- (1815.)

The Bank of the State of South Carolina has been repaid the sum borrowed of them, with interest, amouting to $265,111 22.*-T. LEE, Comp. R. & R., p. 100.

(1816.)

The Comptroller General further reports, that the Bank of the State of South Carolina, since the close of the fiscal year, viz., in October last, paid into the lower treasury, for the profits of the last year, the sum of $63,022 69.

That the Bank has received from the Treasury, on account of capital since 1st October last, the sum of $100,246 22. That in obedience to the Act of your honorable House, of the last session, he caused this State's quota of the direct tax, amounting to $129,119 66, to be passed to the credit of the Treasury of the United States, and received from that officer a discharge therefor.

The Bank of the State of South Carolina, with whom the loan was negotiated, has been paid the same with interest, amounting to $130,849 86. T. LEE, C. G.-R. & R., p. 109.

(1817.)

That the Bank of the State of South Carolina has received from the treasury, between the last day of September, 1816, and the first day of October, 1817, the sum of one hundred and twelve thousand five hundred and thirteen dollars and fifty-six cents, on account of capital; and has paid to the Treasury. since the 1st of October last, the sum of seventy-six thou sand five hundred and seven dollars and ninety-one cents, as profit.-R CRESWELL, C. G.-R. §. R., p. 85.

(1818.)

No. 5, is a report of the funded debt of this State made by the Treas urer of the Lower Division, by which it will appear that the Bank of the State of South Carolina, on the first day of January last, called in, for redemption, the deferred stock, amounting to thirty-six thousand six hundred and sixty-six dollars and fifty-four cents. Also, on the 1st of July last called in for redemption, the six per cent. stock, amounting to one hundred and forty-three thousand eight hundred and ninety-seven dollars and sixteen cents.

There now remains outstanding the three per cent stock, amounting to two hundred and fifty-nine thousand three hundred and thirty-two dollars and ninety-nine cents.

*To pay direct tax of South Carolina to United States.

No. 14, is the report of the Treasurer of the Lower Division, by which it will appear that the Bank of the State of South Carolina passed to the credit of the Treasury, the sum of one hundred and five thousand eight hundred and thirty-eight dollars and seven cents, as the profits of the Bank for the last fiscal year, ending the last day of September last.

That during the last fiscal year, the Bank of the State of South Carolina received from the Treasury of the Lower Division, the sum of three hundred and twenty-eight thousand sixty-seven dollars and two cents, as capital.-R. CRESWELL, C. G.-R. & R., pp. 78 & 79.

(1819.)

No. 5, is a report from the Treasurer of the Lower Division, that on the 8th of October last there was passed to the credit of the State Treasury, by the Bank of the State of South Carolina, the sum of one hundred and seven thousand five hundred and ninety-three dollars and ninety-five cents, ($107,593 95,) as the profit of said Bank for the last fiscal year.

The Comptroller General also reports, that the Bank of the State of South Carolina has received from the Treasury of the Lower Division, during the last fiscal year, the sum of one hundred and seventy-one thousand five hundred and thirteen dollars and ten cents, as capital.-J. S. COGDELL, C. G.-R. & R. pp. 60 & 62.

(1820.)

No. 5, is a Report from the Treasurer of the Lower Division, that on the 11th day of October, 1820, there was passed to the credit of the State Treasury, by the Bank of the State of South Carolina, the sum of one hundred thousand two hundred and eighty-seven dollars and thirty-seven cents, ($100,287 37,) as the profits of said Bank for the last fiscal year.-J. S. COGDELL, C. G.—R. §. R., p. 57.

(1821.)

No. 16, is a report of the profits of the Bank of the State of South Carolina, for the last fiscal year, amounting to $86,525 38.-T. LEE, C. G.R. & R., p. 56.

(1822.)

The Bank of the State forms one of the most interesting and important objects within the circle of duties ascribed to this department. Whilst the principles of banking appear to me to be too plain to be misunderstood, there is a question, and it appears to be the only one, which should determine the legislature upon this subject: Can the State, through its agents, bank with as much safety as companies of individuals? And this question

should be determined alone by the guards against corruption and mismanagement, which the Legislature may be able to place on their agents. If it is to be considered a dangerous experiment on the part of the State, she has already embarked too much and gone too far, and should return to a state of safety as soon as possible; but if on the contrary she can carry on the business of banking with as little risk as private companies, I confidently believe she has not gone far enough.

With a view to our permanent revenue, this topic is of the greatest interest to the state, and the present session is the time at which it should receive your earnest attention. Whilst I unhesitatingly give it as my opinion that the State may bank, with as much safety and profit as companies, I feel it a duty to say that the Legislature cannot use too much caution in placing proper guards upon her agents, and too much vigilance in preventing fraud and mismanagement, and that I believe the security may and ought to be increased by a legislative provision.

Permit me to suggest the expediency of making each of the Directors ineligible to a seat on the Board one year in every three or four.

If the Legislature consider the Bank as a permanent source of revenue, and are satisfied that the securities are or can be made adequate to its safe and judicious management, I can see no stop which should be put to its progress, but that which expediency may require, in limiting the quantity of circulating medium, until it may yield a revenue equal to the exigencies of our government.

If the State can command the means of doing all the banking business necessary to its own prosperity, in addition to the revenue produced, another object more desirable will be partially if not completely obtained. It will keep within itself, instead of presenting it to companies, the power of regulating the quantity of circulating medium, according to the exigencies which the changes of prosperity or adversity may bring upon the country. Having once granted charters to companies, the Legislature cannot resume or diminish their privileges, should a state of things render it at any time expedient, but you may at all times say to your own Bank, so far shall you go, and no farther. And surely, if circumstances should at any time require a change in the circulating medium of the State, the power to make that change would be more safely vested in the wisdom of the Legislature, than trusted to the interest of companies controlled by the limits of their charter alone.-B. T. ELMORE, C. G.—R. & R. pp. 76 & 77.

