Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1838-05-08

nfoIe egalnst that. system
OF goIi specalator, which has
involved ia almost ruinous loss
es poinIe out that the manner IN
who bank stocks were subscribed, was
a fiction which rendared them as unsub-
sscI4iai as wind. We insisted, that the
multiplication of banks would fill the coun-
try with spurious, irredeemable curEen--
cy. Much as our course was denounc-
ed at the time, we are willing to sq5rait 1t
to the test of passing event.
The suspension of specie Payments
found our Legislature, then as now, filled
WITH tie Dfioefs Of tie different banking
Corporations in the State. last January
twelve months, majority ofthe members
of the Senate were directors of banks
and the number in the House was. very
large. At the last session, a single bank
had trdirectors in the Legislature, two
in each house. We do not question the
honesty or patriotism of any member be-
cause he is directoS, but we are opposed
to the principle Of making man a legis-
lator in his own cause. The law has wise
ly provided that no man shall be q Judge to
administer the law VIXEN he is interested;
why then should he he permitted to make
the law which is to regulate interests, IN
which he is so deeply involved? After the
suspension of specie payments, the Legis-
lature adopted series of measures which
might be anticipated from a BODY so con-
stituted. Banks were multiplied, whose
were destitute of salutary regula-
tons. Instead of curtailing their opera
tons, many of the banks expanded and
filled the country with a currency in which
the public could have little or no faith.
The commission merchants havjr,g fail
ed, 1t became necessary that rev factors
should take the business. Asa tenonora.
ry measure, we were IN favor ofthe banks
dong SO, Tor the purpose of aiding the
planter and importing specie to repienish
their vaults for the final payment Of their
notes. But instead of importing specie
or getting in their notes with exchange
furnished by the cotton-manv of the
banks have. used this fund as a means of
their operations, while others are
charged with buying up their own notes.
Many are now demanding to know what
the banks have done with our cotton.--
We can assure them that this enquiry has
only commenced; but that, when the final
returns from Europe are received, many
a planter viii find an empty purse instead
Of the anticipated lining.
The excitement on this subject has not
When the late Legislature assembled,
Inc bank commissioners communicated
heir report, document, in its character,
every way unfortunate. 1t was little
more than an apology for liccnctious
system. We doubt not the sin.
'erity and honesty of purpose of those
Who made the report; but it was replete
With doctrines at war with every principle
IF sound banking. 1t had most iniuri-
ous influence upon the Legislature, giving
IS It did, a fresh impetus 10 the spirit of
rotten banking which then pervaded both
branches Of our Legislative assembly,
One single recommendation, which it urg-
I'd, destroyed the character of the report
With all thinking men-that specie paw
nents should not be resumed till the wear
1889. Banks will always be corrupt, and
domestic exchanges high, so long as bank
notes are not convertible into specie. 1t
S the great check upon excessive banking
and the on y regulator of the exchanges.
These arc times when the banks reap a
rich harvest of corruption, and "a veil of
obscurlty hangs over their solvency.
Il sPecle-payments were now resumed,
on New York would sink to 3
per cent. in thirty-days. When the banks
honestly pay specie for their notes, ex-
change will never be more than insurance.
and the cost of transporting specie from
point 70 point, for the plain reason, that
the holders of bank notes would TRANSPORT
specie rather than pay more. interest
would dictate this course
II Is also great error. to suppose. that
The interest of debtors is promoted bv an
lrredeemable, unsound currency. Eyart,
man who pays debt now, is ol,lioec 10
suffer discount upon the money used.-za
But even if this state of things were adj.
Vantageous to debtors, is it fight that al
whole community and its product should
be taxed for the benefit of a class. which
n majority of instances is embarrassed
Irom Its own improvidence? The policy
s IN every view weak. and shallow. if
me banks can resume, it is their duty to 4
40 SO at once, although their interest will
prompt themto delay resumption as lono
IS possible. We have no doubt that the 4
sound banks are able to resume now
EheeNew York and New England banks
are anxious to resume in the course ofnext
month. Exchange on Europe is already
below par, and specie is flowing into tbe
United States by every packet that lands
lPon cur shores. Foreign demand for
specie was the excuse for suspension: the
Importation of specie should be the sionsl
Tor the redemption of cash payments gbv
The banks. We do not believe there will
be SO favorable nd opportunity for m.
sumption for the next two wears. rFbos
PlanteT's the Commercial and Woodv;lla
banks could resume in two weeks. and an
The banks Ia this State which ever will :.
sumo, Will be able to do so in ninety davs.
6ythat time they will have received an
their returns for shipments Of cotton sor.
can snakels available-and those hanks
.hae cannot resume with this cfor win No.
yer Beenabled to effect a resh n,S5t;o,s 6 T.
s iale 20 talk Fl giving the banks sfVs !,
luIes CROPS IN order to enable Them ID re-
sIlIae.~f they obtain any. n1ol}ie, 7fTg,s,o !,
WI be lov an aesf4I,l ,,s,,.l d y