interest at the rate of 5 per cent, per annum, and redeemable 
 at the end of twenty years." 
 
 It so happened that the Surplus Revenue was subscribed to the Rail 
 Road, and could not be taken ; and that the Bank eould not pay this $200,- 
 000 without taking it out of the Sinking Fund or Capital, both of which 
 were repeatedly pledged for the debts of the State. The Sinking Fund, 
 on 1st October, 1838, was $824,833 38, out of which $86,774 99 was re- 
 quired to pay interest, leaving $738,058 39, while on the 1st January, 1840, 
 it had to pay $800,000 of 6 per cents, of 1820, for which it had been 
 pledged by the Act of 1821. It is thus clear, that to have paid the $200,- 
 000 out of the Surplus Revenue, would have been to take it from the 
 Road, for which it was appropriated ; and to pay it out of the Sinking Fund 
 or Capital of the Bank, would have violated the faith of the State. 
 
 It would appear that the Bank has had no agency in producing this 
 state of things ; that no " pretext" has been used by it for these issues, but 
 that it has been the action of the Legislature in every one of the cases 
 stated, and has been upon considerations arising within its own sphere of 
 deliberation, and which were good and sound in themselves ; that the Pub- 
 lic Debt was not increased in the Fire Loan by any other authority than 
 the express and explicit order of the Legislature ; that the $600,000 of 
 Rail Road advance, paid, to that extent, a debt already existing in the form 
 of a subscription to the Road, and put it in the form of a Stock, without 
 increasing the State's debt one cent, and in truth making by the operation 
 not only a pecuniary profit from the Rail Road of some 70 to $80,000 in 
 interest, but freeing from prior liens the most valuable security the State 
 held for its guaranty of that Company's Bonds, and enabling it to complete 
 the Columbia Road, and add $3,000,000 of unincumbered security to the 
 State for her guarantee. And that besides, for it, the State now holds 
 8,000 shares in the Road, and a debt against the Company of $258,000, 
 with interest, in consequence of her shares being reduced : That the issue 
 of the $200,000 of Stocks for the Rail Road Bank subscription could not 
 have been avoided, without sacrificing the faith and honor of the State ; 
 and was, under the terms prescribed by the Legislature, unavoidable : — 
 And that in point of time, most of these transactions were separated and 
 spread over a period from Dec. 1838, to the year 1843. 
 
 The Resolution requires me to report, first, " such facts and reasons as I 
 may deem best calculated to illustrate the practical eff"ects of any propose<i 
 changes or measures in relation to the payment of the public debt, the 
 management of the Bank and Sinking Fund, and the fiscal operations of 
 the Treasury, as well as their efiect on the credit of the State." 
 
 To answer this Resolution properly, requires me first to state what is the 
 true condition of the Sinking Fund, and then to state what are the changes 
 proposed, and lastly, the efiect of these changes on the fiscal action of the 
 Treasury. 
 
 The Sinking Fund was created by the Act of December, 1821. It 
 
PRESIDENT OF BANK. 553 
 
 ordered, " that the annual profits of the Bank should, with all its accumula- 
 tions, be a Fund solemnly pledged and set apart for the payment of the 
 quarterly, interest of the 6 per cent. Stock, ($800,000 issued the year be- 
 fore) and the final redemption thereof." In December, 1822, $200,000 of 
 5 per cents were issued, and the like pledge of the capital and dividends 
 of the Bank made. *These issues, have been paid. In 1824, $250,000 
 m.ore 5 per cents were issued, and for them the faith of the State and the 
 capital and dividends of the Bank again solemnly pledged in like manner. 
 This is due 1st January, 1845. In December, 182G, $300,000 more 5 per 
 cents, were issued without any pledge: due in January, 1846. The next 
 pledge of this Fund was for the Fire Loan of June, 1838, when, in addi- 
 tion to the pledge of 'the faith and funds of the State generally, the profits 
 of this Bank on the Capital it then had, after they shall have paid and re- 
 deemed the Stocks for which they had been before pledged, Were also sol- 
 emnly pledged to pay interest and .principal of this Loan. There is also 
 another pledge of the Fund or " additional Capital created out of the 
 $2,000,000 Loan aforesaid," and all its profits, without condition, for the 
 payment of the interest and redemption of the principal of this Loan. — 
 The last payment of this Loan is due in 1870. In December, 1839, the 
 State issued $600,000 of 6 per cents, and passed to the Sinking Fund 
 $651,422 09, from the Surplus Revenue, to meet it. This was the advance 
 to the Rail Road subscription. The like pledges of the capital, profits, 
 and the surplus revenue thus transferred, were repeated in that Act. The 
 last'$200,000 of this i^sue.is payable Janilary, 1852, eight years from Jan- 
 uary next. 
 
 The recommendations of the Message are : 
 
 1st. That the Bank be compelled to purchase and cancel $500,000 -of 
 the State Stocks per annum, and pay all interest on th§ State Debts, under 
 penalty of forfeiting its Charter. 
 
 If the purchase was practicable, it is very clear that the faith of the State 
 would be violated, if any Stocks were bought and cancelled except those 
 due the 1st January, 1845, until all of them were first paid, and so again 
 of the next in order, viz: those of the Rail Road advance due in 1848, 
 1850 and 1852. To take either the profits or capital of the Bank, to buy 
 and cancel the Bonds of the Fire Loan out of their pledged order, would 
 be to take the funds solemnly promised and appropriated to the debts of 
 prior date. But, it is believed that the scheme is impracticable, except at 
 fiuch a premium as would exhaust and ruin the Bank The price of the 
 Stocks would rise to a point of exorbitant exaction, and if not submitted 
 to, and the public interest sacrificed by their purchase at any price, the 
 charter of the Bank would be forfeited. The measure would be in efiect 
 to break up the credit of the Bank ; to compel it to cease all business ; to 
 bring down on it all its circulation, and all its depositors, and to force it 
 into liquidation. 
 
 2nd. The second proposition is, if our own Stocks cannot be bought, to 
 buy up the Stocks of other States. The reason given, is, to throw on them 
 the burthen of our debt ; but, if they should refuse or fail to pay either 
 interest or principal, it is clear that we shall have the burthen of paying 
 both theirs and our own. It w^ould seem to be a very doubtful policy 
 which would distress our own people by drawing heavy sums from them to 
 invest in the bonds of other States, which cannot be sued, when paper 
 equally good can be got from our own citizens, who, if thev fail to pay, are 
 
 70 
 
554 SPECIAL REPORTS OF 
 
 amenable to our Courts, and can be compelled to discharge their obligations. 
 If the bonds of other States were as good as ours, they would cost as much, 
 and if worse^ it is bad policy to buy them. 
 
 3rd. The third proposition is to make an entirely new Sinking Fund of 
 the present Sinking Fund and Surplus Revenue, for the payment of the 
 debt due after 7 years, viz: 8200,000 due In 1852, «nd the Fire Loan, the 
 last of which is due in 1870. The proposition is, to withdraw the present 
 Sinking Fund, $741,120 64, and the Surplus Revenue, $200,000 ; "that 
 the whole amount be placed in the hands of Commissioners, to be invested, 
 and made to accumulate by compound interest, for the discharge of the 
 principal of the Public Debt, not including any instalments due within the 
 next 7 years, unless rendered absolutely necessary from want of other 
 means ; and that in the mean time the Bank shall be required to pay the 
 interest on the whole debt, and such itistalments of the principal as shall 
 fall due in 7 years." The instalments that will fall due in 7 years are 
 $960,000. The interest on the whole debt, which the Governor states at 
 $190,000 per annum in the message, would for the same time reach $1,33.0,- 
 000 more, making $2,290,000 to be paid in seven years. 
 
 The first effect of taking away the surplus revenue and sinking fund, 
 amounting together, as shown above, to $941,120 64, would be to absorb 
 all the means of the Bank for active business, and to drive away its cus- 
 tomers. The depositors would draw out their deposites, amounting to 
 about $500,000, and the circulation, now, (allowing for lost bills.) about 
 $650,000, would be returned for redemption. These several sums would 
 create an immediate demand on the Bank, for, in round numbers, $2,100,- 
 000. And yet, after the utter wreck of its credit, and business, and the 
 sudden and ruinous abstraction of its active means, to the enormous ex- 
 tent of $2,100,000, this proposition would impose on it the impossible task 
 of paying in 7 years the further sum of $2,290,000, for interest and for 
 the principal of the public debt which falls due in that time. 
 
 The fate of the Bank would be sealed the moment such a measure is 
 adopted, and it must go into liquidation, for it could only drag on an impo- 
 tent existence for a little while, to die a disgraceful death at last. It 
 would be far better to put it in liquidation at once, and wind it up, for the 
 necessary result would be to throw into suit for collection, a vast amount 
 of assets on its bond and discount line in every part of the State. So 
 large a creditor going at once into the Courts, would alarm all the other 
 Banks and individual creditors, compel them in a measure to suspend the 
 usual accommodations, draw in their circulation, contract their business, 
 and also to sue in every case where they are distrustful of their debts. — 
 Their customers, thus chocked and pressed, would in turn sue those indebt- 
 ed to them, and an universal state of alarm and distress would pervade 
 the country. The dockets of the Courts would be crowded with cases, and 
 the Sheriffs would transfer vast amounts of property at incalculable sacri- 
 fices ; the value of all other property would be greatly depreciated, and 
 slaves would be run off, or many of them bought up by the people of other 
 States, and would be transferred to them to improve their condition, leaving 
 heavier taxation to this State, and less property to bear it. Lands aban- 
 doned, and houses deserted by a ruined and bankrupted people, would 
 every where remain the monuments of an erroneous and precipitate legis- 
 lation, "while nobody would be benefitted by the operation, but those who 
 are out of debt and in the command of money, and who can stand by in 
 
PRESIDENT OF BANK, 555 
 
 the general wreck, and buy up the property thus needlessly forced into 
 market." 
 
 The new sinking fand. which- would be. created at this heavy cost, would 
 be placed in the hands of Commissioners^ to be invested. How invested, 
 we are not informed ; but it could only be invested in private' loans, as it 
 now is by the Bank, or in stocks of States or Banks. How much we should 
 gam by the exchange, is hirdiy matter of doubt. In the first place, there 
 would be the expense of salaries to Commissioners and their Clerks for 
 managing a fund, now managed by the Bank for nothing ; in the next, all 
 the losses of bad debts and mismanagement would fiill upon the Fund, and 
 they must be many and heavy in 23 yearsj while in the Bank, in conse- 
 quence of its being used in banking operations^ the Bank bears all losses 
 and all expense. It is hardly to be presumed that the Commissioners will 
 be possessed of greater ability or -better fortune than the Directors of the 
 Bank. The paper medium loan experiment is full of instruction on this 
 point. But there is one view that would seem to be conclusive. A Sink- 
 ing Fund vested in Bonds or Stocks, all experience proves, cannot be al- 
 ways relied on to the day it is needed to pay the debt, and if, to insure 
 punctuality, it be collected, as it must be, beforehand, it must lie idle and 
 be subject to be wasted and destroyed. In the Bank, it is used as its other 
 funds, and is not distinguishable from them : it is a surti due and to be paid 
 by the Bank, and when pay day arrives, all the assets and resources of the 
 Bank will be resorted to, to have it ready. This insures its punctual pay- 
 ment, and the^ public creditor is better satisfied, the public interests better 
 subserved, and the public credit better maintained. < 
 
 PAYMENT OF THE PUBLIC DEBT BY THE BANK. 
 
 The inquiry here may be made, will thd'Bankbe able to pay the Public 
 Debt as it falls due ? I answer, .that if no more is required of the Bank 
 than the laws now of force require, and the 'Bank is permitted to carry on 
 its operations with the ordinary facilities of banking, in the same manner 
 for instance, that private Banks are permitted to exercise their best judg- 
 ment, I have no doubt that it will pay not only all that is by law charged 
 on it, but perhaps even the $300,000 of five per cents, falling due on 1st 
 January, 1846, and for the payment of which", no provision has been made 
 by the Legislature ; and if the Legislature will authorize the application 
 of the $200,000 of Surplus Revenue in the Bank, and which is now dis- 
 engaged from the Rail Road subscription by the reduction of the shares of 
 the State, then, I can have no doubt of the ability of the Bank to pay from 
 the Sinking Fund and its profits as follows : 
 
 5 per cents, due 1st January, 1845 $250,000 
 
 5 " " " 1846 300,000 
 
 6 " " " 1848 200,000 
 
 6 " " " 1850 200,000 
 
 6 " " " 1852- . 200,000 
 
 In 8 years - -. 1$1, 150,000 
 
 The only debt then due will be the Fire Loan ; for that, we have now 
 something more than $LOOO,000 of Bonds secured by the City of Charles- 
 ton, which, with the profits of the Bank from 1852, and all the rest of the 
 capital, will be applicable to that debt. A statement from th« Cashier, 
 
556 SPECIAL REPORTS OF 
 
 accompanying this report, marked No. 1, will exhibit the probable opera- 
 tion of the Bank on the public debt. On the other hand, should the 
 stringency of measures be such as to precipitate the action of the Bank 
 beyond the rules now laid down to it by the various Acts of the Legisla- 
 ture, and to which the public faith .stands repeatedly pledged, there is too 
 much reason to apprehend that the result will be, to destroy the ability of 
 the Bank to pay the public debt, and to render a resort to heavy -taxation 
 on the people necessary. An experiment more full of hazards, and preg- 
 nant with more important consequences to. the whole people of South 
 Carolina, never was presented for their consideration.* 
 
 The next point of the inquir}^ proposed by the Resolution is. 
 The practical effect^ on the Jiscal operations of the Treasury. 
 
 In considering 'the practical eflects of the proposed changes and mea- 
 sures in relation to the payment of the public debt and the management 
 of the Bank and Sinking Fund on the fiscal operations of the Treasury," it 
 will be necessary to examine — first, what would be their practical effects 
 on the Bank itself, and then, by that mi ans, their practical effects on the 
 fiscal operations of the Treasury. I have before stated my opinion, that 
 the practical effect of the recommendations, if carried into operation, 
 would be to force the Bank to go into liquidation, and be wound up. The 
 adoption of any one of these plans, or of any otl^er measure producing a 
 like effect on the Bank, would destroy it effectually ; its name may continue 
 to exist, but its vitality, its usefulness, will have been extinguished forever. 
 The question then recurs — what will be the effects on the fisca"l operations 
 of the Treasury, when the Bank ' is wound up, or in effect abolished by 
 these measures? We must consider this inquiry: 
 
 1st. In connexion with the receipt, safe keeping, and disbursing the 
 Treasury funds. In this view,, the utility of the Bank is of the highest 
 value. The public moneys are, by the collecting officers, paid into it and 
 placed to the credit of the Treasury. The Treasurer checks for it, and, 
 in Charleston, his check i^ countersigned by the Comptroller General ; this 
 secures against frauds and imfaithfulness. Since its incorporation, there 
 has been collected and^ paid into the Bank to the credit of the Treasury, 
 about $12,747,207 11, and there has been paid out on that account, about 
 $11,778,057 02, making an aggregate of $24,525,764 13 of receipts and 
 payments^ without costing the State anything or the loss of a cent. For 
 its safety, she had all the securities ghe had before, besides the checks of 
 daily supervision and settlement, which the organization of the Bank 
 affords. Funds are also transferred from 'one Treasury to the other, with- 
 out risk or cost to the State, and payments are made at the Treasuries 
 more easily, rapidly, safely, and satisfactorily than they could be by paying 
 the money itself The measures recommended, by virtually and practi- 
 cally destroying the Bank, would destroy all t ese advantages to the 
 Treasury. - 
 
 2nd. In connection with taxation for the ordinary expenses of the State. 
 
 The taxes, it is well known, do not reach thp treasury until June, and 
 although on the 1st of October, the beginning of the fiscal year, there 
 always appears to be a balance in the Bank to the credit of the State, yet 
 
 * I do not here take into account either the 3 per cents which the Bank must pay off 
 from its capital, nor the 5 per cents for the subscription of the. capital of the S. W. R. R. 
 Bank, as the latter will be easily paid by the dividends of the Road and the Bank in three 
 or four years at most. 
 
♦ PRESIDENT OF BANK. 557 
 
 it often happens, and for several years past has invariably occurred, that 
 before the end of December, the balance in the Treasury has been expend- 
 ed, and that had it not been that the Bank advanced the funds necessary, 
 the Treasury would not have had means to pay the expenses of the State. 
 The consequence would have been, that the taxes would have been collected 
 in November, or increased enough to cover the deficit. The injury caused 
 to its operations by these advances has been borne cheerfully by the Bank, 
 because it was highly convenient to the people and saved them from taxa- 
 tion, although it has sensibly affected its business and lessened its profits. 
 The practical effects of the measures recommended, in this particular, 
 would be to compel the Legislature to collect the taxes in November, some 
 months earlier, or to increase them enough to cover the deficit from Decem- 
 ber to June, or to borrow from other Banks. 
 
 3d. In connexion with extraordinary emergencies, such as war, invasion, 
 or insurrection. 
 
 In extraordinary emergencies, when there would not be time to provide 
 for the occasion, as in cases of invasion or insurrection, or when the bur- 
 thens would be. too heavy to be borne at one time by the people, but are 
 indispensable to the defence and safety of the country, as it may often 
 occur in times of war, the resource for immediate advances to meet the 
 occasion, which this Bank may afford the State, in her Treasury operations, 
 can hardly be estimated too highly. The reports of two Committees ap- . 
 pointed to investigate the Bank in 1821, (Comp. pp 96, and 1 24-) both 
 insist upon its great value in this point of view. But the subject is put in 
 so clear a light in his annual -report of 1821, (see Bank Comp. 396) b.y 
 that wise and venerable man, who acted so conspicuous a part in establish- 
 ing this institution, and who presided for so long a period with such distin- 
 guished ability and usefulness over its administration, that nothing can be 
 added to what he has so well said in th^ following extract: — "And it 
 should also be remembered, that in their present position, the funds of the 
 State can be readily commanded, and exclusively directed to national pur- 
 poses. In times of peace, this may be of little importance ; but during 
 moments of embarrassment and danger, the value of such a resource, par- 
 ticularly in a country where monied capitals are not abundant, it is not 
 easy to estimate. During the late war, this Bank, at the very commence- 
 ment of its operations, advanced, for three years, the direct tax imposed on 
 this State by the G-eneral Government, and saved to the citizens generally 
 the premium of 15 per cent, allowed to those States which should pay 
 promptly into the general treasury, the amount of the tax.* And when 
 it was proposed to raise a brigade of State troops, the Bank offered to 
 advance 500,000 a year, for three years, for their support. 
 
 " Peace rendered this measure unnecessary ; but it would be easy now to 
 prove, that this offer was not an idle pledge, but that under the circumstan- 
 ces of the case, the measure, had it been carried into effect, might have 
 been rendered as profitable to the Bank, as it would have been beneficial to 
 the State, and to the United States. During war, not only all the money 
 which such a Bank might be able to collect, but all which it might be pru- 
 dent or possible to issue, could be directed to public purposes. From a 
 private Bank this could not be expected ; it certainly never would be 
 
 * The. amount saved by the Bank to the State Treasury by these advances was 
 S01,U3,28. 
 
558 SPECIAL REPORTS OF 
 
 obtained. The claims and the wants of the stockholders would necessa- 
 rily require attention. Their private engagements would demand their 
 first consideration, and to those who can command money, the chances, 
 during war, of profitable speculation become so alluring, that all wbo have 
 influence or interest, press on the private institutions with irresistible 
 weight. ' . 
 
 " It has become so much the practice in modern ages, for governments to 
 be borrowers, on every emergency, that no one appears now to enquire 
 whether the accumulation of funds, against periods of adversity merits 
 national consideration. This, it is true, is but an idle question to those 
 Governments which are already so much involved that, in order to pay the 
 interest of their debts, they are obliged to resort to every ex6rtion, and to 
 every mode cf taxation; but to those which are more fortunately situated, 
 this system offers some advantages, and may claim from them some attention. 
 The possession of funds at moments which usually create embarrassments, 
 might prevent the necessity of submitting to disadvantageous loans ; 
 n ight avert the failure of many an enterprize that proves unsuccessful, 
 from the employment of insufiicient means ; and might relieve a Govern- 
 ment from the severe, and often unpopular, duty of imposing heavy taxes, 
 at periods when the most light are not easily collected. In times of peace, 
 the revenue obtained from this source might be employed in a thousand 
 modes, to improve, to embellish, and to render more productive the 
 resources of the country." 
 
 Of pr<^U of the Bank and Public Debt. 
 
 To enable the Senate to form some idea of the correctness or error of 
 the foregoing opinions, as to the jibility of the Bank to pay the public 
 debt, a review of its operations in regard to its profits may be useful. If 
 I fall into any errors in stating these views, the compilation of the laws 
 and official documents relating to the Bank, just published by order of the 
 Legislature, afford ample materials to rectify them. 
 
 To arrive at an exact idea of what profits the Bank of the State has 
 made in its operations, we must first settle the definite meaning to be 
 attached to the word profits, and then, again, the principles on which they 
 shall be computed. 
 
 Strictly speaking, we understand by the word profits, the clear gains 
 made by the Bank, and paid by it as dividends or profits, -either into the 
 Treasury or to the public creditors, or carried to the sinking fund ; such 
 would be the correct rule here, if it were a private Bank ; a machine to 
 make the greatest amount of dividends on the capital employed, for the 
 stockholders, without regard to the general interest of the State. 
 
 But this narrow view has never found favor with the statesmen of South 
 Carolina. And she, contemplating the question from her high position of 
 a Sovereign, who was proprietor, both of her people and their property, 
 has felt that she best subserved her own interests by promoting theirs ; 
 that whatever bettered their condition, improved her's also; and that when 
 she enabled them to increase their wealth, she was hoarding up riches in 
 her own best treasury, on which, if great emergencies should come upon 
 her affairs, she could make her drafts with the confidence that they would 
 be cheerfully paid by a loyal people devoted to her service. She could not 
 but know that, under the principles she prescribed in the charter for the 
 management of its affairs, if the Bank yielded that protection and gener- 
 
PRESIDENT OF BANK. 559 
 
 ous nourishment to the enterprize, industry, and peculiar pursuits of her 
 citizens, which she designed, she must be content with more moderate divi- 
 dends on her capital, and look, for a large share of her real profits, to the 
 convenience and advantages it would afford in the State affairs, and to the 
 improvements which would follow to her agriculture, commerce and manu- 
 factures. 
 
 The Bank has no reason to shrink from the inquiry in either point of 
 view; and that the House may judge of it in either or all of these con- 
 nexions, they will be examined, each in its order. 
 
 There are, however, some circumstances worthy of being carried along 
 in the mind, which have exercised no little influence on profits, and for 
 which due allowance should be made. Tn the first place, the expense of the 
 management of this Bank is necessarily greater, in proportion to its 
 capital and business, than that of any private Bank ; it being required, by 
 law, to maintain two expensive branches, which the Legislature have 
 established for the convenience and accommodation of the public : the one 
 at Columbia being essentially so to the Treasury operations of the State. 
 Again, the funds in the Treasury are usually exhausted in December, and 
 during the period of the most active and profitable ' business of the year, 
 the Bank advances, without interest, large sums of its own money, curtail- 
 ing its own operations and lessening its profits. These advances have some- 
 times been very considerable. They reached in May, 1821, to $547,795- 
 34, and in 1840, when the heaviest burthens the Bank has ever felt were 
 accumulated and concentrated upon it, this was one of the most embarrass- 
 ing sources, not merely of difficulty, but of danger and actual loss ; for a 
 more full detail of which I refer to the Annual Report of that year. 
 
 Another fact is also of material bearing on this point. The Bonds for 
 debts of the Fire Loan, amount to upwards of $1,000,000. This portion 
 of our capital yields us no profit, but is a source of some expense ; because 
 by the 7th clause of the 4th section of the Act of June, 1838, the Bank is 
 directed to fix the rate of interest to- the borrowers " at as low a rate as will 
 cover the interest to be paid by the State, with the necessary charge of re- 
 mittance." This large fund, therefore, is administered by our officers with- 
 out charge, and constitutes no part of a profit making capital ; and if it 
 were not for that branch of the business thus assigned to the Bank by the 
 law of 1838, we could dispense with one Clerk, whom its management 
 makes it necessary to retain at a salary paid from the general profits. 
 
 It may not be altogether impertinent to the subject of inquiry, to ask 
 the question here : How could the State manage this large fund, with equal 
 economy and safety ? Suppose this Bank were abolished, how would these 
 bonds be disposed of ? In what way can the interest be collected so safely 
 and so regularly, or how can the funds, when collected, be ap.plied with equal 
 precision and advantage, to the object they are finally to accomplish ? 
 
 With these remarks, I submit the results of three modes of computing 
 and testing the actual dividends or profits made by the Bank. 
 
 1st. The profits on the original capital. 
 
 The capital varied between 1813 and 1827, first, by continual accessions 
 from collection of funds assigned as capital, and afterwards, by payments 
 from capital to the Revolutionary Debt charged on it in the charter. These 
 ceased in 1827 or '28, and from that time the original capital has remained 
 unvaried at $1,156,318 48. 
 
 And again, when the profits are to be computed, there is to ho settled 
 
560 SPECIAL llEPORTS OF 
 
 with candor and liberality, on what capital or funds the computation is to 
 be made. Is it to be made only on what is the real and actual capital of 
 the Bank ? or is it to be made on that capital, and on its own profits accu- 
 mulated as a Sinking Fund ? Or, shall it be computed on both of these, 
 and to them be added whatever other funds the State may have actually on 
 deposit in the Bank ? 
 
 In the following estimate, the interest is charged on the capital as it was 
 received, at the rate of 7 per cent' The account between profits and inter- 
 est will then stand thus : 
 
 Whole profits of the Bank to 1st October, 1843... $3,672,291 43 
 
 Deduct interest on original capital at 7 per Cent 2^208,993 48 
 
 Excess of profits over interest $1,463,297 95 
 
 This excess is considerably more than the whole original capital of the 
 Bank. 
 
 2nd. On the original capital, and its profits, the Sinking Fund. 
 
 The Sinking Fund was, until 1840, composed entirely of the profits of 
 the Bank, and the interest set down in the following computation is, there- 
 fore, a profit on a profit. That account stands thus : 
 
 Whole profits of Bank to 1st October, 1843 ..$3,672,^91 43 
 
 Interest on original capital $2,208,993 48 
 
 Interest on Sinking Fund, or profit on profit 569,124 41 
 
 2,778,117 89 
 
 th 
 
 Showing an excess of profits over interest at 7 per cent, of $894, 1 73 54 
 
 Or nearly the amount of the original capital' 
 
 3rd. On the original capital. Sinking Fund, Surplus Revenue and Fire 
 Loan. 
 
 In this computation, we charge ourselves with interest on the Fire Loan 
 at 6 per cent, because, that is the interest actually paid for it out of the 
 profits of the Bank. The account then stands thus : 
 
 Whole profits of Bank to 1st October, 1843 $3,672,291 43 
 
 Interest on original capital _ - .$2,208,993 48 
 
 " on Sinking Fund 569,124 41 
 
 " on Surplus Revenue 356,221 10 
 
 " on Fire Loan 421,250 86 
 
 3,555,589 85 
 
 Balance of profits over interest $116 , 701 58 
 
 On this last statement it may also be claimed as one of the savings of 
 the Bank, that the interest allowed above on the Surplus Revenue is a clear 
 gain : this is a fund which does not belong to the State ; it never could have 
 been made profitable to the State unless invested, when it would have ran 
 all the risks, and would have been subject to all the charges and expenses 
 of such a proceeding. 
 
 It is also to be remarked, that interest has been allowed at the rate of 7 
 per cent on all the capital or funds used in banking by the Bank, except 
 the Fire Loan ; a mode of stating the account, which is hard upon the,^ 
 Bank, for the funds, as a Government operation, could not have been 
 
 -f 
 
PRESIDENT OF BANK. 561 
 
 vested by the State in securities, beyond the risks and contingencies inci- 
 dent to individual loans or bank stocks, which would have yielded her 6 
 per cent, or perhaps even 5 per cent, free of the cost of agency and manage- 
 ment ; while in this Bank, it has paid all its losses, and yielded a profit , 
 beyond 7 per cent, in all the views which in fairness to it, could be pre- 
 sented. 
 
 , It is also to be remarked, that for several years past, Bank dividends 
 have been grealy reduced. Heavy losses have been incurred by all, and 
 profits have been considerably lessened. No Bank in Charleston has 
 divided for some years mOre than 6, and several only 5 per cent, and one 
 at no higher rate than $4 44, for the last year. 
 
 I am aware that it may be objected that in the above computations, it 
 is assumed that the whole capital is safe, while bad debts may exist and 
 losses be realized on them hereafter. For these, as they occur, deductions 
 are made by taking from the profits to cover them ; but, totally independ- 
 ent of that, it is confidently believed that, besides arrears of interest which 
 will be collected, the notes of the Bank lost in circulation will more than 
 replace every loss by bad debts, which the Bank will realize in years to 
 come; A few facts will shew the grounds of this opinion. 
 
 From October, 1839, to July, 1840, all the Bity Banks were suspended, 
 except this Bank and the Bank of Charleston. Specie was 3 per cent pre- 
 mium over their notes. The actual payments out of this Bank, from Oc- 
 tober, 1839, to June. 1840, had been to the immense amount of a million 
 and a quarter of Public Debt, Fire Loans, State expenses, and in redeem- 
 ing its own bills, which were hunted up and brought in hourly for specie. 
 The taxes, which had to be paid in specie paying bank notes, had also been 
 gathered, and brought home in June all of our bills which could be col- 
 lected in the country. 
 
 It is believed we had got in by these causes, very nearly tlie whole of 
 the notes of the Bank, in existence. Our books shew, that after charging 
 against the Bank every note it ever issued, upwards of five millions of 
 dollars, ($5,000,000,) the whole amount then outstanding, was only $339,- 
 000. That a very large portion of this, perhaps nearly all, has been des- 
 troyed and lost, and will never come against the Bank, there are many 
 reasons for believing. One instance, taken from the account of our issues 
 as to the denomination below one dollar, will give some idea of the proba- 
 ble gain on the others. 
 
 Of small bills under $1, there have been issued in all $385,352 18 
 
 Beturned and cancelled,.^ -305,889 18 
 
 Leaving unaccounted for and a probable gain $79,463 GO 
 
 Of these bills, none are met in circulation : for several years very few 
 have come into the Bank, and it will be safe to count the gain on them at 
 $75,000. 
 
 In the foregoing portions of this report, I have shown how the Bank has 
 discharged the duties imposed on it by the original charter, in connec- 
 tion with its profits, and the" Treasury operations in peace and war, and 
 those subsequently assigned to it in regard to the public debt. But the 
 main declared purpose of its institution, was that which, from the history 
 of the time, the preamble of the charter, and the provisions contained in 
 the charter itself, plainly appears. " * 
 
 71 
 
562 SPECIAL REPORTS OF 
 
 It is well known that the Bavik had its origin in the distress(fs and em- 
 barrassments which pervaded all classes of our citizens, and especially th e 
 Agricultual interest, prior to December 1812, when it was chartered. It 
 was then proposed and carried as a measure of relief for the people, and 
 as an auxiliary in enabling them and the State, to meet the burden^ of the 
 increased taxation, and the expenses of the war with Great Britain. 
 
 The Preamble is as follows : • • - ' 
 
 "Whereas, it is deemed expedient and beneficial, both to the State and 
 the citizens thereof, to establish a Bank on the funds of the State, for the 
 purpose of discounting paper, and making loans for longer periods than 
 has heretofore been customary, and on security different from what has 
 hitherto been required." 
 
 The State possessed at that time certain pecuniary resources consisting 
 of Stocks in the State Bank, the Planters and Mechanics' Bank, and of 
 debts due to it by the General Government and by private individuals. 
 These resources had been accumulated out of Treasury funds drawn by 
 taxation from the people. 
 
 These stocks and debts were given as the immediate capital of the Bank, 
 to which were added, as they happened to arise, the balances which in 
 several after years, remained unexpended in the Treasury. These funds 
 have been thus saved from being wasted and lost, are still existing, and 
 have been made to yield a higher actual revenue than they did in their 
 original shape, while they have been the bases of operations of the greatest 
 value to the State, made in accordance with the design of the Legislature 
 in chartering the Institution. 
 
 These new methods and principles of banking were invented and enacted 
 to open facilities for Bank accommodations to the Agricultural class, in a 
 Bank owned by themselves, created out of funds drawn by taxation from 
 their own pockets, and subject at all times to be directed and controlled 
 by themselves. They constituted, as a class, far the most numerous por- 
 tion of our population, were the owners of the greatest amount of tax paying 
 property, were highly respectable for their intelligence, and had contribu- 
 ted most by industry and productive labor, to the wealth of the State ; and 
 by the taxes they paid, to its support. 
 
 These, by their remoteness from the city of Charleston, where alone 
 Banks were then established, and by the modes of doing business in those 
 Banks, which were then suited only to commercial customs and commercial 
 men, were in effect excluded from any participation in their accommodations. 
 To them, the establishment of this Bank was a new era, for in every stage 
 of its existence, and under every administration of its affairs, the Direction 
 have acted avowedly in the spirit of the Charter, and devoted as much of 
 its means as a prudent managment of its affairs would allow, to sustain and 
 nourish this great interest, by invigorating and giving effect to its exer- 
 tions, and by aiding it and defending it in its reverses. How far these 
 operations of the Bank have worked for the public got5d, every man's ex- 
 perience can bear testimony, for there is not a district nor parish, nor 
 scarcely a neighborhood in the State, in which some worthy citizen has not 
 experienced its assistance ; and where distress has not been alleviated, mis- 
 fortune aided, or ruin averted. 
 
 It is true, most true, that more money might have been made in the 
 shape of profits, by a harsher policy ; but then, it would have been done at 
 he expence of that higher profit, which by judicious aid saves to her citi- 
 
 I 
 
PRESIDENT OF BANK. 56a 
 
 zens, their integrity and self respect, and to the State, its citizens and 
 their property, while it inspires and arras them for more vigorous exertions. 
 It may be said, however, that admitting all to be true as of the past, it will 
 not apply to the future ; that the Bank has fulfilled its destiny, and that 
 its functions are no longer needed by those for whose advantage it was 
 created; that other Banks have been established, both in Charleston and 
 in the interior, and therefore, this Bank should nx)w be withdrawn. 
 
 If the State had no Bank, and it were proposed now for the first time to 
 establish one, these views might bo considered as bearing on the issue; but 
 the question is widely diff"erent. However plausible it may appear, and 
 however attractive in its speculative bearings, the scheme for abolishing the 
 Bank at present in existence, (or what is the same thing, destroying it by 
 measures it cannot survive.) and which in 31 years of its operations, has 
 become so intervwined with the affairs of the State, and the property and 
 business of the people ; is practically, an experiment of great hazard ; it 
 involves a radical upturning and overturning of what has been long con- 
 sidered as State policy, an entire change in the condition of individuals ; 
 in taxation ; and in the fiscal action of the State, 
 
 It- might even be admitted, against all experience to the contrary, that 
 the creation of the Bank was unwise, and yet it would be far more unwise 
 now to destroy it. It is true, there are now many more Banks than there 
 were in 1812, and that more facilities do exist for Bank accommodations, 
 brut it is by no means true, that- these accommodations are of that charac- 
 ter in which the agriculturists will meet with the sympathy, or obtain the 
 assistance they often require. There are cases of numerous occurrence, 
 where" the very principles on which this Bank would give relief, and give 
 it with safety to itself and advantage to the State and all concerned, would 
 utterly preclude and cut them off from any assistance from the private 
 Banks ; indeed where their principles of action would create the very cases 
 that it would be the duty of this Bank to relieve. Few will doubt, that if 
 this Bank was abolished, its commercial business would be readily taken 
 up by the other Banks, but who is prepared to say, that the agriculturists 
 would find their interests more regarded by them than they are now. or 
 were previous to 1812 ? 
 
 It may be, that there is more banking capital in the State than there is 
 need for, but the excess is not of that sort which is to foster the planters, 
 the farmers, the mechanics and the tradesmen. The profits of banking 
 have been reduced along with those of other pursuits, by the course of 
 events over which we can exercise little control, and the abolishing this in- 
 stitution would undoubtedly leave a large business to be divided amongst 
 the private Banks, which would make their dividends larger, and their 
 Stocks more valuable. 
 
 A willingness is indicated, if it were practicable, to abolish all Banks ; 
 and although the suffering it would create, would be incalculable, we might 
 in the course of time draw some compensation out of the state of things 
 which would arise from the measure. But while every State around us 
 .continues the system, it is impossible to banish a Bank circulation from 
 amongst us ; as long as it exists, it will be used by the people, who for that 
 use, must pay a tax in the shape of interest for the loans, or the losses of 
 the bills. Why shall such taxes, called profits, go exclusively to private 
 Banks ? Why, if the people are taxed by it, shall not a portion of these 
 taxes go into the public treasury to pay the public debts, and dqfray the 
 
564 SPECIAL REPOIITS OF 
 
 expenses of the State Grovernment ^ Sucli lias been the operation of things 
 since this Bank has been established, but such will not be the case, if it be 
 abolished and wound up. The people will experience all the evils and 
 some of the benefits of a paper currency, without having any part of the 
 compensation which the profits of the business brings to their Treasury. 
 
 Amongst those evils, there is one peculiarly worthy of consideration. 
 The prices of property rise or fall with the amount of money in circulation. 
 The Banks have great power in increasing or diminishing the quantity of 
 paper money ; they have, therefore, the vast power of raising or depressing 
 the prices of property. Their circulation may be perfectly sound, or it 
 may not, and yet as the State has given the private Banks the right to 
 issue it, she can neither restain them in their issue, nor can she investi- 
 gate their afiairs and show to the people, who take it on her recommenda- 
 tion, as money, whether it is good or bad. The power of doing mischief 
 has been given to them, and the direct power of remedying or controlling 
 it, she has passed from her hands. But over her own institution she has 
 unlimited control ; it can lock up no secrets from her Committees, and her 
 Legislature. If it is disposed to run wild, she checks it ; if it attempts to 
 palm off a vicious currency, she detects the fraud, punishes its perpe- 
 trators, and protects her people. It is the creature of her will, lives at her 
 sufferance, and acts exactly as she may dictate. 
 
 Indeed, the chief if not only influence she can bring to bear upon the 
 other Banks, is through the example and operations of her own Bank. Let 
 her abolish it, and she will have the Bank power seated upon her shoulders 
 without the least ability to shake it off, or to influence or control its action. 
 
 It is far from our purpose to say, that the operations of our private 
 Banks have been hostile or disadvantageous to any of its great interests, 
 or to the State. It is only our purpose to shew, that if they were so dis- 
 posed to act, how powerless the State is, to control or influence them, unless 
 it be by the example and action of its own Bank 
 
 They perform the functions they were created for, and it is not to be 
 expected they will change their course. They were chartered as commer- 
 cial aids, and so well have they discharged their duties in this line, that 
 their credit has stood the shock of every trial unshaken, and the confidence 
 in their integrity and good condition, remains altogether unimpaired. 
 
 The Governor indicates the opinion, that all Banks are evils, and a 
 Bank operating like ours, on the funds and credit of the State, especially 
 so ; the best proof of the latter being, he says, that all other Banks so 
 formed, save ours, have failed. 
 
 How far any have been formed or administered as ours, or in what par- 
 ticulars they have differed, I am not now in possession of proper documents 
 to say. My impression is, that most if not all, established and owned ex- 
 clusively by a State, have been created in the new States upon plans and 
 principles very different, and where crude ideas of Banking, and a very 
 unmanageable temper for speculations, were prevalent; and where the 
 failures of private Banks have been more frequent and signal, and would 
 afford, therefore, stronger proofs of the same kind against private Banks 
 here ; and yet this Bank has safely stood the test of 3 1 years, as our pri- 
 vate Banks have even a longer trial. But, it is said, it is inconsistent in 
 our State to have connexion with, or to owu a Bank ; for our people "hare 
 for several years past, waged an unremitted warfare against the establish- 
 ment of a similar, and not more objectionable institution by the Federal 
 Government." 
 
PliESIDENT OF BANK. 565 
 
 No fact is clearer, than that the opinions and principles of the people of 
 this State, are opposed to the connexion of the Federal Government with 
 Banks, whether private or public. 
 
 The similitude of the two cases is faint and unreal, being merely in naiiie, 
 while in substance, nothing can be more unlike. The connexioti of the 
 Federal Government with Banks, whether a United States Bank, or those 
 chartered by the States, is neither warranted by the Constitution, nor jus- 
 tified by sound policy. The Federal Constitution has no where granted 
 the Government either a right to create a United States Bank, or to re- 
 ceive or pay away the notes of one, or of any other Bank. Its exercise is 
 a usurpation, tends to consolidation, and is opposed to the rightful powers 
 of the States. Th( corrupting influence which the Federal Government 
 might obtain, if permitted to league and ally itself with Banks ; the use it 
 might make of them (irresponsible as they are in every way to the people, 
 or to their Representatives in that Government) in undermining and sub- 
 verting the Constitution, constitute a part only, of the reasons on which 
 the opposition of our people has rested. But, how can it be maintained 
 that the instances are parallel ? Has not our State a right to make a Bank? 
 And to receive and pay away its paper in her Treasury operations ? Or, 
 can -it be said of her Bank, that it is irresponsible to her, while it is in re- 
 ality the only Bank that is or can be made responsible to her ? The only 
 one she can examine or regulate, or if she please, continue or abolish by a 
 word ? Is it consolidating and opposed to State rights, or in reality an 
 emanation of and supporter of them? 
 
 ' We oppose the National Bank as unconstitutional, and as the most ob- 
 jectionable form of league between Bank and State, not only for the rea- 
 sons stated above, but because of its centralizing influence on trade ; be- 
 cause it used the capital of our own citizens who owned stock in it, to di- 
 vert its C9mmerce from our own State, to build up rival cities and sections, 
 and to render us, in trade and finance, tributary and subject to them ; to 
 weaken, to impoverish and to control it. Has this Bank carried or driven 
 from South Carolina, her capital, her commerce, her people, or her wealth, 
 to strengthen her rivals, or to be turned against ourselves ? So far from 
 it, its whole efforts have been directed with all the energy, zeal, sagacity and 
 power which it has , ever possessed, to retain, extend, multiply and sustain 
 them at home. 
 
 It has been, and it is, in every aspect of constitutional principle and State 
 rights, of policy and action, the antagonist and antipode of a United States 
 Bank. - 
 
 EFFECT ON THE CREDIT OF THE STATE. 
 
 The last branch of the inquiry made in the Resolution, is, what effect 
 the proposed measures would have upon the credit of the State. 
 
 At present, the credit of South Carolina stands at the highest point in 
 England, and at home. There is no spot or blemish upon her name, for 
 failure of payments, for engagements broken, or for contracts violated, — 
 Her Bonds or Stocks are sought eagerly for investment, on both sides of 
 the Atlantic, at rates as high as any in the market. 
 
 I have previously shown, how the profits and capital of the Bank have 
 been repeatedly and solemnly pledged for the various portions of the pub- 
 liq debt. The limits to which this report has already swelled, preclude 
 any remarks except in regard to the Fire Loan. The vulnerability of the 
 
566 SPECIAL 11EP011T8 OF 
 
 State in regard to it, is so striking, that it would be inexcusable not to fix 
 attention on it especially. The first section of the Act of.. June, 1838. 
 "authorizes and directs the Governor to issue Bonds or contracts for $2 - 
 000,000," for the payment of which the " faith and funds" of the State are 
 pledged. Can any doubt exist that these include the Bank, and all its 
 means? It again, (10 sec.) makes it the duty of the Bank, "to make pro- 
 per provision for the payment of the interest," " and the ultimate payment 
 of the principal." When we remember the value attached to the punctual 
 payment of interest by English capitalists, this provision for its prompt 
 discharge by a Bank of large means and good credit, will immediately 
 strike us as very important ; it was an obligation on a Corporation, in addi- 
 tion to that of the State, the former being subject to legal process, and the 
 latter only amenable to a sense of justice. 
 
 This gave our Bonds a higher value than those of other States. The 
 agent of the State, the Hon. George McDuffie, presented himself in the 
 money market with this Act in his hand, holding out the pledges, not only 
 of the faith and funds of the State, but of the liability of the Bank. They 
 became the basis of the whole transaction, and were parts, and material 
 parts, of his contract with Messrs. Baring, Brothers & Co. as will appear 
 by his letter hereto appended, as Exhibit No. 2. 
 
 The perfect integrity of this State, in adhering to her pledges in former 
 Loans, and the punctuality of this Bank in paying what the State had en- 
 gaged for, were matters urged by him, and well understood and considered ; 
 and when, therefore, they read the pledges above recited, as well as the 
 further pledges in that Act, that the $2,000,000 borrowed, should be " ad- 
 ditional capital," (sec. 11,) j-and with its annual accumulations should be con- 
 sidered and solemnly pledged and set apart for the payment of the inter- 
 est, and final redemption" of the Loan ; and the further pledge (in sec. 12) 
 of the profits of the Bank, on its original capital, " after they had redeemed 
 the Stocks for which they were previously pledged" ; they felt no doubt of 
 the safety of their contract. 
 
 With these guaranties the Loan was effected, as will appear by Gen. 
 McDuffie's letter appended to this Report. The last payment falls due in 
 Europe in 1868, and at home in 1870. 
 
 If -the pledges given in the foregoing Act, ratified and made binding by 
 a solemn contract under hand and seal, between the authorized Agent of 
 this State, (whose very name was a bond for truthfulness and fidelity,) and 
 the house of Messrs. Baring, Brothers & Co. arc things of reality, what do 
 they mean ? What have they promised ? What have they pledged the 
 credit and character of South Carolina to ? To nothing less than this : 
 
 That, the security which you offered in the capital and profits of the 
 Bank, should be continued in good faith, until the last instalment of the 
 Loan had been paid. To give any other construction to this contract, 
 would be to palter with words, and to cheat ourselves into lasting dishonor, 
 unless the consent of the holders of cur Bonds and Stocks could be ob- 
 tained, to surrender them, or take some other security. For the first, a 
 ruinous premium would, I fear, be required, and the last, I considel entire- 
 ly impracticable The conduct of the Legislature in authorizing this con- 
 tract, may, even for argument's sake, be admitted to have been unwise, but 
 it does not alter the state of the contract ; and the honor and credit of the 
 State can only be preserved by faithfully performing its conditions. — 
 These conditions preserve to the Bank its funds unimpaired, with the priv. 
 
PRESIDENT OF BANK. 
 
 567: 
 
 ilege to use them to make all fair profits, as other Banks do ; and to ena- 
 ble it to do this in good faith, it should be cherished and guarded from out- 
 ward wrong and inward mismanagement. It should have a fair chance for 
 its operations, and not be put at a disadvantage in the competition it has 
 to maintain with its rivals. If it is thus watched over and protected, 
 wisely and in good faith, and its management conducted with only ordinary 
 ability and prudence, there is every reason to believe, that it will conduct 
 the State safely through the payment of her debts, without calling on the 
 people for a cent of taxes, and will then have a capital left of more than 
 double that originally given to it. 
 
 All of which is respectfully submitted, 
 
 F. H. ELMORE, President. 
 
 APPENDIX. 
 
 EXHIBIT No. 1 
 
 The following is a statement of the probable operation of the Sinking 
 Fund, in payment of the Public Debt, up to 1st January, 1852, when the 
 last instalment of the 6 per cents, issued for the subscription to the Rail 
 Road falls due. 
 
 Balance of the Sinking Fund held 
 by the Bank on the 1 st of Octo- 
 ber, 1841 $743,628 31 
 
 Profits of year ending 1st 
 
 October, 1841_-_ H)6,000 00 
 
 $849,628 31 
 Stock redeemable and ■ 
 Int. payable during 
 the year 1842 276,000 00 
 
 Profits of the year end- 
 
 573,628 31 
 
 ing 1st October, 1842 100,000 00 
 
 673,628 31 
 Interest payable in 1843 73,500 00 
 
 600,128 31 
 Profits of year ending 1 st 
 
 October, 1843 100,000 00 
 
 700,128 31 
 
 Am't brought forward. .$700,128 31 
 Interest payable in 1 844 73,500 00 
 
 626,628 31 
 Profits of year ending 
 
 1st Octoberj 1844... 110,00a 00 
 
 736,628 31 
 Stock redeemable and 
 
 Int. payable in 1 845 . 314,125 00 
 
 422,503 31 
 Profits of year ending 
 
 1st October, 1845... 100,000 00 
 
 $522,503 81 
 Stock redeemable and 
 
 Int. payable in 1846. 349;750 00 
 
 172,753 31 
 Profits of year ending 1st 
 
 October, 1846 90,000 00 
 
 26^,753 31 
 
568 
 
 SPECIAL EEPOHTS OF 
 
 Am't brought forward .$262,753 31 
 Interest payable in 1847 46,000 00 
 
 Profits of year ending 
 1st October, 1847. 
 
 216,753 31 
 90,000 00 
 
 306,753 31 
 Stock redeemable and 
 
 Int. payable in 1848. 240,000 00 
 
 . 66,753 31 
 Profits of year ending 
 
 1st October, 1848- _ 80,000 00 
 
 146,753 31 
 In't. payable in 1849 34,000 00 
 
 112,753 31 
 Profits of year ending 1st 
 
 October, 1849. _. 80,000 00 
 
 192,753 31 
 
 Am't brought forward -$192,753 31 
 Profits of year ending 1 st 
 
 October, 1850 78,000 00 
 
 $270,753 31 
 
 Stock redeemable and 
 Interest payable in 
 1850 225,000 00 
 
 Interest payable in 
 
 1851 22,000 00.247,0.00 00 
 
 23,753 31 
 Profits of year ending 1st 
 
 October, 1851 75,000 00 
 
 98,753 31 
 Stock redeemable and Inter- 
 est payable in 1852. .$213,000 00 
 Deduct the above balance 
 
 in the Sinking Fund... 98,753 31 
 
 Balance to be provided 
 
 for - $114,246 69 
 
 The state of the Funds held by the Bank in Jan. 1852, will be as follows : 
 
 Capital $1,156,318 48 
 
 Surplus .Revenue.- ,-..200,000 00 
 
 Fire Loan... ._.' 2,000,000 00 
 
 3,356,318' 48 
 
 Deduct the foregoing amount to be advanced to the Sink- 
 ing Fund in January, 1852 . 114,246 69 
 
 Leaves this balance to be then held by the Bank $3,242,071 79 
 
 The following is a statement of the probable operation of the Bank, in 
 payment of the Public Debt, after 1 st January, 1 852 : 
 
 The profits of the Bank, after payment of the interest on the Fire Loan 
 for the year ending 1st of October, 1852, maybe assumed to be $70,000 00 
 
 Profits of the year ending 1st October, 1853 70,000 00 
 
 1854 70,000 00 
 
 1855 75,000 00 
 
 1856--- 75,000 00 
 
 1857 80,000 00 
 
 u 
 
 u 
 
 U ' 
 
 u 
 
 u 
 
 u 
 
 ii 
 
 u 
 
 u 
 
 u 
 
 u 
 
 ii 
 
 u 
 
 a 
 
 u 
 
 u 
 
 ii 
 
 ii 
 
 u 
 
 a 
 
 u 
 
 u 
 
 ii 
 
 ii 
 
 Sinking Fund will then be $440,000 00 
 
 On the 1st January, 1858, there will fall due one half of the 5 percent. 
 Sterling Bonds held in Europe (a part of the Fire Loan,) which, with 
 charges and exchange, will amount to about. .$554,350 00 
 Deduct the above amount of reserved profits of 
 
 Sinking Fund _ , 440,000 00 
 
PRESIDENT OF BANK, 569 
 
 Will leave to be provided or supplied by the 
 Bank from the funds in its charge, over and 
 above profits $114,350 00 
 
 The profits of the year ending 1 st October, 1 858 . $75,000 00 
 The profits of the year ending 1st October, 1859. .75,000 00 
 
 $150,000 00 
 
 Six per cent. Stock, part of Fire Loan, which 
 
 will fall due 1st January, 1860, amounts to. $482,222 22 
 
 Deduct the two years profits of Sinking Fund. .150,000 00 
 
 Will leave to be supplied by the Bank from the 
 funds in its charge, over and above the profits 
 on hand $332,222 22 
 
 Profits of the Bank for year ending 1st Oct. 1860, $60,000 00 
 " •' " " " "1861, 60,000 00 
 
 " " " " " " 1862, 60,000 00 
 
 « " « " ^ " " 1863, 65,000 00 
 
 " " " " « " 1864, 65,000 00 
 
 " " " " - -" " 1865, 70,000 00 
 
 " " " ^xJ^J-^^T?;^^^^' 1866, 70,000 00 
 
 I 7 E E SI T Tj $520,000 00 
 
 ;^IF611^§^ $446,572 22 
 
 On the 1st of January,"T8B8f^ffie^i5a!ance of the 5 per cent. 
 
 Bonds held in Europe will fall due, amoun'g to $554,350 00 
 Deduct the above amount of reserved profits or 
 
 Sinking Fund 520,000 00 
 
 Will leave to be supplied from funds held by, the 
 
 Bank 34,350 00 
 
 Profits of the year ending 1st October, 1868 $70,000 00 
 
 " " " 1869 70,000 00 
 
 $140,000 00 
 
 Six per cents, which will fall due on the 1st January, 1870, 
 (balance of the Fire Loan) amount to- $482,222 22 
 
 Deduct above amount of reserved profits or Sink- 
 ing Fund.- _ 140,000 0.0 
 
 Leaves to be supplied by the Bank from the funds 
 
 held by it, over and above profits _^ $342,^22 22 
 
 Making the sum of $823,144 44 
 
 the entire amount required to be advanced to take up the debts of the State. 
 The Funds to be held by the Bank on the 1st October, 1852, 
 
 it has been shown, would amount to about $3,242,071 79 
 
 72 
 
570 SPECIAL REPORTS OF 
 
 Deduct the above amount to be supplied out of said funds 
 
 to take up the Public Debt 823,144 44 
 
 Leaving funds to the amount of. -.--$2,418,927 35 
 
 after final payment of the State Debt. 
 
 The following then will be a synopsis of what will have been the opera- 
 tion of the Bank from the date of its institution to the 1st January, 1870 : 
 
 Funds received by the Bank. 
 
 For Capital .-- _ $1,372,250 60 
 
 Surplus Revenue of United States. .. ^ _ - ^. _ 1,051 ,422 09 
 
 Fire Loan - 2,000^000 00 
 
 $4,423,672 69 
 
 Debts paid by the Bank. 
 
 6 per cents, and 3 per cents. Revolutionary Debts $215,932 12r 
 
 Paid on State subscriptions to Rail Road 200,000 00 
 
 « 6 per cents, of 1820.-- _J 800,000 00 
 
 *' 5 per cents, of 1822 ■_ 200,000 00 
 
 " 5 per cents, of 1824 250,000 00 
 
 " 5 per cents, of 1826 300,000 00 
 
 « 6 per cents, due 1 848, Rail Road subscription _ - . 200,000 00 
 
 « 6 per cents, due 1850, do do ^_.. 200,000 00 
 
 " 6 per cents, due 1852, do do -,200,000 00 
 
 " 5 per cents. Sterling Bonds, Fire Loan. -__.;554,350 00 
 
 « 6 per cent. Stock do... -.482,222 22 
 
 " 5 per cent. Sterling Bonds do -.554,350 00 
 
 " Gpercent. Stock do.. -.482,222 22 
 
 4,639,076 56 
 Deduct Funds received for the State.... 4,423,672 69 
 
 $215,403 87 
 Add balance of Funds remaining on hand _ 2,418,927 35 
 
 $2,634,331 22 
 
 The above statement exhibits the operation of the Bank with respect to 
 the funds received from the State, in the form of principal or capital. 
 
 The interest account is separate and requires a further statement. 
 During the first eight years after the Bank was established, 
 
 it paid in cash into the Treasury, (see Annual Statements 
 
 of the Comptroller,) 1-- $592,001 28 
 
 Subsequently — up to the 1st of October, 1843, the Bank has 
 
 paid to the holders of State Stock for Interest ^^-..2,004,884 63 
 
 Interest payable by the Bank up to the 1 st January, 1 852, as 
 
 estimated in the foregoing statement of the Sinking Fund,. -367,375 00 
 Interest payable on the Fire Loan debt from the 1st October, 
 
 1843, to 1st January, 1858, when first payment falls due 1,784,250 00 
 
PRESIDENT OF BANK. 571 
 
 Interest payable on Fire Loan Debt from 1st January, 1858, 
 
 to 1st January, 1860, when one-half of the 6 per cents. 
 
 fall due .- -•._-..-- :.. 175,000 00 
 
 Interest payable from 1st January, 1860, to 1st January, 
 
 1868, when the balance of the Sterling Bonds fall due. _ 468,000 00 
 Interest payable from 1st January, 1868, to 1st January, 
 
 1870, when the balance of the 6 per cents, fall due 58,000 00 
 
 $5,449,510 91 
 
 It therefore appears, that the Bank. will have paid fbr Interest, either di- 
 rectly into the State Treasury or to the creditors of the State, the sum of 
 $5,449,510 91. That the State Treasury will not have paid one dollar of 
 the above Stocks, either principal or interest, but that the Bank will have 
 paid $5,449,510 91 for interest ; debts to the amount of $4,639,076 56, 
 and will have on hand a balance of $2,418,927 35 ; and that to effect these 
 operations the only means it has received from the State, are the several 
 sums above stated, which amount in the aggregate to $4,423,672 69. 
 
 One other mode of illustrating the action of the Bank is added, combi- 
 ning a general interest account with the receipts and payments on account 
 of Capital, viz: 
 
 The entire amount of funds received from the State, and used by the 
 Bank as Capital, at various times, and for various periods. .$4,423,672 69 
 On the several items of this aggregate. Interest is calcula- 
 ted for the time the Bank has had them, occasionally ma- 
 king rests, and adding profit to Capital, and adding inter- 
 est on such sums. The interest chargeable to the Bank 
 up to 1 870, calculated in the above manner 6,300,000. 00 
 
 The Bank to be charged to 1870, with . .-$10,723,672 69 
 
 The Bank has paid for the State, and in 1870 will have paid 
 
 to the amount of ,--_ :$4,639,079 56 
 
 for the principal of debts. 
 Interest on said debts, as exhibited in the 
 
 above statement of Interest account 5,449,510 91 
 
 Assets on hand in 1870, as Capital, as shown 
 
 above.--.... _,-._--,.-._- ._,. 2,418,929 35 12,507,514 82 
 
 • 
 
 Leaving, as clear gain to the State in 1 870, by the opera- 
 tions of the Bank. _ $1,783,842 13 
 
 To exhibit precisely the state of profit made by the Bank during the 
 above operations, would require a complex statement and calculation, which 
 would not tend to elucidate the general view of the Bank operations in 
 redemption of the public debt. It is partially exhibited in the "Bank 
 Compilation," page 241, and in the report of the President, at page 455 
 of said Compilation. 
 
 C. M. FURMAN, Cashier. 
 
572 SPECIAL REPORTS OF 
 
 EXHIBIT No. 2 
 
 Copy of Letter from the President of the Bank of the State of South 
 Carolina^ to the HonoroJble George McDuffie. 
 
 Bank State South Carolina 
 Charleston, 10th Nov. 1843. 
 
 ■! 
 
 Hon. George McDuffie, 
 
 My Dear Sir : — Governor Hammond has just notified me that he shall 
 feel it incumbent on him to recommend in his Message to the Legislature, 
 that the Bank of the State be wound up, and its funds taken to pay the 
 public debt in seven years. This will be by 1st January, 1851. 
 
 The Fire Loan, negotiated by you with Messrs. Baring, Brothers & Co. 
 will fall due in 1858 and 1868. 
 
 By the several sections of that Act, numbered 1, 10, 11 and 12, at pages 
 43 and 48 of the accompanying copy of a compilation of the laws, &c. 
 relating to the Bank of the State of South Carolina, which I send here- 
 with, you will see the various pledges of the faith of the State, and of the 
 profits of this Bank, " for the punctual payment of the interest," and " for 
 the ultimate payment of the principal" of that loan. 
 
 The proposed recommendation of Governor Hammond, if carried out, 
 will annihilate the principal, and, of course, prevent any profits. 
 
 I am directed by the Board to procure all such information as may be 
 needed to set the proposed measure in a proper light ; and it has been 
 deemed highly important that I should address you, as the agent by whom 
 the loan was negotiated with Messrs. Baring, Brothers & Co. on the seve- 
 ral points stated in the inquiries below. 
 
 1st. Was any value attached by Messrs. Baring, Brothers & Co. to the 
 pledge of the profits of the Bank, and the security offered by the several 
 clauses of the Act, for either the " punctual payment of the interest," or 
 "for the final redemption of the principal?" 
 
 2d. Did you, in your several negotiations, yourself, lay any stress, or 
 hold these pledges as giving any higher value to our bonds? 
 
 3d. Did the fact, that a corporation was liable to be sued, which a State 
 was not, and that, in addition to the usual pledges of the faith of a State, 
 there was on our bonds the liability of our Bank, give to. our Bonds an ad- 
 vantage over other State Bonds in the market ? 
 
 4th. Do you suppose that the withdrawal by the State, of the funds 
 pledged, and the winding up of the Bank, as suggested, would be considered 
 as any infringement of the contract or condition of the loan, or as incon- 
 sistent with the faith pledged in the Act of 1838? 
 
 5th. Do you suppose such a measure would lessen the value of these 
 stocks in the hands of the holders in Europe? 
 
 6th, What efiect do you suppose it would have on the character or 
 credit of South Carolina ? 
 
 I am, dear Sir, respectfully, &c. &c. 
 
 F. H. ELMORE, President. 
 
 I 
 
PRESIDENT OF BANK. 573 
 
 Copy of Letter from Hon. George McDuffie^ in reply to the President of 
 the Bank of the State of South Carolina. 
 
 Chakleston, 30th Nov. 1843. 
 
 My Dear Sir : — It did not occur to me that you would probably be in 
 Columbia as I passed through this place, and I therefore omitted to 
 answer your letter of the 10th instant, anticipating an interview with you 
 here. 
 
 In answer to your first inquiry, I can say that very great value was 
 attached by Messrs. Baring, Brothers & Co., to the pledge of the profits 
 of the Bank, and also to the agency of such an institution in paying the 
 interest, believing that it would insure more certainty and promptitude 
 than any other description of agency. This was urged by me and admit- 
 ted by them. 
 
 2d. I have already answered this. 
 
 3d. The responsibility of the Bank, not only to the law, but to public 
 opinion, so essential to its success, had much weight in estimating the 
 value of the bonds. 
 
 4th. From my answers to the foregoing interrogatories, it is obvious 
 that I can answer this only in the affirmative. 
 
 5th. I answer this also in the affirmative. 
 
 6th. It would certainly impair our credit ; for the Bankers of Europe, 
 judging us by our associates, believe the people will not vote for heavy 
 direct taxation to pay State debts, but would be quite willing the profits of 
 the Bank should be applied to that object. 
 
 , Very respectfully, yours, 
 
 GEORGE^ McDUFFIE. 
 
 (1845.) 
 Heptyrt of the President of tlte Bank of the State of South Carolina, in 
 
 answer to a Resolution requiring the President of tJie Bank to Report 
 
 Losses hy the Bank before tlie year 1843. 
 To the Honorable President and Members of the Senate. 
 
 " Whereas, the President and Directors of the Bank of the State of 
 South Carolina, in their annual report to the Legislature of November, 
 1843, state the sum of four hundred and seventy-three thousand five hun- 
 dred and fifty eight dollars and sixty-six cents, (473,558 66) to be lost in 
 bad debts by the said Bank, and have placed the same under the title of 
 amount carried to profit and loss — therefore 
 
 Resolved.) That the President of the said Bank report to the Senate, as 
 soon as practicable, the names of all those persons by whom the said sum 
 has been lost, specifying the amount and date of each loss, and the person 
 by whom lost." 
 
 In part answer to the foregoing Preamble and Resolution, I respectfully 
 submit the following Report of progress, and some views in relation to the 
 subject matter of the call. 
 
 There is an error of fact in the Preamble which it is proper should be 
 pointed out and explained, in order that what may hereafter be stated in 
 this Report may be fully understood. It is one which persons noj^ familiar 
 with Bank accounts may easily fall into, but which when pointed out is so 
 
574 SPECIAL REPORTS OF 
 
 obvious that none can be at a loss to understand it. It is that part which 
 says that the annual report of the Bank, of November, 1843, "states the 
 sum of $473,558 66 to be. lost in bad debts by the Bank." The report of 
 1843 states that this sum had been carried to the account of Profit and 
 Loss, between the establishment of the Bank in 1812 and November 1843 
 but not that all of this sum had been finally lost, for this would not have 
 been entirely correct. 
 
 The explanation is, that when all the accounts are closed at the end of 
 the fiscal year, in order to ascertain the profits and make up the annual re- 
 port, all the debts then decided to be bad are transferred from the current 
 accounts and carried to the genetal accountof Profit and Loss. But it by 
 no means follows that every debt carried to the Profit and Loss account, 
 is finally lost. In the annuaji report of 1843, in illustrating the operations 
 of the Bank in regard to the several classes of its. customers, a statement 
 was made of what had been carried to profit and loss up to that time : and 
 the facts as stated were, and are, for all the purposes they were there in- 
 tended to elucidate, accurately presented, while the inference whichhas been 
 drawn in the preamble of the foregoing resolution, is far from being so. 
 Some of the cases carried to profit and loss, and embraced in that illustra- 
 tion, since they were so transferred have been recovered in full, and others 
 have been paid in part. These payments have gone into the profits of the 
 Bank for the years in which they were received, and have been, as such, 
 shown in its accounts. 
 
 Immeditely on receiving the resolution, I addressed letters ' covering 
 copies of it to the acting President and the Cashier in Charleston, and to 
 the Presidents of the Branches, desiring them to furnish me with all the 
 information required by it. At the same time I directed that the accounts 
 should be made out with the utmost care; giving every credit and explana- 
 tion possible in each individual's case, that no more wounds might be in- 
 flicted upon the unfortunate debtors, their families and friends, than the 
 terms of the call had made absolutely necessary in the answer. I have at 
 length received their replies, wliich have been returned, after an examina- 
 tion of the books in part had shown the pfiicers that they could not complete 
 the information in time for this session ; and it is my duty to inform th& 
 Senate that several months will be required to procure, prepare and em-, 
 body all the information called for, in a way that will give a true' view of 
 each individual's account, and thus avoid aggravating the pain of the ex-, 
 posures by omitting the credits and explanations due to many. 
 
 That the Senate may clearly see how this is, I beg leave to explain some- 
 what at large the difficulties in the way of stating this account upon the, 
 principles I have indicated. That one which is called in the books of the 
 Bank, Profit and Loss, is a general account, in which on one side is charged 
 the aggregate of bad debts carried to it at the end of each fiscal year, and 
 on the other side is credited each payment or collection which may be af 
 terwards made from any one of these debts.. Besides this general account, 
 each name involved in it has an entry in the books of the proper year; but 
 it was not until of late years that each payment or collection was in all cases 
 carried back, and (besides being credited in the general account) ' credited; 
 to the individual account also ; indeed, in some cases where the payments, 
 were by indorsers, they did not desire it should be done, for fear of injuring 
 their claims It also adds to the difficulty and complexity in stating these 
 accounts with entire accuracy, that payments have sometimes been made 
 
PRESIDENT OF BANK. 575 
 
 by indorsers, and not unfrequently they have been made by principals or 
 indorsers at the mother Bank for Branch debts, and at the Branches for the 
 mother Bank, and sometimes to agents who have remitted money without 
 specifying the particular debt to which it should be credited. The Bank 
 has been in existence 33 years, and during that time the modes of keeping 
 the books at the Parent and Branches have undergone many changes, 
 growing in the progress of time more and more comprehensive and accurate, 
 so that the chief difficulty exists in those of the oldest date, where the offi- 
 cers who kept them are dead, and no explanation can now be had from 
 them. All of these books will have to be searched, and the accounts care- 
 fully compared, running back a third of a century, exhuming transactions 
 long buried in oblivion, and exposing names, and fastening imputations 
 on many who are dead as well as living, after all the means of explanations 
 (even if they had been allowed an opportunity to make any) have been lost, 
 and whereby, as no such opportunity has been allowed, it is done at the 
 hazard of adding to the afflictions of tlieir' misfortunes by classing and pub- 
 lishing them with those who are considered and treated as criminal. That 
 some of those whose names are in this account may have practised frauds 
 upon the Bank^is very true, and they may deserve in strict ' justice no for- 
 bearance ; while it is equally true that many are in it who have been brought 
 to ruin by being the indorsers or creditors of others who have cheated and 
 defrauded them ; and many have been ruined by acts of Providence ; and 
 to confound these classes, and expose each as equally dishonest and guilty, 
 is to do\ible the misfortunes of innocent victims, and inflict a heavy chas- 
 tisement on them, their families and friends ; which justice forbids and 
 sound policy condemns. 
 
