any man, much less to those who are weak and haye no strength but in her justice, that come what may, his accounts shall not be exposed-a promise which expressed no qualification, nor contained any condition authorizing it to be abrogated or set aside.

It has been suggested, however, that the Bank is the Treasury, and that the Legislature is bound to look into the Tresury, and may require every disclosure which it may think proper; and that its discounts and loans are to be considered as of the same character as those of the old Loan Office. If the Bank is the Treasury, its charter is nothing. But that charter is not a nullity, and while the Legislature, in it, retained to itself the most ample guards for looking into its operations by the Comptroller General and its own committees, it voluntarily stipulated with its cumstomers that it would not violate the sanctity of their accounts by any inspection of its own. The case of the Loan Office cannot be considered as one of this character, nor be confounded with the transactions of a Bank. There the loans were by the State, made through its own officers. All the obligations of debt were in the name of and to the State; but in this case the transactions are with a corporation, whose officers are the trustees of all parties, and are appointed and sworn to carry out the trust according to the several Acts of charter. These Acts of the charter have given pledges which it would be as impolitic as unjust to disregard.

With these views I submit the whole matter to the judgment and direction of the Senate.

All of which is respectfully submitted,

December 15, 1845.

F, H. ELMORE, President.

Extract from the Minutes of the Columbia Branch, 9th December, 1824.

The Board met this day by special summons, to take into consideration a letter from Mr. Elliott, conveying a Resolution of the House of Representatives.

Present-W. J. Myddleton, President, W. C. Preston, Jas. Davis, D. Morgan, W. Hampton, J. M. Howell, M. Antonio, D. Faust, Robt. Stark, Thos. Taylor, W. Law.

After reading Mr. Elliott's communication and the Resolution accompanying it, Mr. Preston moved the following Preamble and Resolutions, which were unanimously concurred in.

The Board of Directors of this Brane have no question that the President and Directors of the Bank are authorized to give orders to the President of this Branch and enforce obedience. The Act of incorporation confers upon them this power, and this Board is not disposed to impugn it. The President of the Bank alone, however, has no such power under existing laws, and if the Act of Incorporation is to be considered as a charter, these laws cannot be changed but by consent of the President and Directors. If it is not a charter, it is at least a solemn Act of the Legislature, which cannot be repealed by a Resolution of the House of Repre

sentatives.

The President of this Branch, therefore, cannot legally recognize the extraordinary powers given to the President of the Bank by the Resolution of the 30th November.

This Resolution, which calls for the accounts of the Directors of the Branches, is also a contravention of that clause of the Act of incorporation which protects the accounts of individuals from exposure.

The Directors of this Board consider their accounts within the provision of the 42nd clause of the Act of incorporation, and within the exception of the 2nd clause of the Act of 1817, and the provision of the 7th clause of the Act of 1813. The 41st clause of that Act, prescribes the mode of investigating the Bank accounts. This Resolution is also in contravention of these Acts.

1st. Resolved, therefore, That the officers of this Branch be, and they are hereby, instructed not to expose the accounts of this Bank, in compliance with Mr. Elliott's request, made in conformity with the Resolution of the House of Representatives calling for information of the Legislature.

2nd, Resolved, unanimously, That this Board affects no concealment which they do not consider their solemn duty under existing laws to preserve, and that it is prepared to furnish at all times all information in regard to all accounts and transactions of this Branch, when required to do so by the President and Directors of the Bank.

3rd. Resolved, That the President of the Bank be furnished with a copy of this Preamble and Resolutions. Which was accordingly so done, Laid on the table in the House.

(1824.)

Report on the Removal of the Bank.

