19959. Planters & Mechanics Bank (Charleston, SC)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
October 15, 1857
Location
Charleston, South Carolina (32.777, -79.931)

Metadata

Model
gpt-5-mini
Short Digest
cabbc285

Response Measures

Full suspension

Other: Banks agreed to take each other's issues and to settle weekly; Comptroller demanded and Planters & Mechanics paid statutory penalty for suspension.

Description

Multiple articles (Oct 1857) list Planters' and Mechanics' Bank among Charleston banks that suspended after a city-wide panic and runs on banks. Reports describe runs/pressure in mid-October 1857 leading to suspension (around Oct 15, 1857). By mid-1858 the bank is operating and reporting business including the period of suspension, indicating it resumed operations (by July 1, 1858). Cause attributed to runs prompted by other local bank suspensions/withdrawal pressures (local_banks).

Events (3)

1. October 15, 1857 Run
Cause
Local Banks
Cause Details
City-wide run and withdrawal pressure following suspensions of other Charleston banks (pressure from runs on peers and a draft on People's Bank).
Measures
Paid specie demands until suspension; ultimately suspended to stem withdrawals (see coordinated suspension resolution).
Newspaper Excerpt
the run of the previous day was followed up...the run upon the other Banks continued
Source
newspapers
2. October 15, 1857 Suspension
Cause
Local Banks
Cause Details
Suspended as part of a wave of city banks suspending specie payments amid runs and to facilitate mutual settlement among suspended banks; coordinated suspension adopted by banks in Charleston on Oct 15–17, 1857. Comptroller later assessed suspension penalties in Jan 1858 (some banks paid).
Newspaper Excerpt
The Planters and Mechanics, and the Farmers and Exchange Bank suspended this morning.
Source
newspapers
3. July 1, 1858 Reopening
Newspaper Excerpt
including the period of suspension. Of the whole amount of sterling exchange furnished by the Bank, amounting to nearly $1,200,000...from the 1st of July, 1857, to the 1st of July, 1858, including the period of suspension. (statement by the President, Daniel Ravenel, July 1858).
Source
newspapers

Newspaper Articles (10)

Article from Nashville Union and American, October 20, 1857

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LIST OF SUSPENDED BANKS. IN GEORGIA. Georgia Railroad and Banking Company, at Augusta. Union Bank, at Augusta. Manufacturers' Bank, at Macon. All the Banks in Savannah. SUSPENDED BANKS IN SOUTH CAROLINA. Bank of the State of South Carolina, at Charleston, with branches at Columbia and Camden. Bank of South Carolina, at Charleston. Bank of Hamburg, at Hamburg. Planters' and Mechanics' Bank, at Charlestsn. Farmers' and Exchange Bank, at Charleston. People's Bank, at Charleston. South-western Railroad Bank, at Charleston. This bank, we believe, has an agency at Tallahassee, Florida.


