Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1838-01-16

IS enforce
bond.
lie lates q ~ 1872 =
Eurobean mon ts 20 A..s
loro.pert 81 S lNofa qllisn 90
fale bonds proposcd - Ise
under The ellagtef o il lpPl
Union Bank
Ona forn occasion
thafin tie caEizati0n 81 such g III
rtitution involving so deeply the intel 4,
estand credit If tllp State, the seIls
tlon Of he leeiSl ature would
BE directed To- close scrutiny q ne
pFylsisions of It's chafteys and ln throyss
snraroand Il the most guarded rest
lions for the greater safety q The state
and 10 that communication again IEl-
vito your consideration. 10. addillon
totbe amendments there TeeonlIFesl
"a, / viii here remark, that TIE policy
ofthe provision emitting the State g
one.tentll Of the whole profits ct ING.
bank in consideration Of lts bonds may
be well questioned. The State can
have no motive ID making suclla trans
actor a matter Of profit. 10 loanlllg
its credit 10 carry into effect this iIlstls
tuition, Il should be infuenced from
higher coasi CREATIONS, shat Df he Ilter-
est and prosperity Of the whole COM.
munity. Allit can desires s an amps
indemnity against the risk and ally ul-
innate loss on the bonds. e NOuld
accord better perhaps with the chafae-
ter and interest of tie State, 20 s1bsti.
tute for this provision, the insertion ot
some additional security TO tie State.
There seems 10 Be some ambiguity
Ii the construction e Be placed upon
the eighth sector astosthe value 20
be fixed upon the property mortg edI
forthe payment Of stock BY sabser-
bers. From is reading arrive e the
conclusion, that allproperty gloTtgaged
fortlat purpose. with the exceptions Of
houses, IS 70 be taken &C its fair valua@
lion as fixed 1y the commissioner
From lhe ninth section underst and
that the corporation IS invested with 81
discretionary power e loan, g negntisI
ate, 70 take nortg ages and pledges,
and 10 discount on such terms, and
such securities as they shall Judge pro-
per- This clause would scenic apply
70 mortgages gwen for the payment oF1
notes discounted and not for those giy
en- for stock; and vests the power ID
the corporation % take the properly
proposed IL be TnoFtgaeed ST is esti-
mated value, olsto make any ded uctiol
they may think proper. The twenty
sixth section. however, makes the dis
cretlonary power general and the in-
ference IS, that the board Of directors
have the right 10 receive The nl0rtgag
edproPeFty atits appraised value. 6olh
in payment oF stock subscribed FOR
for the payment of notes discounted,
This feature must Be highly objection.
able. lit Is calculated to produce
heartburninga and much d atisGacti0n.
1.-THE property Of one applicant be re-
ceived atyaluafion bY the conInis iioa-l
Crs, and that 81 notIier Be- reduc ed the
equcnces n1as Sc readily conceiV,l
ed. s. 1heFefore recommend that thus,
discretion gisen he board BE restrict
ed and for the etter security of the
Gtate,ahat il be enjoined upon i rlIt -
take property offered a more one
half The value placed upon Il Isl the
commissioner. Or a most o.tairds
The demands that are now rillp
most heavily upon our citiizens. and n
The srrangelnen 81 which hero mos
difficulty are hose ol non ents
NIid # pfolpn suspension Of specs
payments On the part Of the banks
should bed efled indispensable zen.
eTal demand for specic ID payment 81
debts may be pprelended. Under
the Constitution Of le United taies
bank notes are not 1 lega tend 3,
from general tlsa s. tleiT Feceip 5iIils
n payment Of al debts contracted Il
the State IS Tongl5' implies Fir
person who cont debt. has
updouhted ll 8 ipul ate foF paw
iTlent CO such issues "a constitute tl.
Circulating currency 81 tie tate: bu
from their ready ccnvertibilfy int
! apeel orears. past, The nocessity foi
llcn stlpq tons was not. thauelk s.
9 Iills iaets Will e ,snce q lie esiis
tence Of aa abundant mixed lrfeac,
q the time these debts were conf cte'
and combination of circunsl nee
subsequently causing sudden siIoF,
Of The banks to redeem fheif Ter xviii
specie and thereby ipiiai To- va
1e over is repfssenistiY which Z
not pfevIousy exist should c,iil,
slllelent clthef o the er1a1
ior ecle. or md sice the 1fliIa
toEbeagarcs or the 81 creditor
An elteFnpl Oh their g forf ~
cic, ana fiius secure "a them leos 4 s.
premium. 3 commands III al .fior
ne lega Interest aii5 S.
z eonifacte Is q that n
so7la "a scarcely les 81,
than direct inter nee "a Ies
q the legisl aiure. c1ie
Ptsas nslon alluded q a;a g.
citizens o severe ID risios
tpe 0f sogIls tn n
t iono pouf ~,
llag NJ 6
ion saas 8
1a 49, y