gested that the matter of suspension having been referred to the Legislature by the Governor, in 1837, and suspension having been acquiesced in, this might perhaps also be regarded as a waiver.[1]
The financial storm was comparatively mild in South Carolina. The State had not been much affected by any of the prevailing manias. According to the reports of the Bank of the State, 1841 to 1844, it was prosperous in a modest way. Its profits are stated at from $225,000 to $250,000 per annum.
The Bank of Charleston issued, in 1844, checks on New York in denominations of five, ten, twenty, and fifty dollars, payable also in Charleston. They were issued for the convenience of the traveling public.
Georgia.—The capital of the Central Bank, in 1835, was $2,593,912. In 1837 the share of the State in the distribution of the federal surplus was put in it. This sum was kept separate and losses were charged against the former sum which was thus reduced, before November 2, 1840, to $930,589. The State was consuming in appropriations and interest the capital of the bank. At the preceding session the bank had been ordered to distribute $750,000 in loans amongst the counties, for "relief." "These loans have been eagerly sought by our citizens. By this operation the profits of the bank have been increased by the sum of $45,000, and its notes by the sum of $750,000." The measure, however, was the death blow of the bank. "The heavy amount of debts due by the people, the low price of property and commodities, and the poor reward of labor have rendered the collection of money due the bank exceedingly difficult. Our receipts have been greatly increased by the moneyed facilities arising from our distribution of $750,000, which is now completed. This distribution has almost entirely been loaned in small sums, and the great amount of indebtedness thus transferred from creditors, who would not wait, to the bank, which will await the annual return of the industry of the planter, has operated as a relief to thousands of our most meritorious citizens. * * * Time has proved the unsoundness of a large amount of claims which have been due to the State for thirty years and upwards. Experience is daily developing difficulties in collecting notes heretofore regarded as secured in the amplest manner."[2] A committee of the House on this report was not at all satisfied with it. They insisted that the heavy exchange against the State was due to the depreciation of its currency, and was no reason for not putting the funds in New York to pay the debt there, since the creditor had nothing to do with the internal troubles of the State. "Whenever it can be shown to be honest and sound policy to levy money out of one citizen's pocket to loan to another, certainly not more and probably much less meritorious, then ought the policy of the Central Bank to be sustained; but not till then." They proposed a law to require the banks to resume, February 1, 1841, under penalty of forfeiture.