Article from Edgefield Advertiser, October 21, 1857

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CHARLESTON CORRESPONDENCE CHARLESTON, October 17, 1857. I am sorry to think that my very first letter from the Metropolis must be the medium of bad news in the financial world. For a week past there has been nothing talked or thought of here but Suspended Banks and depreciated Bank Bills-and such a commotion has been stirred up as Old Charleston has never had the pain of witnessing since the memorable crisis of 1837. The suspension exercises commenced on Saturday last, the Bank of the State leading the van, followed up on Monday and Tuesday by the South Western Rail Road, South Carolina and People's Banks. The panic which ensued, chiefly among those who, unrecustomed to Bank operations, naturully became suspicious of the availability of the bills of the Suspended Banks, was at once taken advantage of by the knowing ones, and notes of the Bank of the State-the very best circulating medium ex. tant,-were freely sacrificed to the rapacity of speculators, to the tune of 10 and 15 per cent discount. In such a condition of affairs, all confidence seemed to be lost for the time being. Many were afraid eith. er to receive or pay out their small bills. for fear either being unable to pass them or to obtain change in making purchases-and consequently, both buyers and sellers were brought to a stand, and many good opportunities of making sales lost. On Thursday the Planters it Mechanics" and the Farmers & Exchange' Banks followed suit. By this time, the ex. citement had subsided and a better understanding of the nature of the difficulties seemed to prevail. It was shown satisfactorily to the inexperienced in Banking science that the bills of the Bank of the State under the denomination of five dollars were not only safe and available but indispensable, as the only currency that could be immediately substituted for the want of specie. Our store keepers commenced vigorously to bid for them, and those "selling off below cost' offered to pay a premium. Meanwhile measures were set on foot to relieve the community by legislation. The Charleston Delegation held a meeting on Wednesday to talk over the matter and if possible devise some means of delivering their conetituents out of this unfortunate dilemina, but came to the conclusion to suspend their opinions for the present, and adjourned without taking any action on this subject. The impression appears to prevail that a general Suspension will set all things right and place the banks and every body on au equal footing of mutual confidence. Our gay scason slowly approaches; preparations are in progress for a brilliant winter campaign in the department of public Exhibitions and Amusements. The Theatre is to be opened shortly under the management of Mr. G. F. Marchant, with R better Stock Company than has heretofore graced the Stage in this latitude. The building bas been completely repaired and remodelled,an new furniture, scenery and decorative appliances added. The following performers constitute the Theatrical Corps: Mr. G.F. Marchant, the manager; Mr. John Dyott, as leading man, from Wallack's and Burton's Theatres: Mr. James Brown, " well known Comedian; Mr. Chippendale and Mr. Fisk, from the Broadway Theatre; Mr. J. S. Smith, from the Southern and Wostern Theatres; Mr. T. Rea, already known in this city Messrs. Harrison, Aiken, Harcourt. Deverly, Lewis, St. Clair, and others. Mrs. Marchant, Mrs. France, from the Broadway and Burton's Theatres, Miss Mary Shaw, Vocalist from Wallack's and the Southern Theatres, Miss R. France, Miss S. Haisman, Miss A. G. Moroland, Miss A. Raymond. Mrs. Ren, Mrs. Harrizon, and others. The Institute Fair opens on the 18th Novemberand during the same week, we are to have the annual Regatta and a variety of other attractive Exhibitions, which never fail to fill our city with visitors. The Steam Ship Isabel resumes her regular trips to Havana on Monday next. She has been put in fine order for sea, refitted with new boilers and extra bracing and double air-tight bulk-heads forward and aft, and thoroughly renovated .throughout.-Messrs. Mordecai & Co. are her Agents and Owners in this City. To-morrow is the regular Anniversary of our timehonored Institution, the Orphan House-the exercises have in consequence, been postponed to Thursday 22nd, an interesting programme for which is in preparation. The Commissioners have appointed Wednesday as the day for the reception of visitors who may desire to examine the arrangements and system of conducting this valuable Institute. A register is kept, in which visitors enroal their names, with their comments and suggestions. Many of these leave flattering testimony to the admirable discipline and good order prevailing in the establishment, and the intelligence and proficiency of the pupils. Our Orphan House is a favorito resort with our friends from the country and is well worth the attention of those who may now visit us. The view of the city and surrounding country from the eupola is quite picturesque and repays the fatigue of the ascent. Although one special day of the week is generally recognized as reception day, the House is never closed to strangers visiting us at other times, during such hours as will not interfere with school duties and domestic arrangeinents. Our King Street Stores are opening large choice assortments of Fall and Winter Goods. In few weeks, we will expect to welcome some of the Sons and Daughters of Old Edgefield, to our fashionable promenade, and a glance around the well filled counters in King Street will repay the troubles of shopping. Your Indies will find New and Elegant Styles of Silks and Dress Goods, comprising everything rich and beautiful for the Fall and Winter fashions,-the newest Styles of Cloaks and Mantillas-most beautiful assortments of Embroideries and Ince goods-direct importation-Hoop Skirts with all the latest enlargements and improvements, &c.-This being the season for putting down new Carpets, our importers have laid in a complete stock to suit all fancies.Planters will have a wide field for selection in our stocks of Domestics, Blankets and Negro Clothswhich have been carefully put up by experienced hands. For the accommodation of the ladies, I propose to quote weekly the prevailing retail prices of goods in King Street-with which tables of our weekly Prices Current do not furnish you.-The large dry goods establishments of Baneroft & Leman, Fogartie & Stillman, Calder Brown & Co. the Carpet Warehouses of Lambert & Howell, & Baetie, the Millinery Saloons of Mrs. Parker, Watts, McElleran, and others of equal celebrity are favorite resorts for the ladies. Fine Cloths are selling at $5 to $8-and Cassimeres at $21 to $3-French Merinos 75c to $1-Alpacas 25 to 50c. Dombazines $1 to 11. Browning advertises a large assortment of English and American Calicoos, at 61 to 121 cents, Black Silks 75c to $4-Heavy Satinetts and Kentucky Jeans 25 to 50 cents. At


