Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1839-01-19


hsr,dsfament. goods, chailes, and Effects, Of such
kind ana nature o. quality sooveF, 10 an amount
ma ercsediar st million Of dollars, including the
casiial sieek, and The sans 10 grani, alien and
disoss Of e pleasure Most Of the bank char
tsrs contain he same powers, none have more
extensive. The Legislatures which chartered
them never intended 20 clolhs them with The own
e. Of dealing IN cotton or Specializing IA pay
species Of propeHy-such dangerous powers
were never solicited and could not safely have
been granted. Chartered companies can take
nothing that is not clearly expressed in their acts
Of incorporation. and can exercise their powers,
alone, in the manner pointed out Any ambiguity
operates against the adveniarers, and in favor Of
the public. MOnopoiies shd exclusive privileges
should be put down, and all corporations confined
to the privileges plainly given them by their char
teFs-the exercise oftheir franchises, being in de-
rogalion Of individual nights, cannot be extended
beyond the letter and spirit Of the act Of ncorpo-
ration. If they are permitted TO leave their le-
climate business Of banking and enter the field
Of speculation, their great capital will enable them
10 drive individual competition from the market
10 monopolize every species Of produce and eve.
~ article Of merchandise. The existence Of our
government will be Of little value, il lis functions
are transferred TO the hands Of pnyiiegd corpora.
tons, and all future Legislatures prevented from
protecting the abuses 81 system which N i'm
povershing the Slate; while wo sedulously guard
the rights Of private properly, we should never
forget that tho community have also rights, and
that the welfare Of Us oil depends on their main.
tenancc. The regulation Of the currency is one
Of tho highest attributes Of sovereignty, and can
never be placed beyond legislative control The
greatest evil Of the banking system consists in
the continual expansions and con,ractions Of bank
issues, for the price Of property is thus made La
bic TO fluctuations, and every thing rendered IN
stable. In prosperous times, banks are induced
TO expand their issues for the purpose Of making
large dividends 10 their ockhOders--money be.
comes plenty the price Of property is enhanced,
speculation is stimulated, but In the end reyul.
sion takes place, property declines in value. bank
accommodations can no longer be obtained, and
tho country for time suffers all the evils incident
TO deranged currency, The lessons of expert.
ence teach US 10 guard against the recurrence Of
the evils which we have endured Cor the last two
years. To effect this general banking law is
indispensable, limiting by its provisions the circu-
lation Of each bank, and tho Accommodations u
rs officers and stockholders. limiting tho amount
OF dividends, and requiring the publication Of
monthly reports Of the situation Of each bank, We
rned by the oath OF the president or cashier, pro-
hlbilIng under suitable penalties any bank from
dealing IN cotton or any other article Of produce
or merchandise, or buying up at discount the is.
sues OF any other bank. Each bank should be
required to pay out at its counter the notes OF
that bank alone Il requred and monthly settle |
ments should be made by all the banks having |
accounts with each other.
The value Of bank paper being dependant on |
us converibility, on demand, into specie, The H.
sue Of post notes should b. forbidden, and no,
more than three dollars in paper issued for each
dollar Of specie in the vaults and when thai
proportion Is destroyed, no more issues made IN.
III II IS restored. II might be well, also, TO make
the refusal Of bank 10 pay any Of its notes or
deposies on demand, an absolute forfeiture Of its
charter, and require immediate proceedings TO be
instituted to stop tho further operations Of the
bank. Other provisions will, no doubt, sugrcs,
themselves TO your consideration, calculated 10
secure 10 our constituents the invaluable adyanla.
Cos OF sound ard stable currency, and TO guar.
anlse to every portion Of the State, and each in.
dividual thereof, equal facilities in obtaining loans
and discounts.
am we'll aware that the right Of tho Lepsla.
ture to alter, amend or repeal bank charters. is
dened ny many eminent juriss. In several Of
the States the right Is expressly reserved In their
acts Of incorporation.
ne state OF Kentucky, many years ago, re-
pealed the charters of all her banking insiitu.
IONS. am not advised that .he constiiuiionalily
% me act was ever called in question, either in
the state courts or those Of the United States
should you differ with me in relation TO the |
constitutional right Of the Legislature to repeal
our bank Charters, another course could be adont.
cd which would answer The same purpose, and |
not pe obnoxious 10 constitutional objections |
The evidence reported BY the Bank Commission |
efs concIusively proves that nearly all the banks
IN the State have forfeited their charters by misus.
ing their privileges, and failing 10 comply with
their express provisions. Some Of them have
issued greater amount Of circulation Than thew
were permitted, others have more property than
,hey arc authorized to hold. Many DC them
nave iranscended then powers by dealing in col.
ION ana produce, and exactlng usurous interest +;
ana MOI a lew OF them have been established IN
Haud. All Of them have suspended specie pay
meh1s. An information in the nature of n ulo
waIfan'o would bring the question Of forfeiture
before Inc Judicial tribunals OF the country
where the State and the banks could produce
'neir evidence, have fair hearing and an imno,.
tial trial. Should the courts declare their char.
sers forfeited, the Stockholders would be the ONLY
sufferers, Tor the companies could not sue ur coI.
Loot their debts. Such trials would produce area,
excitement, and would moi BIO soon terminated
rs az alternative, therefore. il such proceeding
should Dc deemed advisable, general BANKING
law could be enacted, placing all the banks under
suitable restrctions and requiring the assen, If
the stockholders Of each bank 10 lis provisions !,
reasonable pericd, and directing judicial pro.
ceedings 10 be instituted agains, those ,hu, chi n
assent 10 the law. Suitable provisions should be