Southern telegraph. (Rodney, Miss.) 1834-1838, 1838-01-16
~ithdraaraT Of the branch of the "Uni,ed

"tfardra! OF the branch OF the "Unitcd
States Bunk"
This WAS succeeded by tho application
for the West Fe!iciana and Woodvi!lc Rail
Road, with banking privileges, which was
opposed as being d IN erous in its tenden-
cy, as it would lead to numerous app,ica-
cations, which being urged and demanded
as matter Of right under the precedent,
couli not be resisted. But the interest en-
listed and the PLAUSIBLE argument of aiding
general prosperity, carried it through, and
| need not add that the predictions of the
time have been fully verified.
In eliciting your attention to the charters
and general operations OF our banks, | shall
con'ine my rcmarks mainly to the Planters
Bank: not for the purpose of charging abus-
es upon that institution to the exclusion of
others, but for the sake of brevity, and for
the reason that the State being deeply in
terested as stakeholder and director, and
its character and credit being in some de-
gree involved in the management, it more
especially claims your attention. Nor is IT
my purpose IN touching upon what my
consider errors, to inpugn or animadvert
other banks. Anger and ccnsare would
probably be directed 10 those who brought
the mass of them into existcnce-to those
who opened the way. tempted and invited
to enlarged issues; and to the flilare of the
Legislature 10 prescribe the necessary re-
straints, rather than to the banks or their d.
rcctors.
The provision exempting the stock Of
this bank from, taxation, and the one pro-
tecting its transactions from;thoroush inves-
tigation, have always considered obIec-
tionable, on account of their unequal and
discriminating characters. Touching its
management, so far as am advised, | am
induced to believe that most, or all that can
properly be objected to, may be traced, first,
10 its participating too freely in the views
and interest of various commission houses
and secondly, in its becoming depository
of a portion of the public revenue-the one
by Il union of interests strongly tempting to
avarice--the other, by its increased means,
prompting to over issues.
| The almost unlimited credit given to the
accepted paper of these Commission houses
and the favorable rate of exchange, induced
the Bank in some degree, 10 overlook Its
obligations to the community at large, and
to indulge too freely in the purchase Of
bills; which give to these houses the use
and crontrol Of an undue proportion o! lis
capital, as it was through them alone, tina,
the planters and traders with very limited
exceptions) were enabled to procure money
Stimulated with the prospect of gain, these
houses extended with a reckless inpru
dence their operations, producing a ficti
tioas state of things indicating by the en-
HANGED value Of property, redundancy il
the money market, when in point of fac
the supply was SO inadequate to the urgent
demands, that the rate of interest rose e
double It's ordinary standard. The charge
has been made and reiterated, that the
B inks have overacted, and that the policy
pursued by them has contributed largely
to the embarrassnents of the country. AL
though their acts are not entirely defensi-
bic, vet much may be said in extenuation
Where lies the original canse? WAC
tempted and urged them to this course?
The answers may be found in their recep-
ton of the public deposites, and the instruc-
tons given by the Secretary of the Treasa-
ny to the Deposi'e Banks.
| 1t seems 10 me there was an evident I'M
propriety in the Planters Bunk becoming
the receptacle Of the national funds for sew
eral easons The benefits to be realized
to bank. from the use of fund held by
so precarioas tenure, must be greatly
impaired, if not destroyed; and its loans
must be embarrassing to all parties, bat es-
pecialIv SO to the institution. 1t gave an
1 opportunity for an insidious tamPerlng,
which with different materials to operate
upon, might have led to an influence and
control hig lilly derogaiory to the dignity and
sovereignty of the State.
Mr.. fancy, in his letter to the Girart
/ Bank, ssvs--ssFhe deposite of the pubic
i money will enable you to afford increased
facilities to commerce and to extend you'
}, accommodations to individuals; and as ths
duties which are payable to the government
i arise from the business and enterprise .
the merchants engaged in foreign trade, !
is but reasonable that they should he pre-
! ferred in the additional ACCOMMODATIONS
which the public depcsites will enable yoa
institution to give, whenever 1t can be don'
withon, Injustice to the claims OF et!le
classes of the conmunity.. The two bank
of this State, SO far as am enabled to Judge
have acted in accordance with the spiri
! and letter of this instruction, and particulars
~ as regards the preference to be given
and it may be worthy Of remark, tina. YER!
/ large portion of tire fund thus loaned is nav
in suspension.
In This posture of affairs the "Specie Cir
. cularn made its appearance, which had Ia
\ effect of disturbing the course of exchange
{ by making gold and silver worth more thar
bank bills, and causing sudden denlan
,l c,,i;nnad r,a f,r snecie The bank