Article from Keowee Courier, October 24, 1857

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that any of the other Banks in Charleston would SO soon follow them. But our anticipations have not been realized. Yesterday the run of the previous day was followed up, and just as the tide commeneed, the Peoples' Bank was compelled to yield to the pressure and suspend. The immediate cause was a draft upon it by the Bank of Newberry for $22,000 in specie. The former Bank was the Charleston agent of the latter, and the balance in favor of the Newberry Bank was the above amount. As the People's Bank had received no intimation that the Bank of Newberry intended to draw its balance in specie-that was not one of the contingencies calculated on in the effort to stand up against the city run upon it. Finding itself unable to meet this sudden demand and also the constant daily demand which was present and pressing, it immediately suspended, and the balance to the Bank of Newberry remained unpaid. After this, the run upon the other Banks continued they paying every demand for specie, and keeping open for that purpose until a late hour in the afternoon. [Charleston Standard. CHARLESTON, Oct. 15.-The Planters and Mechanies, and the Farmers and Exchange Bank suspended this morning. Savannah, Oct. 15.-The Presidents of the Banks here met last night and held a consultation on the propriety of a general suspension, which was unanimously recommended. All the Banks have positively suspended this morning in Savannah, and the citizens are agreed thereto. NEW YORK, Oct. 15.-All the Banks of this city, after a thorough consultation decided upon suspension, which measure was carried into effect syešterday. Sterling exchange has advanced to 1111. CHARLESTON, Oct. 15.-Sales of cotton tru-day, 1,500 bales at 101 to 12. A "BLEEDING" PHILANTHROPIST.-A parti-colored convention met at Syracuse on Wednesday last, consisting of colored and white politicians of the Gerrit Smith and Freinont school, at which the former géntleman figured. After discussing the policy of compensated emancipation, in which Mr. Smith favored and Frederick Douglas opposed the plan, the question of finance came up and this elicited a discussion, in which the philanthropist of Peterboro' stated that he had paid money for Kansas till he was tired, and he did not know where it had gone, nor what good it had done. He said (according to the Courier's report) he had done "bleeding" to the Society. It had cost him over $5,000, whereas the Society had only raised 81,500. He said it was "riding a free horse to death," and he would no longer stand it; that he had got note after note last full for the purpose of raising funds for Kansas, and he didn't know where it had gone, and he didn't 800 that the Society was any botter for it. He said, in conclusion, he had done. The Society must help themselves, that he was tired, disgusted, and needed sleep, and if there was no other question before the house, he would declare the Convention Atlas. adjourned sine die.-Albany INTEMPERANCE is a habit that is almost certain to result in failure. Evon the mederate use of alcoholic stimulate to the man whose business requires a clear intel lect and constant prudence, is attended with danger. it clouds the perception, and creates a feeling of boldness and recklessness, that may, in a moment, thwart the best laid plan of years. The business man who indulges at all in artificial stimulants. can I


Article from The Winchester Home Journal, October 24, 1857

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Suspended Banks. The following is a list of suspended banks in Georgia: Union bank, at Augusta. Manufacturer's bank, at Macon, All the banks in Savannah. The following is a list of suspended banks in South Carolina: Bank of the State of South Carolina, at Charleston, with branches at Columbia and Camden, Bank of South Carolina, at Charleston. Bank of Hamburg, Planters' and Mechanics' bank, at Charleston, Farmers' and Exchange bank, Charles. ton. People's bank, Charleston, South-western Railroad bank, Charleston.


