In reply to the third inquiry. The Bank has paid from 1814 to 1821, both inclusive, into the State Treasury, for profits. - In 1821 the Legislature passed an Act establishing the Sinking Fund, by which the President and Directors of the said Bank were required to debit themselves with their annual profits, and credit that fund with the same. In answer to the fourth inquiry. The Bank, from 1823 to 30th September, 1847, inclusive, paid for interest on the public debt.. In reply to the fifth inquiry. The Bank has paid, of the public debt of 6 per cents 1820-5 per cents 1822-5 per cents 1824-5 per cents 1826-6 per cents issued to Rail Road, and 5 per cents issued to South Western Rail Road Bank... 6 per cents and five per cents Sterling Bonds issued for fire loan, cancelled by the Bank... Answer to the sixth inquiry. The State issued and added to the Bank as capitatal, the amount of the fire loan, in 1838-- In 1844, a portion of the Surplus Revenue was transferred to the Bank, for the purpose of aiding in the redemption of the 5 per cent stock of 1826. - The State deposited with the Bank a portion of the 5 per cent stock, issued to the South Western Rail Road Bank, which the Bank of the State cancelled in 1844.... Whole amount of stock issued by the State and placed in the Bank at various times___ Respectfully submitted, -$592,001 28 -$2,653,502 56 $1,586,239 36 $189,253 37 -$2,000,000 00 200,000 00 32,336 80 -$2,232,336 80 WM. C. BLACK, Comptroller General Comptroller's Office, December 16, 1847. [No. 9.] Abstract of the Debits and Credits of the State of South Carolina, on the 30th September, 1847. Bank of the State of South Carolina for its capital. Bank of the State of South Carolina for sinking fund.. Rail Road Bank... 8000 Shares in the South Carolina Rail Road Company. 2,933,611 10 653,022 77 Three, five,and six per cent. St'ks. Treasurer of the U. States for 101,071 15 3,687,705 02 Balance of Salaries due to public 800,000 00 Balance due an Annuitant..... Balance due Free Schools.. 611 40 29,454 85 Balance in favor of the State... 177,916 66 1,398,478 37 523,396 69 . Bonds for sale of Hamburg lots... 2,242 66 1,038 22 ners. COMPTROLLER GENERAL'S OFFICE, Charleston, 1st October, 1847. } WM. C. BLACK, Comptroller General. Governor Hammond's Message in Regard to the Bank Gentlemen of the Senate and House of Representatives: EXECUTIVE DEPARTMENT, Columbia, Nov. 28, 1843. Since your adjournment the late long continued depression of financial affairs throughout the world, has reached and passed what we have much reason to believe was its final crisis. During the last Spring prices of every description fell to the lowest point ever known, but have since continued steadily, though gradually to advance. The revival of business has not been the effect of accidental causes, or speculative operations, or expansion of the paper currency: nor is it owing to any act of legislation in any part of the world favorable to trade. It has been the natural result of industry, economy, and time, which have swept off a large proportion of the embarrassments created by the disasters of the past, and accumulated at all the great commercial points, in safe hands, a vast and unexampled amount of sound metallic capital. We have therefore good reason to indulge the hope that it will be permanent, and to felicitate ourselves on the dawn of a new era in trade and finance. There is but one serious obstacle now apparent that can arrest and roll back, in any short period, the returning tide of our prosperity; and that is, the narrow and delusive idea which still seems to prevail with a majority of those who rule the world, that they can promote the interests of their respective countries, by fettering trade and building up monopolies. Until we seriously approximate to universal Free Trade-to an unrestricted exchange of the surplus productions of one country, for the surplus of another, by which means, the wants of all will be supplied in the cheapest manner, and commerce, currency and credit established in natural and enduring channels, the perpetual recurrence of speculations, fluctuations aud disasters, that will convulse the world, must be looked for with perfect eertainty. It is a matter for congratulation, that England, the source and centre from which have directly or indirectly sprung nearly all the great improvements of modern times, has given evidence of a serious change on this great question. Her recent legislation has been decidedly directed towards a relaxation of the prohibitory and protective laws. It is to be regretted, at the same time, that nearly every other important power in Europe, has, within a few years past, in its convulsive efforts to throw off the embarrass ments of the times, increased restrictions upon trade. Whilst our own Government, recurring to that policy which is every where else regarded as one of the most odious features of aristocratic and despotic power, and held in abhorrence by the people, has re-enacted its Tariff laws, and made them more rigorous and oppressive than they have ever been before. That a Government like ours, purporting to be based on perfect freedom and equality, should perpetrate such laws; and that a people so intelligent as ours so distrustful of their rulers-so ready to resist injustice, and oppression,-four-fifths of whom are agriculturists, all deeply injured by restrictions upon foreign commerce-should permit such an execrable system to be fastened on them, is one of the most extraordinary events in the history of the age. To the enlightened views so rapidly gaining ground among those who control the Engish Government-to the progress of true knowl edge among the other States of Europe, and to the change of power into other hands, which is just about to be realized in our country, I look with confidence for a vast amelioration and early abandonment of the whole system of protective duties. In the meantime it should be borne constantly in mind, that any departure from the great principles of industry, economy, and a steady faith, that with the practice of these two cardinal virtues, time will do the rest, must be attended with the most serious consequences to our future welfare.