Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1838-06-16
The bank! The Banks!
Fos rnr Dfrocn,r.

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STA From The nellacholy condition Of the ca
rsasy Of CIR state, il is not wonderful that The rre
cause th-re i ior reform, should hive aroused an
engrcssea The whole attention Of the people p
iheF admire the generous spfit with which they ie
and assert their interest IN this important question
than hame them Cor rot taking it into eonsideralo
ere now. They have borne tie abuses Of CORFU
banking system until orbeaanee did not only ceas
10 be virtue, but was almost a crime.
When The character oC oar currency. (Which
sound, would be one Of The greatest blessings com
maniiy can enioy,) is openly iayadel by those viii
were made guardians ofil BY the people from whom
al laws derive their authority It is but natural to ex
poet that 81 soon as they were fully sensible Of th'
fact, which nothing but lis efec, on them indiyida-
ally did it appears make them. that they would as
serl their rights in voice winch would be heard even
in those dark and oal reeeptaeic,, called directors
rooms
am one If those who believe eonscicnliously that
the present Banking system Of this state is RADICAL
y wrcag, rom the slender seegriiy given by the
stockholders. and that no legislative enactment can
guard such system so as 10 maintain sound cur
= rrrvy; 5f % hooking over many Of the charters q
Banks IN our state, il would appear that the various
checks and penalties imposed on these chartered in
stitubons, against uepartu,e avn mcr legitimate
business or for travelling beyond the rules preserib-
cd BY the laws, wei as every sense Of moral hon.
csty, naturally supposed thai men placed in response
bic Offices ought 70 possess, would be sufficient to
guard against evils which we are nov suffering un.
der. But the individuals who nav haze the drec.
ton and control Of Banks, are as snguari marked
by their fortune thus Car as their crimes Instead of
aioning Tor their former conduct after the suspen-
sion Of specie payments took place. by any wise or
popular measure, they have fund il The enormiy o.
one act cover and defence for series ofabuses
which, ifperasied in must prove fatal to the best in
rests Of our state. Struck with the principal figure,
VIC do not sufficiently mark in what manner the can
vas, Il filled up. Yet surely ii ia not less crime 10
food the country with irrcdcsmabe promises or the |
purpose of inducing wild speculation, han Il IS At.
ter getting the community Gin their power" 10
hrcc them to give control Of their cotton crops 70
The institution 70 which they arc indebted, for the
purpose Of using tie sound funds procured By these
means, IN buying up their issues at from twenty 10
forty PR cent discount These are bcis that can
moi DO denied, and are only specimens Of The abuses
praciisei by Mississippi Banks tftdcr our present
system. do not wish il understood that depend
On mere assertion for The support either Of the char
gcs made on cur Banks or . support my opinions /
relative % our banking system; therefore win lay
before you a. far as my humble views on the subject
has allowed me to investigate our present system, G
(iamiiarly known to our planters and merchants as
he mooHshine system,l and the New-York general 9
banking law, DIETER known as the Scotch sysieml !,
or hepurpose Of asccraning, i possible, which is
no most safe and best adapted 10 the wants aud in b
erests Of the community. viii first lay down as \
he basis Of this investigation, that there are Eve i
Instinct interests 10 be consulted in the management d
4 banks Of circulation, viz That ftlc sockhold- 4
~, ~ the bank note holders, Of the depositors, Of
ne b2EsaNcrs and Of The community; and that sys- Il
EN- WSss#i nsnres security 10 most OF al Of these C
lasses, ought 70 be adopted. Inow contend that tc
here y but one Of these interests consulted BY oar y
system, which Il that Of tile stockholders. d
sustaining this assertion, and bv way Of ilustra- le
on, will suppose bank Of two hundred thousand %
oars IS chartered, according to the pcrnicous sys y
em oi our state, which requires ten per cent 10 be 81
and IN specie, or the notes Of specie paying banks, e.
eiofe they can commence operations So soon as I
10 twehty thousand dollars IN paid in which IL done
y select lew who intend 10 get control Of the in.
liiuion they allowed 10 issue their notes, which p
We know from experience, are always dea out libc-
ally at FIRST and 10 not few instances 10 tic very
lockholders who took stock enough 10 sare the char
er, for the purpose Of rcunding probably the mon
y they borrowed Idr that special purpose. But will
dnit they actually have this ten per cent bona Eide
'apital when they commence, it is afterwards OPP /
oaa with the directors TO call in the balance Of the
nsainaenls wien they please Should there be ma.
ny stockholders besides the directors aud friends,
these calls are made often either for the purpose o
getting any funds they might have from them or
10 force them 10 dispose Of Tie sock on which they
have paid portion TO the directors or their friends
but Il y always understood That the directory ret
control Of the Bank by taking enough Of the Stock
with their individual notes. 10 control the election OF
officers; this matter settled, they 20 10 work III good
earnest; they issue largely until ih4S ret GU, Il cir
cuaion Of from thirty 10 iiIiyslolars in paper for
ono ofspecie IN their vaults of which the directors
get large portion and generally invest Il in lands
and negraes-a paaic ensues, demand Tor specie
is made, and they are compelled 81 course, 10 stop
payment; the note holders are alarmed; they COM
mcnce suit, and while il pending the dcposiiors
demand their funds and are told there i nothing for
them bat their own bank paper, which they have
either 10 take or 10 commence suit as the note hol
ders did. While MI this is going on the notes Of tins
bank become worthless, and those holders Of them
that have not commenced suit, freely dispose Of them
f,r any thing they can gei =, lie same time those
who hold nominal'y good dea! Of stock by putting
in lheir nArilaial n.atns MAKE irnnsi.rs ~ ihee ~.