Article from New-York Daily Tribune, October 27, 1857

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BANK MEETING. CHARLESTON, Oct. 20, 1857. A meeting was held at the Planters' and Mechanics' Bank, at which the following banks were represented, viz: The Bank of the State of South Carolina, the South-Western Railroad Bank, the People's Bank, the Farmers' and Exchange Bank, the Bank of South Carolina, and the Planters' and Mechanics'. The following preamble and resolutions were submitted to the meeting and adopted-the Bank of South Carolina dissenting: The suspension of the Banks here represented had become a matter of the greatest expediency, as well as of necessity. as the only means by which they could extend to their customers and the community that aid which was necessary to save them from the certain results of a further effort to maintain specie payments. That as a means by which we may be able to discount busi11882 paper and purchase produce exchange, a proper arrangement for the settlement of balances between the suspended banks is now essential; therefore, Resolved, That all the non-specie paying banks agree to take in payments for all dues to them and on deposit from their customers the issues of each other. Resolved, That settlements shall be made on the Wednesday morning of each week. Each Bank shall send in by that time all bills or checks which they may hold; that after such an exchange, any balance arising in favor of either to the extent of $5,000, shall lie over until the following Wednesday; that any balance over $5,000 shall be settled by credit in a book, payable the following Wednesday, and bearing interest at the rate of 5 P cent P annum. 2d. And will also receive, for dues to them and on deposit from customers, the issues of such of the country Banks of the State as shall be redeemable in city notes. on demand, at some place in this city. And also the issues of such of the Banks of Augusta and Savannah, Georgia, as may, from time to time, be considered satisfactory. Sd. And should it, at any time hereafter, be deemed inexpedient by any one or more of the Banks to take on deposit and receive, as aforesaid, the issues of any of the Banks, then notice shall be at once given to all the Banks that have assented to this arrangement. Resolved, That the Banks here represented pledge themselves to abide by the article in the Charter of the Planters' and Mechanics' Bank, which says: SECTION 5. It shall not be lawful for the said Bank, except in settlements with other Banks, to pay or deliver out in pay. ment, or satisfaction of any demand upon it, or by way of loan or discount, any bill, note, check, or other paper of any other Bank. And for each and every violation of this section, the said Bank shall be subject to the payment of one hundred dollas, to be recovered by action of debt at the suit of the State, and appropriate one half to the use of the State, and the other half to the informer."


Article from Fayetteville Observer, October 29, 1857

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List of Suspended Banks. IN GEORGIA. Georgia Railroad and Banking Company, at Augusta. Union Bank, at Augusta. Manufacturers' Bank, at Macon. All the Banks in Savannah. SUSPENDED BANKS IN SOUTH CAROLINA. Bank of the State of South Carolina, at Charleston, with branches at Columbia and Camden. Bank of South Carolina, at Charles. ton. Bank of Hamburg, at Hamburg Planters' and Mechanics' Bank, at Charleston. Farmers' and Exchange Bank, at Charleston. People's Bank, at Charleston. South-western Railroad Bank, at Charleston. This bank, We believe, has an agency at Tallabassee, Florida. A CANDID ACKNOWLEDGMENT OF AN UNDOUBTED TRUTH-At a meeting of the proprietors and managers of the Western Railroads, held a few days ago in Columbus, Ohio, a debate arose concerning the affairs of the roads, when one of the members remarked "that the milroads of the country never could repay, if they were disposed, the debt due to the newspaper press for its powerful aid when the idea of a. railway had to be explained and popularized-the public benefitsshown, and the people induced to come forward and associate for the purpose of accemplishing the great works that now need no advocate." The same gentleman, in concluding a speech on the subject, said, "he could not forget the amount of unpaid labor performed in the infancy of railway building by the only men who could reach the popular ear and the popular heart in the most effective manner." We believe, (with the Alexandria Gazette,) that in regard to many of the railroads of the country, they owe their inception, progress, and completion, mainly to the exertions of the newspaper.