 Since the receipt of this Resolution, I have endeavored, by the most 
 careful and deliberate reflection on its tendency and efl'ects, to decide 
 upon that course of action in regard to it, which the importance of the 
 measure, the interests of the State, and the welfare of the Bank, all equal- 
 ly demanded. I feel that I should but illy repay or deserve the confidence 
 with which I have been honored as the head of the Bank, if I hesitated 
 for one moment to lay before your honorable body what I now most 
 respectfully submit for your consideration, as the result of my delibera- 
 tions. 
 
 • When I received the Resolution above copied, I had the same general 
 view of its operation that I now entertain, but I determined to procure, if 
 possible, in time for the present session, all the facts called for, and took 
 my measures accordingly ; intending while that information was being 
 prepared to re-examine the whole ground, with a view to the correction of 
 any errors in my opinions in regard to it. I had also intended, when the 
 information was received, to have laid it, under seal, before' the Senate, 
 accompanying the papers with my views upon the subject, and then to 
 leave to its wisdom and better judgment the decision whether the seal 
 should be broken and the information contained be exposed. The inabili- 
 ty of the officers to furnish their reports, has put it out of my power, at 
 this session, to lay the information on the table of the Senate; but, in the 
 mean time, having carefully re-examined the whole subject, I do not feel 
 that I can, in duty, withhold from you all the light I can throw on what I 
 regard as one of the most important measures ever proposed in regard to 
 the Bank. 
 
 I submit, most respectfully, that if the State intends to carr/on any 
 
576 SPECIAL REPORTS OF 
 
 business, not in tlie ordinary line of a Grovernment, it must do it on the same 
 principles which make a like business successful when it is conducted by 
 individuals ; and in nothing is this more true than it is in Banking. If 
 the State embarks its heavy capital in its own Bank, it should, in all 
 respects, give that Bank equal advantages with those which are all around 
 it, and which would be greatly benefitted by whatever will injure its 
 business or destroy the institution itself. But above all, should there be a 
 strict adherence to, and regard of, the fundamental compact in which it 
 had its existence ; and the good faith of all those provisions which un- 
 questionably guard, or may even seem to cover, the transactions it may 
 have with its customers, should never be impinged for any reason short of 
 necessity. • ' 
 
 I further submit to the Senate, that the information called for by this 
 resolution cannot be given to the Senate without coutravening all these 
 points. 
 
 1. It will place the Bank of the State and all its business, at a disad- 
 vantage with private Banks. Because nothing is more tender than the 
 feelings of men in regard to their indebtedness, especially mercantile men, 
 and exposures of their accounts by' any Bank, or its managers or owners, 
 would drive every good customer away to other Banks where no such 
 exposures are made. It may be replied that this only exposes defaulters, 
 and that as it is a State concern, the State has a right to look after its 
 debts. This is not denied ; but it should be done in accordance to the 
 terms of the charter, viz : — by the Comptroller General and Committees 
 of investigation ; for such is the promise of the State in the Charter. I 
 am now only considering the policy, not the right; that I will presently 
 examine also, and dispose of. I will, therefore, for the present, for argu- 
 ment sake, waive the question as to the right, and consider the policy only. 
 
 The proceeding can only be justified as a measure of policy, on the 
 ground that it is just, and a measure which inflicts a penalty on dishonest 
 debtors by exposing their names, No one will deny it is a punishment, 
 and all must admit that it is wholly unjustifiable to punish innocent per- 
 sons. The exposure, therefore, assumes that all who are defaulters 
 are wilfully so, are crinainal, and should be exposed as the penalty 
 of their criminality. Of the defaulters to the Bank, some are doubt- 
 less more or less criminal, while more are themselves victims of their own 
 or others misfortunes, or perhaps even of the dishonesty of others. Some 
 have faithfully surrendered all their property, and paid as far as they had 
 a cent. Many are dead ; others have removed ; but most of them are 
 alive, or have descendants or relatives and friends whose feelings would be 
 deeply wounded by these exposures. Who can safely, at this late day, say 
 who of all these are guilty, and who innocent ? The sense of all, especi- 
 ally commercial communities, is against such proceedings, and all the 
 sympathies of human nature will take sides with the weak and oppressed ; 
 and if it be done, the regard and good will of great numbers of its friends 
 and customers will be turned into hatred and hostility to your Bank ; it 
 will become more odious than a public executioner, inasmuch as it sacrifices 
 the dead and the innocent. No man whose name is in its books will ever 
 feel safe, for no one is so strong in wealth or high in credit, that visitations 
 of Providence or the failure of those he trusts, may not rob him of ample 
 means to pay his debts, and leave his name to be exposed in the catalogue. 
 The customers of banks are always sensitive and easily alarmed, and they 
 
PEESIDENT OF BANK. 577 
 
 will not fail to regard this as an ontering wedge — the beginning of a 
 series of exposures which will ultimately embrace every other transaction 
 in your institution, and annihilate every protection to their business which 
 is provided in the charter-^the best of them will leave it and go into the 
 private institutions, where Bank usage and a just appreciation of their 
 own interests have invariably prevented such suicidal measures, -und there 
 will be left for the Bank of the State only the-refuse and desperate. The 
 end is easily foretold — its businessiind credii destroyed — .itself ruined, and 
 the State subjected to losses of fearful extent. 
 
 This Resolution makes a fundamental change in the administrative 
 policy of the Bank — in its charter. What' is tl\ere to induce us to make 
 it? Have private banks, ever awake to their own advantage, set us the 
 example ? Far from it; they know too well such f)roceedings ^ould be 
 fatal to their best interests. Does the p.ast history of the Bank of the 
 State show its necessity? Let facts give the answer. It Avas chartered at 
 the beginning of the late war with England, and has existed thirty-three 
 years. Besides this war, it has passed through several of the most fearful 
 and trying vicissitudes to which human pursuits have ever been subjected— 7 
 convulsions and reverses to commerce and agriculture which have produced 
 the most hazardous conditions in thejiffairs of States, and individuals. 
 By a faithful adherence to its charter, it ^has been conducted safely 
 and prosperously amidst all these trials for a third of a century; aixd 
 besides, in ways and instances unnumbered, giving relief and assistance to 
 its citizens, an d^ even to the State itself, it has pireserved its whole capital 
 without loss, made enough of profit to cover all the losses by the bad 
 debts referred to in this resolution, and has likewise paid' a nett profit on 
 its capital, exceeding seven per cent, into the State Treasury and to the- 
 State debt. 'It may well be donated if any bank biiSjOr could/ have done 
 more. • " ' '..'■.' ' - , . • 
 
 2. This measure appears tcrme to conti:ayejie the charter, -and to be in 
 direct conflict with its provisions. ' V, ' 
 
 When the State, in 1812, decided to go into Banking, it decided to go. 
 into a pursuit private in its nature, as distinguished from sovereign or gov- 
 ernmental functions. It could not carry on banking of itself, it would 
 have been unconstitutional ; it would not have been politic either, if it had 
 been constitutional. The State, therefore, adapted her plans to law and 
 policy, and chartered a corporation as her Trustees. She gave to these 
 Trustees, as President and Directors, the management of the institution 
 under certain fundairiental stipulations, which made the Directors Trustees 
 as much for those who dealt with the Bank as f^r the State, in all matters 
 affecting those transactions. An oath is exacted' of these officers faithfully , 
 to execute their trusts under the charter. -The charter prescribed the 
 conditions on which private persons might, deal with the Bank, and set 
 forth all the privileges retained by the State for lookiiig into their aecouixts. 
 The 10th Section of the Act (s6e Bank Comp. p. G ) embodies these pro- 
 visions. It provides that the Legislature shall be furnished with general 
 statements of the accounts of the Bank by the President and Directors as 
 often as required ; that the Comptroller General shall inspect such general 
 accounts as often as he pleases, and makes it his duty to Tcport all viola- 
 tions of the fundamental rules Cf the corporation to thti Legislature and 
 then adds the following important restriction— - Provided, however' that' 
 nothing in this clause shall imply a right of inspecting the account of any 
 73 
 
578 SPECIAL REPORTS OF 
 
 private individual or individuals, or any body corporate or politic, *wit}i the 
 Bank." In 1817 the charter was modified, so .as to allow the- .Comptroller 
 General to examine "all the books and accounts of the Banlrof the State 
 except the persoHal Ledger or, book in which- the deposits of individuals 
 are entered." (Rank Comp. p. 15.) In 1823, President Elliott, in his 
 annual report, requested thfe Legislature to appoint committees periodi- 
 cally to examine the Rank; (Rank Comp. p. 354.) At tlie next session, 
 viz: 1824, an Act was passed furtlier arpending the charter, and providing 
 for committees of investigation, and the fourth clavise of that Act^ (sec 
 Rank Comp. p. 24) declares " that all clauses or parts of •'clauses, in any 
 Act of the General Assenjbly of this State, which may prohilSit the said 
 committee and the Coi^ptroller General from investigating fully thelbopks, 
 accounts,' and other documents of said Rank or its'Rranches, be, -and the 
 same are hereby, repealed." Jt will be observed that the restrictions 
 which, before that, excluded \otr only the Legislature- but its cofiimitte'es, 
 were so far modified as to allow the examinations by committees, leaving 
 the point of right, as to either House or the Legislature, just where it was 
 before. The uniform .practice gf the Legislature, and of every Legislatii^e 
 Committee, has heretofore conformed^ not only id this fundamental rule, 
 but to its obvious policy. TJie Act of incorporation and all these modifi- 
 cations were the work of President Elliott, than whom the State has never 
 had a purer or mor^ wise or able servant. He early foresaw and' carefully 
 provided in the charter against the policy of these exposures, because he 
 well knew they would frove ruinous to the business of the Rank. , 
 
 This review of the legislation upon this subject, brings me .now to thle 
 most important and unequivocal act of recognition of this principle, which 
 is to be found in any part of the laws in relation to The Rank. I refer to 
 the Act of 1843, (Stat, at Large, 1843, p 262.) under which this call is 
 made ; it is entitled ^- An Act to restore to each branch of the Legislature 
 the right of inquiring into the- finances of the State." The first clause 
 gives to each House separately the right to make calls for information 
 from the Rank or its Rranches, requiring^ the Rank to furnish what is 
 called for, subject, however, to the second clause, which is in these words 
 of the original charter, viz : . • ' 
 
 "Nothing in this Act contained shalL imply a right tO 'inspect the 
 account of any private individual, body . politic ot corporate, with -the 
 Rank." . -- ^ ^ ' 
 
 ' It will hardly be contended, seriously, that while the whole Legislature 
 has, for thirty-three' years, refused to itself any figlit to inspect these 
 accounts on the books of the Rank, except by -the Comptroller General and 
 its Committees, that due House may have them copied, reported to itself, 
 exposed, and even published. Has one House more power than both 
 united? And can a charter, enacted by both, and amended by both,' and 
 in every act of enactment and amendment requiring tlie concurrent action 
 of both, be rendered null and void and inoperafiye by the separate action 
 of either alone ? . ~ . 
 
 It has been under the faith of this compact in the charter of the Rank, 
 recognized so often in the legislation, and never violated in the practice of 
 the State for thirty-three years, and which is sanctioned as mucb by a 
 wise and sound policy as it is by the 'charter afid practice of the State, 
 that evej-y debtor in the Rank, from its foundation to this hour, has dealt 
 ■with it.' He has had the pron ise of South Carolina, never yet broken to 
 
PRESIDENT OF BANK. 579 
 
 any man, much less to those who are'weak and iiaye no strength but in her 
 justice, that come what may, his accounts shall not be exposed — a promise 
 which expressed no qualification, nor contained any condition authorizing 
 it to be abrogated or set aside. 
 
 It has been suirgested, however,' that the Bank is the Treasury, and t;hat 
 the Legislature is bound to look into the Tresury, and may require every 
 disclosure which it may think proper; and that its discounts afid loans are 
 to be considered -as of the same characj;er as thos6 of the old Loan Office. 
 If the Bank is the Treasury, its charter is nothing. But that charter is 
 not a nullity, and while the Legislature, in it, retained to itself the most 
 ample guards for looking into its operations by the n Comptroller General 
 and its own cotnmittees, it voluntarily stipulated with its cumstomers that 
 it would not violate the sanctity of their accounts by any inspection of its 
 own. The case of the Loan Office cannot be considered as one of this 
 character, nor be confounded with the transactions of a Bank. - There the 
 loans were by the State, made through its own officers. All. the obligations 
 of debt were in the name of and to the State ; but in this case' the trans- 
 actions are with a corporation, whose officers are the trustees of all parties, 
 and are appointed and. sworn to carry out the trust according to the several 
 Acts of charter. These Acts of the eharter have given pledges which it 
 would be as impfolitic as unjust to disregard. , 
 
 With these views I submit the whole matter to the. judgment and direc- 
 tion of the Senate. 
 
 All of which IS respectfully submitted, 
 
 F. H ELMORE, President. 
 " December 15, 1845. 
 
 Extract from the Minutes of the Columbia Branch, ^th December 1824. 
 
 The Board met this day by special summons, to take into consideration 
 a letter from Mr. Elliott, conveying a Resolution of the House of Repre- 
 sentatives. ■ ^ 
 
 Present— W. J. M'yddleton, President, W. C. Preston, Jas. Davis, D. 
 Morgan, W. Hampton, J. M. Howell, M. Antonio, D. Faust, Robt. Stark 
 Thos. Taylor, W. Law. ■ ' ^ 
 
 After reading Mr. .Elliott's communication and the Resolution accompa- 
 nying it, Mr. Preston moved the following Preamble and Resolutions, 
 which ware unanimously concurred in. 
 
 The Board of Directors of this Branc i have no question that the Presi- 
 dent and Directors of the Bank are authorized to^ive orders to the. Presi- 
 dent of this Branch and enforce obedience. The Act of incorporation 
 confers upon them this power, and this Board is not disposed to impugn it. 
 The President of the Bank alone, however, has no such power under ex- 
 isting laws, and if the Act of Incorporation is to be considered as a char- 
 ter, these laws cannot be changed but by consfent of the President and Di- 
 rectors. If it is not a charter, it is at least a solemn Act of the Legisla- 
 ture, which cannot be repealed* by a Resolution of the House o^Repre- 
 
580 SPECIAL REPORTS OF 
 
 sentatives. The President t)f this Branch, therefore, cannot legally recog- 
 nize the extraordinary powers given to the President of the Bank by the 
 Resolution of the 30th November. 
 
 This ResolutioQ, which calls for the accounts of the Directors of the 
 Branches, is also a contravention of that clause of the Act of incorporation 
 which protects the accounts of individuals from exposure. 
 
 The Directors of this Board consider their accounts within the provision 
 of the 42nd clause of the Act of incorporation, and within the exception 
 of the 2nd clause of the Act of 1817, and the provision of the 7th clause 
 of the Act of 1813. The 41st clause of that Act, prescribes the mode of 
 investigating the Bank accounts. This Resolution is also in contravention 
 of these Acts. 
 
 1st. Resolved, tlitrefore, That the officers of this Branch be, and they 
 are hereby, instructed not to expose the accounts of this Bank, in compli- 
 ance with Mr. Elliott's request, made in conformity with the Resolution oi 
 the House of Representatives calling for information of the Legislature. 
 
 2nd, Resolved, unanimously, That this Board affects no concealment 
 which they do not consider their solemn duty under existing laws to pre- 
 serve, and that it is prepared to furnish at all times all information in re- 
 gard to all accounts and transactions of this Branch, when required to do. 
 so by the President and Directors of the Bank. 
 
 3rd. Resol/ved, That the President of the Bank be furnished with a copy 
 of this Preamble and Resolutions. Which was accordingly so done, 
 
 Lai^ on the table in the House. 
 
 (1824.) 
 
 Repwt on the Removal of the Bank. 
 
 The President of the Bank of the State of South Carolina, who was re- 
 quired by a joint Resolution of the Legislature of the State of South 
 Carolina, "to enquire into the expediency and practicability of removing 
 the Bank of the State of South Carolina from Charleston to Columbia, with 
 the view of ultimately establishing, so soon as may be expedient, branches 
 at Cheraw and Hamburg, and to report thereon at the meeting of the en- 
 suing Legislature, taking into consideration the effect which would be thus 
 ptoduced upon the currency of the interior of the State." respectfully 
 
 REPORTS: 
 
 That on the practicability of removing the Bank of the State of South 
 Carolina from Charleston to Columbia, no doubt can be entertained. Every 
 institution of this nature must possess the power of closing its business in 
 a limited period, and of course, transferring its funds whenever the owners 
 of them may deem it nececessary. Circumstances, however, will always 
 increase or diminish the difficulties of its operation. When the funds are 
 to be distributed among individuals, or transferred to another institution 
 
 I 
 
PliESIDENT OF Bx^NK. 581 
 
 in the same neigliboriiood with the one suppressed, no expense and little 
 delay will be incurred, for specialities may be assigaed, when they are found 
 as good, as readily as money. And only the amount and description of 
 the several denominations of notes, bonds, stock or money, may have to be 
 registered and adjusted. But where the funds of a Bank are to be re- 
 moved to a distance, the difficulties increase, because the specialities, iii 
 many cases, may not be removable, but must be collected, and the funds 
 must be transferred only when converted into money. In the present in- 
 stance, that part of the funds of the Bank in Charleston, which consists in 
 notes or specialities due to. the Bunk, is almost exclusively due by persons 
 residing in the city or in the adjacent districts. These jiotes or bonds 
 were given under the expectation that their payment would be demanded in 
 Charleston. Most of them are actually payable in the' city, and in most 
 instances it would suit neither the wishes nor the arrangements of the 
 drawers to have them transferred to Columbia. It would be necessary to 
 collect them where they are legally due, and to remit the amounts when 
 received to the points where they are destined to be employed. This 
 measure, therefore, will produce all the trouble, the delay and expense 
 which attend a final settlement of the affairs of a monied institution, and 
 would appear to be injudicious, unless the objects which call for its adop» 
 tion are of high and paramount importance. 
 
 The expediency of this measure ought, therefore, to be maturely weighed, 
 and must be considered, as directed by the Resolution of the Legislature, 
 under the double view of the influence which the removal of the Bank to 
 Columbia may have on the currency of the State, and on the facilities it 
 should afford for the future establishment of branches at Cheraw and Ham- 
 burg. 
 
 Every Bank that issues paper, and wishes to maintain its credit, while 
 it transacts business as extensively as its capjtal and the calls of the coun- 
 try will justify, must either keep at all times a sufficient quantity of specie 
 to meet the demands which may be made upon it, or must have access to a 
 market where specie may be obtained whenever it may be required, or 
 which shall afford the opportunity of procuring other funds that may be 
 equivalent to specie. In addition to these means, or rather as an auxiliary 
 resource, it ought to possess the power, on any emergency, of calling in such 
 g, portion of its outstanding debts as may relieve it from any temporary 
 embarrassment. In all of these respects a large commercial city offers 
 great advantages. 
 
 1. Through the markets of an important commercial city, specie is fre- 
 quently, if not always passing, and when as an article of commerce it is 
 not in particular demand, it is often deposited in the vaults of the Bank, 
 "and aids them in the circulation of their paper. 
 
 2. When, as an article of commerse, it is passing through the market, it 
 can always be procured by, institutions on the spot at a fair value, and 
 without the expense of agents and commissioners. At particular periods, 
 even the opportunities of purchasing specie occur but rarely, ^nd must be 
 promptly embraced.^ All the institutions which have attempted to import 
 specie on their own account, have found the effort attended with great ex- 
 pense, and some risk. 
 
 3. When specie is demanded from a Bank to any amount, it is in most 
 cases for the purpose of remitting it to some other market. Those who 
 observe the course of business and exchange, can generally foresee when 
 
582 SPECIAL REPORTS OF 
 
 and where funds will be wanted, and by avaiiling theiiiselves of the fluctua- 
 tions of exchange, can provide without loss for nia:By of the calls which are 
 made fo^ specie. In large commercial cities, bills of exchange are. always 
 in the markets at prices r,egulated by the actual operations of commerce. 
 By purchasing them at reasonable prices, available funds can usually be 
 vested in whatever place it appears to be probable that, in the arrangements 
 of commerce, funds will be required. In a town of small or circurascribeyi 
 business, bills of exchange' are' seldom offered for sale, and if wanted, they 
 either cannot be obtained, or can only be dtawn into market by the temp- 
 tation of an extra premium. ^ • ' . 
 
 4. Another very important advantage is,' that a lasrge' portion of the dis- 
 counts made in a commercial city, are of a nature not likely to be perman- 
 ent. They are on notes given in the course of business, for real transac- 
 tions, and Are frequently paid in full at the periods when they became due. 
 Even if these notes should be partially received, yet as they generally have 
 on them the names of persons not at all connected in business, it becomes 
 the interest and the wish of all parties to settle them as speedily as possi- 
 ble. From this cause it happens, that when heavy demands are felt or 
 apprehended, relief may 1be obtained without any unpleasant pressure on 
 the debtors of a bank, merely by ceasing to do new business,' and by re- 
 taining in the coffers of the Bank the money which, during each week, is 
 paid on the notes which have become due. Thus, in the summer of 1819 
 a large amount was collected by the Bank of the State of South Carolina', 
 in Charleston, without any distress to the. public ; and those who Temem- 
 ber the misfortnes of that year will readily recollect how much those mis- 
 fortunes would have been aggravated, if a general call -for payment had 
 been made by all of the Banks. 
 
 It is believed that much evil. was averted by the course which tl\is "very 
 Bank pursued, and yet that system could nol; have been adopted, unless its 
 local position, in addition to the precautions of its managers, had enabled 
 it to provide means to meet the claims which were made upon it. It is 
 necessary to add, that in a towrt not extensively commercial, this silent but 
 efficient resource cannot be found. , 
 
 It therefore appears evident,- that in. a place of comparatively' small 
 business, where few of those adventiti6us aids occur, a Bank must either 
 reduce its business very much, or" must incur a very considerable expense 
 to maintain its credit, either of which must consequently reduce its income ; 
 or if it should neglect these precautions, it must hazard perpetually the 
 loss of its credit, and the consequent depreciation of its paper. 
 
 It is unwise to suppose, as has sometimes been done, ^hat' a Bank, by a 
 removal from a commercial or seaport town, will be removed also from all 
 applications for .specie. If specie, as an article of commerce, is really 
 wanted, neither the distance nor the expense of removing it from Columbia 
 to Charleston will cause any diminution in the demand. In 1819 and 
 1820, specie was called for in Ohio and Kentucky, and transferred to 
 Philadelphia. But even if it were to be presumed that the distance inter- 
 posed some obstacle, another evil might occur, and we might have to ap- 
 prehend that the bills of such a Bank would be refused in the commercial 
 cities, where they could not be made to answer tlie purposes of the holder, 
 and from that cause alone they would inevitably depreciate. The very ap- 
 prehension that a removal was made to avoid specie claims, would pro- 
 duce this effect. 
 
 I 
 
PRESIDENT OF BANK. 583 
 
 It is presumed in this enquiry, that the State will not be willing, certain- 
 ly cannot desire, to have the bills of this Bank discredited, or to sec th^m 
 circulate at a depreciated value. The States where a depreciation of cur- 
 rency has occurred, have been exposed -to many inconveniences. All ard 
 now anxiously endeavoring to place the paper of their banks on a solid 
 and permanent basis. It is, therefore, unnecessary to state the inconveni- 
 ences whicli would result from such a meastire. But a confident expecta- 
 tion is entertained, that having surmounted the difficulties which beset us 
 in 1819^20 and '21, they will not be voluntarily encountered at this late 
 period." 
 
 These observations are candidly made, not because the resolutions of 
 the Legislature would seem to sanetion any belief that it was the wish or 
 intention of that body to exposfe or hazard, in the slightest degree, the 
 credit of the currency of the State; but because many individuals, some 
 of them men of great integrity and experience in business — some men, 
 on whose judgments much reliance ought to be placed, have expressed such 
 an opinion, and maintained', that -as long as the paper of the Banks of 
 Georgia and- North Carolina continues at a depreciated standard, the State 
 ought, in justice to its own institutions, to adopt a similar system, It -is 
 true that the state, of the currency in the a-djoining States for the last 
 four years, has thrown a heavy burden on the Banks of this State. They 
 have been obliged to furnish nearly all the specie balances which, iti that 
 period have been remitted from the Southern to the Northern States; 
 they have virtually furnished funds to pay nearly all the revenue which 
 the Government of the United States has collected in the south-eastern 
 division of the Union, and the exertions which they have made to sustain 
 the credit of their paper, seems only (perhaps necessary for th6 condition 
 of the currency in the adjoining States,) to have increased the demand 
 upon them. But they have derived some compensation in the extended 
 circulation of their bills, aiKl some anxiety is therefore felt that the Bank 
 of the State of South Carolina should be permitted to remain where the 
 means of preserving the credit of its paper are most easily, cheaply, and 
 extensively to be procured. " 
 
 It remains then to enquire, what focilities the removal of the Bank from 
 Charleston to Columbia would afford for the future establishment of 
 tranches at Cheraw and Hamburg? 
 
 That the removal of the Bank would increase the capital at Columbia is 
 certain ; and for a time some advantages would be given tb the commerce 
 of this place. But even these advantages must cease if that capital should 
 be, as suggested, transferred to other Districts, and it may be doubted 
 whether the a^comtnodation given to Columbia, by the present arrange- 
 ,ments of the Bank, is not more beneficial than its actual removal. During 
 the last season, nearly, if not all of the good drafts offered in Charleston, 
 were discounted by the Branch at Columbia, and sent to the parent Bank 
 for collection ; and for some months much of the funds of the institution 
 yfBTG applied to this object ; because it caused the payment of large suins 
 into the Bank at Charleston, when at times such payments are important. 
 To the merchants' and planters in and around Columbia, this operation was, 
 in many instances, more convenient than a discount on notes ultimately 
 payable in Columbia, as it enabled them to draw funds from Charleston 
 without trouble or expense. Many have expressed an anxious wish that 
 ihe system should be extensively pursued. But a Bank placed in Colum- 
 
584 SPECIAL REPOKTS OF 
 
 bia, without a branch in Charleston, could not engage in such transactions 
 without connecting itself with some other institution in that city. 
 
 On the other commercial towns in this State, Camden, Hamburg, Che- 
 raw, the disadvantageous effects of this removal can scarcely be questioned. 
 Charleston is, and perhaps must forever be, the commercial emporium of a 
 large extent of country, comprehending all those Districts of South and 
 North-Carolina connected with the waters of the Santee and Peedee rivers, 
 and probably much of the country drained by the Savannah river. The 
 business of Charleston must increase with the population, the wealth, and 
 enterprise of this whole District ; and if the inhabitants of Charleston view 
 their own interests correctly, it seems unquestionable that they would re- 
 joice in the prosperity of every commercial town throughout that tract of 
 country, and would promote by every practicable means, the extention and 
 the activities of their commerce. It appears to be a causeless jealousy 
 which apprehends injury, if not ruin to Charleston, from the increase of the 
 retail trade of the towns in the interior country. Much as the decline of 
 a particular trade in that city, and the depreciation in the value of the 
 property connected with that trade may be lamented, it was scarcely to be 
 expected that the inhabitants of the upper Districts would . continue long 
 to travel one, two, or three hundred miles, for the supply of every petty 
 want. It is from other sources that Charleston lijust derive her wealth. It 
 is not by her retail trade 4hat Liverpool has become a great emporium in 
 England, but because she sends abroad the productions of Manchester, 
 Leeds, Birmingham, and the hundred manufacturing towns of the adjacent 
 countries, and supplies them from abroad with the materials which their 
 manufactures and the commodities which their consumption necessarily 
 demands. No one will suppose that the trade of Liverpool would increase if 
 their large trading and manufacturing towns should be destroyed, and the 
 consequently diminished population of the country compelled to resort to 
 Liverpool for the supplies of her most trivial wants. With the growth of 
 these towns her own prosperity has advanced, in their commerce her in- 
 creasing wealth has found employment and profit. 
 
 It is not by a retail trade that New- York has become the great commer- 
 cial emporium of the United States, but because she supplies hundreds of 
 towns connected with her in business with the, articles which are consumed 
 in their respective neighborhoods, and sends abroad the surplus produc- 
 tions of their soils. 
 
 Upon the same principles, if on a smaller scale, Charleston seems des- 
 tined to be the commercial emporium of a certain District of country, and 
 it must be obvious that her prosperity must increase with the prosperity of 
 that country, as long as she imports the groceries that the inhabitants of 
 that District consume, much of the apparel that they wear, and all of the 
 other foreign productions that they require, and exports in return the pro- 
 duce of their farms and of their labor; it is her interest that this District 
 should be crowded with inhabitants, animated with the commercial activity 
 which towns excite, and abounding in wealth. From their mutual inter- 
 course she will derive riches, and in the arrangements of that intercourse 
 her inhabitants will find employment. She will therefore pursue her true 
 and enlightened policy, by promoting the welfare, not of one spot, but of 
 every portion of this district of country ; and it will be her interest to aid 
 every rising town, and every important enterprize within the sphere of her 
 commercial operations. The Directors, therefore, of a Bank in Charleston, 
 
PRESIDENT OF BANK. 585 
 
 must, if they feel as citizens of Charleston, be anxious to give, as far as 
 their power extends, assistance to every place within that circle ; and the 
 Directors of a public institution, such as the ]>ank of *he State of South- 
 Carolina, would, it is to be presumed, readily and impartially grant to any 
 adversary of our inland towns which may be well located and may appear 
 likely to flourish, a branch of that institution, as soon as its means would 
 enable them to establish one, and would afford to such branch as much cap- 
 ital as they could possibly spare. They could have no interest in favoring 
 onespot, and neglecting another. What difference, for instance, would it 
 make to the commerce of Charleston, (to speak on general principles, and 
 not as individuals may be affected) whether the business of Lancaster and 
 Chesterfield and the adjacent districts of North-Carolina, should be trans- 
 acted at Cheraw or Camden ? The same demand, in either case, would be 
 made on the Charleston market, and the same supply furnished. What 
 difference would it make whether the business of Fairfield, Chester, Union, 
 York, &c., should centre in Camden or Columbia ? To the inhabitants and 
 commerce of Charleston, the result would be precisely the same. But to 
 the inhabitants of Columbia, would there be no difference? In the interior, 
 the towns in the same neighborhood, or in t1ie same geographical parallel, 
 stand as rivals to each other. Each strives to attract and monopolize the 
 business of as extensive a portion of the adjoining country as possible. 
 Each is very much and very naturally disposed to consider every accession 
 of funds to the trading capital of its neighbors, as so much probably de- 
 ducted from its own means, and the business transacted in their markets as 
 so much irrevocably withdrawn from the sphere of its own attraction. The 
 produce carried to Hamburg or Camden can by no reaction revert to 
 Columbia. The commerce once fixed in those places, can, but with diffi- 
 culty, be recalled. It is, therefore, an almost inevitable-conclusion, that the 
 inhabitants of Columbia cannot feel interested in promoting the commercial 
 prosperity of these rival towns ; that the facilities she must afford, she would 
 afford reluctantly ; that the funds she might be compelled to spare, would 
 be distributed with hesitation and delay. 
 
 It therefore appears that the interest of the State, at large, requires the 
 continuance of the Bank of the State of South-Carolina at Charleston . 
 
 Because, in that city it could most easily, cheaply and certainly procure 
 means to support the credit, and extend the circulation of its paper. 
 
 Because it- could transact a great deal of that business which leaves a 
 Bank in possession of a portion of its funds, or enable it to recall them 
 whenever circumstances require their collection. ' 
 
 Because it offers to Columbia, in its present position, many advantages 
 and facilities which perhaps would not be incurred by the removal of the 
 Bank itself 
 
 And because the other rising towns in Carolina, Camden, Cheraw, Ham- 
 burg, will be cherished from motives even of local and personal interest, as 
 the inhabitants of Charleston must perceive that the commercial prosperity 
 of their own city, would be promoted by every act which extends the .com- 
 merce of any or every portion of that country to which she must be the 
 emporium or distributing market. To every rising town in that District 
 she would grant funds readily, liberally, and impartially, as she would re- 
 main the great centre of their business — the reservoir into which the streams 
 of their commerce must necessarily flow. To Charleston these towns 
 would be considered as affiliated communities — to Columbia they must 
 stand as rivals. All of which is respectfully submitted. • 
 
 STEPHEN ELLIOTT. 
 74 
 
REPORTS 
 
 OF 
 
 COMMITTEES OF WAYS AND MEANS. 
 
 In the House of Representatives^ Dec. 5, 1817. 
 The Committee of Ways and Means, to whom was referred the Report 
 of the President and Directors of the Bank of the State, beg leave to 
 report : — That they are unwilling to omit this opportunity of expressing 
 their approbation of the manner in which the Bank appears, by the report, 
 to have been conducted. The dividend of $76,507 91, which has been 
 paid into the treasury of the Lower Division, affords the best evidence within 
 the power of your Committee, of the able manner in which that institution 
 has been managed. The purchase of the banking house appears to have 
 been necessary, and your Committee have every reason to induce them to 
 approve of all the measures adopted to effect that purpose. 
 
 In tJte House of Representatives^ Dee. 13, 1820. 
 The Committee of Ways and Means, to whom was referred a Bill to re- 
 peal the second clause of an Act, entitled "An Act to prohibit the issuing 
 of bills or negotiable notes under the denomination of one dollar, and for 
 other purposes therein mentioned," report. That they have had the same un- 
 der consideration, and recommend, that the Act alluded to be not repealed ; 
 but as they believe that serious inconveniences have been suffered by the 
 citizens of this State, for want of a specie circulation, or small bills as a sub- 
 stitute therefor, and as they are satisfied that great profit would accrue to 
 the Bank of the State by issuing a larger amount of bills of a small denomi- 
 nation, they recommend that the President and Directors of the Bank of 
 the State of South Carolina, be required to issue and keep constantly in 
 circulation a sum not less than one hundred thousand dollars of bills under 
 the denomination of one dollar ; and the said President and Directors are 
 further directed to put in circulation, in the Upper Division of the State, 
 the sum of eighty thousand of the above amount. 
 
 (1821.) 
 Report from tJw Committee of Ways and Means'^ 
 The Committee of ways and means, to whom was referred the Repiort of 
 the President of the Bank of the State of South-Carolina, beg leave to re- 
 port : That they have taken the same into consideration, and deem it in- 
 expedient at this late period of the session, to call the attention of the House 
 to the many and various financial views embraced in that Report. They 
 conceive that the Report will remain as a valuable record on the Journals 
 of the Legislature, to guide its future policy in relation to the Bank, which 
 is annually becoming an object of increasing interest and solicitude with 
 the State. 
 
 JAMES HAMILTON, Jr. Chairman. 
 December 18, 1821. 
 
 I 
 
OF WAYS AND MEANS. 587 
 
 House of Representatives^ Dec. 5, 1823. 
 The Committee of Ways and Means, to whom was referred the Resolu- 
 tion directing an inquiry to be made, whether it was the intention of the 
 Legislature, in creating five and six per cent, stock by the Acts to raise 
 supplies in the years 1821 and 22, that the certificates of stock, when trans- 
 ferred, should be countersigned by the Comptroller General, report. That 
 they have examined the same, and are of opinion that it was the intention 
 of the Legislature that all issues of stock, either in the first instance or by 
 transfers, were to be countersigned by the Comptroller Greneral ; but in 
 consequence of that officer residing in Columbia, and the uncertainty wheth- 
 er ComptroUors elected in future will reside in Charleston, your Committee 
 recommend that the Acts to raise supplies for the years 1821 and '22, be 
 so amended, that in future all issues or transfers of stock shall be counter- 
 signed by the President of the Bank of the State of South Carolina for the 
 time being. 
 
 (1823.) 
 
 The Committee of Ways and Means, to whom was referred the Report 
 of the President and Directors of the Bank of the State of South Carolina, 
 and with it the statement of the Sinking Fund, beg leave to report : That 
 they have had the same under consideration, and given them the attention 
 which the importance of the subjects so deservedly requires ; and after ma- 
 ture reflection, are.of opinion, that it is, at this period, inexpedient to in- 
 crease the capital of the Bank. It is deemed proper, however, to state, that 
 the expression of this opinion is founded on the fact, that there are no 
 means in the power of the State to increase the capital of the Bank, but by 
 creating stock, at an interest payable quarterly. If the State had at its 
 disposal a full Treasury, and a question to increase the capital of the Bank 
 was agitated in your Committee, an expression of a different opinion might 
 be the result. 
 
 When to increase the capital of the Bank it becomes necessary to create 
 stock, it is, to say the least, but a doubtful question, whether in the end it 
 will prove sufficiently advantageous to the State to hazard the experiment. 
 It must be recollected, that not only the capital of the Bank, but the faith 
 of the State is pledged ; consequently the property of every individual is 
 more or less bound for the redemption. The security of the holder is be- 
 yond a doubt, whilst on the other hand, the State is, by its banking opera- 
 tions, loaning to individuals, the security of which is liable to, and can be 
 affected by mismanagement, corruption, depression of property, by war, and 
 many other circumstances. Your Committee do not pretend to deny, that 
 the issue of the bills to the amount allowed by the Charter, as well as the 
 privilege of discounting notes to treble the amount of its capital, has yield- 
 ed not only a sufficiency to meet its losses, but to declare considerable divi- 
 dends, as has been evinced by the statement of the Bank of the State. Yet 
 considering the pressure which is now felt by every class of the community, 
 the perfect security of the one, and the uncertainty of the other, have come 
 to the decision on this subject as already expressed. 
 
 Of the propriety of the legislature incorporating private Banking insti- 
 tutions in the commercial towns in the interior of the State, your Commit- 
 tee would refer you to so much of the Report of the President and Direc- 
 tors of the Bank, as relates to this subject, and leave the expression of opin- 
 ion to the decision of the Legislature. • 
 
588 llEPORTS OF COMMITTEES 
 
 To the propriety and policy of making it an established custom, of ap- 
 pointing a Joint Committee of both Branches of the Legislature, at each 
 session, to inspect the books and examine the operations of the Bank and 
 its Branches, your Committpe are decidedly opposed. It must be satisfac- 
 tory to the President and Directors, who have so faithfully discharged their 
 duties, that an investigation of their conduct might be made as often as the 
 Legislature shall see fit. But to the propriety or advantage, there are 
 many objections. These examinations, from a variety of circumstances, 
 can be of little advantage. The distances of the mother Bank and its 
 Branches, and the time it would necessarily take to proceed from one to the 
 other, and to examine the concerns correctly, would be a labor of such an 
 extent, that it would be totally out of the power of any Committee to de- 
 vote the time to that examination, which is deemed necessary should be 
 given, either to prevent being lulled into false security, or to ensure satis- 
 faction either to the Legislature, or the community. Your Committee are 
 fully aware, that if Committees are to be appointed, it would be preferable 
 that a permanent law to that effect s^hould be enacted, as appointments 
 otherwise create in the public- opinion, bo^h at home and abroad, distrust in 
 the credit of the institution. It is however deemed necessary, that the 
 transactions of the Bank should at times bo examined, and if any aberra- 
 tion in the management of its affairs, it should be made known to the Lc- 
 lature. Your Committee beg leave to recommend that the charter of the 
 Bank of the State of South Carolina be so far amendgd as to allow the 
 Comptroller G-eneral a seat at the Board of Directors, at the mother Bank 
 and its Branches, and to make it his duty to attend from time to time, and 
 as often as he can make it convenient examine the books (and the vaults if 
 he shall deem it necessary.) and shall annually report to the Legislature 
 any impropriety or mismanagement which may have passed under his 
 notice. But in no instance shall the Comptroller General be either allow- 
 ed to vote, or permitted to express an opinion on any subject before the 
 Board. 
 
 CHARLES JOHN STEEDMAN, Chairman. 
 
 In the House of Representatives^ Dec. 3, 1 824. 
 
 The Committee of Ways and Means, to whom was referred the Report 
 of the President and Directors of the Bank of the State of South Carolina, 
 in regard to the operations of the Bank for the past fiscal year, respect- 
 fully Report^ That they have examined the same, and find that the pro- 
 ceeds of the Bank for the past year, amounted to one hundred and sixteen 
 thousand three hundred and fifty dollars 58-100; that this amount has 
 been transferred to the credit of the Sinking Fund, agreeably to the pro- 
 visions of the Act of Assemb'y upon the subject ; and that the aggregate 
 amount of that fund, in October last, (the time to which the Report is 
 brought,) was two hundred and fifty-three thousand sixty-seven dollars and 
 57-100, subject, of course, to the payment of the interest which may ac- 
 crue during the ensuing year upon the five and six per cent, stock of tho 
 State. 
 
 A Report of the Committee of "Ways and Means upon the finances of 
 the State, made the 11th of December, 1829, touches slightly upon the 
 
OF WAYS AND MEANS. 589 
 
 Bank ; expressing the belief that the Bank will be able to pay off the pub- 
 lic debt as it comes due. The Report is mainly upon other topics, and is 
 therefore omitted. 
 
 (1830.) 
 
 The Committee of Ways and Means, to whom was referred the Report 
 of the President of the Bank, and the Report of the Comptroller General, 
 respectfully Report : 
 
 That they have considered the financial situation of the State, as exposed 
 by these documents, with all the care and deliberation the importance of 
 the subject demands ; and although the conclusions deduced by the Comp- 
 troller from the statements made by the Committee, of Ways and Means 
 the last year, are certainly correct, your Committee believe that his report 
 does not entirely disclose the financial resources of the State, or the true 
 capacity of the Bank to meet the calculations upon which the taxes were re- 
 duced. All the calculations of the Comptroller appear to rest upon the 
 assumption: 1st. That the Bank, with the Sinking Fund, after paying the 
 interest upon the debt of the State, amounting to $85,500, would leave a 
 surplus of only $25,000 to be carried to the Sinking Fund ; and 2d, that 
 all the other resources of the State will be inadequate to meet its expenses. 
 Your Committee will consider these propositions in their order. 
 
 The first question .which will occur, in considering the resources of the 
 Bank, will be, what, in reality, is its banking capital ? It has been custom- 
 ary, in the reports submitted to the Legislature, to consider the original 
 capital of the Bank, consisting of $1,196,220, as its only banking capital; 
 and all the calculations of its profits have been based upon this supposition. 
 Hence the common error that the profits of the Bank have been enormous. 
 The truth is, that the Sinking Fund, forming at this time a permanent and 
 increasing deposit of $389,667, has all along been a portion of the capital, 
 upon which the Bank has carried on its operations. In all calculations, 
 therefore, upon the future operations of the Bank, this fund piust be taken 
 into consideration as a source of profit, or the purpose for which it is de- 
 posited with the Bank, will not be accomplished. 
 
 Considering, then, the Bank capital and the Sinking Fund as the source 
 of banking profit, the question will occur, what amount of profit, under a 
 prudent and energetic course of administration, may the Bank be expected 
 to realize ? Your Committee will not disguise the fact, that their calcula- 
 tions are not based upon the operation of the Bank, as it has been conduct- 
 ed for some years past. Although safely and prudently conducted, its 
 energies have been cramped, and its profits curtailed, by the system of 
 nominal renewals. It would appear to be obvious, that if a Bank throws 
 its paper into circulation, and does not by a vigorous system of discounts, 
 call a sufficient portion of it in, at short and stated periods, to meet the 
 drafts of other Banks, and the demands of individuals, its issues must 
 either be exceedingly limited, or it must exhaust its capital in redeeming 
 its paper. The former effect has actually been produced upon this Bank. 
 For several years past, the amount of its paper in circulation, has been 
 little more than its permanent capital. In order that the views of your 
 Committee may be more clearly seen, they will take the situation of the 
 Bank as it exists at present, by which to test their observations. 
 
 The Bank capital consists of. ,_. $1,156,318 
 
 The Sinking Fund of. _ •389,667 
 
590 REPORTS OF COMMITTEES 
 
 The average amounts of deposits which is usually banked 
 upon, or is equivalent, at least, to so much of the Bank's 
 paper in possession, is — 365,000 
 
 Making in Bank $1,910,98^ 
 
 The amount of Bank notes issued of and over one dollar, is $ 1 ,600,000 ; 
 of which $500,000 are usually in Bank, leaving in circulation, $1,100,000; 
 and if from this balance be taken $345,000 of one and two dollar bills, 
 rarely the subject of exchanges with other Banks, the whole amount in 
 circulation for which the means of exchange must be provided, will be 
 only $755,000. Here then is a capital in Bank to the amount of $1,910,- 
 985. and the whole amount of paper for which the means of exchange must 
 be provided, is $755,000. Can it be doubted, if these facts be correct, 
 that the Bank can sustain a much larger issue, or that the limited amount 
 of paper it has in circulation must be occasioned by its tardy and nominal 
 renewals ? The effect of a more vigorous system of operation, it appears 
 to your Committee, may be affirmed, from the experience of the last year. 
 Larger reductions upon renewals have been demanded, and the result has 
 been, an increase of specie in the vaults of the Bank, and a balance against 
 the XJnited States Bank of one hundred thousand dollars, at a season of 
 the year when the deposits from the taxes are abstracted ; whilst the nett 
 profits of the Bank have exceeded the ordinary income by six thousand 
 dollars. These facts, which your Committee believe to be undoubted, whilst 
 they evince the capacity of the Bank, disclose, also, that its operations 
 have hitherto been too sluggish, and that its issues are too small A con- 
 tinual balance against no Baijk is desirable. All that an institution of this 
 kind should seek for or attain, is to keep on an equality with its sister in- 
 stitutions. 
 
 It cannot be said that there is no demand for an additional issue through- 
 out the State. The commercial interests of the interior, cannot now be ac- 
 commodated, from the want of a sufficient circulating currency ; and the 
 petitions made to the Legislature for the incorporation of Banks, do not 
 proceed from the mere spirit of speculation. A depreciated currency from 
 the Banks of Georgia, is used from necessity as a circulating medium ; 
 whilst merchants of the first respectability and credit, are often shackled 
 in their. operations, from the incapacity of the Bank to accommodate them. 
 
 Your Committee, therefore, beg leave to submit the calculation marked 
 A, annexed to this report, based upon the supposition that the Bank issues 
 $300,000 more paper than it now has in circulation, and that it makes six 
 per cent, profit upon this issue ; from which it will appear, that it is by no 
 means extravagant to suppose, that nearly the whole public debt will be 
 provided for, as it becomes due. 
 
 The other proposition of the Comptroller, is, that the ordinary income 
 of the State under our reduced taxation, will be inadequate to her expendi- 
 tures. It is true that our excess of expenditures, over our income from 
 the Treasury, the last fiscal year, has been seventeen thousand dollars ; but 
 your Committee believe that there were demands upon the Treasury, du- 
 ring this period, which will not be included in our ordinary expenditure. — 
 Upon the following items alone, it is believed that the following amounts 
 will be saved from the appropriations of the last year. 
 
OF WAYS AND MEANS. 591 
 
 Internal Iprovement $16,000 
 
 Public Buildings 15,000 
 
 Census, Lunatic Asylum, and Fire in Camden 8,000^ 
 
 Making an aggregate of $39,000 
 
 This amount will probably supply the deficiency of the last year. 
 Your Committee will also beg leave to express their opinion, that the 
 amount of money expended by the system of free schools, is in no propor- 
 tion to the benefit dispensed. The system ought either to be revised, so 
 that a more efficient and responsible application of the large amount of 
 $40,000 annually, shall be secured, or it ought to be entirely abolished. — 
 As now administered, although not without some benefit, it is a system of 
 irresponsibility, extravagance, and waste, and the money had better either 
 be left with the people, or applied to the payment of our debts. 
 
 In taking a view of the financial resources of the State it may not be 
 improper to bring to the attention of the House, those debts of a large 
 amount due the State, which will probably be recovered, and in a few years, 
 will form a part of our financial resources. 
 
 Debt due by the United States . $200,000 
 
 Sale of Hamburg 30,000 
 
 Bonus of the Union and Planters' & Mechanics' Bank. 50,000 
 
 Making the aggregate of> $280,000 
 
 Your Committee have thus been elaborate in their report, to justify their 
 opinion, that it would be inexpedient to raise the taxes upon the people, or 
 to provide other means than those we now possess, until a few years shall 
 disclose more clearly what are the resources of the State, to meet her debt. 
 Under the present aspect of affairs, they appear to your Committee to be 
 adequate to her wants. Time will prove whether your Committee are er- 
 roneous in their calculations : and time will bring also the capacity to rec- 
 tify them, and to sustain the credit and honor of the State. 
 
 AH of which is respectfully submitted. 
 
 K. B. SMITH, Chairman. 
 
 TABLE A. 
 
 Amount of profits for the year 1830 $131,000 
 
 Amount of income from additional issue of $300,000 1 8.000 
 
 This amount will be chargeable with $1 49,000 
 
 Paying interest on 6 and 5 per cent, stock $85,500 > q^ ^^^ 
 
 Profit and loss account- . _ 10,500 ] yo,uuu 
 
 To be carried to the Sinking Fund annually 53,000 
 
 1831 This amount to Sinking Fund $53,000 
 
 1832 Proceeds of this fund at 6 percent 3,180 
 
 Annual profits of the Bank 53,000 
 
 $t09,180 
 
592 REPORTS OF COMMITTEES 
 
 $1*09,180 
 
 1833 Proceeds of this fund ^ 6 550 
 
 Annual profits of the Bank 53 000 
 
 $168,730 
 
 1834 Proceeds of this fund _ 10,123 
 
 Annual profits of the Bank — _ ."_: 53,000 
 
 $231,853 
 
 1835 Proceeds of this fund 13,911 
 
 Annual profits of the Bank 53,000 
 
 $298,764 
 
 1836 Proceeds of this fund 17,925 
 
 Annual profits of the Bank 53,000 
 
 $369,689 
 
 1837 Proceeds of this fund _._ 22,181 
 
 Profits of the Bank _._ 53,000 
 
 $444,860 
 
 1838 Proceeds of this fund __._ 26,601 
 
 Profits of the Bank 53,000 
 
 ^$524,551 
 
 1839 Proceeds of this fund 31,473 
 
 Annual profits of the Bank . 53,000 
 
 $608,924 
 
 Profit and loss on this amount, discount on Sinking Fund, ) . . ^-^^ 
 
 viz: $2,812,000-.- \ ^^'"^" 
 
 $594,864 
 Sinking Fund now created 304,167 
 
 $899,031 
 To pay off 6 per cents, due in 1840 800,000 
 
 Sinking Fund to redeem 5 per cents $99,031 
 
 1840 Annual profits of the Bank 84,000 
 
 $183,031 
 
 1840 Proceeds of this fund : 10,981 
 
 Annual profits of the Bank 84,000 
 
 $278,012 
 1841 Proceeds of this fund to redeem 5 per cents 200,000 
 
 $78,012 
 Profit and loss account 2,312 
 
 $75,700 
 
OF WAYS AND MEANS. 593 
 
 1842 Proceeds of this fund.._<. 4,542 
 
 Annual Profits of the Bank 84,000 
 
 $164,242 
 
 1843 Proceeds of this fund 9,854 
 
 Annual profits of the Bank ^ 84,000 
 
 $258,096 
 
 1844 Proceeds of this fund . 15,485 
 
 Annual profits of the Bank. ._. 84,000 
 
 $357,581 
 To redeem 5 percent, stock --^-''- 250,000 
 
 $107,581 
 
 1845 Proceeds of this fund ..... 6,454 
 
 Annual profits of the Bank 83,000 
 
 $198,035 
 To redeem 5 per cents 300,000 
 
 Deficit to be advanced by the Bank, and repaid from the > ^^qj ggg 
 profits of the year 1846 ^ ) ' 
 
 (1831.) 
 Heport of the Committee of Ways and Means. 
 
 The Committee of Ways and Means, to whom was referred the Report 
 of the President of the Bank, and the Report of the Comptroller General, 
 and also so much of the Governor's Message as relates to the Finances, 
 respectfully report, 
 
 That in submitting their report the last year, upon the financial resources 
 of the State, they could neither have intended useless reflections upon the 
 Comptroller General, or to extend instructions or directions to those who 
 govern the Bank. Neither self-respect, nor a sense of duty, would have 
 justified such a course. The Comptroller had recommended that the taxes 
 should be raised upon the people ; and the report of your committee was 
 made for the purpose of showing, that with the resources possessed by the 
 State, it was inexpedient at that time to adopt this remedy, which nothing 
 but the clearest and most absolute necessity can ever justify. The object 
 of the report is disclosed in its concluding words, " Your committee have 
 thus been elaborate in their report, to justify their opinion, that it would 
 be inexpedient to raise the taxes upon the people, or to provide other means 
 than those we now possess, until a few years shall disclose more clearly 
 what are the resources of the State to meet her debts. Under the present 
 aspect of affairs, they appear to your committee to be adequate to her 
 wants. Time will prove whether your committee are erroneous in their 
 calculations, and time will bring also the capacity to rectify them,^and to 
 sustain the credit and honor of the State." 
 75 
 
594 REPORTS OF COMMITTEES 
 
 When tlie taxes were reduced in 1829, tlicy were notjrcdiiced until after 
 a full and elaborate consultation with the President of th<} Bank, the late 
 Mr. Stephen Elliott. The Committee of Ways and 'Means hud but two 
 sources of information, as to the resources and capacity of the Bank — the 
 reports of the biennial committees appointed by the Legislature to investi- 
 gate its affairs, and the communications, written and verbal, of the Presi- 
 dent. From the former, they learned the soundness of this institution — 
 from the latter, they were informed of its capability; and this Committee, 
 assuredly, would not have recommended a reduction of the taxes, had they not 
 been supported by the illustrious individual who presided over the Bank, 
 in the opinion, that the Bank was fully capable by its resources of meeting 
 the payment of the public debt as it should become due. The subsequent 
 President, Mr. Thomas Bennett, coincided with Mr. Elliott and the Com- 
 mittee of Ways and Means, in this opinion. If, therefore, your Committee 
 have erred, they have erred in common with the two able financiers, who 
 have lately presided over the Bank. But youv committee do not believe 
 that they have erred. Their calculations may have proved fallacious, from 
 causes then not developed or known, (certainly not communicated to your 
 committee,) but with the information they possessed, those calculations 
 were sustained by the soundest principles of banking. The distinguished 
 and faithful public officer, who now presides over the Bank, does not doubt 
 the capacity of the Bank to fulfil the expectations held forth by your com- 
 mittee, in paying by its resources, the whole of the public debt, were it 
 not for the causes'he assigns — " My surprise and disappointment cannot be 
 described at finding how difficult it was to call in payments, even on the 
 operative paper which had been long in Bank. For, before I went into 
 office, I had always supposed that Bank debts must be paid, (by those 
 who had property) whenever demanded, or that, at all events, the instan- 
 ces to the contrary were very few." " I found in a short time, from the 
 operations of the Bank, and the calls made by the United States Bank, 
 that the lowest amount of issues which had been proposed, exceeded the 
 safe limit." Now, neither of these difficulties were communicated or 
 known to your committee. They were aware of the system of nominal 
 renewals which existed in the Bank, and, therefore, as a part of their ope- 
 ration to sustain the larg< r issue, they suggested the necessity, of larger 
 payments upon the renewals ; but inability of obtaining these payments 
 was not suggested to your committee, because, we presume, it wa& not 
 ascertained. Nor was the United States Bank, as a disturbing cause to 
 the operations of the Bank, either intimated by the President of the 
 Bank or the Comptroller General. On the contrary, a large balance of 
 $100,000 was reported by the President to exist against this Bank; and 
 under the course of its administration, no doubt was suggested of the 
 entire independence of our State institution of its operations. If this 
 "was not the case, it was the duty of the President and the Comptroller 
 General to have communicated the fact to the Legislature. Their reports, 
 however, contain no such suggestion ; and in the objections urged before 
 your committee the last year by the Comptroller, against the views of your 
 committee, they are not aware that the United States Bank was even men- 
 tioned. No doubt was ever entertained of the powers of the United 
 States Bank to cripple or destroy the local Banks of the State ; but the 
 testimony of Mr. Biddle before the Senate of the United States, and the 
 professions of its officers generally, in connection with its course of busi- 
 nessj induced the belief; that for some years past, at least, its practice had 
 
 a 
 
OF WAYS AND MEANS- 595 
 
 been far short of its powei^s, and that the public good had been a motive 
 in its operations. . If it has changed it^ coiyse during the last year, it 
 could scarcely have been expected; and if it Jias. now commenced the 
 accomplishment " of that object, so. often hinted at by its stockholders, of 
 standing alone in society,'-' it may become tlie duty of the State, not only 
 to inquire by what authority it conti'ols the finances of the State, and the 
 property of her citizens, but to drive every citizen of the State from its 
 support. 
 
 The Comptroller, in his report, submitted at the present sitting of the 
 Legislature, whilst reviewing the innumerable errors of your committee, 
 in their report of the last year, notices, indeed, the difficulty of obtaining 
 large payments upon discounts, and the influence of the United States' 
 Bank upon our State institution. • If the report had stopped here, your 
 committee would not hgive been disposed to question the soundness of the 
 Comptroller's suggestions, although they "would have been more beneficial 
 the last year. But he attempts, in a labored effort, to impugn the report 
 of your committee upon the general principles of banking, to which alone 
 your committee could resort, with the information communicated to them. 
 As these principles, in the present situation of the finances of the State, 
 cannot be made ■ too familiar to the House, from a regard to them, your 
 committee beg leave to submit' a few observatiqns on their report of the 
 last year, and on the Comptroller's criticisms. 
 
 The proposition put forth by your committee, was this, that a Bank, 
 situated like that of the State of South Carolina, with the aid of Branches, 
 could maintain, in actual circulation, one-half as many notes as it had 
 banking capital. This proposition is contained in the following words — 
 "In order that the views of your committee may be more clearly seen, 
 they will take the situation of the Bank,, as. it- exists at present, by which 
 to test their observations." 
 
 The Bank capital consists of.-__ $1,156,318 
 
 The Sinking Fund of- _ 389,667 
 
 The average amount of deposits, which is usually banked upon, 
 or is equivalent at least to so much of the Bank's paper in pos- 
 session, is _ _. 365,000 
 
 $1,910,985 
 
 " The amount of Bank notes issued of and ov6r one dollar, is $1,600,000 ; 
 of which $500,000, are usually in bank, leaving in circulation $1,100,000; 
 and if from this balance be taken $345,000 of one and two dollar bills, 
 rarely the subject of exchanges with other banks, the whole amount in 
 circulation, for which the means of exchange must be provided, will be 
 only $755,000. Here then is a capital in Bank, to the amount of paper 
 for which the means of exchange must be provided, of $755,000." The 
 committee suggested that the Bank could maintain, upon the general prin- 
 ciples of banking, an issue of 300,000 more notes, making the notes in 
 actual circulation about one-half the banking capital. 
 
 The facts of this statement your committee will not attempt to support, 
 as they were obtained from the high authority of the President of the 
 Bank. From the objections of the Comptroller, the first question they 
 present for inquiry is, whether the capital upon which the whole calcula- 
 tion is based, is really banking capital. The Comptroller has not«objected 
 to the capital of $1,156,318, but he appears to deny that the Sinking 
 
596 REPORTS OF COMMITTEES 
 
 Fund, in the above statement put at $389,067, and constituting a perma- 
 nent deposit, for nine years, is of more utility to the Bank, as a source of 
 banking profit. He says " in looking backward on the progress of the 
 Bank, we are unable to detect its influence." And that, " it has never 
 been in bank, but consists of a portion of its discounts." 
 
 To your committee it appears plain, that all deposits of a permanent 
 nature, like those of the sinking fund, and the average weekly or monthly 
 deposits of individuals, must consist of one of three things: — 1st- of 
 specie ; 2dly. of notes of other Banks, paying specie ; or 3dly. of the notes 
 of the Bank where the deposits are made. If the deposits are of specie, 
 which is seldom the case, there is no question that it can be banked upon, 
 because the specie will be in Bank to answer the notes issued on its faith. 
 If the deposits consist of the notes of Banks paying specie, these notes 
 can as certainly be banked upon ; for if the worst occurs, and specie should 
 be demanded for the notes issued on their faith, by requiring specie in pay- 
 ment of the notes of the Bank paying specie which owes them, the specie 
 will be obtained, to redeem the notes issued on their faith. If, lastly, the 
 deposits consist of the notes of the Bank where the deposits are made, 
 as these notes were already in circulation on the faith of capital in 
 Bank, they may again be issued, by the ordinary banking business of 
 discounting the notes of individuals. Thus, in any point of view, per- 
 manent deposits are a legitimate source of banking, and your commit- 
 tee have correctly stated the sinking fund, and the average deposits of 
 individuals, as a proper source of banking profit. But the Comptroller 
 is unable to detect the influence of this fund. This might be the case, 
 and yet the statements of your committee be unimpugned. Banking capi- 
 tal is one thing — its use is another ; and the Comptroller might, probably, 
 have discerned, that the suggestions of your committee, of a more vigo- 
 rous system of discounts, supporting a larger issue, were intended to 
 disclose, in the operations of tne Bank, the very influence he could not 
 detect. As to the assertion, that the " sinking fund has never been in 
 bank, but consists of a portion of its discounts," your committee confess 
 their inability to understand it. 
 
 To elucidate the subject, we will suppose, however, as the Comptroller 
 seems to intimate, that the sinking fund and the average amount of de- 
 posits, are useless as banking capital. We will suppose the money coming 
 into the Bank from these sources, to lie dormant there — it would be equi- 
 valent, at least, to so much of the notes of the Bank in possession, with- 
 drawn from circulation ; for if the deposits consist of the notes of other 
 Banks at par, they would easily be exchanged for these notes; if of 
 specie, it would take up these notes — and if the notes of the Bank, no 
 exchange, of course, is necessary. Supposing, then, the sinking fund 
 and the amount of average deposits, to be merely so many of the Bank*s 
 notes in possession, the circulation, as compared to the capital, would 
 stand thus : 
 Capital---..- -_ - . $1,156,318 
 
 Notes issued _ $1,600,000 
 
 Sinking Fund $389,667 
 
 Average deposits 365,000 
 
 One and two dollar bills 345,333 
 
 1,100,000 
 
 500,000 
 
OF WAYS AND MEANS. 597 
 
 The result tliuB shows but $500,000 of notes in actual circulation, to 
 a capital of $1,150,318, and makes the proposition still the same, the' 
 circulation is but one half the capital. But permanent deposits, such as 
 the sinking fund, and the average amount of deposits, never would lie 
 idle in any Bank unrestricted in its operations. They form, as your 
 committee have endeavored to show, as legitimate a fund for banking, 
 as any other -portion of the banking capital of a Bank. 
 
 If yo^r committee have thus correctly exposed what constitutes the 
 true capital of the Bank, the next question which arises from the ob- 
 jections of the Comptroller is, whether the deductions made by your 
 committee, from the notes in circulation, were correctly made. These 
 deductions consist, 1st. of $500,000 usually in bank. 2nd. of the one 
 and two dollar bills. The Comptroller says, that the true enquiry, as 
 to the former, would appear to have been what was in bank at that 
 time. This was not the enquiry. The enquiry was, as to the capacity 
 of the Bank, and the active circulation for which, in the course of its 
 business, it would probably be responsible. To ascertain this, your com- 
 mittee did not take the business of the Bank on a particular day, as the 
 Comptroller seems to suppose would have been correct. On one day, the 
 notes on hand may amount to $800,000, on another, to $300,000. Your 
 committee took the average amount of notes in Bank on its weekly or 
 monthly balances, as affording the best criterion by which its operations 
 could be judged ; and these, they were informed, showed that $500,000 
 were usually in Bank. The one and two dollar notes were also deduct- 
 ed from the circulation, because the Bank, having a monopoly of these 
 notes, (no other bank in the State being authorized by their charters to 
 issue bills under the denomination oi five dollars) they are rarely the sub- 
 jects of exchanges with other Banks. It is an acknowledged principle in 
 currency, that paper money at par, will always drive out specie from the 
 circulation, because specie has an intrinsic value independent of its use as 
 money, but paper has none. These one and two dollar bills, therefore, being 
 at par, by driving the specie out of circulation to the amount of their 
 issue, become necessary to the general circulation, and to the other Banks 
 themselves in carrying on their ordinary business ; and, consequently, rare- 
 ly are returned upon the Bank. It is true, as the Comptroller states, 
 these bills, in the course of trade and business, may be substituted for bills 
 of a larger denomination ; but the only effect of this substitution would be, 
 to quicken the circulation of the larger bills, and thus, possibly, reduce the 
 amount of these bills usually in bank. But this effect has already been 
 allowed for, in the $500,000 usually in bank. The circulation, with all 
 eauses which may affect it, leaves in bank usually this amount. 
 
 Having thus endeavored to show, that the capital upon which your Com- 
 mittee based their calculations, is really banking capital, and that the de- 
 ductions made from the circulation, were correctly made, the question re- 
 curs upon the whole statement — is it consistent with the sound principles 
 of banking, to suppose, that a Bank with a banking capital of $1,910,985, 
 or in round numbers $2,000,000, (since the permanent deposits from the 
 Treasury would carry it beyond this amount,) should maintain in active 
 circulation, a currency of $1,055,000, composed of the $755,000 remaining 
 in circulation according to the statement, and the $300,000 suggested by 
 your Committee ; or in other words, that a Bank can maintain in circula- 
 tion one-half the amount of its capital. To state this proposition, would 
 
598 REPORTS OF COMMITTEES 
 
 seem to prove it. The object of banking, is to make money, and to make 
 at least as mucli money, as by the ordinary rate of interest, can be made 
 by loans to individuals. If this is not the case, what use is there in bank- 
 ing? Why should capital leave the hands of individuals, and undergo the 
 hazards of banking, if it does not yield at least as much profit as can be 
 obtained by private loans ? A Bank makes money by discounting notes — 
 that is, by exchanging its own notes for the notes of individuals, which 
 carry interest. In the course of the year, it must discount more notes 
 than the amount of its capital, or it will not yield the ordinary interest 
 upon its capital, because the expenses of the institutioli, the payment of its 
 officers, insurance, &c. must be paid out of the profits of its business. — 
 Now, is it the experience of banking, that a Bank can discount notes to a 
 greater amount than its capital, with a^ circulation out, of less than one-half 
 of its capital ? Unquestionobly, a circulation less than the amount of its 
 capital, may discount notes to the amount of its capital, because, by fre- 
 quent renewals, or large payments upon them, a considerable portion of the 
 notes of the Bank issued upon the original discounts, may be called in, 
 and thus be turned more than once tlirough the Bank during the year ; but 
 this operation could not be accomplished .with all the notes in circulation 
 by the most rapid and vigorous renewals customary in banking. To your 
 Committee it appears obvious, that for a Bank to make money, it must 
 have in active circulation, at least notes to the amount of one-half of its 
 banking capital. As to its safety and solvency with such a circulation, 
 your Committee do not believe that it can be seriously questioned. Sup- 
 pose an extreme case : that a run, as it is technically called, is made upon 
 the Bank — what is its situation ? It has a capital in Bank, of twice the 
 circulation out, for which it is responsible, and it has also the notes of sol- 
 vent individuals discounted by this circulation, to at least the amount of the 
 circulation. If a little time is allowed to the Bank, by keeping in its pa- 
 per, and demanding large payments on the renewal of the notes due to it, 
 it would easily disengage itself from anyembarrassment ; but if no time 
 is allowed, the worst result which could be produced, would be, that the 
 notes of individuals discounted, would be sold at a trifling loss, and the 
 money arising from the sale would be applied to meet the demand, and 
 redeem the notes of the Bank ; but its credit or solvency need not be im- 
 paired. 
 
 Writers on the subject of banking, have hitherto maintained, that a 
 Bank can safely issue twice, and sometimes three times, the amount of it» 
 capital ; and consequently upon the supposition that this ii a safe limit. 
 Legislatures have usually laid a restriction to this effect. The Legislatures 
 of Massachusetts, Louisiana, and our own State, bave restricted the loans 
 of Banks to twice the amount of their capital. Mr. Gallatin, in his late 
 article in the American Review, on Banks and Currency, thinks that the 
 debts of a Bank ought not to exceed twice^ nor its notes in circulation tivo- 
 thirds the amount of its capital ^ Mr. Grallatin's whole work leans in favor 
 of a metallic, in contradistinction to a paper currency. Yet, assuming his 
 position to be correct, your Committee are covered in their calculations bj 
 his estimate. 
 
