Wlliam Gilmore Simms
Selections from the Letters and Speeches of the Hon. James H. Hammond, of South Carolina >> Message to the Senate and House of Representatives of the State of South Carolina, Nov. 28, 1843 >> Page 62

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Documents | The Reprint Company; John F. Trow & Co. | 1866, 1978
Transcription 62
siderable amount, and if, after three years' notice, the
debtors on Stationary Discounts and Bonds could not
be prepared to liquidate their liabilities at the rate of
twenty-five per cent. per' annum, a . longer indulgence
would not only be unsafe, but extremely unwise.
Whenever it has been heretofore suggested that
the bank should curtail its discounts, or call in its debts,
the reply has been promptly made that the planters will
be distressed, and that this is a planters' bank. When
a planter borrows money, it is almost a] ways for specu-
lation, or to pay.. the losses of speculation, or of profli-
gate self-indulgence. He never: needs a loan to carry
on his legitimate planting operations ; and when he
becomes a borrower, even if it be to hold his produce,
or to purchase lands and laborers, he becomes as much
a speculator as the merchant or broker, and is entitled
to no more indulgence. The only bank which could
really benefit the planters would be a Savings Bank,
where the cash balances from their crops might be
deposited on interest until required.
It will probably be said that the scheme I have
proposed for paying the Public Debt will virtually
throw the bank into a state of liquidation. Not so,
however. Its present actual capital amounts to four
millions of dollars ($4,000,000) the debt to three
millions and a half ($3,500,000), which, if paid, will
leave the handsome sum of five hundred thousand
dollars ($500,000) for banking purposes. To this
might be added the shares of the State in the Rail
Road Company and Bank, and also their obligation.
This would raise the nominal capital to one million,
seven hundred thousand ($1,700,000), and would give
it one intrinsically worth considerably more than