The President of the Bank of the State of South Carolina, who was required by a joint Resolution of the Legislature of the State of South Carolina, "to enquire into the expediency and practicability of removing the Bank of the State of South Carolina from Charleston to Columbia, with the view of ultimately establishing, so soon as may be expedient, branches at Cheraw and Hamburg, and to report thereon at the meeting of the ensuing Legislature, taking into consideration the effect which would be thus produced upon the currency of the interior of the State." respectfully

REPORTS:

That on the practicability of removing the Bank of the State of South Carolina from Charleston to Columbia, no doubt can be entertained. Every institution of this nature must possess the power of closing its business in a limited period, and of course, transferring its funds whenever the owners of them may deem it nececessary. Circumstances, however, will always increase or diminish the difficulties of its operation. When the funds are to be distributed among individuals, or transferred to another institution

in the same neighborhood with the one suppressed, no expense and little delay will be incurred, for specialities may be assigned, when they are found as good, as readily as money. And only the amount and description of the several denominations of uotes, bonds, stock or money, may have to be registered and adjusted. But where the funds of a Bank are to be removed to a distance, the difficulties increase, because the specialities, in many cases, may not be removable, but must be collected, and the funds must be transferred only when converted into money. In the present instance, that part of the funds of the Bank in Charleston, which consists in notes or specialities due to the Bank, is almost exclusively due by persons residing in the city or in the adjacent districts. These notes or bonds were given under the expectation that their payment would be demanded in Charleston. Most of them are actually payable in the city, and in most instances it would suit neither the wishes nor the arrangements of the drawers to have them transferred to Columbia. It would be necessary to collect them where they are legally due, and to remit the amounts when received to the points where they are destined to be employed. This measure, therefore, will produce all the trouble, the delay and expense which attend a final settlement of the affairs of a monied institution, and would appear to be injudicious, unless the objects which call for its adop tion are of high and paramount importance.

The expediency of this measure ought, therefore, to be maturely weighed, and must be considered, as directed by the Resolution of the Legislature, under the double view of the influence which the removal of the Bank to Columbia may have on the currency of the State, and on the facilities it should afford for the future establishment of branches at Cheraw and Hamburg.

Every Bank that issues paper, and wishes to maintain its credit, while it transacts business as extensively as its capital and the calls of the country will justify, must either keep at all times a sufficient quantity of specie to meet the demands which may be made upon it, or must have access to a market where specie may be obtained whenever it may be required, or which shall afford the opportunity of procuring other funds that may be equivalent to specie. In addition to these means, or rather as an auxiliary resource, it ought to possess the power, on any emergency, of calling in such a portion of its outstanding debts as may relieve it from any temporary embarrassment. In all of these respects a large commercial city offers great advantages.

1. Through the markets of an important commercial city, specie is frequently, if not always passing, and when as an article of commerce it is not in particular demand, it is often deposited in the vaults of the Bank, and aids them in the circulation of their paper.

2. When, as an article of commerse, it is passing through the market, it can always be procured by institutions on the spot at a fair value, and without the expense of agents and commissioners. At particular periods, even the opportunities of purchasing specie occur but rarely, and must be promptly embraced. All the institutions which have attempted to import specie on their own account, have found the effort attended with great expense, and some risk.

3. When specie is demanded from a Bank to any amount, it is in most cases for the purpose of remitting it to some other market. Those who observe the course of business and exchange, can generally foresee when

and where funds will be wanted, and by availing themselves of the fluctuations of exchange, can provide without loss for many of the calls which are made for specie.. In large commercial cities, bills of exchange are always in the markets at prices regulated by the actual operations of commerce. By purchasing them at reasonable prices, available funds can usually be vested in whatever place it appears to be probable that, in the arrangements of commerce, funds will be required. In a town of small or circumscribed business, bills of exchange are seldom offered for sale, and if wanted, they either cannot be obtained, or can only be drawn into market by the temptation of an extra premium.

4. Another very important advantage is, that a large portion of the discounts made in a commercial city, are of a nature not likely to be permanent. They are on notes given in the course of business, for real transactions, and are frequently paid in full at the periods when they become due. Even if these notes should be partially received, yet as they generally have on them the names of persons not at all connected in business. it becomes the interest and the wish of all parties to settle them as speedily as possible. From this cause it happens, that when heavy demands are felt or apprehended, relief may be obtained without any unpleasant pressure on the debtors of a bank, merely by ceasing to do new business, and by retaining in the coffers of the Bank the money which, during each week. is paid on the notes which have become due. Thus. in the summer of 1819 a large amount was collected by the Bank of the State of South Carolina, in Charleston, without any distress to the public; and those who remember the misfortnes of that year will readily recollect how much those misfortunes would have been aggravated, if a general call for payment had been made by all of the Banks.

