punctuality between individuals; and each man, under the protection of public opinion, as well as of the law, is enabled by means of this mutual confidence to embark in projects useful to himself and the public, which gold and silver do not exist to stimulate. Public credit may then be regarded in the present day as the parent of all useful enterprise; as the great source of mutual honor and honesty, and of mutual respect in society. People risk their property with feelings of perfect safety under its protection, and by means of it, the modern character of civilized society is adorned and ennobled far beyond the standard of ancient times, though pictured as the gold and silver age. But if public confidence be established as the great moving power of modern enterprise, it is absolutely necessary that some written memorandum should be taken at the time of the extent to which it is reposed. By making these memorandums negotiable, we are driven into a system of paper money; to render this safe to the holder it must be convertible into the common currency adopted in part throughout the world-into metallic coin. The more perfect the system of public credit and mutual confidence, the less is the amount of gold and silver necessary to sustain it. That evils may arise from the defective construction of this part of our commercial machinery; that stricter regulations may be necessary to repress dishonest or imprudent speculation and afford additional safeguard to the creditors, may well be allowed, for experience has shown this to be the case. No revolution recorded in history has produced so great a change of property as such a change in the currency would produce if suddenly brought about, and even if effected by a very slow process, though the intensity of the suffering would be diminished, it would be more protracted. All that can be safely accomplished by Federal or State legislation should be attempted to regulate the existing currency so far as to preserve its credit by preventing extravagant and redundant issue on the part of the banks. In my opinion indulgence might be afforded to these institutions to the extent that prudence will allow. This State should not be behind any of her sisters in promptly resuming specie payments as soon as practicable. Good faith and justice to herself require it. In saying all this I mean only to point out the general principles of future action which prudence and caution render evident to myself.

It will be satisfactory to our citizens to know the present condition of the various banks in our State. I, therefore, applied to the presidents of these institutions and received from them, with commendable promptness, the information I requested, with the exception of the Bank of Georgetown, which received my communication too late to be able to furnish its return in time for this message, but which has been promised, and is hourly expected-a proof of their readiness to satisfy the public that the bank credit of the State will bear examination. I have caused

the annexed abstract and summary to be drawn up from the documents transmitted to me, from which it appears that the liabilities of the banks of this State to all others than to their own stockholders are as follows:

Circulation of their notes as stated therein. .

Deduct held by them of each other's notes, and of course

$5,011,656 56

622,571 14

$4,389,085 42

3,221,270 74

88,058 34

74,130 35

7,772,554 85

$1,436,315 12

1,068,130 02

94,500 00

2,598,945 14

Treasury notes of United States.

Debts due them by individuals on notes and

bills discounted and other securities. . 16,657,217 64

Whole assets . . .

In addition to this, under their charters, the individual liabilities of their stockholders to double the amount of their stock, exclusive of the Bank of the State of South Carolina, amounts to . .

$19,256,162 78

15,182,202 00

Whole security to the holders of the notes of and depositors in our banks..

$34,438,364 78

To this must be added the pledge of the State for the liabilities of the Bank of the State of South Carolina.

As further security to the public, I hope in future no bank will be instituted without rendering the individual stockholders liable in at least twice the amount of the stock they hold for the debts of the institution, and that all proceedings against banks by their creditors shall be rather of a summary than a dilatory character. As a future provision, I am strongly of opinion, also, that no bank should be permitted to go into operation till at least three-fourths of the capital subscribed shall have been actually, substantially and availably paid in; also, that the directors should be prohibited from all discounting of stock notes. The public will become satisfied with these institutions in proportion as they see real and effectual provisions enacted to secure the due performance of the contracts which banks enter into for their own benefit.

So much of Governor Butler's message as related to the currency and the financial condition of the country was referred to a special committee, consisting of Messrs. Davie, Memminger, Yeadon, Rhett, Colcock, Jones, and H. H. Thompson. This committee, after mature deliberation, re-. ported to the House of Representatives the following resolutions:

Resolved, That in the opinion of this Legislature it is expedient that the revenues of the Federal government be so collected as ultimately to sever the government from all connection with the banks.

Resolved, That in the opinion of this Legislature the revenue of the Federal government should be so deposited, kept and disbursed as not to be connected with or used in banking operations.

