Piney Woods planter and Amite union literary reflector. [volume] (Liberty, Miss.) 1838-1838, 1838-02-10

make any 1urther calls, ana the capitals oil
the several banks should be reduced to the
amount actually paid in.
A sordid desire on the part of the mana
gers of banks, to make large dividends for
the stockholders, enhance the value of the
stock, and secure to the officers continual
ton of their places, having greatly contri-
buted to produce the existing distress, no
bank ought to be permitted to declare
larger dividend than three and half per
cent. semi-annuallv. If more is made, one
per cent. to be retained for contingent
fund, andall the profits over eight per cent.
paid into the State Treasury, and applied
to the support of free schools.
Legislatures charter banks to enable ca
pitalists to make safe investments, and to
furnish the community with the means of
acquiring loans; unless corporations are so
modified as TO subserve the public good,
they are contrary to the genius of republic
can government: monopolies can never be
tolerated by a free people. Those who take
stock, admit that they have surplus ca
pital, and can have no just claim on the
banks for loans. The sale of the stocks
owned by our citizens, would afford great
relief to the banks; the holders of stocks
in this State, are the largest borrowers of
the banks. 1t is not to be expected, that
the officers of the banks will press their
stockholders or curtail their own accommo-
dations, unless compelled 10 do so. The
salutary effect of limitations in their ac-
commodations, as we'll as in the tenure of
their Offices, will not be questioned. Ro-
tation in office would correct existing abu-
SEES; the new directors would generally
scrutinize the affairs of the bank and cor
rect such abuses as may have taken place.
If one third of the directors were required
to go 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 management
of the banks. Foreign stockholders con-
troll the election of directors in nearly all
of our banks; their great object is to make
money and keep up the price of their
stocks; they centre all their proxies in the
hands OF the cashier or some other conf
dent--control the election of directors and
select such as they deem best calculated
to promote Of the stockholds; the interest
of the country is secondary considera-
ton. No officer Of the bank ought to hold
proxies, and the votes by proxy should be
limited.
The banks can extend their loans to ten
times the present amount, if their continue
ed refusal to redeem their issues is sane
toned by the public voice. This would
forever put it out of theirpow to resume /;
interest is the great lever which guides
them, and they are well aware that they
can greatly increase the profits of their
stockholders if their SUSPENSIONS counten-
anced. Foreign exchange is now about
three per cent. below the specie par of
exchange; this will cause the precious me-
tails to flow into the country, and we may
safely calculate on an abundant supply du-
ring the present year. In New-York, ex-
change on Newt Orleans is three and four
per cent, while it is fifteen or twenty on
Natchez. The cotton now on hand and al
ready shipped will remedy this unjust dis
elimination.
Most of the solvent banks of the Union
will resume specie payments in the course
OF the ensuing spring and summer. The
banks of Mississippi have resources as am
pie as those of any. other State, and with
two exceptions, their liabilities are much
less in proportion to their available means.
During the next summer and fall, the banks,
by issuing post notes, payable at the ma
turity of the crop of 1899, would be en-
abled. to withdraw their circulation payable |
ON demand, and substitute notes payable
at a future day, bearing interest. These
would pass more currently than the pres
ent rredeemable currency. am fully 7
aware that the great objection on the part
of the banks to such issues, is, that they
curtall their profits. This argument, how
ever, should not have much force, their inn
provident management has mainly contri-
buted to the present disorganized state of
our currency, and they should cheerfully
contribute their aid in giving to the people,
at the earliest possible period, a sound cur
rency. Necessity alone could excuse their
but nothing can justify their
failure to redeem their issues at any mo-
ment when they have the means in their
possession.
Money is now abundant in Europe, and
can be obtained on UNREASONABLE securi-
ty at low rates of interest. The rage for
speculation has subsidized, and every indi-
cation warrants the speedy restoration of
confidence. Entertaing these views of the
Of the banks of this State, and
of the, favorable change about to take
place, respectfully suggest that all our
banks be compelled to resume specie pay
ments on or before the first Of November
next, and that such Of them as refuse to