Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1839-01-22

m express clause ii the law creating tie
Board Of Bank Commissioners, al banks
chartered were made subject
10 It's provisions. The Union Bank was
chartered 5ng aifer r. pa age, and the
State IS yet tic sole stockholder. The /
commissioners we're sworn. officers, and /
required BY lhe most solemn obligations Of
dulys TO. examine that Institution, yet they |
were refused admitlance, on the finsy pre-.
text that their minds were 5iassed; they |
were not judicial officers, nor were they |
jurors. WhetheF administration, 81 any
other, is to be suffered to put the sovereign.
will Of the people of the State al defiance |
is for their representatives to determine.
Il IS to be regretted that the Union Bank
should have added to the quantityaof de-.
preciated paper inscircnlation, 81 the issue
of large amount of post notes, having
ten months toTun TO maturity. The pay
ment Of these notes to their customers at
par, was not only oppressive, but unaui
thorIzed. Those who obtained discounts
and received post notes in payment, ind.
recily paid to the bank seven and one.
third per cent for four months, equal to
twenty.t 70 per cent. per annum; neither
the profits Of agriculture, nor the gains Of
commerce, viii justify the borrowing of
money at such oherous rates. The 18th
section of the charter provides that the
bank " shall not deal in exchange, foreign
or domestic, at a higher rate than six per
cent. per annunn, 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 bunk at.five and six
per cent premium for their own notes. and
ten per cent. premiumlfo for the notes ofseV-
eral of the river banks, which notes were
in some instances, again paid out at the
counter, to their customers at par.
The ftiIure Of the Bank to establish her
Branches, has operated most oppressiyely
on those living remote from the parent
bank. They could not possibly obtain
equal advantages with those moro fortu-
nately situated. Their securities were not
generally known, and the expense oftrav-
cling, and other inconvenience, have in
a 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,
dwindle into comparative insignlfcance,
when placed by the side of the monstrous
assumption of power, on the part of the
bank, in seeking to monopolize the cotton
crop Of the State, and becoming factor
and shipper Of our great. staple. ven-
ture to affirm, that not single member OF
the Legislature who voted for that charter
ever intended to confer such dangerous
powers nor does a fair CONSTRUCTOR ol
that instrument warrant the bank in exer-
cising them. The banks which hereto.
fore advanced on cotton, generally Try to
Justify their course by pleading necessity,
in order that they might repIenish their
vaults with specie most of them are now
satisfied that the system is wrong in prin.
ciple, and are willing to abandon it. With
acapital of fifteen and a half millions oi
dollars, the Mississippi Union Bank, il
suffered to do SO, could fnOnopotize the
whole cotton crop of the State, and every
article ofpFoduce and merchandise. de.
populate our towns, PROSTATE our mer
chants, and crush our planters. es
| This system of advancing, will Absorb
the available means Of the institution, anC
throw the discounts of the bank into the
haeds of the large cotton planters anC
Spectators, and deprive those of loan;
who do not produce cotton nor will thosl
who get advances on cotton, be ultimately
benefited, for alIexperience proves, tina
the profits of sucn speculations seldom
reach the pockets Of the producer.
An amendment of the charter of tn,
Planters Bank is required. A single in
| dividual holding the proxies of the non
resident stockholders, annually elects 4
majority of the directors, and exercises q
coatrolling influence over its affairs. Tn
q State owns the larger portion of the stock
, and ia strict Justice, is entitled to major
4 ty of the directors. The report Of III
!. Auditor of Pubic Accounts, proves tina
great abuses have prevailed IN the man
/ agement of that Institution, and that ever,
i. impeachment was thrown in his way, in OF
} der to deprive HIM of an opportunity Q
ascertaining and reporting the true situa
2 ton OF the bank. This course has neVe
4 been pursued ia any other State where th
! people had contributed portion of tn
? capital. The Legislature Of Virgins
, two years ago, called for, and obtaine
. from all the banks in which she owne
g stock, a full statement of the names, resi-
: dence, and occupation of all the debtors q
]. those Institutions, and their several liabili
tics. The right of the State to deman
: the information, was not seriously ques
: toned by any. one, and the statement
: were furnished as soon as they could b
d obtained ] am not aware that this righ
], has been questioned in any State of thi
f Union except Mississippi. call your al
Y tention to the 23d, 9th, 25th, and 26t
1 sections Of the aetto establish the Plant
d ers' Bank Of the State of Mississippi
!. Those sections have been utterly disre
! garded. 1t was evidently intended tina
D one half Of the capital Of the bank Shout
be distributed among the various senate
!, rial districts Of the State, on mortgage
!. security. The equal advantages conten
2 plated by the charter, would be promote
it by insisting on a full compliance with thos
}. provisions. Il would greatly strengthe
) the security Of the State, as we'll as til
81 credit Of the bank, to have one.half Of he
r capital fairly distributed and well secure
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