 Leaving general principles, the Comptroller has gone into facts, to prove 
 the erroneousness of your Committee's report. He has cited the capital 
 and circulation of two Banks in the city of Charleston, and of thirty-one 
 Banks in Pennsylvania. We will take the statement of the Banks in 
 
 1 
 
OF \YAYS AND MEANS. 599 
 
 Pennsylvania, to show tlie correctness of his comparison and calculaticns : 
 
 Capital -- ^12,03:2,000 
 
 Deposits 8,758,000 
 
 Effective Capital $20,790,000 
 
 Notes in Circulation ___,-. ^ 7,270,000 
 
 The error of this statement, is this, that the deposits are not added as' a 
 part of the circulation. Of what did these deposits consist, if not of the 
 notes of these very Banks in their course of circulation ? They were put 
 into the Bank one day, and drawai out another ; and the Bank w^as only like 
 the pocket-book of an individual — a temporary stopping place for these notes 
 in their course of circulation. This must have been the view of Mr. Gallatin, 
 when he deduced from the situation of these thirty-one Banks in Penn- 
 sylvania, tJie rule already quoted, '-that the debts of a Bank ought not to 
 exceed twice, nor its notes in circulation tivc-thirds the amount of its capi- 
 tal." According to the Comptroller's view,'the circulation of a Bank ought 
 not to exceed oiu-tkifd of its capitalr Your Committee are not- surprised. 
 that with such calculations and views the Comptroller should put forth the 
 following proposition: '' At the time the Committee recommended the 
 above additional issue, the Bank had in circulation, leyoncl question^ an 
 amount of notes considerably greater than the other four Banks incorpo- 
 rated by this State together, having a combined capital of $3,475,000." 
 
 Your Committee have thus noticed the objec.tions and criticisms of the 
 Comptroller General no farther than appeared to be necessary for the eluci- 
 dation of the principles upon which their report of last yeal' was made, 
 and a clear explanation of the positions and statements it contains. ^ Upon-- 
 a careful review, admitting their facts to be -correct, they have been unable 
 to detect the fallacy of their reasoning or conclusions. It is important 
 that the House should distinctly understand, fram what causes the Bank is 
 restricted in its operations, and will be unable to meet the payments of the 
 public debt; for without this knowledge it will be impossible, by wise le- 
 gislation, to avert or to remove them. It is not then from any peculiar 
 imbecility and inefficiency in the Bank — the Bank is sound, and its Capital 
 unimpaired. It is not from the weakness and faithlessness of its officers — 
 these are able,, and watchful, and honest. Th« sole causes of embarrass- 
 ment, and restriction upon its profits, arise from the custom in the Bank, 
 too long indulged, of renewals in full, and from the gigafitic powers of the 
 Bank of the United States. The former cause, by a firm yet moderate 
 course of policy, it is believed, the business of a few year^ will remove. — 
 The latter cause, sooner or later, the State must meet, and either subdue, 
 or submit to bo subdued. If this Bank is re-chartered, of which there 
 appears to be little doubt, with the capital it may be authorized to receive 
 on its books, it can sustain an issue to almost the entire demand of 'the 
 paper circulation of the Union. It will be to its interest to put forth and 
 to sustain this issue ; for the profit of every Bank is in proportion to the 
 notes it can keep in circulation. It 'can only keep out this issue, by de- 
 stroying the local banking institutions of the States, and thus by extin- 
 guishing their paper, make room for the sul^ stitution of its own. The local 
 Banks and our State institution, thus stand in direct opposition to the in- 
 terest of this Bank. Arguing from the ordinary principles of human na- 
 ture, it will not be difficult to divine its course, when its power will be able 
 to create its popularity, and to hold its continuance and existcncS by the 
 
600 REPORTS OF COMMITTEES 
 
 high tenure of its own free will. To your Committee it appears to he the 
 sound policy of the State, to know and test at once, the true position of her 
 citizens and her own institution, in relation to this Bank. No free State 
 should for a day voluntarily doubt its own independence. If the State 
 possesses the power of checking this Bank through her citizens interested 
 in its stock, this power should be demonstrated with promptitude and ener- 
 gy, until at least it is acknowledged, or the exercise of higher and stronger 
 powers shall appear to be necessary for her self-protection. The Bank of 
 the State will be compelled to wind up its affairs, and to close its doors, so 
 soon as it is determined, that any other power than the State Legislature 
 is to control its operations, independent of the salutary check of similar 
 institutions, in a course of fair and honorable competition. 
 
 In conclusion, your Committee beg leave to observe, that none of the ob- 
 servations submitted in this report, are intended in the slightest degree, to 
 influence the conduct of the Bank. They coincide entirely, with the opin- 
 ion expressed by the President, that this Legislature cannot beneficially 
 interfere in the course and policy of the Board, to whom it has entrusted 
 the management of this institution. Banking is always essentially a prac- 
 tical matter ; and the diJSiculties communicated by the President, under 
 which the State institution now labors, more particularly forbid any inter- 
 ference whatever in its course. 
 
 Your Committee also coincide in the opinion, expressed in these reports, 
 that it is inexpedient at this time to raise the taxes upon the people. The 
 means proposed by your Committee, in the bill to raise supplies, they trust 
 will increase the revenue of the State, whilst its expenditures will probably 
 be diminished. 
 
 - All which is respectfully submitted. 
 -:,. R. BARNWELL SMITH. C/mirman. 
 
 I)ecember 10. 1831. 
 
 Extract from the Report of the Committee of 'Ways anri, Means: 
 
 House of Representatives^ Dec, 5^ l^^^. 
 The Committee of Ways and Means, to whom were referred the Reports 
 of the President of the Bank and Comptroller, and a part of the Gover- 
 nor's Message, beg leave to report : They have given the same the most de- 
 liberate consideration, and feel authorized to assure the Legislature that the 
 finances of the State are in a prosperous condition. From the appearances 
 of the last session, and the disbursement consequent to the purchase of arms 
 and munitions and other preparations to defend our country from the storm 
 that menaced it, it was but fair to conclude that our treasury would be ex- 
 hausted, and the Legislature driven to new and increased taxation. The 
 necessity of large disbursements was not the least of the impediments to 
 the action of the State. It was confidently predicted that whatever other 
 results might attend that action, the accumulation of a large public debt 
 and oppressive taxes were unavoidable. It is with great pleasure your 
 Committee are enabled to assure you that so far from realizing those pre- 
 dictions the reports of the financial ofl&cers of the State warrant your Com- 
 mittee in recommending a reduction of the taxes. The gross amount of 
 
PRESIDENT OF BANK. 601 
 
 the profits of the Bank, for the last fiscal year, was one hundred and fifty 
 one thousand three hundred dollars and seventy-two cents, and we are 
 assured by the President of that institution, that with the aid of any sur- 
 plus revenue of the State, he will be able to meet the yayment of the public 
 debt without affecting the operations of the Bank. From the Comptrol- 
 ler's report at the close of the last fiscal year, there was a balance of one 
 hundred and sixty-two thousand and thirty-seven dollars seventy two cents, 
 which after paying all the appropriations to which it may be subjected, 
 will not be reduced below one hundred thousand. Of the four hundred 
 thousand dollars put at the disposal of the Executive, not more than one 
 hundred and forty thousand have been drawn. Your Committee recom- 
 mend the repeal of the Acts subjecting to the order of the Executive, the 
 balance of the appropriations of the last year, amounting to two hundred 
 and sixty thousand dollars. 
 
 (1835.) 
 
 The Committee of Ways and Means, to whom were referred the Reports 
 of the President. of the Bank and the Comptroller General, have consider- 
 ed the same, and beg leave to report : 
 
 They have examined the Keport of the President of the Bank, and the " 
 affairs of that institution have been skilfully and profitably managed. 
 
 After replacing the losses sustained in its operations last year, and some 
 old debts in the City of Charleston, which have been for a long time un- 
 available, the Bank has carried to the Sinking Fund the sum of one hun- 
 dred and twenty thousand dollars. As the Legislature created that fund 
 to meet the instalments of the public debt, at the successive periods of its 
 redemption, it may not be improper to draw the attention of this body to 
 that subject. The whole amount of debt is one million, seven hundred and 
 fifty-three thousand, seven hundred and seventy dollars, and ninety-one 
 cents, ($1,753,770 91): Of this sum eight hundred thousand is due in 1840. 
 To meet this instalment, we have at this time five hundred and forty-five 
 thousand, seven hundred and three dollars, seventy-one cents, ($545,703 
 71) constituting the Sinking Fund, which, united with the balance in the^ 
 Treasury, three hundred, and forty-two thousand, five hundred and sixty- 
 three dollars, is more than sufficient. Predicating our calculations on the 
 present state of our finances, we are warranted in the conclusion that the 
 State will not be under the necessity to resort to any increase of taxation, 
 or new modes of revenue, to meet the public debt, at the periods at which 
 it is due. 
 
 Your Committee recommend that a draft for the amount of thirteen 
 thousand, six hundred and forty -one dollars, and eighty-nine cents, be drawn 
 on the Treasury, in favor of the Bank — being the interest on the debt of 
 the late Gen. Sumter, and debt due by the Female Academy in Columbia, 
 which properly belongs to the Sinking, Fund but was drawn from the Bank 
 by legislative authority. 
 
 F. W. DAVIE, Chairman, 
 
 76 . . 
 
602 REPORTS OF COMMITTEES 
 
 In the House of Representatives^ Dec. 19, 1838. 
 
 The Committee of Ways and Means, to which was referred that portion 
 of the Message No. 1, of his Excellency the Governor, relating to the con- 
 dition of the Banks in this State, have had the same under consideration 
 and respectfully report : 
 
 That upon making due examination of the detailed statements, your 
 Committee are satisfied with the condition of the Banks generally, and be- 
 lieve that they are in a sound condition. But there is one state of facts, 
 which these statements exhibit, which should be brought to the view of the 
 Legislature. It appears that two of the Banks of the interior, with an ag- 
 gregate capital of only $700,000, have out bills to the amount of $1,031,- 
 270, and the specie in their valuts amounts only to $238,731. At the same 
 period two other Banks of the interior, with an aggregate capital of $1,- 
 098,680, had their combined issues at only $663,340, with $299,636 of 
 specie in their vaults. At the same period, the Banks in Charleston, with 
 an actual banking capital of nearly seven millons, had their combined is- 
 sues at a fraction less than three millions, with $1,417,160, of specie to 
 meet them. While, therefore, the Banks in Charleston had less than half 
 their capital in notes issued, and two of the country Banks had less than 
 two thirds of theirs, two other country Banks had out their whole capital, 
 and half as much again, with not much more than one-fifth of the issues in 
 specie in their vaults. 
 
 This state of facts induced your Committee to examine further into . the 
 matter, and ascertain, if possible, the causes of this dififerance. Your Com- 
 mittee learn that the Banks whose issues are so large, decline keeping their 
 notes at par all over the State, by refusing to make arrangements for their 
 circulation at the commercial metropolis of the State ; while the other 
 country Banks have made such arrangements, and kept their notes at par. 
 The natural result is, that those notes which are below par, keep the cir- 
 culation, while the better currency is remitted to Charleston and elsewhere, 
 in payment of debts. And the consequence is, that the currency which is 
 the weaker remains in the hands of the people, and the Banks which take 
 least pains to keep their note&at par, derive the most benefit. 
 
 The Bank of the State, whose issues could, with perfect safety, be ex- 
 tended to two millions of dollars, has its paper returned home upon it, and 
 its issues are contracted as low as $646,000 ; and of course, its business and 
 profits must experience a corresponding reduction. The State Treasury, 
 too, is used as a source of profit at the expense of the State. For as the 
 notes of all Banks in the State are receivable there, those who have taxes 
 to pay, buy up these notes below par, and pass them oflf at par to the Treas- 
 ury ; and all the loss is at last borne by the" people themselves. 
 
 This condition of things your Committee think ought, if possible, to be 
 remedied. Every Bank which obtains a charter fron; the State, ought to 
 keep its bills at par all over the State. Although, in point of law, the Bank 
 redeems its obligation by paying at its own counter, yet when that counter 
 is in a remote part of the State, it does not fulfil the spirit of the charter, 
 or meet the just expectations of the public. There is no sound reason, why 
 they should not all pursue the plan adopted by the Commercial Bank of 
 Columbia, and the Bank of Camden, and have their bills redeemed in 
 Charleston. The public would be saved the embarrassment of receiving 
 bills which are not current every where, and the Banks themselves would 
 
OF WAYS AND MEANS. 603 
 
 gain as much by the circulation in Charleston as they would lose elsewhere. 
 At any rate, they would better answer the ends for which the public had 
 chartered them. 
 
 Your Committee think that, through the Bank of the State and its 
 Branches, these Banks may be induced, without any infringement of their 
 privileges, to meet the just expectations of the country. By receiving their 
 bills at the mother Bank, that Bank may, through its Branches, take meas- 
 ures for their resumption, in case some more advantageous arrangement be 
 not proposed by the Banks. Your Committee have conferred on this sub- 
 ject, with the President of the Bank, and find hini fully sensible of the in- 
 justice which the community suffers, and desirous to administer any remedy 
 which may be deemed efficient. Your Committee, therefore, recommend 
 the adoption of the following Resolution : 
 
 Resolved^ That the President and Directors of the Bank of the State of 
 South Carolina, be authorized and requested to take such measures, as in 
 their judgment may be deemed proper, to preserve at par throughout this 
 State, the bills which may be issued by any Bank within its limits. 
 
 In the House of Representatives^ Dec. 18, 1840. 
 The Committee of Ways and Means, to whom was referred a Resolu- 
 tion of Enquiry, as to the expediency of calling in a proportion of the 
 Bonded Debt due the Bank of the State, respectfully Report, that they 
 have duly considered the same, and they recommend the adoption of the 
 following Resolutions, in the stead of that referred to them. 
 
 1. Resolved.^ That in the opinion of this Legislature, it is expedient the 
 President and Directors of the Bank of the State, should call in the Bonds 
 held by the Bank, and which are past due, as speedily as the circumstances 
 of the country, and of the individual debtors, will permit. 
 
 2. Resolved^ That the President of the Bank make a Report to ihe 
 Legislature, at the next session, exhibiting, in separate classes, the various 
 amount of Bonded Debt, which have remained unpaid for one, two, three, 
 ^nd more years. 
 
 f • (1841.) 
 
 The Committee of Ways and Means, to whom was referred so much of 
 the Message of His Excellency the Governor as relates to the Banks ; as 
 also the Report of the Attorney General, in relation to the cases pending be- 
 tween the State and the Banks ; as also the Presentment of the Grand Jury of 
 Fairfield ; and also sundry bills proposing to amend the Constitution in re- 
 lation to granting Charters ; havQ duly considered the same, and respect- 
 fully report as follows : 
 
 At the last Session of the Legislature, a law was enacted, providing 
 against the suspension of Specie payment by the Banks. In view of the 
 disastrous effects upon the public welfare produced by such suspensions, 
 the Legislature proposed to the Banking Institutions within the State, to 
 
 i unite in measures which would tend to prevent future evil, and without 
 recurrence to the past, simply to provide for the future. It was proposed 
 
G04 RiJPORTS OF COMMITTEKS 
 
 to them, to adopt two regulationSj one of wlilcli required the Banks to in- 
 form the public, which gave them credit, as to their condition and solven- 
 cy ; the other required them, upon any future suspension, to pay into the 
 public Treasury an Interest of 5 per cent, upon the portion of their Bills 
 in the hands of the people, which the Banks had refused to redeem. 
 
 The provisions thus proposed, have been adopted by the Bank of the 
 State, the South Western Rail iioad Bank, the Planter's and Mechanic's 
 Bank, and the Union Bank. These Institutions have faithfully conform- 
 ed to the public will, and have thereby justly entitled themselves to an in- 
 crease of public confidence. The other Banks have refused to adopt the 
 Regulations proposed ; and under the directions of the law, the Governor 
 has caused suits to be instituted against them, to ascertain whether the 
 abuse of their privileges, involved in their suspension, has not vacated their 
 Charters. 
 
 It will be perceived, that grfeat questions of public right are involved in 
 this controversy. The State maintains that all privileges created by any 
 Charter, are exercised upon a public trust that they shall not be abused ; 
 that the proper exercise of the privileges and powers granted by a charter, 
 is the consideration of the grant ; and that when the Banks abuse this 
 trust, or fail in the due exercise thereof, the consideration fails, the trust is 
 broken, and the privilege is lost by the corporation that enjoyed it ; that a 
 suspension of Specie payments virtually destroys all the ends for which 
 Banks were created ; confounds the relations of society; unsettles the meas- 
 ures of value ; prostrates the commerce and trade of the country ; debases 
 the public morals ; and spreads far and wide distrust and ruin ; that it is 
 therefore to be considered an abuse of such a character as works a forfeiture 
 of the charters under which it has been committed. 
 
 Your Committee feel well assured, that in deciding questions so impor- 
 tant to the public interests, the Judiciary of South Carolina will adminis- 
 ter the law, so as at the same time to protect the public interests, and se- 
 cure to every class of citizens, whether corporations or individuals, the en- 
 joyment of their just rights. But it must be observed, that the case now 
 pending before the Courts, may turn upon the* isolated question whether 
 Suspension of Specie payments is such an abuse as to involve a forfeiture of 
 these particular Charters. The opinion of the Circuit Court, which has 
 been referred to your Committee, is limited by its own express terms to 
 this particular point ; and while it sustains by reasoning, several of the 
 'most important positions maintained for the State, judgment is given for 
 the Defendant, upop the simple ground that suspension of itself, does not 
 work a forfeiture of the charter. Whatever, then, may be the final result 
 of this caso, it is apparent that the decision thus limited, would have no 
 direct bearing upon the constitutional right of the Legislature to regulate 
 and control the Banks ; and the question would still remain open, whether 
 the Legislature can or ought to take further measures for controlling the 
 recusant institutions. 
 
 In discharging the important duty assigned your Committee, of canvass- 
 ing these grave subjects, they will endeavor to present, in one view, the vari- 
 ous modes of action which are open to consideration. It seems to your 
 Committee that these may be classified under three distinct heads. 
 
 1. Legislation to punish the recusant Banks, such, for instance, as some 
 of the measures proposed to prevent the circulation, and affect the credit 
 of the Bills ; or to remove from them, some of the protection of the law. 
 
OF WAYS AND MEANS. 605 
 
 "2. General laws of regulation operating upon the Banks at once — such, 
 for instance, as the absolute enforcement of the regulations prescribed by the 
 Act of 1840, without asking any consent from the Banks. 
 
 3. Amendments of the Constitution, so as to prevent a recurrence of ex- 
 isting evils, when the present Charters shall have expired. 
 
 1. The first mode of Legislation, your Committee would altogether dis- 
 approve. In their opinion, it is neither a wise policy, nor is it becoming 
 the dignity of the State. Although the recusant Banks have evinced an 
 utter disregard of the public voice, and have pursued a policy selfish and 
 suicidal, yet it must be observed that they have merely appealed (as they 
 had a right to do) to the constituted authorities 6f the country. However 
 unwise and unpatriotic their course, in refusing to co-operate for the public 
 good, they have chosen to stand their trial for alleged delinquency, and 
 must abide the judgment which the law awards. Until that judgment be 
 pronounced, it cannot be affirmed that they have violated the law. It is 
 our duty, therefore, at present to regard them as a portion of the common- 
 wealth entitled to its protection ; and while we hold over them a firm-^nd 
 steady control, we must not permit impulse to sway over judgment. Your 
 Committee would therefore advise a rejection of all measures bearing a vin- 
 dictive character. 
 
 2. The second class of laws which suggests itself, embraces those regula- 
 tions which might be deemed salutary in restraining mischiefs or promoting 
 the public welfare, during the term of the existing Charters. The rule 
 laid down by the Supreme Court of the United States in the case of the 
 Providence Bank against Billings, in 4 Peters, 514, sanctions an extensive 
 range of legislation of this character. It has been held, even by this Fed- 
 eral tribunal, that the sovereign power of the State to exercise legislation 
 over all persons or corporations within its territory, can only be restrained 
 by force of some express grant or exemption contained in the Charter. If 
 the State, therefore, should enforce upon the Banks the regulations con- 
 tained in the Act of 1840, these institutions could only maintain their 
 ground before the Supreme Court, by showing an express grant in their 
 Charters, resulting in exemption from this action of the Legislature. The 
 salutary influence of the Act of 1840, upon the institutions which have con- 
 formed to it, has removed all pretence of injury which might have been set 
 up ; and in'the absence of any such grant of exemption as is required by 
 the decision of the Supreme Court, the Banks would be reduced to the ne- 
 cessity of contending that they are a body in the State, above and beyond 
 the law — that they have purchased with money, an existence and privileges 
 upon which the law-making power of the State cannot act, but with their 
 own consent ; or in other words, that there exists within our Kepublic, a 
 moneyed Aristocracy^ with extensive and dangerous privileges, entirely be- 
 yound the reach of the legislative authority. 
 
 But your Comniittee are of opinion, that it would be premature, at pres- 
 ent, to resort to legislation of this character. The cases now before the 
 Court of Appeals involve .the existence of all the recusant Banks, and your 
 Committee are content to await the judgment of that tribunal. Should the 
 final result be in favor of the State, the charters will then be at the disposal 
 of the Legislature, and can be vacated or restored, upon such terms as that 
 body may deem expedient. If, on the other hand, the judgment be in fa- 
 vor of the Banks, or if delays should be interposed, it will be for the wis- 
 dom of the Legislature, at any future period, to decide upon such measures 
 as may then seem proper. ^ 
 
606 HEPORTS OF COMMITTEES 
 
 In the meantime, your Committee would congratulate the country that 
 one of the main objects of the policy pursued by the Legislature has' been 
 already accomplished. The currency of the State has been preserved 
 sound during the past year — while every other State South of New York 
 has been subjected t'o the evils of a disordered and inconvertible currency. 
 The simple fact, that the name of South Carolina upon a Bank Note 
 has been found to give it currency through distant sections of the Union| 
 proves the estimation in which she is held ; and the citizens of the State 
 may be justly proud of her untarnished honor and integrity. 
 
 3. We now come to the third mode of legislation submitted for consider- 
 ation, viz : — by amendments of the Constitution, providing against a recur- 
 rence of evils after the expiration of existing charters. Your committee 
 in a former report, enforced the expediency of directing the sound public 
 opinion which now exists on this subject, to the construction of a wise 
 policy for the future. With this view, the Act of 1840 made such provi- 
 sions as to future charters, as were deemed wise and prudent. These pro- 
 visions are merely legislative enactments, and are, consequently, open to 
 the action of any future Legislature. It is now proposed to advance a 
 step further, and embody some provisions in the Constitution of the State. 
 Two propositions have been submitted for consideration. The first propo- 
 ses to limit the power of the Legislature, by annexing to all charters to be 
 granted, a consideration of special responsibility in the stockholders. 
 The second, provides that all charters to be granted, shall, at all times be 
 subject to amendment, or repeal, by the Legislature. The first proposition 
 binds down the Legislature to a special form, which experience may prove 
 to be an inadequate remedy. The second, removes all trammels, and 
 would leave the Legislature at all times free to adopt the fii:st proposition, 
 or any other regulation which experience may suggest. The last amend' 
 ment, in fact, includes tlie first, and stands free from all those objections 
 which may justly be brought against the special provisions in the Constitu- 
 tion, It offers, moreover, the decided advantage of preserving unfettered 
 for the people, in all times to come, that great principle of civil liberty, 
 the power of self-government, and of enacting such laws as may, at any 
 period, be deemed essential to the public welfare. 
 
 Your committee do not perceive that such an amendment of the Consti- 
 tution has any connection with the cases now pending in court. A judg- 
 ment on either side would not affect the considerations which must deter- 
 mine this question, and they would, therefore, respectfully recommend that 
 the Bill to amend the Constitution in relation to granting Charters of In- 
 corporation, be passed, merely changing the phraseology, so as to read as 
 follows : 
 
 Every Charter of Incorporation hereafter granted in this State, shall at 
 all times remain subject to alteration, amendment, or repeal, by the Legis- 
 lative authority. 
 
 Your committee further recommend, that the Bill to alter and amend 
 the 8th Section of the 9th Article of the Constitution, do not pass. 
 
 They further recommend the adoption of the following Resolutions : 
 
 1. Resolved, That a suspension of specie payments by the Banks, is to 
 be deprecated as an evil destructive of the best interests of the State, and 
 that it is the duty of the Legislature to try to prevent, if possible, its 
 recurrence, by the exercise of all lawful and constitutional means. 
 
 2. Resolwdj That a due subordination to the laws, by every class of citi- 
 
OF WAYS AND MEANS. 607 
 
 zens, is an essential feature of Republican Government ; that a clainj to 
 exemption from Legislative authority, is a denial to the people of the pow- 
 er of self-government, and if admitted, would, in fact, change the nature 
 of the Government, and establish within the State, a moneyed aristocracy, 
 irresponsible to the law. 
 
 3." Resolved^ That the Bank of the State, the South Western Rail Road 
 Bank, the Planters' and Mechanics' Bank,, and the Union Bank, deserve 
 the confidence and support of the people, for their co-operation with the 
 State in promoting those measures which have been deemed essential to 
 the public welfare. 
 
 4. Resolved^ That this Legislature approves the course adopted by his 
 Excellency, the Governor, in relation to the Planters' and Mechanics' 
 Bank, and the Union Bank, as in accordance with the spirit of the Act of 
 1840. That for the reasons assigned by the Attorney General, the Bank 
 of Georgetown be discharged from any further proceedings, and that the 
 Governor be requested to carry out such measures as he may deem expe- 
 dient for the final disposition of the cases against the other Banks, 
 
 All which is respectfully submitted, 
 
 C. G. MEMMINGER, Chairman. 
 
 In the House of Representatives, Decernber 15, 1843. 
 
 The Committee of Ways and Means, to whom was submitted so much 
 of the Governor's Message, No. 1, as relates to the Public Debt and the 
 Bank of the State, and also sundry other papers in relation to the same 
 subject, have duly considered the same, and respectfully report: That the 
 Capital of the Bank of the State consists of two distinct portions, one ari- 
 sing from actual cash capital, which the State owned, amounting to $1,156,- 
 318 48; and the other portion consisting of the two millions of dollars 
 borrowed by the State, under the Act foi; Re-building Charleston, of which, 
 about one million is loaned to the sufi"erers by the great Fire in Charleston. 
 A Bank based upon two such distinct funds, is operating upon two distinct 
 principles. 
 
 In the one case, where the Bank is based upon actual capital, if a loss 
 ensues it is not by the capital, and there is simply a loss of that amount- 
 But in the other case, where money is borrowed on the faith of the State, 
 and loaned out or used in banking, if a loss occurs, the debt which has 
 been incurred by the public, remains to be paid, while the means of paying 
 have been abstracted, and the people must be taxed to meet it. The finan- 
 ces of the State are thus involved in all the casualties of banking, and the 
 public are made to guaranty debts incurred by individuals. Such a sys- 
 tem of finance is unsound in principle and proves dangerous in practice.— 
 It places a large amount of funds at the control of the persons who direct 
 the Bank, and while it exposes the action of the Legislature to an undue 
 influence, if desired to be exercised, it stimulates in a wrong direction the 
 currency and credit of the country. 
 
 Your Committee are 'of opinion that the State fell into an error, when 
 she consented to contract a public debt by borrowing money to loan out 
 again to individuals, or to be used in banking. The sooner she retraces 
 
60S IIEPOIITS OF COMMITTEES 
 
 her steps and reverses that policy, the better for her welfare and prosperity 
 will it ultimately prove. It is unwise to persevere in such a policy, but it 
 would be still more unwise so reverse it, by a sudden change, to the oppo- 
 site extreme. So many important interests are affected by action on these 
 subjects, that measures of change should be gradual in their operation, em. 
 bracing such a range of time as neither to give a shock to public credit, or 
 to inflict unnecessary suffering upon our people. It is this very necessity 
 for gradual measures that renders it proper that the State should now de- 
 finitively declare its determination on this subject, and take the first step 
 at once. The Direction of the Bank will then be enabled to shape their 
 course to carry out this policy. 
 
 Convinced, as your Committee are, of the necessity of a change of mea- 
 sures, they are happy to perceive that the President and Directors of the 
 Bank have proposed in their annual Report, that which is properly the first 
 step in this reverse direction. They ask authority to cancel such evidences 
 of public debt as may now be in their possession in Charleston, and such 
 as may hereafter be purchased up by them. Your Committee are informed 
 that they have made arrangements for bringing within their power, such of 
 the public debts as fall due within the longest periods. If this course of 
 policy be pursued with proper care and energy, it will result in extinguish- 
 ing those obligations which lie in the way of the Legislature, in adopting 
 a policy of separating the State from banking operations, (if it shall be 
 deemed advisable) at a much earlier day than would now seem compatible 
 with the public faith. 
 
 There are now in possession of the Bank, at Charleston, Fire Loan Bonds 
 and other evidences of Public Debt, amounting, as per 
 
 their last statement, to $394,568 11 
 
 But standing against the State at -, 415,270 00 
 
 Besides these, the Bank has under its control, in the hands 
 of its Agent in England, a portion of the Rail Road and 
 Fire Loan Sterling Bonds of the State, purchased up, 
 
 amountingto _ - - 64,740 96 
 
 Such of these last Bonds as are due by the State are under some ar- 
 rangements which induce the Bank to prefer not cancelling them at pre- 
 sent. Your Committee will only advise, then, as a present measure, the 
 cancelling of the former, and would authorize^ the Bank to cancelj from 
 time to time, such other public debt as they may procure. 
 
 The Public Debt of the State, at present, amounts to. _ $3,495,164 
 
 Of this, about one million is to be paid by the buildings in 
 Charleston mortgaged for the Fire Loan, and which, with 
 the personal liability of the borrowers, together with the 
 guarantee of the City, may be considered as secure, with- 
 out recourse upon the State. The other million constitutes 
 so much of the capital of the Bank of the State, and of 
 course must be secured by notes or otherwise, so as to re- 
 lieve the liability of the State. So that, for all practical 
 purposes, this sum of two millions may be deducted from 
 the liabilities: - 2,000,000 
 
 And it \Yill leave --.;- $1,495,164 
 
 of Debt for which the State must provide. , . . 
 
 Of this amount. $250,000 will become payable on the 1st January, 1845,' 
 
OF WAYS AND MEANS. 609 
 
 and $300,000 in Jan. 184G. For the first, provision has been made by 
 charging it upon the Bank. But by some oversight, in r824, when the 
 debt of $300,000 was created, it was not charged upon the Bank or Sink- 
 ing Fund. A question, therefore, has been submitted by the President of 
 the Bank, whether this demand can now be charged upon the Bank, inas- 
 D uch as by subsequent Acts of Assembly, these funds have been charged 
 with the payment of other debts. This question strikingly developes the 
 impolicy of making such specific pledges by the State, whereby any pre- 
 ference may be inferred in favor of, one public debt over another. But as 
 the Committee have desired^ to avoid any, even the slightest, imputation 
 upon the public faith, they have concluded to recommend that the $200,- 
 000, balance remaining in the Bank from the Surplus Revenue, shall be 
 carried to the Sinking Fund, upon condition that the Bank shall under- 
 take to discharge the debt of $300,000 as it becomes payable. The result 
 of these operations will be^ that at present the Bank will extinguish of the 
 
 Public Debt - $415,270 
 
 And will pay in 1 845, the sum of $250,000 
 
 And in 1846. __: 300,000 
 
 $550,000 
 Less included in the $415,270 . 163,468 386,532' 
 
 Making atotal of- 1 $801,802 
 
 which will be extinguished by the end of January, 1846, under this re- 
 commendation, besides what may be purchased up between this time and 
 that period. 
 
 This sum being deducted from the aggregate above, will leave the Public 
 Debt, at the end of January, 1846, exclusive of the Fire Loan, at $700,- 
 000, in round numbers. 
 
 Your Committee have embodied in a Bill herewith reported, such of the 
 foregoing matters as need the formality of an Act of Assembly. The re- 
 mainder they have compressed into the following Resolutions, which they 
 recommend for your adoption. 
 
 1. Resolved, That the system of borrowing money upon the public faith, 
 for the purpose of lending out the same to individuals, is unsound in prin- 
 ciple and dangerous in practice. 
 
 2. Resolved, That the policy pursued by the Bank of the State, during 
 the past year, in calling in its funds and purchasing the Public Debt, is 
 approved by this General Assembly ; and that the same policy should be 
 steadily persevered in, until all the public debt, incurred for capital of the 
 said Bank, shall be withdrawn and extinguished. 
 
 3. Resolved, That in the opinion of this General Assembly, it is inexpe- 
 dient to prescribe the details of any plan by which this result shall be ef- 
 fected ; but that it is wiser and more practicable to declare distinctly the 
 course of policy which the public interests require, and leave to the Presi- 
 dent and Directors of the Bank the responsibility and charge of devising 
 and executing the proper measures to effect these results. 
 
 4. Resolved, That this General Assembly, having now definitively settled 
 and declared that course of policy which it deems for the public good, the 
 President and Directors of the Bank are hereby enjoined to adopt mea- 
 sures for carrying out the same, as speedily as may be consistent with the 
 
 77 
 
610 REPORTS OF COjVUMITTEES 
 
 faith of the State, the present management of the Bank, and the safety of 
 the public interests. 
 
 5. Resolved^ That the said President and Pirectors shall, in their annual 
 Reports, inform the General Assembly, of such measures as they shall, from 
 time to time, have adopted, for carrying out the policy indicated in the 
 foregoing Resolutions, 
 
 ~Z>? the House of ' Repfesentativcs^ ]j>etember 12, !845. 
 
 The Committee of Ways and Means, towholn was referred so' much of 
 the Governor's Message and Comptroller General's Report, as relates to 
 the liabilities of the State, respectfully Report : That they think the time 
 has arrived^ when the State should most strenuously insist upon some pro- 
 vision being made by the South Carolina Rail Road Company, for creating 
 a fund to pay the Bonds of that Company, which are guarantied by the 
 State. These Bonds, amounting to two millions of dollars, will become 
 payable in the course of years, and unless some provision be at 
 
 once made to meet them, by a fund gradually increasing, the State may 
 find herself embarrassed by the sudden demand upon her faith for this 
 very large sum. The object which the State had in view has been accom- 
 plished ; the road now stands upon a safe foundation and is fully estab- 
 lished • the stock of the Company has risen nearly to par, and the stock- 
 hold-ers ought to lay aside some of their profits to meet those liabilities 
 which the State incurred for them in their hour of need. Your Committee 
 therefore recommend the adoption of the following Resolution. 
 
 Resolved. That the Proxies, who represent the State, in the South Caro- 
 lina Rail Road Company, be instructed to insist that a Sinking Fund or 
 some other means be provided by the Company, for extinguishing the debt 
 guarantied by the State, and that immediate steps be taken to eff'ect that 
 object. 
 
 In tJie House of Representative&, December 13, 1845. 
 
 The Committee of Ways and Means, to whom was referred the Report 
 of the Comptroller General, as to so much thereof as relates to the appli- 
 cation to be made of the dividends from the South Carolina Rail Road 
 Company, respectfully Report : That in their opinion, the most advisable 
 disposition which can be made of these dividends, is to redeem the public 
 debt, and they therefore recommend the adoption of the following Reso- 
 lution : . . . ' 
 
 Resolved, That the Comptroller General do apply the dividends received 
 and to be received from the South Carolina Rail Road Company, towards 
 the extinguishment of the Public Debt, giving preference in such extin- 
 guishment to the debt the interest whereof is charged upon the Publie 
 Treasury. 
 
OF WAYS AND MEANS 611 
 
 In the Hou»e of Re2yrese7Uati%'es. DecemheT I, 1847. 
 
 The Committee of Ways and Means, to whom was referred the Report 
 of the President and Directors of the Bank of the State, respectfully Re- 
 port : That the Bank has suggested the expediency of taking measures to 
 advance the periods Appointed for the payment of the public debt, incurred 
 under the Fire Loan Act, and of causing it to be paid in instalments of 
 about $100,000 annually. Your Committee liighly approve this sugges- 
 tion, and would recommend, that measures be promptly taken to ascertain 
 whether it be practicable. The great advantage which the State would de- 
 rive fro'm such a change, is, that instead of being compelled to consolidate 
 and keep at risk the profits of several years, derived from the Bank, the 
 same would be at once applied as fast as they accrue ; and the State would 
 be disjburthened of its debt, at a much earlier period, and with less de- 
 rangement to its financial concerns. Of course, such a change could not 
 be made without the consent of the Bond-holders ; and as the Bonds are 
 valuable in proportion to the length of time for which payment is deferred, 
 the change could only be effected by offering a compensation, in the shape 
 of an increase of interest. How great this increase ought to be, is a ques- 
 tion for the exercise of a sound "discretion. If we were to undertake fo 
 specify a limit,"the creditor would naturally raise his demand at once, -to 
 that limit ; unless he should think the lihiit too low, and then he would 
 simply decline the negotiation. So that the only mode of effecting any 
 thing, would be to entrust the matter to some one who Could see the parties 
 and treat with them personally. 
 
 Such a person could be better selected and employed by the Bank than* 
 in any other way. It would only be necessary to instruct them, that inas- 
 much as the charter of the Bank will, expire before the period fixed for the 
 payment of -the Bonds, in any arrangement which they may make, nothing 
 shall be done which shall trammel the General Assembly in voting upon 
 the question of a renewal of the charter. 
 
 Your Committee, therefore, recommend the adoption of the following 
 Resolutions : 
 
 Resolved^ That the Greneral Assembly deem it a'n object of great public 
 interest, that the public debt should be extinguished at the earliest period 
 possible, and they approve the recommendation of the President and Di- 
 rectors of the Eank of the State, that measures should be taken, with the 
 consent of the public creditor, to advance the periods and lessen the in- 
 stalments now prescribed for payment thereof 
 
 Resolved^ That it is expedient to break the heavy instalments of $500,- 
 000, now payable at fixed periods, into instalmeilts of $100,000 payable 
 annually, to commence. in January, 1853, as proposed by the Bank, if the 
 same can be done withoiit an unreasonable increase of the annual interest. 
 Resolved^ That the President and Directors be authorized and requested 
 to ascertain the terms upon which the proposed arrangements can be effect- 
 ed, and to carry out the same in such manner as they may deem expedient 
 within the limitations suggested in this Report. ' 
 

 Pi E PORTS 
 
 OF 
 
 « 
 
 COMMITTEES ON FINANCE AND BANKS. 
 
 (1833.) 
 
 Extract from tte report of the Committee on Finance, adopted by both 
 Houses, on various subjects — none relating to the Bank, . except a recom- 
 mendation to release to the Columbia Female Academy, a debt due the Bank. 
 That part is subjoined : 
 
 The Committee to which was referred the petition of the Trustees of the 
 Academy of Columbia, beg leave to Keport : That in December, 1 799, 
 (See 2 Paust, 285,) the Columbia Ferry was established over the Congaree 
 for fourteen years, and half the profits vested in the Trustees of the Colum- 
 bia Academy, for the benefit of that institution ; that in December, 1814, 
 (Laws, p. 61,) the charter was renewed for seven years ; and in December, 
 1821, the charter was again renewed for seven years. That the profits of 
 the ferry being considerable, the Trustees, aided by a legacy of $1000 from 
 Major Ward, and the expected proceeds of the sale of certain lots lying in 
 the suburbs of Columbia, granted to them by the Legislature, contracted for 
 the erection of a brick building for an Academy, and in order to carry ful- 
 ly into effect the beneficent intentions of the Legislature, and that the ad- 
 vantages of the institution might be extended to other parts of the State, 
 they caused the building to be constructed as not only to furnish commodi- 
 ous school rooms, but also numerous apartments for the accommodation of 
 young ladies who might be sent from other Districts, and who might thus 
 be lodged in the Academy. The building, with its necessary outhouses, 
 was constructed, thie lots upon which they stand having been purchased for 
 $2000, and the buildings having cost the sum of $16,201 14-100. This 
 was done immediately after the last renewal of the charter. The Academy 
 went into successful operation. It received young ladies from all parts of 
 the State, and was eminently useful to the whole community. The Trus- 
 tees meanwhile paid off the debt contracted for the lot and buildings, as 
 fast as their funds.permitted, and would long ago have discharged the whole 
 debt ; but the Legislature, in December, 1 822, granted a charter to Mc- 
 Kenzie, for building a bridge at the site of the Columbia ferry, which char- 
 ter was extended in December, 1823 ; and a bridge was forthwith erected. 
 As soon as the said bridge became passable, the profits of the ferry totally 
 ceased, and the Trustees were thus deprived of their only means of paying 
 off the balance of the debt contracted for building the said Academy. The 
 Committee further report, that the Trustees borrowed from the Bank of 
 
ON FINANCE AND BANKS. 613 
 
 the State, a sum adequate to discharge this debt, and applied^the"same to 
 that object, trusting that they might be able to raise funds at a future day 
 to repay the Bank, but have totally failed, notwithstanding they have used 
 all the means within their power, (by subscription and otherwise,) to effect 
 the object. Meanwhile the Bank has sued for the debt, obtained judgment, 
 and lodged an execution witli the Sheriff, (amounting with costs to the sum 
 stated in the petition.) and the Academy is about to be sold to satisfy the 
 same. 
 
 Your Committee recommend that the prayer of the petition be granted, 
 and that the debt thus due by the Academy to the Bank of the State be 
 remitted. The building may be properly considered public property ; it 
 has been erected at a great expense and is almost paid for — the institution 
 has already rendered essential benefit to the State, and it may well be ques- 
 tioned whether, under such circumstances, so valuable a property should 
 be suffered to be sacrificed at Sheriff's sale, and diverted from its original 
 purposes. 
 
 Li the Senate^ Dec. 16, 1839. 
 
 The Committee on Finance and Banks, to whom was referred a Kesolu- 
 tion, requiring the President of the Bank of the State of South Carolina 
 to report annually the indebtedness and responsibilities of the officers of 
 the Bank of the State of South Carolina, and its Branches, report : That 
 they have attentively considered the said Resolutions, and recommend that 
 all the "v^ords after the word resolved, be struck out, and the following 
 substituted : 
 
 Resolved^ That hereafter it shall be the duty of the President of the 
 Bank to set forth, in an annual private report, to the Senate and House of 
 Representatives, the indebtedness arid responsibilities of the several Direc- 
 tors with the said Bank, for the past year, brought down to the first day of 
 each session of the Legislature. 
 
 In the Senate, Dec. 11, 1841, 
 The Committee on Finance and Banks, to which was referred the me- 
 morial of the Louisville, Cincinnati and Charleston Bail Road Company, 
 praying to be permitted to cancel certain Bonds, payable in London, and to 
 substitute others made payable in Charleston, respectfully report : 
 
 That they have had the same under consideration, and are satisfied that 
 the bonds specified in the memorial, were properly withdrawn from the 
 foreign market, under the depreciation then and now existing. That the 
 responsibility of the State, under her guaranty of the said bonds, will not be 
 increased by such a transfer of indebtedness, from a foreign to a domestic 
 creditor, but on the contrary, that the trouble and expense of transmission 
 of the annual interest and instalments of principal as the same may fall due 
 will be superceded by granting the privilege asked for in the memorial, to 
 the extent, at least, of the amount proposed to be transferred. Youc 
 Committee therefore recommend that the following Resolution b^ adopted 
 viz : ' 
 
<314 HEPORTS OF COMMITTEES 
 
 Resolved^ That the Oomptrollef General be, and he is hereby, authorized 
 and required to cancel (on the same being presented to him for that 'pur- 
 pose) twenty-one (21) Bonds of the Louisyille, Cincinnati and Charleston 
 Rail Road Company, numbered from 125 to 145, both included, of five 
 hundred pounds sterling each, and made payable, under the guaranty of 
 the State, at the house of Palmers, Malvellop,,Dent & Co., London; and 
 that he do, in conformity with the directions of the Act of one thousand 
 eight hundred and thirty-seven, entitled "An Act to lend the credit of the 
 State, to secure any loan which may be made by the Louisville, Cincin- 
 nati and Charleston Rail Road Company, and for other purposes," en- 
 dorse a similar number of the same denomination, drawing five (5) per cent, 
 interest, at four shillings and sixpence" to the dollar, made payable at the 
 South Western Rail Road Bank in Charleston. 
 
 In tlie Senate^ Dec. 1847. 
 MR. FELDER'S RESOLUTION. •> 
 Resolved., That it is the opinion of this Senate that whilst the Fire Loan 
 Bonds were, during the present year, selling in the London market at the 
 rate of eighty dollars and fifty cents for one hundred dollars, it was the duty 
 of the President and Directors of the Bank of the State of South Carolina 
 to apply a portion of the Sinking Fund towards the b.uying up and cancel- 
 ling a portion of the public debt contracted in such bonds. 
 
 MR. aiST'S RESOLUTION. 
 
 Resolved.) That the Committee of Finance .and Banks \q instructed to 
 inquire into and report the price of the Fire Loa-n or Rail Road Bonds in 
 Europe, the present year, and whether, under all the circumstances, it was 
 the duty of the Bank to purchase the said bonds. 
 
 The Committee on Finance and Banks, to whom were referred certain 
 resolutions relative to the purchase of Fire Loan an^ Rail Road Bonds by 
 the President of the Bank, in the London market, have considered the same 
 and respectfully report : 
 
 That after a very full and laborious investigation of the whole matters 
 referred to them, your Committee have no hesitation in saying that the 
 President and Directors of the Bank of the State have discharged their 
 duty to the State and to the Bank, whose interests have been committed 
 to their charge, with zeal, fidelity and ability, in relation to the purchase 
 of State bonds in Europe, which was ordered to be made by this Legisla- 
 ture. Instead of neglecting to carry out the intentions of this Legislature, 
 in regard to the State debt abroad, it will be seen, from the correspondence 
 between the President of the Bank and various persons in Europe, here- 
 with transmitted to the Senate, that every efibrt has been made to purchase 
 the liabilities of South Carolina in England, which prudence, wisdom and 
 foresight could have suggested. 
 
ON FINANCE AND BANKS. 615 
 
 There were two kinds of bonds in England which the State of South 
 Carolina was responsible for. The Fire L(0an bonds, which had been. is- 
 sued by the State, and for which the State alone was responsible— and the 
 Rail Ftoad bonds, which had been guarantied by the State, but which the 
 L. C. and Charleston Rail Road Company were bound to' pay. The j&rst 
 named bonds, the President and Directors of the Bank of the State were or- 
 dered to purchase. The latter bonds, not being an original debt of the State, 
 and the company which made them being abundantly able to redeem them 
 when they become due, it was not made the duty of the Bank of the State 
 to purchase them. If purchases were made,, they were made by the Bank 
 as similar purchases were made of other stocks. 
 
 It will be seen, by reference to the con-espondence already alluded to, 
 that the President o'f the Bank of the State did make arrangements with 
 Messrs. Ilambro and Sons in London, to purchase the Fire Loan or State 
 bonds whenever the same could be done at fair prices. For this purpose, 
 funds were placed in the hands of their agents by the Bank, and a contract 
 entered into, binding the agents to make advancements for the Bank, if 
 necessary to make larger purchases. Messrs. Hambro and Sons did pur- 
 chase for the Bank to the amount of £7,500 of Fire Loan Bonds, at prices 
 ranging from 79-i- to 89, when the purchases were discontinued on account 
 of the prices paid. The exchange being added to them,, brought them so 
 near their par value that the State could have no interest in making the' 
 purchase before they became due. ■ - , , 
 
 The Rail Road Bonds were selling at a lower rate in the London market, 
 and the Bank very properly determined, though not ordered to do so, to 
 purchase those Bonds as a profitable investment of their funds. The pur- 
 chases made in those Bonds amount to £ 1 0,750, at prices from 75 to 86. 
 These Bonds, although as well secured as the State Bonds, were- always sel- 
 ling in the London Market at from two to fiveper cent less. This induced 
 the Bank to make these purchases. 
 
 The Resolutions referred to your Committee, set forth the fact, that the 
 Fire Loan or State Bonds, which the Bank had been ordered to purchase, 
 were selling in the London market, during the past year, at eighty dollars 
 and fifty cents for one hundred dollars. This is a mistake,, of which the 
 mover of these Resolutions is now well satisfied. The mistake occurred in 
 confounding the prices paid by the Bank of Charleston for Rail Road Bonds, 
 which the Bank of the State was not ordered to purchase, withthe prices of. 
 Fire Loan or State Bonds, which the Bank of the State was directed to 
 purchase. Your Committee haVe ascertained that tho-Bank of Charleston 
 never has made any purchase of State Bonds in tlie London or European 
 market. Their purchases were of Rail Road Bonds. 
 
 It is, perhaps, proper that your committee should state the manner in 
 which this mistake occurred, and which prompted the Honorable member 
 to make the unfounded accusation embodied in the Resolution introduced 
 by him and referi-ed to your committee. A letter had been received by a 
 Senator from the President of the Charleston Bank, stating that their 
 agent in London was" going on executing their order fOr South Carolina 
 Bonds, and had made purchases at 80^ and 80|. This letter was read in 
 the presence of the mover of the Resolution, and he supposed, as well as 
 the Senator to whom it was directed, that '• South Carolina Bonds" were 
 the State Bonds. The only purchase of State Bonds made by the Bank of 
 Charleston, was in South Carolina, and for which they paid as high as 99 1 
 cents. 
 
616 REPORTS OF COMMITTEES 
 
 For a more full and detailed account of this whole matter, your Com- 
 mittee would refer to the correspondence and communications herewith 
 reported. 
 
 All of which is respectfully submitted. 
 
 B. F. PERRY, Chairman. 
 
 Cohtmbia^ Decemhcfr 5, 1847. 
 To H. W. Conner, Esq. Pres. Bank of Charleston. 
 
 Dear Sir : — On my arrival here, I find a resolution, submitted by Hon. 
 J. M. Felder, in the Senate, on Tuesday last, of which I enclose a copy, 
 has been referred to the Committee on Banks and Finances. This resolu- 
 tion is an impeachment and censure of the President and Directors of the 
 Bank of the State, predicated on facts said to have been derived from the 
 operations of the Bank of Charleston, which institution, it is said here, has 
 purchased £5,000, more or less, of the Fire Loan Bonds of the State 
 somew .ere in England, at 80^ per cent. 
 
 This information, if it emanated from your institution, will, I suppose, 
 be as fairly due in this case to me, as to any other person out of the direc- 
 tion, under all the circumstances. T am personally a stockholder ; and the 
 President and Directors thus held up to censure, are, I believe, the largest 
 stockholders in the Bank of Charleston. The information I ask for, is to 
 defend, not assail ; and I feel assured, that you will take pleasure in giving 
 all the facts that will exhibit the entire transaction, and enable justice to 
 be done to all concerned. 
 
 I remain, with great respect, 
 
 Your obedient servant, 
 (Signed) F. H. ELMORE. 
 
 Pres. of the Bank of the State of So. Ca. 
 
 Bank of Charleston^ S. C. ) 
 Dec. 7, 1847. \ 
 
 Col. F. H. Elmore, Columbia, S. C. 
 
 Dear Sir : — Your favor of the 5th was received last night, and I have 
 duly noted its contents. 
 
 By my last report, which I now send you, the amount of Louisville, Cin- 
 cinnati and Charleston Rail Road Bonds guarantied by the State of South 
 Carolina, held by this Bank on the 1st July last, will be seen, with the 
 average cost of the whole. Since that time we have purchased in England, 
 £19,000 of the same bonds, viz : £1,500 in July last, at 85, £12,000 in 
 September, at 83^, and in November, £3,250 at 80^, and £2,250 at 80f . 
 
 We have never purchased or held any of the Fire Loan Bonds. 
 
 The late purchase of the Louisville, Cincinnati and Charleston Rail 
 Eoad Bonds, guarantied by the State, may have been spoken of out of 
 
ON FINANCE AND BANKS. 617 
 
 doors, or been alluded to in private correspondence, for purposes pertaining 
 exclusively to the private aflairs of the Bank, but no information has been 
 asked for, or given by the Bank, or any of its officers, to be used in any 
 shape or form whatever, either for or against the President and Directors of 
 the Bank of the State, in any controversy whatever, that might arise. On 
 the contrary, our object and intention has ever been to confine ourselves to 
 our own proper business, and keep aloof from every thing of a political or 
 partizan character ; and I very much regret that our name has been intrO' 
 duced on the present occasion. The facts are. however, as stated above, 
 and I communicate tliem as an act of duty. 
 
 Very respectfully yours, &c. 
 
 R W. CONNER, President. 
 
 Ban):, of CJucrlestoyi^ So Ca. 
 Tuesday night, Dec. 7, 1847. 
 Col. F. H. Elmore, Columbia, S. C. 
 
 Dear Sir : — In my letter to you this morning, I said " we have never 
 purchased or held any of the Fire Loan Bonds." This is correct as to our 
 purchases in England, but I find we hold £4,000 of these bonds purchased 
 by us at $4 82 the pound sterling, at the Master's sale of Stoney's effects 
 in Charleston, in 1845. You will see the item in the Cashier's statement 
 referred to in my report of July, 1 847, as No. 2, and stated thus : " State 
 5 per ct. sterling Bonds — $19,280." The error is not a very material one, 
 but I hasten to make the correction. 
 
 Very respectfully, yours, &c. 
 
 H. W. CONNER, President. 
 
 Ba7ik of tJie State of South Carolina, 
 , " Charlesto7i,Dec 2d, 1847. 
 
 Dear Sir : — In reply to your enquiry, I would state, that we receive fre- 
 quent|reports of the prices of American stocks in London, from both of our 
 correspondents, viz : Messrs. Baring, Brothers & Co. and Messrs. C. J. 
 Hambro & Son. I have examined these reports anew, and not only do 
 not find any quotations of our State Bonds at 80, but do not find them re- 
 ferred to as being in market at all, unless. the report of the prices of stocks 
 by Messrs. Barings, of 3d June, be so considered. In that report, howev- 
 er, the quotation is 85 buyers, 90 sellers ; and I regard it only as an opin- 
 ion of what would ba the valuation of the stock, if any were in market. — 
 Messrs. Hambro & Son have, at different times, stated that none of our 
 State bonds were to be found in market. During the past season, we have, 
 from time to time, transmitted to our agent in London, Messrs. Hambro & 
 Son, large amounts of exchange. 
 
 For the earlier portion of the funds forwarded, we directed remittances 
 of specie, as at that period of the yeal* we could obtain our returns shipped 
 direct to this city, and avoid the additional cost of transshipment through 
 a northern port. But the amount of funds we forwarded, considerably ex- 
 ceeded the amount of our orders for specie, and we have, therefore, drawn 
 upon them for upwards of £15,000, the whole of which our correspondents 
 might have applied to the purchase of bonds, had any offered in market. 
 
 We have funds also in the hands of Messrs. Barings, which we would 
 have made available to such purchases. But even if we had no funds in 
 actual possession of our agents, there would have been no difficifity, on 
 
 78 
 
618 
 
 KEPORTS OF COMMITTEES 
 
 their part, of making purchases of State bonds, in conformity with, the 
 standing instructions given them, to purchase on our account. This will 
 be evidenced by the following extract from their letter of 18th May, 1847 : 
 " If, however, you should find it advisable to take advantage of the rise in 
 sterling, you are at liberty to draw on us 60 d. sight, to the extent of twen- 
 ty thousand Pounds, which you may coyer when you hear of our having 
 shipped the 25 m. Sovereigns." 
 
 You are aware, also, that Messrs. Hambro & Son hold the Rail Road 
 Bonds owned by the Bank, to the amount of £10,750 sterling; and the 
 bonds which they may at any time purchase on our account, remain in 
 their hands until they are refunded for their advances, so that there can 
 be no hesitation on their part, to make such purchases, whenever an oppor- 
 tunity offers for obtaining State bonds. 
 
 Our desire to obtain these bonds has been so frequently manifested to 
 our agents in London, that I do not think they would have failed to pur- 
 chascj if any had been offered for sale, at or under 90. 
 
 Your most obedient. 
 
 C. M. FURMAN., Cashier. 
 
 F. H. Elmoue, Esq: 
 
 Pros. Bank State So. Ca. 
 
 PURCHASES 
 
 Of Louisville, Cincinnati and Charleston Rail Road Company Bonds, pay- 
 able in London, made by the Bank of the State of South Carolina, through 
 C. J. Hambro & Son, of London. 
 
 1842" 
 
 
 
 
 
 
 July 
 
 20 
 
 Amount 
 
 purchased 
 
 £750 
 
 at 75 
 
 u 
 
 22 
 
 do 
 
 do 
 
 1,250 
 
 76 
 
 Aug. 
 
 15 
 
 do 
 
 do 
 
 750 
 
 76| 
 
 u 
 
 u 
 
 do 
 
 do 
 
 2,000 
 
 761 
 
 Sept. 
 
 2 
 
 do 
 
 do 
 
 500 
 
 77i 
 
 u 
 
 27 
 
 do 
 
 do 
 
 1,000 
 
 . 77i 
 
 Dec. 
 
 3 
 
 do 
 
 do 
 
 1,250 
 
 78i 
 
 1843 
 
 
 
 
 
 
 Aug. 
 
 3 
 
 do 
 
 do 
 
 2,500 
 
 86^ 
 
 u 
 
 26 
 
 do 
 
 do 
 
 750 
 
 86i 
 
 
 r^n '7kc\ 
 
 
 PURCHASES 
 
 Of Bonds of the State of South Carolina, payable in London, (Fire Loan) 
 made by the Bank of the State of South Carolina, through C. J. Hambro 
 & Son, of London. 
 
 1842 
 
 
 
 
 
 
 Sept. 
 
 19 
 
 Amount 
 
 purchased 
 
 £5j000 
 
 at 83 
 
 u 
 
 17 
 
 do 
 
 do 
 
 500 
 
 77-1 
 
 1843 
 
 
 
 
 
 
 Aug. 
 
 3 
 
 do 
 
 do 
 
 500 
 
 89 
 
 1844 
 
 
 
 
 
 
 Jan. 
 
 29 
 
 do 
 
 do 
 
 1,500 
 
 89 
 
 
 £7,500 
 
 
ON FINANCE AND BANKS. 619 
 
 CORRESPONDENCE, 
 
 And extracts from correspoiideace^ between F. H. Elmore^ President of 
 tlie Bank of tlie State of South Carolina, and various persons in 
 Europe and America^ in regard to the purchasing of State Stocks in 
 England. 
 
 PRESIDENT TO C4ENERAL HAMILTON. 
 
 Bank State South Carolina, ) 
 Charleston, April 9, 1840. \ 
 
 Dear Sir : — The Bank arails itself of your visit to England, to rquest 
 your services in making some fiscal arrangements in that country, for facili- 
 tating its business. We wish to establish an agency with some banking 
 concern, the duties of which will be of the character usual in such connex- 
 ions, to wit : — to collect bills or other demands, which may, from time to 
 time, be remitted to them, to meet such exchanges as we may draw on them, 
 and to make remittances or investments, if we may wish them made. We 
 desire, also, to establish a limited credit on which we may be at liberty to 
 draw, whenever we may deem it advisable. 
 
 If an opportunity offers for establishing such an agency, with any pri- 
 vate or chartered Banking Company of established credit, upon terms of 
 reciprocal advantage, you are authorized and empowered to conclude such 
 arrangements as you, in your best judgment, may approve. 
 I am, sir, with great respect, 
 
 your ob't. servant, 
 (Signed) F. H. ELMORE, President. 
 
 Letter of instructions from F. H. Elmore, President of the Bank oftJie 
 State of Smith Carolina, to Leon Ilerckenrath, Esq. 
 
 Bank State South Carolina, ) 
 Charleston, 3d August, 1841. \ 
 
 Dear Sir : — It is supposed that in the present depressed state of Ameri- 
 can Stocks, that the Bonds of this State, sold by Gen. McDuffie to Messrs. 
 Baring, Brothers, & Co. and bearing an interest of 5 per cent, might be 
 purchased in upon terms of advantage. The Board of Directors of this 
 institution, being desirous of withdrawing, as much as practicable, from 
 Europe, the debt of this State, are disposed, if the prices will justify 
 them in it, to purchase, of these Bonds, from time to time, such amounts 
 as the prices and their jneanS will render advisable. 
 
 To do this with the best advantage, they must have the benefit of some 
 confidential assistant to make inquiries and arrangements for the of)eration. 
 
620 REPORTS OF COMMITTEES 
 
 Mr. Lowndes, of your house, lias suggested to me and the Board,^^that yon 
 will probably be in London about the time this letter would reach there, 
 and that I may so far trespass upon your attention, as to devolve these in- 
 quiries and arrangements on you. 
 
 1 have, therefore, by direction of this Board, acted upon his suggestion, 
 and noiif proceed to lay before you our wishes. 
 
 The bonds, you are aware, are what are familiarly known as the Fire 
 Loan, for rebuilding the City of Charleston. We see no quotations of 
 their value in market, but it is known to us that the Rail RoadJBonds 
 guarantied by the State, have been sold there below 80. If our (the 
 McDuffie) bonds can be had from 80 to 90, we will begin to purchase, and 
 ten thousand dollars are hereby placed at your disposal to begin the opera- 
 tion with, in the form of a letter of credit on Messrs. Baring, Brothers 
 & Co. It may, however, be that the price of our bonds may rule so much 
 beyond those of the Louisville, Cincinnati and Charleston Rail Road 
 Company's Bonds, bearing the same interest, and guarantied by the State, 
 as to make it more advisable to buy them. You will, therefore, oblige us 
 by procuring all the information on these points necessary to enable us to 
 judge. The one would be an offset to the other, they being due before 
 ours, and payable, interest and principal, there. 
 
 We would also be glad to have all the information practicable, as to 
 what class of society hold our bonds, whether they are at all in speculators' 
 hands, or held for investment, and generally their credit and estimation. 
 As it is our intention to continue, from time to time, the operation of pur- 
 chasing our bonds, if their price and our means make it advisable, wc desire 
 to make provision for it through you, by an arrjingement negotiated with 
 some banking house of high credit — such arrangement, however, must be 
 subject to our confirmation; it may embrace not only the purchase of such 
 bonds as we may instruct them to buy, but the collection of such sterling 
 bills as we may, from time to time, send them for collection, the proceeds of 
 which may be invested in these bonds, or drawn against by us ; and also 
 should specify what rate of interest will be allowed us on our deposits, and 
 what commission or charge on each and every service rendered. Should 
 the terms prove acceptable to us, we may avail ourselves of the services of 
 such an agency, to some considerable extent Some of our banks, you 
 know, are turning their attention to such a business, and you will see by 
 the last report of that Bank, that the Bank of Charleston has now at her 
 disposal near a $1000,000 in the Bank of Manchester. 
 
 Our contract with the Messrs. Barings, established them as our agents to 
 pay the interest oii our bonds. To the extent necessary to meet that, we 
 should, of course, remit our bills to them, but should we establish an agency 
 to continue the purchase of these bonds, it is manifest that they should not 
 be at all apprised of our operations, as that would defeat our object, the 
 value of these bonds being enhanced by it, they being the largest holders. 
 Every precaution must, therefore, be taken, to keep out of view who are the 
 real purchasers — indeed, if it could be so arranged, it would seem best (and 
 therefore would be desirable to us) that your Charleston house should be 
 the ostensible purchasers, this institution furnishing the means, through 
 such sources as you may establish ; the arrangements, before being conclu- 
 sive, being first submitted to and approved by us^ 
 
 If this latter suggestion is practicable and meets your concurrence, it 
 seems to us to obviate many difficulties in our way, but it is thrown out as 
 
OF FINANCE AND BANKS. 621 
 
 a suggestion merely for your consideration, to be acted on or not, as you 
 decide. 
 
 If the latter suggestion is not practicable, and an agency for tlie Bank 
 be considered best, no precaution should be spared to preserve our being 
 interested a profound secret. All of these matters, however, are left to 
 your sound judgment and discretion. 
 
 Connected also with this matter, I should apprise you that Gen. Hamil- 
 ton was authorized by u« to make an arrangement, embracing a wider 
 scope of operations. 
 
 This the General accomplished with the house of James Morrison, but 
 the terms were not accepted by us — a copy is sent to you." The require- 
 ment to send all our exchange to them was against the contract with the 
 Messrs. Barings, and the last requirement, of the Comptroller General's 
 certificate, would not be complied with. 
 
 The commission of ^.per cent, on the debit side of the account, we con- 
 sider too high. 
 
 Very respectfully, 
 
 your ob't. servant, 
 (Signed) F. H. ELMOBE, President. 
 
 LEON HERCKENRATH TO HON. F. H. ELMORE, PRESIDENT. 
 
 Pam, Sci)t. 21, 1841. 
 
 Hon. F. H. Elmork, President. 
 
 Sir: — My partner, Mr. Charles T. Lowndes, will have informed you 
 that I had come' in receipt of your honored favor of 3i August, and I 
 requested him to assure you that I should immediately attend to your 
 wishes. 
 
 Your instructions with regard to an agency of your Bank to be establish- 
 ed in London, and further, for the purchase of the bonds negotiated by 
 Qen. McBuffie, have been duly examined. Considering the delicacy of the 
 matter, your being of opinion that the Bank had better not be known in 
 the purchase of Bonds, I have, until now, thought it necessary to divide 
 the business, namely, to inquire, first, for the conditions as to an agency to 
 be established; and, secondly, to learn from other parties, in the name of 
 Herckenrath & Lowndes, on what terms. bonds, could be purchased. 
 #* * * * #* # 
 
 I am now in treaty with the highly respected house of Messrs. C. J. 
 Hambro & Son, London, (reference Prime, Ward & King, New York.) to 
 whom I gave particulars, mentioning your institution, and requested them, 
 in the mean time, to get such information as should be desirable. I shall 
 await their decision. After all, I expect to be obliged to show your letter, 
 which shall be done, but with the prospect of success, and under the strict- 
 est secrecy. On the second head, I would beg to reply, that were I in 
 Europe for some time, I should have no objection to be the purchaser for 
 account of the Bank in London, which would keep the matter entirely a 
 secret. Were it known that the Bank was a purchaser, it migfct throw 
 
G22 * KEPORTS OF COMMITTEES 
 
 difficulties in your way. Messrs. Kracatlcr & Meisville have already offer- 
 ed to act in the name of Herckenrath & Lowndes ; this house enjoys an 
 excellentand well deserved credit. The following is the information I 
 have obtained from sundry quarters, which generally agree in substance. 
 
 The Loan of General McDuffie is understood to have been, in all, about 
 £250 milli sterling, of which £40 milli remain in Messrs. Barings' hands, 
 held by them at 90, perhaps 89^, the price at which their last sales was 
 effected ; previous sales were made by them from 88 and upwards, to 89| ; 
 what has been sold being chiefly for investment, bought by American resi- 
 dents in England. , 
 
 It is seldom that any of this stock appears in the market. Gen. Ham- 
 ilton's loan, sold to Messrs. Palmer, McKillop, Dent & Co. can be pur- 
 chased of Messrs. Palmers, at the rate of 88 per cent. They have been 
 hitherto at about 2 per cent, below the price at which Messrs. Barings' 
 bonds were sold. Of this latter description of stocks, now and then par- 
 cels appear in the market, and they are quoted nominally at 83, and it is 
 thought that if the market be properly watched, occasional purchases may 
 be made at favorable prices 
 
 The mode of purchase would depend upon the amount to be bought — 
 were it a considerable one, I should think it could only be effected in treat- 
 ing through a broker with Messrs. Baring or Palmer. Is the amount to 
 be purchased- only small, I advise an opportunity to be watched for, till 
 some stockholder desirous of realizing, appears in the market. 
 
 Operations of this kind, namely, such as purchasing American Stocks in 
 the market, could not be effected otherwise than- for ready money, and 
 with remittances in hand, for which a commission would be charged of ^ 
 per cent, and brokerage \ per cent — the present moment is thought favora- 
 ble for the undertaking. Being told that there might be some of the 
 stock here, I inquired of the bankers on my arrival, but was answered in 
 the negative. I shall return to London, and continue to advise you, as 
 soon as I shall know the determination of Messrs. C. J. Hambro & Son. 
 I renjain, sii*. your ob't. servant, 
 (Signed) LEON HERCKENRATH. 
 
 Extract. 
 C. J. HAMBRO & SON TO LEON HERCKENRATH. 
 
 [Conjidential.'} LondG?t, Oct. 20, lSi\. 
 
 Leon Herckenrath, Esq., Charleston: 
 
 Dear Sir — ****** With 
 
 regard to the South Carolina Bonds, there has not been a bargain in them 
 for months past, when we understand the rate was 85 per cent. If a sale 
 was attempted, which could only be done by offering the stock in the mar- 
 ket, we doubt whether 75 per cent would be obtained. On the other hand, 
 
; ON FINANCE AND BANKS, (593 
 
 if a purchaser went openly in the market, the pretensions would probably 
 soon be raised to 85 per cent. We see but one way to operate in this busi- 
 ness, which would be to watch the market attentively, and thus secure 
 such amounts as may occasionally appear. We' think the preceding will 
 be found a reply to all inquiries of the Bank, relating to Stock transactions. 
 We remain', dear sir, 
 
 Yours very truly, 
 (Signed) G. J. HAMBRO & SON. 
 
