Madison Whig advocate. [volume] (Canton, Miss.) 1839-1841, 1839-08-03
Prospecf before US.

Notwithstanding all the distress that
has prevailed in Mississippi for the last
two years, she has still in prospective a
harder trial to undergo. When the
planters of the State, absolved them
selves from all connexion with the Com
immense debt was owing from them, both
TO the merchant, the banks and traders
their resources gone, leaving them
without means TO prepare for the emer-
gency of the times. This indebtedness
of the planters was particularly heavy
In all the new counties. The planters
threw off the Commission Merchants,
believing that the banks of the State
would assist them by loans to liquidate
their liabilities, and thus prevent a sale
of the property; but unfortunately the
credit of the banks was gone, and their
policy was to contract, rather than ex-
tend their issues. The old banks de-
clared their inability to loan, and hence
arose the necessity for the incorporation
of new banks, and the project for UNION
BANK with such a credit as would ensure
its success in procuring capital from
foreigners for its basis.
The Union Bank with all the amount
OF capital procured by the sale of her
bonds, was enabled TO give great relief
TO the people last fall, and the issuance
of Post Notes last spring preserved the
property of many from the hammer.
We are not an advocate of the bank, nor
are we among those who denounce her;
knowing nothing Of the manner in which
she has been managed, we cannot con-
DENIM The policy of the Post Notc
system as a general rule of action, is
bad one-but the bank was compelled to
that measure, or permitted the property
of every one liable to execution, to have
been sacrificed. Mississippi obtained re-
lief last spring from the Union Bank
through the post notes which is bad
enough currency, but which we were
compelled TO have or be without circu-
lation. But where will she obtain re-
lief next spring, The Union Bank, as
well as every other Bank in the State,
has not the capital to issue notes payable
on demand, and the crops of this year,
although promising an abundant harvest,
will not and cannot discharge more than
sixth part of the liabilities to be paid
next spring, which stand in the form
of judgments. Then, as the banks have
not the ability to issue notes, and money
cannot be borrowed from merchants,
and the products of the year will not be
sufficient to meet all the debts; the plan
ter who will be compelled to pay the mo-
neg, can only obtain IL By the sale of pro-
perry, and these sales iciH take place when
there is not mcaey enough in the State to
enable it to bring one tenth part of It's ac-
tual ralne.
To what point can the people look to
for help? To the Union Bank; if they
do, will that institution discount the best
of paper that may be offered at her
board? No. The denunciation that has
BCtH HSdpSt Hton tttt othh III Bdf
temporarily adopted the policy of the
Post Notes, will deter her from pursuing
the same course in future; and she viii
have her hands full ia meeting her post
notes at maturity, and she will not issue
notes on demand, because she will not
have the funds to meet them on presen-
tation. She will not again issue rosf |
notes, and thus, again draw down upon
her the denunciation of all and every |
person who are the advocates,-and many
who are not--of the gold and silver
humbug.
For ourselves we cannot conceive the /
extent of ruin and distress that will pre-
aail next spring, and from whence re-
lief is to be obtained we know not