under Act for re-building City 1,040,569 00 1,648,252 00

CHARLESTON, 1st October, 1834.

C. M. FURMAN, Cashier.

Protested

11,000 00

28,004 00

"Bond Account..

52,987 62

E.

$819,228 97

F.

G.

State of South Carolina for Loan under the Act for Rebuilding the City of Charleston.

October 1. | By Balance,--

C. M. FURMAN, Cashier.

H.

Interest and Expenses on State Loan, under Act for Rebuilding City of Charleston.

October 1, 1841.148161,176 26

(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

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 prospects, unhappily, have not been realized, and we have passed through another year of trial and difficulty. The prices of our marketable products have ruled exceedingly low; business transactions have been greatly contracted; 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 contraction, 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 principles, 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 unjustifiable expansions, into wild speculations, and at another, by sudden and sometimes unnecessary contractions, into the most ruinous derangements 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