Liberty advocate., 1839-01-24

were biased; they were not judicial officers, nor
we're they Jurors. Whether that institution or
any other is to be suffered to put the sovereign
will Of the people Of the State at defiance is for
their representatives TO determine. Ii is to be
regie ieted that the Union Bank should have adj
ded to the quantity of deprecated paper in cir
lculation, by the issue ofa large amount of post
notes having ten months to run 10 Maturity
The paymeHt of these notes to their customers
at par, was not only oppressive, but unauthori-
zed Those who obtained discounts and re.
ceved post notes in payment, indirectly paid
to the bank seven and one-third per cent for
four months, equal to twenty-five per cent per
annum; neither the profits of agriculture, nor
the gains OF commerce, will justify the borrow
Il ing Of money at such onerous rates The 38th
section Of the charter provides that the bank
"shall not deal in exchange, foreign or domes-
| tic at q higher rate than six per cent. per an
nun on six months bills or shorter time, and
seven per cent. on bills at longer time."--
Checks are, in effect, bills of exchange; and
selling bills is assuredly dealing in them; such
checks have been sold by the bank at five and
six per cent premium for their own notes, and
ten per cent. premium for the notes Of several
of the river banks, which notes were in some
Instances again paid out at the counter to their
Icustomers at par.
II The failure of the bank to establish her
J, branches, has operated most oppressively on
!, those living remote from the parent bank
! They could not possibly obtain equal advanta-
ges with those more fortunately situated.-
| Their securities we're not generally known,
and the expense oftravelling and other incon-
venences have in measure deprived them OF
the amount Of loans guaranteed by the charter
to the several districts. These violations OF
: the letter and spirit of the charter, however,
/ Idwinde into comparative insgnllicance, when
placed by the side Of the monstrous assumption
!, of power on the part Of the bank, in seeking to
Y monopoize the cotton crop ofthe State, and be-
n coming factor and shipper of our great sta
s pie. venture TO affirm that not single MEM
= Der of the Legislature who voted for that char
J. ter ever intended to confer such dangerous
J; ;powers; nor does fair construction OF that IN
II strumeut warrant the bank in exercising them.
ii The banks which heretofore advanced on cot
II ton generally try to justify their course by
ot pleading necessity, in ordcr that they might re-
Y, plenish their vaults with specie; most OF them
II are now satisfied that the system is wrong IN
IF RfissSSiHaf faissSiHaf OF i,esn aa aid ha millions odofaf5,
orIthe Mississippi Union Bank, II suffered to do
le SO, could monopoize the whole cotton crop OF
al the State, ana every VI PiouuOS "hu
n, merchandise, depopuate our towns, PROSTATE
" lour merchants, and crush our planters.
as This system of advancing will absorb the
III available means Of the institution, and throw the
OF discounts of the bank into the hands OF the
re large cotton planters and the spectators, and
" deprive those of loans who do not produce cot
ne ton; nor will those who get advances on cotton
n be ultimately benefited, for all experience
is prov es that the profits of such specuatons sell
a. dom reach the pockets of the producer.
nt An amendment of the charter Of the Plan
a. ters' Bank is required. single individual hol-
n ding the proxies Of the nonresident stockhol-
IS, ders, annually elects a majority Of the direc-
Il tors, and exercises controlling influence over
its affairs. The State owns the larger portion
of the stock, and in strict justice, is entitled to
ef- a majority ofthe directors. The report ofthe
,r- auditor of public accounts proves that great
,ir abuses have prevailed in the management o
Ii that institution, and that every impeachment
"a was thrown in his way, in order to deprive
in him Of an opportunity oil ascertanng ana re
RS porting the true situation ol the bank Ihl'
TO course has never been pursued in any othel
nd State where the people had contributed por
af- lion of the capital The Legislature Of Virgin
ia. two years ago, called for, and obtained from
md all the banks in which she owned stock, ful
uld statement of the names, residence and occupa
the ton of all the debtors of those institutions AM
led their several liabilities, The right OF th
civ State 10 demand the information was not seri
an ously questioned by any one, and the state
.te, ments were furnished as soon as they could b
ole obtained. | am not aware that this right ha
JUS been questioned in any State Of this Union es
int cept Mississippi. call your attention to tn
,rs l23d 24th 25th and 26th sections Oft the act
era establish the Planters Bank Of the State I
, be Mississippi. Those sections have been utterl
oil dsrcgarded 1t was evidently intended tn
one half of the capital of the bank should
sses distributed among the various senatorial d.
IS il trcts Of the state on montgaeed security III
ten equal advantages contemplated by the charte
tita- would be promoted by insisting on full cor
for piance with those provisions. ltwould great
$ of strengthen the security of the State, as we
INK, as the credit Of the bank, to.have one half
,ss- her capital fairly distributed and well secure
,on- bv mortgages on real estate. The relief th
ionslaiEorded would have salutary effect.
orr. locomotive il my duty, to express in advan
nnc-lthe views entertain, in relation TO the ne
,ndsIsyslcm of banking, which has been adopted
ave one of the States OF this Union, and which me
med be sought to be introduced into this State.-
ture Banking when based upon solid capital and pr
by per principles might safely be left open 70
ary who choose to emba rk in the business. 10
20 TO sure success 10 Tree system of banking, go
- IA IN rn