— And perhaps no occasion could be more auspicious than the present, for you to iustitute a close and searching examination into the precise condition of our State, in all its departments, and Introduce such alterations and reforms as will enable her to take the tide of prosperity to most advantage, and maintain it longest. Her financial condition claims, perhaps, at this especial moment, your first attention. The public debt of the State may be put down in round numbers at three millions and a half of dollars ($3,500,000.) Date. The following is a correct statement of the items, viz: Amount out- Rate of When Re- 1794-5 $193,501 853 per ct. 1824 200,000 00 6 200,000 00 6 $3,495,164 35 Object of the Loan. At will Payt. of Revolutionary Claims, Jan. 1846 Internal Improvements. 1846 Do. do. 1850 Benefit of Mrs. Randolph. do. do. $1,051,422 00-Amount of Surplus Revenue deposited with the State. 2,000,000 00-Amount of Loan by the L. C. & C. Rail Road, guarantied by the State. It is highly probable that the State will never be called on to refund the Surplus revenue, though her liability for it should never be forgotten, in an estimate of her debt. It is to be hoped that her guarantee of the Rail Road Bonds is only nominal, and that in due season they will be discharged by the Rail Road Company. I therefore deduct these items, in stating the Public Debt, for which certain and early provision must be made, at THREE MILLIONS AND A HALF. . It will be perceived that the payments of this debt run through a period Adof twenty-six years, and that the heaviest instalments are the last. mitting that the State will punctually discharge it as it falls due, without creating another, it is yet a serious question whether she should not use every effort in her power to discharge it earlier. A public debt is no longer regarded any where as a public blessing, and such a mass of it hanging over her for such a period must press heavily upon the enterprise and resources of the State. I feel called on however to declare, that I do not believe the debt will be paid even as it falls due, without creating a fresh one in lieu of it, or a large portion of it, unless important changes are made in the financial arrangements of the State. And as these changes might, if effected at all, be so made as to discharge it at a much earlier period, it seems to me the wisest policy to relieve the people as speedily as possible of this immense pressure. The debt can be bona fide paid only by levying taxes to the amount of it, or by using the funds of the State already in existence.— Although I have not the least doubt that the people would, without a murmur, submit to be taxed to any amount, rather than the slightest imputation should rest upon the good faith of the State, yet while there exists any other means of meeting her obligations, I presume no one will propose to resort to onerous taxation. The only alternative, is to use the funds of the State now committed to the management of the Bank. The idea has been often and recently gravely put forth, that the Bank would pay the debt as it became due, out of the profits arising from the operations of Banking. To shew the fallacy of such an idea, it is only necessary to compare the interest on the debt with the profits of the Bank. The interest amounts at this time to one hundred and eighty-six thousand, six hundred and thirty-one dollars and ninety-six cents ($186,631 96) per annum, exclusive of expenses, which must raise the expenditure for this purpose to at least one hundred and ninety thousand dollars ($190,000) annually. The nett profits of the Bank, for the fiscal year of 1842, were reported at two hundred and ten thousand, seven hundred and sixty-nine dollars and forty-two cents, ($210,769 42.) leaving a balance of twenty thousand seven hundred and sixty-nine dollars, and forty-two cents $20,769 42.) The nett profits of the last fiscal year amounted to two hundred and twenty-six thousand, seven hundred and thirty-two dollars and seventeen cents, ($226,732 17.) leaving a balance in favor of the Bank, of thirtysix thousand, seven hundred and thirty-two dollars and seventeen cents, ($36,732 17.) It is obvious that an annual accumulation to the amount of the largest of these sums, would not discharge the debt in much less than a century. Nor is there any just ground for anticipating a great increase of profits for the future. The period for immense returns from Banking operations has passed away, and it is to be hoped, forever. Such is especially the case with this Bank, since the monopoly, which it so long enjoyed in this State, has ceased, and cannot be revived again. It is also said that the State has received and still retains equivalents for a large proportion of her debt, which can be converted at the proper time for paying it. She possesses eight thousand (8,000) shares of Rail Road and Rail Road Bank Stock, which it is gratifying to state, is rising rapidly in value, and it is to be hoped will one day be worth to her the eight hundred thousand dollars ($800,000) which it cost. She holds also the obligation of the Rail Road Company for upwards of $400,000 more, which is doubtless perfectly secure. But these investments could hardly be made available to meet a crisis, and unless converted very gradually, can only be done at a heavy loss. Nor do the small dividends declared materially assist in paying the interest of the Stock issued to make them. For the rest the Sinking Fund, the Fire Loan, and the Surplus revenue, they are all Banked on, and although separate accounts are kept of them in the Bank books, they are as essentially a part of the Bank Capital as the comparatively small portion which is acknowledged to be such. They have been loaned out, and to be used to pay the public debt, must, like other |