A Compilation of All the Acts, Resolutions, Reports, and Other Documents, in Relation to the Bank of the State of South Carolina

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 session. Unfortunately, such a committee, from the constitution of the Legislature, is necessarily biennial, instead of annual, as recommended 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, perhaps, 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 character, the business of the mother Bank is spread all over the State. Applications for its aid come from every district and parish, and these applications having merits of even equal weight with those of persons residing in Charleston, cannot be considered with equal favor, because, in case of failure 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 reference, 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 impossible 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 had, 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 December last, the instructions of the Legislature in regard to the debt of the

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 appeal, 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 Resolutions of the Legislature.

No offer 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.

November, 23, 1846.

F. H. ELMORE, President.