G44 TAXATION AND DEBT. 



the thirteen original States, contracted in the prosecution of tlie war. 

 That of South Carolina was the largest and amounted to $3,999,651. In 

 tlie further adjustment of the war accounts of the several States with the 

 United States, on the showing of Simeon Theus, it appeared to the satis- 

 faction of the cornmissioners appointed on behalf of the United States, 

 that the latter were indebted to South Carolina, for advances made by her, 

 in the further sum of $1,447,173, and certificates of funded stock were 

 given to the State for that sum. 



These settlements, and the general prosperity ^which ensued with the 

 establishment of the independence of the country, gave a stable founda- 

 tion to the finances of South Carolina. A branch bank of the National 

 Bank was established in Charleston, in 1792, and others followed soon 

 after, and the inconveniences which had afflicted South Carolina in every 

 preceding period of her history from the w^ant of a circulating medium 

 passed away, and the country rose to a high pitch of prosperity. 



Nevertheless, in 1799, it appeared that no man in or out of office in 

 the State, was able to tell the amount of the debts or of the credits of the 

 State. In consequence, the office of Comptroller-General was established, 

 and Paul Hamilton, the first incumbent, stated in his final report, in 

 1804, that the balance due to the State was $7o4,oo5. 



This flourishing condition of the finances induced the Legislature to 

 subscribe $300,000 to the State Bank, and to establish and endow the 

 South Carolina College at Columbia. 



The war between England and France, causing the imposition of the 

 embargo, and the non-intercourse acts, of 1807 and 1809, and finally the 

 declaration of war against Great Britain, in 1812, bore heavily on the 

 agricultural interests of South Carolina. From December, 1807, foreign 

 trade was almost entirely cut off. Agricultural productions accumulated 

 in the hands of the planters, becoming well-nigh unsalable. Money 

 almost ceased to circulate among the people, and business came to a stand- 

 still. To relieve this distress, the Legislature, in 1812, chartered the 

 Bank of the State, vesting in it the cash in hand and the funds belonging 

 to the State, with power to loan on real security and personal, at an in- 

 terest of seven per cent., the interest being paid in advance annually, 

 and renewable for years. All stocks, bonds, shares and claims belonging 

 to the State, the unexpended money in the treasury, and all taxes to be 

 thereafter collected, were deposited in the bank, and vested in the Presi- 

 dent and Directors, and the faith of the State pledged to suppt)rt the 

 bank, and to make good all losses. The bank was to pay the interest on 

 the State debt. This debt consisted of three per cent. Revolutionary 

 stock, and was estimated by the Legislature for redemption at fifty-five 

 cents on the dollar, making it, by this valuation, $332,870. The bank 