Article from Arkansas True Democrat, November 10, 1857

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NO. 5. List of Suspended Banks. IN GEORGIA. Georgia Railroad and Banking Company, at Augusta. Union Bank, at Augusta. Manufacturers' Bank, at Macon. All the Banks in Savannah. SUSPENDED BANKS IN SOUTH CAROLINA. Bank of the State of South Carolina, at Charleston, with branches at Columbia and Camden. Bank of South Carolina, at Charleston. Bank of Hamburg, at Hamburg. Planters' and Mechanics' Bank, at Charleston. Farmers' and Exchange Bank, at Charleston. People's Bank, at Charleston. South-western Railroad Bank, at Charleston. This bank, we believe, has an agency at Tallahassee, Florida.


Article from The New York Herald, January 19, 1858

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The Assistant Treasurer reports to-day as follows:Total receipts $79,111 27 Total pay ments 139,348 23 Total balance 2,873,826 12 The receipts to-day include $61,000 from customs. The duties paid at the Custom House now are principally on goods entered for consumption from warehouse. The direct arrivals are very small, many of our packet ships coming out in ballast. Mr. Orville Oddie, of the firm of Oddie and St. George, has been elected a member of the New York Stock Exchange. The bank returns for last week show the following variations in the aggregates, compared wh the week previous :Increase in loans and discounts $681,005 1,034,428 Increase in specie Decrease in circulation 266,139 1,781,627 Increase in deposits, actual The increase in specie and in discounts is more than offset by the increase in actual deposits, showing an increase in liabilities beyond their assets. The accumulation of specie under these circumstances is an evil. With superficial observers the large increase in the specie reserve of our banks is held to be a complete evidence of returning prosperity. In this they make a very great mistake. The fact is quite the contrary. Looked at in the proper light, this movement shows that in the direct degree in which the banks show a plethora of specie, the collections from the country or interior cities must be the result of a depletion in quarters where it would render better service. If it was not so, and trade was on a better footing, produce and not specie would supply the means or method of remittance. In these bank statements we have the best argument to prove that there exists a general derangement, such as cannot be set right until commerce shall resume its former activity. When we see the current of specie setting from the seaboard to the interior we shall then hope for a healthy and general improvement; but until then every accumulation of bullion in the banks of this city will be but adding more dead weight to a burthen already too great to carry for any length of time. The channels of trade have been drained of bullion to pile up in the vaults of our banks, nearly every dollar of which is so much added to the demand liabilities of those institutions. The New Jersey Railroad and Transportation Company have declared a semi-annual dividend of five per cent, payable February 1. The Exchange Fire Insurance Company has declared a semi-annual dividend of five per cent, payable February 1; the Brooklyn Fire Insurance Company a semi-annual dividend of ten per cent, payable February 1; the Farmers' Bank of Virginia a semi-annual dividend of five per cent, payable on de mand. The earnings of the New York Central Railroad Company in December, 1857, amounted to $652,299 17, against $687,576 71 for the same month in 1856, showing a decrease of $35,277 54. The Cincinnati, Hamilton and Dayton Railroad Company earned $40,319 36 in December, 1857, against $50,015 95 in December, 1856, showing a decrease of $9,696 59. The Comptroller General of South Carolina has demanded of the suspended banks of Charleston payment of the second month's penalty for suspension of specie payments, under the act of 1840. The Planters' and Mechanics' Bank and the Southwestern Railroad Bank have anticipated the demand, and paid the penalty. The other suspended banks of the city have not yet paid. The Charleston Courier maintains that the Comptroller General has no right to exact this payment, the same having been released by the act of the Legislature at its late session, suspending the operation of the act of 1840. The earnings of the Milwaukie and Mississippi Railroad for December, 1857, were $41,500, against $30,000 for December, 1856. The company run about 100 miles more than in 1856. The land sales of the Illinois Central Railroad Company for the year 1867 were 335,722 acres, for $4,598,211. Sold previously, 865,211 acres. Total since commencement, 1,200,933 acres value, $15,311,440 40. The total receipts during the year 1857 were $2,292,413, against $2,434,878 in 1856. Cash applied to interest fund during 1857, $336,848. Total so applied, $1,118,521. The Panama Railroad Company, on paying their usual semi-ansual dividend of six per cent, accompany the same with a model report. This shows what can be done by railroads properly constructed and operated. The greater portion of the road is, we understand, now relaid with lignumvite ties, which are almost indestructible, and but for the difficulty of procuring large timber of this species, the whole would have been finished the past season. Iron bridges are taking the place of the former wooden ones, and no expense is spared in keeping it up to its design. For some time past a line of steamers from London to Aspinwall and from Panama to Melbourne has been contemplated, and also a rival line from Southampton to Aspinwall. But for the English government requiring the steamers India, the arrangements would ere this have been completed, and cannot now be long delayed, as it is the most direct and safest route, and eventually will command the preference for merchandise of value, as well as passengers and specie. By the report of the Western (Mass.) Railroad Company for the year ending Nov. 30, 1857, it appears that the capital stock paid in is $5,150,000; the funded debt is $5,633,735, an increase since last year of $154,705; the floating debt is $443,140 50, an increase since last year of $83,080 73: the total of funded and floating debt is $6,076,875 50. The average rate of interest per annum paid through the year was five and a half per cent. The value of the sinking fund is $1,793,969. During the pear the passenger trains of the road have run 316,807 miles, and have carried 629,054 passengers; the freight cars have run 589,706 miles,and have carried 377,507 tons of merchandise. The income of the road during the year has been $1,910,342 48, of which $808,977 37 was for passengers, $1,007,185 62 for freight, and $94,179 49 from other sources. The total expenditure for working the road was $1 55, leaving a net income of $826,223 93. From this two semiannual dividends of four per cent have been paid.


