to keep a separate account of the accumulating profits, which shall arise from the use of the two millions, including the annual interest received from the lot owners, and these are solemnly pledged and set apart" by the law for "the punctual payment of the interest and principal of this loan."

The whole existing debt of the State is nominally one million seven hundred thousand dollars; but as one-half is redeemable in 1840, and funds 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 provides, 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 thousand 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. It is thus apparent, that the funds specifically pledged and appropriated, are amply sufficient to ensure its punctual payment, independent For, after three years, one-tenth of of the general revenue of the State. the principal sum of two millions will annually return to the Bank, so that in 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 available means for meeting its engagements, but a fiscal agency, eminently adapted to ensure the most perfect punctuality. The payment of the interest 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 confidence 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 include 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 I did not include these bonds among recently negotiated in this market. the debts of the State, because the responsibility of the State will be converted into an actual debt, only when the Company fails to pay the interest and principal of its bonds punctualiy-a failure which, from my knowledge of the Company and the high character of those who conduct its affairs, I am confident will never occur.

I will here remark in conclusion, that the City of Charleston, by an Ordinance of its Council, stands bound to indemnify the State against any losses it may sustain, by the failure of those who receive advances for rebuilding, to comply with their engagements.

GEORGE MCDUFFIE.

CLAUSES

Of the Act for re-building the City of Charleston," referred to by Baring, Brothers & Co.

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 declared, which said fund, with its accumulations, shall be considered solemnly 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 branches of the 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 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 on the said Loan, and the final redemption thereof.

THE STATE OF SOUTH CAROLINA.

By his Excellency P. M. BUTLER, Governor and Commander-in-Chief 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 effect 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.

By the Governor,

B. H. SAXON,

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 hundred and thirty-eight, and in the sixty-third year of the Independence of the United States of America, P. M. BUTLER,

Secretary of State.

(COPY)

Know all men by these Presents, That I, Charles Jones Colcock, President 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 Attorney, 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 Coupons, or in the guarantee written on the back of said Bonds, which are issued under the authority of an Act of the Legislature of the State of South Carolina, bearing date the first 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 Rebuilding the City of Charleston; giving and granting unto my said Attor

per

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 premises, as fully to all intents and purposes, as I might or could do if sonally present, with full power of substitution and revocation; hereby ratifying and confirming all that my said Attorney, or his substitute, shall lawfully 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.

By his Excellency PIERCE M. BUTLER, Governor and Commander-inChief 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

(Five Hundred Pounds)

sterling lawful money of Great Britain, which

sum of money the said State promises to pay the said President and Directors of the Bank of the State of South Carolina, or to their Assigns in

LONDON, on the surrender of this Certificate, on the first day of July, in the year of our Lord

one thousand eight hundred and sixty-eight,

or

with interest thereon, at the

(one thousand eight hundred and fifty-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 London.

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 sixtysecond year of the Independence of the United States.

SEAL

Countersigned by

PIERCE M. BUTLER,

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 1st July, 1839, Twenty-five Pounds (ster-
Twelve Pounds Ten Shillings Sling.

or

being a half year's Interest on Bond No.

for £1000

(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 hundred 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 (including the present Loan) for value received, assign and transfer the within Bond to or bearer, and hereby guarantee the punctual payment 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.

REPORTS

OF THE

COMPTROLLER GENERAL.

EXTRACTS THEREFROM, OF SO MUCH AS RELATES TO THE BANK.

(1813.)

In obedience to the Acts of the Legislature, establishing the Bank of the State of South Carolina, the Treasurer of the Lower Division, under the sanction of a warrant for that purpose, did on the 14th 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 received by him in the coffers 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 required 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 dollars, 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 such 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-Carolina, 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 report, 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. & R., p. 77.