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 By the 1st October, 1816, the following additions had been made to our capital: $338,807 14 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 $391,890 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 officer appointed to attend exclusively to the issuing of those bills, increased our expenses nearly 86,000, 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. Experience has proved, and will confirm the observation, that whenever the State shall be involved in war, or may be engaged in extensive improvements, no funds, as many have apprehended, will be diverted disadvantageously 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.. By the 1st October, 1817, the following additions were made to our capital: By cash received as part of the principal of the -$444,973 62 - $79,802 37 6,932 68 25,678 61 Do. from the sale of 417 shares of State Bank 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 16100 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 originally 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 inconvenience could arise; whenever sold at par, the money received would just replace the stock; when any portion should be sold above par, the profits 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 72100 per share. Amount of capital 1st October, 1817-- By the 1st October, 1818, the following additions were made to our capital: By cash received as part of the principal of the United States stock.. Do. from Loan Office Bonds. - - - Do. as profit on 93 shares of State Bank Do. as surplus in the Treasury on the 1st 1st October, 1818.--- -$722,879 05 $69,681 72 30,447 49 1,920 00 -227,937 81 329,987 02 $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 average 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. 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 1817Congress, however, repealed this tax, but not until the taxes in this State had been imposed, and in fact partially collected. This sum, therefore, remained in the Treasury until the 1st April, 1818, when it was transferred to the Bank. From this sum, deduct the amount of six per cent. and deferred stock of the State, redeemed in the course of this year, in pursuance of the provisions of our charter. 1st October, 1819... 176,029 95 -$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 increase 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 prosperous, 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 Legislature, 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 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. 13th February, 1821. STEPHEN ELLIOTT, President. NOVEMBER 4th, 1821. The opportunity which has been afforded 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 expenses 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. Although the pressure on the local Banks commenced in 1819, the retrenchment 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 sufficient to guard the institution against any pressure or contingency whatAnother cause, however, which operated during the last year to diminish the dividend, was the great advances the Bank was obliged to make to meet the expenditures of the State. ever. 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. 1812. FUNDS OF THE STATE OF SOUTH CAROLINA, ACCORDING TO THE EXHIBITS OF THE COMPTROLLER GENERAL, ON THE 1ST OCTOBER, Balance of Six per cent. stock of the United States this day, including purchases made by former TreasurersBalance of deferrred do. do. including purchases made by former Treasurers. $327,177 32 266,118 76 Three per cent. stocks purchased by former Treasurers, worth 65 per cent., equal to-- Bonds and notes, about... Balance due on Paper Medium Bonds... Do. do. on the late General Moultrie's debt- Amounting to one million and fifty-one thousand five hundred and fifty-eight dollars fifty cents. From this amount, however, is to be deducted the outstanding debts of the State, to wit: In six per cent. stock.. In deferred stock. - In three per cent. - $153,571 54 ..259,332 19 The balance which remained due when the claims and provision made for the debt of Strickhausen & Luxemburgh were finally adjusted, and which have always been estimated in our Treasury reports at 55 per cent., equal to.. 1,318 85 16,000 00 114,514 40 5,698 03 731 14 · 300,000 00 20,000 00 $1,051,558 50 142,632 70 332,870 78 718,687 72 Real amount of capital, on the 1st October, 1812. A portion of the Paper Medium Bonds not yet paid, amount- And a balance still due on the miscellaneous bonds, of... - - 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 having applied for payment. Three per cent. stock outstanding and still to be 14,209 13 redeemed, $259,332 19, at 55 per cent. 142,632 70 Present funds of the State- - - Deduct the amount on the 1st October, 1812.. 1,196,220 62 55.366 42 12,134 26 $1,263,721 30 156,841 83 1,106,879 47 718,687 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-- 1st October, 1815.. $3,325 21 48,900 71 |