 LEON HERCKENRATH TO PRESIDENT. 
 
 London^ July '^'^^\M2. 
 F. H. Elmore, Esq. President, &c. 
 
 Dear Sir, — In virtue of the authorit}^ received from you, under date of 
 the 1st June, 1842, I have the honor to inform you, that I have this day 
 concluded an arrangement with the very respectable house of Messrs. C. J. 
 Hambro & Son, of this place, by which they have agreed to act as agents 
 for^the Bank of the State of South Carolina, on the conditions as expressed 
 in the said authority, and which have been included in a contract, for the 
 sake of regularity, the original of which is herewith sent to you by lyTessrs. 
 C. J. Hambro & Son, to whom I have given the following documents which 
 I received from you. 
 
 No. 1. — Your power of attorney, or letter of authority, certified by the 
 British Consul at Charleston, dated 1st June, 1842. 
 
 No. 2. — Order of the Court for the investment of funds belonging to 
 Minors, into the stock of the General or State Government, and certified by 
 the British Consul. 
 
 No. 3. — Certificate of the British Consul, Wm. Ogilby, Esq. as to tho 
 standing of the Bank of the State of South Carolina. 
 
 No. 4. — Your letter of the 1st June, 1842, expressing your wish to estab- 
 lish an agency in London. ■ ■> 
 
 No. 5. — Your letter of explanation witli regard to the liabilities of the 
 said Bank. 
 
 No. 6. — Your letter of instriictionrs, aft'er having succeeded in arranging 
 for an agency, to instruct said ageiils to purchase, for account of the Bank, 
 bonds of the Louisville, Cincinnati and Charleston Rail Road Company, 
 guarantied by the State of South Carolina, at not exceeding 80 per cent, 
 and the bonds of the_State of South Carolina, at not exceeding 85 per 
 cent. 
 
 I must acknowledge, my dear sir, that this arrangement gives me much 
 pleasure, ^and I have no doubt that it will prove satisfactory to you. The 
 fact is, that the credit of the United States' institutions, bonds of sundry 
 States there, has been reduced to such a low ebb, that even the loan of the 
 United States cannot be disposed of on any terms, the want of confidence 
 being so great. I cannot but feel highly flattered and gratified at the faith 
 which Mr. Hambro has been pleased to attach to my statement, with re- 
 gard to your institution, and allow me to speak frankly, which can never 
 give offence, that however solid the South Carolina institutions are, however 
 well managed and deserving of confidence and credit the Bank of the State 
 of South Carolina may be, still every American liability has suffered in the 
 
624 REPORTS OF COMMITTEES 
 
 general destiuetion of credit at large. It is my duty to inform you that 
 Messrs. C. J. Hambro & Son are a house of f^rcat ivcalth^ never embarking 
 in any one oporation, or with any one institutian, or any one house or firm, 
 enough, in case of failure, to hurt them or their credit. 
 
 Mr. Hambro, whom I had the honor of knowing several years, has been 
 ever kind to me, he has always shown me much confidence, and withal 
 that, is a very particular man in business. He is, if I may so express my- 
 self, of the "good Dutch School ;" he is ready to show you all the confidence 
 you may desire, but at the same time ver^^ rigid in his transactions, and I 
 have no doubt that as you get better acquainted together, I shall derive 
 much satisfaction from the connexion which I have thus opened. The fact 
 is, that it must be of great importance to your institution to know, that sup- 
 pose you had all your assetts in the hands of Messrs. C. J. Hambro & Son, 
 you, and all your co-directors, might sleep, without liaving any occasion for 
 uneasiness. Another great advantage is, to have a respectable house, at 
 
 any time, to protect your paper. 
 
 * #' # '#■*'-# # # 
 
 I remain, my dear sir, 
 
 with great esteem, 
 
 your ob't. servant, 
 (Signed) LEON HERCKENRATH. 
 
 EXTRACT OF ARTICLES OF AGREEMENT WITH C. J. HAM- 
 BRO & SON. 
 
 4th. To purchase for and on account of the said Bank, the Sterling 
 Bonds of the State of South Carolina, or of the Louisville, Cincinnati and 
 Charleston Rail Road Company, guarantied by the State of South Carolina, 
 within such rates and terms as may from time to time be directed ; provided 
 the Bank have of funds in the hands of C. J. Hambro & Son, applicable 
 to such purchase, one fifth, or 20 per cent, of the price to be paid, the bal- 
 ance, or 80 per cent, to be advanced by the said agents, and the bonds 
 to t>e held as security upon the payment of the same, as hereafter specified. 
 
 5th. To purchase, if they see a favorable opportunity, and are then ivill- 
 ing- to make the advance for it, any amount of the bonds of the State of 
 South Carolina, within such limits as may from time to time be prescribed 
 by said Bank. Provided such purchases shall not at any one time exceed 
 (£l5,0d0) fifteen thousand pounds, until the same have been communicated 
 to the Ba!ik, and further purchases assented to and directed ; all which pur- 
 chases shall be binding on the Bank, and the money so advanced shall be 
 replaced by the Bank as follows, viz :. 20 per cent, or one fifth, with all rea- 
 sonable dispatch, after being notified by them, and the balance, or 80 per 
 cent, as hereinafter provided in Article 11, the bonds remaining with the 
 
 agency as security, until the whole amount is repaid. 
 
 » *■* * #'*■* # 
 
 1 1 th. All advances by the said agency of eighty per cent for the pur- 
 chase of the bonds, provided for above, shall be covered by the Bank of the 
 State, within six to twelve months, and in case of failure to do so, the said 
 agents may, after giving notice to the said Bank of three months from the 
 time such notice is sent by the Mail Steamer, proceed to sell so much of the 
 
ON FINANCE AND BANKS. 625 
 
 said bonds as will reimburse their advances, interest, and reasonable expen- 
 ses, and then return the overplus and balance of the bonds to said Bank 
 or its agent, duly authorised to receive them. 
 
 PRESIDENT TO LEON HEEtlKENRATH. 
 
 Bank State op South Carolina, ) 
 ~ Charleston, 2Gth July, 1842. \ 
 
 My .Dear Sir,—1 have before me- the" circular of Messrs. Baring, Broth- 
 ers & Co.y of the 4th instant. In this, is the following quotation, " South 
 Carolina Sterling, Palmer's 5 per cent. 75." • 
 
 It will clearly be a good operation for us to purchase these bonds, if 
 they can be got at that rate. " They are redeemable earlier than ours, and 
 although not^so desirable as our own, any considerable difference of price 
 will compensate us for preferring them. " Let me, therefore, ask you to 
 turn your attention to them as well as our own bonds, and prepare the 
 way for us, should we resolve to buy them. I shall wait to have your 
 views on this point, before giving any definite instructions in regard to 
 them. 
 
 I shall look now anxiously for your first letters, which I hope will give 
 us more favorable accounts than the general aspect of affairs would seem to 
 promise. 
 
 I remain with great respect, 
 
 (Signed) F. H. ELMORE, President. 
 
 To Leon IIerckenrAtTH, Esq., London. 
 
 C. J. HAMBRO & SON TO PRESIDENT. 
 
 London, 23d, July, 1842. > 
 2d August .\ 
 F. H. Elmore, President. 
 
 Dear Sir, — As a commencement of our operations, and in conformity 
 with your orders, transmittcjd to us in your letter addressed to Mr. Herck- 
 enrath, mentioned before under No. G, authorizing us to purchase the bonds 
 of the State of South -Carolina, at a price not exceeding (85) eighty-five 
 pounds for every hundred pounds, and the bonds of the Louisville, Cin- 
 cinnati and Charleston Rail Road company guarantied by' the State of 
 South Carolina, at a price not exceeding (80) eighty pounds for every hun- 
 dred pounds, we have succeeded in purchasing, at a price considerably 
 Tinder your limits, (£2,000) say two thousand pounds sterling, bonds of the 
 Louisville, Cincinnati and. Charleston Rail Road company, guarantied by 
 the State of South Carolina, as follows : 
 
 On the 20th July £750 a 75 per>cent £562 10 
 
 Brokerage ' 1-4 ' • • 1 17 G 
 
 And on the 22d July £1,250 a 76 per cent 
 Brokerage '1-4 ' ' 
 
 564 
 
 7 6 
 
 £950 
 3 
 
 2 6 
 
 £953 
 
 2 6 
 
 79 
 
^26 llEPORTS OF COMMITTEES 
 
 which amount we carry to the debit of the Bank of the State of South Car- 
 olina, under the respective dates as above. 
 
 These Bonds, as well as those of the State of South Carolina, are but 
 seldom offered for sale in our market, owing, principally, to the established 
 credit of the State ; however, we trust that, by vigilantly watching favora- 
 ble opportunities, we may be enabled to extend our operations to the satis- 
 faction of the Bank. 
 
 -'# # * ## * # # 
 
 We have the honor to be, dear sir. 
 
 Your ob'd't servants, 
 (Signed) ' J. HAMBRO & SON. 
 
 PRESIDENT OF THE BANK OF THE STATE OF SOUTH CAR- 
 OLINA TO C. J. HAMBRO & SON, LONDON. 
 
 Charleston^ 2M August^ 1 842. 
 
 Gentlemen : — I had the pleasure of receiving this morning, your esteem- 
 ed favor of 23d July, 2d xiugust, per Britannia, covering the letter of Mr. 
 Leon Herckenrath, and the contract made by him as the agent of this in- 
 stitution with your respected house, for the transaction of the busines spe- 
 cially set forth in said contract, which is dated 23d July, 1842. 
 
 This contract is in strict conformity to the powers given Mr. H. and is, 
 therefore, ratified and confirmed. I cannot forbeat to express my great 
 satisfaction at this connexion, which, under all the circumstances of the 
 times, affords me more than ordinary pleasure. I trust it will, in its whole 
 extent, prove as advantageous in its results, as the commencement has been 
 entirely satisfactory. The purchases you have already made of the £2,000 
 of the Louisville, Cincinnati and Charleston Rail Load bonds, guarantied 
 by the State of South Carolina, are more favorable than we counted on 
 when we authorized the transaction, although more recent advices led us 
 to expect a reduction, of rates. 
 
 While we would prefer the bonds of the State at 2 to 5 per cent higher, 
 still we will be pleased at the continuance of purchases of Louisville, Cin- 
 cinnati and Charleston Rail Road company bonds, upon such terms as you 
 have obtained these at. Accompanying this, will be a bill drawn for 
 Messrs. Herckenrath, Lowndes & Co. on Messrs. Baring, Brothers & Co. 
 for four thousand pounds sterling, (£4,000) to be placed to our credit for 
 these and such other purchases as you may make. 
 
 The extent to which we may be willing to go, will depend to a great ex- 
 tent on the terms we may be able to purchase at ; should they continue as 
 they have commenced, we will endeavor to extend our means in that direc- 
 tion. 
 
 I shall be more than pleased to hear from you, as you kindly propose, by 
 the packets, on the state of your markets, and the prospects for the accom- 
 plishment of our views. 
 
 I am, gentlemen, 
 
 Your obedient servant, 
 
 (Signed) F. H. ELMORE. 
 
ON FINANCE AND BANKS. 627 
 
 EXTRACT FROM SAME TO SAME. 
 
 We would also be obliged, if you would advise us as to the probability of 
 your being able to get any of our own State bonds. If we could obtain of 
 them, we would prefer it, but not at too great a difference. There have been 
 some sent home and offered for sale, but I have not learned that they have 
 been disposed of You will oblige us by giving us, in your price current, 
 the price of our State stocks. While we feel an interest in all the stocks in 
 your market, that felt in our own and sister States is greatly predominant. 
 On the 23d August last, Mr. C. M. Furman, our Cashier, transmitted to 
 you, through Messrs. H. & Lowndes, four thousand pounds (£4,000) to be 
 placed to our credit. We have not .yet been advised if it has been received 
 by you. . - . ' . ' 
 
 (Signed) F, H. ELMORE, Pres 
 
 Exiracls. 
 C. J. HAMBRO & SON TO PRESIDENT. 
 
 London^ \^th September^ 1842. 
 {Pe7- Columbia.) 
 F. H. Elmore, Esq. President. 
 
 Deaf Sir:-^* * * * * * * 
 
 We have credited the Bank of South Carolina for the bill of four thousand 
 pounds, remitted to us by your said letter, say, £4,000, on Baring, Broth- 
 ers & Co. due 19th September. After having been unsuccessful iri our 
 endeavors to purchase the State stock of South Carolina for a considerable 
 time, it gives us much pleasure, in being able to advise by the present, that 
 on receipt of your letter, were enabled to meet your views by purchasing 
 of Messrs. Baring, Brothers & Co. five thousand pounds South Carolina 
 State stock, say - . ' 
 
 £5,000 a 83 per Cent. . £4,150 . 
 
 Brokerage ' 12 10 
 
 £4,162 10 
 for which we debit the bank, due 16th September ; and have further to ad- 
 yise a purchase of five hundred Louisville, Cincinnati and Charleston Rail 
 Road company stock, say 
 
 £500 a 77^ per cent. £387 10 
 
 Brokerage 1 5 
 
 I 
 
 £388 15 
 likewise to the debit of the Bank, due 17th September. 
 
 (Signed) €. J. HAMBRO & SON. 
 
 PRESIDENT TO C. J. HAMBRO <& SON. 
 
 Bank of the State So. Ca. 
 Charleston^ Oct. 29, 1842. 
 To Messrs. C. J. Hambro & Son. 
 
 Geritlemefi : — The above is a copy of my letter to you of the 6th Oct, 
 
(528 KEPOliTS OF COMMITTEES 
 
 inst. Since tliexi, I have your favors of the 19th September by the Colum- 
 bia, and of the 3d October instant, per Britannia. I am pleased to learn 
 through yours of the 19th September, that you have received the £4.000 
 transmitted to you by bill in favor of Herckenrath & Lowndes, on Bar- 
 ing, Brothers & Co. due 19th September, and credited to our account that 
 day. In the same, viz. 19th September, you apprized us of the purchase 
 on our account, of £5,000 of State sterling 5's, of Baring, Brothers & Co. 
 at 83; of £500 Rail Boads bonds at 77|, netting £4451 5. And in yours 
 of the 30th inst. of a further purchase £1,000 Bail Boad Bonds at 77^, 
 netting £775 ; all of which are satisfactory. We have very much. desired to 
 have some of the States sterlings, and therefore are content to pay 83 for 
 those purchased ; but having now a nucleus, while the Bail Boad Bonds 
 rule at 75 to 71^^ we woul'd not desire to purchase the State sterlings at 
 more than 80 or 81 at most. The difference is so great, as to well warrant 
 us in preferring the Bail Boad bonds at such rates ; but if the. State bonds 
 can be got at or under 80, pray go as far as £10,000 at any time. In reply 
 to that part of yours of the 19th September, relating to the rates and 
 amount we now wish purchased, I would say, that we do not propose to 
 limit our operations to £15,000, but, as you surmise, to go beyond, if the 
 present or better rates can be had. At 75 for Bail Boad, and 77^ to 80 
 for State bonds, we would not hesitate to strain every nerve to, cover any 
 purchase you might make ; and at present rates, we are not disposed to 
 check the course of operations, which you have sp far conducted so judi- 
 ciously, and so much to our satisfaction. 
 
 But while we are satisfied with prices as they are, and approve of your 
 idea of picking up, as the market offers, these stocks at rates not exceeding 
 those heretofore paid, we are not, in the present deranged condition of trade 
 ^ and money matters, prepared to draw out mwe sellers by rating the rates. 
 Until we see our way clearer through the present embal-rassments, we pre- 
 fer matters going on they have done so far. 
 
 The rate of exchange. on Eul-ope is low, and falling, and we' shall endeav- 
 or to lay in a good stock for operations in our moderate way. 
 I remain, gentlemen. 
 
 With great rdspect, 
 
 Your obedient servant, 
 F. H. ELMOBEjPres 
 
 Extract. 
 C. J. HAMBRO & SON TO PBESIDENT. 
 
 London,' \Sth October, 1842. 
 (Per Caledonia.) 
 F. H, Elmore, Esq. President. 
 
 Dear Sir:— * * * # * * 
 
 None of your stock has been offered in the market since we had this plea- 
 sure, nor have we been morfe fortunate with our friends on the continent. 
 These securities appear to be in steady hands, and we await your views in 
 reply to our letter of 19th September, before we proceed to raise the prices, 
 
 so as to induce the holders to come forward. 
 
 # # # # # * 
 
 (Signed) C. J. HAMBBO & SON 
 
ON FINANCE AND BANKS. 629 
 
 FROM SAME TO SAME. 
 
 -^London^ ?>rd November^ 1842. 
 F. H. Elmore, Esq. President. 
 
 Deaf Sir : — Since we had this* pleasure, we have not heard of a single 
 bargain having been done in either of the stocks of your State ; we have 
 consequently no purchase to advise, nor can we give you any quotations of 
 prices. If nothing offers, it would only be increasing the steadiness of the 
 holders to force the market, and before we venture this step,. We e;x:peot 
 your instructions in this regard. ' * * 
 
 # - .# 
 
 (Signed) C. J. HAMBRO & SON. 
 
 • Extract. 
 
 LEON HERCKENRATH TO PRESIDENT. 
 
 London^ November 17 th, 1842. 
 F. H. Elmore, Esq. 
 
 Mi/ Dear Sir : — There are no South Carolina stocks at present offering 
 in market; the transaction must be proposed by letter, for should Messrs. 
 Hambro & Son offer to purchase, the rate would be soon beyond our reach ; 
 you may rest assured, that if any favorable offer comes forth, these gentle- 
 men will embrace the opportunity. # * * 
 Remaining, Dear Sir, 
 
 Your, &c. 
 (Signed) LEON HERCKENRATH. 
 
 C. J. HAMBRO & S0N-J:0 1?. H. ELMORE, PRESIDENT. 
 
 , London, ISthNovembe^^j 1842. 
 
 Dear Sir : — There has been no business transacted in South Carolina 
 stocks since our last, and at present we see no chance of obtaining any. 
 Your obedient servants, 
 (Signed) C. J. HAMBRO & SON. 
 
 C. J. HAMBRO & SON TO F. H., ELMORE, ESQ. PRESIDENT. 
 
 LoTidon, Srd December, 1842. 
 Dear Sir : — South Carolina Rail Road, as well as State stock, is as 
 scarce as ever ; and we have only succeeded, since our last, in purchasing 
 twelve hundred and fifty pounds in sterling bonds of Louisville, Cincinnati 
 and Charleston Rail Road^company, say 
 
 £1,250 a 78i per cent -.£978 2 6 
 
 Brokerage i per cent > 3 2 6 
 
 £981 5 
 
 for which we have debited the bank's account. Before we have your in- 
 structions on this point, we will not begin to enforce our purchases of stock 
 but only continue buying that which occasionally presents itself on mode- 
 rate terms. . ~ 
 
 Remain, Dear Sir, 
 
 Yours, &c. &c. 
 (Signed) C. J. HAMBRO & 3K)N. 
 
630 llEPORTS OF COMMITTEES 
 
 C. J. HAMBRO & SON TO F. H. ELMORE, ESQ. PRESIDENT. 
 
 London, 'ird Feb 1 843. 
 
 Our contimx^d exertions to proctire some of your State Stock at reason- 
 able pricey, remain as fruitless as stated in our last. The Louisville, Cin- 
 cinnati and Charleston Rail Road Stock, is held firmly at 85 per cent, and 
 for State Bonds, we should have to pay 9G per cent. These prices are so 
 far beyond your expectations, that we are obliged to pause in our opera- 
 tions, until we again hear from you, unless prices should decline in the 
 -meantime. While the Stocks of your State enjoy such high credit, those 
 of the North American States in general have suffered considerably, and 
 prices, in consequence, have receded still further. 
 
 HAMBRO & SON TO PRESIDENT. 
 
 London, 3rd April, 1843. 
 
 Dear Sir : — Your stock is still too high in our market, to permit us to 
 act upon your limits. 
 
 We have the honor to remain 
 
 with regard, your ob'dt. servants, 
 (Signed) C. J. HAMBRO & SON. 
 
 . ' FROM SAME TO SAME. 
 
 London, I8th Ajyril, 1843. 
 
 F. H. Elmore, President: 
 
 Dear Sir : — The market for your State Stocks is still in the same firm 
 position ; it is not to be obtained under 90 per cent, which is too far be- 
 yond your views. 
 
 South Carolina Sterlings 90 
 
 Rail Road ^ _ 85 
 
 Yours, &c &c. 
 (Signed) C. J. HAMBRO & SON. 
 
 FROM SAME TO SAME. 
 
 London, 3rd May, 1843. 
 Quotation of Stock. 
 
 South Carolina Sterlings '_ -.87,90 
 
 Rail [Road 85,7 
 
 (Signed) C. J. HAMBRO & SON. 
 
F. H. Eliviore, Esq. 
 Deao- Sir : — 
 
 ON FINANCE AND BANKS. 631 
 
 Extract. 
 HAMBRO & SON TO PRESIDENT. 
 
 London, l^th May, 1843. 
 
 * 
 
 The prices of South Carolina Stock are nominally without any altera- 
 tion, and we have not heard of any transactions having taken place.' "VYe 
 give you quotations at foot, as well as of oth( r American securities. 
 
 (Signed) C. J. HAMBRO & SON. 
 
 South Carolina . ^ _-- - - .87,90 
 
 Rail Road 85,7 
 
 FROM SAME TO SAME. 
 
 London, I9t/i June, 1843. , 
 
 * * * ^ ' 
 
 We have not heard of a single transaction in South Carolina Stock since 
 our last, although prices have gone up to 90 per cent; there is, however, 
 none in the market. 
 
 Your ob't. servants, 
 (Signed) C. J. HAMBRO & SON. 
 
 FROM SAME TO SAME. 
 
 Lojtdo?t, drd July, 1 843. 
 
 ij; * * -^ 
 
 In American securities no transactions have taken place, with tlie excep- 
 tion of New York 5 per cent Stock, at 85 per cent ; for Illinois there are 
 no buyers at 28 per cent. We have, therefore, no alterations to make in 
 our last quotations. In South Carolina, there is nothing doing, and prices 
 remain nominally the same. 
 
 Yours, &c. 
 (Signed) C. J. HAMBRO & SON. 
 
 Extract, 
 
 PRESIDENT OF BANK STATE SOUTH CAROLINA TO C. J. 
 HAMBRO & SON. 
 
 Charleston,^ August 9th, 1843. 
 Gentlemen : — 
 
 In my letter of the 5th January last, I adhered to the course of policy 
 in regard to the purchase of our bonds, indicated in my letter of the 29th 
 of October, 1842, for reasons therein expressed, and to which we beg to re- 
 fer you. Since then, the monetary and commercial affairs of this country 
 have undergone a great change, and we feel so much strengthened in our 
 condition, as to be able to assume a more decided course in regard to the 
 
G32 REPORTS OF COMMITTEES 
 
 purchase of our bonds. You are, therefore, authorized to raise your rates 
 if you deem it advisablOi as far as 85, or even, 87 for our State Bonds ; and 
 83, or even 85 for South Western Rail Road Bonds, guarantied by this 
 State ; and if you could, by the 1st November, purchase us of the State 
 Bonds, as much as £10,000 at 88, if they cannot be got lower, we would 
 be highly pleased at the operation. 
 I am, gentlemen, 
 
 with great respect, 
 
 your ob't. servant, 
 
 F. H. ELMORE, President B. S. S. C. 
 
 HAMBRO & SON TO PRESIDENT. 
 
 London^ Srd August. 1843. 
 
 Vea?- Sir : — To-day, we have the pleasure to advise our purchases for 
 your account of £2,500 Louisville, Cincinnati and Charleston Rail Road 
 
 Stock, at 86| per cent, making £2,162 10 
 
 Brokerage ^ per cent ^___ 6 5 
 
 £2,168 15 
 
 And £500 South Carolina State Stock, at 89 per cent £445 
 
 Brokerage ^ per cent -_ 1 
 
 o 
 
 £446 5 
 For which we have debited the account of the Bank. It was with the con- 
 currence of Mr. Caldwell that we paid these advanced rates, but not being 
 able to buy the State stocks to-day, under 91 per cent, we are again com- 
 pelled to remain inactive. 
 
 * 
 
 FROM SAME TO SAME. 
 
 London, 17 th August, 1843. 
 ^ * * * * * 
 
 "We are sorry to say_ that we had -no further occasion to continue our 
 purchases Of stocks for yoiir account, those which we advised you by our 
 
 last, being now 2 pei' cent, higker. 
 
 ^ . # * * * * 
 
 Yours, &c. 
 (Signed) C. J. HAMBRO & SON. 
 
 Postscript. 
 . HAMBRO & AND SaN TO PRESIDENT. 
 
 London, \lth August, 1843. 
 * ^ ^ ' * . * -. 
 
 South ^Carolina Stocks are nearly not to be had. Some begin to asl 
 
ON FINANCE AND BANKS. 633 
 
 par. Money being of little value, so people buy these stocks again as 
 investment. 
 
 FROM SAME TO SAME, 
 
 London, Uh Sept. 1843. 
 * * * ■ * # 
 
 This business will by no means interfere with the purchases of stock on 
 
 account of the Bank. We will continue to watch its interest closely in 
 
 this respect, and buy up whatever offers under your limits of State Stock, 
 
 up to £10,000 as you direct. At present, there is but little probability of 
 
 any business being done at your prices of 85 per cent, for Rail Road, and 
 
 87 to 8 per cent, for State Stock, the latter having gone up to 92, and the 
 
 former to 87-8 per cent. 
 
 ******* 
 
 South Carolina P. C •- 87 8 
 
 do. B. C. -_..- 92 3 
 
 (Signed) C. J. HAMBRO & SON. 
 
 HAMBRO & SON TO PRESIDENT. 
 
 LoTidon, 3cl Octobei'^ 1843. 
 
 The State of our Stock market has not altered since our last, and the 
 transactions are not considerable. A small amount of State Stock (South 
 
 Carolina) has changed hands at 92 per cent. 
 
 # * # * * . * # 
 
 Respectfully, &c. &c. 
 (Signed) C. J. HAMBRO & SON. 
 
 FROM SAME TO SAME, 
 
 i London^ ISth October^ 1843. 
 
 1 # # # * * # 
 
 We could not make any further purchases of South Carolina Stocks, as 
 these are only offered at an exorbitant price, and much hieher than your 
 Hmits. 
 
 We remain truly yours, 
 (Signed) C. J. HAMBRO & SON. 
 
 PRESIDENT TO HAMBRO «& SON. 
 
 Charleston^ Nov. \Othj 1843. 
 Messrs. C. J. Hambro & Son: 
 
 Gentlemen. — Referring to my letter of 6th October, duplicated above, I 
 beg leave to say to you that the Hon. J. H. Hammond, Governor of this 
 80 
 
634 REPORTS OF COMMITTEES • 
 
 State, has recently written to me, that he will recommend, by messao-e- to 
 our Legislature, that this Bank shall be wound up and withdrawn in seven 
 years, and its funds applied to pay the public debt. I repeat to you with 
 great confidence, that this measure cannot succeed ; in my opinion, there is 
 not the least chance for it. But still it may affect the credit of our stocks, 
 and depress them greatly in your markets. I wish you to be prepared, in 
 case such be the effect of his message, to purchase freely for us. If they 
 fall to or below 90, you may buy £20,000, and if as low as 85. as much as 
 £30,000; should they fall to 80, as much as £40,000 — making, however, 
 a discrimination of I a 2 per cent, between the State Bonds, and those of 
 the Louisville, Cincinnati and Charleston Riail Road Company. 
 
 Very respectfully, 
 (Signed) F. H. ELMORE, 
 
 President Bank State South Carolina 
 
 Extract. 
 HAMBRO TO PRESIDENT. 
 
 London, ^d Nov. 1843'. 
 F. H. Elmore, President: 
 
 Dear Sir.— * * * * * 
 
 The prices of American stocks you will find at foot ; there is a better 
 feeling for these securities in general, and some good business has been 
 transacted in the same,since our last. South Carolina Stock is scarce, and 
 ranges too high abov^ your limits. * * ♦ . * 
 
 Quotations of Stock. 
 
 South Carolina B. C 93 
 
 Rail Road P.- C -.89 90 
 
 )Signed) C. J. HAMBRO & SON. 
 
 PRESIDENT TO HAMBRO. 
 
 C/iarleston, 2dd Dec. 1843. 
 
 Messrs C. J. Hambro & Son: 
 
 Gentlemen.— # - * * * , * * 
 
 P. S. If you can engage any of our B. B. and Co. Bonds at 93 or un- 
 der I will be glad to get some £5000 at the highest rate or under. If at 
 or below £90, you may take all you can get. From 90 to 92 I would take 
 ^£10 000 ; below 90, refer to my letter of 10th November.. 
 
 HAMBRO & SON TO PRESIDENT. 
 
 London, Ath Dec. 1843. 
 
 Dear Sir :— In our letter of 18th November, of which we give yon » 
 
 copy herewith, we had the honor to give you our candid views upon th( 
 
 important question of winding up the affairs of your institution, and we 
 
 now learn by the receipt of your regarded favor of 10th November, that 
 
ON FINANCE AND BANKS. 635 
 
 such a measure has been actually recommended to your Legislature, by the 
 Hon. J. H. Hammond, Governor of the State. Although, as you confi- 
 dently express this proposal cannot meet with success, it may affect the 
 value of your securities^ We are, fcherefore, prepared, should such take 
 place, to operate upon your order, to purchase up to £20,000 at 90 per 
 cent ; £30,000 a 85 per cent, and to £40,000 if at 80 per cent, or lower, 
 making a difference of 1 or 2 per cent, between the State Bonds, and those 
 of the Louisville, Cincinnati and Charleston Bail Road Company. The 
 proposed measure of the Government not being known here as yet, these se- 
 curities maintain their former high position of 93 to 94 per cent ; even at 
 such prices it is a rarity to meet with any of the Stock in the market. 
 You may rely upon our watching the market closely, and availing of the 
 first opening for operating for the interest of the Bank. 
 
 We address you. as usual, in a separate letter to the Bank, upon the 
 running transactions, and have the honor to be, 
 With sincere esteem, 
 
 dear sir, your ob't servants, 
 (Signed) HAMBRO & SON: 
 
 F. Hr Elmore : 
 Dear Sir, — 
 
 BAMBRO & SON TO PRESIDENT. 
 
 London 3c?, Jan., 1844. 
 
 None of your State or Rail Road Stock is in the market. 
 
 FROM SAME TO SAME. 
 
 London, Uh March, 1844. 
 
 Some of these are lower in consequence of the accounts from New York, 
 but South Carolina Stock remains scarce, and as high as ever. 
 We are, with sincere regard, 
 
 dear sir, your most ob't. servants, 
 (Signed) HAMBRO & SON. 
 
 FROM SAME TO SAME. 
 
 London, 3*^ Aryril, 1844. 
 
 But in South Carolina Stocks we have not heard of a single transaction. 
 
 FROM SAME TO SAME. 
 
 London, ^d June, 1844, 
 
 Of South Carolina Stock nothing has appeared in the market. 
 
636 REPORTS OF COMMITTEES.^ 
 
 Quotation of Stock. 
 
 London^ \Bth June, 1844. 
 
 South Carolina, ^ 95 
 
 Alabama, 82 3 
 
 London, Bd August, 1844. 
 
 South Carolina,- -___ — 92 
 
 Rail RoJid, .--- 90 nominal. 
 
 C. J. HAMBRO TO PRESIDENT BANK STATE SOUTH CARO- 
 LINA. 
 
 London, ISth Sept. 1844. 
 
 South Carolina Stock does not come forward, and there has been no bu- 
 siness doing in it. - - 
 
 FROM SAME TO SAME. 
 
 Londm, IBtk Oct. 1844. 
 
 # * # ' * * * 
 
 Business in these securities is very slack, and no South Carolina either 
 State or Rail Road Stock is to be met with. 
 
 FROM SAME TO SAME. 
 
 London, Ath Nov. 1844. 
 * * * * We give at foot some prices of American securi- 
 ties, in which there is, however, very little stirring. South Carolina 
 Stock is not to be met with. 
 
 HAMBRO & SON TO PRESIDENT BANK STATE SOUTH CAR- 
 OLINA. 
 
 London, Sd Dec. 1844. 
 ****** 
 
 Some few days ago there was a small parcel of South Carolina Stock 
 offered to us. consisting of about £5000 of each sort, for which a high price 
 was asked. We might have bought them perhaps at 90 and 93 per cent, 
 but would not venture to do so for your account, it being above your limit, 
 and the last order you gave us being rather of old date. 
 
 I 
 
OF FINANCE AND BANKS. 687 
 
 * FROM SAME TO SAME. 
 
 London^ 3d Feb. 1845, 
 * * * =)'• * ■ * 
 
 Of South Carolina Stock none whatever has appeared, and it is in fact im- 
 possible to give quotations. 
 
 PRESIDENT TO HAMBRO & SON. ' 
 
 Bank of the State b¥ Sot'TH Carolina, } 
 Charleston^ June ^5th, 1847. ) 
 Messrs. C. J. Hamb'ro & Son : 
 
 Gentlemeny — The last steamer brought us a letter from Messrs. Baring, 
 Brothers & Go. of 3d June. In the quotations of stocks, we find they re- 
 port South Carolina Sterlings of 1858 and 1868, at 86 to 90. I have been 
 informed to day, that the Bank of Charleston has purchased of these 5 
 sterlings £10,000 at 85. These prices indicate a far greater depression 
 than we had anticipated, and we would, if they existed as low as 85 to 88, 
 have been pleased had you purchased for us any amount short of £20,000. 
 If you can get at £85 yoa may purchase £20.000, and we will cover as 
 rapidly as possible, and so up to 88 you may purchase, deducting £5000 
 on each 1 per cent, that is at 85, £20,000 ; at 86 £15,000 ; at 87 and 88 
 £10,000 
 
 I will be pleased to hear from you on this subject, 
 And am, with great respect, 
 
 F. H. ELMORE, President. 
 
 HAMBRO & SON TO PRESIDENT. 
 
 London^ ]9th July, 1847. 
 F. H. Elmore, Esq., President B. S. S. C. Charleston : 
 
 Dear Sir^ — We have had the honor to receive your esteemed letter of 
 26th June, by which you order us to purchase South Carolina Sterling 
 Bonds, up to £20,000. at prices ranging from 85 to 88 per cent. It is a 
 very long time since anything has been done in this stock in the London 
 market, the absence of business being also proved by the wide margin in 
 the quotations of 86-90. We always watch the market for these securities 
 very closely, knowing that it is of considerable interest to you, and we 
 should have hastened to report any transaction that took place, or even 
 ventured to purchase for your account on moderate terms, had any stock 
 presented itself We have taken due notice of your present instructions, 
 regarding the purchase, and beg to assure you, that we shall use our best 
 efibrts to execute the order. 
 
 By the next packet we shall have the honor to address you on this sub- 
 ject, as also in reply to your separate letter with reports, and meanwhile 
 beg to subscribe ourselves. 
 
 With high regard, 
 
 dear sir, yours, &c. 
 
 (Signed) C. J. HAMBRO & SON. 
 
638 llEPORTS OF COMMITTEES 
 
 HAMBRO & SON TO PRESIDENT. 
 
 London, 3d August, 1847. 
 F. H. Elmore, Esq.. President B. S. S. C. Cbqrleston : 
 
 Sit; — We have received your much esteemed favor of the 26th[^June, and 
 we thank you for transmitting us the two interesting pamphlets. If was 
 very pleasing to find that our neighbors, Messrs. Baring, Brothers & 'Oc, 
 as well as your late respected Minister at this court, so entirely coincided in 
 opinion with us. After such a signal defeat, there is hardly any probabili- 
 ty that this question will again be brought forward. Should such an at- 
 tempt be renewed, it will only be requisite to make reference to the able'and 
 dignified report of the Hon. J. A. Black, and the matter must of necessity 
 drop at once. Since we had the honor to address you' on the 19th July, 
 we have not been able to find any sellers of your State Stock, and we be- 
 lieve it would require a very extravagant offer to induce the holders to come 
 forward and part with the stock. In the absence of business, it is impos- 
 sible to give a quotation. There has been some Rail Road Stock in the 
 market, which we might have purchased at 85 to 86 per cent. Would this 
 suit you and to what extent? 
 
 We beg you will accept the assurance of our high esteem, and have the 
 honor to be 
 
 Your most obedient servant, 
 (Signed) C. J. HAMBRO & SON. 
 
 PETER TREZEVANT, ESQ. OF ENGLAND, TO DR. D. H. 
 'FREZEVANT, OF COLUMBIA. 
 
 Extract of a Letter, dated 
 Che&ter Terrace, Regeyifs Park, London, > 
 X^thMay, 1842. \ 
 In reply to Col. Elmore's, suggestion, of State stocks being purchased 
 here, since the amount I purchased from Oen. McDufiie I never have been 
 able to get any, but through the house of Baring & Co. and the last pur- 
 chase from them by me, was at 89 per 100, which is the price they now of- 
 fer at, as per copy of their note annexed •; none of this stock has been in 
 public market, as I could find, through the medium of several brokers that 
 I have employed. As Col. Elmore must know the amount held abroad 
 by the amount he has to remit for the interest, he would be able to say to 
 what amount he would like to purchase ; to accomplish which, a credit must 
 be established with some banker or individual house of respectability, au- 
 thorizing myself, or any other agent they might choose, to purchase said 
 bonds, whenever they can be found for sale at such prices as he may limit, 
 and the amount wanted. But it must be solione that Baring & Co. should 
 be perfectly ignorant of the business, or they will immediately demand a 
 higher price. Again, it is to be observed, that the present reduced price is 
 occasioned by the unsettled state of politics of the two countries — the em- 
 barrassed state of money matters throughout the United States, and som« 
 reluctance to our State, being a slave-holding State. He can consider these 
 facts, and I s all be very happy to hear from him, or to give him any infor- 
 mation that is in my power, at any time he may wish. 
 
ON FINANCE AND BANKS. 639 
 
 Copy of Note from ^ 
 
 MR. BATES, OF THE HOUSE OF BARTNa & CO. TO PETER 
 TREZEVANT, ESQ , dated 
 
 Bishopsgate Street^ \Uh May, 1842. 
 Mr. Bates presents his compliments to Mr, Trezevant, and begs, in reply 
 to his note, to state that he is not a\vure of there being any South Carolina 
 bonds in the market for sale. Messrs. Baring & Co. have a few thousand 
 pounds remaining, which they are willing to dispose of at 9 1 1 with the 
 dividends from Jan. last, or 89, dividends from July next. 
 
 PETER TREZEVANT, ESQ. OF ENGLAND, TO DR. D. H, 
 TREZEVANT OF COLUMBIA. 
 
 Extract of Letter, dated^ 
 
 Gloucester Ptace^ Brighton^ October^ 15, 1847. 
 
 Th©. dreadful failures here, and still continuing to large amounts, have 
 made great falls in public securities of every description ; on 3^ per cents 
 and 3 per cents, (called Consols) from par to 87-| per £100, and are ex- 
 pected to be still lower ; the South Carolina bonds that Mr. McDuffie 
 soldjhere, for which I paid £95 per £100, are now to be had at £87 10 per 
 £100. 
 
 Extracts from Letters of Messrs. Baring^ BrUhers Sf Co. Londo?i^ to C. 
 M, Furman^ Cashier of tlie Bank of t/ie State of South Carolina. 
 
 1845. 
 
 J^n'y. 3. American Stock. Since the arrival of the steamer Pennsylvania, 
 5 per cents have been in great demand, under the prospect of pay- 
 ment of the February dividends in cash, and have advanced 5 to 6 
 per cent. In other stocks not much doing. Louisiana Union 
 Bank, none for sale. (Among numerous other quotations.) Penn- 
 sylvania 5 percent 67 to 68. South Carolina, (Barings) 92 to 
 94, without dividend ; nominal. Do. (Palmers) 88 to 
 
 90, do. do. Tennessee, 90 to 91, nominal. 
 
 U. S. Bank Shares, 20 s. U, S. Bank Debentures — (Denisons) 
 60 to 65. U. S. Bank, Rothschild's Debentures, 40, nominal. 
 
 March 28. Since the receipt of. the President's Inaugural Message, there 
 has been a disposition to realize American Stocks, and as buyers 
 are not readily found, sales have been made at 3 to 4 per cent un- 
 der our last quotations. Pennsylvania 5 per cents have been done 
 at 65, and Maryland Sterlings at 61:^. No Louisiana Bonds 
 have been offered for sale. 
 
 May 3. We have no change to notice in American stocks since our last, 
 and as the transactions continue to be of a very trifling and un- 
 certain character, any quotations would be but nominal. 
 
 Sept. 3. The transactions in American securities continue very limited, and 
 quotations are, in consequence, nominal. Pennsylvania have de- 
 clined to 67^ to 68. Nothing done hi New York or Ohio. No 
 Louisiana for sale. 
 
G40 REPORTS OF COMMITTEES 
 
 Dec. 3. American Stocks. Business is paralyzed by the uncertainty about 
 the Oregon question. There are no buyers, and forced sales must 
 be made at great sacrifices ; but under these circumstances hold- 
 ers generally keep ofi" the market. Pennsylvania 5 per cents of- 
 fered at 65. 
 1846. 
 Aug. 3. The transactions in American stocks continue limited, and prices 
 
 without change. 
 Sept. 3. American stocks continue neglected, and the accounts of the stack 
 markets on your side are not calculated to revive demand. Some 
 "Pennsylvania 5 per' cents have been forced oiFat59, and some 
 Indiana at 27^ per cent. The other securities without sufficient 
 business to quote prices. 
 Sept. 11. No transactions to notice in American stocks. 
 Oct. 3. Nothing doing in American stocks. 
 
 Oct. 19. In American stocks there is so little business doing, that in al- 
 most all cases the prices are only nominal. (Among other quo- 
 tations,) Pennsylvania 5 per cents 59 to 61. Tennessee 6 per 
 cents, 86 to 88. So. Carolina, (Barings) 85 to 90. South Caro- 
 lina, (Palmers) 82 to 85, &c. ' 
 1847. 
 
 April 19 No change in American stocks. The intended payment of inter- 
 est by the State of Maryland, on 1st of January next, has given 
 firmness to the holders of these bonds, and there are buyers at 
 65, without finding many sellers. In Pennsylvania, some small 
 parcels have been sold at 65 and 66. 
 March 26. American Stocks. There have been, since our last circular, some 
 considerable sales of Pennsylvania 5 per cents at 66, 65 1- and 65 
 per ot. Buyers of Maryland, at 65, sellers at 70, and the market 
 in suspense, until the final settlement of the Bill now before the 
 • ^ , Legislature of that State. Sales of Indiana at 35, at which some 
 is still offered. In other States no material alteration, and the 
 present state of our money market is unfavorable for any demand 
 for the purposes of investment. 
 June 3. American Stocks. The prices in Europe are now mainly, if not 
 entirely,, regulated by those which rule in the United States, and 
 the late quotations from that quarter have produced corresponding 
 improvement here ; the business has, however, been trifling. No 
 disposition is manifested to increase investments, whilst at the 
 same time holders seem willing to keep what they have got, and 
 very little stock comes to market. Our following quotations 
 show in most cases the rates at which there are either buyers or 
 sellers, to moderate extent. (Among numerous other quotations,) 
 Ohio, 6 per cents — 88 buyers to 90 sellers. 
 
 Pennsylvania, 5 " 68 " 70 '• 
 
 So. Carolina, 5 " 82 " 85 " Palmer's 
 
 So. Carolina, 5 " 86 " 90 " Baring's. 
 
 Tennessee, 6 " 87 " 89 " &c. &c. 
 
 June 18. American Stocks. The improved quotations from the United 
 States have had a corresponding effect here, and with increased 
 firmness in holders. Many of the American orders for purchase 
 have not been executed. Pennsylvania 5 per cents have been 
 
ON FINANCE AND BANKS. 641 
 
 done at 62 per cent, for trifles ; we should quote 70 to 72, Mary- 
 land 70, nominal. Indiana has been done at 37. Illinois at the 
 same price. A large purchase has been made of Michigan, at 30 
 per cent ; at which price there are still buyers, but no sellers un- 
 der 35. Ohio 90 to 92. No New York in the market. South 
 Carolina Rail Road Bonds have fetched 85 per cent. 
 
 I 
 
 Extracts of Letters from C. J. Hambro Sf So7i^ of London, to C. M. 
 Furman^ Cashier of the Bank of the State of South Carolina. 
 1847. 
 
 Jan. 14. There is nothing doing in American stocks, and but little varia* 
 tion in ours. The market is flat, and money is getting scarce. 
 
 Feb'y. 16. There is no material alteration in our markets since our last. 
 Stocks are a little firmer, money 4 per cent. 
 
 March 3. In American stocks there is no business transacted. 
 
 April 3. In American securities there was some activity, and some good 
 business has been doing in Pennsylvania 5 per cents at 65-6 ; 
 Massachusetts 5 per cents, 101^-102^ ; Indiana 5 per cents 34-5; 
 Mississippi 6 per cents, 48 ; Alabama 5 sterlings, 72-4 ; South 
 Carolina State or Rail Road stock has not appeared in market, 
 " 19. New York 5 per cents 88 to 90 ; Pennsylvania 5 per cents 64^ 
 to 65^; Ohio 6 per cents (1856) (1860) 88 to 90; Massachu- 
 setts 5 per cents (1868) 101-102; Indiana 5 per cents, 32-4; 
 Mississippi 6 per cents, 48. 
 May 3. There have been several transactions in American stocks since 
 our last, at the following' quotations. New York 5 per cents 
 87-8 ; Pennsylvania, 65-6 ; Ohio 6 per cents, 86-7 ; Massachu- 
 setts, 100-1 ; Indiana 32^ — 3^; Maryland 68-70; Mississippi 
 48 , United States Bank shares 14 to 15 s. 
 
 June 18. Our money and stock market remain heavy. 
 
 July 3. New York 5 per cents 88-90 ; Pennsylvania 5 per cents 74-75 ; 
 Ohio 5 per cents 90-92 ;" Massachusetts 5 per cents sterling, 100, 
 Maryland 5 per cants 69-70 ; Mississippi 6 per cents. 48 ; Ala- 
 bama 5 per cents 56-58 ; Michigan 6 per cents 30 ; do 5 per 
 cent sterling 25-6 ; New Orleans city 52-55 ; United States 
 Bank 17 to 18 s, 
 
 Augusts. Prices of American Stocks. — New York 5 per cents 91 ; Penn- 
 sylvania 5 per cents 70 ; Ohio 6 per cents, 90 ; Massachusetts 
 5 per cents sterling, 100 ; Indiana 5 per cents 37 ; Illinois 6 per 
 cents 37 ; South Carolina 5 per cents (Palmer's) 85-86 ; Louis- 
 iana 5 per cents 87 ; Maryland 5 per cents 70-1 ; Mississippi 6 
 per cents 48 ; Albama 5 per cents sterling 56 ; United States 
 Bank 16-17 8. 
 " 18. We subjoin quotations of stocks and exchanges. American se- 
 curities are rising in value, large orders having come over from 
 the United States to invest money in them. Our stock market 
 is dull. 
 
 81 
 
642 REPORTS OF COMMITTEES 
 
 American Stocks, ISth August, 1847. 
 
 United States 6 per cents 102 ; New York 5 per cents 89 to 90 ;' 
 Pennsylvania 5 per cents 69 to 70 ; Massachusetts 5 per cents 
 sterling (1868) 100 to 101 ; Ohio 6 per cents (1850) 88 to 89 ; 
 Indiana 5 per cents 37 to 8 ; Ohio 6, (1860) 90 to 91 ; Illinois 6 
 per cents 37 to 8 ; South Carolina (Palmer's) 86 ; Louisiana 5 
 per cents (Barings) 85-6 ; Mississippi 6 per cents 48 ; Alabama 
 5 per cents sterling, 57-8 ; do 5 per cents (Lizardi) 60 ; do 5 per 
 cents sterling, 25-6 ; Michigan 6 per cents 33-5 ; New Orleans 
 Can. and Banking Sh. £15 2 6-10 ; United States Bank 16- 
 17 s. 
 
 Sept. 18. The funds are very flat, and prices tending downwards. We 
 give you the quotations enclosed. On American securities it has 
 not had much influence, the market being very quiet, but of 
 course there is a general indisposition on all sides to invest at 
 present. 
 
 Oct. 4. United States securities — no business has been done ; prices are 
 merely nominal, and the only quotations that can be given, are 
 New York 5 per cents 89-90 ; Pennsylvania 5 per cents 68-9 ; 
 Ohio 6 per cents 89-90 ; Massachusetts, 98-9 ; Indiana 86-7 ; 
 Bank Shares 14-15 s. 
 
 When the Bank of Charleston purchased the £5,000 of Rail Road bonds 
 exchange was at 10 per cent, which made the purchase equivalent to 88. 
 To the prices quoted, exchange must always be added. 
 
 1 
 
liEPURTS 
 
 SPECIAL COMMITTEES 
 
 (1844.) 
 
 In the Senate^ Dec. 18, 1844. 
 
 The Special Committee, to which was referred the Report of the Presi- 
 dent of the ]5ank, in answer to a call for information, concerning debts of 
 Incorporated and Manufacturing (-ompanies, ask leave to Report : 
 
 That they have had the same under consideration, and have given that 
 attention to the subject, which the near approach to the end of the Session, 
 and the pressure of other business allowed them, and have arrived at the 
 following conclusion, which is submitted for the consideration of the Se- 
 nate. 
 
 They have not had time to examine minutely all the Bonded Debts set 
 forth in the Exhibit (A.) but have confined themselves principally to Bond 
 No. 1, which is due by the Nesbit Manufacturing Company, and which 
 seems to be the largest debt due by any Incorporated or Manufacturing 
 Company, and larger than the aggregate amount of all the debts due by other 
 Incorporated Companies. In examining the said Exhibit, we find a state- 
 ment of the amount now due by the Nesbit Company, ($91,898 77.) to 
 which, however, must be added the interest from October, 1841, as the Re- 
 port itself informs us that no part of this debt has been paid. Again, 
 this debt is said to have been contracted in 1841, with this explanation: 
 that the Company, as a Company, contracted the debt at that time, but 
 that the money had been previously loaned to individual members of the 
 Company, for its benefit, during the administration of the former President 
 of the Bank. 
 
 The remarks opposite Bond No. 1 will show that this debt is secured by 
 a mortgage of Works and one hundred negroes, and also by a Judgment 
 covering eighty negroes more, which property, of itself, would not be suffi- 
 cient, in the opinion of the (Committee, to pay the debt due by the Compa- 
 ny, in consequence of the difficulty in finding a purchaser of that kind of 
 property, although it may be worth intrinsically the debt now due. 
 
 The President of the Bank also informed the Committee, that in addi- 
 tion to the security already mentioned, the Bank had individual security, 
 and the names of individuals were given, but the Committee not having 
 any personal knowledge of their situation, are not prepared to give- an opin- 
 ion on the subject. 
 
 By referring to the Act of 1812, establishing the Bank, it will be found 
 that the Directors are required " to call in one tenth of each loan in each 
 year," and as we are not aware of any subsequent alteration of this provis- 
 ion, we are of opinion that the law should haye been strictly complied with, 
 
644 REPORTS OF SPECIAL COMMITTEES. 
 
 unless the previous consent of the Legislature had been obtained to take 
 some other course. The Committee have very little doubt, however, but 
 that had an application been made to the Legislature, the same indulgence 
 would have been extended, and under the peculiar circumstances of this 
 case, they think no blame is to be attached to the President and Directors 
 of the Bank, when we take into consideration the benefit that has resulted 
 to the State, in the reduction of the prices of Iron, Castings, Nails, &c. and 
 when every exertion seems to have been used to secure the ultimate pay- 
 ment of the debt. Believing that the State does not desire to oppress any 
 portion of her citizens, and particularly those who are endeavoring to de- 
 velope the resources of the State, and thus contribute to the general good, 
 the Committee are of opinion that a reasonable indulgence should be still 
 extended to the Stockholders of the Nesbit Manufacturing Company, and 
 that further time should be given them to make payment, in the manner 
 and at the times hereafter to be mentioned, and upon their securing the 
 payment of the entire debt, to the satisfaction of the President and Di- 
 rectors of the Bank. To eflfect the object contemplated, it will be necessa- 
 ry that the concerns of the present Company should be v^ound up, for va- 
 rious reasons, which the Committee tliink unnecessary to give, as they 
 would have to speak of the situation of individuals, and as it is understood 
 the Stockholders have no objection to the arrangement proposed. In the 
 event a new Company is formed, the Committee propose the indulgence 
 before mentioned be extended to them upon certain conditions, more par- 
 ticularly set forth in the following Resolutions, which they recommend for 
 the adoption of the Senate : 
 
 Resolved^ That the Senate approve of the determination of the Bank to 
 enforce the Judgment against the Nesbit Manufacturing Company, and 
 bring the transaction to a conclusion. '' 
 
 Resolved^ That should a new Company be formed and purchase the Nes- 
 bit Works, together with the appurtenances necessary to carry on the busi- 
 ness, the President and Directors of the Bank be requested to loan the 
 said Company the amount (including interest) now due by the Nesbit 
 Manufacturing Company, for the term of ten years, upon the following con- 
 ditions : Provided the Bank realizes the whole amount due by the said 
 Company, by the sale of its property and its other securities. And pro- 
 vided further, that the new Company, to which the loan is granted, shall 
 pay, on the first day of January in each year, for five years, the interest on 
 the amount loaned, at the rate of seven per cent, per annum, and then pay 
 the principal and interest in five equal annual instalments. And provided 
 further, that the said new Company shall give such security as shall be ap- 
 proved by the President and Directors of the Bank. 
 
 1846. 
 
 Report of the Special Committee to which teas referred a Resolution, in- 
 structing them to inquire into the particulars of the sale and transfer 
 of the property of the Nesbit Manufacturing Company. 
 
 The Special Committee, to which was referred a Resolution, instructing 
 them to inquire into and report the particulars of the sale and transfer of 
 >the property of the Nesbit Manufacturing Company, or so much thereof 
 
REPORTS OF SPECIAL COMMITTEES. 645 
 
 as they may think sufficient to satisfy the Senate that the debt due the 
 State is secure, beg leave to report : 
 
 That they have discharged the duty imposed upon them, and that from 
 the facts submitted to them, they are well satisfied the debt is abundantly 
 secured. 
 
 It will be seen, by a reference to the Report of the Committee appointed 
 to investigate the condition -of the Bank, made to the Legislature in De- 
 cember last, that the Bank of the State of South Carolina bid off the 
 greater part of the property belonging to the Company. This property 
 consists of something over two hundred very valuable slaves, and some 
 8,000 acres of laud, abounding in large beds and veins of excellent Iron 
 Ores, with suitable mills, furnaces, and work shops for the- manufacture of 
 iron. 
 
 This property was bid off by the Bank, not for the purpose of carrying 
 on the business, but for the purpose of re-selling it and paying the debt 
 due to itself, which the Directors supposed they would be able to accom- 
 plish. Thus pursuing a policy at once safe, wise and forbearing towards 
 its debtsors ; a policy which, in a peculiar manner, has always character- 
 ized this institution and endeared it to every dispassionate and reflecting 
 friend of the institution. 
 
 The result has proved the wisdom of the course pursued. A sale of the 
 property has been effected and is being carried out as fast as the nature of 
 such a transaction can be done. The deeds and other papers necessary to 
 the transfer to the purchasers, are in the hands of the Attorney General, 
 and your Committee are assured, that the"-whole transaction will be finally 
 adjusted in a short time. The property sold for the whole amount of the 
 debt and interest due the Bank, upon a credit, prescribed by a Resolution 
 of the Legislature, of ten years — the first five years the purchasers are to 
 pay the interest annually, and the principal debt in the last five years, in 
 five equal annual instalments. The debt to be secured by a mortgage of 
 the property, with other property sufficiently ample to make the debt per- 
 fectly secure, or by personal indorsements or sureties, which shall be ap- 
 proved by the Board of Directors. Your Committee cannot, under all the 
 circumstances attending this transaction, but approve of the course of the 
 Bank, in purchasing and re-selling this property, convinced, as they are, 
 that by so doing, it has, (at the same time saving itself) saved many valu- 
 able and worthy citizens from heavy losses, and perhaps, in some instances, 
 from ruin and insolvency. 
 
 Your Committee being well satisfied that every precaution has been ta- 
 ken by the Board of Directors to secure and to keep secure this debt to the 
 Bank, would respectfully recommend that its future management be left in 
 their hands for final adjustment and collection, upon the terms and condi- 
 tions indicated by the Resolution of the Legislature, and the policy pur- 
 sued by the Board in the sale effected by them. 
 All of which is respectfully submitted. 
 
 JOSEPH A. BLACK, Chairman. 
 
646 REPORTS OF SPECIAL COMMITTEES 
 
 (1846.) 
 
 Report of tlie Sj^ecial Committee^ of the Senate of South Carolhm^ to 
 which were referred seveixd resolutions cmic^rning the Bank of the. 
 State. 
 
 FIRST RESOLUTIONS 
 
 Whereas, the President and Directors of the Bailk of the State of South 
 Carolina, in their annual report to the Legislature of November, 1843, state 
 the sum of four hundred and seventy-three thousand five hundred and fifty- 
 eight dollars and sixty-six cents (^473,558 .66) to be lost in bad debts, by 
 the said Bank, and have placed the same under the title of amount carried 
 to profit and loss. Therefore, 
 
 Resolved., That the President of the said Bank report to this Senate, as 
 soon as practicable, the names of all those persons by whom the said sum 
 has been lost, specifying the amount and date of each loss, and the name 
 of the person by whom lost. 
 
 Resolved., That the said President and Directors be, and they are hereby 
 required, in their next and each succeeding annual report, to give a full and 
 particular statement of every bad debt lost since January, 1843, by the 
 said Bank, specifying the amount of the bad debt, the time when contracted 
 and when lost, and the name of the person or persons by whom lost. 
 
 SECOND RESOLUTIONS. 
 
 Resolved., That it is expedient and wise that this Legislature take steps 
 to effect a total separation of Bank and State. 
 
 Resolved^ That it is expedient and wise, that the Bank of the State of 
 South Carolina be abolished, and its affairs wound up, as soon as the same 
 can be done with a due regard to the rights and interests of the State, and 
 indulgence to the debtors of the Bank. 
 
 Resolved, That the Comptroller of the State and the President of the 
 said Bank be required to report to tl^s Legislature, at its next session, a 
 full and particular account of all the debts due the Bank and the Branches 
 thereof, designating the good, doubtful and desperate, as well as the names 
 of the debtcTS. 
 
 Resolved., That the Bank of the State of South Carolina be required, as 
 soon as convenient and practicable, to call in all notes of a less denomina- 
 tion than five dollars, and be prohibited from issuing, hereafter, any note or 
 bill of a less denomination than five dollars. 
 
 Resolved., The above Resolutions be sent to the House of Representa- 
 tives for concurrence. 
 
 THE SPECIAL COMMITTEE, 
 
 To which were referred the foregoing Resolutions, beg leave, respectfully, 
 to report, that they have had the same in consideration, and present, here- 
 with, the conclusions to which they have arrived, and the reasons therefor. 
 
 The Committee have taken both sets of Resolutions and compared them, 
 and find that the measures which they contemplate, can be best considered 
 and understood by classifying and bringing them into review in one 
 programme. 
 
 For all practical purposes, these measures may be reduced to the follow- 
 ing propositions. 
 
 1. To abolish the Bank of the State. 
 
REPORTS OF SPECIAL COMMITTEES. 647 
 
 2. To publish the names of all parties whose debts are carried to profit 
 and loss, whether principal, indorser 'or security. 
 
 3. To publish the names of all the debtors of the Bank, 
 
 4. To discontinue the issues of al. bank notes, under the denomination 
 of five dollars. 
 
 The three first of these propositions, although presented as separate 
 measures, would, in the opinion of the committee, ultimately produce the 
 same result, to wit, the destruction of the Bank — the first one differs from 
 the second and third only in this respect, that it openly declares the end it 
 aims at, which is to abolish the Bank, while the others, which would as 
 certainly effect the same end, do not declare that such is their aim. But 
 that such would be their operation, if adopted, can scarcely admit of the 
 slightest question, as a moment's consideration on the subject will show. 
 
 The customers of banks, although embracing many shades of variety, may 
 be reduced to three classes: — 1.. Those whose means and credit are very 
 ample. 2. Those who are very needy and have indifferent credit, and 3. 
 Those who are between these two extremes, a middle class of moderate 
 means, safe business and good credit. It is very clear that the Bank 
 which can get the custom of those of the first and third class may count qja. 
 a safe and profitable employment of its capital — while the Bank that is 
 driven to the necessity of taking its customers from the needy and indiffer- 
 ent credit, will run great hazards, probably sustain great losses, and will 
 ultimately be ruined and broken. It is also well" known that the greatest 
 part of the transactions of a Bank are with mercantile n en, and that to 
 men of that class especially, as well as to all men of sensibility, nothing in 
 business is more disagreeable than exposiires of their transactions, and 
 especially of their own debts or their liabilities for others. Credit is the 
 honor and strength of the merchant, and Is dear to every man of proper 
 feelings, and no man who has means and good credit, will, if he can avoid 
 it, put it in the power of another man, or of a Bank, to expose his name, 
 his credit and his affairs, to be the subject of idle remark, of misconception 
 or of wilful misrepresentation. If he wants Bank accommodations, aod 
 there are two or more Banks in his reach, one of which keeps his accounts 
 from public exposure, and the other publishes and exposes them, he most 
 certainly will borrow where his name and business are protected from the 
 purient curiosity of the gossiping idler and the misrepresentation of mali- 
 cious rivals in business. What then would be the consequence to our 
 Bank if we adopt these propositions, and require reports from the Presi- 
 dent and Directors specifying the names of its debtors, the amounts they 
 owe, and how long they have owed them ? The answer is clear ; no private 
 Bank pursues this false policy, and from the moment such a Jaw is made, 
 no man who has good credit and means, and .can get his business done by 
 another Bank, will come to ours.. We shall lose all the customers we have 
 whose custom is desirable — get no good ones in their places, but have only 
 those whose need for money is so urgent that they will submit to any expb_ 
 sure to get it, and who, in many cases, will neither expect nor care to repay 
 it. Your Bank will get the broken down and cast off refuse of other Banks, 
 and will go down day by day until it sinks into ruin. Not only will it 
 lose its good customers, but men of talent, character and property will be 
 driven out of its direction, for they will not risk their standing or reputa- 
 tion in a concern which has so palpably the elements of self-destruction in 
 it, and which must go down with dishonor to itself and disgrace to all 
 
648 REPORTS OF SPECIAL COMMITTEES. 
 
 connected with it.. Thus the Bank, bereft of good customers and good 
 managers, is as effectually but more ruinously and disgracefully destroyed 
 than if it were at once abo-lishcd. 
 
 But a difference is said to exist between one class of these debtors and 
 the others, which authorizes the report and exposure of their names to 
 wit : — those who have failed to pay their debts and which have been carried 
 to profit and loss. There is not, in reality and principle, the least differ- 
 ence. All men are subject to reverses — some become victims to the du- 
 plicity of others — some are ruined by providence — some by their own im- 
 prudence, and others may be dishonest and fraudulent. Will it be just to 
 publish all, and put the victim of a fraud, and the fraudulent author of his 
 ruin, on the same footing, and mete out to each this humiliation by way 
 of punishment ? It may be said that the Cases may be discriminated and 
 blame only be affixed to the culpable, while sympathy and commiseration 
 only will be extended to the unfortunate. How are we to be assured that 
 a just discrimination will or can be made? and who is to make it? It is 
 next to impossible and is not to be expected. But even if it was, these 
 exposures are as painful to the feelings of the unfortunate, as they are to 
 the fraudulent and dishonest, and the pity of the world is almost as hard 
 to be borne as its censure. Every merchant kno\\ang the casualties of his 
 business will avoid the Bank, which, if he prove unfortunate, will parade 
 his name before the public^ and add unmerited mortification to undeserved 
 misfortune. 
 
 An argument has been pressed, with earnestness,. in favor of publishing 
 the names and accounts, of this class of debtors, which has a seeming of 
 reason in it, and may, therefore, claim some consideration. 
 
 It is said that these publications might, in some instances, lead to the 
 discovery of property which would otherwise be concealed. The argument 
 is more plausible than sound, and leads to conclusions seldom warranted by 
 facts. It infers fraud and concealment on the part of these debtors, and 
 recommends this mode of proceeding for its detection, exposure and pun- 
 ishment. 
 
 How far it is just to throw such imputations on all who fail to pay, needs 
 no comment. In all times human pursuits have been subject to vicissi- 
 tudes : all classes are made to feel them in their affairs ; but mercantile men, 
 who, from the very nature of their business, must deal most with Banks, 
 are most exposed to such casualties, and they have never considered it 
 otherwise than honorable, when one of their number has been overwhelmed 
 by unavoidable reverses, that he shall be, upon surrendering all his property 
 to his creditors, discharged from his debts, even if they are not paid in 
 full ; they allow him the opportunity of again trying his fortunes and be- 
 coming useful. This custom, so honorable to the heart, and, in many 
 respects, so wise and useful, has become as much a law of commerce as if 
 it were a Legislative enactment. It is not often that such transactions are 
 tainted with fraud or disgraced by concealment of property. This usage, 
 so long established amongst commercial men, has also extended toother 
 classes, and is not often abused by dishonesty. ^ In fact, very few case 
 would arise in practice where any discoveries would be made from the 
 proposed publications, and if any should be made, they would prove very 
 inadequate compensation for the injury done to the Bank in other and 
 more vital respects. Every debtor would consider it a stigma cast upon 
 his name, and all candid minds, coupling the reason for it with the publi- 
 cation itself, must admit that such an inference is irresistible. It con- 
 
REPORTS OF SPECIAL COMMITTEES, 649 
 
 founds the innoeent and unfortunate witV the fraudulent and guilty, and 
 holds them all up for the cold scrutiny of the world in one indiscriminate 
 list, as seeking to make dishonest concealments of their property. The 
 feelings of society have an inexpressible repugnance to such injustice, 
 which reverses the gentle maxim of law, that it is better an hundred guilty 
 should escape than one innocent man suffer, and would punish all, on the 
 bare possibility of catching one guilty one in the throng. It would be 
 held up in unfavorable contrast with the uniform usage of business-men, 
 and the unvarying practice of all well managed and discreet private 
 Banks. Its oldest and most uniform friends, looking on the measure as 
 unnecessary, harsh and cruel, would enlist with its adversaries and bring 
 to their aid a reinforcement of numbers and moral power that would soon 
 enable its enemies to drag the institution down ; nor could the good and 
 virtuous say its destruction was undeserved, "if those sound, just and 
 wholesome principles of administration are abandoned by. which it has 
 heretofore prospered and been endeared to the affections of the people. 
 
 But there is even a higher ground on which these propositions must he 
 condemned. The charter prohibits their adoption. The tenth section is 
 in the following words : 
 
 Sec. 10. And he it furtJier enacted^ That the Legislature of the State 
 shall be furnished with a general statement of the transactions of the 
 Bank, signed by the Cashier, and countersigned by the President, as often 
 as they may require the same, and it shall also be the duty of the Comp- 
 troller General to inspect such general account in the books of the Bank, 
 as often as he may please, and it shall, and is hereby declared to be his 
 duty, faithfully to report all and every violation of the fundamental rules 
 of the corporation to the Legislature : Provided^ however, that nothing in 
 this clause shall imply a right of inspecting the account of any private 
 individual or individuals, or any body politic or corporate, with the Bank. 
 
 No language can be more distinct than this proviso, '-'■ nothing in this 
 ckbuse shall imply a right of inspecting the account of any individual," &c. 
 not even a right to itispect, much less to copy and publish. The second 
 clause of the Act of 1843, contains precisely the same proviso^and restric- 
 tions; (Act 1843, p. 262.) This charter is a compact between the State and 
 the customers of the Bank, and to violate it would be unjust to them, not 
 honorable to the State, and in the highest degree impolitic and injurious to 
 the Bank. 
 
 For thirty-four years the State has stood firm in her good faith and re- 
 sisted every effort to draw her into the violation of her fundamental com- 
 pact. Even as late as the Act of 1843 she has repeated this promise, re- 
 enacted this compact, and renewed the assurance of her adherence to its 
 principles. The Senate at the last session, by the decided vote of 26 to 5, 
 refused to violate this promise, and added another proof of its deep sense 
 of the sacredness of this obligation. 
 
 Having shown that the propositions for reporting the names of the debt- 
 ors of the Bank would result in its destruction, and would be equivalent in 
 that view to the first proposition, which is to abolish it, the committee pro- 
 pose now to enter upon the naked question whether it is expedient and wise 
 to abolish the Bank. 
 