(1823.)

No. 8, is the annual statement of the Bank of the State, by which it appears that the nett profits of the last year ending on the 30th September, 1823, were $113,207 61: Which sum, in obedience to the act of the 20th December, 1821, has been carried to the account of the Sinking Fund.

In obedience to the Act to raise supplies for the last year, I have the honor to report to the Legislature, that agreeable to its directions, $200,000 of five per cent. stock, was sold by the Bank of the State, and brought the sum of $202,214 37, which was paid into the Treasury office of the Lower Division.

The State presents the anomaly in finance, of placing not only a large banking capital, but the whole of its treasury, in the trust of a few individuals, with no other security for their faithful and honest management than their individual character.

Character is certainly one of the best securities which can be obtained, for the discharge of public duties, but I can see no reason why others should not be added. It is in vain to say, until the human character undergoes a thorough change, that you can fill the direction of your Bank with individuals who will serve the State from disinterested motives alone; and it is a question yet to be settled, whether you are not paying your Directors the highest price for their services, without possessing a corresponding security for their fidelity and honesty. It is known to be the practice of the Bank, to extend to each director a credit to a considerable amount. the State gives no compensation for the discharge of this very important trust, this cannot be considered unreasonable.

As

But it is to be feared that many bad debts may be contracted thereby, and the State become a loser to an amount which would have exceeded a proper direct compensation to the directors-although I am aware that any recommendation upon this subject from this department will have but little weight. Yet I feel it my duty to present my views to the Legislature. I would recommend it as worthy of your consideration to give to the Directors a fixed salary, as full compensation for their services, and also to bind them in a bond, for the faithful discharge of their duty, conditioned that they should not borrow any money from the Bank in their own or any other persons' names, or to be used directly or indirectly for their interest or benefit, with a similar condition annexed to their oath of office.

If the Legislature should concur in these views, it is believed that the number of Directors may be diminished, and that in the winding up of the business of the Bank, it will be found that it has pursued a true and strict economy, by which it will have paid less for this service than it will do, if it pursues its present plan, with the additional advantage of gaining the best security against mismanagement and fraud, which such a case can give.-T. B. ELMORE, C. G.-R. & R. pp. 79, 81, 82, 83.

(1825.)

No. 9, is a statement of the 3 per cent. stock, by which it will be seen that there remains a balance outstanding of $259,332 19 against the State. No. 10, is a statement of the sinking fund, by which it appears that there was a balance at the end of the year. of $191,283 85 in its favor.The Comptroller General would respectfully observe, that since that time, the profits of the Bank, on the last year's business, have been carried to that fund.

No. 11, is a statement of $250,000, of 5 per cent stocks, sold by the Bank last year, which, agreeable to the Report of that institution, brought the sum of $259,565 62.

No. 12, is a statement of the Bank, exhibiting its profits for the last year, by which it appears that the sum of $115,042 96, being its profits, has been carried to the account of the sinking fund."-B. T. ELMORE, C. G.-R. & R., p. 69.

(1827.)

The Comptroller General reports to the honorable the Legislature of South Carolina, the fiscal transactions of the year ending 30th September

1827.

The Act of the last session authorizing on certain conditions the admission of private Stockholders into the Bank of the State of South Carolina, has not been carried into effect, on account of various objections, on which it will be unnecessary for me to dwell, as they will no doubt be fully presented to the Legislature by the learned President of that insti

tution.

The profits of the Bank during the year, as reported to this Department, have amounted to $75,000, and there has been, from the monthly reports, continued evidence of rapid progression towards a flourishing and sound condition. As Committees however of your honorable body will have prepared reports to the Legislature on the condition of the Bank, it will supersede the necessity of my dwelling longer on the subject.

On the 30th September, 1826, the Sinking Fund amounted to $235,506 99; to which was shortly afterwards carried the profits of the Bank, amounting to $70,500, making together the sum of $306,006 99. From this sum there has been drawn, to meet the interest on the public debt, up to 30th September, 1827, the sum of $74,646 35; consequently the sinking fund, on the date last written amounts to $231,360 64. To this, is to be added the present profits of the Bank, amounting, as stated above, to $75,000; but as it will require this sum, if not more, to meet the interest on the public debt during the ensuing year, the probability is that the 30th of next September, will find this sum diminished, rather than increased.A clause in the Act of the last session, authorizing the admission of private Stockholders into the Bank, directed the investment of the fund in certain stock, under the direction of the Comptroller General, and President of the Bank.

This course had been strongly urged in the Comptroller's Report, but after mature reflection by the Committee of Ways of Means, had been disagreed to, on the ground that the situation of the Bank would not then warrant, without injury, the withdrawal of funds to that amount.

From this consideration, as well as from the fact, that the clause afterwards passed, had been inserted in the Act for extending the charter of the Bank, it was presumed to be the intention of the Legislature that this investment of the sinking fund was to depend upon the success of the whole scheme; and as the balance of the scheme did not succeed, nothing has been done in the matter. That it is important to the interests of the State to increase this fund yearly, and to invest it in stock, bearing an interest equivalent to the interest we are paying on equal sums, I cannot doubt; not only because it would enable us at all times to redeem, to that amount, our own paper, when found in the market, at a fair value, but also, by this course, we would escape the loss resulting from a failure in banking-a catastrophe somewhat to be dreaded, even with the best managed institu, tions.-A. SPEER, C. G.-R. & R. pp. 1 & 2.

(1828.)

The public debt has undergone no change since the last year, except that the Bank has cancelled a part of the old three per cent. stock which it had