Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1839-01-31
MISSISSIPPI UNION BANK,
Jackson, Jan'y. 3rd, 1891
d. G. Nc N,stk

MISSISSIPPI UNION BANK,
Jackson, Jan'y. 3rd, 1885,
~, Froellency ii. G. McN~t
u,,.-In compliance with your request of
OOH December, 1888, have the honor Of
VI" Ib,ni,tipg to you, herewith, and through you,
SUM-, ,bn legislature, a report OF the condition Of
" w. Mississippi Union Bank, with the liabilities
"" "fooch director, as is especially desired by
On presenting this communication to you,
n, be consideration Of the Legislature, take
Y,asion to remark, that it will, at all times,
lard me pleasure to furnish the Executive Of
10 State a full view of the condition Of the
muk, when such report is to lead to a rigid
scrutiny of its affairs.
Document marked CAY contains full exit
Eron Of the transactions Of the Bank, from the
commencement Of its operations up to the 3lst
hy of December, 1888, inclusive, with list Of
liabilities of the directors respectively.
Document marked (B) contains extracts from
4 be minutes Of the Board; the letter of lnStruc-
lions TO the Commissioners charged with the
ale ofthe Bonds; and the powers OF attorney
under which they acted.
Document marked (C) contains copy orthe
contract and sale of the Bonds, with copies Of
e,ters from N. BIDDLE, Esq, directing the
payment of the money.
The Bonds were sold on instruments of one
million each, payable LIST November, 1888, lst
January, LIST March, LIST May, and lst July,
Il 1882
When Information Of this sale was received,
tits matter Of public history, that the banks,
throughout the State, were contracting their is
sues with the most provident and all embracing
ndustry,-that the people Of the State owed
DEBT of from six to eight millions, that could not
be postponed and that public solicitude was
directed 10 the Union Bank for such measures
Of relief as its means enabled it TO afford
The Board, aware of the delicate and deeply
responsible position of the Bank, and anXiously
desiring to avert the ruin impending over the
people, determined upon the policy Of issuing
4 its notes payable after the first day of August
4l8S9 These notes, based, as they were, upor
certain capital, and protected by the exchange
N6pcrations Of the Bank, at reduced rates, have
maintained an advanced value over the paper o
any other Bank in the State. 1t is obvious
however, considering the condition of the coun
try at that time, that no other policy could hav
SOi
sequences 10 the institution and TO the people
The long established Banks of the State wer
doing little or no business, and their notes wer
almost wholly withdrawn from circulation
large amounts we're due them, which, to som
8extent, were in a course Of forced collection
and the issues Of this Bank, payable on dc
mand, must have gone to their VAULTS and thu
Aadded TO their strength, by embedding the ban
a that issued them; an operation which could nc
have been reciprocal. 1t was, moreover, nc
then known at what time the suspended Bank
could or would return to specie payments; bu
IA BY The 10th of November, it was pretty well a.
cerained that portion Of them would resum
n on or about the first instant. At that perlo
the second nStalment on the Bonds had not mi
M tured and did not mature until the first day {
January, 1889, and the Bank had discounte
on personal security, to the amount oftwo mi
ions three hundred and one thousand lou
hundred and forty two dollars and sevent.
N FIVE cents.
M TO protest this issue, the Bank could rely u
on the capital then on hand; and, by checkln
on time, upon that which was subsequently, m
turing.
This course, however, involved in it the n
cesslty Of disseminating the business oil Il
Bank, and leaving the community without
circulation. Had this course been pursued, Il
Bank could have suffered no injury; but Il
n planters Of the country, many of whom we
compelled to realize money from the crop the
on hand, would have been forced into mcrke
at time when the Banks which furnished Il
circulation Of the usual market were, wltho
exception, contracting their circulation, Tor II
purpose Of resumption; and would have bee
subjected to immense sacrifices on their cotto
thus depressed in price, by causes, acknow
edged, on all hands, to be temporary Und'
these circumstances, and Influenced by the SC
smn obligation Of the Bank 10 continue its pc
noles at par, It determined TO advance upon u
double security Of undoubted promissory note
e secured by cotton delivered, as we'll for Il
purpose of Strengthening its means and incre
ping IT'S exchanges, as to enable the Ianter
aFohe advantage of the prospective rise in t
ss ted
10 have continued the discounts on person
8socurily only, was impracticable, without i
%ofd'ng the interest Of the Bank, inasmuch
A98the post notes, from the necessity of checki
or their redemption, at from two to six mont
Vi ''fne, might have deprecated; and, to have d
continued business altogether, would have
nc'ed severe, and, in the opinion of the Boal