To swell the catalogue of disasters, a great central institution, 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 necessity of the case was not considered sufficiently urgent for precipitate action, and we felt morally as well as legally bound to continue to redeem our obligations in good faith. Administering a great public trust, and specially 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 resulted 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. Baring, 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 (100) 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 warrant, nor the emergency of the ease 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. Baring, Brothers & Co. and in lieu thereof, with the consent of His Excellency, the Governor, have advertised a six per cent. stock in this market, and have already sold to the amount of about three hundred thousand dollars (8300,000.) I would respectfully suggest, that the act be so amended, that the certificates of stock issued, should be signed by the Cashier, and countersigned by the President of the Bar 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 been ex 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 pro, tem. 1 (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 dollars and seventy-seven cents, (8182,526 77.) Of this sum thirty-two thousand nine hundred and seventy dollars and nine cents (832,970 09,) the whole amount received as interest on the fire-loan bonds, was paid to、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 dollars, 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 herewith, intended to illustrate such views as the Board have thought it their duty to submit, and 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 bearing 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 explanations of the circumstances and causes which have influenced and produced this result. Of these causes, several were sufficiently 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 the 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 use, 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 decreased nearly one million and a quarter of dollars for this year, as compared 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 difficulty 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 share 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 unpropitious, in disabling our debtors to meet their engagements with punctuality. The depressed state of trade, and scarcity of money in our foreign markets, had already brought down the prices of our staple to a very low standard, 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 value of all kinds of property, added greatly to the pressure and distress, Payments into the Bank were made with difficulty 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, issued 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 the 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 peculiar hardship on the debtors of the institution. The Board of Directors, fully alive to the 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 upon 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 specie 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 same 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. 1836, to 1st Oct. 1837, monthly average, 66 1837, 1838, $679,000 618,250 502,500 338,000 During the same period the payments on 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 amounted 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 and sixteen |