 Speculative minds may, in their individual reveries, safely indulge m im- 
 aginary schemes of possible perfection in government; but statesmen charged 
 
 82 
 
650 REPOETS OF SPECIAL COMMITTEES. 
 
 with the destinies of States must meet things as they actually exist. Theo- 
 retically^ it might even be admitted that this State should have no Bank of 
 her own, and yet the fact that she has chartered one ; that it has long ex- 
 isted ; that it has become interwoven with her own and the affairs of her 
 citizens, and that she has with it, and through it, and on it. contracts and 
 engagements of the highest obligation in honor, morals, and law, presents 
 the question of its being continued, in a light so different from the original 
 question of its charter, as practically to change the whole question of duty 
 in regard to it. There are some who have always thought this Bank ought 
 never to have been chartered, but many of these now, in view of actual cir- 
 cumstances,- join the great majority who have always maintained that its 
 creation was wise, to give it a fair chance to discharge its obligations. The 
 proposition to abolish it is widely different, now, from the question of its 
 charter in 1812. It may even be conceded for argument sake that it was 
 wrong in 1812 to grant the charter, and yet, it would not prove, in the 
 slightest degree, that it would now be right to abolish it. Since that day 
 a long period of time has passed, and the State has made many arrange- 
 ments at home and in Europe, in which she has so placed the Bank as to 
 leave but little room to doubt where the path of duty leads us in the pre- 
 sent inquiry. 
 
 This matter, involving as it does immense pecuniary consequences, impli- 
 cates more than money, for it involves the good faith and honor of the 
 State, both at home and in foreign countries. To these points the commit- 
 tee will advert presently. 
 
 In the mean time, the committee pause for a moment to see how the gene- 
 ral interests of the State would be affected by abolishing this institution. 
 However gently and kindly done, its first effect would be to unsettle and 
 derange business and the value of property to a fearful extent. The col- 
 lection of its debts would render innumerable law suits necessary. This 
 would alarm other Banks and creditors, who also suspending accommoda- 
 tions, would in self-protection sue their debtors, who in turn would sue those 
 indebted to them. A state of perfect distrust, alarm and disorganization 
 would spread over the State. The Sheriffs wdtild transfer, from under the 
 hammer and at ruinous sacrifices, vast amounts of property. The industry 
 of the country would be paralyzed, business interrupted, property depre- 
 ciated, and distress and desolation be carried into the families of thousands. 
 The only class who would find advantage in this condition of the people 
 would be the monied speculators, who., buying property at half prices, would 
 grow rich on the ruins of the unfortunate, while the losses on the debts to 
 the Bank would be thus made many and heavy. Its next effect would be 
 to throw the financial system of the State into confusion. The entire 
 method of collecting, keeping and disbursing the revenues of the State 
 would be changed. Before the Bank was created, the Treasury lost large 
 sums by defaulting officers. Since the funds of the State have been de- 
 posited in and disbursed through the bank, more than $13,000,000 have been 
 received and paid for the State without costing or losing a cent. The pub- 
 lic creditors would no longer have the regular and certain payments of 
 their interest or principal, and the people of the State might count with 
 almost perfect certainty that in addition to the losses and derangements 
 which have been described, they would have to pay higher taxes, to dis- 
 charge those portions of the public debt not yet due and which the Bank 
 is to pay. 
 
p REPORTS OF SPECIAL COMMITTEES. 651 
 
 With this mere sketch, the committee pass to the consideration of what 
 is even yet a more serious, objection to the proposition for abolishing the 
 Bank than any yet stated. It lies in the pledges of the State to her credi- 
 tors. 
 
 These commenced in 1820, when she began to borrow money to prose- 
 cute her plans of internal improvement. At first she borrowed $800,000, 
 then $200,000, then $250,000, and then $300,000, pledging the Bank and 
 its profits for the payment. Ail these loans t/ie Bank has paid. But it still 
 stands pledged by solemn Acts of Legislation in 1838 and 1839 for the 
 3Fife Loan and the advance for the State's subscription to the Rail Road. 
 
 These amount now in round numbers to $2,500,000. Until these debts 
 are paid the State could not without the grossest breach of honor and faith, 
 take the first step for abolishing the Bank. Her name would become a 
 bye word and a reproach — her character tainted and lost. Of the Fire 
 Loan nearly $1,000,000 is due in Europe, borrowed there under the faith 
 reposed in the pledges contained in the Act of June, 1 838, which were en- 
 forced in the proposals of George McDuffie, the agent of the State, and final- 
 ly consummated by the guaranty entered on each bond by the late Presi- 
 dent, Judge Colcock. The documents in the appendix show this. The 
 State promised, in most solemn language in its several Acts, that this Bank 
 and its profits should be the security for the payment of its creditors in 
 these loans. How would she stand in the eyes of the world and of all hon- 
 orable men if she withdraws that security, and destroys it? What people 
 again would confide in her promises or trust in her honor? *Who of her 
 citizens but would blush for her? This subject was somewhat mooted in 
 1843, when the President of the Bank opened a correspondence with Gen. 
 McDuffie, as agent of the Bank and the State, who negotiated the Fire 
 Loan in Europe, with the minister of the United States, in London, the 
 Hon. Edward Everett, and with the eminent Bankers, Baring, Brothers & 
 Co., and C. J. Hambro & Sons. This correspondence has been submitted 
 to the committee, and they deem it eminently worthy of the consideration of 
 the Senate, and submit copies of the letters and documen:ts as part of this 
 report. By examining these papers it will be seen that all parties put the 
 same construction on the character of the contract, and all concur in the 
 opinion that such an act on the part of the State as abolishing the Bank, 
 the security and guarantor for their stocks, would blight her character with 
 deep disgrace and utterly destroy her credit and standing. This corres- 
 pondence exhibits the most conclusive proofs that amidst the ruins of the 
 credit of many of our sister States, that of South Carolina never was af- 
 fected — that it stood at the highest point occupied by any State of the 
 Union, and that the utmost confidence, amidst repudiation and failure, was 
 reposed in the ancient and well established character of her people for in- 
 tegrity and good faith. This high character should not be lightly forfeited 
 — for its value is not merely in the honorable distinction, but it may be- 
 come, in the course of time and those eventful vicissitudes which often fall 
 out in the afi'airs of nations and States, a resource of vital consecjuence to us 
 er our posterity. ' , 
 
 ■ The committee will remark, in conclusion, that they look on the proposed 
 measure, as repudiation in effect ; and they do not see in its past history, 
 nor in the aspect of the present time, any sound reason for abolishing the 
 Bank, or for crippling it in the exertions which the State has required it 
 to make. Has it neglected the duties or betrayed the confidence reposed 
 
 I 
 
552 BEPORTS OF SPECIAL COMMITTEES. 
 
 in it? Has it failed in performing any of [the engagements made for it? 
 On tlie contrary it has faithfully maintained itself and the faith of the State 
 in every emergency. Has it run the State into debt or caused an increase 
 of taxes? So far from it, that it has from its profits paid $592,000 into the 
 Treasury prior to 1822, and has since paid for interest upwards of $2,440,- 
 000, and for principal $2,080,000 of the debt of the State. Has it oppress- 
 ed or driven away the people of the State? It has done neither, but has 
 supported them in difficulties and saved the property of many from grasp- 
 ing creditors, and themselves from exile and ruin. Has it neglected the 
 agricultural or checked the commercial interests of the State ? The nega- 
 tive to these questions ife no-less emphatic. If it be distroyed, either by 
 directly abolishing it, or by the more indirect but not less fatal plan of ex- 
 posing its transactions, the State will lop ofi" one of its greatest resources, 
 and the people lose a refuge and protection which no other Bank will sup- 
 ply. The committee, therefore, recommend that none of the resolutions re- 
 ferred to them be passed, but that the following be adopted as the sense of 
 the Senate. 
 
 1. Resolved^ That it would be highly unwise and inexpedient to abolish 
 the Bank of the State. 
 
 2. Resolved^ That when the State of South Carolina pledged the profits 
 and capital of the Bank to her creditors as a security for money borrowed, 
 she did so in honesty of purpose and good faith. 
 
 3. Resolved^ That the Bank of the State cannot be abolished directly, nor 
 its business, stability and prosperity undermined by indirection, without a 
 violation of good faith, and dishonor to the State, unless the holders of the 
 Stock of the State, for which it is pledged as a security, be first paid, or 
 their consent obtained therefor. 
 
 4. Resolved^ That the exposure of the names and accounts of its debtors 
 would be in bad faith to them — in violation of the charter, and would un- 
 dermine its business, prosperity and stability, and be, therefore, against the 
 interests of the State, and a violation of the most solemn pledges to the pub' 
 Uc creditors. 
 
 All of whiqh is respectfully submitted, 
 
 JOSEPH A. BLACK, Chairman. 
 
 Appendix TTferred to by the Conrrtiitee, 
 
 Confidential. 
 
 PRESIDENT TO HAMBBO. 
 
 Bank of the State So. Ca. > 
 Charleston^ Oct. 6th, 1843. \ 
 C. J. Hambro & Son. 
 
 Gentlemen : — ^Will you allow me to ask your consideration and answers 
 to the enquiries below. The idea of winding up our Bank is one some- 
 times indulged in by some of those who have a voice in our public councils; 
 but it has not had, nor is it likely to obtain, a foothold sufiicient to create 
 any serious danger. The present moment is a propitious one for a calm 
 consideration of all points connected with the Bank, and I am very desi- 
 rous, if the opportunity offers, to be prepared with correct information, as 
 
REPORTS OF SPECIAL COMMITTEES. 653 
 
 to tlie effect such a measure would be likely to produce on the Stocks of the 
 Sjtate, and her character and credit abroad. 
 
 If you will do me the favour to recur to the volume of Laws, Reports, 
 &c. concerning the Rank, which Mr. Herckenrath left with you, from page 
 41 to 46, you will find "An Act for re-building the City of Charleston," by 
 borrowing $2,000,000, to be loaned to its citizens. Ry the 1st clause, "the 
 faith and funds of the State of South Carolina are solemnly pledged for 
 the interest and principal of this loan." This Rank belongs exclusively 
 to the State of South Carolina, with all its funds. The 10th and l-2th (p. 
 45 and 6.) sections, require the Rank to pay the interest, and pledge its 
 profits specifically, after paying other stocks charged on it, for the payment 
 of this Loan. The Rank has, since the loan was made, paid off $1,000,000 
 of the stocks which were charged on it, and is, therefore, so much the nearer 
 being answerable only for the loan of 1838. It had also a sinking fund on 
 the 1st of October inst. of $641,120,64, which will be increased more than 
 $100,000, by the profits of this year. Under these circumstances, if the 
 State were to decide on winding up this Rank, would its withdrawal and 
 the discontinuance of the present mode of paying the interest on the stocks 
 of the loan effected through Gen. McDuffle, with Messrs. Raring, Rroth- 
 ers & Co., be considered amongst your commercial men as lessening the 
 credit and value of these stocks, or in any way altering or violating the 
 contract with Messrs. Raring, Rrothers & Co.? Would it impair the credit 
 of South Carolina, or be considered a departure from her pledged faith? 
 In what way would it affect her character or influence the stocks and cred- 
 its of the other States? 
 
 I repeat to you, that I have not the remotest idea that such a measure 
 will or can be adopted, and that my object in asking your opinion is, to give 
 extension to correct opinions and principles, if an occasion arises for using 
 your answer. 
 
 Very respectfully, &c. 
 
 (Signed) F. H. ELMORE, President. 
 
 PRESIDENT TO HAMRRO. 
 
 Bank State of South Carolina, > 
 Charleston, 10th Nov., 1843. \ 
 Messrs. C. J. Hambro & Son : 
 
 Gentlemen^ — ^Referring to my letter of 6th October, duplicated above, I 
 beg leave to say to you, that the Hon. J. H. Hammond, Governor of this 
 State, has recently written to me, that he will recommend, by message to 
 our Legislature, that this Rank shall be wound up and withdrawn in seven 
 years, and its funds applied to pay the public debt. I repeat to you, with 
 great confidence, that this measure cannot succeed ; in my opinion, there is 
 not the least chance for it. Rut still it may affect the credit of our stocks, 
 and depress them greatly in your markets. I wish you to be prepared, in 
 case such be the effect of his message, to purchase freely for us. If they 
 fall to or below 90, you may buy £20,000 ; and if as low as 85, as much as 
 £30,000. Should they fall to 80, as much as £40.000, making, however, a 
 discrimination of I and 2 per cent, between the State Ronds and those of 
 the L. C. and C. R. R. Company. * " 
 
 Very respectfully, &g. 
 (Signed) F, H. ELMORE, Pres. 
 
654 REPORTS OF SPECIAL COMMITTEES. 
 
 HAMBRO TO PRESIDENT. 
 
 P^ Acadia. 
 
 ;- , London. iStii November, 1843. 
 
 PrankHn II. JSlmore^ Esq. Charleston, S. C. 
 
 Dear Sir : — We have to acknowledge the receipt of your esteemed faVof 
 t)f 6th October, and have read its contents, and not without some anxiety. 
 You say that some of those who have a .voice in your public councils^ 
 have at times, the question of winding up the State Bank. It is, indeed^ 
 Bincerely to be desired that such statesmen may never obtain sufficient foot^ 
 hold to attempt such a step, the illegality whereof would only equal its bad 
 policy. With regard to its illegality, no words are more simple and eX' 
 plicit than those we will here quote from the XI. and XII. Sections of the 
 Act of June, 1838. "It shall be the duty of the President and Directors 
 " of the Bank of said State of South Carolina to cause to be opened in the 
 " Books of the said Bank, an account, in which they shall debit themselves 
 «• with the profits, arising out of the additional capital, created out of the 
 " two milions loan, for the year ending on the 1st day of October, 1839, and 
 " with all the future profits of the said loan, as the same shall hereafter be 
 " annually declared ; which said fund, with its annual accumulations., 
 ^'' shall be^ considered solemnly 2}ledged and set apart far the p)a,yment of the 
 " intenrest 07i the said loan, and the final redemption thereof?^ 
 
 And furthermore, XII. "Wlien the profits of the said Bank of the 
 " State of South Carolina shall have paid the interest of certain stocks, for 
 "which they have heretofore been pledged and set apart, the said profits 
 " shall also be considered solemnly pledged and set ajmrifor the payment 
 " of the interest on the said loan and the final redemption thereof" 
 
 Never did words read more plain. Any Bond holders who, on the 
 strength of these declarations, invested their funds in the stocks, have, in 
 our opinion, a full right to demand, that an institution like the State Bank, 
 with its valuable rights and privileges, remain part and parcel of their se- 
 curity, and one of the sources whence the State is to derive a revenue for 
 discharging its engagements. An institution with six hundred and fifty 
 thousand dollars sinking fund, and realizing more than one hundred thou- 
 sand dollars profits in a year, and which has solemnly declared duties and 
 pledges resting on it, both for remittances of interest and capital, and which 
 is suited to form a fund of reimbursement, cannot, at a moment's notice, 
 be wound up, to suit the views and theories of any political party, without 
 a most violent breach of covenant, sufficient, in our opinion, to cause the 
 State to be sued for, in the Supreme Court of your land. A Bank like 
 your State Bank, conducted with merely ordinary prudence and foresight,"' 
 must and will ever be a source of revenue, and cannot, without a previous 
 and most scrupulous discharge of all its engagements, ever be dissolved,^ 
 like any private association. 
 
 Your stocks will materially sink in value, even though the security might 
 be ample and sufficient without the additional guarantee of the Bank and 
 its profits. Capitalists would consider the State had broken its solemn 
 pledges ; which would be the more to be regretted in a State that has sup- 
 ported, from its earliest settlement by its old families until this day, the 
 highest name for honor and nobility of character. May we therefore never 
 see this reputation tarnished by such a scheme ; for just at the present 
 time, every American and wellwisher of the American people must earn- 
 estly desire^ that a State like South Carolina will not take such a step; to 
 
f 
 
 REPOllTS OF SPECIAL COMMITTEES. 655 
 
 raise anew the storm of invectives, only now beginning to subside, against 
 the United States. To us it has been very pleasing to find, by the large 
 orders coming to hand both here and from the continent for various State 
 stocks, that an under current is. setting in again in favor of these invest- 
 ments, and this not for stock-jobbing purposes, but for Capitalists, who 
 place the highest confidence in your national institutions, and who believe 
 that Nations, and particularly those of late origin, may have to pass^ like 
 individuals in early years, through fever paroxysms ; yet who also know, 
 that in a body materially so sound in every regard, a return to a healthier 
 state, will and must eventually take place. It is this opinion which keeps 
 the value of all State stocks at their present rates ; relapses like the mea- 
 sure you mention, would create new distrust and gause retrograde move- 
 ments in all stocks. . 
 
 We have as individuals given our private opinion, founded on our know- 
 ledge of the feeling in the chief market for the sale of American stocks. 
 
 To broach the contents of jour letter to any one would be quite enough 
 to create an alarm ; we have therefore avoided consulting the opinions of 
 others, the more so, as we hope with you that no such suicidal measures 
 will ever be taken. If we have expressed ourselves warmly on the ques- 
 tion, it is because we feel strongly on a subject which so vitally concerns a 
 State wherein for many years we have been interested, and it is an interest 
 we desire to entertain years to come. With the utmost regard, believe us, 
 Dear Sir. 
 
 Yours very truly, 
 (Signed) ^ ■ C. J. HAMBRO & SON^ 
 
 PRESIDENT TO BARINO,, BROTHERS & CO. 
 
 Bank State South Carolina, 
 Charleston, October 6, 1843. 
 
 Messrs. Bari?ig, Brothers 4* Co. London. 
 
 Gentlemen : — I address you on a subject of great delicacy and import- 
 ance, and in which you have, I presume, no little interest. I trust that you 
 will consider my letter as strictly confidential, for reasons which will readi- 
 ly suggest themselves to you from what I shall say below. This Bank be- 
 longs exclusively to the State, and as such it is the constant subject of at- 
 tention to the Legislature, and is more or less affected by political ques- 
 tions and the theories of many who suppose themselves qualified or called 
 upon to propose plans of management or operations in regard to it. These 
 have never seriously interfered with its prosperity ; yet occasionally, from 
 causes of general embarrassment and from the conflicting interests of pri- 
 vate institutions and political causes, considerable impressions have been 
 made on the public mind, which require to be watched and . guarded 
 against. There has always been a small, but highly respectable and intel- 
 ligent party, who believe that the State ought not to have a Bank, and 
 have at all times been ready to support a law to discontinue and wind it up. 
 The various elements of opposition occasionally, rally under the lead of this 
 party, and thus present a more imposing appearance. Many arguments 
 .are used by them to afiect public opinion, but heretofore they have had but 
 
656 REPORTS OF SPECIAL COMMITTEES. 
 
 little success. It is said that something of the kind is again in agitation 
 and as while I say to you with the utmost confidence that there is not the 
 least danger, in my opinion, of their success ; yet I feel it my duty to he 
 prepared, as far as possible, to place information before the Legislature on 
 all points necessary to the proper consideration of the subject, if the move- 
 ment should be attempted. In the result of such a measure, none out of 
 South Carolina have a deeper interest than your house. You are the pur- 
 chasers of a large portion of the Fire Loan for re-building the City of 
 Charleston, under the Act of x\ssembly of June, 1838. Under that Act 
 the faith and funds of the State (which include the Bank) were pledged 
 to secure the punctual payment of the Bonds: the Bank was directed to 
 make proper provisions for the punctual payment of the interest, " also for 
 the- ultimate payment of the principal thereof," and finally it was enacted 
 that "when the profits of the said Bank of the ^'tate of South CaJ:olina 
 shall have paid the interest of certain stocks, and redeemed the said stock, 
 for which they have heretofore been pledged and set apart, the said profits 
 shall also be considered solemnly pledged and get apart for the payment 
 of the interest on the said loan and the final redemption thereof." Since 
 the passage of this Act and the negotiation of the loan with your House, 
 this Bank has punctually discharged from its profits all interest chargea- 
 ble on the stocks above referred to, and also paid off $1,000,000 of the 
 principal, which has been duly cancelled, and has now a surplus from said 
 profits in a Sinking Fund ready to pay off the principal of the remaining 
 stocks as they fall due. How far your determination ^to take a part of the 
 Fire Loan was influenced by these collateral securities, is not known to me; 
 but it is reasonable to suppose they had some weight. My object in this 
 communication is to learn from yourselves whether such was the case, and 
 also, whether in your opinion the discontinuance of the Bank, and conse- 
 cj-uent, withdrawal of the arrangements made by and through it for the 
 punctual payment of interest and ultimate redemption of principal, will 
 affect the value of the stocks in the hands of the holders, or be considered 
 in any degree as a departure from the contract, or impinging upon the good 
 faith of the transaction. On the fidelity and strict honor with which all 
 her arrangements are to be fulfilled, South Carolina has ever been most 
 scrupulous, and it is with a view to be able to place before her Representa- 
 tives, if occasion requires it, the most authentic evidence of the light in 
 which such a measure would be viewed, as well as the effect it may have on 
 her credit and character, whatever it may be, that I now ask your conside- 
 ration and answer to the foregoing inquiries. Let there be no misappre- 
 hension between us. I therefore repeat, that I do not know that the mea- 
 sure I have adverted to is seriously entertained, or will be proposed, nor 
 will it have the least chance of success, I believe, if it is proposed. Nor 
 again, if it should succeed, do I believe there will be any lack of means or 
 want of punctuality in meeting principal and interest. 
 
 From long and thorough knowledge, both of her means and the feelings 
 and principles of her people, I am fully persuaded that her creditors would 
 find her paying, to the day, all she owes. 
 
 If the occasion requires it, I trust you will give me your consent to use 
 your replies at my discretion. 
 
 I am, gentlemen. 
 
 Very respectfully, 
 
 Your obedient servant, 
 
 F. H. ELMORE, President. 
 
REPORTS OF SPECIAL COMMITTEES. 657 
 
 PRESIDENT TO BARING, BROTHERS & CO. 
 
 Bank State South Carolina, 
 Charleston, November 1 1th, 1843. 
 Messrs. Baring^ Brothers ^- Co. Loi^don. 
 
 Gentlemen : — I wait on you with the above duplicate of mine of the 6th 
 October last. Since then I have received (within a few days) a letter from 
 His Excellency Governor Hammond, of this State, in which he informs me 
 that he shall feel it his duty to recommend in his message to our Legisla- 
 ture that this Bank be wound up, and its funds applied to pay off the pub- 
 lic debt in seven years. You will see that my anticipations have not been 
 groundless. I repeat, however, what I said in my last as to my opinion of 
 the fate of this proposition. . I now renew to you my request that you will, 
 as soon as possible, let me have your views of this measure. Our Legisla- 
 ture assembles on the 4th Monday of this month, and sits until about the 
 20th of December. Your reply will, I hope, reach me in time to have its 
 full weight upon, their determinations. Pray direct your letter to me at 
 Columbia, South Carolina, where the Legislature holds its sessions. 
 
 At the same time I wrote to you I addressed a letter to the American 
 Minister, the Hon. Edward Everett, making similar enquiriesof him. In 
 sending that letter there was a small matter neglected, which I did not 
 know of until afterwards, viz : to provide for the payment of the postage in 
 England. If you do me the favor to apologize for this negligence, and to., 
 pay it, I will be obliged to you ; charge it to our account. You may also, 
 if you deem it of sulRcient consequence and worth while, confer with Mr. 
 Everett on this subject. His opinions will have no little weight with us, 
 
 With great respect. 
 
 Your obedient servant, ' 
 (Signed) F. H. ELMORE, President. 
 
 BARING, BROTHERS & CO. TO PRESIDENT. 
 
 7b F. H. Elmore^ Esq. President 
 
 of the Bank of tJie State of South Carolina^ Charleston, S. C. 
 
 London, 4th December, 1846. 
 Sir, — We have the honor to acknowledge the receipt of your two letters 
 of the 6th October and 1 1th November, with the inquiry, in what light an 
 Act of the Legislature of South Carolina would be viewed by the foreign 
 holders of the Bonds issued by the State for the purpose of re-building 
 the City of Charleston, the result of which Act would be the liquidation 
 and abolition of her Bank over which you preside, and to what extent that 
 Act would interfere with the spirit and conditions of the contract and 
 agreement made for the negotiation of these Bonds. In the first place, 
 we would remark, that from the general distrust which has, for some time 
 past, existed in Europe with regard to the securities of the United States, 
 any change would excite suspicion, and by interfering with a previous un- 
 derstanding, unsettle the minds of the Bond holders, and shake the confi- 
 dence which has hitherto existed in the engagements of the State of South 
 Carolina. Almost the whole amount of the Bonds sold here, have passed 
 from our hands into the possession of numbers of individuals, and are thus 
 
 83 • ' 
 
658 REPORTS OF SPECIAL COMMITTEES. 
 
 scattered over England and tlie Continent, and it has been a source of 
 gratification to us, that from a general reliance on the good faith of South 
 Carolina, and from the confidence .which we ourselves evinced in not forc- 
 ing sales, the stock of that State was saved, in a great measure, from that 
 depreciation to which the securities of so many other States have been ex- 
 posed. We confess that we should much regret, if, now that public opinion 
 is returning to a belief in the honest resolution and ultimate ability of all 
 the States to meet their engagements, anything should occur to call in ques- 
 tion, in the slightest degree, the stability of the policy of your State. For 
 ourselves, we are too intimately acquainted with the high and honorable 
 character of the citizens of your commonwealth, to entertain a moment's 
 doubt, that whatever measures may be proposed or adopted, the interest on 
 its debt could be jeopardized ; but we rather fear, that the act to which 
 you allude, might have a contrary effect on the minds of some of the Bond- 
 holders. Nor would it be altogether without some foundation For the 
 best illustration of our views, we take the liberty of transmitting to you 
 herewith a copy of the pamphlet which was distributed at the time of the 
 negotiation of the Loan, containing copies of all the documents respecting 
 it, accompanied by some prefatory remarks of General McDuffie at the 
 time, and we have marked some of the passages, which show, that not only 
 is the Bank so much mixed up as the fiscal agent of the Government, as to 
 be, with difiiculty, separated from the operation, but it appears, evidently, 
 as a collateral security with its guarantee, and pledges its profits towards 
 the payment of interest and principal. There can, therefore, be no doubt 
 in our minds that the removal of the Bank of South Carolina would be a 
 departure from the original contract, which we should deplore as an impoli- 
 tic injury to the value of the Bonds and to the credit of the State. Of 
 course, if our opinion is worthy of any consideration, we cannot object to 
 your representing it in the proper quarters, and we have the honor to sub- 
 scribe ourselves with great respect. 
 
 Sir, your most ob't. servants, 
 (Signed) BARING, BROTHERS & CO. 
 
 PRESIDENT TO HON. EDWARD EVERETT. 
 
 Bank State South Carolina, > 
 Charleston, October — ,1843. \ 
 To the Hon. Edwahd Everett, London : 
 
 Sir, — I irust you will excuse the liberty I take in addressing you on the 
 subject of this letter, when you take into consideration that it is one of pub- 
 lic moment to the State of South Carolina. In 1812, this State chartered 
 a Bank, of which she is the sole owner. From 1819 to 1830 she was en- 
 gaged in improving the roads and rivers, and expending several millions of 
 dollars on these objects. To carry on her improvements, she borrowed 
 considerable sums, and besides pledging the faith of the State for repaying 
 them, she also pledged the profits and capital of the Bank. In 1838, a 
 large portion of Charleston was burned down, and the State borrowed, $2,- 
 000 000, which was to be loaned to the citizens to aid them to re-build it. 
 A million of this loan was taken in England and is redeemable in 1858 and 
 1868. For the interest and repayment of this loan, she pledged her "faith 
 
 i 
 
REPORTS OF SPECIAL COMMITTEES. 659 
 
 and funds." of which this bank is a part, directed this Bank "to make proper 
 provisions for the punctual payment of the interest, and also for the ulti- 
 mate payment of the prliicipal thereof," and then follows this clause. — 
 "When the profits of the said Bank of the State of South Carolina shall 
 have paid the interest of certain stocks and redeemed the said stocks, for 
 which they have heretofore been pledged and set apart, the said profits shall 
 also be considered solemnly pledged and set apart for the payment of the 
 interest of the said loan and the final redemption thereof" The profits of 
 the Bank have, since 1820, (when the first loan was made) been set apart in 
 a sinking fund. From this fund all interest of the public debt has been 
 punctually paid, and $1.000 000 of the principal (in 1840 and 1842) been 
 extinguished since the loan of June, 1838. There is now about $750,000 
 of that fund in hand to meet the loans which are prior in lien to that of 
 1838, being more than one half of all that the State owes, exclusive of the 
 loan of 1838, and there is no reason to doubt that the profits of the Bank 
 will, by 1852, when the last of these falls due, have paid ofi" every amount^ 
 chargeable upon the Bank, except this loan of 1838, for rebuilding Charles- 
 ton. 
 
 An idea has been suggested which induces me to address this statement 
 to you, and to ask your opinion of the effect of the measure if adopted. It 
 is that the State shall abolish this Bank and withdraw all her funds from 
 Banking operations. In the relation which the Bank bears to the loan 
 made in England, it is very desirable to know what effect such a measure 
 might produce on the value of these stocks held under this loan by foreign- 
 ers, and how far it might be considered a departure from the terms of the 
 agreement.. Would you, Sir, have any objection to ^ive me your opinion 
 on the subject, so that if such a proposition should be made, I may be pre- 
 pared with proper information? This State cannot be induced to take any 
 step which would be considered as a breach of faith, or which, in the pres- 
 ent unsettled condition of American credit, might bring a new charge against 
 the honor and integrity of the State. If any inference unfavourable to her 
 character and credit would follow the adoption of such a measure, she will 
 never think of its adoption. Prepared at all times, faithfully to fulfil her 
 engagements, the reproach of a breach of faith she will never willingly and 
 knowingly incur, nor if the measure would lessen the value of the stocks 
 owned by those who have bought them, relying on thfese collateral as real 
 securities, will she entertain the idea after being informed of the effect. 
 Your position and standing will give great value and influence to your opin- 
 ion on this subject, and I trust, Sir,*you will not consider me as impertinent 
 in asking it. This commanication I would desire you would consider as 
 confidential at present, because it might, if known, create an impression 
 that there was some immediate prospect of such a measure being carried 
 into effect, when the fact is. that I do not apprehend that it could succeed, 
 if attempted, nor am I at all certain that it will be proppsed even. 
 With great respect and consideration, 
 I have the honor to be 
 
 Your obedient servant 
 (Signed) F. H. ELMORE, Pres. B. S. S. C. 
 
660 REPOKTS OF SPECIAL COMMITTEES. 
 
 HON. EDWARD EVERETT TO PRESIDENT. 
 
 London^ ^Wi Ncyvember^ 1843^. 
 
 Sir: — I duly received by the last steamer your favor of October (without 
 date of day) in which you request my opinion, how for the abolition of the 
 Bank of South Carolina and withdrawal of the funds of the State from 
 Banking operations, might affect the value of the stock of the South Caro- 
 lina State loan, and might be considered as a departure from the terms of 
 the agreement. It would be impossible for me to form any safe opinion on 
 the latter point without having the terms of agreement before me ; but as 
 to the general question I think it nearly certain that the first effect of the 
 measure would be a serious shock to the value of the bonds. If the State 
 of South Carolina, as I am sure would be the case, should, in abolishing the 
 Bank, substitute some other security equally substantial and available, and 
 continue to cause the interest on her loan to- be promptly paid, any such 
 shock would be but temporary, but while it lasted, the State would suffer 
 reproach, and individuals in the alarm of the moment would be apt to make 
 sacrifices. I need not add that there is a very great sensitiveness on the 
 subject of American State Stock in this country. The credit of the 
 stocks of South Carolina is, I believe, equal to that of any State in the 
 Union, and I am confident that nothing will knowingly be done to impair 
 it for a day. 
 
 I am. Sir, with great respect, 
 
 Your obedient servant, 
 
 (Signed) "^ - EDWARD EVERETT. 
 
 PRESIDENT TO HON. GEORGE McDUFFIE. 
 
 Bank State South Carolina, > 
 Charlestm^ lOth lYov., 1843. \ 
 Hon. George McDuffie: 
 
 My Dear Sir, — Gov. Hammond has just notified me, that he shall feel 
 it incumbent upon him to recommend, in his Message to the Legislature, 
 that the Bank of the State be taken to pay the public debt in seven years. 
 This will be by the 1st January, 1851. The Fire Loan negotiated by you 
 with the Messrs. Baring, Brothers & Co. will fall due in 1858 and 1868. 
 By the several sections of that Act, nuhlbered 1, 10, 11 and 12, at pages 
 43 and 48 of the accompanying copy of the compilation of the laws, &c. re- 
 lating to the Bank of the State of South Carolina, which I send herewith, 
 you will see the various pledges of the faith of the State and of the profits 
 of this Bank "for the punctual payment of the interest," and " for the ul- 
 timate payment of .the principal " of that loan. The proposed recommen- 
 dation of Gov. Hammond, if carried out, will annihilate the principal, and, 
 of course, prevent any profits. 
 
 I am directed by the Board to procure all such information as may be 
 needed to set the proposed measure in a proper light, and it has been deem- 
 ed highly important that I should address you, as the agent by whom the 
 loan was negotiated with Messrs. Baring, Brothers & Co., on the several 
 points stated in the enquiries below. 
 
 1st. Was any value attached by Messrs. Baring, Brothers & Co. to the 
 
REPORTS OF SPECIAL COMMITTEES. 661 
 
 pledge of the profit of the Bank and the security offered by these several 
 clauses, for either the "punctual payment of the interest " or " for the final 
 redemption of the principal?" 
 
 2d. Did you in your several negotiations yourself lay any stress or hold 
 these pledges as giving any higher value to our Bonds ? 
 
 3rd. Did the fact that a corporation was liable to be sued, which a State 
 was not, and that in addition to the usual pledges of the faith of a State, 
 there was, on our Bonds, the liability of our Bank, give to our Bonds an ad- 
 vantage over other State Bonds in the Market ? 
 
 4th. Do you suppose, that the withdrawal by the State, of the funds 
 pledged, and the winding up of the Bank, as suggested, would be consider- 
 ed as any infringement of the contract or condition of the loan, or as incon- 
 sistent with the faith pledged in the Act of 1 838 ? 
 
 5th. Do you suppose such a measure would lessen the value of these 
 stocks in the hands of the holders iu Europe? 
 
 6th. What effect do you suppose it would have on the character or credit 
 of South Carolina ? 
 
 I am, dear Sir, 
 
 BespectfuUy, &c. &c. 
 
 (Signed) F. H. ELMORE. 
 
 HON. GEORGE McDUFFlE TO PRESIDENT. 
 
 Charleston^ dOtk, Nov., 1843. 
 
 Dear Sir : — It did not occur to me, that you would probably be in Co- 
 lumbia as I passed through this place, and I therefore omitted to answer 
 your letter of the 10th inst, anticipating an interview with you here. In 
 answer to your 1st inquiry, I can say that very great value was attached 
 by Messrs. Baring, Brothers & Co. to the pledge of the profits of the 
 Bank, and also to the agency of such an institution in paying the interest, 
 believing that it would insure more certainty and promptitude than any 
 other description of agency. This was urged by me and admitted by 
 them. 
 
 2d. I have already answered this. 
 
 3d. The responsibility of the Bank, not only to the law, but to public 
 opinion, so essential to its success, had much weight in estimating the value 
 of the Bonds. 
 
 4th. From my answer to the foregoing interrogatories, it is obvious that 
 I can answer this only in the affirmative. 
 
 5th. I answer this also in the afl&rmative. 
 
 6th. It would certainly impair our credit ; for the Bankers of Europe, 
 judging us by our associates, believe the people will not vote for heavy 
 taxation to pay the State debts, but would be quite willing that the profits 
 of the Bank should be applied to that object. 
 
 Very respectfully yours, 
 
 (Signed) GEORGE McDUFFIE, 
 
G62 llEPOKTS OF SPECIAL COMMITTEES. 
 
 HAMBRO & SON TO PRESIDENT. 
 
 Lonrlon^ 4th December , 1843. 
 Franklin H. Elmorig. Esq. President B. S. S. C, Charleston. 
 
 Dear Sir, — In our letter of 18th November, of which we give you a copy 
 herewith, we had the honor to give you our candid views upon the impor- 
 tant question of winding up the affairs of your institution, and we now learn, 
 by the receipt of your regarded favour of the 10th Novtmber, that such a 
 measure has actually been recommended to your Legislature, by the Hon. 
 J. H. Hammond, Governor of the State. Although, as you confidently ex- 
 press, this proposal cannot meet with success, it may effect the value of 
 your securities. We are therefore prepared, shoud such take place, to ope- 
 rate upon your order, to purchase up to £20,000 at 90c. ; £30,000 at 85c. 
 and to £40,000 if at 80c. or lower, makiug a differance of 1 to 2 per cent, 
 between the State Bonds and those of the L. C. and C. R. R. Co. The 
 proposed measure of the Government not being known here as yet, these 
 securities maintain their former high position of 93 to 94 per cent. Even 
 at such prices, it is a rarity to meet with any of the stocks in the market. 
 You may rely upon our watching the market closely, and availing of the first 
 opening for operating for the interest of the Bank. We address you, as 
 usual, in a separate letter to the Bank, upon the running transactions, and 
 have the honor to be, with sincere esteem, 
 Dear Sir, 
 
 Your obedient servants, 
 
 (Signed) HAMBRO & SON. 
 
 COPY OF MR. McDUFFIE'S PUBLICATION IN LONDON. 
 
 And transmitted by Messrs. Baring, Brothers & Co. with their letter of 
 December, 4th, 1843, to show that the guaranty of the Bank and the 
 pledge of its profits were strong inducements to make the Loan. 
 
 The State of South Carolina has issued bonds to the amount of four 
 hundred and fifty thousand pounds sterling, bearing an interest of five per 
 cent, payable semi-annually in London, and redeemable also in London, 
 one half in 1858 and the other in 1868. These bonds were issued under 
 an Act of the Legislature, entitled " An Act fi.r re-building the. City of 
 Charleston^ which directs that they be sold,, and the money realized from 
 the sale, advanced, upon terms which will hereafter be stated, to such of 
 the citizens of Charleston as may desire such aid in reconstructing the 
 buildings destroyed by the late disastrous fire. 
 
 This act of munificent liberality on the part of the Legislature was' 
 prompted, not only by the obvious considerations of an enlightened patri- 
 otism, but by the more especial motive of sustaining the public-spirited 
 citizens of Charleston in the enterprize now in successful progress, of estab- 
 lishing a direct import and export trade with Europe ; an enterprize of 
 scarcely less consequence to the manufacturers and merchants of Great 
 Britain, than to the cotton planters and merchants of those American 
 States which produce the great staple of the commerce between the two 
 countries and the medium of their exchanges. Three-fourths of the whole 
 
liEPORTS OF SPECIAL COMMITTEES. 663 
 
 exports of tbe United States, and a much larger proportion of their ex- 
 ports to Great Britain, are of the growth and produce of the States in 
 question ; and as Charleston, with her rapidly extending communications 
 with the West, is the natural emporium of a large portion of the immense 
 commerce, of which cotton is the basis, the speedy re-construction of her 
 smouldering edifices can scarcely be a matter of indifference to either of 
 the parties connected with it. Such being the object of the loan now pro- 
 posed to be effected, the nature of the security offered will be next briefly 
 explained, and it is believed, that no American securities ever introduced 
 into this market, have higher claims to public confidence than the bonds in 
 question. They are signed by the Governor, in conformity to the law, 
 which expressly and directly pledges " the faith and funds of the State" 
 for the punctual payment of the interest as it shall fall due, and the ulti- 
 mate payment of the principal. This general pledge of thefunds of the 
 Statd. includes, of course, its entire revenue, and all the resources of taxa- 
 tion which belong to it as a sovereign community : and when the fact is 
 stated, that its annual export is ten millions of dollars, principally of cot- 
 ton to Great ]>ritain, not only the superabundance of its means are made 
 manifest, but their peculiar fitness to meet with punctuality its European 
 engagements in every conceivable emergency of commerce, or derangement 
 of the exchanges. Even should the Banks of the United States again 
 stop payment and their currency become utterly disordered, the State would 
 not experience the slightest embarrassment in the punctual fulfilment of 
 of its engagements, for Cotton is a Bill of Exchange which will' never be 
 protested in Great Britain, and South Carolina would have, in the annual 
 crop of a single citizen, the means of discharging the periodical interest 
 upon her whole debt. 
 
 But the Legislature, in order to '• make assurance doubly sure," has pro- 
 vided, that in addition to the general pledge of the faith and resources of 
 the State, particular funds shall be specifically appropriated, and "solemn- 
 ly pledged and set apart," to secure the punctual payment of the interest 
 and principal of this Loan. As this fund will partly consist of the profits^ 
 which shall accrue from the two millions now to be borrowed, the mode in> 
 which it is to be used will be stated. It is to be deposited in the "Bankj 
 of the State of South Carolina," as so much capital to be employed by that^ 
 Bank, acting as the fiscal agent of the State, in accomplishing the objectj 
 of the loan. For this purpose, the " President and Directors" are directed> 
 to advance to the owners of lots, on which the houses were destroyed by^ 
 fire, in the first instance, one-half of the assessed value of these lots vnivi-^ 
 proved^ taking bonds with a mortgage on the premises, conditioned that| 
 the sum advanced shall be repaid in ten annual instalments, the first in| 
 three years from the date of the bonds, and that a rate of interest suffi-| 
 cient to cover that paid by the State, shall be paid annually from the datej 
 of the advance. On being certified of the faithful application of this first 
 advance to the construction of incombustible buildings (which the law re- 
 quires in future.) the Bank is to advance another equal sum on the same 
 conditions, and finally, if so much be necessary, another equal sum upon 
 the faithful application of the two first, the parties having the premises in- 
 jured, and the policy deposited with the Bank for its security. On the 
 failure of the parties to pay the interest or principal punctually, the Bank 
 is authorized to foreclose the mortgage, and sell the premises for cash, in a 
 summary manner. The President and Directors of the Bank are required 
 
664 REPORTS OF SPECIAL COMMITTEES. 
 
 |to keep a separate account of the accumulating profits, which shall arise 
 Jfrom the use of the two railUons, including the annual interest received 
 jfrom the lot owners, and these are ''soleranlv pledged and set apart" by 
 Ithe lajv for " the punctual payment of the interest and principal of this 
 iloan." 
 
 The whole existing debt of the State is nominally one million seven 
 (hundred thousand dollars; but as onfe-half is redeemable in 1840, and 
 Ifunds are actually provided in the treasury to pay it, the real debt of the 
 |State is only eight hundred and fifty thousand dollars. And the law pro- 
 'vides, that when this shall be discharged, the whole of the profits which 
 may be derived from the capital of one million one hundred and fifty thou- 
 sand dollars, which the State now has in the Bank, as well as those arising 
 from the two millions, shall be solemnly pledged and set apart to pay this 
 loan. Tt is thus apparent, that the funds specifically pledged and appro- 
 priated, are amply sufiicient to ensure its punctual payment, independent 
 of the general revenue of the State. For, after three years, one tenth of 
 jthe principal sum of two millions will annually return to the Bank, so that 
 Un thirteen years the whole will be there, yielding a profit to the State, and 
 ready to discharge the whole loan, seven years before the first half of it will 
 be redeemable. 
 
 But the Legislature has not only provided the most abundant and avail- 
 able mea7is for meeting- its engagements, but a fiscal affency. eminently 
 Sadapted to ensure the most perfect punctuality. The payment of the in- 
 terest and principal of this loan is guarantied by the Bank of the State of 
 [South Carolina, an institution of as high character as any in the United 
 States. The importance of the agency of such an institution, connected 
 as it is, with all the operations of trade, and depending on the punctual 
 discharge of its engagements, for that public confidcnca upon which its 
 prosperity essentially depends, will be fully appreciated by all who are 
 practically acquainted with the inseparableness of the connection between 
 Bank credit and Bank punctuality. 
 
 I will here remark, what I omitted in its proper place, that I did not in- 
 clude as part of the State debt, the bonds of the " Louisville, Cincinnati 
 and Charleston Rail Road Company," the payment of which is guaranteed 
 by the State, and .which, to the amount of one million of dollars, have been 
 recently negotiated in this market. I did not include these bonds among 
 the debts of the State, bocause the responsibility of the State will be con- 
 verted into an actual debt, only when the C impany fails to pay the interest 
 and principal of its bonds punctually — a failure which, from my knowledge 
 of the Company and the high character of those who conduct its afiairs, I 
 am confident will never occur. 
 
 I will here remark in conclusion, that the City of Charleston, by an Or- 
 dinance of its Council, stands bound to indemnify the State against any 
 losses it may sustain, by the failure of those who receive advances for re- 
 buildina:. to comply with their engagements. 
 
 GEORGE McDUFFIE. 
 
REPORTS OF SPECIAL COMMITTEES 
 
 665 
 
 Cl,AUSES 
 
 Of tJm '• Act for re-hiiilding the City of Charlestons^ referred to by Baring^ ^ 
 
 Brothers Sf Go. 
 
 Section XI. It shall be the duty of the President and Directors of the 
 Bank of the State of South Carolina, to cause to be opened in the books of; 
 the said Bank, an account, in which they shall debit themselves with the 
 profits arising out of the additional capital created out of the two millions^ 
 Loan aforesaid, for the year ending on the first day of October, in the year 
 of our Lord, one thousand eight hundred and thirty-nine, and with all the 
 future profits of the said Loan, as the same shall hereafter be annually de- 
 clared, which said fund, with its accumulations, shall be considered solemn- 
 ly pledged and set apart for the payment of the interest on the said Loan, 
 and the final redemption thereof, and it shall be the duty of the President; 
 and Directors of the said Bank, annually to report to both brandies of th 
 Legislature the exact state of that fund. 
 
 Section XII. When the profits of the said Bank of the State of South 
 Carolina shall have paid the interest of certain stocks, for which they hav 
 heretofore been pledged and set apart, the said profits shall also be consid 
 ered solemnly pledged and set apart for the payment of the interest on tb 
 said Loan, and the final redemption thereof 
 
 THE STATE OF SOUTH Cl^EOLINA. 
 
 By his Excellency P. M. Butler, Governor and Coinmander-in-Chirf in 
 and over the State aforesaid. 
 
 To all to whom these presents shall come, Know ye, That I do hereby 
 constitute and appoint George M'Duffie, the Agent of the State of South 
 Carolina, to efl:^e'ct the Loan of Two Million Dollars, authorized by an Act 
 of the Assembly of said State, whereof a copy is annexed, and that I do 
 empower him to fill any blanks in the Bonds and Coupons which I have 
 caused to be prepared on the part of the State, and do bind the said State 
 to be responsible for all acts of the said George M'Duffie, done in virtue of 
 this his appointment as the Agent aforesaid. Therefore, all due faith, 
 credit, and authority is, and ought to be, had* and given to his proceedings 
 and certificates as such. 
 
 In Testimony whereof, I have hereunto set my 
 hand, and caused to be affixed the seal of State, in 
 the City of Columbia, the second day of August, 
 in the year of our Lord, one thousand eight hun- 
 dred and thirty-eight, and in the sixty-third year of 
 the Independence of the United States of Americ£^» 
 By the Governor, P- M. BUTLER 
 
 B. H. SAXON, 
 
 Secretary of Sta^e. 
 
 84 
 
666 REPORTS OF SPECIAL COMMITTEES. 
 
 (COPY.) 
 
 Know all men by these Presents, That I, Charles Jones Colcock, Presi- 
 dent of the Bank of the State of South Carolina, have made, constituted, 
 and appointed, and by these presents do make, constitute, and appoint, the 
 Honorable George M'Duffie, of the same place, my true and lawful Attor- 
 ney, for me, and in my name, place and stead, to fill up all blanks which 
 may be found in the Bonds, Warrants for interest, commonly called Cou- 
 pons, or in the guarantee written on the back of said Bonds, which are is- 
 sued under the authority of an Act of the Legislature of the State of South 
 Carolina, bearing date the firi^t day of June, one thousand eight hundred 
 and thirty-eight, and of the Independence of the United States of America, 
 the sixty-second, for obtaining a Loan of Two Millions of Dollars for Re- 
 building the City of Charleston ; giving and granting unto my said Attor- 
 ney, full power and authority to do and perform all and every act and 
 thing whatsoever requisite and necessary to be done in and about the pre- 
 mises, as fully to all intents and purposes, as I might or could do if per- 
 sonally present, with full power of substitution and revocatioii; hereby rati- 
 fying and confirming all that my said Attorney, or his substitute, shall law- 
 fully do, or cause to be done, by virtue hereof 
 
 In Witness whereof, I have hereunto set my 
 hand and seal, the twenty-fourth day of August, in 
 the year of our Lord, one thousand eight hundred 
 and thirty-eight. 
 
 (Signed) C. J. COLCOCK, 
 
 Sealed and delivered in the presence of 
 
 DAVID MAITLANR 
 
 (Copy of Bond.) 
 UNITED STATES OF AMERICA. 
 
 State of South Carolina. 
 
 £1000 ^ Loan utider an Act for re-building the £1000 ^ 
 
 or >Stg. or >Stg. 
 
 £500 ) City of Charleston. £500 ) 
 
 FIVE Per Cent. Stock. 
 
 No. 
 
 a. 
 
 By his Excellency Pierce M. Butler, Grovernor and Commander-in- 
 Chief in and over the said State : Be it known, that there is due from the 
 State of South Carolina, to the President and Directors of the Bank of the 
 State of South Carolina, 
 
 One Thousand Pounds 
 
 Or sterling lawful money of Grreat Britain, which 
 
 {Five Hundred Pou7ids) 
 
 sum of money the said State promises to pay the said President and Di- 
 rectors of the Bank of the State of South Carolina, or to their Assigns in 
 
REPORTS OF SPECIAL COMMITTEES. 667 
 
 London, on the surrender of this Certificate, on the first day of July, in 
 the year of our Lord 
 
 ofie thousand eight hundred and sixty-eigJtt^ 
 
 or with interest thereon, at the 
 
 {one thousand eight hundred and ffty-eight.)' 
 
 rate of Five per cent, per annum, payable semi-annually, from the date 
 hereof, as it becomes due, on presenting the several Warrants hereunto an* 
 nexed, at the Banking House of Baring, Brothers & Co. in Landon. 
 
 In Witness whereof, I have hereunto set my hand, and caused the seal 
 of the State to be affixed, at Columbia, the first day of July, in the year of 
 our Lord, one thousand eight hundred and thirty-eight, and in the sixty- 
 second year of the Independence of the United States. 
 
 PIERCE M. BUTLER, 
 
 Seal ^ 
 
 ^ Countersigned by 
 
 \ Wm. Ed. HAYNE, Comptroller General. 
 
 Governor. 
 
 (Copy OF Coupon.) 
 
 SOUTH CAROLINA STATE STOCK. 
 
 Under an Act ratified 1st June, 1838. 
 
 BARING, BROTHERS & Co. London. 
 
 Pay to Bearer, on the 1 st July, 1 839, Twenty-Jive Pounds > ster- 
 or Tivelve Founds Ten Shillings \ ling, 
 
 being a. half year's Interest on Bond No. 
 for £1000) 
 
 or >Stl'g. 
 
 £500 ) C. M. FURMAN, 
 
 £25, or > <;j . 1 Cashienr of Bank of State of South Carolina. 
 
 £12 10s S ° 
 
 I 
 
 (Copy of Endorsement on within Bond.) 
 
 In pursuance and by authority of an Act of the Legislature of the State of; 
 South Carolina, ratified on the first day of June, one thousand eight hun- 
 dred and thirty-eight — 
 
 The President and Directors of the Bank of the State of South Carolina,| 
 with a capital of three million one hundred and fifty thousand dollars (in- 
 cluding the present Loan) for value received, assign and transfer the with- 
 in Bond to or bearer, and hereby guarantee the punctual pay- 
 ment of the principal and interest of the said Bond, as it becomes due, at^ 
 the place specified within. 
 
 C. J. COLCOCK, 
 President of the Bank of the State of South Carolina, 
 
IIEPORTS 
 
 OF THE 
 
 COMPTROLLER GE1NERAL. 
 
 EXTRACTS THEREFROM, OF SO MUCH AS RELATES TO THE BANK. 
 
 (isrs.) 
 
 In obedience to the Acts of the Legislature, establishing the Bank of 
 the Stat6 of South Carolina, the Treasurer of the Lower Division, under 
 the sanction of a warrant for that purpose, did on the 1 4th day of January, 
 1813, pay to the order of Stephen Elliott, Esq., President of that Bank, 
 the sum of thirty thousand dollars, and has since deposited all monies re- 
 ceived by him in the coflfei-s of that Bank. The Treasurer of the Upper 
 Division has likewise made a deposit of twenty-one thousand three hundred 
 dollars. The Branch not having been established at Columbia, he was re- 
 quired by this department to retain in the Treasury a sufficient sum to meet 
 the probable demands upon that office. 
 
 Under the authority of a Resolution of your honorable House, of 24th 
 of September last, application was made to the President and Directors of 
 the Bank of the State of South Carolina, to ascertain Whether a loan could 
 be had of them, for the State, of one hundred and thirty-four thousand dol- 
 lars, to enable the State to assume and pay the direct tax imposed by the 
 United States. It will appear by a copy of the Resolution of that Bank 
 accompanying this Report, marked A., that they have consented to make 
 euch loan. — T. Lee, Compt. Gen. — Reports and Resolutions^ p. 86. 
 
 (1814.) • • 
 
 The Comptroller General further reports, that since the last meeting of 
 the Legislature there has been paid to the Bank of the State of South-Car- 
 olina, on account of capital, the sum of $62,876 81, and in full of the loan 
 negotiatiated with them, to meet the direct tax, the sum of $132,993 24 ; 
 and that he caused to be paid to the Treasurer of the United States, in full 
 of this State's quota, as will appear by his receipt, accompanying this re- 
 port, the sum of $129,119 66. 
 
 The Comptroller General further reports, that the Bank of the State 
 of South-Carolina has paid over to the two offices of the Treasury, for the 
 profits arising from their banking establishment, for the last two years, the 
 sum of $3,325 20.— T. Lee, Comp. Gen.—R. Sf R.,p. 77. 
 
COMPTKOLLEll (lENEKAL. 669 
 
 - (18L5.) 
 
 The Bank of the State of South Carolina has been repaid the sum bor- 
 rowed of them, with interest, amouting to $265,1 1 1 22.* — T. Lee, Comp. 
 R.&R.,p. 100. 
 
 (1816.) 
 
 The Comptroller General further reports, that the Bank of the State of 
 South Carolina, since the close of the fiscal year, viz., in October last, paid 
 into the lower treasury, for the profits of the last year, the sum of $63,022 
 69. That the Bank has received from tlie Treasury, on account of capital 
 since 1st October last, the sum o'f $100,246 22. That in obedience to the 
 Act of your honorable House, of the last session, he caused this State's quota 
 of the direct tax, amounting to $129,1 19 66, to be passed to the credit of the 
 Treasury of the United States, and received from that officer a discharge 
 therefor. 
 
 The Bank of the State of South Carolina, with whom the loan was ne- 
 gotiated, has been paid the same with interest, amounting to $130,849 86. 
 T. Lee, C. G.—K. if R.,p. 109. 
 
 (1817.) 
 
 That the Bank of the State of South Carolina has received from the 
 treasury, between the last day of September, 1816, and the first day of 
 October^ 1817, the sum of one hundred'-and twelve thousand 'five hundred 
 and thirteen dollars and fifty-six cents, on account of capital ; and has paid 
 to the Treasury, since the 1st of October last, the sum of seventy-six thou 
 sand five hundred and seven dollars and ninety-one cents, as profit.— E, 
 Creswell, C. G.—R. 4*. R-^ p- 85. 
 
 (1818.) 
 
 No. 5, is a report of the funded debt of this State made by the Treas- 
 urer of the Lower Division, by which it will appear tha^t the Bank of the 
 State of South Carolina, on the first day of January last, called in, for re- 
 demption, the deferred stock, amounting to thirty-six thousand six hundred 
 and sixty-six dollars and fifty-four cents. Also, on the 1st of July last 
 called in for redemption, the six per cent, stock, amounting to one hundred 
 and forty-three thousand eight hundred and ninety-seven dollars and six- 
 teen cents. 
 
 There now remains outstanding the three per cent stock, amounting to 
 two hundred and fifty-nine thousand three hundred and thirty-two dollars 
 and ninety-nine cents. ~ 
 
 •■To pay direct tax of South Carolina to United States. 
 
G70 IIEPOIITS OF THE 
 
 No. 14, is tlie report of the Treasurer of the Lower Division, by which 
 it^will appear that the Bank of the State of South Carolina passed to the 
 credit of the Treasury, the sum of one hundred and five thousand eight 
 hundred and thirty-eight dollars and seven cents, as the profits of the Bank 
 for the last fiscal year, ending the last day of September last. 
 
 That during the last fiscal year, the Bank of the State of South Carolina 
 received from the Treasury of the Lower Division, the sum of three hun- 
 dred and twenty-eight thousand sixty-seven dollars and two cents, as capi- 
 tal.— R. Creswefx, C. G.—R. Sf R.,pp. 78 & 79. 
 
 (1819.)- 
 
 No. 5, is a report from the Treasurer of the Lower Division, that on the 
 8th of October last there was passed to the credit of the State Treasury, by 
 the Bank of the State of South Carolina, the sum of one hundred and 
 seven thousand five hundred and ninety-three dollars and ninety-five cents, 
 ($107,593^ 95,) as the profit- of said Bank for the last fiscal year. 
 
 The Comptroller (jieneral also reports, that the Bank of the State of 
 South Carolina has received from the Treasury of the Lower Division, 
 during the last fiscal year, the sum of one hundred and seventy-one thou- 
 sand five hundred and thirteen dollars and ten 6ents. as capital. — J. S. 
 CoGDELL, a G.—R. 4' R. pp. 60 & 62. 
 
 (1820.) 
 
 No. 5, is a Report from the Treasurer of the Lower Division, that on 
 the llth day of October, 1820, there was passed to the credit of the State 
 Treasury, by the Bank of the State of South Carolina, the sum of one hun- 
 dred thousand two hundred and eighty-seven dollars and thirty-seven cents, 
 ($100,287 37,) as the profits of said Bank for the last fiscal year. — J. S. 
 CoGDELL, C. G. — R. ^'. R., p. 57. 
 
 (1821.) 
 
 No. 16, is a report of the profits of the Bank of the State of South Caro- 
 lina, for the last fiscal year, amounting to $86,525 38. — T. Lee, C. G. — 
 R.'SfR.,p.56. 
 
 (1822.) 
 
 The Bank of the State forms one of the most interesting and impor- 
 tant objects within the circle of duties ascribed to this department. Whilst 
 the principles of banking appear to me to be too plain to be misunderstood, 
 there is a question, and it "appears to be the only one, which should deter- 
 mine the legislature upon this subject : Can the State, through its agents, 
 bank with as much safety as companies of individuals? And tliis question 
 
COMPTROLLER GENERAL. 671 
 
 should be determined alone by the guards against corruption and misman- 
 agement, which the Legislature may be able to place on their agents. If 
 it is to be considered a dangerous experiment on the part of the State, she 
 has already embarked too much and gone too far, and should return to a 
 state of safety as soon as possible; but if on the contrary she can carry on 
 the business of banking with as little risk as private companies, I confident- 
 ly believe she has not gone far enough. 
 
 With a view to our permanent revenue, this topic is of the greatest in- 
 terest to the state, and the present session is the time at^which it should re- 
 ceive your earnest attention. Whilst I unhesitatingly give it as my opin- 
 ion that the State may- batik, with as much safety and profit as companies, 
 I feel it a duty to say that the Legislature cannot use too much caution in 
 placing proper guards upon h^r agents, and too much vigilance in prevent- 
 ing fraud and mismanagement, and that I believe the security may and 
 ought to be increased by a legislative provision. 
 
 Permit me to suggest the expediency of making each of the^ Directors 
 ineligible to a seat on the Board one year in every three or four. 
 
 If the Legislature consider the Bank as a permanent source of revenue, 
 and are satisfied that the securities are or can be made adequate to its safe 
 and judicious management, I can see no stop which should be put to its 
 progress, but that which expediency may require, in limiting the quantity 
 of circulating medium, until it may yield a revenue equal to the exigen- 
 cies of our government. 
 
 If the State can command the means of doing all the banking business 
 necessary to its own prosperity, in addition to the revenue produced, 
 another object more desirable will be partially if not completely obtained. 
 It will keep within itself, instead of presenting it to companies, the power of 
 regulating the quantity of circulating medium, according to the exigencies 
 which the changes of prosperity or adversity may bring upon the country. 
 Having once granted charters to companies, the Legislature cannot resume 
 or diminish their privileges, should a state of things render it at any time 
 expedient, but you may at all times say to your own Bank, ^o far shall you 
 go, and no farther. And surely, if circumstances should at any time re- 
 quire a change in the circulating medium of the State, the power to make 
 that change would be more safely vested in the wisdom of the Legislature, 
 than trusted to the interest of companies controlled by the limits of their 
 charter alone.— B. T. Elmore, C. G—R. Sf R. 2)p. 7Q & 77. 
 
 (1823.) 
 
 No. 8, is the annual statement of the Bank of the State, by which it 
 appears that the nett profits of the last year ending on the 30th Septem- 
 ber, 1823, were $1 13,207 61 : Which sum, in obedience to the act of the 
 20th December, 1821, has been carried to the account of the Sinking 
 Fund. 
 
 In obedience to the Act to raise supplies for the last year, I have the 
 honor to report to the Legislature, that agreeable to its directions, $200,000 
 of five per cent, stock, was sold by the Bank of the State, and brought the 
 sum of $202,214 37, which was paid into the Treasury office of the Lower 
 Division. 
 
672 REPORTS OF THE 
 
 The State presents the anomalj in finance, of placing not only a large 
 banking capital, but the whole of its treasury, in the trust of a few individ- 
 uals, with no other security for their faithful and honest management than 
 their individual character. " 
 
 Character is certainly one of the best securities which can be obtained, for 
 the discharge of public duties, but I can see no reason why others should 
 not be added. It is in vain to say, until the human character undergoes a 
 thorough change, that you can fill the directio^i of your Bank with indi- 
 viduals who will serve the State from disinterested motives alone ; and it 
 is a question yet to be settled, whether you are not paying your Directors 
 the highest price for their services, without possessing a corresponding se- 
 curity for their fidelity and honesty. It is known to be the practice of the 
 Bank, to dxtend to each director a credit to a considerable amount. As 
 the State gives no compensation for the discharge of this very important 
 trust, this cannot be considered unreasonable. 
 
 But it is to be feared that many bad debts may be contracted thereby, 
 and the State become a loser to an amount which would have exceeded a 
 proper direct compensation to tlie directors — although I am aware that any 
 recommendation upon this subject from this department will have but little 
 weight. Yet I feel it my duty to present my views to the Legislature. I 
 would recommend it as worthy of your consideration to give to the Direc- 
 tors a fixed salary, as full compensation for their services, and also to bind 
 them in a bond, for the faithful discharge of their duty, conditioned that 
 they should not borrow any money from the Bank in their own or any other 
 persons' names, or to be used directly or indirectly for their interest or 
 benefit, with a similar condition annexed to their oath of ofiice. 
 
 If the Legislature should concur in these views, it is believed that the 
 number of Directors may be diminished, and that in the winding up of the 
 business of the Bank, it will be found that it has pursued a true and strict 
 economy, by which it will have paid less for this service than it will do, if 
 it pursues its present plan, with the additional advantage of gaining the 
 best security against mismanagement and fraud, which such a case cau 
 give.— T. B. Elmore, C. G.—R. ^ R.pp. 79, 81, 82, 83. 
 
 (1825.) 
 
 No. 9, is a statement of the 3 per cent, stock, by which it will be seen 
 that there remains a balance outstanding of $259,332 19 against the State. 
 
 No. 10, is a statement of the sinking fund, by which it appears that 
 there was a balance at the end of the year, of $191,283 85 in its favor. — 
 The Comptroller G-eneral would respectfully observe, that since that time, 
 the profits of the Bank, on the last year's business, have been carried to that 
 fund. 
 
 No. 11, is a statement of $250,000, of 5 per cent stocks, sold by the 
 Bank last year, which, agreeable to the Report of that institution, brought 
 the sum of $259,565 62. 
 
 No. 12, is a statement of the Bank, exhibiting its profits for the last 
 year, by which it appears that the sum of $115,042 96, being its profits, 
 has been carried to the account of the sinking fund." — B. T. Elmore, C. 
 G.—R. Sf R.,p. 69. 
 
 I 
 
GOMPTHOLLER eENERAL. 673 
 
 (1827.) 
 
 Tlie Comptroller. General reports to the honorable the Legislatuye of 
 Bouth Carolina, the fiscal transactions of the year ending 30th September 
 1827. 
 
 The Act of the last session authorizing on certain conditions the 
 admission of private Stockholders into the Bank of the State of South 
 Carolina, has not been carried into effect, on account of various objec- 
 tions, on which it will be unnecessary for me to dwell, as they will no doi\bt 
 be fully presented to the Legislature by the learned President of that insti- 
 tution. 
 
 The profits of the Bant during the year, as reported to this Depart- 
 ment, have amounted to $75,000, and there has been, from the monthly re- 
 ports, continued evidence of rapid progression towards a flourishing and 
 sound condition. As Committees however of your honorable body will have 
 prepared reports to the Legislature on the condition of the Bank, it will 
 supersede the necessity of my dwelling longer on the subject. 
 
 On the 30th September, 1826, the Sinking Fund amounted to $235,- 
 506 99 ; to which, was shortly afterwards carried the profits of the Bank, 
 amounting to $70,500, making together the sum of $306,006 99. From 
 this sum there has been drawn, to meet the interest on the public debt, up 
 to 30th September, 1827, the sum of $74,646 35 ; consequently the sink- 
 ing fund, on the date last written amounts to $231,360 64. To this, is to 
 be added the present profits of the Bank, amonnting, as stated above, to 
 $75,000 ; but as it will require this sum, if not more, to meet the interest 
 on the public debt during the ensuing year, the probability is that the 30th 
 of next September, will find this sum diminished, rather than increased. — 
 A clause in the Act of the last session, authorizing the admission of private 
 Stockholders into the Bank, directed the investment of the fund in certain 
 stock, under the direction of the Comptroller General, and President of the 
 Bank. 
 
 This course had been strongly urged in the Comptroller's Eeport, but 
 after mature reflection by the Committee of Ways of Means, had been dis- 
 agreed to, on the ground that the situation of the Bank would not then 
 warrant, without injury, the withdrawal of funds to that amount. . 
 
 From this consideration, as well as from the fact, that the clause after- 
 wards passed, had been inserted in the Act for extending the charter of 
 the Bank, it was presumed to be the intention of the Legislature that this 
 investment of the sinking fund was to depend upon the success of the whole 
 scheme ; and as the balance of the scheme did not succeed, nothing lias 
 been done in the matter. That it is important to the interests of the State 
 to increase this fund yearly, and to invest it in stock, bearing an interest 
 equivalent to the interest we are paying on equal sums, I cannot doubt ; 
 not only because it would enable us at all times to redeem, to that amount, 
 our own paper, when found in the market, at a fair value, but also, by this 
 course, we would escape the loss resulting from a failure in banking — a 
 catastrophe somewhat to be dreaded, even with the best managed institu, 
 tions.— A. SrEER, C. G.—R. 4' R.pp. 1 & 2. 
 
 (1828.) 
 
 The public debt has undergone no change since the last year, except that 
 the Bank has cancelled a part of the old three per cent, stock which it had 
 
 85 
 
674 REPORTS OF THE 
 
 purchased, and wliich of consequence reduces its own capital to the same 
 extent. 
 
 The income of this institution for the current year has been $113,802 
 95, which will enable it, after defraying the interest accruing on the public 
 debt for the ensuing year, to carry a handsome sum to the credit of the sink- 
 ing fund. 
 
 The propriety of the original establishment of the Bank, cannot now be 
 considered as open for discussion, but if we take into consideration the 
 present condition of our finances, their intimate connexion with and reliance 
 upon the Bank, together with the heavy burthens ihaposed upon the latter, 
 in relation to our public debt, there remains little doubt, that to nourish and 
 guard its interests is at present the peculiar province of the Legislature. 
 More than ninety thousand dollars are necessary to meet the annual in- 
 terest for which the Treasury is liable, and if from any cause the Bank 
 should fail to pay it, a resort to increased taxes would be inevitable. 
 
 So far, however, this institution has been able to meet the requisitions of 
 the public creditors, and at the same tim6 accumulate the existing sinking 
 fund ; and an opinion is here confidently expressed, that with judicious 
 management on the part of the direction, and a fostering and paternal care 
 on the part of the Legislature, the Bank will enable the Treasury to dis- 
 charge the public debt without increased demands on the citizens. 
 
