Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1839-12-21
THE BANKS AND LEGISLATURE.


tborized BY some responsible person.
THE BANKS AND LEGISLATURE.
Under the above head, n writer in the Match.
=, Courier, urges upon the Legislature splrit Of
farbearance towards The banks; in other words,
h, notions are that the Banks should be permit
ted TO reye in the same course Of plumber which
has marked their conduct for three or four years
mst. We were confident that the Wing presses
and party would range themselves under the ban.
psrs of the banks, after the fashion of their late
habits. We are confident they will resist all SAL
ulary reform. 1t will not be the purpose of any
party in tho next legislature, to destroy or nJuie
ono bank worthy Of continuance and support, but
10 op off the vices of all, and throw proper re-
sric,ions and guards around the charters OF those
that deserve to reman-to prohibit their issuing
post notes, dealing in cotton, and Specializing IN
other subjects OF properly orcing aresumpuoh
Of specie payments, with such other restrictions
rs the exceences of the times and country may
require All honest men should join in thus work
1t should not be made party question, and VIII
not SO become, unless lAe wing party IN the iui'
ness Of their corruption, take up the cudgeis o
plunder IN favor OF the banks.
or one fact, there can be no doubt, that the
arcest nortions Of the banks in this State, are ut
tery insoIvent they started IN fraud, have lived
in plunder and can continue to only exist by
wholesale robbery Of every honest and indusirl-
Gus class Of men in the community. corpora
tons of this character must be annihIIated, or our
planters will be reduced to beggary and the State
depopulaled, The producing interest cannot
continue to support tho weighy tax which IT now
sustalns.
The argument of the writer in the Natchez
Courier, is, tina, the banks ought not 10 be mo-
Tested, but left in the quiet enjoyment OF their ~
famous conduct, and goton gains FIRST, be-
cause the nsovent banks will soon find il Tor
their interest to wind up Of their own accord
This was the Argument of Mr.. Prenss during
the canvass, and it is utterly without foundation.
In times of suspension, OF when the banks CIR
culae only post notes, which is equivalent to sts-
pension of specie payments, and is the present
condition of things, it is impossible Tor the com
muniy 10 discriminate between solvent and lnsol'
vent baaks.--They all stand on precisely the
snme footing. The only true test OF solvency IS
the meeting Of liabilities, the redemption oil pa
per issues in gold and silver. There is no other
criterion in which the community can place the
least reliance; and when all banks issue post
notes, as they now do the most rotten and insoI'
vent bank in the world, can issue, and her paper
will be taken, unless her credit be shaken by some
extraordinary act Of vlllainy-snch has been Inc
history of the subject in this State. Even the
leading state institution has u post note cHcuIa-
lion Of about four millions unproyIded Tor. 1t rs,
therefore, idle to say, that these paper mills VIII
hnd it for their interest 10 wind up, so long as
their paper will circulate, or sell at any price IN
the community. Suppose the paper oil DIS
credited bank, without capital, will sell Tor only
70 cents on the dollar is il not for the interests oil
anmsolvent or reckless directory, TO issue, and
sell the paper in the market, and put the proceeds
IN their pocketsl Has it not been done IN this
State. and will il not continue to be practlced un.
less the Legislature arrest the procedure by Ia
AlHg away their charters The officers OF these
institutions" have only to sign few notes, OF
which they never intend to pay cent. IN order 10
make prncely fortunes. Il costs them only
lille iampblack and paper; the notes could be
sIgaed by deputy, il found Troublesome, and then
they are put into the market, and bring one fourth
Of their nominal value, oftener than one hall but
suppose they are not worth ten cents on the dol
lar still it would be for the interests OF these bank
knaVes to issue. Look at the course OF the kalI
Road Bank Of Vicksburg before her suspension
Dd she not loan immense amounts just before
per SUSPENSION 10 her officers and directors, and
has not the debt since been paid for by puTcha-
sing tho deprecated paper of The bank This
an lllustrous example. Let not the Legsla'
'ure and the people be humbugged with the notion
mai It will be for the interest of the broken banks
70 wind up Of their own accord The lenger they
exist the more will they swndle, ADD The richer
VIII be their harvest.
further consideration, which should have It's
weight with the Legislature, is, that II these wing
institutions Of the country" are to be permit
.ed TO wind up at their own good pleasure, and IN
Her own way, the officers and directors will
pocket the assets and credits, and leave the hol-
Iets OF their paper to whistle without farthlng.
!, 's' therefore, the duty Of the Legislature to
pace their afialrs in the hands CT trustees, to be
settled for the benefit Of the bll-holders and other
creditors Of these insolyent banks. They should
mol Dc permitted TO swndlc the public out Of eve
ry thing.
Second It's further urged, iha. the winding
" Of these insolsen. banks yil lessen the eircu-
ianhg medium Of tho State, and. therefore, lessen
'ue prce Of property. We grant it will lessen the
aoauna amount, but deny that its real value for
&c purpose Of exchanging property would be az
''o~o' so as TO produces the least Inconvenience.