Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1838-01-20

ny mo eject ms institution, II should be
influenced from higher considerations,
that of the interest and prosperity Of the
whole community. All it can desire, is
an ample indemnity against the risk and
any ultimate loss on the bonds. 1t would
accord better perhaps with the character
and interest of the State, to substitute for
this provision, the insertion of some addi-
tional security 70 the State. N
There seems TO be some ambguityN~
the construction to be placed upon Tho
eighth section, as to the value to be fixed up
on the property mortgaged for the payment
of stock by subscribers From its read
ing arrive at the conclusion, that all the
property mortgaged for that pusposc, with
the exception of houses, is to be taken at
its fair valuation as fixed by the commits
sioners. From the ninth section under
stand that the corporation is invested with
a discretionary power to loan, to nego-
tate, to take mortgages and pledges, and
to discount on such terms, and such secu-
rites as they shall Judge proper. This
clause would seeem to apply TO mortgages
given for the payment Of notes discount
ed, and not for those given for stock; and
vests the power in the corporation to take
! the property proposed to be mortgaged at
| It's estimated value, or to make any deduc-
ton they may think proper. The twenty
sixth section, however, makes the discre-
tionary power general, and the inference
is, that the board of directors have the
right TO receive the mortgaged property
at its appraised value, both in payment of
stock subscribed for, and for the payment
of notes discounted. This feature must
be highly Objectionable. 1t is calculated
to produce heartburnings and much dis
satisfaction. If the property of one appIi-
cant be received at valuation by the COM
mssioners, and that Of another be redu-
ced, the consequences may be readily con-
ceived. therefore recommend that this
discretion given the board be restricted;
and for the better security of the State,
that it BE- enioined upon it not to take prop
erty offered at more than one half the val
ue placed upon ii by the commissioners,
or Mt most tWn-thirds.
The demands that are now bearing
most heavily upon our citizens, and in the
arrangement Of which there is most diff
Guilty, are those Of non-reSidents; and if
prolonged suspension OF specie payments
on the part of the banks should be deemed
Indispensable, general demand for spe-
Gle in payment Of debts may be apprehen-
ded. Under the Constitution of the Uni
ted States, bank notes are not legal ten
der; yet from general usage their receiv-
ability in payment Of all debts contracted
in the State is strongly implied. The per-
son who contracts debt. has the undoubt-
ed right to stipulate for its payment in
such issues as constitute the circulating
currency of the State: but from their rea-
dy convertibility imo specie for years past,
the necessity for such stipulations was not
thought Of This fact, with a reference to
the existence Of an abundant mixed cur
rency az the time these debts were con-
tracted, and combination Of circumstau
ces Subsequently causing a sudden failure
Of the banks to redeem their notes with
specie, aad thereby giving to it value
over lis representative which did not pre-
viously exist, should be quite sufficient ei-
Their 10 wave the demand for specie, or to
induce the almost forbearance on the part
Of creditors. An attempt on their part to
extort specie, and thus secure TO them
selves the premium it commands, in addi-
ton to the legal interest, which under
their contracts is all that was anticipated,
would b scarcely less eXceptlonable than
direct interference on the part Of the
legislature. To quiet the apprehension
alluded TO, and to spare our citizens SO Sc
we're an additional trial, the propriety OF
same timely idthrough the action of your
boiy can scarcely be doubted.
Under the impression that an enlarged
accommodation was necessary to meet the
crisis. when all confidence was destroyed
by sudden revuson in our pecunlary
matters, was induced at the late session
of the legislature to recommend, and anti
cipated some relief from the Post Note
''ast the banks have so far declined