Article from Alexandria Gazette, January 21, 1858

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The Comptroller General of South Carolina has demanded of the suspended banks of Charleston, payment of the second month's penalty, for suspension of specie payments, under the act of 1840. The Planters' and Mechanics' Bank, and the Southwestern Railroad Bank have anticipated the demand, and paid the penalty. The other suspended banks of the city have not yet paid. The Charleston Courier maintains that the Comptroller General has no right to exact this payment, the same having been released by the not of the Legislature, at its late session, suspending the operation of the act of 1840.


Article from Nashville Union and American, July 17, 1858

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# Bills of Lading as Security for Cotton Shipments A feature in the cotton export trade which has of late given to the trade great protection against loss is the deposit with banks of the Bills of Lading as security for the bills drawn against shipments. This has grown into an almost well established custom. Merchant shippers appear to be satisfied that it is beneficial both to the Bank and to the Drawer of the bill. It places a branch of trade peculiarly liable to loss from failure or insolvency almost beyond this contingency. The beneficial effect of the practice was strikingly exemplified in a statement of the transactions of the Planters' and Mechanics' Bank by the President, Daniel Ravenel, Esq, from the 1st of July, 1857, to the 1st of July, 1858, including the period of suspension. Of the whole amount of sterling exchange furnished by the Bank, amounting to nearly $1,200,000, all but about $100,000 were secured by bills of lading, five of the bills of exchange only being returned under protest of non-acceptance and non-payment, three of which have been since discharged in full, leaving a deficiency of les than $1,300 to be paid by the drawer here, the sales of the cotton not covering the sum for which they were drawn. The following description of the mode in which this branch of business is transacted will show the simple efficacy of the operation. When Exchange is taken with a Bill of Lading, the Exchange and the Bill of Lading are accompanied by an agreement between the Drawer and the Bank, in the form of a letter of instructions, to the agent of the Bank, to whom the Bills are sent, stating the understanding of the parties to be, that if the Bill of Exchange is accepted, and the acceptance is satisfactory to the agent, the Bill of Lading is to be given up to the acceptor; but if the drawer decline acceptance, or the acceptance is not satisfactory, then the agent of the Bank is authorized to place the Cotton (or other articles as the case may be) in the hands of his broker for sale on account of whom it may concern--the proceeds to be applied to the Bill. In the event of the non-acceptance of the Bill the agent of the Bank is authorized to effect insurance at the expense of the owner. Under this authority it is not unusual for the agent and the acceptor to agree upon a broker of responsibility, into whose hands the produce is placed for safety, on account of the parties interested in the Bill.--Charleston News, July 10.