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sum of two hundred and one thousand two hundred and twenty-five dollars and thirty-seven cents, ($201,225 37,) as the profits of that institution for the fiscal year ending the 30th September, 1837. Taking into consideration the great revulsions in trade which have occurred during the past year, and which have materially affected the monied interest of this, in common with all other portions of the United States, the Comptroller General deems it an act of justice to remark, that commendation is due to the President and Directors, who have under their charge the interest of the Bank, during a season of the most marked commercial distress, and full of severe trial and embarrassment; and this remark is hazarded on two material and gratifying facts; the first, in the amount of the profits declared for the year last past, and the second, in the ability of the Bank to redeem all its notes in circulation, above the denomination of two dollars, in gold and silver, and to redeem all below that amount in the notes of other Banks in the City of Charleston, which are now held by the Bank of the State. The suspension of specie payments by the Banks in this State, was generally considered necessary as a measure of defence against the predatory practice of jobbing speculators. But the adoption of that measure by the Bank of the State, was more from a compliance with the wishes of a whole commu nity, expressed at a numerous public meeting, than from any apprehension of inability to redeem its paper.-W. LAVAL, C. G.-R. & R. pp. 1 & 2.

(1838.)

In compliance with " An Act for Re-building the City of Charleston," I have countersigned the bonds issued by the Governor, to the President and Directors of the Bank of the State of South Carolina, amounting to two millions of dollars, of which one million is payable in twenty years, and the other million at the expiration of thirty years, bearing five per cent. interest, payable half yearly.-W. ED. HAYNE, C. G.-R. & R. p 70.

(1841.)

No. 10,* is a Statement of the balances between the Bank of the State of South Carolina, and the two Treasuries, on the last day of each month during the fiscal year, showing that the balance of $62,626 16-100 due to the Treasuries on the 1st October, 1840, was exhausted in December; and from thence to April, the Bank was in continued advance to the Treasuries, and at one time, in the sum of $103,155 51-100.—WM. ED. HAYne, C. G. R. & R. pp. 3 & 4.

* See this table on next page,

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[No. 10.]

Balances between the Bank of the State of South Carolina, and the Columbia Branch, and the two Treasuries. CHARLESTON TREASURY. COLUMBIA TREASURY.

1840 September 30,

Dr.

BOTH TREASURIES,

Cr.

$62,426 16

52,489 66 36,098 36

Dr.

Cr. $13,083 34

Dr.

5,449 94

$7,174 60

December 31,

29,070 84|

73,184 62

$44,113 78

1841 January 31,

3,160 33

85,668 34

82,508 01

February 28,

$3,156 81

87,291 69

90,448 50

March 31,

6,500 44

96,653 07

103,155 51

April 30,

102,679 99

70,561 94

May 31,

132,783 54

6,069 84

June 30,

128,099 05

12,178 48

July 31,

120,948 90

15,742 48

August 31,

118,246 29

20,456, 68

September 30,

62,579 36

OFFICE OF COMPTROLLER GENERAL, Charleston, 1st October, 1841.

23,248 27

32,118 55
138,844 38
115,920 57

- 105,206 42
97,789 61
85.827 63

WM. ED. HAYNE, Comptroller General.

(1830.)

The Comptroller General respectfully submits the following Report and Exhibits:

There remained in the Treasury, on the first day of October, 1829, the sum of $131,216 67. The receipts, between that time and the first day of October, 1830, amounted to $264,432 22, and the expenditures to the sum of $281,899 56. The disbursements, within the year, have consequently exceeded the income, to the amount of $17,466 34, and reduced the balance remaining in the Treasury, at the end of the fiscal year, to $113,.

753 33.

On comparing the receipts of the preceding, with those of the last year, it will be seen that there is a difference in favor of the former of $63,640 06. A like examination of the taxes of the two years will exhibit a diminution in the last year, of $58,539 08.

In the death of Mr. STEPHEN ELLIOTT, President of the Bank, the State has lost one of its brightest ornaments, and greatest benefactors. The affairs of this institution, nevertheless, have been conducted throughout the year, with much prudence and ability. The profits for the year ending on the first day of October, 1830, (after deducting $19,302 18, on account of losses that have been accumulating for several years,) amount to the sum of $112,182 04. The Bank, always a subject of interest, has become, in the present embarrassed state of our finances, an object of particular solicitude. With a permanent revenue, which will do little more than cover the ordinary expenditures of the State, even should the Legislature abandon the public works, and a debt amounting to $1,153,770 91, bearing an annual interest of $91,913 12, every one must look to the operations of this institution with deep concern. It is quite apparent from the monthly reports to this department, that its present condition is altogether sound, and very prosperous. The doubts entertained by many of its success, ex-perience has probably, in a great measure, removed. These, however, should not give way to a blind confidence. Too much vigilance, short of a developement of the private transactions of the Bank, could not be exercised. The present location of the parent Bank is considered not only ju dicious but indispensable. An opinion seems to be held by some persons, that the principal Bank should be established at Columbia, and that the Bank at Charleston should be closed, or at farthest, converted into a Branch. The leading reasons assigned are: 1st, That the bills would be circulated in the middle and upper country, and comparatively out of the reach of the United States Bank. 2d. That the competition would be less, and the profits greater. Without pretending to enter fully into the subject, it may be objected: first, that no bank in the interior could maintain the credit of its paper without providing, in some way, for its redemption in Charleston. That city is the great emporium of the State, and money, in whatever form it may exist, and in whatever part of the State it may be put in circulation, will ultimately find its way there, as certainly as the waters flow to the ocean. Bills, payable in Columbia, would not be received at par by the Banks there, more especially by the Branch Bank of the United States, and however solvent the Bank might be from which they emanated, would be placed on the footing of paper redeemable in Augusta, and would necessarily pass through the hands of brokers. If it be conceded that the bills should be payable in Charleston, it follows that the principal bank should be there. The office that redeems must control.—

