discounts, be collected from the debtors of the Bank. In short, what are supposed to be equivalents for the State debt, are securities of no higher value than those in which all the other funds of the State have been invested by the Bank, nor are they more readily convertible into money. It is said again, that one million ($1,000,000) of our internal improvement debt has been redeemed, and this is taken as proof of the capacity of the Bank to redeem the whole debt. It is true that one million has been paid, but it has been made the pretext for issuing stock to the amount of one million seven hundred and six thousand, one hundred and six dollars and ninety-four cents, ($1,706,107 94.) thus actually increasing the public debt seven hundred thousand dollars, instead of diminishing it. This can be readily made to appear. In a moment of generous enthusiasm, worthy of the character of the State and her citizens, a bill was passed at the extra session in 1838, almost by universal consent, to borrow two millions of dollars ($2,000,000) for rebuilding the City of Charleston, after the calamitous fire of that year. Of this amount, one million and thirty-five thousand, five hundred and fifty-five dollars and fifty-five cents ($1,035,555 55,) was obtained in London, on 5 per cent. bonds. This was loaned to the citizens of Charleston for building purposes, and supplied all their wants. Faith and justice to the people of the State, required that the balance of the bonds not sold for the purpose for which they were issued, and not wanted for it, should have been destroyed. The bank, however, obtained the Governor's consent to raise them to 6 per cent. bonds, to the amount of nine hundred and sixty-four thousand, four hundred and fortyfour dollars, forty-four cents, (8051,444 44.) and took possession of them as a loan from the State to itself, and merely charged itself debtor to the State in that amount on the books of the bank; though it still continues to report the whole two millions as the "Fire Loan." The pretext for this, was to pay the instalments of the debt of eight hundred thousand dollars ($800,000,) which fell due in 1840; and of two hundred thousand dollars ($200,000) which fell due in 1842. And on that ground, the Legislature afterwards, in 1841, sanctioned the conduct of the Bank, by laying on the table a resolution to cancel this remainder of the Fire Loan Bonds. this was not all. At the regular session, in December, 1838, the Legislature passed an Act confirming the subscription of the Governor to the Rail Road Bank, and authorizing the Comptroller General to pay it by drafts upon the Bank of the State, or by an issue of 5 per cents., in case the President and Directors of the Bank found it embarrassing to advance the funds. Although the Sinking Fund at that time amounted to eight hundred and twenty-four thousand dollars ($824,000) and the Surplus Revenue to nine hundred and fifty-one thousand dollars ($951,000) and the large balance of the Fire Loan Bonds before mentioned was absorbed by the Bank during the current fiscal year, the 5 per cent stock was issued to the amount of two hundred thousand dollars ($200,000,) though afterwards reduced to one hundred and forty-one thousand, six hundred and sixty-two dollars and fifty cents ($141,662 50.) And again at the Session of 1839, the Legislature transferred to the Sinking Fund, to aid in the liquidation of the public debt, six hundred thousand dollars ($600,000) of the Surplus Revenue, which had been pledged to the payment of the subscription of the State to the Rail Road Company, and issued for that purpose the same amount of 6 per cent. stock. The operation in both these instances was precisely the same as if these stocks had been created to pay the public But debt, the appropriate funds in the Bank being withheld on that account. Thus in the whole was seventeen hundred thousand dollars borrowed to pay the one million of internal improvement Bonds; and that at a period when the Sinking Fund and Surplus Revenue.