 The offers that for two years past have been made by the Legislature, to 
 admit private stockholders to participate in this institution, have not been 
 accepted, £\nd for what reason it would be hard to say, unless we were to at- 
 tribute it to the opposition of the other institutions of the kind in the 
 State. As far as the finances of the State ■are concerned, I have no doubt 
 that the failure has been a fortunate circumstance, arid in my opinion the 
 offer should not again be made. I do not think that in the prosecution of 
 several interests, the public can ever have an equal chance with the cupidity 
 of individuals, and that, generally speaking, when. they come to a division, 
 the profits will goto the one, and the loss to the other. Were there, how- 
 ever, no force in this objection, still it could not be expected that after 
 inceasing the capital of the Bank, two or three . fold, it could ever divide 
 the same rate per cent as formerly ; for it is a well known fact, that the 
 profits of a Bank will not increase in proportion to the increase of its 
 capital. 
 
 The institution went into operation in September 1813, with a compara- 
 tively small capital ; and from that time up to the present, it has made and 
 paid on account of the Treasury, the sum of $1,315,977 57. This should 
 be satisfactory, and certainly ought to operate as a check to any fanciful 
 and untried schehae of improvement. 
 
 As a general rule in. transactions of this kind, when we are doing well it 
 is not an act of wisdom, to run the hazard of ruin, by attempting to do 
 better. 
 
 Some, in their zeal for innovation, and perhaps in a spirit of hostility, 
 are for closing this Bank altogether, and the reason given is that in their 
 opinion it is not so solvent as from its reports it professes to be. Were 
 this true, would the remedy cure the evil, or are they prepared for the con- 
 sequences that must inevitably flow from the closing of its doors? The 
 interest on the public debt would, in the first place, Mve to be met by in- 
 creased taxes, and this, pernicious as it would be, would dwindle into insig- 
 nificance when contrasted with the evil that must result from calling in the 
 debts of the Bank, in this day of pecuniary distress. When commerce is 
 
 I 
 
COMPTROLLER OBNERAL. 
 
 676 
 
 at a dead stand, when produce is worth nothing in the hands of the planter, 
 and when, through the benificence of our rulers, a circulating medium 
 has almost ceased to exist, he can be little acquainted with the duties of 
 a statesman, that by any additional move, would add to the general dis- 
 tress. 
 
 The Sinking Fund still remains on deposit in Bank, and is making an 
 interest to the State, by enabling that institution to extend by that amount 
 its ordinary business. 
 
 Six per cent stock cannot at present be purchased in market without a 
 large premium, and as the profits of the Bank are more than equal to six, 
 a conversion of this fund into stock could not be effected without loss to 
 the State, and therefore nothing has been done in this matter. — A. SpeeRj 
 C. G.—R.SfR.j). 1- 
 
 < 18-29.) 
 
 The income of this institution has for the last year amounted to $112,- 
 000, and the monthly reports made to this department, show a solvent and 
 sound condition ; nor has anything transpired calculated to impair public 
 confidence in its value and utility. If the nature and amount of the public 
 debt are duly considered,"the Bank must become an object of no ordinary 
 interest, as the only means by which it can be discharged, other than by a 
 resort to taxation ; and the experience of another year has only served to 
 confirm the opinion formerly expressed on this subject. 
 
 If we are to judge of the future by the past, there can be little doubt but 
 this institution will supersede the neccessity of an application to the TreajS- 
 Tiry for the discharge of any part of the public debt, and, consequently it 
 richly deserves the fostering, care of the Legislature. 
 
 For the convenience of the Legislature, as well as for the information of 
 the public, I have here subjoined a statement of the capital, income, and 
 rate percent, of the Bank; from the time. of its establishment, up to the 
 present period. , , 
 
 Fiscal 
 
 Capital. 
 
 Nett 
 
 R'tepr. 
 
 Year. 
 
 Income. 
 
 Cent, 
 
 1813 
 
 $179,223 46 
 
 $3,325 21 
 
 $1 85 
 
 1814 
 
 297,253 68 
 
 48,900 71 
 
 16 44 
 
 1815 
 
 391.890 39 
 
 63,022 69 
 
 16 08 
 
 1816 
 
 583.926 35 
 
 76,507 91 
 
 13 16 
 
 1817 
 
 887,872 59 
 
 105,838 07 
 
 U 92 
 
 1818 
 
 1,224,543 37 
 
 107,593 95 
 
 9 56 
 
 1819 
 
 1,196,220 65 
 
 100,287 37 
 
 8 38 
 
 1820 
 
 1,196,220 65 
 
 26,525 38 
 
 7 23 
 
 1.821 
 
 1,196,220 65 
 
 120,072 18 
 
 10 03 
 
 1-822 
 
 1,196,220 65 
 
 113,207 61 
 
 9 46 
 
 ■ 1823 
 
 1,196,220 65 
 
 116,350 58 
 
 9 71 
 
 1824 
 
 1,196,220 65 
 
 115,042 96- 
 
 9 61 
 
 1825 
 
 1,196,220 65 
 
 70,500 00 
 
 5 89 
 
 1826 
 
 1,196,220 65 
 
 75,000 00 
 
 6 26 
 
 1827 
 
 1,156,883 11 
 
 113,802 95 
 
 9 83 
 
 1828 
 
 1,156,883 11 
 
 112,000 00 
 
 9 68 
 
576 REPORTS OF THE 
 
 From this statement it appears that the nett profits of the Bank, up to 
 the present period, have been $1,427,977 57, and the average rate per 
 cent, on its capital, has been $3 69 on every hundred dollars per annum. 
 
 It may be worthy of remark, that the decrease of capital, as shown in 
 the statement of the two last years, has originated in the ptirshasing and 
 cancelling of three j/cr cent stock, as directed by law. — A SpEtR, C G. — 
 
 (1832.) 
 
 The profits of the Bank of the State of South Carolitia, for the last fiscal 
 year amount to $120,000. This sum has been carried to the credit of the 
 Sinking Fund, which amounts to $456,883 15 c^nts. — T.Harrison, C. 
 G.—R.SfR.pA. 
 
 (1833.) 
 
 The Comptroller General cannot conclude this report without adverting 
 to the favorable aspect of the finances of the State at this time. The 
 Bank, under circumstances peculiarly adverse to a successful application of 
 its funds, has maintained the opinion of its utility as a valuable auxiliary 
 to our revenue system, and proves the ability and care with which the man- 
 agement of the institution has been conducted. Indeed, a more successful 
 and certain mode of extinguishing the public debt cpuld not readily be de- 
 vised, than that which will be afibrded by the Bank, should its charter 
 be renewed, and should it continue to be conducted with prudence and 
 ability. It is believed that the means of the State, including the profits of 
 the Bank, will prove adequate to the extinction of the public debt with- 
 out the imposition of any additional taxes, and when the debt shall be paid, 
 a considerable diminution may take place in the public burdens — W, 
 Laval, C. G,—R. Sf R. p. 2. 
 
 (1834.) 
 
 The amount which has been transferred to the credit of the Sinking 
 Fund from the profits of the Bank, for the past year, is less than that of 
 the preceding year, by about fifteen thousand dollars. The deficiency was 
 occasioned by a succession of adverse occurrences, such as all banking 
 operations are (more or less) liable to. It is the duty of the President of 
 the institution, to furnish the particulars in his Annual Report to the 
 Legislature ; and as it is believed that he can explain the cause of loss in 
 a way which will be satisfactory, the confidence of the public ought not to 
 be lessened in the Bank, or towards its ofiicers. A sum deemed fully equal 
 to the greatest amount of losses apprehended, has been reserved by the 
 Board, while the Sinking Fund has been credited with a sum which ex- 
 ceeds by twenty thousand dollars, the amount of interest for which that 
 fund is chargeable. 
 
COMPTROLLER GENERAL. 677 
 
 The Legislature, during the last session, remitted to several debtors to 
 the Bank, the sum of about thirteen thousand dollars ; that amount taken 
 either from the capital stock, or from the profits of the Bank, lessens its 
 ability to accomplish the important object of redeeming the public debt ; 
 and when it is recollected that the faith of the State is considered as pledg- 
 ed to reserve that fund for its especial pui*pose, the Legislature will per- 
 ceive the propriety of refusing similar releases ; or if granted, to meet the 
 case properly, by appropriations from the Treasury. By this mode the 
 capital of the Bank will remain unimpaired — the means for extinguishing 
 the public debt undisturbed — and the faith of the State will be preserved. 
 The Comptroller General is induced to believe that the Legislature will 
 admit the justness and propriety of the foregoing remarks and suggestions, 
 when they advert to the fact, that on the 1st day of January, 1840, (five 
 years hence,) the largest instalment of eight hundred thousand dollars of 
 the public debt will become due, and that no provision has been made to 
 meet the payment, other than the surplus profit of the Bank, after payment 
 of the interest for which the Sinking Fund is chargeable. — W. Laval, C. 
 G.—R. &f R. pp. 1 & 2. 
 
 (1835.) 
 The Bank of the State has transferred to the credit of the Sinking Fund, 
 the sum of one hundred and twenty thousand dollars, being the profits of 
 that institution, after extinguishing the amount of losses sustained in the 
 two preceding years. From a recent inspection of the books of the Bank, 
 it appears that the institution is in a very healthful and prosperous condi- 
 tion, and promises, under the present administration of its concerns, to be- 
 an efiicient auxiliary to the State in the redemption of its present debt, or 
 of anv additional stock it may be deemed advisafele to issue. — W. Laval, 
 C, G.—R. Sf R.'p. 2. 
 
 (1836.) 
 As the present Legisture is largely composed of new members, some of 
 whom may not have had opportunities of becoming acquainted with the 
 general condition of the fiscal concerns of the State, and as it is understood 
 that application will be made for extensive pecuniary engagements on the 
 part of the State, the Comptroller deems it his duty to submit such particulars 
 in relation to the finances as may be necessary to a correct understanding 
 and determination on the subject. 
 
 The liabilities of the State, on the 1st day of last October, amounted to 
 $1,796,571 16-100. Of this amount, $1,753,767 82-100 consists of State 
 stock, bearing an annual interest of $9 1 ,9 1 3 04, as will apper from the fol- 
 lowing specification, viz : 
 
 $193,767 82-100, old 3 per cents., redeemable at the pleasure of the 
 
 State. . 
 
 $800,000, 6 per cents., of 1820, redeemable 1st January,, 1840. 
 
 200.000, 5 " '• '- 1822, " " " 1842. 
 
 250,000, 5 « ^' " 1824, " u u 1344 
 
 300,000, 5 « « " 1826, " " " 1846. 
 
 10,000, 6 " " "'^ 1826, " " " 18^. 
 
(378 REPORTS OF THE 
 
 The remainder consists of undrawn balances, &c. ' ' 
 
 The credits of the State on the same day, were as follows : 
 
 Balance of Cash in the Treasury. .., $382,124 62 
 
 Sinking Fund, -_.-. — _. .__.-. 596,361 25 
 
 Capital of the Bank of the State,. . _.. .1,156,318 48 
 
 Bonds of South Carolina Canal and Rail Rdad Company. 100,000 00 
 
 Balance due by former and present SheriiFs, Tax- Collectors, and 
 
 borrowers of paper medium, .1 68,205 7 1 
 
 $2,303,009 06 
 ^ Balance in favor of the State, _ . . . . $506,637 90 
 
 The Bank of the State has transferred to the credit of the Sinking 
 Fund, the sum of $135,000, as the profits of that institution for the fiscal 
 year, ending 30th September last. This fund is chargeable with the pay- 
 ment of the interest on the 5 and 6 per cent, stocks ; but by a continuance 
 of successful operations, by the Bank, may become nearly adequate to meet 
 the instalment of the public debt (800,000.) which will become due in Jan- 
 uary, 1840. The withdrawal of this fund, however, at that time, will ne- 
 cessarily reduce the profits of the Bank considerably, seeing that it now 
 constitutes a very large part of the trading capital of that institution. 
 
 It has been shown already, that there was in the Treasury, on the 1st of 
 October last, $382,124 62-100; the ordinary income from taxation alone 
 may be fairly estimated at $270,000, making an aggregate of $652,123- 
 62-100. The ordinary expenditures of the State may also be fairly estima- 
 ted at about $250,000, from which, it is manifest, tliat unless the taxes be 
 reduced, there -will be a surplus in the Treasury, at the end of the n^xt 
 fiscal year, of $402,124 62-100; an amount not' only more than sufficient 
 to meet the usual exigencies of the State, for the year ensuing, but more 
 than sufficient to defray all the expenses and ordinary appropriations that 
 will be required to be paid between the end of that year, and the receipt of 
 the taxes in June, 1837. Under these circumstances, the Comptroller has 
 deemed it his duty to submit the question of reduction, it being manifest 
 that the taxes ought to be reduced, unless the Legislature shall determine 
 upon a system of larger surplus accumulations in the Treasury, with a view 
 to the prosecution of measures, of which the Comptroller has no know- 
 ledge ; and of the wisdom and propriety of execution of which the Legis- 
 lature alone is competent to form a judgment. — W. Laval, C. G.-r—R. Sf 
 R. pp. 95 Sf 96. - 
 
 (1837.) 
 
 Conformably to the Act of the Legislature, directing a subscription of 
 one million of dollars in the Louisville, Cincinnati, and Charleston Rail 
 Road Company, provided certain amendments were made to the charter 
 granted by the State of Kentucky, the Comptroller G-eneral, having been 
 furnished with an exemplification of the Act of the Legislature of that 
 State, amendatory of the charter in the particulars required, has subscribed 
 for ten thousand shares in the name of the State, and paid in to the Com- 
 pany the sum of fifty thousand dollars, (being the first instalment of five 
 dollars per share,) by drafts on the President of the Bank of the State, 
 payable out of the surplus revenue received. 
 
 The Bank of the State has passed to the credit of the Sinking Fund, the 
 
COMPTROLLER GENERAL. 679 
 
 sum of two hundred and one thousand two hundred and twenty-five dol- 
 lars and thirty-seven cents, ($201,225 37,) as the profits of that institution 
 for the fiscal year ending the 30th S,eptember, 1837. Taking into consid- 
 eration the great revulsions in trade which have occurred during the past 
 year, and which have materially afi'ected the monied interest of this, in 
 common with all other portions of the United States, the Comptroller Gen- 
 eral deems it an act of justice to remark, that commendation is due to the 
 President and Directors, who have under their charge the interest of the 
 Bank, during a season of the most marked commercial distress, and full of 
 severe trial and embarrassment ; and this remark is hazarded on two mate- 
 rial and gratifying facts ; the first, in the amount of the profits declared for 
 the year last past, and the second, in the ability of the Bank to redeem all 
 its notes in circulation, above the denomination of two dollars, in gold and 
 silver, and to redeem all below that amount in the notes of other Banks in 
 the City of Charleston, which are now held by the Bank of the State. The 
 suspension of specie payments by the Banks in this State, was generally 
 considered necessary as a ineasure of defence against the predatory practice 
 of jobbing speculators. But the adoption of that measure by the Bank of 
 the State, was more from a compliance with the wishes of a whole commu' 
 nity, expressed at a numerous public meeting, than from any apprehensioQ 
 of inability to redeem its paper. — W. Laval, C. G. — R. Sf R. pp. ^ Sf2, 
 
 (1838.) 
 In compliance with " An Act for Re-building the City of Charleston," I 
 have countersigned the bonds issued by the Governor, to the President and 
 Directors of the Bank of the State of South Carolina, amounting to two 
 millions of dollars, of which one million is payable in twenty years, and 
 the other million at the expiration of thirty years, bearing five per cent, 
 interest, payable half yearly. — W. Ed. Hayne, C. G. — R. Sf R. p 70. 
 
 (1841.) 
 
 No. 1 0,* is a Statement of the balances between the Bank of the State of 
 South Carolina, and the two Treasuries, on the last day of each month du- 
 ring the fiscal year, showing that the balance of $62,626 16-100 due to the 
 Treasuries on the 1st October, 1840, was exhausted in December; ^nd 
 from thence to April, the Bank was in continued adv^ance to the Treasuries, 
 and at one time, in the sum of $103,155 51-100.— Wm. Ed. Hayne, C, G. 
 R. Sf R. pp. 3 4' 4. 
 
 * See this table on next page. 
 
 I 
 
680 
 
 REPORTS OF THE 
 
 
 
 
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COMPTROLLER GENERAL. eSi 
 
 (1830,) • ' 
 
 The Comptroller General respectfully submits the following Report and 
 Exhibits : 
 
 There remained in the Treasury, on the first day of October, 1829, the 
 sum of $131,216 07. The receipts, between that time and the first day of 
 October, 1830, amounted to $264,432 22, and the expenditures to the sum 
 of $281,899 56. The disbursements, within the year, have consequently 
 exceeded the income, to the amount of $17,466 34, and reduced tlie bal- 
 ance remaining in the Treasury, at the end of the fiscal year, to $113, 
 753 33. 
 
 On comparing the receipts of the preceding, with those of the last year, 
 it will be seen that there is a difference in favor of the former of $63,640 
 06. A like examination of the taxes of the two years will exhibit a dimi- 
 nution in the last year, of $58,539 08. 
 
 In the death of Mr. Stephen Elliott, President of the Bank, the State 
 has lost one of its brightest ornaments, and greatest benefactors. The af- 
 fairs of this institution, nevertheless, have been conducted throughout the 
 year, with much prudence and ability The profits for the year ending on 
 the first day of October, 1830, (after deducting $19,302 18, on account of 
 losses that have been accumulating for several years,) amount to the sum of 
 $112,182 04. The Bank, always a subject of interest, has become, in the 
 present embarrassed state of our finances, an object of particular solicitude. 
 With a permanent revenue, which will do little more than cover the 
 ordinary expenditures of the State, even should the Legislature abandon 
 the public works, and a debt amounting to $1,153,770 91, bearing an an- 
 nual interest of $91,913 12, every one must look to the operations of this 
 institution with deep concern. It is quite apparent from the monthly re- 
 ports to this department, that its present condition is altogether sound, 
 and very prosperous. The doubts entertained by many of its success, ex- , 
 periencc has probably, in a great measure, removed. These, however, 
 should not give way to a blind confidence. Too much vigilance, short of a 
 developement of the private transactions of the Bank, could not be exer- 
 cised. The present location of the parent Bank is considered not only ju- 
 dicious but indispensable. An opinion seems to be held by some persons, 
 that the principal Bank should he established at Columbia, and that the 
 Bank at Charleston should be closed, or at farthest, converted into a 
 Branch. The leading reasons assigned are: 1st, That the bills would be 
 circulated in the niidale and upper country, and comparatively out of the 
 reach of the United States Bank. 2d. That the competition would be less, 
 and the profits greater. Without pretending to enter fully into the sub- 
 ject, it may be objected : first, that no bank in the interior could maintain 
 the credit of its paper without providing, in some way, for its redemption 
 in Charleston. That city is the great emporium of the State, and money, 
 in whatever form it may exist, and in whatever part of the State it may be 
 put in circulation, will ultimately find its way there, as certainly as the 
 waters flow to the ocean. Bills, payable in Columbia, would not be receiv- 
 ed at par by the Banks there, more especially by the Branch Bank of the 
 United States, and however solvent tlie Bank might be from which they 
 emanated, would be placed on the footing of paper redeemable in Augusta, 
 and would necessarily pass through the hands of brokers. If it be con- 
 ceded that the bills should be payable in Charleston, it follows that the 
 principal bank should be there. The office that redeems must control. — 
 
 86 
 
682 REPORTS OF THE 
 
 Besides, that city affords facilities for the purchase of specie, and for pro- 
 curing assistance from banks and other sources at moments of unusual 
 pressure, that would be lost to an insulated situation in the interior. Se- 
 cond : As to a diminution of competition, and increase of profits by a re- 
 moval of the parent Bank, a satisfactory answer is afforded by the simple 
 fact, that the whole capital of the Bank is now actually employed, and it is 
 confidently believed that it might operate most successfully on a much 
 larger fund than that now at its disposal. There is one other considera- 
 tion connected with this branch of the subject, of great weight. An ex- 
 tension of discounts to a great amount among the agricultural class of the 
 community, (a result to be apprehended from the measure under discus- 
 sion,) however convenient it might prove to the borrower, would inevitably 
 jeopardize the Bank. The profits of capital invested in agriculture, are 
 slow — they return but once a year. Experience has proven that loans to 
 planters must generally be considered as permanent. It is obvious that the 
 safety of a Bank depends much on its ability to convert its credit into 
 cash, at a short notice. As punctuality is the life of trade, so it is the soul 
 of Banks. These are the handmaids of commerce, and have never been 
 known to prosper in districts essentially agricultural. This may account 
 for the general failure throughout the Western States. Apart from delay 
 of payment, the Bank would sustain more actual losses from planters than 
 merchants. However paradoxical this may appear at first sight, it is nev- 
 ertheless so. The fact alone, that banks have flourished more in countries 
 eminently commercial, if not decisive of the question, goes a great way to 
 explode the popular notion, that the profits of commerce are less certain 
 than those of agriculture. The reverse of the proposition is believed to be 
 true. But merchants are congregated in town — in the vicinity of the 
 Bank, and in constant view of its Directors. Their notes are due at short 
 intervals, and renewals may be refused when the slightest suspicion at- 
 taches to their credit. On the other hand, planters are out of their" circle 
 of vision. The directors, in making their first advances to them, must 
 often rely on the information of otkers, which may deceive, and afterwards 
 have not the power of observing the progress of their affairs. There seems 
 to be but one danger from which the Bank might not be secured by proper 
 management, and this is the all-pervading, all absorbing influence of the 
 United States Bank. The supposition that this institution is useful, be- 
 cause it keeps all other Banks in check by controlling their issues, and 
 thereby preserving a sound currency, concedes at once its absolute power. 
 Independent of its immense capital, which might be brought to bear at any 
 point, it may be seriously questioned whether any bank in the United States 
 could sustain its credit, against a settled determination on the part of this 
 Bank to refuse its bills. To the question propounded by the Committee 
 on Finance of the Senate of the United States, at the last session of Con- 
 gress : " Has the Bank at any time oppressed any of the State Banks ?" — 
 The President answers, " Never. There are very few Banks which might 
 not have been injured. Many have been saved ; and more have been, and 
 are constantly relieved, when it is found they are solvent, but are suffering 
 under temporary difiiculties." "VVe have then the explicit declaration of 
 the President of that institution, who must be intimately acquainted with 
 the extent of its resources, that it possesses the power of destroying the 
 State Banks, without regard to their solvency. The pretended spirit of 
 moderation, and even charity above disclosed, detracts nothing from the 
 precarious and degraded condition to which the State Banks are reduced. 
 
 i 
 
COMPTROLLER GENERAL. 
 
 683 
 
 He is not the less a slave, whose master is indulgent. Every friend to the 
 rights of the States, who considers well the influence of money over the 
 affairs of mankind, in the present state of civil society, cannot fail to watch 
 the progress of this institution with fear and trembling. 
 
 The Public Dd>t consists of tJie following items : 
 
 $193,770 91 
 
 Outstanding 3 per cent, stock 
 
 Interest for one year — 
 
 6 per cents, of 1820, redeemable in 1840 — 
 Interest for one year 
 
 5 per cents, of 1 822, redeemable in 1 842 
 
 Interest for one year 
 
 5 per cents, of 1824, redeemable in 1845 
 
 Interest for one year 
 
 5 per cents, of 1829, redeemable in 1846 
 
 Interest for one year 
 
 6 per cents, of 1826, redeemable in 1850 
 
 Interest for one year 
 
 800,000 00 
 200,000 00 
 250,000 00 
 300,000 00 
 10,000 00 
 
 $5,813 12 
 48,000 GO 
 10,000 00 
 12,500 00 
 15,000 00 
 600 00 
 
 It appears from the above table, that this debt amounts to $1,753,770 
 9 1 , bearing interest of $9 1 ,9 1 3 1 2. The ways and -means of extinguishing 
 it, and providing in the mean time, for the ordinary exigencies of the State, 
 are well worthy the serious consideration of your honorable body. 
 
 The Sinking Fund amounted, on the 1st day of October, 1830, to $277,- 
 419 70. Shortly afterwards, the profits of the Bank, for the last fiscal 
 year, amounting to $112,182 04, were carried to its credit, making $389, 
 601 74. This fund is charged with the payment of interest on the 5-and 
 6 per cent, stock, which will be drawn during the present year. 
 
 Believing that the means to which the Legislature, at the last session, 
 looked for the payment of the public debt, will prove delusive, the Comp- 
 troller Greneral begs leave to examine, somewhat in detail, the report of the 
 Committee of Ways and Means of the honorable House of Representa- 
 tives, upon the authority of which, he presumes, the taxes were reduced. 
 In doing this, he professes and feels the utmost respect for that Committee, 
 and for the gentlemen, severally, who compose it, and hopes the importance 
 of the subject will be considered a sufficient apology. The Committee 
 says, " they rely with confidence upon the ability of the Bank of the State, 
 to meet the payments of the public debt as they respectively become due, 
 and of course to obviate the necessity of any demands upon the Treasury 
 for that purpose." They estimate the profits of the Bank, beyond the pay- 
 ment of interest on the five and six per cent, stock, at $25,000 per annum. 
 The first great instalment of the debt, amounting to $800,000, falls due on 
 the first day of January, 1840, allowing only nine years to provide for its 
 redemption. The Sinking Fund is $389,601 74 — add to this the surplus 
 profits of the Bank for nine years, and you have only $614,601 74, a sum 
 short of the first payment, by $185,398 26. There will be due on the 
 first day of January, 1842, $200,000 of the 5 per cents. This sum, to- 
 gether with the above balance of 6 per cents, with interest on the last, will 
 amount to $407,646 05. The Sinking Fund will have been sunk in the 
 first payment, and to discharge this increasing demand, you can only look 
 to the surplus profits of the Bank, after paying interest, diminished too, by 
 the loss of that fund, which is now actively employed. These balances will 
 
e84 REPORTS OF THE 
 
 accumulate every year, till on the 1st day of January, 1846, when the last 
 great payment becomes due, the balance of the whole outstanding debt 
 will amount to ^724,366 35. It is proper to remark, that the old 3 per 
 cents, might be purchased at about 65 per cent ; and that the Bank owns, 
 of this stock, $18,354 15. • These circumstances, however, could not influ- 
 ence the general result. For the more perfect elucidation of the subject, 
 an account current, predicated on this view of the Committee, is herewith 
 submitted. 
 
 The Committee say, further, '•' estimating the future by the past, your 
 Committee entertain no doubt that the profits of the Bank will not only 
 regularly extinguish the interest of the public debt, but enable it also to 
 carry annually, at least $25,000, to the credit of that fund. It is confi- 
 dently anticipated, too, that even at the reduced rate of taxes which is 
 herewith submitted, there will be an annual surplus of at least $30,000 in 
 the Treasury, which can also be carried to the Sinking Fund. From these 
 two sources then, it is evident that there will be upwards of $50,000 annu- 
 ally, applicable to the linking Fund, and consequently, that that fund will 
 amount, in the year 1840, to $913,000, being considerably more than will 
 be required for the first great payment of the public debt." In relation 
 to the surplus in the Treasury, so " confidently anticipated," our experi- 
 ence, so far as it goes, does not accord with the estimate of the Committee ; 
 for, instead of having a " surplus of at least $30,000" at the end of the fis- 
 cal year, which has just closed, there is an actual deficit of $17,466 34, al- 
 though the taxes were not reduced so low as the Committee recommended. 
 It is true, the payments embrace some items that cannot be considered as 
 ordinary demands against the Treasury, but not to such an amount as ma- 
 terially to affect the result. . Estimates of this kind, in which a liberal al- 
 lowance is not made for contingent appropriations, will, in all likelihood, 
 prove deceptive. The Comptroller General regrets that circumstances 
 should have required him to comment on this document. Under a tho- 
 yough conviction of the absolute necessity of setting apart some certain 
 and adequate fund for the payment of the public debt, and finding it broad- 
 ly asserted here, that the profits of the Bank, alone, would be sufiicient for 
 that purpose, (although additional means were recommended.) he felt him- 
 self called on to comb'at so dangerous an error, more especially, as it was 
 almost sanctified by the high authority from which it emanated. 
 
 The Comptroller General, as required by law, submits to your honorable 
 body, an estimate of revenue and expenditure, embracing the payment ©f 
 the public debt. 
 
 The department is in possession of no official information in relation to 
 the claims' of the State against the United States. A special agent was 
 appointed at the last Session erf the Legislature, to prosecute them before 
 Congress. He has not reported to this office, but will, no doubt, communi- 
 cate directly to the Legislature. 
 
 In obedience to the Resolution of the last Session of the Legislature, the 
 Solicitor of the AVestern Circuit proceeded to foreclose the mortgage 
 against Hamburg ; and has purchased, on terms which are considered very 
 advantageous to the State, a perfect title, as he believes, to that part of the 
 town designated and known by the name of Lower Hamburg. As it is 
 the intention of the Commissioners charged with the general management 
 of this affair, to report fully in relation to their trust, your honorable body 
 is respectfully referred to their expose, for such information as may be de- 
 sired. 
 
COMPTROLLER GENERAL. 
 
 685 
 
 The Comptroller General will have the honor to submit, at an early day 
 several other matters of minor importance embraced within the sphere o f 
 his duties. THO. HARRISON. 
 
 R. i^ R, p. \. Comptrol/ei- General 
 
 Dr. 
 
 THE STATE IN ACCOUNT FOR STOCK. 
 
 1840 For this am't of six per cents, due 1st January, 1840 $800,000 00 
 
 1842 
 
 1845 
 
 1846 
 
 For balance 6 per cents, in arrear, 1st January, 1840 
 Interest on the above for two years 
 
 This am't of 5 per cents, due 1st January, 1342. _ 
 
 For balance 6 per cents, in arrear, 1st January, 1842 
 
 Interest on the above for three 3^ears. _ 
 
 Balance 5 per cents, unpaid, and due 1st Jan. 1842 
 This amount of 5 per cents, due in 1845 
 
 For balance of 5 per cents, in arrear, in 1845 _. 
 
 '• This amount of 5 per cents due 1st Jan. 1846. 
 Old 3 per cents. 
 
 $185,398 26 
 
 22.247 79 
 
 200,000 00 
 
 $407,646 05 
 
 $60,646 05 
 
 10,916 28 
 
 200.000 00 
 
 250^000 00 
 
 $521,562 33 
 
 $301,062 33 
 300,000 00 
 193,770 61 
 10,000 00 
 
 •.Cr. 
 
 CONTRA. 
 
 1840 
 
 1842 
 
 1845 
 
 1846 
 
 By am't of Sinking Fund on 26th October, 1830 
 
 " Surplus profit of Bk. for 9 years at $25,000 per an. 
 " Bal. 6 per cents, remaining due 1st January, 1840 
 
 By profits of B'k for 2 years, after deducting $37,000 
 
 per annum for payment of int. on the 5 per cts. - 
 
 " Bal. of 6 per cents, remaining due 1st Jan. 1842. 
 
 " Bal. of 5 per cents, remaining due 1st Jan. 1842- 
 
 By profits of B'k for 3 years, after deducting $37,000 
 
 per annum for payment of int. on the 5 per cents. 
 
 " Balance of 5 per cents, remaining due in 1845 — 
 
 By profits of the Bank one year, after paying interest 
 
 on the 5 and 6 per cents 
 
 " Balance of Public Debt outstanding in 1846 
 
 $389,601 74 
 225,000 00 
 185,398 26 
 
 $800,000 op 
 
 $147,000 00 
 
 60,646 05 
 
 200,000 00 
 
 $407,646 05 
 
 $320,500 00 
 301,063 33 
 
 $521,562 33 
 
 $80,466 89 
 724,366 35 
 
 $804,833 24 
 
686 REPORTS OF THE 
 
 The Committee estimate the surplus profits of the Bank, after payicg 
 $85,500 by way of interest, at $25,000 per anniinr; consequently they 
 must be supposed to fix the average annual profits at $110,500. Upon 
 these data the above calculation is founded. It is sufiiciently accurate for 
 the present purpose, the object being merely to show that the Bank, unas- 
 sisted by the Treasury, wi.l be unable to pay the public debt. If experi- 
 ence is to guide ^us, the estimate is high enough ; for the average profits, 
 for the last ten^^years have amounted to only $103,468 37 cents per an- 
 num ; and the capital is less now than it has been at any time within the 
 above period, except last year. THOS. HARRISON, 
 
 Comptroller General. 
 
 Office of the Comptroller General, 19th November, 1830. 
 
 (1831.) 
 
 The Comptroller General respectfully submits the following Report and 
 exhibits : 
 
 The balance in the Treasury, on the 1st day of October, 1830, was 
 $113,753 33. From 30th September, 1830, to 1st October, 1831, the re- 
 ceipts, from all sources of Revenue, have amounted to $276,837 30 ; and 
 the payments to $235,302 69: leaving a balance in the Treasury, at the end of 
 the year, of $155,286 94. It should be known, however that the Treasury 
 stands charged with the sum of $46,800, for specific appropriations, made 
 at the last Session of the Legislature, and not yet drawn, from various 
 causes, which, had they been paid within the year, would have reduced the 
 balance to $i 08,486 94. 
 
 Finding that the Committee of Ways and Means of the Honorable House 
 of Representatives, did not concur in the views of the finances of the State, 
 as presented in the last Annual Report from this Ofiice, the subject has 
 been re-considered with all the attention which its importance, and the 
 high respect entertained for the opinion of the Committee require. But 
 the most mature consideration, with the light of another year's experience, 
 has furnished nothing to change, but much to confirm impressions which, 
 however reluctantly received, could not have been withheld without a sac- 
 rifice of duty. A previous Committee, in a Report made in December, 
 1829, had asserted that the Bank of the State of South Carolina, unassisted 
 by the Treasury, would be able to meet the payments of the public debt as 
 they respectively became due. The Comptroller General controverted this 
 assertion, and exhibited a calculation predited on the estimate of that Com- 
 mittee, the object of which was to carry out their estimate on their own 
 principles, and show that the data furnished, defeated the proposition laid 
 down. The Committee of the last Session assented to his conclusions as 
 deduced, but re-asserted, in efi"ect, the original proposition, founding it on a 
 different estimate. 
 
 Whether the Bank can be safely depended on for the redemption of the 
 Public Debt as it falls due, is the most important question connected with 
 the Finances of the State. It is a question, too, that must be settled be- 
 fore it can be known whether any other, and what additional means should 
 be provided. If the estimate accompanying the Report of the Committee 
 can be sustained, the ability of the Bank may be readily conceded j and re- 
 
COMPTllOLLER GENERAL. 687 
 
 garded merely as containing the opinion of so intelligent a body in its most 
 tangible form, the calculation is certainly entitled to great consideration. 
 Nevertheless, it is the more dangerous, if it be erroneous, and it is believed 
 to be eminently so in all its material results. The means to which the 
 Committee S3em to look forward for an increase of the profits of the Bank, 
 are: 1st. An additional circulation of $300,000. 2nd. A more vigorous 
 system of Discounts. 3rd. A more active employment of the Sinking Fund. 
 These propositions will be considered in their order. 
 
 In the first place, it may be remarked, that the Legislature, however wise 
 it might be for general purposes, would labor under great disadvantages 
 in directing a Bank ; for of all institutions, Banks are most under the in- 
 fluence of times and circumstances, and these are continually changing. 
 A measure that might be proper, and even highly expedient at the begin- 
 ning of a year, might prove ruinous at the end. There is no question con- 
 nected with the subject so delicate as the proper amount of circulation. — 
 Nor, can a Bank always sustain the same quantity of its paper in circula- 
 tion. It must frequently limit its issues, and occasionally call in a por- 
 tion of its notes. It wouJd seem that the President and Directors are 
 the mostcompetent to determine what quantity of paper can be safely 
 sustained in circulation, and to their sound discretion the matter should be 
 left. 
 
 Suggestions, such as those thrown Out by the Committee, though not im- 
 perative, will, nevertheless, have their influeiice ; and their inevitable ten- 
 dency is, to remove from the proper managers of the institution, that re- 
 sponsibility which constitutes its only safe-guard. Besides, to overtrade is 
 the natural tendency of a Bank constituted like that of the State of South- 
 Carolina. The President and Directors have no pecuniary interest at stake, 
 and how natural it is they should desire to make handsome returns of an- 
 nual profits? The approbation of the Legislature, and, perhaps, the re elec- 
 tion of the President and most of the Directors, might depend on flattering 
 representations of the situation and prospects of the Bank ; and of these, 
 their returns of profts, though sometimes delusive, are the most certain cri- 
 terion. To realize those profits, the Bank must discount largely. Funds 
 for that purpose can be procured more promptly, and with less trouble, by 
 issuing notes, than calling in debts. By adding, too. to the aggregate 
 amount of discounts, the profits must be increased. Under this state of 
 things the danger is. not that the Bank will issue too little paper, but too 
 much ; and the difficulty is to restrain the quantity within proper bounds 
 — a diSiculty rendered almost insuperable by the considerations, that there 
 can be no fixed proportion between the capital and circulation, and that a 
 frequent and direct interference in the direction of the Bank, would be at- 
 tended with incalculable evils. The permanent interest of the State is, 
 that the circulation should be rather below what might be considered the 
 safety point, and the natural tendency of the institution is to carry it above 
 that point. The goad, then, is applied^ when the curb would seem to be 
 more proper. 
 
 As the Committee have recommended an additional issue of $300,000, 
 not as a temporary expedient, but a permanent fund for discounts for a long 
 series of years to come : as the profits anticipated from this source consti- 
 tute a prominent item in the estimate for the payment of the public debt ; 
 but above all other considerations, as the safety of the Bank, and the pre- 
 servation of a sound currency are involved, it becomes important to enquire 
 
688 REPORTS OF THE 
 
 whether the Bank could possibly maintain such a circulation. All practi- 
 cal men agree in this, that there can be no settled proportion between the 
 capital and circulation, the amount of paper that a Bank can sustain in 
 circulation depending on many circumstances independent of its capital. 
 In times of peace, general prosperity, and confidence, with little or no com- 
 petition, the issues of a Bank may greatly exceed its capital. Under a dif- 
 ferent set of circumstances, it might not find it convenient to support a cir- 
 culation of more than one-fourth part of its capital. How much paper, there- 
 fore, a Bank of a given capital could sustain at any distant future time, is a 
 question that would require the gift af prophecy to answer. It is a mat- 
 ter in which daily experience must be the guide. The fact is, a Bank must 
 fed its way. Although it is admitted that the circulation must fluctuate, 
 and that the President and Directors are, at all times, the best judges of 
 the proper amount, yet there are sufficient lights to enable us to say with 
 confidence, -ihat the Bank could not safely advance its circulation so far as 
 the Committee advise. Small inequalities are not easily perceptible, espe- 
 cially to the unpracticed eye, but great ones are obvious enough. 
 
 The circulation of our Bank is influenced at present, principally, by the 
 operations of the United States Branch Bank at Charleston, and the low 
 price of our staple commodities, with the consequent general stagnation of 
 trade. The competition of the other State Banks, is not worth taking into 
 the acco'int. In truth, it is believed that their influence is beneficial. 
 
 The United States Branch Bank, through the Custom House, and for 
 debts, of whatever kind, due to the United States — by the sale of bills of 
 exchange ; by means of exchanges with dealers in live stock from the 
 Western States ; by exchanges with negro-traders, who make their purcha- 
 ses in Virginia and Maryland, and with persons emigrating from the State; 
 and by payments made on its ordinary discounts, is enabled to collect large 
 quantities of notes of the Bank of the State, which are regularly presented 
 for payment once a week. The Bank must provide means to meet these 
 drafts, and not knowing what amount will be presented, the provision must, 
 of course, be liberal. Connected with this branch of the subject, there is 
 another cause not heretofore alluded to, the operation of which will, it is 
 believed, be soon severely felt. The end of currency being merely to effect 
 exchanges, it follows, that any quantity beyond that necessary for this pur- 
 pose, must produce depreciation, in a ratio equal to the excess. It is equal- 
 ly clear, that the low price of our staple articles, and the general stagna- 
 tion of trade, must diminish the demand ; for where there are no exchanges, 
 there can be no use for money, and where the subjects of exchange are of 
 little value, not much will be required. Now, the circulation of the United 
 States Bank has been, of late years, greatly extended. From 1st Novem- 
 ber, 1830, to 1st August, 1831, only nine months, its actual circulation in- 
 creased $7,2 1 7,902 ! As its notes gradually fill up the circulation, ours 
 must be withdrawn ; for, independent of the consideration that in all jost- 
 ling between the strong and the weak, the latter must give way, the United 
 States Bank possesses an advantage, which, in a warfare of this kind, must 
 be decisive. A great portion of its notes are payable elsewhere, and although 
 our Bank may, from time to time, pick up a good many of these, yet, when 
 they are presented to the Branch Bank, the answer will be as it has been, 
 "we are disposed to accommodate, but cannot be prepared with funds at 
 every office to meet the whole issues of the Bank ; send them to Philadel- 
 phia." It is evident then, that whik our Bank is compelled to redeem with 
 
COMPTROLLER GENERAL. 689 
 
 • 
 
 specie, tliese notes for all banking purposes, here, are not redeemable at all, 
 and the whole circulation may be filled up with them. The liability of the 
 U. S. Bank to redeem with specie, is merely nominal. By transposing the 
 circulation of its notes, they never can return in any considerable quantity. 
 The issues of such a contest cannot be made a subject of discussion. It is 
 not denied that the U. S. Bank has exercised a wholesome influence over 
 the currency,* but the objection is, that with the power to correct, it has 
 also receceived a power coupled with an interest^ to destroy — its power over 
 the State Banks is absolute, and it is greatly interested in abusing that pow- 
 er. We may enjoy the rights of personal liberty, personal security, and 
 private property, under an absolute Prince. He would have no interest in 
 abusing his power, but there could be no security that he would not do so. 
 What free-born man would submit to such a government? 
 
 The Charter of the Bank of the State of South Carolina was granted by 
 the State for the benefit of the State, but the Bank is a tenant at will of a 
 hostile incorportation. But leaving a course of reasoning which might be 
 thought speculative, let us state some facts, the inference from which, it 
 would be more difficult to mistake. 
 
 But before we do that, it will be proper to present the estimate of the 
 Committee of the capacity of the Bank to sustain an additional issue of 
 $300,000. They say "in order that the views of your Committee may be 
 more clearly seen, they will take the situation of the Bank, a^ it exists at 
 present, by which to test their observations. 
 
 The Bank Capital consists of _ $1,156,318 
 
 The Sinking Fund " of. 389,667 
 
 The average amount of'Deposits which is usually banked ^ 
 
 upon, or is equivalent at least to so much of the Bank's > 365,000 
 paper in possession, is ) 
 
 Making in Bank, $1,910,985 
 
 The amount of Bank Notes issued of and over one dollar is $1,600,000, 
 of which $500,000 are usually in Bank, leaving in circulation $1,100,000; 
 and if from this balance be taken $345,000, of one and two dollar bills, 
 rarely the subjects of exchanges with other Banks, tlie whole amount in 
 circulation, for which means of exchange must be provided, will be only 
 $755,000. 
 
 To arrive at the circulation they deduct from the amount of issues $500,- 
 000, which they say, is "usually in Bank." The true enquiry would ap- 
 pear to have been, what was in Bank at that time? An answer is now of- 
 fered. 
 
 On the 30th November, 1830. the whole amount of cash on hand includ- 
 ing Notes on other Banks, and Specie, (except the Specie in Charleston) 
 was $246,874 25 : and to be entirely fair, we will deduct this sum from the 
 issues, which were greater by $107,445 than the sum stated by the Com- 
 mittee, for they include change Notes. The Committee also deducted from 
 the amount of actual circulation, the one and two dollar notes, amoiinting 
 
 *In the last number of the Southern Review, is a most able and convincing article on 
 the United States Bank, highly worthy the perusal of all who seek truth on this interest- 
 ing topic. The writer contends, that the Bank is unconstitutional, and that the currency 
 might, and would have been restored to a sound state without it. 
 
 87 
 
590 .REPOllTS OF THE 
 
 as they state, to $345,000, under the allegation that they are rarely subjects 
 of exchanges with other Banks, and therefore it is unnecessary to provide 
 means to meet them. There is much reason to fear that the idea is falla- 
 cious. These notes are a ^component part of the general circulatien of the 
 Bank, the aggregate of which is subject to drafts of $40 or $50,000, per 
 week. Although the one and two dollar notes do not enter the vortex, yet, 
 by their pressure, many notes of a different denomination are forced into 
 it. A gentleman in the country desires to send $100 to the Branch Bank 
 U. S. He has $90 in $10's., and $10 in $2's and exchanges the $2's., for 
 a $10. This last $10 is the representative of the $2's., and they supply 
 its place in the circulation. One and two dollar notes are not convenient 
 to be sent abroad, or for large payments, but when a contribution is levied 
 on the general circuU^tion, they must pay their part. They are forced into 
 the country, it is true, but the country merchants levy their contributions 
 on their respective neighborhoods. As these notes accumulate in their 
 hands, they convert them into notes of a higher denomination. Thus in a 
 sale of goods to the value of one dollar, the Merchant receives a $5 note 
 and gives $2's., and on receiving a small debt, he gives four $l's. and re- 
 ceives a $5. These proxies of the small notes find their way to Charles- 
 ton, and are there given for goods ; they -go next to the Custom-House, for 
 duties, and it is unnecessary to trace them further. That such a mass of 
 paper could be suspended in circulation, without expanding it: or. that a 
 Bank having a permanent capital of little more than a million, could issue 
 near half a million ($412,000) in small notes with perfect impunity, is a 
 proposition that should be assented to with much caution. But it is known 
 that these notes do, at certain seasons of the year, return directly on the 
 Bank, in considerable quantities. 
 
 We may in some measure test the due proportion between the Capital 
 and circulation of the Bank of the State of 8outh Carolina, by a compari- 
 son of its situation, in these respects, with that of its sister institutions, 
 located in the same City, and operating under the same general circum- 
 stances. For that purpose we will take the effective capital as furnished 
 above. 
 
 Bank of the State of South Carolina ; 
 
 Notes issued to the 30th November, 1830,. .. .'$1,707,445 
 
 Deduct cash on hand, 30th Nov. 1830. (except specie in ) -^AaGTA 
 
 Charleston,)..- ..'._... \ ^4b,874 
 
 Amount in circulation 30th November, 1830, .$1,460,571 
 
 Add the sum proposed by Committee, .._ 300,000 
 
 $1,760,571 
 
 Two banks in the City of Charleston, Capital, $2,000,000 
 
 Average amount of Deposits. > 400.000 
 
 $2,400,000 
 Circulation, -- - --- $660,815 
 
 At the time the Committee recommended the above additional issue, the 
 Bank had in circulation, beyond question, an amount of notes considerably 
 greater than the other four Banks incorporated by this State, together. 
 

 » 
 
 COMPTROLLER GENERAL. 691 
 
 having a combined Capital of $3,475,000. These institutions are stimula- 
 ted by private interest, that never sleeps ; and we can hardly suppose that 
 their operations have hitherto been too sluggish, and their issues to© small ; 
 charges which the Committee prefer against the Bank of the State of South 
 Carolina. But lest a suspicion of sluggishness and inadequate issues 
 should attach to the other Banks also, let us pursue the subject. Mr. Gal- 
 latiuj in his elaborate essay on Banks and Currency, in the 16th number of 
 the American Quarterly Review, has given a synopsis of the capital, notes, 
 deposits, and specie of the diiferent Banks in the United States, founded 
 in some instances on estimates, but principally on actual returns. In order 
 that we may arrive at the greatest certainty, let us confine ourselves to those 
 Banks from which returns were received. 
 
 Situation of 31 Chartered Banks of Pennsylvania in November, 1829 : 
 
 Capital, . _ _ _$12,032,000 
 
 Deposits, 8,758,000 
 
 Effective Capital, $20,750,000 
 
 Notes in circulation, 7,270,000 
 
 28 1 Banks ascertained, capital, $94,245,650 
 
 Deposits, _ _ 32,139,671 
 
 Effective Capital, $126,385,321 
 
 Circulation, .' 39.135,833 
 
 Sluggish operations and small issues, are not among the objections that 
 have been heretofore urged against the State institutions. On the other 
 hand, they have been branded with a disposition to flood the country with 
 a depreciated currency — intent only on gain, and reckless of all consequen- 
 ces to the community. Was it not to check this evil propensity that a 
 great pecuniary Autocrat has been called into existence, who has placed 
 one foot in Maine and the other in Louisiana ; holding in one hand, a rod 
 of gold and in the other, a rod of ironl These Banks have, no doubt, felt 
 the iron rod, and tremble. Notwithstanding the contracted circulation of 
 the private State Banks, it is diminishing every day, from dire necessity, 
 and that of the United States Bank is marching onward (uncontrolled and 
 uncontrollable) at the rate of seven millions iii nine months!* 
 
 There can be no doubt that the Bank of the State of South Carolina, in 
 regard to circulation, possesses man}^ and great advantages over the other 
 local Banks, but it must feel, in common with them, the pressure of the 
 times, and the operation of the great controlling power ; therefore, the dis- 
 proportion exhibited above, seems to be too great, and, perhaps, can be ac- 
 counted for satisfrctorily, only by the fact, that the former is directed by 
 public interest, and the latter by private interest. 
 
 *This statement is i-nade on the authority of Mr. Gallatin and Mr. Biddle. 
 
 Mr. Gallatin : United States Bank Notes issued to 1st Nov., 1830, . . .. $18,004,680 
 
 Deduct in transitu, 2,823,135 
 
 In actual circulation, $15,181,546 
 
 Mr. Biddle . Notes issued, 1st August, ]S3l S35,8ll,623 
 
 "The Circulation," S22,399,447 
 
592 REPORTS OF THE 
 
 The second proposition of the Committee Involvs a single question : — 
 Will the Bank be better conducted for the ndxt fourteen years, than it has 
 been heretofore? They say, that a more "vigorous system of discounts" 
 is necessary, and thereupon found their calculation. If, then, they have 
 not shown that a more vigorous system will be pursued, the case has not been 
 made out. What evidence have they offered ? They assert that the ener- 
 gies of the Bank have been cramped, but admit that it has, on the whole, 
 been " safely and prudently conducted." Can we expect more? The di- 
 rectors are without interest and unpaid. The President is paid ; his 
 character too, is at stake ; and all that his well known talents, great indus- 
 try, and uncompromising integrity can effect, will be done ; but he is sub- 
 ject to the control of the directors, who are continually changing. The 
 onus probandi, however, lies on the committee. Let us advert, for a mo- 
 ment, io the Report : — " It would appear to be obvious, that if a Bank 
 throws its paper into circulation, and does not, by a vigorous system of dis- 
 counts, call a sufficient portion of it in, at short and stated periods, to 
 meet the drafts of other Banks, and the demands of individuals, its issues 
 must either be exceedingly limited, or it must exhaust its capital in re- 
 deeming its paper." These remarks of the committee are unquestionably 
 true, and furnish, surely, a strong objection to an increase of the circula- 
 tion. To accomplish the reformation is a work of difficulty, and of time. 
 The longer a man has the use of money, the less likely, generally, is he to 
 pay it when demanded. The Bank calls, but the debtor answers not ; or^ 
 the answer is, "You must wait for another crop." Perhaps the additional 
 issue ought not to have been recommended; at least, until the "vigorous 
 system of discounts" should have been in successful operation. Yet we 
 find it the first item in their account of profits for the then current year. 
 
 The third gainful item of the committee is the Sinking Fund. -By an 
 Act passed December, 1821, the profits of the Bank thereafter to accumu- 
 late, were set apart for the payment of interest on the public debt, and the 
 final redemption thereof This is called the Sinking Fund. It has never 
 been in Bank, but consists of a portion of its discounts. Since the year 
 1822, the Bank has been operating on this fund, and, therefore, the profits 
 of that fund enter into the general profits heretofore returned. We are, 
 then, to take into the calculation that portion of the fund only, which may 
 hereafter accumulate. It is admitted that this may increase the profits up 
 to the first great payment ; but they must diminish afterwards by the en- 
 tire loss of the fund, which will then be extinguished. To this fund, it is 
 believed, the committee attach unmerited importance ; for on looking 
 backward on the progress of the Bank, which, after all, is, perhaps, the 
 safest course, we are unable to detect its influence. The aggregate profits, 
 for the years 1817, 1818, 1819, 1820, 1821, were greater than those of 
 1822, 1823, 1824, 1825, 1826. If we take the last fourteen years, we shall 
 find that the Bank realized more in the first seven, than in the seven last 
 years. In the year, 1821, the return was greater than it has ever been 
 since. Twies are important as well as funds — sinking times may coun- 
 tervail sinking funds ; and our prospects herein, what are they ? Esti- 
 mates of profits, whether of Banks, Mercantile-Houses, or any other pecu- 
 niary concern whatever, embracing a long series of years, and founded, as 
 that of the committee is, on regular arithmetical progression, will com- 
 monly, if not invariably, prove deceptive. But this is not the only objec- 
 tion to their estimate. They have constructed their column of figures on 
 
COxMPTROLLER GENERAL. 693 
 
 a sum that the Bank has never realized. They seem to have done so on 
 the hypothesis, that the Bank would have returned that sum the preceding 
 year, but for the losses of other years, which were deducted. But the 
 losses for the year which had just tlien closed, had not been ascertained. 
 Subsequent years might feel in their turn, losses accruing from the trans- 
 actions of that year. To select the most favorable year out of a series of 
 seventeen, one would think would be going a good way, but the Committee 
 have advanced much further. In the year 1826, the profits of the Bank 
 were $75,000. Why not take that year for an estimate ? We shall be an- 
 swered, probably, "great losses were sustained that year." Granted. But 
 in the preceding year the profits were only $75,500. W^hat objection is 
 there to this year i " That year was unfavorable." Be it so. But are we 
 to sustain no more losses ? Are there to be no more unfavorable years ? 
 
 A remarkable evidence of the sanguine temper of the Committee is found 
 in the fact that the year after the Bank shall have been exhausted by the 
 payment of the first great instalment of the debt, amounting to $800,000, 
 they estimate the profits, independent of the sinking fund, at $121,500 — a 
 sum that the Bank has never been able to return, even with the aid of that 
 fund. 
 
 The profits of the Bank for the year ending 30th Sept , 1831, amount to 
 $120,000. The estimate of the Committee has fallen short, the first year, 
 $18,500 — and the rule by which they worked, must be applied to the defi- 
 ciencies ; as an edifice is constructed, so must it be taken down. 
 
 It is understood that a Branch Bank of the U. S. is shortly to be estab- 
 lished in the town of Columbia. Should this take place, the annual profits 
 of the Bank of the State of S. Carolina will probably f^oon fall to $100,000. 
 
 The Comptroller-General respectfully recommends the expediency of 
 gradually calling in and suppressing all notes under the denomination of 
 $5. Their baneful influence on the currency, in driving coin not only out 
 of circulation, but out of the country, is too well known to require elucida- 
 tion. Of all those causes which affect the prosperity of a country, few are 
 more operative than the currency ; and of this, the State is the legitimate 
 guardian. It has inhibited the circulation of small notes by the other 
 Banks, and, independent of the odium of monopoly, it is infusing poison 
 into that which it is under the highest obligation to preserve in a pure 
 state. The benefit of these notes to the Bank has doubtless been over- 
 rated. Their principal profit, over others, results from wear and tear, 
 which is a dead loss to the citizen. But surely, the public good is above 
 all small matters of pecuniary gain. The inconvenience, if felt at all, will 
 be slight and temporary. There is plenty of specie at this time in the 
 Banks. The Bank of the State is prepared to circulate, if necessary, a 
 very large sum in silver change. 
 
 Something might be saved by reorganizing the offices in Bank. There 
 seems to be no necessity for so great a number of officers as are employed 
 by the Bank in Charleston. While too much labor ought not to be im- 
 posed, sinecures should be guarded against. 
 
 After what has been stated, it may be proper to remark, before the sub- 
 ject is dismissed, that the Bank must sustain some considerable losses, but 
 its actual solvency is believed to be unquestionable. Its discounts, in gene- 
 ral, are very substantial, but in a great measure unavailable for active bank- 
 ing purposes. The report from this office to last session was founded, as 
 therein stated, on the monthly returns, Since that time, more particular 
 
694 REPOIITS OF THE 
 
 attention has been directed to the subject, and the result has been already 
 submitted. 
 
 The Committee say, "It is true that our excess of expenditure over our 
 income from the Treasury, the last fiscal year, has been ^17,000 ; but your 
 Committee believe that there were demands upon the Treasury during this 
 period, which will not be included in our ordinary expenditure. Upon the 
 following items alone, it is believed that the following amounts will be 
 saved from the appropriations of the. last year. 
 
 Internal Improvement, . --$1G,000 
 
 Public Buildings ■_ - 1 5^000 
 
 Census, Lunatic Asylum, and fire in Camden 8.000 
 
 Making an aggregate of. _ . . $39,000 
 
 This amount will probably supply the deficiency of the last year." 
 The sum for which the Treasury stood charged last year, was greater 
 than the actual payments of the preceding year. That the appropriations 
 were not paid within the fiscal year, has been owing (except in a single 
 instance,) to causes entirely accidental. A sufficient allowance had not 
 been made for contingent appropriations. It was quite natural to suppose 
 that appropriations for some of the specific objects enumerated, were not 
 likely to be made again ; but more reflection, perhaps, might have satisfied 
 the Committee, that other appropriations, for other objects, were not im- 
 probable. The revenue, however, is improving, and for the current year, 
 will, no doubt, be adequate to all the demands of the Treasury. 
 
 Groaning, as our citizens are, under a load of indirect taxation full heavy 
 to be borne, the Comptroller General cannot recommend to your honorable 
 body, still further to increase their burthen, by raising the State taxes, at 
 least for the present. He would most respectfully urge the necessity of 
 putting in requisition all the other means of the State. Although he is 
 satisfied that the Bank of the State will be unable to meet, by its annual 
 profits, the several instalments as they become due, yet he believes it may 
 be made the means of ultimately discharging the debt, in two ways: — 1st. 
 The debt to be called in as it becomes due, by application of the Sinking 
 Fund, and a sale of new Stock, bearing an interest of 5 per cent. It is 
 important to call in the debt as it falls due, because the character of the 
 State for good faith will be elevated, and at the same time a clear profit of 
 at least 5 per cent, amounting to a full year's interest, may be realized on 
 the sale of stock. The annual profits of the Bank, will then constitute a 
 sinking fund for the redemption of the new stock. 
 
 2d. The debt may be paid out of the sinking fund and capital, by 
 gradually winding up the affairs of the Bank, and finally closing it. 
 
 The appropriation for repairs of the State House, remains in the Trea- 
 sury ; no commissioners having been appointed to superintend the work. 
 AH which is respectfully submitted. 
 
 THOMAS HARRISON, 
 R. ^ R. 7;. 1 to 9. Comptroller General. 
 
COMPTROLLEK GENEEAL. G95 
 
 (1821) 
 
 Upon the Resolution of the 20th of December, 1823, " That the Comp- 
 troller General and the President of the Bank of the State of South Car- 
 olina, be reepired to enquire into the expediency and practicability of re- 
 moving the Bank of the State of South Carolina, from Charleston to Co- 
 lumbia, with the view of ultimately establishing, so soon as may be expedi- 
 ent, branches at Cheraw and Hamburg ; and that they be required to report 
 separately thereon, at the meeting of the ensuing Legislature, taking into 
 consideration the eft'ect, which would be thus produced upon the currency 
 of the interior of the State," the Comptroller General respectfully submits 
 the following 
 
 REPORT: 
 
 In determining upon the expediency, and of course, practicability of re- 
 moving the Bank from Charleston to Columbia, the first subject of enquiry 
 which seems to be presented, relates to its financial character alone, and 
 in that light, is of less importance than some others, which follow. This 
 part of the subject can be settled with much more satisfaction and safety 
 by a reference to the operations of the Bank, than any speculation of mine, 
 no matter how solid the premises on which it may rest. Would the Bank 
 placed in Columbia, produce as much profit as in Charleston ? The fact 
 that the Branch Bank at Columbia, has been conducted with less expense, 
 (making a liberal allowance for the difference of the two offices,) has turned 
 out to the State greater profits in proportion: to the funds employed, and 
 has done a safer business, is worth more than all the arguments which spe- 
 culation can furnish upon the subject. The position, that the Branch at 
 Columbia has turned out more profits than the mother Bank, is supported 
 and accounted for, by the facts, that it has always been free from the tram- 
 mels and operations of other Banks, has contracted no bad debts, and is 
 conducted with less expense. That it has done a safer business than the 
 Bank at Charleston ; in other words, contracted no bad debts, whilst the 
 profits of the mother Bank in Charleston, have been considerably'- dimin- 
 ished by them, is to be accounted for from the characters of their customers. 
 The direction of both Banks, may discharge their duties with equal cir- 
 cumspection, diligence and foresight, and the same result will be produced. 
 The Cliarlestoh Bank will be liable to contract bad debts, whilst the Co- 
 lumbia Bank will not. For no human foresight can prevent the contrac- 
 tion of bad debts in a large commercial city like Charleston, where the 
 mercantile community has intercourse with the whole world, and numerous 
 multifarious connections, secret and open, at home and abroad ; whose for- 
 tune is not only staked upon the good faith of others, but upon the ele- 
 ments too ; and whose credit is founded in Bank, not even upon a capital 
 thus hazarded, but upon the extent of business, which is as much a multi- 
 plication of the chances of ruin, as prosperity. But in a small inland town 
 like Columbia, the trader is exempt from the most of those casualties, 
 which often strip the richest merchants of the sea-ports, of their wealth, and 
 consign them to ruin ; his connections in business, too, are more limited 
 and generally knT)wn ; and his capital is not protected from the public 
 knowledge, by that mysterious shroud which covers that of the sea-port 
 merchant, and is considered by some, so essential to prosperity in trade. — 
 Thus it is that the Bank of Columbia can lend to the mercantile commu- 
 nity with less risk. Besides this, the merchants are less numerous in the 
 proportion they bear to the rest of tlic community, than they are in Charles- 
 
696 llEPOHTS OF THE 
 
 ton, and are almost always backed in their Bank transactions, by planters 
 the extent of whose credit, can be graduated by a certain capital. Of all 
 the customers of a Bank in Columbia, whether merchants, planters, or me- 
 chanics, their circumstances can be made as well known to the direction, as 
 the security of the Bank may require, which cannot be the case in Charles- 
 ton. From this, the conclusion seems to me irresistible, that the Bank es- 
 tablished in Columbia is liable to less loss than in Charleston, and would 
 therefore return to the Treasury of the State greater profits. 
 
 I will take the liberty here of considering the objection, which I some- 
 times hear advanced with more speciousness than fairness, that there is not 
 sufficient Banking intelligence in Columbia to conduct an independent 
 Banking institution. This objection, like some others, is better met by 
 facts, than arguments. The proof lies before us. Compare the present 
 direction of the Branch in Columbia, with that of the Bank in Charleston, 
 and what knowledge does the Charleston direction possess, or what service 
 do they perform, to which the Columbia direction is not equal ? Compare 
 the operations of the two Banks, and it will be found that the Columbia 
 direction have conducted their institution with the greatest safety, and have 
 made the greatest profits. It is no argument to say, that they have not the 
 same difficulties to contend with. They have managed the Bank, through 
 all the difficulties incidental to Banking in Columbia, and have proved 
 themselves equal to the task. Since Banking has ceased to be looked on 
 as a mysterious art, in the possession of a fjivored few only, its business is 
 considered as comprehensible and attainable, by the inhabitants of the in- 
 terior as of Charleston ; and there can now be no doubt but that a direc- 
 tion may be obtained in Columbia, as capable of conducting the business 
 of the Bank, as in Charleston. 
 
 There is a reason for the removal of the Bank to Columbia, connected 
 with the financial character of the measure, which I also beg leave to pre- 
 sent here. To the credit of all banking institutions, but more especially 
 to those of a government, public confidence is important, if not absolutely 
 pecessary. It is a fact, humiliating to the institution, that the confidence 
 <of the people of the interior of the State, in the present good management, 
 future prosperity, and ultimate solvency of the Bank, is maintained more 
 upon the individual credit of its present head, than any information which 
 they possess. The public confidence, in a public institution of so import-x 
 ant and permanent a character as that of a government Bank, is thus left 
 to rest upon the contingency of the life of a single individual. However 
 complimentary and honorable to the individual who presides over the Bank, 
 this fact presents an enquiry, which must excite the most anxious solicitude 
 in those under whose control it is placed, and who have to answer to the 
 people for it. The removal of the Bank to Columbia, would immediately 
 substitute a permanent public confidence, for this contingent one. It 
 would be then subjected to the constant personal inspection of the Legisla- 
 ture. To all subjects of enquiry, immediate answers could be given, and 
 all subjects of doubt and apprehension cleared up and removed. The 
 members of the Legislature returning to their homes in every district, after 
 such examination, public confidence would be annually renewed and dif- 
 fused throughout the whole State. 
 
 Besides, by removing the Bank to Columbia, it is believed that a direc- 
 tion more safe to the institution, and more satisfactory to the Legislature, 
 may be obtained. It is obvious that a very large majority of the Legisla- 
 
 I 
 
I 
 
 COMPTROLLER GENERAL. 697 
 
 ture vote for directors of the Bank in Charleston, without possessing satis- 
 factory personal knowledge, and often upon the information of others alone. 
 From this has resulted a practice of intriguing for that direction, which 
 may one day or another, produce serious injury to the Bank. The State 
 pays its director no salary, but it is well understood, that as a compensa- 
 tion for his services, he shall have a credit for a large amount, say $20,000 
 in Bank. The fact is notorious in Charleston, if not here, that persons in 
 trade have frequently become candidates for directors in this Bank, in 
 order that they might obtain a credit in it, otherwise out of their reach, by 
 which they might maintain their credit in business. I have been informed 
 that some candidates, after failing in their election here for directors of 
 this Bank, have returned home and immediately failed in business. It is 
 not difficult to see that a direction for the Charleston Bank might be cho- 
 sen by the Legislature under these circumstances, well calculated to do 
 the State great injury. With the Bank in Columbia it would be otherwise. 
 The Legislature would select directors upon their personal knowledge, or 
 the most full and satisfactory information. The members would not be 
 compelled to vote upon partial information, given from interested motives. 
 
 The foregoing considerations in favor of the removal of the Bank from 
 Charleston to Columbia, connected entirely with the permanent jSnancial 
 prosperity of the institution, it is hoped will be found satisfactory. 
 
 It is now my duty to enquire what effect would be produced upon the 
 currency of the interior of the State, by the removal of the mother Bank 
 to Columbia, and the establishment of branches at Cheraw and Hamburg, 
 retaining, I shall presume, the branch established at Camden. 
 
 To reach this part of the enquiry properly, it will be necessary to in- 
 dulge in some introductory remarks upon the present state of the trade, 
 and the distribution of the trading capital, as through it only, the condi- 
 tion of the currency of the interior can be affected. 
 
 Hamburg, Columbia, Camden and Cheraw, occupy points about equi-dis- 
 tant from the sea coast and the mountains which mark our western bound- 
 ary. They form a line across the State, and occupy all the avenues of 
 trade from what is called the upper country to Charleston. Thus situated, 
 they are calculated to be of great convenience, in facilitating the trade be- 
 tween those places. They are well calculated to receive and encourage 
 considerable trade from our neighboring States. They occupy those points 
 on our own large rivers, which mark the termination of one species of nav- 
 igation, and the commencement of another, whilst they are admirably placed 
 to receive all the produce of the country above, which seeks its market by 
 land transportation. Nature seems to have formed these sites for the pur- 
 poses to which the present state of improvement seems to be converting 
 them ; as primary markets for the produce of the upper country, or places 
 of deposit for it, on its way to the principal market, Charleston. As mar- 
 kets in the first instance or places of deposit, they become of primary im- 
 portance to the upper country, and are entitled from the Legislature, to all 
 that kindness and assistance, which the interests of the back country have 
 a right to claim. 
 