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Besides, that city affords facilities for the purchase of specie, and for procuring assistance from banks and other sources at moments of unusual pressure, that would be lost to an insulated situation in the interior. Second: As to a diminution of competition, and increase of profits by a removal of the parent Bank, a satisfactory answer is afforded by the simple fact, that the whole capital of the Bank is now actually employed, and it is confidently believed that it might operate most successfully on a much larger fund than that now at its disposal. There is one other consideration connected with this branch of the subject, of great weight. An extension of discounts to a great amount among the agricultural class of the community, (a result to be apprehended from the measure under discussion,) however convenient it might prove to the borrower, would inevitably jeopardize the Bank. The profits of capital invested in agriculture, are slow-they return but once a year. Experience has proven that loans to planters must generally be considered as permanent. It is obvious that the safety of a Bank depends much on its ability to convert its credit into cash, at a short notice. As punctuality is the life of trade, so it is the soul of Banks. These are the handmaids of commerce, and have never been known to prosper in districts essentially agricultural. This may account for the general failure throughout the Western States. Apart from delay of payment, the Bank would sustain more actual losses from planters than merchants. However paradoxical this may appear at first sight, it is nevcrtheless so. The fact alone, that banks have flourished more in countries eminently commercial, if not decisive of the question, goes a great way to explode the popular notion, that the profits of commerce are less certain than those of agriculture. The reverse of the proposition is believed to be true. But merchants are congregated in town-in the vicinity of the Bank, and in constant view of its Directors. Their notes are due at short intervals, and renewals may be refused when the slightest suspicion attaches to their credit. On the other hand, planters are out of their circle of vision. The directors, in making their first advances to them, must often rely on the information of others, which may deceive, and afterwards have not the power of observing the progress of their affairs. There seems to be but one danger from which the Bank might not be secured by proper management, and this is the all-pervading, all-absorbing influence of the United States Bank. The supposition that this institution is useful, because it keeps all other Banks in check by controlling their issues, and thereby preserving a sound currency, concedes at once its absolute power. Independent of its immense capital, which might be brought to bear at any point, it may be seriously questioned whether any bank in the United States could sustain its credit, against a settled determination on the part of this Bank to refuse its bills. To the question propounded by the Committee on Finance of the Senate of the United States, at the last session of Congress: "Has the Bank at any time oppressed any of the State Banks?"— The President answers," Never. There are very few Banks which might not have been injured. Many have been saved; and more have been, and are constantly relieved, when it is found they are solvent, but are suffering under temporary difficulties." We have then the explicit declaration of the President of that institution, who must be intimately acquainted with the extent of its resources, that it possesses the power of destroying the State Banks, without regard to their solvency. The pretended spirit of moderation, and even charity above disclosed, detracts nothing from the precarious and degraded condition to which the State Banks are reduced.

He is not the less a slave, whose master is indulgent. Every friend to the rights of the States, who considers well the influence of money over the affairs of mankind, in the present state of civil society, cannot fail to watch the progress of this institution with fear and trembling.

The Public Debt consists of the following items:

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It appears from the above table, that this debt amounts to $1,753,770 91, bearing interest of $91,913 12. The ways and means of extinguishing it, and providing in the mean time, for the ordinary exigencies of the State, are well worthy the serious consideration of your honorable body.

The Sinking Fund amounted, on the 1st day of October, 1830, to $277,419 70. Shortly afterwards, the profits of the Bank, for the last fiscal year, amounting to $112,182 04, were carried to its credit, making $389, 601 74. This fund is charged with the payment of interest on the 5-and 6 per cent. stock, which will be drawn during the present year.

Believing that the means to which the Legislature, at the last session, looked for the payment of the public debt, will prove delusive, the Comptroller General begs leave to examine, somewhat in detail, the report of the Committee of Ways and Means of the honorable House of Representatives, upon the authority of which, he presumes, the taxes were reduced. In doing this, he professes and feels the utmost respect for that Committee, and for the gentlemen, severally, who compose it, and hopes the importance of the subject will be considered a sufficient apology. The Committee says, "they rely with confidence upon the ability of the Bank of the State, to meet the payments of the public debt as they respectively become due, and of course to obviate the necessity of any demands upon the Treasury for that purpose." They estimate the profits of the Bank, beyond the payment of interest on the five and six per cent. stock, at $25,000 per annum. The first great instalment of the debt, amounting to $800,000, falls due on the first day of January, 1840, allowing only nine years to provide for its redemption. The Sinking Fund is $389,601 74-add to this the surplus profits of the Bank for nine years, and you have only $614,601 74, a sum short of the first payment, by $185,398 26. There will be due on the first day of January, 1842, $200.000 of the 5 per cents. This sum, together with the above balance of 6 per cents. with interest on the last, will amount to $407,646 05. The Sinking Fund will have been sunk in the first payment, and to discharge this increasing demand, you can only look to the surplus profits of the Bank, after paying interest, diminished too, by the loss of that fund, which is now actively employed. These balances will

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