Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1838-06-16

capital 90 iie gay Of banking, ne pnta-se % o.
r lag ~ whcne ver'ths parties wishing 10 engage w
i can pfoduc tie necessary securities ~ uie AN''i'
i ties appointed - receive item. hpN VIZ auPfo
ihai enc or mole individuals have eapiia' oi y"
: hundred thousand doHlis. which they Hsh 10 en-
! poy in this way-lhs lass requires nat one ban
that amount must b. invested 10 approved stock
paying an interest Of al least iye pee cent per an
mum three eiglths IL tie amount u sevcnly-iv
thousand dollars, must be invested ~ rea estate a
an approved valuation, which Is made over by lhtit
with the 1--WE per cent stock, % ne comptfolci' y
: trust for the benefit Of The note lo.dfTs by whcl
means, seven eglih5 OF the capital Is placed teyon'
the control Of the stockholders OF dTect unu
the final redemption Of oil iheH notes ~ crcula
tua: The remaining Oac-cghth Of Tie capital q
twenty-five thousand dollars, must be IN spcie
aud 10 the vaults Of the baDk before they are allow
ed 20 issue sny paper When oil these arrange
ments are made satisfactory 10 die comptroller, he
furnishes The company with notes Of any design
they please, but At their expence-he takes charge
Of The pItea and furnishes notes To- the company 70
be amount Of their whole capital tro hundred
thousand dollars, each Of which he endorses ~ The
law directs and any note N circulation without his
endorsement on Il IS not worthy O credit, and there
Is penalty attached for ssuin them. The COM
pany are thea efi 10 their own discretion as 70 the
manner ni issuing hul tue law says, htRs far yot
shall 60 aud no farther Prudence, Of course, would
dictate 10 men whose PoPerty was AZ stake, to ito a
very cautious business, aud confne their operations
10 good bBiness paper having short time 10 run the
quick return Of Their capital thereby enabling thyn
20 meet all emergencies. IL would be here well to
state that whenever one Of these banks stop specie
paymeai The company dong so are not only com
PEELED 10 wind up their business, but to pay the
bote holder an interest Of fourteen per cent per an.
nun, from the time he presents his paper for specie
at the counter Of the bank TO the time of his Obtain
ing il from Tic comptroller.
will now suppose such bank is conducted rs
recklessiy as il could be by men acuated by no prn-
ciple Of honor or honesty they would immediately
issue the whole amount Of their capital, which would
be seven Collars OF paper 70 one OF spcce in their
vaults: pane cbsues, there more OF their notes
presented than they can redeem, the cashier IS
bound to endorse them, not as The cashier OF GER
tain bank IN this Town does, by printing lis aame
with type, but in his own handwriting, ,thtng the
day aud date Of presentation the mole holder then
goes to The comptroller an. presents him with these
endorsed notes i is men his duty to order The sale
81 lhe sloess and real estate placed in bis hands
as .'ic law directs Now admitting that the stock
holders make away with all The notes discounted,
specie on hand, bank books, &c. &c which they
bad on hand al the time they suspended specie pay
nents, there Is enough eit 10 redeem one hundred |
md sevcnty-fve thousand out of two hundred thou
sand dollars put in circulation This is the most
Extreme case that could happen under this system.
nov contend, that by ii the interests Of the
iockholdcrs would be promoted by lending their
apital on the safest security To be obtained, and
heir credit with the greatest certainty of prompt
endorsement. The interest Of The holders of bank
oics would be promoted by havnga guarantee for
heir redemption, the double security Of the proms-
Dry notes and bills Of exchange, in the discounng
which they were issued, and of an equal amount
public stocks aud mortgages pledged for the spc-
tic object, thus placing the certainty of ultimate, if
81 immediate resumption, beyond the contingency I
commercial disasters The interest of deposit
y would be promoted by having the right at all
mes to draw out spcc, or bank notes, aud thereby
enjoy the benefits Of the security afforded to note
lldefs, or IN case OF q suspension Of payment by
&c bank, they would have for their reimbursement
e entire amount OF assets existing in the form of
scountcd paper and Of specie, and Of such por-
Oh OF the lngeaed capital as was not pledged to
&c note holder And lastly, the interests OF The
would be promoted BY greater stabIl-
Y In The value Of the currency seeing that expan-
nns and contractons would moi be 50 liable to oc-
IT under system founded upon capital placed
r the limo beyond The reach of directors and up
! a credit 10 which limits would be prescribed BY {
e prohibition TO issue notes beyond c amount /
property pledged in the hands Of the complro-
!, and BY The known fact on the part of the dlrec
rs that IN ease Of an excess of issues, they would
We nothing TO rely upon 10 meet the reaction and
We the bank from the penalty Of fourteen per
Mt per annum interest, besides the forfeiture OF
stoncc. The vast superiority of this, over our
,rnieous moon shine system is 50 apparent that
,em iusthcr comparison unnecessary.
That our present banking system Is wronr in
rineipc, also contend for can any thing be more
rcpos,crous, or have a more injurious tendency
lan to grant 70 u tw individuals exclusive privi-
ges, tos the benefit of the lew 10 the injury of the
lany, and that too, without their rendering an,
uhlle service for this privilege. This Is the very |
ssence OF Federulism-t Is subversive of one OF
ne great principles Of the constitution not only OF
~ State but that also Tor which our toretathers SO
ahly fought THAT all men are created equal
hat II IS nlnlnus trust is now visible to all: il is
MY necessary 10 reflect little TO satisfy any in
iring mind ol the iact lnok back one year, aud |
We see that our State owed large foreign debt /;
II supposed thai the proceeds of the crop oil COTTON,
10 fifteen millions Of dollars, would be
ppisd 70 the liquidation Of this debt; but is not the
act alarming when II Is ascermined, that By the
,anss getting control Of tie great staple OF our
State, and acting IN the triple capacity Of Banks,
Commission merchants aud Brokers, that four mil
ions Of the fifteen is absorbed by them; most of
which roeS out Of the State tn foreign stockholders.
The whole fifteen millions does not pay more than
en- PER cent on the capital Invested in agricultural
pursuits, SO that instead OF our young and vigorous
State advancing last year IN wealth, she has made
rctrogade movement, owing to an unjust banking
system, pressing Ike an incubus upon her aud prey
ING upon her vaals
To you, sir, as the chief magistrate OF the State,
The people look anxinusly to exert the power vested
by them IN ypHr hands to check the abuses al least
of the present system; and il on mature dclbera-
lion, you should pd any other better adapted to the
interests aud geni0s Of our citizens, it is right the
people claim that twill he recommended 10 our
next Legislature. Much is expectcd from you, ow.
ing to the fearless and patriotic m1nner you stepped
forward the last session Of our Legislature to pro-
'ec the rights aud interests Of the people Of this
State by using your veto power 70 preyent fresh
swarm Of banks 10 assist in flooding the country
with their irredsemahle issues. Notwithstanding
the vile SANDERS and reproaches heaped upon YOU