 For the better understanding of my views, I shall take the liberty here 
 of bringing to the view of the Legislature the present course of the trade, 
 as it exists between Columbia and Charleston, and the manner in which 
 the interests of the whole country trading with Columbia are affected by 
 
 88 
 
698 REPORTS OF THE 
 
 it. The same relation too must subsist between Camden, Cheraw and 
 Hamburg, and Charleston, so that all remarks made upon the trade between 
 Columbia and Charleston will bo equally applicable to the trade of the 
 other towns. , 
 
 The upper country produce, that seeks a jnarket,is almost entirely con- 
 fined to the single article of cotton. The cotton buyer will therefore be 
 •the important trader, the coui-se of whose business, under the existing cir- 
 cumstances, I propose to examine. The nature of the trade requires a 
 large capital and frequent investments. So great is the demand, that our 
 inland towns are not able to furnish anything like a sufficient supply, and 
 were the deficiency not drawn from some other source, the trade would 
 cease, for the want of funds to carry it on. Charleston, taking advantage 
 of this state of things, makes the necessary advances, incurs upon the in- 
 terior towns a great expense, and secures to herself a very considerable 
 profit. The interior towns have no alternative ; Charleston holds the purse, 
 they can get funds no where else, and are compelled to accept them upon 
 any terms, 'i'he loans made to the cotton buyers in Columbia, are ad- 
 vanced by factors in Charleston, who in most cases, no doubt, receive them 
 upon their own liability, from the Banks. The consequence is, that the 
 cotton buyer not only pays the lawful interest upon the money borrowed, 
 but becomes liable to the factor for commissions, even if he sells his cotton 
 himself. Besides this, he labors under the disadvantage of having his cot- 
 ton sold, in the most depressed state of the market, by the factor, to meet 
 his engagement with the factor, to enable the factor to meet his engage- 
 ment, in turn, with the Bank. The charge of commissions, a very impor- 
 tant item in the account of a winter's trade in cotton, is saddled on the cot- 
 ton buyer, with the hazard of having his stock on hand sacrificed, for the 
 want of a few days' accommodation in a Bank. Another important con- 
 sideration in the account of this trade is, that loans are remitted from 
 Charleston at the risk and expense of the cotton buyers in Columbia. But 
 all these commissions and other charges and losses come out of the pock- 
 ets of the planter, for the cotton buyer takes care to indemnify himself in 
 the price that he gives. Any arrangements, therefore, which the Legisla- 
 ture would make, that would diminish these exti-aordinary charges upon 
 the cotton trade between the interior towns and Charleston, would be a 
 saving of that much to the planters trading with them, and an addition in 
 fact of that sum to the capital stock of the country. In this trade the 
 Charleston factor ia liable to no. censure ; he runs great risks in borrowing 
 and lending the money, and receives but a just indemnity, in the commis- 
 sions, for which he stipulates. But the extraordinary charges upon the 
 trade, accruing from it, ought to be saved to the planter, if possible. If 
 this cannot be done entirely and immediately by the Legislature, it may 
 be done in time, and in part, by carrying into execution the project under 
 consideration. 
 
 It is a fact, applicable to the.trade of all our interior towns, where the 
 means of purchasing are inadequate to the demand, and which has fre- 
 ' quently occurred in Columbia, that the cotton market has, for a time, been 
 placed in the power of one or two purchasers, who, understanding their ad- 
 vantage, have immediately reduced it a cent or two in the pound, or to 
 that price which would produce a return of profits commensurate with their 
 cupidity for gain. At such a moment, a few Bank accommodations, judi- 
 ciously made to the other cotton buyers, would sustain the market, and pra- 
 
COMPTROLLER GENERAL. 099 
 
 tect the planter from great loss. At the moment, tao, when the cotton 
 buyer's engagement with his Charleston correspondent has to be met, un- 
 der the disadvantages of a depressed market, a Bank accommodation, for 
 a few days only, would be of great importance to the trade. For it need 
 not be remarked that the cotton buyer has to be supported in all his losses 
 in trade, no matter how incurred, as well as his gains, by the planter. And 
 that the planter therefore is as much, indeed more interested in removing 
 the obstructions, and extending facilities to the improvement of the mar- 
 ket, than the merchant. - 
 
 All the banking capital of the State has, through the extreme liberality 
 of the Legislature, been chartered in Charleston. In addition, a branch 
 of the Bank of the United States lias been established there. Charleston 
 thus possesses a monopoly of the banking capital in the State. The ques- 
 tion occurs, is it all necessary to her trade ? — for the whole State is inter- 
 ested in supporting it. Can she spare any, without injury to it? I think 
 it evident that all is not necessary, and that she can spare a part without 
 injury to her trade. The proof lies in the surplus capital in that town. 
 That she has capital to spare, is as manifest from the present price of stock 
 as that the interior towns want it, from the disadvantageous terms under 
 which they borrow it. When six per cent, stock is commanding in the 
 market 11 or 12 per cent, advance, it is plain that there is a redundance 
 of capital, which the trade does not require. Would the Legislature thus 
 do an injury to the trade of Charleston, by removing the Bank to Colum- 
 bia? Indeed the contrary would be the result. Charleston may thank 
 the Legislature for taking from it what it does not want, and cannot em- 
 ploy to advantage, and using it in improving her trade. By this project, 
 Charleston is expected to receive as much benefit as the interior towns of 
 the country. For, view the subject as we will, we find that the interior 
 towns are but agents to collect the produce of the upper country for Charles- 
 ton. The interest of Churleston, the interior towns, and the country, in 
 this trade, will be the same, their dependence upon each other mutual, and 
 their prosperity or decline commensurate. 
 
 By the obligations of equal Justice, I should think the Legislature bound 
 to grant the same privileges to other parts of the State, which it has hereto- 
 fore bestowed exclusively upon one, whenever their necessities may require 
 it, and they demand it. This is the case now with the interior towns em- 
 braced in the Resolution. It is true that the trade of Charleston is much 
 greater, and requires more banking favors than the smaller towns, but in 
 justice, the smaller towns have the same right to demand the little their 
 trade requires, that Charleston has to demand the more which her trade 
 requires ; and the Legislature is as much bound to grant that little to the 
 smaller towns, as she was to give the more to Charleston. 
 
 I have no doubt that there is as much banking capital already chartered 
 as the interest of the State requires, and an increase of it should be avoided 
 to any considerable extent, as tending to lessen in value and depreciate the 
 paper currency of the State. It would, therefore, in my opinion, be highly 
 imprudent in the Legislature to increase the banking capital of the'State, 
 by granting charters to companies, to the extent demanded by the trade of 
 Hamburg, Columbia, Camden, and Cheraw, but it would be better for it to 
 withdraw from Charleston, its own capital (and it seem^ to me that this is 
 all that it can in prudence do,) and distribute it amongst these towns. 
 Georgetown and Beaufort, two* considerable towns upon oar sea coast, 
 
 I 
 
700 REPORTS OF THE 
 
 occupying conveiiJent posilicms for trade, should be embraced in tbis pTX>- 
 j«ct, if it metits with the approbation of the Legislature. Georgetown al- 
 ]?eady possesses a> branch of the Bank of the State, and it would be unjust 
 to withdraw it, without furnishing an equivalent. It would be proper too, 
 to extend to Beaufort the same accommodation, whenever her trade may 
 require it and she think proper to demand it. I would suggest the propri- 
 ety of making an arrangement with some of tlie private I^nks in Charles- 
 ton^ to- detach a branch to each of those towns, and then withdraw the 
 branch of the Bank of the State from Georgetown, and transfer it to Che- 
 raw : or, if this arrangement cannot be effected, to grant charters for the 
 establishment of Banks in both these towns. With the present Banks in 
 Charleston, and a Bank each at Georgetown, Beaufort, Hamburg, Colum- 
 bia, Camden and Cheraw, eyery point of trade thus occupied, the Legisla- 
 ture will have furnished all the facilities to the trade of the State in its 
 power, and in the benefits of which every section of the State would enjoy 
 an equal participation. 
 
 Although I feel opposed to increasing the Bank capital, yet I would pre- 
 fer doing so, to the extent that the trade of Georgetown and Beaufort may 
 require, by charters to private con:^panies, rather than detach a part of the 
 capital of the Bank of the State, too little as it certainly is, to meet all the 
 demands which the trade of Hamburg. Columbia, Camden and Cheraw 
 would have upon it. Should the Legislature think proper to grant char- 
 ters for Banks to companies in these towns, and should afterwards appre- 
 hend any danger to the good credit of the currency of the State generally, 
 from the increase of Bank capital, it might curtail the capital ©f the 
 Charleston Banks to that amount, upon the renewal of their charters. 
 
 I now come to the consideration of the most important enquiry embraced: 
 in the Resolution. The effect that would be produced upon the currency 
 of the interior of the State by the operation of this project, is a consider-B- 
 tion before which all the rest, important as they are, sink comparatively 
 into insignificance. 
 
 From the state of trade some time ago existing, a considerable part of 
 the interior of the State was almost entirely deprived of the use of our 
 own currency, and compelled to accept as a substitute, the depreciated bills 
 of the neighboring States, passing everywhere else at a discount. The 
 populous and wealthy districts of the western part of the State, which 
 until lately traded with Augusta, and now trade with Augusta and Hamr- 
 burg, suffered great inconvenience as well as loss from the circumstance. 
 Whilst Augusta monopolized the trade of that part of our State, remit- 
 tances for produce were made to the planter in Georgia and North Caroli- 
 na bills alone. If the planter obtained South Carolina notes, it was by 
 accepting a less price for his produce, or paying a higher premium. The 
 districts of Edgefield, Abbeville, Pendleton, and Greenville, were almost 
 entirely dependent upon this market, and all the other western districts in 
 part. So complete was the inundation of this depreciated currency in 
 that part of the country, from Feb. 1817, to Feb. 1821, that the tax col- 
 lectors from those districts often brought a large part of their returns in 
 these bills, and sold them at a discount to enable them to make a settle- 
 ment with the Treasury, declaring that there were not enough of South 
 Carolina bills in their districts to pay the taxes. During the period above 
 stated, these facts came to my knowledge as Treasurer of the Upper Divis- 
 IQUj with whom the Tax Collectors made their settlements. Since, I have 
 
COMPTROLLER GENERAL. 701 
 
 not been apprised of the changes which may have taken place in the state 
 of the currency, but presume there must have been some. For since that 
 time, Hamburg has come into existence, which receives a part of the trade 
 of those districts, and holding an intercouse with Charleston, it is presu- 
 mable that the state of the currency has been improved. Be that as it 
 may, there is no doubt that a very large portion of the currency of the 
 upper districts is still formed of foreign bills ; to expel which, and supply 
 their place with our own bills, must be an important object with the Legis- 
 lature. This object can better be accomplished by the project under con- 
 sideration, than any other. Banks established at all those inland towns 
 with which the upper country trade, would set in circulation a sound cur- 
 rency of our own, which would immediately expel the foreign. All know 
 the fact, that Bank bills in circulation are paying an interest to the Bank, 
 but we do not always reflect that the holder in fact pays it. It is thus that 
 the people of South Carolina have been made tributary to the Banks of 
 Georgia and North Carolina, to the amount of the iuterest upon their bills 
 in circulation in this State. If to this we add the loss sustained by the 
 use of a depreciated currency, we shall find it of sufficient importance to 
 claim the serious attention of the Legislature. It is obvious, that the sa- 
 ving to the State, by the expulsion of this currency, would be equal to the 
 interest upon the bills expelled, added to the loss sustained by deprecia- 
 tion. Thus the State will be relieved from the humiliation also of paying 
 a premium for the use of unsound foreign bills. From the removal of the 
 mother Bank to Columbia, therefore^ the most beneficial effects upon the 
 currency of the interior of the State, are to be confidently anticipated. 
 
 There is one objection which I have somctinies licnrd urged against this 
 project, which I propose to examine. If the Bank be removed to Colum- 
 bia, its notes, of course, will be made payable there. It is conjectured by 
 some, that the Banks in Charleston will refuse to receive them on deposit, 
 and produce a depreciation in theiT credit below par value. This conjec- 
 ture has no solid foundation to rest upon, whilst a contrary position is sus- 
 tained by many strong considerations. But it is not unworthy of remark, 
 that should it prove true, it is very problematical whether such a result 
 would not prove advantageous to the Bank, without endangering its general 
 credit. Indeed there is no danger of the bills sinking below par in the 
 interior of the State, whilst they hold a higher rank in the scale of value 
 than the bills of the North Carolina and Georgia Banks ; and there cer- 
 tainly can be no danger of that nesult as long as the mother Bank will con- 
 tinue to redeem her notes with specie. Any depreciation produced by the 
 operations of hostile Banks upon these notes, and not founded upon a di- 
 minution of their intrinsic value to those who use them, would be but tem- 
 porary, and confined to Charleston, and whilst it lasted, in this case produce 
 good rather than evil to the Bank at Columbia. It would be aiding, in- 
 stead of obstructing, the principal object which this project has in view, 
 that of making the notes ojf this Bank a currency, emphatically, for the 
 interior of the. State. 
 
 The depreciation to be produced in the notes of the Bank, made' payable 
 at Columbia, has been settled very ingeniously at the expense and premi- 
 um for risk in transporting specie from the Bank in Columbia to Charles- 
 ton. But this reason operates both ways. It is a two-edged sword, bran- 
 dished against both sides. By the same rule, the bills of the Charleston 
 Banks would be reduced below par at the same rate in Columbia, by the 
 refusal of the Bank at Columbia, to receive them on deposit. 
 
702 REPORTS OF THE 
 
 Removed so far from the comiiicrce of the ocean, where alone specie is 
 in demand in hirge quantities, no apprehension could be entertained of 
 great runs. Every consideration forbids it. The Banks of the neighbor- 
 ing States would never think of incurring the expense and risk of it • be- 
 sides, if they did, they could be retaliated on to their great disadvantage 
 from the neighboring branches on our borders. The Banks in Charleston 
 would not think of it for the same reasons, they being liable to sustain an 
 equal injury, in a state of such profitless hostility. 
 
 But there is another consideration which would not only restrain the 
 hand of hostility towards the Bank at Columbia, on the part of the Charles- 
 ton Banks, with the exception of the branch of the Bank of the United 
 States alone, but render them extremely courteous. Those Banks are not 
 likely to forget that they become dependent upon the Legislature from time 
 to time for a renewal of their charters of incorporation, and that the chan- 
 ces of success would be endangered by unfriendly conduct towards the Bank 
 of the State, But the removal of the Bank from Charleston to Columbia, 
 would not produce an injury to the interest of the Charleston Banks, and 
 it is not probable, that for the wanton purpose merely of doing injury to a 
 rival who had withdrawn from the sphere of competition, they would step 
 out of that path which Banks have always been peculiarly remarkable for 
 treading with the closest exactness. 
 
 But suppose that the hostile operations of the. Bank in Charleston should 
 throw obstacles in the way of the currency of the Bank at Columbia, and 
 reduce its credit to a trifling discount ; suppose^ that they should refuse to 
 receive the Columbia notes on deposit ; and that the Custom House of the 
 United States should refuse to receive them in payment of duties ; I think 
 it is manifest that the disability thus produced upon the credit of the bills, 
 would be confined to Charleston ; nay mOrc, that it could not be made to 
 reach that portion of the mercantile community who trade in the produce of 
 the interior of the State, with whom to maintain their credit, is all that 
 could be desired, and that such operations would be aiding instead of ob- 
 structing the main object of the removal of the Bank, namely, the creation 
 of a wholesome country currency. 
 
 It may be taken for granted that the bills of the Bank at Columbia, will 
 always be at par in the interior of the State. North Carolina bills, which 
 are at a considerable discount in Charleston, are at none in the country now, 
 from the necessity of using them. It cannot be presumed that the bills of 
 a Bank always paying specit;, supported ilpon the faith and upon the pledge 
 of the property of the whole State, of such general and essential interest in 
 the very especial and important njatter of the effect to be produced upon 
 the currency, will be suffered to sink below their expressed value. But 
 there can be no doubt that their value in the country will settle their value- 
 in Charleston, as long as there is country produce to be purchased in Charles- 
 ton, and remittances in money to be made for it. Whilst the planters of 
 the interior, where it is intended that the notes of the Columbia Bank shall 
 circulate, maintain, in their favor, in their intercouse with the Charleston 
 market, that balance which has heretofore marked their prudence, and cou' 
 sequent prosperity, and which it is to be hoped, and is believed, they ever 
 will, so long will the demand for the Columbia bills, for remittance, be greater 
 than the supply of them which the course of trade can collect in Charles- 
 ton ; and whilst that is the case, there can be no reasonable apprehension 
 entertained of their depreciating even in that city. 
 
COMPTROLLER GENERAL. 703 
 
 Jf the supply of Columbia notes in the Charleston market, as is \'ery cer- 
 tain, shall not be equal to the demand for remittances to the. interior towns, 
 the result will be, -that the deficiency will be made up of the Charleston 
 bills, These remittances will go in almost every instance, in the first place 
 at least, into the hands of the merchants residing in the interior towns em- 
 braced in this project, or of plantsrs in their neighborhood,, who, in the es- 
 tablished course of their business, will deposit them in the Bank. Thus 
 the Bank at Columbia and its branches will be enabled t-o lock up these 
 bills of the Charleston Banks in their vaults, and send their own into circu- 
 lation, to any extent their interests may require. Or, in the event of the 
 commencement of hostilities on the part of the Charleston Banks, for the 
 specie of the Columbia Bank, be enabled, in such an unnatural campaign, 
 to retaliate, by inflicting injury for injury. But this arrangement would 
 give to the Columbia Bank a real advantage, by putting it in its power to 
 draw all its necessary supplies of specie from the Charleston Banks, without 
 the least dread of incurring this hostility, anticipated by some. Indeed the 
 benefit would be in some degreemutuai, for by removal to Columbia, the 
 supply of specie kept on hand by the Bank, would be much diminished, as the 
 demand for it would be less. Knowing that the specie would be always at 
 their command, the holders of the notes interested in the success of the in- 
 stitution, would make no more calls for it, than necessity may require. The 
 difference between the sum required in Columbia and Charleston, to sup- 
 port the Bank, would pass into the vaults of the otlier Banks, and to that 
 extent add to their means of maintaining their credit. Indeed the Bank 
 in Columbia would require very little specie, as its credit would be more 
 essentially supported by public confidence and public interest in its wel- 
 fare ; a consideration of much importance. 
 
 There remain two considerations more connected with the removal of the 
 Bank, worthy of the attention of the Legislature ; one against it, the other 
 in favor of it. 
 
 The consideration against the removal is of a temporary and private char' 
 acter, and is embraced in the trouble and expense, and the inconvenience 
 to the ofl&cers and debtors of the Bank. As to the expense, I have no doubt 
 that the State would be more than indemnified for it, by a tenfold remunera- 
 tion, from the increase of profits after the Bank had been completely estab- 
 lished in business. As to the officers of the Bank, I think the doctrine 
 well established, that public offices are created for public convenience, and 
 not for the benefit of the incumbents. If the officers are willing to remove 
 with the Bank, it will, no doubt, be to the interest of the institution, as 
 well as to the wish of the Legislature, to continue to employ them. As 
 to the debtors, measures should be taken to extend to them all the indul- 
 gence which their necessities may require, and the interest of the Bank 
 allow. With their consent all the debts not discharged after a given and 
 reasonable time, might be transferred to Columbia, and indulgence thus 
 extended. 
 
 The other consideration, which is in favor of the removal of the Bank 
 to Columbia, is of great importance. It would be an introduction to that 
 system of annua! examination into the concerns of the Bank by the Legis- 
 lature, by which it is proposed to place the public confidence in the man- 
 agement of the institution, upon the most permanent and satisfactory 
 basis, instead of the contingent one upon which it now so much depends. 
 The removal of the Bank to Columbia would be one of the most thorough 
 
704 KEPORTS OF THE 
 
 ana scrutinizing examinations wliich tlie Bank could undergo. It would 
 be in eft'ect, as to tbe manner and success of its operations, a complete 
 winding up of its business, exposing what was erroneous in its management 
 as well as judicious, which would become landmarks by which its future 
 direction should be guided. It would solve the problem without further 
 hazard, if it still bo considered one, of the capacity of the State to bank 
 with safety. The Legislature would thus obtain satisfactory information 
 from which they could determine whether it was expedient to continue 
 their present system of banking, or stop it. 
 
 Should the Legislature acquiesce in these views, it is believed that there 
 is nothing in the present state of the Bank concerns which should prevent 
 an immediate commencement of its removal. Its connection with the 
 lower Treasury must be dissolved, but there will be no difficulty in making 
 arrangements to remedy all the inconveniences which will result from it. 
 Much detail would be required, to be incorporated in an Act for the remo- 
 val of the Bank, all of which is matter of consideration for the Legisla- 
 ture, and not for me. If the project cannot be matured at the present 
 session, I would beg permission to suggest the propriety of appointing 
 Committees, with full powers over the subjects embraced in the project, 
 with directions to sit during the recess of the Legislature. 
 
 If my views of the subjects embraced in the Besolution be correct, the 
 following results from the removal of the Bank of the State from Charles- 
 ton to Columbia, retaining the Branch established at Camden, and estab- 
 lishing Branches at Cheraw and Hamburg, may be confidently anticipated. 
 
 The profits of the Bank will be increased. 
 
 The trade between these towns and Charleston will be relieved from 
 extraordinary charges and risks now incident to it, by which the planter 
 trading with them, will receive better and more certain prices for his pro- 
 duce, and the capital wealth of the State to that extent improved ; for it 
 is obvious, that all saving of charges upon produce, after it leaves the 
 planter's hands until it passes its last market into the possession of the 
 consumer or manufacturer, is an improvement of its .value to the planter 
 who raises it. 
 
 The bills from the Banks of the neighboring States, which form a prin- 
 cipal part of the currency of the interior, will be expelled to the extent of 
 the amount of bills kept in circulation by the Banks established at the 
 points contemplated, and a saving will be thus made to the capital wealth 
 of that part of the State, equal to the interest paid to the Banks for the 
 foreign money now in circulation, and the loss sustained by its depreciation. 
 
 In addition, much improvement in the trade of these towns with the 
 neighboring States, may be expected from it. 
 
 I have, therefore, no hesitation in giving it as my opinion, that it is not 
 only practicable, but expedient, to remove the Bank of the State from 
 Charleston to Columbia, and, retaining the Branch in operation at Cam- 
 den, to establish, as soon as practicable, branches at Cheraw and Hamburg. 
 Respectfully submitted by 
 
 B. T. ELMORE, Comp. Gen. 
 
 1 
 
COMPTROLLER GENERAL. 705 
 
 [1843.] 
 
 The Treasurer of the Lower Division reports that the Bank of the State 
 has transferred to the Sinking Fund, the sum of one hundred thousand 
 dollars, which makes the balance of that fund, on 1st October 1843, seven 
 hundred and forty-one thousand one hundred and twenty dollars, ($741,- 
 120.) 
 
 The following amounts of Stock, issued by the State, will be redeemable 
 at the times stated below : 
 
 In January 1 845, 5 per Cents, . . . $250,000 00 
 
 300,000 00 
 
 200,000 00 
 
 200,000 00 
 
 (Randolph,) 10,000 00 
 
 200,000 00 
 141,662 50 
 From which it will be seen that one million one hundred and sixty thou- 
 sand dollars, ($1,160,000.) of the debt of the State will be redeemable in 
 eight years from the first of January next, and one hundred and forty-one 
 thousand six hundred and sixty-tv/o dollars and fifty cents, in seven years 
 after. 
 
 By adding the interest which will accrue on the several amounts as they 
 remain unpaid, together with the interest on the outstanding amounts of 
 the three per cent. Stock, the actual demands which will be made on the 
 State, between January 1844 and 1852, will exceed one million five hun- 
 dred thousand dollars, ($1,500,000.) 
 
 W.. LAVAL, 
 
 Do. 
 
 1846, 5 
 
 do. 
 
 Do. 
 
 1848, 6 
 
 do. 
 
 Do. 
 
 1850, 6 
 
 do. 
 
 Do. 
 
 1850, 6 
 
 do. 
 
 Do. 
 
 1852, 6 
 
 do. 
 
 Do. 
 
 1859, 5 
 
 do. 
 
 Report of the Comj)trolhr General in cmsiver to 
 
 as to tlie Finances of the State. 
 To THE Honorable the Sexate of South-Carolina : "^ 
 
 The Comptroller General, in obedience to the Resolution requiring him 
 to report such facts and information as he may deem best calculated to il- 
 lustrate the practical efi'ects of any proposed change or measures in rela- 
 tion to the payment of the Public Debt, the management of the Bank and' 
 Sinking Fund, and the fiscal operations of the Treasury, as well as their 
 efi'ects on the credit of the State, respectfully reports : 
 
 That the difiicultj' of procuring immediately such documents as are ne- 
 cessary to a full investigation of the several points embraced in the Reso- 
 lution, together with the pressure of other official business, constrain him 
 to request the indulgence of the Senate for presenting so brief a view of 
 the several points of enquiry as he has now the honor to submit. 
 
 Among the propositions which have been presented to the Legislature 
 on the subject of its financial concerns, that which proposes the redemp- 
 tion of the public debt before the period at which it is payable by law, the 
 means to be made applicable to the purchase of the securities which consti- 
 tute the debt, and the times and manner of effecting these purchases, ap- 
 pears to be one most worthy of consideration, and to form the principal 
 branch of the enquiry contained in the Resolution. 
 89 
 
706 IlEPOllTS OF THE 
 
 The following statement exhibits the entire indebtedness of the State 
 as it stood on the first of October last, and is here submitted as informa- 
 tiqn, viz : . , , 
 
 Three per Cent Stock _• -.-$193,501 58 
 
 Five " " " ofl824,._-. J.. 250,000 00 
 
 Five " " " of .1826, -__ 300,000 00 
 
 Six " '- " of " - 10,000 00 
 
 Six " " " of 1838, ' . 600.000 00 
 
 Five " " " of " Sterling Bondg. 1,035,555 56 
 
 Six « " " '. 964,444 44 
 
 Five " '" " of 1839,.' 141,662 50 
 
 Surplus Revenue, ' - 1,051,422 09 
 
 Total.: :_«-_:_-. $4,546,586 44 
 
 Of this amount, two millions eight hundred and fifty thousand dollars is 
 chargable on the Sinking Fund now held by the Bank of the State, and 
 upon the capital of th-e Bank. The remainder, one million six hundred 
 and eighty-six thousand, five hundred and eighty-six dollars, 44 cents, has 
 not been provided for by the appropriation of any special fund or assets of 
 the State. The proposition referred to in the first part of this Report, is, 
 " That five hundred thousand dollars of the Bonds or Stocks of the State, 
 should be purchased annually by the Bank until the whole debt is extin- 
 guished, and that the Bank be compelled to make the purchases under the 
 penalty of forfeiture of its charter." The practicability of this measure, so 
 far as the mere ability of the Bank to provide the necessary sums is con- 
 cerned, will not be questioned, if they can be redeemed at par. The Pre- 
 sident and Directors, in their annual report to the Legislature, have shown 
 assets equal to such a requisition upon it, and no reason appears why their 
 statement should be discredited. But the expcidiency of adopting such 
 measures, particularly when the agricultural and mercantile classes of our 
 citizens are just emerging from the pressure incident to a depressed state 
 of trade throughout our country, is a question which calls for graver con- 
 sideration, and a more full discussion, than present circumstances will per- 
 mit me to engage in. ' 
 
 As to the practical operation of the changes which have been proposed 
 in the mode of effecting the payipent of the public debt, and in the man- 
 agement of the- Sinking Fund : . - . 
 
 I will now submit a few observations. All who are at all conversant with 
 Banks and Banking operations, understand that the funds of these institu- 
 tions do not consist of money alone. They are principally invested in se- 
 curities which yield ah interest : a portion also is placed in real estate con- 
 sisting of banking houses, and of those involuntary acquisitions, which re- 
 sult from the inability of borrowers to redeem their Bank obligations in any 
 other way. 
 
 The Capital of the Bank being large, the inference is made, that the ap- 
 propriation of five hundred thousand dollars of its fund annually for the 
 purchase of State obligations can be effected without serious inconvenience 
 to any class of its debtors : this would be so if those funds were inactive or 
 unemployed, but when it is remembered that the- funds of the Bank from 
 which these debts are to be redeemed, are now loaned out to the citizens 
 of the State, and are employed in the active and necessary business opera- 
 tions of the country, it would seefti that the withdrawal of such large sums 
 
COMPTROLLER GENERAL 707 
 
 would interfere materially with tbose business operations. The effort to 
 collect these sums with a view to their permanent withdrawal, would neces- 
 sarily produce consequences greatly prejudicial to the interest of the debtors 
 of the Bank, and of others connected with them in the business relations of 
 life, and would be virtually putting the Bank into a state of liquidation. — 
 Independent of these considerations the uncertainty of procuring the Bonds 
 or other liabilities of the State, except at extravagant prices, may well de- 
 mand the serious attention of the Legislature. 
 
 It is an axiom in trade, that the value of a commodity is the price it will 
 bring ; and it is equally true, that an increased demand for any article of 
 trade, will enhance the price of the article. The effect, therefore, of accele- 
 rating the redemption of the State Stocks by compelling the purchase of a 
 large amount annually, will be to increase the demand for the Stock, and to 
 occasion such an advance on the price as will make the cost of -every pur- 
 chase seriously prejudicial to the interests of the State. 
 
 The holders of State Stocks have invested their funds in those Stocks, 
 from an opinion that they afford greater permanence and security than other 
 investments, and some inducement must be offered before they will assent 
 to a change. State Six per cent. Stocks are selling at this time at a pre- 
 mium of ten per cent., and if the measure proposed be adopted, making 
 it obligatory on the Bank to purchase up five hundred thousand dollars in 
 each year, the premium will be greatly increased, the Bank will be at the 
 mercy of the Stockholders, and every purchase would diminish the funds of 
 the State. 
 
 The forced purchase of the Bonds in Europe, would be equally costly. 
 The offer to redeem them would raise their price at once to par, to which the 
 cost of an agency and exchange must be added to ascertain the amount 
 which would be required for that purchase. This would not be the only 
 loss arisng from the measure. The Bank would be compelled to call in 
 from its debtors an amount equal to the purchase intended, and to provide 
 the funds before entering into the negociation. This would be attended 
 with the loss of interest and a diminution of the income of the Bank. It 
 would therefore seem, that the speedy discharge of the State debt is un- 
 questionably desirable, yet the times of payment now fixed by law, regulate 
 the redemption as rapidly as is consistent with the judicious management 
 of the State funds. From the statement in the former part of this Report, 
 it appears that one million one hundred and fifty thousand dollars of the 
 funded debt of the State will be redeemable in eight years from the 1st of 
 January next, and if the Legislature will make arrangements to charge 
 upon the capital of the Bank and the Sinking Fund, the redemption of the 
 three hundred thousand dollars loan which becomes due in 1846, (and which 
 I respectfully recommend to be done,) then the whole of that amount 
 will have to be provided by the Bank, and the necessity for levying addi- 
 tional taxes to meet the payment of 1846, will be entirely obviated. 
 
 With respect to the management of the Sinking Fund, I will make the 
 single remark, that the Bank of the State being chargeable with the pay- 
 ment of the debts for which the fund is specifically pledged, it is reasona- 
 ble to infer that the President and Directors of that institution will make 
 as judicious a disposition of it as any Special Commission could do, and 
 that without the expense which would be incurred by the establishment of 
 such a commission. 
 
 With respect also to the effects of the proposed measure on the fiscal opera- 
 tions of the Treasury, I would briefly observe, that the Bank certainly af- 
 
708 EEPOUTS OF THE 
 
 fords facilities, and during Its cxistcnee lor a large portion of tlie time at 
 some period of the year has made advances to the State Treasury, and in 
 some years to a large amount. But if the' Bank be forced into a state of 
 liquidation from the effect of those- measures, *it would be compelled, per- 
 haps, to withhold those facilities, and the Treasury would be frequently em- 
 barrassed in the fiscal operations. It is true, that other money institutions 
 could be induced to make all necessary advances to the Treasury ; but the 
 consideration which they would require for doing so, would probably be such 
 as the Legislature would not be willing to accede to. 
 
 The enquiry whether the Bank has answered the purposes of its institu- 
 tion, may be divided into two branches : first, as to its profits ; second, as to 
 the kind of accommodation it has afforded to the community. 
 
 As to the question of profits, the statements which have been, from time 
 to time, submitted to the Legislature, afford the necessary means of judg^ 
 ing. Taking for granted the soundness of the securities and funds now 
 held by the Bank, as certified by the Reports of the various examining 
 committees appointed by the Legislature, there can be no doubt that the 
 operations of the Bank up to this time have been beneficial to the funds of 
 the State. 2nd. As to the kind of accommodation afforded by the Bank. 
 By the preamble to the Act of incorporation, the objects of the establish- 
 ment were declared to be, " for discounting paper and making loans for 
 longer periods than had before been customary, and on security different 
 from what had previously been required." So far as my ofiieial position 
 has enabled me to judge, it has appeared that the Bank has afforded such 
 accommodations. It is not the practice of private Banks to disclose the 
 character of their loans, and therefore, it is not in my power to institute a 
 comparison between the accommodations afforded by the Bank of the State 
 and the private Banks ; but that accommodations have been freely extend- 
 ed to the agricultural interest of the State, and upon terms which it is un- 
 derstood that other institutions do not permit, seems to be generall conce- 
 ded. As to the influence of the proposed measures on the credit of the 
 State, I would observe, that the application of the funds of the Bank to the 
 immediate redemption of the debts, could not impair that Credit, unless the 
 process of collection be so conducted as to jeopard their solvency, the 
 prices paid for the purchase of Stock be extravagant, or the debts paid out 
 of their due order. But if the funds be withdrawn from the Bank, and 
 taken under the immediate control of the Legislature, or committed to a 
 Special Commission as a Sinking Fund, the apprehension of the foreign 
 creditor may be excited. The Bank is now liable to legal process, and 
 may be compelled, through the Courts of Justice, to pay the State debt 
 for which it is pledged. But the State is not liable to be sued, and pay- 
 ment cannot be enforced against her. The policy of creating a Bank on 
 the funds of the State may be considered as involved in the Resolutions 
 under consideration. 
 
 If this were a new question, and the indebtedness of the State did not 
 require some extraordinary measures to provide for its discharge, and there 
 were no private Banks whose operations and circulation required to be con- 
 trolled, I should deem the measure unadvlsable ; but under circumstances 
 now existing, it seems inexpedient to interfere with the management of the 
 institution further than to secure an upright administration of its affairs. 
 Respectfully submitted : 
 
 W. LAVAL, C. a.— R. R., p. 56-9. 
 
COMPTROLLER GENERAL. 709 
 
 [1844.] 
 
 The Comptroller. General ' respectfully reports: That since his last 
 Annual Statement, there has been redeemed of the Funded Debt of the 
 State, the sum of four hundred and seventy- three thousand, four hundred 
 and ninety-two dollars and two cents, ($473,402 02) as follows : 
 
 The President and Directors of tlic Ba^ik of the State of South Caro- 
 lina, in January last, surrendered tothe Comptroller General sundry Cer- 
 tificates, of the Three, Five, and Six per Cent. Stocks of the State, amount- 
 ing to the sum of four hundred and seventeen thousand and eight dollars 
 and twenty-nine cents, ($417,008 29 ;) in addition to which, he purchased, 
 by tlie authority of tlie Legislature, (Acts of 1842-3,) certificates of the 
 Five per Cents of 1838, amounting to fifty-six thousand, four hundred and 
 eighty-three dollars, seventy-three cents, ($56,483 73 ;) making together, 
 the sum first above stated, or four hundred and seventy-three thousand, 
 four hundred and ninety-two dollars, and two cents, (473,492 02;) which 
 Certificates have all been cancelled, and the amount carried to the credit 
 of the State on the books of the Loan Office in Charleston ; the same be- 
 ing also noted in the Records of this Department. 
 
 In the foregoing transaction, there has been a gain to the State (on the 
 Three per Cents) of twenty thousand seven hundred and two dollars, (20,- 
 702 00.) - ' . 
 
 The Bank of the State being credited for its capital with thirty-two thou- 
 sand, nine hundred and sixty dollars, seventy-five cents, ($32,900 75 ;) the 
 sum actually expended by the I^ank in the purchase of the Certificates, 
 and the remainder, ($20,702 71. being- the difieretiee between that amount, 
 and the nominal or par value of the same, bcijig carried to the credit, of 
 the State. 
 
 He also reports, that the State Loan of 1824, originally two hundred 
 and fifty thousand dollars, but reduced by the redemption of the past year 
 to one hundred and fifty-nine thousand, one hundred and six dollars and 
 thirty-eight cents, ($159,106 38,) will be redeemable in January next, 1845. 
 
 The Sinking Fund, from which this payment is to be made, was on the 
 1st day of October last, seven hundred and seventy seven thousand, nine 
 hundred and eighty-four dollars and thirty one cents, (777,984 31.) 
 
 The profits of the Bank for the past year, and the balance of the Sur- 
 plus Revenue transferred to the former, under the Resohition of 18th De- 
 cember last, being included. 
 
 The balance of Cash in the Treasury on the 1st October last, was seven- 
 ty thousand two hundred and fifty-two dollars and eighty-two cents, ($70,- 
 252 82.) 
 
 The statement of Debits and Credits, shews a balance in favor of the 
 State, on the 1st October, 1844, of nine hundred and thirty-nine thousand 
 four hundred and eight dollars eighty- three cents, ($939,408 83.) 
 
 Though if the debt included therein as due to the United States, be 
 considered as a nominal liability only, the balance in favor of the State 
 would be nearly two millions of dollars. 
 
 As the resources of the State, therefore, exceed its liabilities by so large 
 an amount, its faith and character, both at home and abroad, are abundant- 
 ly confirmed, and will be sustained, as long as the present policy of regu- 
 lating its monetary concerns, and of limiting the appropriation of monies 
 within the bounds of the ordinary revenue, is adhered to. 
 
 It is also respectfully suggested, that the Surplus Revenue be always 
 
710 REPORTS OF THE 
 
 considered by the State as a deposlte — as a debt due — and tliat v/Iiile it 
 may continue to avail itself of its use, it may so regulate its financial con- 
 cerns, as to be enabled at any t^me, promptly, and without inconvenience 
 to respond to a demand for re-payment. ' 
 
 W. LAVAL, C. G—R. S,- R. p. 3. 
 
 (1845.) 
 
 The Comptroller General Reports, that one hundred and fifty-six thou- 
 sand, three hundred and nineteen dollars, thirty-two cents, ($156,319 32) 
 of the State 5 per cent, (loan of 1824.) was redeemed at the Treasury in 
 Charleston during the past year. That h-e purchased from the current 
 funds of the Treasury, five thousand four hundred and seventy-six dollars 
 and thirty six .cents ; ($5,476 36.) of the 5 per cents, of 1826, and that the 
 Bank of the State in September last, surrendered to this Department, thirty- 
 three thousand three hundred and thirty-three dollars and thirty-three 
 cents, ($33,333 33) in sterling bonds, being a part of the State Loan, au- 
 thorized by the Act of 1838, for the rebuilding of the City of Charleston, 
 making the total amount of State debt cancelled since the last Report, one 
 hundred and ninety-five thousand, one hundred and twenty-nine dollars, one 
 cent, (195,129 01.) ' 
 
 The balance of the Loan of 1826, now amounting to two hundred'and 
 twenty thousand two hundred dollars, ninety-five cents, (220,200 95) will be 
 redeemable in January next ; the Sinking Fund is chargeable with the pay- 
 ment of this Loan. The debt due by the South Carolina Rail Road Com- 
 pany to the State, (with the interest to 1st March last.) is four hundred and 
 seventy thousand, three hundred and sixty-eight dollars, eleven cents, 
 ($470,368 1 1 ;) one hundred thousand dollars .of which bears interest at the 
 rate of 5 per cent, per annum, and two hundred and fifty-eight thousand, 
 seven hundred and eighty-six dollars, fifty-four cents, ($258,786 54,) 6 per 
 cent, per annum ; no part of the interest has been paid on either of the 
 foregoing amounts. — W. Laval, C. G — R. t^* R P- 3. 
 
 (1846.) 
 
 The Comptroller General reports that two hundred and sixty-thousand 
 twenty-eight dollars, and twelve cents ($260,028 12) of the State debt has 
 been paid off", as follows : 
 
 By paymerUs at the Loiver Treasury. 
 
 5 per cent, of 1824 ^ 2,287 56 
 
 5 do. of 1826.__ _-- 219,190 95—221,478 51 
 
 Purchased by Comptroller General. 
 
 3 per cents 20,95^ 49. 
 
 5 do. of 1838........ 854 38 
 
 6 do. of 1839 _- 16,741 74 38,549 61 
 
 $260,028 12 
 
COMPTROLLER GENERAL. 711 
 
 In the purchase of the tliree per cent. Stock, above stated, there is a 
 gain to the State of seven thousand seven hundred and fifty-two dollars 
 and seventy-nine cents, (7.752 79) that sum being the difference between 
 the par value and the current price of the Stock,' which amount has been 
 passed to the credit of the State. By the Act making appropriations for 
 the year 1845, the Comptroller General is directed, after reserving the 
 sum of ten thousand dollars, to apply any balance of moneys in the 
 Treasury at the end of the fiscal year to the purchase and extinguishment 
 of the public debt of the State. The' ComptriDller General found it next 
 to impossible to effect the purchase of State Stocks, without submitting to 
 pay a greater premium than he felt willing to give, even under the positive 
 directions of the Act above cited. The Comptroller was unable to obtain 
 any more State Stocks beyond the amount purchased, for less than 
 at a premium of from four to twelve per cent, according as the differ- 
 ent stocks had to run a longer or a shorter time. Holders were unwilling 
 to part with their State Stock at any reasonable advance. 
 
 Believing the Legislature will Sustain him in pursuing a course calcula- 
 ted, in his opinion, to advance the interest of the State, the Comptroller 
 respectfully submits the matter to their consideration. 
 
 WM. C. BLACK, C. G, 
 R Sr R. p. 4. 
 
 (1847.) 
 Every exertion was made to absorb, (after deducting ten thousand dol- 
 lars, ($10,000) as directed by the Act of the last session of the Legislature.) 
 the remaining balance of twenty-six thousand one hundred and forty-six 
 dollars and sixty-four cents, ($26,146 64) in the purchase and extinguish- 
 ment of the public debt, but it was found impossible to do so. 
 The Comptroller General purchased and cancelled the fol- 
 lowing State Stocks. 
 
 5 per cent, stock of 1838 .. 4,437 54 
 
 6 do. do 1839__ 20,000 00 
 
 6 do. do. " .-- _ 4,500 00 
 
 $28,937 54 
 
 I per cent, premium on $20,000 6 per cents. 175 00 
 
 ^ do. Brokerage on " 6 do. 50 00 
 
 I do. premium on $4,500 6 do. ____ 39 75 $264 75 
 
 Amount of Stock purchased, including premium paid ..--$29,202 29 
 
 The one-third of the six per cent. State Stocks, issued by authority of 
 the Act of the Legislature of 1839, making provision for "an advance by 
 the State, on its subscription to the Louisville, Cincinnati and Charleston 
 Rail Road Company," becomes due on tlie 1st of January, next. (1848.) 
 By the Act above recited, it is made the duty of the Bank of the State of 
 South Carolina, to pay the instalments of this issue of State Stocks as they 
 fall due; the Comptroller has every assurance, as to the means and readi- 
 ness of the Bank to meet promptly this demand of the public creditor. 
 
 By Act of the Legislature, pas.sed in 1829, the State made a loan of one 
 hundred thousand dollars to the South Carolina Canal and Rajl Road 
 
712 REPORTS OF THE 
 
 Company. pa3'aLle in seven years thereafter. "VVlien this loan, with the 
 accruing interest, became due in 1836, the Company memorialized the 
 Legislature, asking an extension of the time of pa}'ment. which was grant- 
 ed, and the further time of ten years was given the Company to make 
 payment of the principal and interest to the State. By the terms of the 
 Resolution granting this indulgence, the loan, amounting to one hundred 
 and seventy-four thousand and ninety-seven dollars and twenty-two cents, 
 ($174,097, 22) became due again on the 26th December last, 'a few days 
 after the adjournment of the Legislature ; the Comptroller has made a 
 demand on the President of the Company for payment ; the President, in 
 reply, made a written communication to this Department, declining to make 
 payment, for the reason therein stated ; the Comptroller herewith trans- 
 mits a copy of these communications, marked K and R, and respectfully 
 asks the instructions of the Legislature, as to his future action in this 
 matter. 
 
 WM. C. BLACK, a G. 
 R. ,y R. p. 3. 
 
 IN REPLY TO CERTAIN RESOLUTIONS OF ENQUIRY OP 
 
 THE SENATE. 
 
 To the Ilonorahh tJic President^ 
 
 and other mcmhcra of the Senate: 
 The Comptroller, in obedience to certain resolutions passed by the Sen- 
 ate at the present session, calling upon him to report, as soon as practica- 
 ble, to the Senate, '• what sum or sums may have at any time been paid 
 over to the Bank, on account of Capital, in pursuance of the Act of 1813 ; 
 also, to report what amount of the public debt the Bank has paid out of the 
 Capital Shares, paid in from the Treasury ; also, what amount the said 
 Bank has paid into the Treasury from its profits; also, what amount of 
 public debt, principal and interest, the said Bank has paid, since its organi- 
 zation ; and also, what amount of stocks issued by the State have, at vari- 
 ous times, been placed in the Bank ;" — has the honor to sulmit to the Sen- 
 ate the following report, in reply to the foregoing resolutions: 
 
 Bank of the State of South I aroliua for its Capital, iii account with the State. 
 
 1813 To 800 Shares in Planters' and Mechanics' 
 
 Bank sold at 19,341 77 
 
 Sept. " 498 Shares in State Bank, sold- _ _ 53,004 99 
 
 " Articles (used in transporting materials) 
 
 sold 200 00 $72,546 IQ 
 
 ^' Cash paid at Charleston Treasury to S. 
 
 Elliott 30,000 00 
 
 " 873 Shares in State Bank, sold for 90.556 58 
 
 1814 " Articles (u.sed in transportation) sold. -. 220 00 90,776 58 
 
 Jany. 7 '• Cash from Charleston Treasury — 35,512 35 
 
 April " '' '• •• 19,994 08 
 
COMPTKOLLEK aENEKAL. 713 
 
 June " " " " for printing Me- 
 dium Blanks 2,285 50 
 
 July " Casli from Charleston Treasury 4,784 87 62,576 80 
 
 Oct. " . " " •' " 11,341 26 
 
 1815 
 
 Jany. " " " " " _. 38,091 15 
 
 Apl. 19 " " ", " " 17 597 72 
 
 Aug. " " " " " 1 5',876 30 82,907 03 
 
 1816 
 
 Nov. 1 " " " " " 13.030 65 
 
 1816 
 
 Jany. " " " " "' ..38,188 82 51,219 47 
 
 April " " " " " 31.651 12 
 
 July 29" •' " " " 17^375 66 49,026 78 
 
 1817 
 
 " 417 Shares in State Bank sold __. 45,815 00 
 
 '• 1,166" transferred to Cashier 116,600 00 
 
 " Profits on 156 shares, since sold 3.076 80 165,491 80 
 
 1816 
 
 " 46 Shares in State Bank, sold 1816.. _ 5,920 20 
 
 Nov. 14 " Cash from Charleston Treasury 15,711 22 
 
 1817 
 
 Jany. " " " " " 39,93167 
 
 May 20 " " " " " 43,650 54 
 
 July2 " " " " " 14,120 23 112,413 66 
 
 Dec. 24 " "' " " " „ 14.772 46 
 
 1818 
 
 Dec. 24 " " " " " - 39,304 97 
 
 May " " balance in Treasuries, 1 st April, 258,385 30 
 
 " " interest received from U. S 15,604 29 328,067 02 
 
 1819 
 
 July 2 " Profits on 93 Shares in State Bank 
 
 sold.__ _ 1,920 00 
 
 " United States Stock sold 1 47,87 1 40 
 
 Nov. 16 " Cash from Charleston Treasury „ _ .29,375 15 
 
 1819 
 Feb. 25 " Cash for interest on U. States stock 10,842 61 . 
 April' " " " - " " 127,196 28 
 
 Aug. 6 " " " " " 4,098 64 171,513 10 
 
 Whole amount paid in on account of capital $1,372,250 60 
 
 In reply to the second inquiry. 
 
 Revolutionary debt paid by the Bank in 1819 $176,029 95 
 
 " " " 1828 39,902 17 
 
 « " « 1844 32,960 75 
 
 $248,892 87 
 This is the whole amount of public debt paid from the capi- 
 tal of the Bank, according to the provisions of the Act of in- 
 corporation. 
 
 90 • 
 
714 REPORTS OF THE 
 
 In reply to the third inquiry. 
 
 The Bank has paid from 1814 to 1821, both inclusive, into 
 the State Treasury, for profits $592,001 28 
 
 In 1821 the Legislature passed an Act establishing the 
 Sinking Fund, by which the President and Directors of the 
 said Bank were required to debit themselves with their annu- 
 al profits, and credit that fund with the same. 
 
 In ansicer to the fourth inquiry. 
 
 The Bank, from 1823 to 30th September, 1847, inclusive, 
 paid for interest on the public debt - $2,653,502 56 
 
 In reply to the ffth inquiry. 
 
 The Bank has paid, of the public debt of 6 per cents 
 1820 — 5 per cents 1822 — 5 per cents 1824 — 5 per cents 
 1 826 — 6 per cents issued to Rail Road, and 5 per cents is- 
 sued to South Western Rail Road Bank $1,586,239 36 
 
 6 per cents and five per cents Sterling Bonds issued for 
 fire loan, cancelled by the Bank ..-^^ __. $189,253 37 
 
 Ansiver to tlw sixth inquiry. 
 
 The State issued and added to the Bank as capita tal, the 
 
 amount of the fire loan, in 1838 $2,000,000 00 
 
 In 1844, a portion of the Surplus Revenue was transferr- 
 ed to the Bank, for the purpose of aiding in the redemption 
 
 of the 5 per cent stock of 1826___ 200,000 00 
 
 The State deposited with the Bank a portion of the 5 per 
 cent stock, issued to the South Western Rail Road Bank, 
 
 which the Bank of the State cancelled in 1844 32,336 80 
 
 Whole amount of stock issued by the Stat^ and placed in 
 
 the Bank at various times. $2,232,336 80 
 
 Respectfully submitted, 
 
 WM. C. BLACK, 
 Comptroller General 
 Comptroller's Office, 
 December 16, 1847. 
 
COMPTROLLER GENERAL. 
 
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716 GOV. HAMMOND'S MESSAGE 
 
 Governor Hammond's Message in Regard to tJic Bank. 
 
 Executive Department, > 
 Columbia, Nov. 28, 1 843. \ 
 Gentlemeti of tJie Senate 
 
 and House of Representatives : 
 
 Since your adjournment the late long continued depression of financial 
 affairs throughout the world, has reached and passed what we have much 
 reason to believe was its final crisis. During the last Spring prices of ev- 
 ery description fell to the lowest point ever known, but have since contin- 
 ued steadily, though gradually to advance. The revival of business has 
 not been the effect~ of accidental causes, or speculative operations, or ex- 
 pansion of the paper currency : nor is it owing to any act of legislation in 
 any part of the world favorable to trade. It has been the natural result of 
 industry, economy, and time, which have swept off a large proportion of 
 the embarrassments created by the disasters of the past, and accumulated 
 at all the great commercial points, in safe hands, a vast and unexampled 
 amount of sound nietallic capital. We have therefore good reason to in- 
 dulge the hope that it will be perraa.nent, and to felicitate ourselves on the 
 dawn of a new era in trade and finance. 
 
 There is but one serious obstacle now apparent that can arrest and roll 
 back, in any shor.t period, the returning tide of our. prosperity ; and that 
 is, the narrow and delusive idea which still seems to prevail with a majori- 
 ty of those who rule the world, that they can promote the interests of their 
 respective countries, by fettering trade and building up monopolies. Un- 
 til we seriously approximate to universal Free Trade — to an unrestricted 
 exchange of the surplus productions of one country, for the surplus of an- 
 other, by which means, the wants of all will be supplied in the cheapest 
 manner, and commerce, currency and credit established in natural and en- 
 during channels, the perpetual recurrence of speculations, fluctuations and 
 disasters, that will convulse the world, must be looked for with perfect cer- 
 tainty. 
 
 It is a matter for congratulation, that England, the source and centre 
 from which have directly or indirectly sprung nearly all the great improve- 
 ments of modern times, has given evidence of a serious change orr this great 
 question. Her recent legislation has been decidedly directed towards a re- 
 laxation of the prohibitory and protective laws. It is to be regretted, at 
 'the same time, that nearly every other important power in Europe, has, 
 within a few j'^ears past, in its convulsive efforts to throw off the embarrass- 
 ments of the times, increased restrictions upon trade. Whilst our own 
 Government, recurring to that policy which is every where else regarded as 
 one of the most odious features of aristocratic and despotic power, and held 
 in abhorrence by the people, has re-enacted its Tariff laws, and made them 
 more rigorous aiid oppressive than they have ever been before. That a 
 Government like ours, purporting to be based on perfect freedom and 
 equality, should perpetrate such laws; and that a people so intelligent as 
 ours — so distrustful of their rulers — so ready to resist injustice, and op- 
 pression, — four-fifths of whom are agriculturists, all deeply injured by re- 
 strictions upon foreign commerce — sliould permit such an execrable system 
 to be fastened on them, is one of the most extraordinary events in the his- 
 tory of the age. To the enlightened views so rapidly gaining ground among 
 those who control the Engish Government — to the progress of true knowl- 
 
CONCERNING THE BANK. 
 
 717 
 
 edge ^among the other States of Europe, and to the charjge of power into 
 other hands, which is just about to be realized in our country, 1 look with 
 confidence for a vast amelioration and early abandonment of the whole 
 system of protective duties. 
 
 In the meantime it should be borne constantly in mind, that any depar- 
 ture from the great principles of industry, economy, and a steady faith, that 
 with the practice of these two cardinal virtues, time will do the rest, must 
 be attended with the most serious consequences to our future welfare. — 
 And perhaps no occasion could be more auspicious than the present, for 
 you to institute a close and searehing examination into the precise condi- 
 tion of our State, in all its departments, and Introduce such alterations alid 
 reforms as will enable her to take the tide of prosperity to most advantage, 
 and maintain it longest. 
 
 Her financial condition claims, perhaps, at this especial moment, your 
 first attention. The public debt of the State may be put down in round 
 numbers at three millions and a half of dollars ($3,500,000.) 
 
 The following is a correct statement of the items^viz : 
 
 Date. 
 
 1794- 
 
 1824 
 1826 
 
 u c 
 
 1838 
 u u 
 
 a (.'. 
 1839 
 
 Amount out-| Rate of 
 standing. Interest. 
 
 $193^0T85l3^perct. 
 
 250,000 0Oi5 
 
 300,000 00 5 
 10,000 00*6 
 
 141,662 50!5 
 1035.555 55 5 
 
 964,444 44 6 
 
 200.000 00!6 
 
 200^000 OOT) 
 
 200,000 00 6 
 
 iWhen Re- 
 ! imbursable. 
 
 Object of the Loan. 
 
 I 
 
 I At will Payt. of Revolutionary Claims, 
 Jan. 1846 Internal Improvements. 
 1846 Do. ' do. 
 1850 Benefit of Mrs. Randolph. 
 1858!Sub. to S. W. R. R. Bank. 
 1860 Rebuilding City of Charleston, 
 1863= Do. do. do. 
 
 \ 848|Loan & sub. to L. C. & C. R. R C, 
 1850 Do. do. do. do. 
 
 1852; Do. do. do. d^, 
 
 $3,495, r64 35 
 ^1,051,422 00 — Amount of Surplus Revenue deposited with the State. 
 2,000,000 00 — Amount of Loanby the L. C. & C. Rail Road, guarantied 
 by the State. 
 
 It is highly probable that the State will never be called on to refund the 
 Surplus revenue, though her liability for it should never be forgotten, in 
 an estiniate of her debt. It is to be hoped that her guarantee of the Rail 
 Road Bonds is only nominal, and that in due season they will be discharg- 
 ed by the Rail Road Company. I therefore deduct these items, in stating 
 the Public Debt, for which certain and early provision must be made, at 
 
 THREE MILLIONS Ax\D A HALF. 
 
 . It will be perceived that the payments of this debt run through a period 
 of twenty-six years, and that the* heaviest instalments are the last. Ad- 
 mitting that the State will punctually discharge it as it falls due, without 
 creating another, it is yet a serious question whether she should not use 
 every effort in her power to discharge it earlier. A public debt is no lon- 
 ger regarded any where as a public blessing, and such a mass of it hang- 
 ing over her for such a period must press heavily upon the enterprise and 
 resources of the State. 
 
 J feel called on however to declare, that I do not believe the debt will 
 
718 GrOY. HAMMOND'S MESSAGE 
 
 be paid even as it falls due, without creating a fresh one in lieu of it, or a 
 large portion of it, unless important changes are made in the financial ar- 
 rangements of the State. And as these changes might, if effected at all, 
 be so made as to discharge it at a much earlier period, it seems to me the 
 wisest policy to relieve the people as speedily as possible of this immense 
 pressure. The debt can be dona fide paid only by levying taxes to the 
 amount of it, or by using the funds of the State already in existence. — 
 Although I have not the least doubt that the people would, without a mur- 
 mur, submit to be taxed to any amount, rather than the slightest imputa- 
 tion should rest upon the good faith of the State, yet while there exists any 
 other means of meeting her obligations, I presume no one will propose to 
 resort to onerous taxation. The only alternative, is to use the funds of 
 the State now committed to the management of the Bank. 
 
 The idea has been often and recently gravely put forth, that the Bank 
 would pay the debt as it became due, out of the profits arising from the 
 operations of Banking. To shew the fallacy of such an idea, it is only 
 necessary to compare the interest on the debt with the profits of the Bank. 
 The interest amounts at this time to one hundred and eighty-six thousand, 
 six hundred and thirty-one dollars and ninety-six cents ($186,631 96) per 
 annum, exclusive of expenses, which must raise the expenditure for this 
 purpose to at least one hundred and ninety thousand dollars ($190,000) 
 annually. The nett profits of the Bank, for the fiscal year of 1842, were 
 reported at two hundred and ten thousand, seven hundred and sixty-nine 
 dollars and forty -two cents, ($210,769 42.) leaving a balance of twenty 
 thousand seven hundred and sixty-nine dollars, and forty-two cents $20,- 
 769 42.) The nett profits of the last fiscal year amounted to two hundred 
 and twenty-six thousand, seven hundred and thirty-two dollars and seven- 
 teen cents, ($226,732 17.) leaving a balance in favor of the Bank, of thirty- 
 six thousand, seven hundred and thirty-two dollars and seventeen cents, 
 ($36,732 17.) It is obvious that an annual accumulation to the amount of 
 the largest of these sums, would not discharge the debt in much less than 
 a century. Nor is there any just ground for anticipating a great increase 
 of profits for the future. The period for immense returns from Banking 
 operations has passed away, and it is to be hoped, forever. Such is especial- 
 ly the case with this Bank, since the monopoly, which it so long enjoyed in 
 this State, has ceased, and cannot be revived again. 
 
 It is also said that the State has received and still retains equivalents 
 for a large proportion of her debt, which can be converted at the proper 
 time for paying it. . She possesses eight thousand (8,000) shares of Rail 
 Road and Rail Road Bank Stock, which it is gratifying to state, is rising 
 rapidly in value, and it is to be hoped will one day be worth to her the 
 eight hundred thousand dollars ($800,000) which it cost. She holds also 
 the obligation of the Rail Road Company for upwards of $400,000 more, 
 which is doubtless perfectly secure. But these investments could hardly 
 be made available to meet a crisis, and unless converted very gradually, can 
 only be done at a heavy loss. Nor do the small dividends declared mate- 
 rially assist in paying the interest of the Stock issued to make them. For 
 the rest — the Sinking Fund, the Fire Loan, and the Surplus revenue, they 
 are all Banked on^ and although separate accounts are kept of them in the 
 Bank books, they are as essentially a part of the Bank Capital as the com- 
 paratively small portion Avhich is acknowledged to be such. They have 
 been loaned out, and to be used to pay the public debt, must, like other 
 
CONCERNINa THE BANK. 719 
 
 discounts, be collected from the debtors of the Bank. In short, what are 
 supposed to be equivalents for the State debt, are securities of no higher 
 value than those in which all the other funds of the State have been in- 
 vested by the Bank, nor are they more readily convertible into money. 
 
 It is said again, that one million ($1,000,000) of our internal improve- 
 ment debt has been redeemed, and this is taken as proof of the capacity of 
 the Bank to redeem the whole debt. It is true that one million has been 
 paid, but it has been made the pretext for issuing stock to the amount of 
 one million seven hundred and six thousand, one hundred and six dollars 
 and ninety-four cents, ($1,706,107 94.) thus actually increasing the public 
 debt seven hundred thousand dollars, instead of diminishing it. 
 
 This can be readily made to appear. In a moment of generous enthu- 
 siasm, worthy of the character of the State and her citizens, a bill was 
 passed at the extra session in 1838, almost by universal consent, to borrow 
 two millions of dollars ($2,000,000) for rebuilding the City of Charleston, 
 after the calamitous fire of that year. Of this amount, one million and 
 thirty-five thousand, five hundred and fifty-five dollars and fifty-five cents 
 ($1,035,555 55,) was obtained in Loudon, on 5 per cent, bonds. This was 
 loaned to the citizens of Charleston for building purposes, and supplied all 
 their wants. Faith and justice to the people of the State, required that the 
 balance of the bonds not sold for the purpose for which they were issued, 
 and not wanted for it, should have been destroyed. The bank, however, 
 obtained the Governor's consent to raise them to 6 per cent, bonds, to the 
 amount of nine hundred and sixty-four thousand, four hundred and forty- 
 four dollars, forty-four cents, ($364,414 44,) and took possession of them 
 as a loan from the State to itself, and merely charged itself debtor to the 
 State in that amount on the books of the bank ; though it still continues 
 to report the whole two millions as the '• Fire Loan." The pretext for this, 
 was to pay the instalments of the debt of eight hundred thousand dollars 
 ($800,000,) which fell diie in 1 840 ; and of two hundred thousand dollars 
 ($200,000) which fell due in 1842. And on that ground, the Legislature 
 afterwards, in 1841, sanctioned the conduct of the Bank, by laying on the 
 table a resolution to cancel this remainder of the Fire Loan Bonds. But 
 this was not all. At the regular session, in December, 1838, the Legisla- 
 ture passed an Act confirming the subscription of the Governor to the Rail 
 Bead Bank, and authorizing the Comptroller General to pay it by drafts 
 upon the Bank of the State, or by an issue of 5 per cents., in case the Pre- 
 sident and Directors of the Bank found it embarrassing to advance the 
 funds. Although the Sinking Fund at that time amounted to eight hun- 
 dred and twenty-four thousand dollars ($824,000) and the Surplus Reve- 
 nue to nine hundred and fifty-one thousand dollars ($95 1 ,000) and the 
 large balance of the Fire Loan Bonds before mentioned was absorbed by 
 the Bank during the current fiscal year, the 5 per cent stock was issued to 
 the amount of two hundred thousand dollars ($200,000,) though afterwards 
 reduced to one hundred and forty-one thousand, six hundred and sixty-two 
 dollars and fifty cents ($141,662 50.) And again at the Session of 1839, 
 the Legislature transferred to the Sinking Fund, to aid in the liquidation 
 of the public debt, six hundred thousand dollars ($600,000) of the Surplus 
 Revenue, which had been pledged to the payment of the subscription of 
 the State to the Rail Road Company, and issued for that purpose the same 
 amount of 6 per cent, stock. The operation in both these instances was 
 precisely the same as if these stocks had been created to pay the public 
 
720 C}OV. HAMMOND'S MESSAGE 
 
 debt, the appropriate fiinds in the Bank bjing withheld on that account. 
 Thus in the 'whole was seventeen hundred thousand doUars borrowed to 
 pay the one million of internal improvement Bonds ; and that at a period 
 when the Sinking Fund and Surplus Revenue, — funds specially applicable 
 to such a purpose, exceeded not only the debt paid, but even the enormous 
 sum borrowed, and would have covered both the instalments of the debt 
 and the subscription to the liail Road Company and Bank, had they been 
 so applied. If the history of the past is to furnish any criterion by which 
 to judge of the future, I fear that whenever an instalment of the public 
 debt becomes due, some scheme will be devised to induce the Legislature 
 to issue new stock to redeem it ; and if at every payment, seventy per cent, 
 more than is paid, is borrowed, it requires no. gift of prophecy to foresee 
 that this process of redemption will overwhelm the State in debt. I fear, 
 too, that it may be considered as certain, that the Bank will never, unless 
 forced to do it, part with a dollar of its capital, or of the funds used as 
 capital, to pay any portion of the principal of the debt. To diminish its 
 funds would be to curtail its power and influence ; and though history does 
 record some rare instances of men — exceptions to the general rule — who 
 have voluntarily resigned power, I do not remember a single one of a cor- 
 poration of any kind having done it. 
 
 Being fully assured that the Bank can never pay the public debt by the 
 profits arising from its operations, but being equally convinced that it never 
 will voluntarily pay any part of it out of its capital, I suggest to you the 
 propriety of requiring it, under penalty of forfeiting its charter, to pur- 
 chase annually, and at some period in each year to cancel, in the presence of 
 the Comptroller G-eneral, State Bonds to the amount of five hundred thou- 
 sand dollars, besides paying the interest on the balance. By such an ar- 
 rangement the whole debt would be paid in seven, instead of twenty-six 
 years. 
 
 It may be doubted by some, whether the Bank will be able to withdraw 
 so large a sum from her debtors annually, without producing great distress 
 in the State. It might be answered, that according to its own report, the 
 Bank collected and paid out during the single fiscal year of 1840, upwards 
 of twelve hundred thousand dollars ; and the pressure of the money mar- 
 ket at that time, was incomparably heavier than it now is, or is likely soon 
 to be. These measures, as I deem necessary and expedient, it remains for 
 your better judgment to approve or disapprove. May the Grreat Ruler of 
 the Universe, who alone is Wise and Perfect, so influence your delibera- 
 tions, that whatever you do may redound to the welfare and honor of our 
 country. J. H. HAMMOND. 
 
INDEX. 
 
 ACTS. 
 
