The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1839-06-01
From the Globe.
" THE CREDIT SYSTEM"

We know not when we have seen a
more striking illustration Of the effects of
the modern "Credit System" of Messrs.
TALLMADGE, RIvEs and Co. than is exhib-
tied in the following history of the Bank
ofVicksburg from theVicksburg( Miss. )Sen-
tinel. With basis of only $3.50 in specie
what wonders have been wrought by this
magic "system!' The swindling of the
planters and others, first by depreciation
of the notes and thoa BY osohunging IOr
them othor paper, which soon became
worthless, is but an extreme case of every
day, 'fair business transactions" upon the
approved principles of the "system:"
The Banking System in MiSsisSippi.-
A brief glance at the history Of the Bank
Of Vicksburg-not the Railroad illus
trate the evils of the system. This Bank
commenced operations in December, 1887
or rather her stock was subscribed in that
month, she went into the Issue of her pa
per in the spring of 1898. Her bona fde
capital all told, amounted precisely to the
sum of $ll0 in silver, and one gold eagle,
making $l20. A few of the leading Off
GERS of the Railroad Bank, with the aid of
their Texan loan agent and commission
merchant in New Orleans, succeeded in
getting 100000 out of the Canal Bank
of New Orleans, which was paying specie
in order to take the stock in the Bank Of
Vicksburg. These Canal Bank notes were
guaranteed to be returned in short time,
and they were so returned to the Bank to
which they belonged. The Bank of Vicks-
burg then commenced to food the country
with post notes, payable in IL months, and
in exchange for these notes, she obtained
control of our planters cotton. The notes
of course deprecated, and have since only
been worth about from 70 to rs cents in
the dollar. But the Bank having got con-
troll of the cotton, she drew on it, and with
these northern funds, despatched one of
her directors to Louisville, Cincinnati, &C.
with $4,000 dollars, to purchase produce,
pork, lard, baggng, and bale rope for the
Bank, all of which was placed in the hands
of different merchants in Mississippi and
New Orleans, to be sold at the highest pri-
ces, rating her own paper among the low
est river money. With this large amount
of funds, the agent raised the price of pro-
'i@ANil9s A~Cs III lhbhAubhJ anu OlilO III a
few days to 20 per cent, and of course this
increase in price was repaid by the people
of Mississippi. All these facts were dis
closed at the examination by the Bank COM
missioners, and may be found in their re-
port.
But the balance of the history of this
Bank is still more interesting, as iustra-
ting the injustice and outrage of the system.
Though the Bank few months after she
commenced on $l2O capital, was able to
begin the produce business with fifty thou
sand dollars capital, yet when her first batch
of post notes cecom due last March,
she refused to redeem them and the holders
were compelled to take other post notes of
the Railroad Bank, payable at the ex-
piration of another year. Now the
Railroad Bank has failed, aud the plant
er. mechanic, and others who hold these
promises to pay, will perhaps have to sell
them to some Of the bank agents at 80 per