It is believed that much evil was averted by the course which this very Bank pursued, and yet that system could not have been adopted, unless its local position, in addition to the precautions of its managers, had enabled it to provide means to meet the claims which were made upon it. It is necessary to add, that in a town not extensively commercial, this silent but efficient resource cannot be found.

It therefore appears evident, that in a place of comparatively small business, where few of those adventitious aids occur, a Bank must either reduce its business very much, or must incur a very considerable expense to maintain its credit, either of which must consequently reduce its income; or if it should neglect these precautions, it must hazard perpetually the loss of its credit, and the consequent depreciation of its paper.

It is unwise to suppose, as has sometimes been done, that a Bank, by a removal from a commercial or seaport town, will be removed also from all applications for specie. If specie, as an article of commerce, is really wanted, neither the distance nor the expense of removing it from Columbia to Charleston will cause any diminution in the demand. In 1819 and 1820, specie was called for in Ohio and Kentucky, and transferred to Philadelphia. But even if it were to be presumed that the distance interposed some obstacle, another evil might occur, and we might have to apprehend that the bills of such a Bank would be refused in the commercial cities, where they could not be made to answer the purposes of the holder. and from that cause alone they would inevitably depreciate. The very apprehension that a removal was made to avoid specie claims, would pro

duce this effect.

It is presumed in this enquiry, that the State will not be willing, certainly cannot desire, to have the bills of this Bank discredited, or to see them circulate at a depreciated value. The States where a depreciation of currency has occurred, have been exposed to many inconveniences. All are now anxiously endeavoring to place the paper of their banks on a solid and permanent basis. It is, therefore, unnecessary to state the inconveniences which would result from such a measure. But a confident expectation is entertained, that having surmounted the difficulties which beset us in 1819-20 and 21, they will not be voluntarily encountered at this late period.

These observations are candidly made, not because the resolutions of the Legislature would seem to sanction any belief that it was the wish or intention of that body to expose or hazard, in the slightest degree, the credit of the currency of the State; but because many individuals, some of them men of great integrity and experience in business-some men, on whose judgments much reliance ought to be placed, have expressed such an opinion, and maintained, that as long as the paper of the Banks of Georgia and North Carolina continues at a depreciated standard, the State ought, in justice to its own institutions, to adopt a similar system, It is true that the state of the currency in the adjoining States for the last four years, has thrown a heavy burden on the Banks of this State. They have been obliged to furnish nearly all the specie balances which, în that period have been remitted from the Southern to the Northern States; they have virtually furnished funds to pay nearly all the revenue which the Government of the United States has collected in the south-eastern division of the Union, and the exertions which they have made to sustain the credit of their paper, seems only (perhaps necessary for the condition of the currency in the adjoining States,) to have increased the demand upon them. But they have derived some compensation in the extended circulation of their bills, and some anxiety is therefore felt that the Bank of the State of South Carolina should be permitted to remain where the means of preserving the credit of its paper are most easily, cheaply, and extensively to be procured.

It remains then to enquire, what facilities the removal of the Bank from Charleston to Columbia would afford for the future establishment of branches at Cheraw and Hamburg?

That the removal of the Bank would increase the capital at Columbia is certain; and for a time some advantages would be given to the commerce of this place. But even these advantages must cease if that capital should be, as suggested, transferred to other Districts, and it may be doubted whether the accommodation given to Columbia, by the present arrangements of the Bank, is not more beneficial than its actual removal. During the last season, nearly, if not all of the good drafts offered in Charleston, were discounted by the Branch at Columbia, and sent to the parent Bank for collection; and for some months much of the funds of the institution were applied to this object; because it caused the payment of large sums into the Bank at Charleston, when at times such payments are important. To the merchants and planters in and around Columbia, this operation was, in many instances, more convenient than a discount on notes ultimately payable in Columbia, as it enabled them to draw funds from Charleston without trouble or expense. Many have expressed an anxious wish that the system should be extensively pursued. But a Bank placed in Colum