 1812. An Act to establish a Bank, on behalf of and for the benefit 
 
 of the State 1 
 
 " From "An Act to make Appropriations for 1812." 9 
 
 1813. An Act to explain and amend an Act entitled "An Act to 
 
 establish a Bank on behalf of and for the benefit of the ' 
 State." . 10 
 
 1814. From " An Act to raise Supplies," &c ^ 11 
 
 " An Act to alter and amend the Charter of the Bank of the 
 
 State of South Carolina, so far as relates to the issuing of 
 Bills of a less denomination than One Dollar; and for other 
 purposes therein mentioned .__ 12 
 
 1816. An Act to authorize the President and Directors of the Bank 
 
 of the State of South Carolina to call in the Paper Medium 
 Loan Oflice Bonds, and to establish a Branch in Greorffe- 
 
 town _ — -___ 13 
 
 '* From "An Act to make Appropriations for 1816," 13 
 
 " An Act to prohibit the issuing of Bills or negotiable Notes 
 under the denomination of One Dollar ; and for other pur- 
 poses therein mentioned » 14 
 
 1817. An Act amend the several Acts incorporating the Bank of 
 
 the State of South Carolina 14 
 
 " An Act to alter and amend an Act entitled " An Act to 
 
 establish a Bank on behalf of and for the benefit of the 
 
 State."--- -- -__.__ 15 
 
 " From " An Act to increase the salaries of the Governor of 
 
 this State, and other oflScers therein mentioned". 16 
 
 1818 An Act to alter and amend the Charter of the Bank of the 
 
 State of South Carolina • 16 
 
 " An Act to alter and amend the Charter of the Bank of the 
 
 State of South Carolina 16 
 
 " An Act to authorize the President and Directors of the Bank 
 
 of the State of South Carolina to establish a Branch of the 
 
 said Bank at Camden , __ 16 
 
 '' An Act to excuse the Officers of the several Branches of the 
 
 Bank of the State of South Carolina from the performance 
 
 of ordinary Militia duty, and serving on Juries ,^ 17 
 
 91 
 
722 INDEX. 
 
 1819. From "An Act to make Appropriations for the year 1819." 17 
 
 1820. From "An Act to raise Supplies for the year 1820." _. 18 
 
 1821. From "An Act making Appropriations for the year 1821." 19 
 " An Act to provide a Sinking Fund for the redemption of the 
 
 Six per Cent Stock of this State 19 
 
 1822. An Act to protect the Bank and the holders of Bills and 
 
 Notes from frauds . ._ 20 
 
 " From "An Act to raise supplies for the year 1822." 21 
 
 " From "An Act to renew the Charter of the State Bank and 
 the Bank of South Oarolina, and for other purposes therein 
 mentioned." 22 
 
 1823. From "An Act to raise Supplies for the year 1823." 23 
 
 1824. An Act to amend the Charter of the Bank of the State of 
 
 South Carolina 23 
 
 " ' From " An Act to raise Supplies for the year 1824." _ _ 24 
 
 1826. From " An Act to raise Supplies for the year 1826." 25 
 
 " Ffom " An Act to make Appropriations for th^ year 1826." 25 
 " An Act to admit and incorporate private Stockholders in the 
 
 Bank of the State of South Carolina 25 
 
 1827. From "An Act to make Appropriations for the year 1827." 29 
 " An Act to admit and incorporate private Stockholders in the 
 
 Bank of the State of South Carolina 30 
 
 1828. An Act to repeal an Act entitled " An Act to admit and in- 
 
 corporate private Stockholders in the Bank of the State of 
 South Carolina."- • .__ 34 
 
 1830. An Act to authorize the President and Directors of the Bank 
 
 of the State of South Carolina to establish a Branch of the 
 
 said Bank at Hamburg 34 
 
 1831. An Act concerning the Bank of the State of South Carolina. 34 
 " From "An Act to make Appropriations for the year 1831." 36 
 
 1833. From "An Act to raise supplies for the year 1832." 37 
 
 " An Act to re-charter the Bank of the State of South Carolina. 37 
 
 1834. From "An Act to alter and amend the fourth Article of the 
 
 Constitution." 38 
 
 1836. From "An Act to make appropriations for the year 1836." 38 
 " An Act to provide for the reception and disposition of so 
 
 much of the Surplus Revenue of the United States, as may 
 be apportioned to this State, under the Act of Congress in 
 such case made and provided 39 
 
 1837. An Act concerning the Bank of the State of South Carolina. 39 
 
 1838. An Act for rebuilding the City of Charleston 40 
 
 " An Act to Amend an Act for rebuilding the City of Charles- 
 ton 45 
 
 *' From "An Act making appropriations for the year 1838." 47 
 
 i 
 
INDEX. 723 
 
 1838. An Act to authorize a subscription in behalf of the State to 
 
 the South- Western Rail Eoad Bank 47 
 
 1839. From "An Act concerning the office, duties and liabilities of 
 
 Sheriflf" :_ ,. 48 
 
 " An Act to provide for an advance by the State on its sub- 
 scription to the Louisville, Cincinnati and Charleston Rail 
 
 Road Company 49 
 
 " An Act to extend the Charter of the South-Western Rail 
 
 Road Bank. ^ 50 
 
 " An Act to extend the time during which Loans may be grant- 
 ed, under the Act to re-build Charleston 51 
 
 1840. From "An Act to raise Supplies for the year 1840." 52 
 
 " From "An Act to ascertain and define the powers, duties and 
 
 liabilities of Masters, Commissioners and Registers in Equi- 
 ty, and to provide for the organization and regulation of 
 their respective offices." . *._ 52 
 
 " An Act to amend the • Charter of the Bank of the. State of 
 
 South Carolina 53 
 
 " An Act to provide against the suspension of Specie Pay- 
 ments, by the Banks of this State 53 
 
 " An Act to make further provisions in relation to the Fire 
 
 Loan in Charleston 55 
 
 1841. From "An Act to incorporate certain Villages, Societies and 
 
 Companies, and to renew and amend certain Charters here- 
 tofore granted, and to establish the principles on which 
 
 Charters of Incorporation will hereafter be granted." 56 
 
 J 842.. From " An Act to make Appropriations for the year com- 
 mencing in October, 1842." - 56 
 
 ^' An Act to amend an Act entitled " An Act for re-building 
 the City of Charleston," and to alter and extend the time 
 and terms for the re-payment of Loans made by the Bank 
 of the State of South Carolina, pursuant to the provisions 
 of the said Act, and of a subsequent Act to amend -ihe 
 
 same . 56 
 
 1843. An Act to provide for the payment of a portion of the public 
 
 debt .._.,__: ___ 59 
 
 " An Act to restore to each Branch of the Legislature, the right 
 
 of enquiring into the finances of the State .' 60 
 
 *' An Act to amend an Act to provide against the Suspension of 
 
 Specie payments by the Banks of this State 61 
 
 " From " An Act making appropriations for the year com- 
 mencing in October, 1843." 62 
 
 <^ An Act to establish the Office of Assayer 62 
 
724 INDEX. 
 
 1844. From "An Act making' Appropriations for the year com- 
 
 mencing in October, 1844." 03 
 
 1845. From "An Act to make Appropriations for the year com- 
 
 mencing in October, 1845." 63 
 
 1846. From "An Act to make Appropriations for the year com- 
 
 mencing in October, 1846." , 63 
 
 1847. From "An Act to make Appropriations for the year com- 
 
 mencing in October, 1847." ^ 64 
 
 AGENCY. 
 
 ' Established at Georgetown, in lieu of Branch Bank 38 
 
 AGENCIES. 
 
 May be established by President and Directors 53 
 
 AGENT. 
 
 Of Bank, may be appointed at New York 36 
 
 To negotiate Fire Loan 40-665 
 
 ASSAYER. 
 
 To be appointed in Charleston 62 
 
 Appointed 479 
 
 Regulations 489 
 
 ATTORNEY GENERAL. 
 
 To direct form of bond and mortgage from borrowers of the 
 
 Fire Loan - 41 
 
 To be compensated by the Bank. 45 
 
 ATTORNEY GENERAL AND SOLICITORS. 
 
 To proceed against public officers neglecting to make deposits 
 
 ■ and statements required by law 1 16 
 
 To make returns of business placed in their hands by Bank or 
 
 Branches, and on default their salaries to be withheld 21 
 
 To. apply to Banks for witnesses in cases of counterfeiting 22 
 
 Communication from President of Bank in relation to sala- 
 ries of, 535 
 
 BANK OF THE STATE OF SOUTH CAROLINA. 
 
 Established, its purposes, &c '. 1 
 
 Its capital---.^ — ..1,7, 10, 17, 19,40 1 
 
 Faith and funds of the State pledged in its support I 
 
 Money now in Treasuries, and taxes hereafter collected, to be 
 
 deposited in 1 
 
 Powers of President and Directors of 2 
 
 Loans by, how to be made and called in 2 
 
 Its debts limited 2 
 
 Incorporated, its name and powers 4 
 
 To be located in Charleston, with Branch in Columbia 5 
 
 General statement of, to be furnished to Legislature, and 
 
INDEX. 725 
 
 BANK OF THE STATE— (Continued.) 
 
 Comptroller General to inspect 7, 11 
 
 Accounts of individuals, and bodies politic or corporate, not to 
 
 be inspected 7, 11, 60,87 
 
 Its bills receivable for taxes, &c 8 
 
 Certain public officers to deposit in 8,9, 10, 48, 52 
 
 No other Bank to issue bills under five dollars 10, 14 
 
 Officers of, exempt from militia and jury duty 11, 17, 53 
 
 Its capital and profits pledged for payment of the debts of the 
 
 State _- _, 20, 22, 24, 45, 50, 70 
 
 Views of Messrs. Hambro, Barings, Everett, President of 
 
 Bank, and Gen. McDuffie, on this point. -566^ 654, 657, 660, 661 
 
 Committees to inspect, to be appointed 23, 74 
 
 With power to examine books, accounts, &c 24 
 
 Stock books in Treasury Office to be transferred to 35 
 
 Ke-chartered till 1st May, 1856 37 
 
 Not to issue bills under one dollar, and to withdraw all such 
 
 from circulation 38 
 
 To refund, when required, surplus revenue to United States. _ 39 
 Money from Fire Loan to be paid into, and become part of 
 
 capital -- 40 
 
 Its profits pledged for payment of interest and principal of 
 
 Fire Loan. 45 
 
 To furnish information to Legislature when called for, except 
 
 as to individuals, and bodies politic and corporate 60 
 
 Regulations by, for loans under Act for re-building Charleston 70 
 Amount that may be loaned on mortgage extended to $10,000 76 
 
 Besolutions on the question of abolishing the 86 
 
 Comptroller directed to report as to capital of Bank — payments 
 
 of public debt by Bank — its profits, &c - 88 
 
 Table of capital and income— 18 14 to 1842 281 
 
 Its value to the State as her fiscal agent, discussed ..311, 556 
 
 And to depositors, from its security 311 
 
 Its political tendency considered 312 
 
 Its ability to pay the public debt considered 315 
 
 And to do so at earlier periods than now arranged for 316 
 
 Mode of collecting its debts discussed 322, 457, 473, 509, 522 
 
 Principles that affect its circulation discussed .._ 327, 456, 561, 687 
 
 Its advantages in time of war 396, 557 
 
 Statement of heavy payments made by, in 1840 444 
 
 Its benefits and profits, to 1841 _ 454 
 
 Policy of loans by, on bond and mortgage, considered _ . , 471 
 
 Comparison, as to safety, between loans on security of real es- 
 tate, and on business paper ,,--r, , , 471 
 
 92 
 
« 
 
 726 INDEX. 
 
 BANK OF THE STATE— (CoHtinued.) 
 
 Its measures for cancelling the public debt- 480, 507 
 
 Statement of its probable operations, in paying the public debt, 
 
 to 1 870, and of its profits to that time. 518, 568 
 
 Effect of Gov. Hammond's proposed measures, discussed 553 
 
 Effect of publishing the indebtedness of individuals, dis- 
 cussed _ _ 573, 647 
 
 Report on its removal _ 580 
 
 Effect of abolishing the Banlv, discussed 650 
 
 Statement of sums paid to it, as capital 712 
 
 public debt paid by it out of its capital 713 
 
 amount paid into Treasury by it, out of its profits 714 
 
 " " by it, for interest on public debt 714 
 
 " " " " " principal of " " .._ 714 
 
 additions made to its capital 714 
 
 Comprehensive table of its operations — 1 8 1 4 to 1 847 531 
 
 Its annual balance sheets — 
 
 1833 -- 180, 421 
 
 1834 425 
 
 1835 185,428 
 
 1836 430 
 
 1837 - ..188, 434 
 
 1838 437 
 
 1839 194,441 
 
 1814 
 
 . 108 
 
 1815 - — 
 
 l08 
 
 1816--- — _ 
 
 .109 
 
 1817--_.._ 
 
 _ __.109 
 
 18*18 
 
 110 
 
 1819 
 
 . 110 
 
 1820 
 
 -.-.111 
 
 1821 
 
 107,399 
 
 1840 452 
 
 1825 130, 140 1841 ._ 238, 458 
 
 1826 154,149,151 1842 465,466 
 
 1827 ..154,150,152 1843..-. 269,474, 475 
 
 1828-9 --. 163 1844 r.-. 483, 484 
 
 1830 409 1845,.., .298,498,499 
 
 1831 171, 416 1846- -.1 511,512 
 
 1832 181,418 1847 314,524^525 
 
 See President and Directors^ President of Bank., Officers of 
 Bank. 
 BANK, BRANCH AT CAMDEN. 
 
 Authorized .^.- 17 
 
 Report of Committee of Ways and Means, as to 73 
 
 Salaries of Ofl&cers at 530 
 
 Contingent Expense Account of 505. 517, 530 
 
 List of Committees to inspect .- .. 91 
 
 Their Reports — 
 
 1831 172 1841 262 
 
 1833 183 1843 287 
 
 1837 192 1845 307 
 
INDEX. 727 
 
 BANK, BRANCH AT CAMDEN— (Continued.) 
 
 1839 .- 
 
 ...217 
 
 
 1847 
 
 ..--.-..- 341 
 
 Annual balance sheets of — 
 
 
 
 
 For 1831 
 
 ...173 
 
 
 1843.... 
 
 476 
 
 1833 
 
 ...184 
 
 
 1844 
 
 485 
 
 1837 
 
 ...192 
 
 
 1845 
 
 -. 307,500 
 
 1839 - 
 
 ...218 
 
 
 1^46.... 
 
 513 
 
 1841 
 
 -.-460 
 
 
 1847 
 
 341, 526 
 
 1842 
 
 ...467 
 
 
 
 
 See Banks^ Branch; 
 
 Officers 
 
 of 
 
 Branches ; 
 
 Presidents of 
 
 Branches. 
 
 
 
 
 
 BANK, BRANCH AT COLUMBIA. 
 
 Established - 5 
 
 Provision for Banking House, lot conveyed, &c 8 
 
 May make loans on mortgage II 
 
 Salaries of officers of __. 258 
 
 Statement of profits and losses at, to 1841 258 
 
 " " amount of bills payable at 338 
 
 President Goodwyn's Report, 1844 . 493 
 
 Resolutions by Board of Directors of, refusing to expose pri- 
 vate accounts 580 
 
 Contingent expense account of _-,_,. .,^, 505, 516, 529 
 
 List of Committees to investigate .. 90 
 
 Their Reports — 
 
 1841.... -.254,259,260 
 
 1843 285 
 
 1845 302 
 
 1847 338 
 
 1831 
 
 172 
 
 1833..- 
 
 .-..183 
 
 1835.-.. 
 
 ..--186 
 
 1839 
 
 .-..214 
 
 Annual balance sheets of — 
 
 1821 119 1843 _- 476 
 
 1833 183 1844 485 
 
 1835- _ 187 1845. 303, 500 
 
 1837 192 1846 _ 513 
 
 J84U,.257, 460 1847 ,-.--..340,526 
 
 1842 467 
 
 See Banks, Branch; Officers of Brandies; Presidents cf 
 Branches. 
 BANK, BRANCH AT GEORGETOWN. 
 
 Authorized ^^..^^ 13 
 
 List of Committees to investigate 91' 
 
 Their Reports 174, 184 
 
 Annual balance sheets of ---^^ 118, 175 
 
 Discontinued, and Agency substituted^ -^ 38 
 
728 INDEX. 
 
 BANK, BKANCH AT GEORGETOWN— (Continued.) 
 
 President of Bank to report as to Agency 83 
 
 Balance due by Agency 292 540 
 
 See Presidents of BrancJies ; Officers of Branches; Banks^ 
 Branch. 
 BANKS (BEANCH.) 
 
 Presidents and Cashiers of, may sign bills of and under ten dol- 
 lars.. _ 16, 53 
 
 Officers of, exempt from jury and militia duty 11, 17, 53 
 
 Oath of officers of-,. .,- 35, 38 
 
 BANK OF CHARLESTON. 
 
 Bonus from, how applied , 48 
 
 Remarks of Investigating Committee on purchase of stock in, 
 
 by Bank of the State 201 
 
 BANK OF CHERAW. 
 
 $5,180 lost by, to be credited to Bank.. 36 
 
 BANK, (PLANTERS' ANP MECHANICS'.) 
 
 Shares in, transferrred to Bank of the State 1, 9 
 
 Sales of stock in 120 
 
 BANK OF SOUTH CAROLINA. 
 
 Its charter amended, under Act to provide against the suspen- 
 sion of specie payments by the Banks of this State 61 
 
 BANK (STATE.) 
 
 Shares in, transferred to Bank of the State ._, 1, 9 
 
 Public money in, transferred to Bank of the State 9 
 
 Stock in, to be sold 36 
 
 Its charter amended under Act to provide against the suspen- 
 sion of specie payments by the Banks of this State ^ 61 
 
 BANK OF UNITED STATES, AT CHARLESTON. 
 
 President Elliott's remarks on 387 
 
 « Colcock's « 412 
 
 BANKS. 
 
 Incorporated in the State, may make loans on negotiable paper 
 
 not exceeding twelve months., 14 
 
 May invest half as much as their original capital in stocks of 
 
 the United States or of this State . 15 
 
 Not to pay cut bills except on security 20 
 
 To furnish witnesses at trial of counterfeiters 21 
 
 Provisions in case of suspension of specie payments by 53, 61 
 
 Comptroller to publish their monthly statements 88 
 
 To have said statements condensed, at end of year, and report 
 
 the same to the Legislature 88 
 
 Statement of salaries of officers of, 1829^-^---- 161 
 
 ^^ « « 1841 ...---. 244 
 
INDEX. 729 
 
 BANK ESTATE. 
 
 Remarks of Investigating Committee on purchase of 203 
 
 Statement of. 212, 242, 270 
 
 BARING, BROTHERS & CO. 
 
 Extracts of letters from, in regard to State Stocks 639 
 
 Their letter in regard to effect of winding up the Bank, on the 
 
 credit and character of the State abroad 657 
 
 Clauses of Fire Loan Act, referred to by them 665 
 
 BATES, MR. 
 
 Note from, in regard to purchase of State Stocks 639 
 
 BENNETT, THOS. 
 
 Hisreport, 1830 407 
 
 BILLS OR NOTES. 
 
 May be issued by Bank, not under one dollar 4 
 
 How assignable 6 
 
 Receivable for Taxes, &c 8 
 
 No other Bank to issue any under $5 10, 14 
 
 Under one dollar, may be issued by Bank 12 
 
 And by no person, company, or other corporation 14 
 
 Under $5, not to be issued after 1st January, 1818 14 
 
 When cut, not to be paid, except on security , 20 
 
 None under one dollar to be issued . 38 
 
 Of 25 and 50, cents maybe issued, for one year 39 
 
 Of two dollars and under, may be signed by a Clerk 40 
 
 Of ten dollars and under, may be signed by Presidents and 
 
 Cashiers [of Branches 53 
 
 Quantity under $5 in circulation, to be reported 88 
 
 Statement of issues of-__ 153, 206, 272, 334, 531 
 
 Remarks on issue of small bills ^, 195 
 
 Probable amount of profit by loss and destruction of 332 
 
 Amount of change bills issued 337 
 
 Statement of, payable at Columbia 338 
 
 BILLS OF CREDIT. 
 
 Not to be issued by any corporation » 12 
 
 BILLS OF EXCHANGE. 
 
 The Bank may discount 2 
 
 " " " negotiate foreign 7 
 
 BOND. 
 
 Of Officers of Bank _- _ 3 
 
 BONDED DEBT. 
 
 Schedules of ..-_ '. 53,247 
 
 Remarks of Investigating Committee on 228 
 
730 INDEX. 
 
 BONDED DEBT— (Contiimed ) 
 
 Reports of President concerning 446536 
 
 Table of, 1814 to 1847 _ 532 
 
 BOOK KEEPER. 
 
 His salary and duties 161, 167 
 
 BUILDINGS. 
 
 Erected by borrowers of Fire Loan, to be of brick or stone- .43, 65 
 Wooden, declared a nuisance, &c.._ 44^ 66 
 
 BUTLER. 
 
 His commission to G. McDuffie, as agent to negotiate Fire'Loan 665 
 
 CAMDEN. Sec Bank, Branch at. 
 
 CAPITAL OF THE BANK. 
 
 Of what to consist... _ I, 7, 10, 17, 19, 40 
 
 Pledged for payment of interest and principal of money bor- 
 rowed by the State 19, 22, 24,40, 45, 50 
 
 Fire Loan to become part of 40 
 
 Statements of- 97, 205, 239, 240, 281,531, 712, 714 
 
 CASHIER. 
 
 To be elected, and may be removed, by President and Directors 2 
 
 His bond and oath . 3^ 4 
 
 To sign notes issued by the corporation 4 
 
 Exempt from Jury and Militia duty 11^ 17, 53 
 
 His salary 161 
 
 His duties regulated 164 
 
 CASHIER (DEPUTY) 12,35, 161, 166 
 
 CASHIERS OF BRANCHES. 
 
 To sign bills of and under $10 ._ 16, 53 
 
 Exempt from Militia and Jury duty 17,53 
 
 CERTIFICATES OF STOCK. 
 
 To be issued by Treasurer of Lower Division 7, 18, 21, 24 
 
 Form of; to be countersigned by Comptroller 18, 21, 24 
 
 CHANGE BILLS. 
 
 Statement of issues of . 337 
 
 CHARLESTON. 
 
 The Bank to be located at 5 
 
 Cit}^ Council of, to call in their bills of credit 12 
 
 Re-building of, provided for _. 40 
 
 City Council to guaranty the State against loss on loans to 
 
 builders 43, 55, 56, 59 
 
 To prescribe how buildings shall be erected, and to remove 
 
 wooden buildings from burnt district 43, 44 
 
 Ordinances in relation to Fire Loan 65, 67, 68, 69 
 
 Rules and regulations by Council in relation to Fire Loan , _ . . 70 
 
INDEX. 731 
 
 CHARTER. 
 
 Of any corporation hereafter established, subject to amend- 
 ment or repeal by the Legislature 56 
 
 CHERAW. 
 
 Branch Bank authorized at (not acted on) 23, 36 
 
 Committee to inspect Agency at 92 
 
 CIRCULATION. 
 
 Of the Bank, discussed _ 327, 456, 561, 687 
 
 Table of, from 1814 to 1847 _._.-. 531 
 
 CLERK (COLLECTION.) 
 
 His salary and duties 161, 168 
 
 CLERK (DISCOUNT.) 
 
 His salary and duties 161, 168 
 
 CLERKS OF COURT 8, 10, 14, 15, 16, 17,76 
 
 COLCOCK, President C. J. 
 
 His annual Reports 410 to 437 
 
 His remarks on the U. S. Branch Bank — 412 
 
 " " on the bonded debt of the Bank 426 
 
 COLLECTION. 
 
 Of debts to Bank, discussed 322, 457, 473 509, 522 
 
 COLUMBIA. See Bank^ Branch at. 
 COMMISSIONERS. 
 
 To be appointed in each District to value land oflfered on mort- 
 gage to Bank 8 
 
 How to be paid . 11 
 
 Under Fire Loan..- _ 41, 42, 46, 83 
 
 To represent State in Louisville, Cincinnati and Charleston 
 
 Rail Road Company _» _ 48, 50 
 
 COMMISSIONERS IN EQUITY. 
 
 Of Charleston, Georgetown and Richland, to furnish monthly 
 
 statements to the Bank, of monies officially received 15 
 
 This provision repealed 52 
 
 Of each District in which there is a Branch of the Bank, to de- 
 posit therein all monies officially received 52 
 
 Of all other Districts, how to deposit and account. _. ^. 52 
 
 COMMITTEES OF FINANCE AND BANKS. 
 Their Reports — 
 
 1833. On debt due to Bank by Columbia Female Academy 612 
 
 1839. On exhibiting the indebtedness of the officers of the Bank 613 
 1841. On the application of the L. C. & C. R. R. Co. to be allow- 
 ed to cancel certain bonds payable in London, and to sub- 
 stitute others, payable in Charleston 613 
 
 1847. On Resolutions relative to the purchase of Fire Loan and 
 
 Rail Road bonds in Europe, by the Bank 614 
 
 " On the monthly statements of the Banks gg 
 
 I 
 
732 INDEX. 
 
 COMMITTEES OF INVESTIGATION. 
 
 To be appointed, on application of Comptroller 11 
 
 To be appointed, at first Session of every new Legislature, to 
 inspect principal Bank and Branches, and report. _23, 24, 74, 77 
 
 Their appointment recommended by President Elliott 401 
 
 Appointed 75, 78, 80, 84 
 
 List of. - 90 
 
 Their Reports — 
 
 For the year 1820.-_ 93 
 
 1821— Senate 95 
 
 House 119 
 
 1825 126 
 
 1827 __ ..-_ 141 
 
 1829 _ 158 
 
 1831 --_ _.. -- _- 170 
 
 1833 175 
 
 1835 ___ 185 
 
 1837— Senate. __- 187 
 
 House 190 
 
 1839 - -- 193 
 
 1841 _ - 218 
 
 1843... _ _. 263 
 
 1845 289 
 
 1847 - 309 
 
 COLUMBIA: 1831. -_ 172 
 
 1833 _ 183 
 
 1835__- - --- 186 
 
 1837 192 
 
 1839 - 214 
 
 1841--_ 254 
 
 2dIleport...- __- 259 
 
 3d " - 260 
 
 1843 285 
 
 1845. — _ -.. 302 
 
 1847._. .- -... - 338 
 
 CAMDEN. 1831 172 
 
 1833 183 
 
 1837 - 192 
 
 1839 217 
 
 1841 262 
 
 1843.__ 287 
 
 1845 307 
 
 1847 341 
 
INDEX. 733 
 
 COMMITTEES OF INVESTlGATION~(CoiitiLmed.) 
 
 GEORGETOWN. 1831 174 
 
 1833 184 
 
 COMMITTEES OF NOMINATION 
 
 Of President and Directors of the Bank, to be appointed at 
 
 each Session of Legislature i .._-..___ . 75 
 
 Committee of Investigation to form part of Committee of no- 
 mination - 76 
 
 COMMITTEES, (SPECIAL.)— Reports of. 
 
 1844. Concerning debts of incorporated and Manufacturing Com- 
 
 panies . 643 
 
 1846. Concerning the Nesbit Manufacturing Company 644 
 
 " On Resolutions in regard to abolishing the Bank — publish- 
 ing the names of ■ debtors, &c 646 
 
 COMMITTEES, OF WAYS AND MEANS, 
 Their Reports — 
 
 1817. As to Branch Bank at Camden 73 
 
 " Approving of the management of the Bank 586 
 
 1820. As to small bills.-., « 
 
 1821. On the report of the President of the Bank '^^ 
 
 1823. On certificates of stock being countersigned by ^Comptroller 587 
 " On increasing the capital of the Bank, &c. &c " 
 
 1824. On the report of the President of the Bank 588 
 
 1829. " " " " --- « 
 
 1830. On the Bank and the public Debt ^ 589 
 
 1831. « " " " " 593 
 
 1833. " '' " " " __. -,..600 
 
 1835. " " « " " " -- 601 
 
 1838. On the Banks and currency 602 
 
 1840. On the bonded debt _.__ __.L 603 
 
 1841. On the Banks, their suspension; and measures proposed 
 
 against them __ 603 
 
 1843. On the Bank, and the policy to be pursued in purchasing 
 
 the public debt _ ,_._ 607 
 
 1 845. On the debt of the S. C. R. R. Company to the State 610 
 
 " On the application to be made of the dividends of the S. 
 
 C. RailRoad Company ^-. __ — _.. " 
 
 1847. On arranging for the payment of the public debt in smaller 
 
 instalments — '-- 611 
 
 COMPTROLLER. 
 
 To inspect general statement of the aflfairs of Bank, and re- 
 port to Legislature -■ 6 
 
 93 
 
734 INDEX. 
 
 COMPTROLLER— (Continued.) 
 
 To transfer to Bank all sums received as principal or interest 
 
 of debt due by United States 10 
 
 To transfer to Bank balance in Treasury on 2d April of every 
 
 year »-- 10 
 
 This provision repealed - 17 
 
 And re-enacted 19 
 
 To be furnished with statements of the affairs of the Bank. — 
 Authorized to inspect the books of the Bank, except private 
 accounts — to report annually to Legislature — to apply, 
 when necessary, for appointment of Committees of Exami- 
 nation - II 
 
 Not to be a Director, nor hold any office under the Bank 11 
 
 May examine books of the Bank, except the personal ledger. 15 
 
 To countersign certificates of stock 19, 22, 24, 40, 64 
 
 To report to Legislature amount of stock sold 19, 22 
 
 To withhold salaries of Attorney General and Solicitors fail- 
 
 . ingto make returns of business of Bank 21 
 
 To report amount of 5 per cent, stock sold 22 
 
 No longer to countersign transfers of 5 and 6 per cent, stocks. 23 
 
 To aid Committees to inspect Bank 23 
 
 To have full power to examine books, accounts, &c 24 
 
 To call on Bank for payment of instalments on subscription 
 
 of State to L. C. & C. R. R. Company 38 
 
 To receive surplus revenue from United States and deposit it 
 
 in Bank 39 
 
 To aid Governor in negotiating Fire Loan 40 
 
 To pay instalments on subscription of the State to the South 
 
 Western R. R. Bank _ 47 
 
 To issue 200,000 of stock if necessary 48 
 
 Toissue 600,000 of stock 49 
 
 Monthly returns of Banks to be made to, and published by. _ 54 
 To collect penalty, and to have power to examine books of 
 
 Banks ^--.- 55 
 
 With balance in Treasury, to purchase State Stock. _56, 62, 63, 64 
 
 To cancel evidences of public debt . 60 
 
 To transfer to sinking fund $200,000, now to credit of surplus 
 
 revenue of United States . 60 
 
 On payment of instalments due 1st January, 1848, on stock 
 issued by the State, under Act to provide for an advance on 
 subscription to Rail Road, to cause old certificates to be 
 
 surrendered and new ones issued ^ 6i 
 
 To negotiate loan to pay direct tax to United States. 73 
 
 To report to Legislature the debits and credits of the State 76 
 
INDEX. 735 
 
 COMPTROLLER— (Continued.) 
 
 To cancel certain "bonds of the L. C. & C. R. R. Company, 
 payable in London, and to substitute others payable in 
 
 Charleston 81 
 
 Special reports of, to be printed and bound with Acts of Le- 
 gislature -- __ 85 
 
 To apply dividends from S. C. R. R. Company to purchase of 
 
 public debt — __ __ — ___ 86 
 
 To publish the monthly statements rendered by the Banks. _ 88 
 To have said statements condensed, at end of year, and report 
 
 the same to Legislature 88 
 
 Directed to report to Senate sundry particulars, as to capital 
 of Bank — payments of public debt made by Bank — the 
 
 profits of the Bank, &c. &c 88 
 
 Extracts from his Reports, 1813 to 1841 668 to 680 
 
 " " " " 1843. -_ 705 
 
 '• " " « 1844. 1845, 1846, 1847.. _. 707 to 711 
 
 His Report, 1830 ._ 681 
 
 " " 1831 : 686 
 
 " " 1824— On Removal of the Bank 695 
 
 " " 1843 — In answer to call for information as to 
 
 finances of the State — His opinion on the 
 
 question of winding up the Bank 705 
 
 " " 1 847 — In answer to call from Senate, as to amounts 
 
 paid to and paid by the Bank .. _ 712 
 
 His statement of the Debits and Credits of the State, 1847 715 
 
 COLUMBIA FEMALE ACADEMY. 
 
 $2861 89, released to, by Legislature, ordered to be restored 
 
 to capital of Bank 53, 612 
 
 COMPILATION. 
 
 Of Bank documents, directed 81,82, 86 
 
 CONNOR, H. W. 
 
 His letter to President Elmore, in regard to purchase of State 
 
 Bonds 616 
 
 CONTINGENT EXPENSE ACCOUNT. 
 
 Of Principal Bank 245, 491, 492, 504,516, 529 
 
 Of Columbia Branch _ 505,516, 529 
 
 Of Camden Branch 505,517, 530 
 
 CORPORATIONS. 
 
 President to report as to loans to 83 
 
 His Report 539 
 
 Charters hereafter granted to, subject to alteration or repeal 
 by the Legislature 56 
 
736 INDEX. 
 
 COUNTERFEITING. 
 
 Witnesses to be furnished by Bants on trial of counterfeitors, 22 
 CUIIBENCY. . 
 
 President Elliott's remarks on : 350 et seq. 
 
 " Elmore's " " 449 
 
 DEBITS AND CREDITS OF THE STATE. 
 
 Statementof, 1836 _ 677 
 
 « " 1841 343 
 
 " " 1842 __ 284 
 
 " '. « 1847 - 715 
 
 DEBTS OF THE BANK. 
 
 Not to exceed twice its capital 2 
 
 DEPOSITS. 
 
 Certain Public Officers to deposit funds of their offices in the 
 
 Bank._-__ 8,9, 10, 17,48,52 
 
 Unclaimed for two years, to be reported to the Legislature 88 
 
 In 1839, 18-40, 1841 243 
 
 Table of, 1814 to 1847.-- -- . 531 
 
 DEFAULTERS. 
 
 . To be proceeded against by Attorney General and Solicitors. _ 1 6 
 
 Under Fire Loan 58 
 
 DIRECTORS. See President and Directors. 
 DIRECT TAX, OF U. S. 
 
 $91,143 28, saved to the State, by the Bank's advancing it.. . 96 
 DISCOUNTS. 
 
 Tablp of monthly, 1813 to 1829 113, 137, 157, 163 
 
 «'- " annual, 1814 to 1847.- - __ 532 
 
 DORCHESTER. 
 
 Free School at . 22 
 
 ELLIOTT, PRESIDENT. 
 
 His Reports, 1813.- _-. 343 1821 97, 393 
 
 1814 346 1822 400 
 
 1815---. 347 1823 400 
 
 1816 348 1825 134, 138 
 
 1817 348 1826 -_ 402 
 
 1818-.-. 349 1827 . 153, 402 
 
 1819 -350 1829 102 
 
 1820 392 
 
 His views on currency, &c _ 350 et seq. 
 
 « « « theU. S. Branch Bank 387 " 
 
 " " " admitting private Stockholders into the Bank- - 394 
 
 " ^' <^ the advantages of the Bank in time of war 396 
 
 « " « the removal of the Bank -.580 
 
INDEX. - 737 
 
 ELIGIBILITY. 
 
 Of President or Directors.-- _*- ^.3, 73 
 
 ELMORE, PRESIDENT F. H. 
 
 His Introduction to this compilation .' xii 
 
 " Reports— 1840 442 
 
 " " 1841 : 453 
 
 " " 1842 463 
 
 " , " 1843 470 
 
 « " 1844 . 479 
 
 " " 1845 - 495 
 
 " " 1846 .. 506 
 
 " " 1847 -. 522 
 
 " " concerning salaries of Solicitors 535 
 
 " " " bonded debt... 536 
 
 " " " debts due to Bank by Corporations and 
 
 by Hamburg and Georgetown Agencies. 539 
 
 " " " Fire Loan borrowers 544 
 
 " " in answer to Gov. Hammond's Message _ 549 
 
 " " in answer to a Resolution requiring the President 
 
 to report losses before 1843 573 
 
 " letter to H. W. Conner, President of Bank of Charleston, 
 
 in regard to purchase of State bonds. _- 616 
 
 " " to Gen. Jas. Hamilton, in regard to purchasing State 
 
 Stocks in Europe 619 
 
 " " to Leon Herckenrath, on the same subject 619, 625 
 
 " " to Hambro & Son, on the same 
 
 subject 626,627, 631,633, 637, 653 
 
 " " to Hambro & Son, enquiring as to the effect of abolish- 
 ing the BankjOn the credit and character of the State, abroad. 652 
 
 " " to Baring, Brothers & Co. on same subject 655 657 
 
 " " to Hon. E. Everett, on same subject 658- 
 
 " " to Hon. G. McDuffie, on same subject 660 
 
 " statement of heavy payments made by the Bank in 1840. _ 443 
 
 " " as to the Nesbit M. Co.-- 510 
 
 " remarks on the currency, 1840 449 
 
 " " on the benefits of the Bank and its future operations. 454 
 
 " " on its circulation 456 
 
 « " on collection of debts 457, 473, 509 522 
 
 " " on loans on Bead and Mortgage — .._ 470 
 
 ^' " on comparative safety of loans on real estate, and on 
 
 business paper 471 
 
 " " on purchase of State Stocks by Bank 472 
 
 « « on the policy pursued by the Bank, as to purchasing 
 
 the Public Debt _- 480 
 
 I 
 

 738 INDEX. 
 
 # 
 ELMORE, PRESIDENT F. H. (Continued.) 
 
 His view of the effect of requiring the Bank to purchase 500,000 
 
 of the State Stocks annually 553 
 
 Or of buying the stocks of other States 553 
 
 Or of establishing a new Sinking Fund, to be placed 
 
 in the hands of Commissioners . 554 
 
 of the ability of the Bank to pay the Public Debt. 555, 559 
 of the practical effects of closing the Bank, on the 
 
 fiscal operations of the Treasury 556 
 
 " " as io policy of the estabhshment of the Bank 562 
 
 " " of its constitutionality 565 
 
 " " of effect of abolishing the Bank on the credit of the 
 
 State 565 
 
 " " of effect of exposing the accounts of individuals. . 572 
 EVERETT, HON. E. 
 
 His letter to President Elmore, in regard to effect of abolishing 
 
 the Bank on the credit and character of the State abroad 660 
 
 EVIDENCE. 
 
 Protest of Notary to be received as 20 
 
 FAITH OF THE STATE. 
 
 Pledged 1, 19, 22, 24, 40, 50 
 
 FEES. 
 
 Of Public Officers, for searches and certificates for applicants 
 
 forFire Loan 46 
 
 FELDER, Hon. J. M. 
 
 Resolutions offered by him concerning the Bank, 1847 614 
 
 FINANCE AND BANKS. See Committees on Finance and Banks. 
 FIRE LOAN. 
 
 Provision for borrowing $2,000,000 40 
 
 To be part of capital of Bank 40 
 
 Bank to provide for payment of interest and principal 45 
 
 Faith and funds of the State, and profits of Bank, pledged for 
 
 payment of interest and principal 40, 45 
 
 Views of Messrs Baring on this point ^, 657 
 
 « " Hambro" " " . 654 
 
 « « Gen. McDuffie « " " 661 
 
 « « Amb. Everett " " " 660 
 
 " « President of Bank " " " 566 
 
 Report and Resolutions of Senate " " " 651,652 
 
 Bank to keep separate account of._,^ 45 
 
 Time of Loans extended _ 51, 55, 57 
 
 Ordinances of City Council in relation to 65, 67, 68, 69 
 
INDEX. 739 
 
 FIRE LOAN.— (Continued.) 
 
 Sterling bonds to amount of £233,000 sold 208, 249, 279 
 
 To amount of £217,000 recalled and cancelled, and State stock 
 
 issued in lieu thereof- 249,279,447, 550 
 
 Statement of sales of bonds _-, 208, 249,279 
 
 Statement of interest on, &c 251 
 
 Mr. McDuffie's publication in London on negotiating 662 
 
 Form of bonds of 666 
 
 " " coupons of 667 
 
 " " endorsement by President of Bank 667 
 
 Letter of President of Bank to Committee of Ways and Means, 
 
 concerning 544 
 
 FURMAN, C. M. CASHIER. 
 
 His letter to Pres. Elmore, in regard to purchases of State . 
 
 stock in Europe 617 
 
 GEORGIA R. R. AND BANKING CO. 
 
 Loan to 294 
 
 Opinion of Attorney General as to 800 
 
 GIST, HON. W. H. 
 
 His Resolution concerning the Bank, 1847 614 
 
 GOODWIN, R. H. 
 
 His Report as President of Columbia Branch 493. 
 
 GOVERNOR. 
 
 To issue bonds for $2,000,000 to re-build Charleston _ . 40? 
 
 His duty under Act to provide against the suspension of specie 
 
 payments by the Banks of this State . 55, 61 
 
 GUARANTY. 
 
 Of City of Charleston __ 43,55,56 
 
 HAMBURG. 
 
 Branch Bank authorized at 34 
 
 Agency at. President to report as to 83 
 
 Committee to inspect Agency at 92 
 
 Balance due by Agency at 292, 539 
 
 HAMBRO & SON, 
 
 Extract from articles of agreement with, as agents of the Bank 624 
 Their letters in regard to purchasing State Stocks in London, 622 
 625, 627, 628, 629, 630, 631, 632, 633, 634, 635, 636, 637, 638^ 
 641,662. 
 Their letter as to effect of abolishing the Bank, on the credit 
 
 and character of the State abroad 654 
 
 HAMMOND, GOV. 
 
 His Message, proposing to wind up the Bank 716 
 
 HERCKENRATH, LEON. 
 
 His letters to President Elmore, in regard to purchasing S^te 
 Stocks in Europe 621,623, 629 
 
710 INDEX. 
 
 INSURANCE. 
 
 Of buildings erected with fire loan __ 42, 46, 57 
 
 INTEREST. 
 
 On loans made by the Bank ^ 2 
 
 On loans to rebuild Charleston, prescribed 43 
 
 Table of, on capital of Bank 531 
 
 " " amount of, paid by Bank on the public debt 534, 714 
 
 Annual, on Fire Loan ____ 251 
 
 " "PublicDebt. 534 
 
 ISSUES OF THE BANK. 
 
 Table of, 1814 to 1847 531 
 
 JUDGMENT. 
 
 Table of amounts of Bonds and Notes in suit and 532 
 
 JURY DUTY. 
 
 Ofiicers of Bank exempted from _' 17, 53 
 
 LEGISLATURE. 
 
 Minutes of Directors to be produced to 3 
 
 Gi-eneral statement of afi'airs of Bank to be furnished to 6 
 
 Comptroller General to report to, any violation of its charter 
 by the Bank 7 
 
 To dispose of the income of the Bank ,_ 7 
 
 To elect, annually. President and Directors 10 
 
 Comptroller General to report to, annually, in regard to the 
 Bank ./.._-._ 11 
 
 To appoint, at first session of each. Committees to inspect 
 Bank and Branches 23, 74,77 
 
 President of Bank to report to, at each session, the accounts of 
 salaried ofl&cers of Bank and Branches 35 
 
 President and Directors to report to, annually, the state of the 
 Fire Loan Fund 45 
 
 To appoint, annually, five Commissioners, to represent the 
 State at meetings of the L. C. & C. R. R. Company and S. 
 W. R. R. Bank . 50 
 
 May examine books of S. W. R. R. Bank 51 
 
 May alter or repeal charters hereafter granted 56 
 
 Either House of, may call on Bank or Branches for informa- 
 tion, except as to accounts of private individuals, bodies poli- 
 tic or corporate _ 60 
 
 Member of, not to be Bank Director 73 
 
 LIMESTONE SPRINGS COMPANY. 
 
 Debt of, to Bank 541 
 
 LOANS. 
 
 By Bank, how to be made and called in _ 2 
 
 To the State. See Fuhlic Debt, Stocks. 
 
INDEX. 741 
 
 LOUISVILLE, CINCINNATI & CHARLESTON R. R. CO. 
 
 Payments of instalments on subscription by the State, provi- 
 ded for 38, 47 
 
 Provision made for advance of the State's subscription of 
 
 $600,000--. 49 
 
 Provisions for payment of interest, &c 49 
 
 Commissioners to be appointed annually, to represent the State 
 
 at meetings of 50 
 
 Allowed to cancel certain bonds payable in London, and to 
 
 substitute others payable in Charleston 81 
 
 Debt of, to Bank 540,551 
 
 Purchases of bonds of, in London , 615 to 642 
 
 See South Carolina Rail Road Comjmny. 
 
 LUXEMBURG. 
 
 Stock provided to meet claim of, to be deposited in Bank 1 
 
 MASTER IN EQUITY. 
 
 Of Charleston _ __--8, 10,15,52 
 
 McDUFFIE, GOV. 
 
 Error in his account corrected _.. 47 
 
 President Elmore's letter to, enquiring as to terms on which 
 
 he negotiated Fire Loan 572 
 
 His answer 661 
 
 His publication in London, on negotiating the Fire Loan 662 
 
 His commission as agent to negotiate Fire Loan 665, 666 
 
 MILITIA DUTY. 
 
 Officers of Bank and Branches exempt from 11, 17, 53 
 
 MORTGAGE. 
 
 Loans to be made on security of 2 
 
 Terms and conditions thereof _ 2 
 
 Property offered for, how to be valued 4, 8 
 
 Form of 5 
 
 To be considered as of record from date 5 
 
 Money loaned on, to be apportioned among the Districts 5 
 
 Property under, how to be sold 9, 58 
 
 Commissioners to value property offered for, how to be paid 11 
 
 Under Fire Loan 41,43, 46 
 
 Amount that may be loaned on, extended to $10,000 76 
 
 Remarks of Investigating Committees, on loans on 199, 228 
 
 NESBIT MANUFACTURING COMPANY. 85, 297, 510, 541 
 
 NOTARY OF BANK. 
 
 His duties 169 
 
 NOTARY PUBLIC. 
 
 When dead, his protest to be evidence 20 
 
 94 
 
742 INDEX. 
 
 OATH. 
 
 Of officers of Bank _-- __ 4,85,38 
 
 OFFICERS.— See Public Officers, Officers of Bank. 
 OFFICERS OF BANK. 
 
 To be appointed by Directors 2 
 
 To give bond 3 
 
 To take oath 4, 35, 38 
 
 Not to be concerned in usury 6 
 
 Exempted from Militia and Jury duty 11, 17, 53 
 
 President to lay their accounts before Legislature 35 
 
 President to state, in an annual private report, the indebtedness 
 
 of the Directors 79 
 
 An additional officer authorized 35 
 
 Not to deal in Stocks of the State 36 
 
 Their number, salaries, &c. to be reported 78, 80 
 
 Rules for government of • 164 
 
 See President of Bank ; Presidents of Banches. 
 OFFICERS OF BRANCHES. 
 
 Exempt from Militia and Jury duty i IJ, 17, 53 
 
 Oath of 35, 38 
 
 See Presidents of Branches, Officers of Bank. 
 ORDINANCES. 
 
 Of City Council of Charleston, in relation to Fire Loan, 65, 67, 08, 69 
 PAPER MEDIUM LOAN OFFICE. 
 
 Bonds of, to be called in 13 
 
 PLEDGE. 
 
 Faith and funds of the State, and capital and profits of the 
 Bank, pledged for payment of interest and principal of the 
 
 public debt.. --19, 22, 24, 40,45, 50, 86,651, 662, 667 
 
 PORTER. 
 
 His salary and duties 161, 169 
 
 PRESIDENT AND DIRECTORS. 
 
 To elect, and may remove, Cashier 2 
 
 To appoint officers, clerks and servants, and fix their compen- 
 sation 2 
 
 To receive money on deposit 2 
 
 To discount bills of exchange and notes, and make loans se- 
 cured by mortgage 2 
 
 How to call in loans 2 
 
 If Bank shall owe more than twice its capital, liable in their 
 
 private capacities for the excess 2 
 
 To be elected by joint ballot of the Legislature 3, 10 
 
 Vacancies, how filled _ 3. n 
 
INDEX. 743 
 
 PRESIDENT AND DIRECTORS— (Continued.) 
 
 Who ineligible , 3 
 
 How many a quorum 3 
 
 To keep minutes of their proceedings 3 
 
 Yeas and nays may 1)0 demanded 3 
 
 Oath of-.- 4, 34 
 
 To issue notes, signed by President and Cashier -__ 4 
 
 General powers conferred 4 
 
 Their duty as to mortgages 4, 5 
 
 To establish Branch Bank at Columbia, appoint officers there- 
 of, <S:c 5 
 
 Not to be concerned in usury 6 
 
 May sell out stock belonging to the State in other Banks 7 
 
 May negotiate foreign bills of exchange 7 
 
 To issue $300,000 worth of 6 per cent, stock of the State 7 
 
 To appoint Commissioners in each District to value lands of- 
 fered on mortgage 8 
 
 May borrow, not exceeding $300,000, on the credit of the State 9 
 
 To call on Treasurer for certain certificates, monies, bonds, &c. 9 
 
 Two-thirds of, may expel a Director 10 
 
 May fill vacancies 11 
 
 Legislature failing to elect, those then in office to continue 12 
 
 May issue bills under one dollar ___ 12 
 
 May elect Deputy Cashier 12 
 
 To sell $800,000 of 6 percent, stock 18 
 
 To use annual profits of Bank for purchase of said stock 19 
 
 How to manage Sinking Fund 20 
 
 To sell $200,000 of 5 per cent stock. __ 21 
 
 « 250,000 " " " 24 
 
 « 300,000 " " " 25 
 
 To purchase the stock of the State, at their discretion 25 
 
 May establish Branch at Hamburg 34 
 
 To take their seats immediately upon being elected 34 
 
 May appoint an additional officer , 35 
 
 May sell stock in the State Bank, and purchase other, 36 
 
 May appoint an agent at New York 36 
 
 To sell $300,000 of 5 per cent, stock. _ _ 37 
 
 May issue change bills of 25 and 50 cents 39 
 
 May have bills of $2 and under. signed by a clerk 1. 40 
 
 To appoint agent to negotiate loan for re-building Charleston.. 40 
 
 How to loan the money to builders _ 41, 46 
 
 To make provision for payment of principal and interest of 
 
 Fire Loan ,. 45 
 
744 
 
 INDEX 
 
 PRESIDENT AND DIRECTORS— (Continued.) 
 
 To keep separate account of Fire Loan, and report annually 
 
 to Legislature 45 
 
 May cause bills of and under $10 to be signed by Presidents 
 
 and Cashiers of Branches 53 
 
 May establish Agencies 53 
 
 To deliver evidences of public debt to Comptroller to be can- 
 celled 60 
 
 To pay debt of $300,000, created by Act of 1 826 60 
 
 To appoint Assayer annually 62 
 
 Director of Bank not eligible to Legislature . -73 
 
 Committee to nominate, to be appointed at each session of Le- 
 gislature 75 
 
 Committee of Investigation to form part of Committee of 
 
 Nomination _ 76 
 
 To take measures to preserve at par, the bills of the Banks in 
 
 the State ._ 79 
 
 Their indebtedness to the Bank, to be stated to Legislature, 
 
 annually, in a private report, by the President 79 
 
 To call in the bonded debt 80 
 
 Not to indorse for each other 82 
 
 Additional particulars directed to be included in their annual 
 
 reports 84 
 
 Directed to call in funds of Bank and purchase public debt. _ 84 
 
 And report annually thereon 85 
 
 Directed to endeavor to arrange for the payment of public debt 
 
 in smaller instalments 88 
 
 To report quantity of bills under $5 in circulation 88 
 
 To report deposits unclaimed for two years 88 
 
 As to Directors borrowing from the Bank 310 
 
 As to the exhibition to the Legislature of their private ac- 
 counts with the Bank 320 
 
 Their Reports — 
 For the year 1813, Elliott--. 343 1823, « 400 
 
 1814, " 346 1826, " 402 
 
 1815, « 347 1827, " 402 
 
 1816, " 348 1830, Bennett.. 407 
 
 1817, " 348 1831, Colcock.. 410 
 
 1818, " 349 1832, " _. 417 
 
 1819, " 350 1833, " ... 419 
 
 1820, " 392 1834, " ... 422 
 
 1821, « 393 1835, " ... 426 
 
 1822, « 400 1836, " ... 429 
 
INDEX. 745 
 
 PRESIDENT AND DIRECTOKS— (Coutiimed.) 
 
 1837, " --- 431 1843, " .-. 470 
 
 1838, " --- 435 1844, " ...4479 
 
 1839, Rose _-. 438 1845, " ... 495 
 
 1840, Elmore.-- 412 1846, " ... 506 
 
 1841, " ... 453 1847, " ... 522 
 
 1842, " --_ 463 
 PRESIDENT OF BANK. 
 
 To be elected by joint ballot of Legislature, annually 3 
 
 His salary 3, 16 
 
 Vacancy, how to be filled 3 
 
 Who eligible 3 
 
 In case of sickness or absence of 3 
 
 To give bond 3 
 
 His oath 4-34 38 
 
 To sign notes issued by the corporation 4 
 
 Exempt from militia and jury duty 1 1, 53 
 
 To direct proceedings against defaulting officers 16 
 
 To countersign transfers of 5 and 6 pr ct. stock 23 
 
 To notify Directors of their election 34 
 
 To lay before the Legislature the accounts of the officers of 
 
 the Bank and Branches . 35 
 
 To attend in Columbia, during sessions of Legislature 75 
 
 Leave of absence granted to . 79 
 
 To state, annually, in a private report, the indebtedness of the 
 
 Directors 79 
 
 To report as to bonded debt 80 
 
 To report debts of Directors of Branches 80 
 
 To have compiled and published all Act«, Resolutions, &c. re- 
 lating to Bank 8 1-82 86 
 
 To report as to debts due by corporations 83 
 
 And as to agencies at Hamburg and Georgetown 83 
 
 To state, in annual private report, the monthly indebtedness 
 
 of Directors 84 
 
 Special reports of, to be printed and bound with Acts of Legis- 
 lature 85 
 
 To furnish the monthly statement of indebtedness of Direc- 
 tors in 1846 \ --_ 86 
 
 Reports of, in answer to special calls — ^ 
 
 1824. On the removal of the Bank. _ 580 
 
 1841. In relation to salaries of Solicitors -- 535 
 
 " On the bonded debt - 536 
 
 " On loans to corporations, and the balances due by the 
 
 Georgetown and Hamburg agencies * 539 
 
746 INDEX. 
 
 PRESIDENT OF BANK (Continued.) 
 
 1842. On the Fire Loan borrowers 544 
 
 ^ 1843. On the payment of the Public Debt, the Sinking Fund, 
 the fiscal operations of the Treasury, &c. (answer to 
 
 Gov. Hammond's Message) 549 
 
 1845. In answer to a Resolution requiring the President of 
 
 the Bank to report losses before 1843 573 
 
 PRESIDENTS OF BRANCHES. 
 
 To direct proceedings against defaulting officers 16 
 
 To sign Bills of and under$10 16, 53 
 
 Exempt from militia and jury duty 17 
 
 To keep minutes of proceedings of their boards 35 
 
 PRESTON, HON W. C. 
 
 Preamble and Resolutions ofi'ered by him at Board of Directors 
 of Columbia Branch, in regard to exposing individual ac- 
 counts 579 
 
 PRIVATE ACCOUNTS. 
 
 With Bank, not to be inspected.... 7, 11, 60, 87 
 
 Committees and Comptroller General to have full power to ex- 
 amine books and accounts 24 
 
 Of Directors, effect of their being exhibited to Legislature, 
 
 discussed 320 
 
 Of individuals by whom losses have been incurred, propriety 
 
 of publishing accounts of 310,573, 647 
 
 Resolutions of Columbia Branch, refusing to expose 579 
 
 PRIVATE STOCKHOLDERS. 
 
 Acts to admit, into the Bank 25, 30 
 
 Repealed 33, 34 
 
 President Elliott's remarks on 394, 403 
 
 PROFITS. 
 
 Of the Bank, pledged for the fulfilment of the engagements of 
 
 the State 19, 22, 24, 40, 45,50, 86 
 
 Amount paid into the Treasury by Bank out of 714 
 
 Table of, 1814 to 1847 532 
 
 PROFIT AND LOSS ACCOUNT. 
 
 Remarks on -- -- 226 
 
 Table of amounts carried to, 1814 to 1847 542 
 
 As to publishing names of individuals by whom losses have 
 been incurred 310, 573, 647 
 
 PROTEST. 
 
 To be evidence, though the Notary be dead 20 
 
 PROTHONOTORY. 8, 10, 15 
 
INDEX. 747 
 
 PROXIES. 
 
 To represent the State in the L. C. and C. R. R. Co. and S. ^V. 
 
 R. R. Bank 48, 50, 86 
 
 PUBLIC DEBT. 
 
 Comptroller to buy up, with balance in Treasury 56, 62, 63, 64 
 
 Evidences of, to be cancelled 60 
 
 President and Directors of Bank directed to call in funds of 
 
 Bank and purchase - 84 
 
 And to endeavor to arrange for payment of, in smaller instal- 
 ments 88 
 
 Dividends from S. C. R. R. Co. to be applied to purchase of. _ 86 
 
 Ability of Bank to pay the 315 
 
 And to do so at earlier periods than now arranged for 316 
 
 Probable operation of Sinking Fund in paying, to 1852 567 
 
 " " of Bauk,to 1870 568 
 
 Table of amount of, paid by Bank, to 1847 534 
 
 Remarks of Investigating Committee, 1841 231 
 
 Reports of Committees of Ways and Means in regard to. 586 et seq. 
 
 Comptroller General's Reports concerning 668 " '' 
 
 " " statement of amount of, paid by Bank 
 
 out of its capital 713 
 
 " '• statement of amount paid by Bank for 
 
 interest on 714 
 
 " " do. for principal of 714 
 
 See Stocks^ Sinki?ig Fund^ Bank of the State. 
 PUBLIC OFFICERS. 
 
 Certain of them to deposit funds of their ofl&ces in Bank, 8, 10, 48,52 
 
 To make payments by checks on Bank 14, 17 
 
 To report monthly to President and Directors all monies re- 
 ceived officially 15 
 
 This provision repealed, as to Master or Commissioner in Equity 52 
 
 To be proceeded against in case of neglect 16 
 
 To deposit in their official names, with titles of the cases under 
 
 which the money was received 76 
 
 See Sheriffs^ Commissioners in Equity^ Maste)- in Equity^ 
 Tax Collectors^ Clerks of Court. 
 QUORUM. 
 
 Of board of Directors 3 
 
 RAIL ROAD AND RAIL ROAD BANK 234 
 
 See South Carolina Canal and Rail Road Company., Louis- 
 ville^ Cincinnati and Charleston Rail Road Company., S. 
 W. Rail Road Bank. 
 
748 , INDEX. 
 
 RANDOLPH, MRS. 
 
 $10,000 worth of 6 per cent Stock to be issued for her benefit. 25 
 REAL ESTATE, owned by Bank. 
 
 Statements of - 213,242,271 
 
 REGULATIONS. 
 
 Rj the Bank, in regard to loans under the Act for rebuilding 
 
 Charleston 71 
 
 REMOVAL, 
 
 Of Bank from Charleston to Columbia, expediency of, enquired 
 
 into 75,580,695 
 
 REPORTS. 
 
 See Committees of Investigation, Committees of Ways and 
 Means, Committees of Finance and Banks, Committees 
 (Special.) Comptroller Genei'al, President and Directors, 
 President of Bank, Elmore, Elliott, Colcock, Bose, Bennett, 
 Goodunjn. 
 REPUDIATION. 
 
 Abolishing the Bank would be, in effect 65 1 
 
 RESOLUTIONS. 
 
 1813. Declaring members of the Legislature not eligible as Di- 
 rectors 73 
 
 " Concerning loan for paying direct tax to the United States. 73 
 
 1817. As to establishing a Branch of the Bank at Camden 73 
 
 1820. Directing joint Committee to be appointed to inspect the 
 
 Bank 74 
 
 " As to increasing the capital of the Bank, and admitting pri- 
 vate stockholders 74 
 
 1823. As to removing the Bank from Charleston to Columbia, and 
 
 establishing Branches at Cheraw and Hamburg 75 
 
 " Directing the President of the Bank to attend at Columbia 
 
 during the sessions of the Legislature 75 
 
 1 824. Appointing Committees of Investigation 75 
 
 1825. Directing a joint committee to be appointed at each session 
 
 to nominate Directors IT^ 
 
 " Concerning loans on mortgage, deposits by public officers, & c. 76 
 " Directing Comptroller General to report the debts and assets 
 
 of the State 76 
 
 1826. Concerning Committees of Investigation 77 
 
 1827. Concerning the debt due to the Bank by Gen. Sumter 77 
 
 1828. Appointing Committees of Investigation ' 78 
 
 " Directing Committees of Investigation to report the number 
 
 and salaries of the officers of the Bank 78 
 
 1831. Giving leave of absence to the President 79 
 
 1834. Giving leave of absence to the President 79 
 
INDEX. 749 
 
 1838. Directing the Bank of the State to endeavor to keep at par 
 
 the bills issued by any Bank within the State 79 
 
 1839. Directing the President to exhibit, in a private report to the 
 
 Legislature, the indebtedness of the Directors. «.- 79 
 
 1840. Concerning the bonded debt 79 
 
 " Directing the President to report the indebtedness of the 
 
 Directors of the Branches 80 
 
 " Appointing Committees of Investigation, who are also to re- 
 port the number, duties and salaries, of the officers of the 
 Bank 80 
 
 1841. Directing President to publish Bank Compilation 81 
 
 " Concerning certain bonds of the Louisville, Cincinnati and 
 
 Charleston Rail Road Company 81 
 
 " Concerning the Bank Compilation 82 
 
 '• That Directors should not endorse for each other 82 
 
 " Concerning the suspension of Specie Payments, &c 82 
 
 " Concerning debts due to the Bank by Corporations, &c 83 
 
 1 842. Concerning the Commissioners under the Act for re-building 
 
 Charleston 83 
 
 " Appointing Committees of Investigation 83 
 
 " Directing the President to report what was the indebtedness 
 of the Directors on the 1 st of each month, and certain de- 
 tails of the profits and expenses of the Bank 84 
 
 1843. As to purchasing the public debt, by the Bank. ■_ 84 
 
 " Directing the Special reports of the President of the Bank 
 
 and Comptroller Greneral to be printed and bound with the 
 
 other reports of the Legislature 85 
 
 i844. Concerning the Nesbit Manufacturing Company 85 
 
 1845. Concerning the South Carolina Rail Road Company 85 
 
 " Directing dividends received from the South Carolina Rail 
 
 Road Company to be applied to the redemption of the pub- 
 lic debt .. 86 
 
 1846. Directing new edition of the Bank Compilation 86 
 
 " Directing President to furnish the monthly statement of the 
 
 indebtedness of the Directors 86 
 
 " As to abolishing the Bank, and exposing the names of its 
 
 debtors 86 
 
 1847. As to advancing the periods fixed for the payment of the 
 
 public debt, and arranging for it to be paid in smaller 
 
 instalments 87 
 
 -' Directing President to report the quantity of small bills in 
 
 circulation, balances of deposits, &c . , „__88 
 
 95 
 
750 INDEX. 
 
 RESOLUTIONS (Continued.) >-- 
 
 1847. Directing Comptroller General to publish in the newspapers 
 
 the monthly statements of the Banks S8 
 
 , " Directing Comptroller G eneral to prepare a statement of the 
 capital of the Bank, what sums it has paid on account of 
 
 the public debt, its profits, &c. &c 88 
 
 HOSE, JAMES, 
 
 HisBeport, 1839 __ 438 
 
 RULES AND REGULATIONS. 
 
 Of City Council of Charleston, in regard to Fire Loan . _ 70 
 
 SALARY. 
 
 Of President of Bank "1 3,16 
 
 Of Officers of Banks in Charleston i_. 244 
 
 " " Branch, Camden „ 530- 
 
 SHERIFF. 
 
 Of Charleston District, to deposit in Bank 8, 10 
 
 Of Charleston, Georgetown and Richland, to report monthly 
 
 to President and Directors, all monies received officially 15 
 
 To pay by checks on Bank ^ 17 
 
 Of each District in which the Bank or a Branch is situated, to 
 
 deposit funds of his office 48 
 
 Of Charleston, to execute warrants under Fire Loan, &c 58 
 
 To deposit in official name, with title of case under which the 
 
 money was received > 76 
 
 Of City Court of Charleston, to deposit in Bank, in like man- 
 ner as Sheriff of Charleston District 76 
 
 SINKING FUND. 
 
 Act to provide and apply ^ 19 
 
 Dividends on shares of the State in the S. W. R. R. Bank to 
 
 be part of 51 
 
 Balance of Surplus Revenue, ($200,000,) transferred to 60 
 
 Statement of its probable operation in payment of public debt, 
 
 to 1852.- 567 
 
 Table of, 1822 to 1847 533 
 
 Annual balance sheets of — 
 
 1825, 6, 7,. 
 
 -.156 
 
 1844 
 
 486 
 
 1841, 
 
 461 
 
 -- ..---468 
 
 1845 
 
 501 
 
 1842, 
 
 1856 
 
 514 
 
 1843, 
 
 477 
 
 1847 
 
 527 
 
 OLICITORS. 
 
 See Attorney 
 
 General and Solicitors. 
 
 
 
 ja§^ 
 
INDEX. 751 
 
 S OUTH CAROLINA CANAL AND R. R. CO. 
 
 Commissioners to represent the State in, to be appointed 50 
 
 And directed to insist that a sinking fund be provided 85 
 
 Dividends from, to be applied to purchase of public debt 86 
 
 ■Statement of the connection of the State with the Rail Road 
 
 and Rail Road Bank 234 
 
 Purchase of Stock in, by Bank 293 
 
 President Elmore's statement in regard to the advance by the 
 
 State of $600,000 to, (in answer to Grov. Hammond) 550 
 
 Report of Committee of Ways and Means concerning dividends 
 
 in .-- _ 610 
 
 Loan to, in 1829, remarks on, by Comptrdller General 711 
 
 See Louisville^ Cincinnati and Charleston R. R. Co. 
 
 :SOUTH WESTERN RAIL ROAD BANK. 
 
 Subscription authorized, and provision made for payment of 
 
 instalments 47 
 
 Dividends, how to be disposed of, 48, 51, 52, 60 
 
 Proxies of the State in 48, 50 
 
 Bonus of Bank of Charleston to be applied to payment of sub- 
 scription to 48 
 
 Its Charter extended to 1 st January 1 860 50 
 
 The Legislature may examine their books 51 
 
 ■Statement of 5 per cent stock issued by the State and paid - 
 to - .-- 249, 278 
 
 SPECIE. 
 
 Statements of amounts on hand..- 117, 136, 157, 163, 209 
 
 " " purchases of 112 
 
 STRICKEYSEN. 
 
 Stock provided to meet claim of, to be depoited in Bank 1 
 
 SUIT. 
 
 Table of amount of bonds and notes in suit and judgment ' 532 
 
 SUMTER, GEN, THOMAS. 
 
 Indulgence granted to him on his debt in bank 29, 77 
 
 SURETIES. 
 
 To bonds, how liable 8 
 
 SURPLUS REVENUE. 
 
 From U. S. how received and disposed of 39, 233, 268, 480 
 
 Table of. 533 
 
 SUSPENSION OF SPECIE PAYMENTS. 
 
 By the Banks of the State, provisions against 53^ 61 
 
 Resolutions in regard to, 1841 82 
 
 STOCKS. 
 
 To be capital of the Bank 1 
 
 Interest on, and principal of, to be paid by the Bank. .7, 45^ 55, 60 
 
 ^ 
 
STOCKS (Continued.) 
 
 
 $300 000 of 6 
 
 per 
 
 800 000 " " 
 
 «" 
 
 200 000 '• 5 
 
 u 
 
 250 000 " " 
 
 u 
 
 300 000 " '' 
 
 a 
 
 10 000 " 6 
 
 u 
 
 300 000 " 5 
 
 a 
 
 2000 000 " 6 
 
 u 
 
 200 000 " 5 
 
 u 
 
 600 000 " " 
 
 u 
 
 752 INDEX. 
 
 cent, to be issued 7 
 
 '' " " --... 18 
 
 " 21 
 
 " 24 
 
 " . 25 
 
 " . 25 
 
 " (not issued) . . - 37 
 
 " ..„ 40 
 
 " ^ 48 
 
 " .._ 49 
 
 Capital and profits of Bank pledged for payment of principal 
 
 and interes't of, 7, 45, 55, 60 
 
 Three per cent, how to be redeemed ^ 8 
 
 Banks in the State may be prohibited from purchasing 15 
 
 Form of certificates of 18, 22 
 
 Names of purchasers of, to be entered in books by Treasurer 
 
 of Lower Division 18,22, 24 
 
 To be purchased by the Bank, with its profits !l4^^ 
 
 President and Directors of Bank to purchase, at their discre- 
 tion - 25, 84 
 
 Sinking Fund created for redemption of 20 
 
 President of Bank to sign transfers of, 23 
 
 How transferred 55 
 
 Not to be dealt in by officers of Bank 36 
 
 Stock books to be transferred from the Treasury to the Bank- _ 35 
 
 This provision repealed, (but repeal not acted on) 37 
 
 Certificates of, now, or hereafter to be, purchased, to be can- 
 celled by Bank and Comptroller General 60 
 
 Statements of, held by the Bank, __.211, 282, 300, 533 
 
 " " issuesof, _.252, 278 
 
 « " 5 per cents issued S. W. R. B. Bank ^49, 278 
 
 « " duein 1840 _. 445 
 
 President Elmore's remarks as to purchase of, by Bank 472 
 
 Correspondence between President Elmore and various per- 
 
 «. sons in regard to purchase of 616 et scq. 
 
 Statement of amount of, placed by the State in the Bank, at 
 
 various times ^ 714 
 
 Statement of, paid by the Bank 534, 713, 714 
 
 See Public Debt^ Bank of tJic State, Comptroller Gene^'al, 
 Fresident and Directors. 
 TAX COLLECTORS. 
 
 Of St. Phillip's and St. Michael's, to deposit in Bank 8, 10 
 
INDEX. 753 
 
 TELLERS. 
 
 To give bond ^--- 4 
 
 Oath of ,,-_.. .._^ 4 
 
 TREASURER OF LOWER DIVISION. 
 
 To issue certificates of stock _-._.._-... 7, 18, 21, 24, 25, 37 
 
 To transfer to Bank all securities due the State 9 
 
 To deposit all monies of his office in Bank 9 
 
 To collect Bonds of Paper Medium Loan office 13 
 
 To open books and enter names of purchasers of stock, 18, 21, 24, 37 
 
 These books to be transferred to Bank 35 
 
 To be returned to Treasury Office (this not acted on) 37 
 
 To sign new certificates of stock.. ^ 64 
 
 TREASURER OF UPPER DIVISION. 
 
 To credit Bank with $5, 180, lost by Bank of Cheraw. 36 
 
 Payment by, to correct error in Gov. McDuffie's account, con- 
 firmed 47 
 
 TREASURERS. 
 
 To deposit in Bank ,_..-* _--8-9-10 
 
 To make payments by checks on Bank. 13-17 
 
 Payments to them, by public officers, to be by checks on the 
 Bank 14 
 
 TREASURY. 
 
 Amount paid into by Bank, out of its profits 714 
 
 TREASURIES. ^ 
 
 Balances between Bank and two, 1840-'41 680 
 
 TREZEVANT, PETER, ESQ. 
 
 His Letters in regard to purchase of State stocks 638-639 
 
 USURY. 
 
 No officer of Bank to be concerned in 6 
 
 VACANCY. 
 
 In office of President or Director, how to be filled, 3, 11 
 
 WAYS AND MEANS. See Committees of Ways and Means. 
 
 WOODm BUILDINGS 43 
 
 W^ 
 

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