Columbus Democrat., 1838-02-10
GOVERNORS MESSAGE

PORT.
10 The Senate aud House ct Representatives. q
the State Of Mississippi:
Uerewith transmit the Report of the Bank
commissioners of the State OF Mississippi, shew-
inn the situation of that portion OF the Banks ex
oro;nsd nv them. The facts therein disclosed,
and tbe nlagitude of the abuses proven TO exist,
cannot fail to arrest the serious attention OF the
Legislature, aud demand a speedy and efficient
correction.
Itappcars nom the report that few persons
have obtained the control Of the various banks,
and made most of tho loans to commission mer-
chants SPECTATORS. and Offices of the banks, and
we are left to infer that the large borrowers are
sotay unable, at present, to pay any part OF their
losns. The banks, therefore, are now looking
Ia the planters--tho drawers and endorsers Of
the blls-.-for their security, and depend entirely
on them for ultimate payment This deplorabe
result has been mainly effected by the course
(which the banks have pursued in applying most
ei their funds to the purchase olbis Of exchange
2rAwn on cotton monopolists, and not predicated
On funds in hands, or even exAected at the time
aud place of maturity. Two causes have led TO
This policy. In the first place, the commission
merchants contrived either directly or indirectly,
10 obtain the control OF the Enthusiastically, the
unjust practice Of the banks in taking usurious
Interests, in the shape Of exchange, induced them
,o discount all the bills they could obtain, and in
yest but small portion Of their capital in the
aiscouot Of notes BY 50 doing, they we're ena-
bled to make large profits for the stockholders,
hut depriyed that portion Of the people who were
unable to obtain New Orleans acceptances, ofuli
n,r,;c;cation in the benefts Of their loans. The
i,anks seem not to have considered that the abill-
h. Of the commission merchant TO pay his accep-
1anccs was dependant, almost entirely, on the
shipments ofproduce BY the drawers bills, and
that whenever they discounted paper not predi-
Gated on remittances OF cotton, but on credit
alone, they thereby hazarded the safety Of their
several institutions and jeopardzcd the interest Of
tho whole community.
The seventeen banks and branch banks ex-
cmined by the commissioners, had S3U3,304 20
Of specie in their vaults, and have made advances
on cotton to the amount Of $3l4,307 II, while
their circulation amounts to $3,S40,32l--ihclr
deposites to Sl,4ol .24S 06, and the amount
kdue them from other banks exceeds their lab-
ties TO the same The report does not show what
amount oC their notes and bills discounted are
available now or will be in agy given PERIOD
The ability Of the banks to resume specie pay
ments, and at tho same time to keep IN clrcula-
ton currency sufficient 10 meet the de.s.ands oi
the country, depends on the availability Of their
discounts. Judging from the vast amount Of
loans mado to few rliv v.ilials, combined with
a knowledge of the TACT, thai the means Of the
sorrowess consist mostly OF unrroduciiye proper
~, conclude that the banks viii not reaize
much from those who are heavily indebted ios
several years TO come.
The abundant resources Of the State, howey-
er, together with the fixed determination mani
Tested by the people TO incur no new debts which
they can possibly avoid, will have favorable IN
huence in restoring confidence, and soon enable
the banks to resume specie payments. Harmo'
aieas action, is nevertheless indispensable, imt
the banks should be prohibited from extending
,hoiI issues until the resumption is effected. Iht
present circulation Of our banks amounts to more
than six millions Of dollars portion OF II, how
ever, is not in active circulation, but held by The
several banks. A circulation equal 10 one-iisss
of the annual products of the country is admitted
by political economists, to be amply sufficient
Our exports cannot be sefcly valued at more thai
fifteen millions of dollars. The product OF tn
soil alone can be relied on 10 pay our iorelgI
debt and rel Estate our credit. Excessive baiii
issues would only cause our currency to depre
clate still more, procras,nate the resumption
specie payments, and demoralize the country
Aa Impenous sense Of duty requires me TO cai
your attention to the situation and conduct OF ~
Planters and Agricultural Banks--chartsred e
the express purpose Of promoting our great agri
cultural interests, they have, from their com
mencement, disrogarded their respective charters
Totally neglected the great objects Of their crea
l'on, aud dedod the legislative will Of the peoPl
n rethsing an examination OF their affairs p
commissioners appointed by the Legislature 70
The express purpose Of thoroughly inspecting To
operations Of every nl6nied corporation IN III
State. ThAlaw under which the commissioner
were chosen, was approved moro than a wee
after both oi these Banks had suspended speci
payments, and thereby placed their franchises 3
the mercy Of the Legislature. A charter to
Corporation is a grant Of priyleges--any viola
Ion 6ftheir powers is a nstsMssr, and works
Forfeiture. One mode Of examination prescribe
IN charter does not necessarily exclude sue
o;her mode Of visitation as the Legislature mn
oes'gaate neither can the grant Of charters I
tAose banks be considered as contracts. n
bonus was paid by either: the great object {
theW creation wns The promotion fthe plan''n
and commercial interests OF The State, by the dis
ulouiion ofloaus according 10 the spirit OF the
respective charters, and al the same time affor
silver.
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