-funds specially applicable to such a purpose, exceeded not only the debt paid, but even the enormous sum borrowed, and would have covered both the instalments of the debt and the subscription to the Rail Road Company and Bank, had they been so applied. If the history of the past is to furnish any criterion by which to judge of the future, I fear that whenever an instalment of the public debt becomes due, some scheme will be devised to induce the Legislature to issue new stock to redeem it; and if at every payment, seventy per cent. more than is paid, is borrowed, it requires no gift of prophecy to foresee that this process of redemption will overwhelm the State in debt. I fear, too, that it may be considered as certain, that the Bank will never, unless forced to do it, part with a dollar of its capital, or of the funds used as capital, to pay any portion of the principal of the debt. To diminish its funds would be to curtail its power and influence; and though history does record some rare instances of men-exceptions to the general rule-who have voluntarily resigned power, I do not remember a single one of a corporation of any kind having done it. Being fully assured that the Bank can never pay the public debt by the profits arising from its operations, but being equally convinced that it never will voluntarily pay any part of it out of its capital, I suggest to you the propriety of requiring it, under penalty of forfeiting its charter, to purchase annually, and at some period in each year to cancel, in the presence of the Comptroller General, State Bonds to the amount of five hundred thousand dollars, besides paying the interest on the balance. By such an arrangement the whole debt would be paid in seven, instead of twenty-six years. It may be doubted by some, whether the Bank will be able to withdraw so large a sum from her debtors annually, without producing great distress in the State. It might be answered, that according to its own report, the Bank collected and paid out during the single fiscal year of 1840, upwards of twelve hundred thousand dollars; and the pressure of the money market at that time, was incomparably heavier than it now is, or is likely soon to be. These measures, as I deem necessary and expedient, it remains for your better judgment to approve or disapprove. May the Great Ruler of the Universe, who alone is Wise and Perfect, so influence your deliberations, that whatever you do may redound to the welfare and honor of our country. J. H. HAMMOND. 1812. INDEX. ACTS. An Act to establish a Bank, on behalf of and for the benefit 1 From "An Act to make Appropriations for 1812.". 9 1813. An Act to explain and amend an Act entitled "An Act to 10 11 1814. From "An Act to raise Supplies," &c.--. An Act to alter and amend the Charter of the Bank of the 1816. An Act to authorize the President and Directors of the Bank town 12 13 From "An Act to make Appropriations for 1816."- 13 33 An Act to prohibit the issuing of Bills or negotiable Notes 14 1817. An Act amend the several Acts incorporating the Bank of 14 An Act to alter and amend an Act entitled "An Act to From "An Act to increase the salaries of the Governor of An Act to alter and amend the Charter of the Bank of the An Act to authorize the President and Directors of the Bank An Act to excuse the Officers of the several Branches of the 17 1819. From "An Act to make Appropriations for the year 1819.” 1822. From An Act making Appropriations for the year 1821." An Act to protect the Bank and the holders of Bills and From "An Act to raise supplies for the year 1822."- 1823. From "An Act to raise Supplies for the year 1823."... From "An Act to raise Supplies for the year 1824."... 1826. From "An Act to raise Supplies for the year 1826."------- 25 From "An Act to make Appropriations for the year 1826." 25 25 1827. From "An Act to make Appropriations for the year 1827." 29 1828. An Act to repeal an Act entitled "An Act to admit and in- 1830. An Act to authorize the President and Directors of the Bank 1831. 30 34 34 An Act concerning the Bank of the State of South Carolina. 34 An Act to re-charter the Bank of the State of South Carolina. 1836. From "An Act to make appropriations for the year 1836." 37 37 38 38 39 1837. An Act concerning the Bank of the State of South Carolina. 39 40 An Act to Amend an Act for rebuilding the City of Charles- From "An Act making appropriations for the year 1838." 47 1838. An Act to authorize a subscription in behalf of the State to 1839. From "An Act concerning the office, dutics and liabilities of 47 -- 48 An Act to provide for an advance by the State on its sub- 66 49 An Act to extend the Charter of the South-Western Rail 50 An Act to extend the time during which Loans may be grant 66 1840. From "An Act to raise Supplies for the year 1840."- 52 52 An Act to amend the Charter of the Bank of the State of 53 66 An Act to provide against the suspension of Specie Pay- 53 66 An Act to make further provisions in relation to the Fire 55 1841. From "An Act to incorporate certain Villages, Societies and 66 An Act to amend an Act entitled "An Act for re-building same. 1843. An Act to provide for the payment of a portion of the public 56 56 56 An Act to restore to each Branch of the Legislature, the right An Act to amend an Act to provide against the Suspension of From "An Act making appropriations for the year com- |