Columbus Democrat., 1838-02-10

sloners. These facts, together with the great in
terest which the State has in the souRdness of
the former, have induced me 10 call your partlcu-
lar attention TO their conduct and TO respectfully
urge the adoption OF such measures as viii vindi-
date the honor and secure the interests of the
people of the State. The "graYe doubts enter
timed" by the directors oflhe Lake Washington
and Deer Creek Rail Road and Banking Com
pany, "of the consttutionalty of the Legislature
frem which the powers of the commissioners em-
anated," have disappeared and they are now viii
lngt be fully examined. Appended, will be
found the statement Of its affairs certified by the
new board of directsrs and transmitted 10 the
Auditor for the inspection of the Legislature.
1t remains for me 10 recommend TO the repse'
sentatives of the people, such measures "as |
may deem necessary and eXpedIent.
All the banks in operation last May, having de-
feated the great object Of their creation by failing
to fulfil their contracts, should be brought under
general and strict regulations, and required TO
give their assent IN stipulated time to general
bank law, neither should lhey he suffered to de-
clare or pay dividends so long as they refuse to
fulfil their obligations to their creditors and the
community The stockholders being now una
blS W pay lllC ICStuue VI iIlt vi
to become due on their stock, It is unnecessary
to make any further CALI, and the capitals of the
several banks should be reduced to tho amount
actually paid in.
A sordld desire on the part Of the managers of
banks, to make large dividends for the stockho-
ders. enhance the value of the stock, and secure
to the officers a continuation of their places, hay
ing greatly contributed to produce the existing
distress, no bank ought to be permitted to de-
clare a larger dividend than three and halfpor
cent. sem-annually. Ii more is made, one per
cent. to be retained for a contingent fund, and all
profits over eight per cent. paid into the State
Treasury, and applied to the support of free
schools.
Legislatures charter banks TO enable capitalists
to make safe investments, and 10 furnish the
community with the means of acquiring loans;
unless corporations are modified as to subserye
the public good they are contrary TO the genus
oirepubican government monopolles can never
be tolerated by free people. Those who take
stock, admit that they have a surplus capital, and
can have no jus' claim on the banks for loans.-
The sale Of the stocks owned by our citizens,
would afford great relief to the banks I; the hol-
ders of stocks III this State, are the largest bor-
rowers Of The banks. 1t is not to be expected,
that tho officers Of the banks will press their
stockholders or curtail their own acconmoda-
tons, unless compelled TO SO. The salutary ef-
fect-of limitations in their accommodations, as
we'll as in the tenure ofShor Offices, will not be
questioned. Rotation in office would correct
existing abuses the new directory would gener
ally scrutinIze the affairs of the bank aud correct
such abuses as may have taken place. If one
third Of the directors were required to 20 out Of
office every year, and none permitted to serve as
directors more than two years out of six, we
might reasonably expect greater fidelity in the
Infringement of the balliAs. T~-~cn etnckhnl-
ders control the election Of directors IN nearly ali
of our banks their great object is 10 make mo-
noy and keep up the price Of their stocks, they
centre all their proxies in the lands Of the cash
ier or some other confdent--control the election
of directors and select such as they deem best
calculated to promote the interest OF the stock
holders; the interest Of the country is secondary
consideration, No officer Of the bank ought 70
hold proxies, and the votes by proxy should be
limited.
The banks can extend their issues to ten times
the present amount il their continued refusal
| to redeem their issues is sanctioned by the pub
| lie voice. This would forever put it out OF Their
power TO resume interest is the great lever
which guides them, and .hey are well aware that
they can greatly increase the profits other stock
holders IL their suspension is countenanced. For
| eign exchange is now about three per cent be-
low the specie par Of exchange ; this will cause
/ the precious metals to flow into the country and
we may safely calculate on an abundan; supply
during the present year. In New York, cx-
1 change on New Orleans is three and four per
cent, while it is fifteen or twenty on Natchez.
The cotton now on hand and already shipped vail
remedy this unjust discrimination.
Most oithe solvent banks OF The Union WIll
resume specie payments in the course OF the en-
suing spring and summer The banks OF Mis-
4 sissippi have resources as ample as those OF any
other State, and with two exceptions, their llabIi-
ties are much less In proportion 10 their available
means. During the next summer and iaI, the
banks, by issuing post notes, payable at me ma
t,lrity Of Inc crop Of 1899, would be enabled to
withdraw their circulation payable on Demand
and substitute notes payable al future day, bear
ipg interest. These would pass more currently
,hap the present irrcdcenable currency. am
fully aware that the great objection on the part o.
the banks TO such issues, is, that they curta then
profits. This argument, however, should no
have much force, their improyldent management
has mainly contributed to the present disorgan-
iged state Of our currency, and they should cheer
fully contribute their aid in giving to the people
az Ihc earliest possible period, sound currency
Necessity alcne could excuse their suspension
but nothing can justify their failure to redeem
their issues at any moment when they have tn
{ means 10 their possession.
u Money i now abundant IN Europe, and cal
, be obtained on unquestionable security at los
rates ofinterest The rage for speculation ha
subsided, and every indication warrants the speed
/ restoration Of confidence. Entertaining thes
views or the situation Of the banks Of this State
? L - z ~ L LIZ .LaL.n