Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1839-12-17

with that degree of success, which is admitted
to be desirable; when we see that every other
interest, liberty, property, and even tile pro-
lection OF life Itself, is freely, and am happy to
add, safely confded to public agents, cannot
conceive that there is any intrinsic difficulty IN
procuring sufficient number Of gentlemen
every way qualified to manage a few millions
| of banking capital, provided we would adopt the
proper mode to select them, and pay them for
| their services. Under any view that have
been able to take Of the subject, should be OPP
posed at present, to sale Of any part Of the
stock.
The Board of Control created by an act of
| the last General Assembly, is believed to have
exerted salutary influence upon the banks,
/ bv bringing together at stated periods, the pre-
| siding officers OF the different Institutions
thereby exhibiting the lights furnished by all
| the Banks, and applying them in the manage
ment and direction of each. / nevertheless,
with lust Difference to the views Of others, adj
here to the opinion heretofore expressed, that
the evils intended to be cured by the act crea-
| tine the Board of Control, lie too deep to be
reached by any measure of mere regulation !;
and can only be remeded by an amendment of
the organic law. therefore again recommend
such change in the system as will subject the
State Bank and its several Branches to the d.
rection oil some General head, or controlling
power, and some uniform course of action.
Should it be deemed proper to continue the
| Board of Control as now constituted, or under
any other modification, an enlargement OF Its
powers viii be indispensably necessary to its
efficiency and usefulness.
Notwithstanding the somewhat discouraging
view, which candor and impartiality, added to
a sense of duty, have compelled me to take of
| the MANAGEMENT and condition of the banks, it
i is a source of considerable qualification to be
able to state, in this communication, that the
condition of all of them, has been considerably,
and of some of them, very greatly improved,
during the present year, as will appear from
the condensed statement of all the Banks, fur
nished by the Board of Control. And that not
withstanding they resumed specie payments
eighteen months earlier than they were re-
quired to do, by the act Of the 3Oth of June
1887, and the recent suspension of many of the
banks at some of the most important points in
the Union, the bank of the State of Alabama,
and the Branches at Huntsville, and Mont
gomery continue to pay their notes in specie,
and will, trust, continue TO do so, whatever
course, interest or necessity may induce the
banks elsewhere to pursue. For it seems to
not more certainly wrong in principle, than
that sympathetic morality, under the influence
of which, suspension Of specie payments by
the banks at any one important point, is con-
sidercd sufficient justification for allthe banks
throughout the country to follow the example.
Banks, as well as individuals ought always 10
comply with their promises and obligations,
with good faith, and the failure or inability of
ofh
unless they are so intimately connected as for
the operations ofthe one to be entirely depen-
dent upon, or liable to be vitality affected by
the conduct and movement of the other.
The Bank of Mobile, and the Planters and
Merchants Bank, which are the only private
stock Banks in the State, also very much to
their credit, and the credit ofthe State by which
they were created, voluntarily resumed specie
payments, eighteen months in advance of the
time, they were required to do so by law; and
/ continue steadily to redeem their notes In spe-
! Gle, and are believed to be in as sound and
: healthy condition as any banking institutions
in the Union and are in every respect entitled
to the favorable consideration of the Legisla
: ture.
OIL In taking comparative view of the amount
: of our circulation, which may be estimated a
: from three to four millions, and the amount o
81
seventeen and eighteen millions, and of the
r probable amount of our cotton crop, which
a am happy to be enabled TO state, viii exceed
!, an average one, it is obvious that some en-
If largement of our circulation will be necessary
e For although, do not yield assent to the cor
If rectnesS of the proposition, that those win
t produce an article are bound to furnish TIN
n means of buying it-yet, it Is necessary tina
II we should supply our citizens with sufficien
h amount of circulation to answer their accus
n toned wants, and to guard and protect then
G against the ianger, and the necessity OF beln!
: compelled to sell their produce for the IRE
n deemable paper of non- specie paying banks II
: other States Another strong Inducement t
If increase the circulation to proper amount is
: that it will relieve us from the necessity, an:
n the pretext for granting relief IN any othe
If form to those who are indebted to the banks
: thereby tampering with the obligation of con
! tracts voluntarily entered into; and impairin!
d the means and Gripping the operations OF tn
S Banks. 1t Is, however, a question of SOM
e difficulty, and Importance, IN what manner thl
), enlargement of the circulation can be mos
= properly effected. 1t is obvious, that if tn
If specie paying banks enlarge their circulation il
bills payable on demand, in specie, to al
If amount sufficient to meet the contemplated OBJ
: ject, that their notes will be returned upol
c them, and suspension viii be the consequence
If Hence the only means, which occur to ny
mind, are either to authorize the banks to issul
d Post Notes, for any period within twelv,
e months, or to require the banks, that are no
paying specie, to furnish the entire amount G
: additional circulation, say to the amount c
d five millions, to be distributed to each of tn
e banks, IN such proportions, as in the wisdom c
d the Legislature may be deemed proper 1t i
e not impossible that either of these proposition
: is liable to serious objections. They are tn
: modes that have occurred to me, as most likel
to accomplish the object in view, and submit
d them for what they are worth. 1t is our mis-
S fortune to live in an age, when in relation t
e banking institutions, the question is not, wha
it is strictly right and proper, but what is best t
: be done. And if any better mode than eithe
+ of those here suggested, can be presented,
d will meet my hearty concurrence"
It HIGH TARIFF-GoV. MOBILES MES