Resolved, That it would be unconstitutional, inexpedient, and dangerous to incorporate a National Bank for managing the fiscal operations of the government.

Subsequently, Mr. Rhett offered an additional resolution, "that it is not intended to reflect any discredit upon the banks generally of the United States, nor, least of all, upon our own, of whose sound condition, as compared with the other parts of our banking system, the Legislature is fully satisfied."

The debate which took place when these resolutions were brought to the consideration of the House called forth the first expressions of Mr. Memminger's ability as a statesman, and at once placed him in the front rank of the political economists and debaters who were arrayed for and against the National Bank. On the 10th of December, as a substitute for these resolutions, Mr. Memminger introduced the following:

1. Resolved, That this Legislature is of the opinion that the public moneys of the United States ought not to be subjected to the casualties and fluctuations of banking operations, but should be gradually and ultimately entirely separated therefrom.

2. Resolved, That in the opinion of this Legislature such a separation ought not to impair the public confidence in well-regulated banking institutions, but would rather tend to promote their stability and credit.

3. Resolved, That as the trade and business of the country and the fiscal concerns of the United States have been for a great length of time conducted by means of banks, and as any great and sudden change in the channels of business may tend to injure the most important interests of society, it is the opinion of this Legislature that the dues of the general government, or a portion thereof, ought to be received and paid away in the notes of specie-paying banks, until sufficient time should be allowed for the course of trade to accommodate itself to the separation proposed.

4. Resolved, That this Legislature considers it essential to a proper administration of this policy that the government should accumulate in the Treasury no moneys beyond its actual immediate wants, and that the gold and silver which may be collected for dues shall immediately return by payments into the circulation of the country.

5. Resolved, That a bank of the United States, chartered by and conducted under the auspices of the government, is unconstitutional and inexpedient.

These resolutions were, in fact, a minority report, Mr. Memminger presenting and alone advocating them before the committee, in lieu of those heretofore referred to as the majority report.

The debate on these resolutions as a substitute was protracted through several days of the session. Mr. Petigru, who was not alone in theory but in conviction an unqualified Federalist of the Hamilton school, led the opposition to the resolution and the substitute, and was ably seconded by Messrs. Perry, Yeadon, Toomer, Irby, Means, Adams, Thompson and Strobhart. The substitute was finally defeated and the debate renewed on the original resolutions as reported by the committee. It was in this debate that Mr. Davie of Chester, Messrs. Seymour, Porcher and Laborde, in advocacy of the resolutions, made themselves distinguished and began a career that justly associates them with the great Carolinians of that day. The resolutions were passed by a very large majority vote, but not without decided opposition, as I have heretofore shown. Men of great ability and sincere convictions championed the National Bank cause from motives which were undoubtedly

free from even a suspicion of corruption. A few were Federalists, as decidedly and as sincerely so as was ever John Knox or Alexander Hamilton. This measure was the chief concern of Mr. Memminger at this session, and in its discussion he at once moved into the orbit of great minds that have made the galaxy of our intellectual firmament in Carolina resplendent for the past century. There were other matters of minor importance with which I find him interested, especially with regard to the public and private interests of the city and the constituency he so well represented. Indeed, there is scarcely a page of the Journal of the House of Representatives that does not bear witness to the earnest spirit with which Mr. Memminger discharged the duties entrusted to him as a legislator. I select from among the many measures he brought forward only such as, because of their importance and bearing upon public interests, make them not only illustrative of the philosophic cast of Mr. Memminger's mind, but historic and of general interest to the reader. It was at this session of the Legislature that Mr. Memminger was elected one of the trustees of the South Carolina College, a position of honor and of responsibility, which he continued to fill with great benefit to his almamater for many succeeding years.

Upon the organization of the House of Representatives in 1838, Mr. Memminger was made chairman of the Committee. of Ways and Means, and also of a special committee to revise the rules of the House. It was at this session that he succeeded in having enacted a bill prepared by himself to amend the act previously passed for rebuilding the city of Charleston. The great fire of this year swept as a besom of destruction over the devoted city, laying in ashes many hundred houses and reducing to comparative poverty hundreds of citizens. Without the means of rebuilding, and without a credit upon which to secure the means, these