Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1839-02-14


with like profit on The exchange drawn against
It. In the face of these results, q doubt cannot
be entertained but that the sale of The bonds
has been made in strict conformity with tho let
ter OF instructions from the board OF managers
to the commissioners, and in accordance with
the njuncloins ofthe bank charter.
On the eth ofSep,enber last, the board of
managers, with The view of responding TO the
pressing wants of the community, commenced
discounts on personal security, and on short
dales--haying previously determined upon is
suing post notes, payable on the first of Au-
gust, 1889. The question arising in the COM
mltee, as 10 the right, as well as 10 the propri-
ETY., Of the uank making such issues, the com
mutee decided, after deliberate discussion Of
the Question, THAT there was nothing in the
charter ol the Union Bank that inhibited them
from issuing post notes, and that at ihe Time
and in The peculiar conJuncturc in the ifoneyed
affairs o The country, the course Of the bank
was warranted, both by the eXpedlency and
sound policy" At the time no bank in the
Southwestern States was redeemng its circu.
aElon with specie, or had concluded any ar
rangements 10 resume al a specific day. Mos,
OF our own State tanks were, by violent con-
fractions, preparing TO call in their debts, and
Withdraw their notes, leaving the community
scarcely any circulating medium TO answer the
public wants. The insatiaIe creditor IRON a
broad, and executions at home, were pressing
the country, and the condition OF things called
loudly Tor relief Appeals were made in vain
10 the banking Institutions OF The State, and
they were unable, from their crippled situation,
10 afford that relief. The only stay against
such condition of things was the hope o.
something TO be done by the Union Bank, an
institution just called Iato being, with the view
oi making the landed estates Of the country
available and productvc-reduce the rate OF III
,eresl, and alleviate the embarrasSments ot the
ISlaie.
The bank could not hesitate in her course.
aud r, sorted 10 the mo { etTocual means within
her power, consistent with her own safety
For the bank, at such critical period, to have
issued notes Oh demand, or payable at a very
short time, would have been most suicidal
step.
The grea, demand for specie, and distrus
OF bank notes in the mind of the public, wou'C
have subjected her to inordlnate runs from The
holders oi her paper, and from other banks
that might have wished TO supply their own, b,
Iexhaustlug the vaults OF the Union Bank.-
Again: 1t the Union Bank had not adopted ih'
post note system, in the face OF these things
she could not have venlured diScountng, unit
the instruments were paid on the purchase q
the bonds, and she would thereby have los
r The interest on So much of unemployed none
: during the lime these payments were mnturIn
= at New Orleans; and the wants oil the people
!. that it was her business TO supply, would haV
$ become more intoerable and severe.
: Il might be contended, that If the Union Ban
: had chosen, she might have sold her exchange
> and taken in payment Of the same the notes {
+ he other Stale banks, which she might aga
J. have lent out, and avoided the necessity OF L
d suing post notes. There are many obJectlor
y 10 that COURSE but the simple circumstance
q the other banks adopting the most decided stel
If 10 withdraw their circulation, and TO great Z!
g tent, actually having done SO, left little or nor
d in the hands OF the community to purchase tt
e exchange wth besides, their notes we've al
a great depreciation, lower than the post mote
e were likely 10 be, predicaed as they were uPc
T. solid capital, flowing into the bank WITH
D, the compass ofnlne months.
~ y. The post notes thus issued, commanded
!! instant credit, equal 10 the most favored ban
!" of the State, and were currently received in II
j. payment OF debts, and on the purchase OF checl
y drawn against the instruments on the bonds
'1 1.-The Union Bank selling her exchange as lo'
" If not lower than any oil the other BANKS Oh u
- State. In fact, these notes have answers
"' every purpose of heaIthtul circulating mel
no UNI, and have most decidedly contributed to Il
IT, reielof the people. Since the commenceme
NC of their discounts on the eth OF SePtem6e
ny 1888. to the 9Th of january, 1889, the amou
It lent on personal security alone, is two mIlllo
Us eiqhl hundred and filty-tiye thousand tour hu
us ldred and eighty dollars ninety'elS
OF cents iS2,855,4 o7 98-000), which, by reso
lion Of The board, was distributed as equally
Ids the nature Of the applications would admit
a the citizens OF the whole State. Inc amou
,u- of discounts on each day will be seen ny inc
re. companying tabular satemcnts.l
we Uuon an examination Of the Discount Cler
Of hooks. the amount discounted to the seVe
applican,s for loans, were ascertained; and
he appears that The largest amount rent 10 a
lie, one individual OIL personal securl'y'l Is $lo'o
he which was done only in two instances; ho'eS
on tored for that amount were aim Isl IhVarlaI
NJ Gu, down one half, with the view OF dIstrlbut
,ur the loans as much as possible to Inc Var'C
ls banking districts. The average on the lo'
or Is about 1900. The amount discounted 10
,ur directors in no instance exceeded SIo,o
ms This, however, only two OF them have OBTAIN
Nv Besides the Iouns on promissory notes,
ns above, they have also been dIscountng pl
y ler's notes. and taking cotton us collateral Sc