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


Of our great staple. / venture 10 affirm that 20,
a single meinbei Of the Legislature who voted Tor
that charter ever intended 10 confer such Danger
Gus powers nor does fair Construction Of that
instrument warrant the bank IN exercising them.
The banks which heretofore advanced ON cotton
generally ny 10 justify their course by pleading
Necessity, IN order ihst they might rePIensh Their
vaults with specie; most Of them are now salts
fed that the system is wrong IN principle and are
wiling TO abandon il. With a capital Of fifteen
and a half millions Of dollars, the Mississippi
Union Bank, it suffered to do so, could monpo-
lize The whole cotton crop Of the State, and every
article ui produce and merchandise, depopuate
Our towns, postralo our merchants, aud crush our
| planters.
The system Of advancing will absorb the avail
able means Of the institution, and throw the dis.
counts Of the bank into the hands Of the LARGE
cotton planters and the spectators, and deprive
those Of loans who do not produce cotton; nor
will those who get advances on cotton be ulii.
mately benefited, for all experience proves that
the profits Of such speculations seldom reach the
pockets of the producer.
An amendment Of the charter Of the Planters
Bank is required. A single individual holding
the proxies Of the nonresident stockholders, an.
nualy elects majority OF the directors, and ex-
erclses a controlling influence over its affairs
The State owns the larger portion Of the stock,
and in strict justice. Is entitled 10 majority Of
the directors. The report OF the auditor of pub
lie accounts proves that great abuses have pre-
vailed in the management Of that institution, and
that every impeachment was thrown in his way, in
order TO deprive him Of an opportunity Of ascot
tanning and reporting the true situation Of the
bank This course has never been pursued in
any other State where the people had contributed
portion of the capital. The Legislature Of
Virginia, Two years ago. called for, aud obtained
| from all the banks in which she owned stock, a
| full statement of the names, residence and occu-
patton of all the debtors OF those lntitutiols and
Their seve al liabilities. The right of III, State
TO demand the information was not seriously ques.
toned by any one and the statements wire fur
nished as soon as they could be obtained am
not aware that this right has been questioned in
any State Of this Union except Mississippi.
call your attention to the 33d oath 35th and 26h
sections Of the act TO establish the PIantels
Bank Of the State Of Mississippi. Those Sec
tons have been utterly disregarded. II was evi
IDENTITY intended that one half Of the capital oflhe
bank should be distributed among the various Sc
material districts of the State on mortgaged secu
ny The equal advantages contemplated by the
charter, would be promoted by insisting on full
compliance with those provisions. II would
greatly strengthen the security Of the State, as
well as the credit of the Bank, TO have one half
OF her capital fairly distributed and well secured
by mortgages on real estate. The relief thus af.
iorded would have salutury effect
conceive it my duty, to express in advance
tho views entertain, in relation TO the new sys-
TEN of banking, which has been adopted by one
of the States Of this Union which mas be sought
to be introduced into this State Banking when
based upon solid capital and proper principles,
might safely be left open 10 all who choose to en-
bark in the business To ensure succcss to n
free system of banking, general bankrupt law
is indispensable. This power has been delega-
ted to the government of tho United States, and
placed beyond our control. Banks of discount
and deposiie nigh, be useful under this SYSTEM
but banks OF circulation would eventually prove
highly injurluos to the welfare of the county,
Real estate, in this country, affords no secure
basis for banking operations, for if it is forced,
into market, and cash payment demanded
during period Of general embarrassment, it will
no. sell for one tenth Of its value. State bonds
could not readily be obtained TO bank upon, for
we have no surplus capital to give for them. The
circulation of the State is already much too large;
its decrease will bring every thing to its proper
level, and greatly enhance the profits Of planting
1.-The merchant will also be benefited. The
passage ofu General banking law, similar in its
character to the one in New York, under exist.
ing circumstances, would only aggTavate the dis
uesses Of the country.
II appears, from The Report Of the Auditor,
that the total amount oGreceirts into the Treasury
from the 7th December, 1897, TO the 3lst Of
December 1898, amount to the sum of one hun
dred and nineiy-six thousand nine hundred aud
nineteen dollars and nlnety-six cents; and the
disbursements, during the same, period. to the
sum Of three hundred and fifty thousand six hun.
drcd and iourty four dollars and nineteen cents;
showing an excess Of expenditures over the re.
ceipts, Of one hundred and ffty-iour thousand
four hundred and twenty four dollars and twenty
thee cents. Six thousand FIVE hundred and
ninety-iour dollars ami tol,y-lour cents Of the
money paid into the Treasury during that period
was On account OF the Literary Fund, and five
thousand nine hundred dollars ON account of the
Three per cent. Fund, and is not subject to be
drawn oul to deiray the ordinary expenses Of the
government. The Report OF the Treasurer
shows one hundred and forty thousand four hun
dred and seventy dollars and fourteen cents in the
Treasury on the thHy-frst day Of December,
1888 This sum, if 1t can be realized in money
which the public creditors will receive, will be
exhausted by the close OF your present session;
and, Will be necessary, either to resort 10 loan
TO carry on the operations Of the government OF
provide more efficient means for the collection OIL
the balances due TO the state, by tax collectors
and others. The burthens on the people are al
ready sufficiently onorous But. few Of ouI
banking institutions pay any tax, either OIL their
capital stock or real estate. The report Of the