Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1839-11-02

mara sxnedienev. unless the salvation 0l the
eountry requires bis lnssposiion. IN ls5s, to
prevent the passage q about twenty banks, con-
lemplaled 10 be based upon real estate without
dollar Of specie 10 redeem then issues, inter
posed and prevented their passage rev nov
arc 20 be found who condemn my course on That
eccasisn Al the same session | vetoed lhe bill
takiag or the twelve and half per cent interest,"
which the banks were bound 10 pay on Their lat
ure 10 redeem their issues N specie on demand.
This bill passed By the Constitutional malurhy OF
lwo thirds Of each branch Of the Legislature. It's
passage opeaed The food gates aud the country
vas soon deluged with iredeemable paper money
II was rolled out ii the banks N teams--bSnk
presidents and cashiers were engaged night and
day, in signing false promisss--IheiT wives and
daughters abandoned lhsir usual occupations, aud
used their scissors In cutting asundsr bank notes
--eroWds Of honest planters beset the bank OH.
GERS, and exchanged their cotton for paper worth
not more thsa than scVeniy-lly ceils ON The DOT
lM, and now "worse than worthless"
The returns Of the cotton thus disposed Of are
now slowly coming in, and the plundered planter
receives mol much moro than halt what his cotton
you'd have sold Cor twenty months ago. at his
own gia. Banks could not have loaned money
II eight per cent. and have paid twelve and one
hef per cent. on their issues. The passage oil
the law relieving them from the payment Of that
high interest has inflicted lueparable evils upon
the people OF the State. Il has sustained a few
bloaled spectators for time ut tire expense Of
tho credit Of the State abroad and TO tho injury
Of nirc terths Of our citizens a, home.
The cotton policy Of the Union Bank has been
equally banefu TO the country, and in addition has
proved TO be highly injurious 10 the bank--about
two millions Of dollars Of tho proceeds Of the
State loans we're advanced on coiion--ut the pc.
Rod Of the advance, the cotton would readily
have sold at home a, from fifty TO sixty dollars
per bale--lhai portion Of il shipped to Europe, as
we'll as fiat held up 10 New Orleans will not nett
more than from nine to twelve cents per pound,
sud before account of safes are rendered, the
planter will be charged with about twelve months
interest on the advance. Immense losses will be
sustained through the inldelity Of agents and The
failure Of cotton monopoliss, No corporation
should ever be suffered TO interfere with The regu-
lar business Of the factor or the merchan--no
bank caa successfully engage in the cotton bust.
ness.
You have well observed, gentlemen that tho
post note "measure il persisted IN and carried
out 10 the extent originally contemplated by the
managers Of the Union Bank, will be fruught
with the destruction Of the agricultural mechani
cal, mercantile, and professional pursuits Of the
country" AT the April session, 1887 opposed
tho post note bill; because was we'll aware that
would tempt the banks TO over issues. During
that year the disastrous policy Of advancing on
cotton by the banks, was first commenced. by
the time was inaugura,cd, their circulation was
tknN As,h ta.H H.. G..A t,.l l.~s
Legislature recommended the passage Of &c.
neral banking law. bringing by It's provisions all
the banks Of the State under strict control, and
compelling them TO resume by tho Isl Of NJvem-
Der, 1898. And as means Of enabling them
to DO so suggested that their notes payable on de-.
mand could DO taken up by post notes bearing in.
:-.... T ~ -."s.sa" ID mi recommend the
issuance OF post notes after resumption wns cl
fectcd. II tho Union Bank had have issued no
noes except those payable on demand, aud had
never embarked in the tton business, she could
have loaned as much'pM money as she has de-
prcca,ed currency, The cotton advanced upon
would have brought neatly The same price NJ
home, and have furnished more than a million aud
half OF exchange TO pay our foreign debt The
five million Of dollars obtained CT the State
bonds, IL il had been brought homo in specie,
woad have formed sufficient basis for a dis
count Of scvenrm,llions Of dollars ind two mil.
lions Of circulation. The relief afforded would
have been much gres,er than that given by tbs
post note and cotton policy Of tho bank. The
proceeds Of the last crop, together with the ayas
Of the State bonds, were amply sufficient TO have
placed tho Union Bank rs well as the other sol
vent banks Of the State, upon solid Iouuda.
ton. The post note aud cotton policy Of the
bank, has tended greatly 10 curse US with de-
pFeciaIed and inconverlble currency. I'm
less the people come TO the rescue and force
the Union BANK, and all others TO redeem then
obligations ia specie on demand. we will never
get clear Of u worthless currency ] speak adj
visediy when say thai the managers OF the I'm
ion Bank have adopted resolution to take the
own pos. notes in part paymcn, Of the five mil
hoe Of dollars Of State bonds, slgUed Few
weeks since. The President has gone North Il
efec, the negotiation. The charter of The banl
iobds the sale Of the bonds for less than hei
par value, The post notes Of the Union Ban
are fifteen per cent below par.
Il was never contemplated BY the origin5
friends Of the Union Bunk, that Il should ur
merchant OF issue shinplasters. Many Of III
best friends Of the institution are now sl,sfic
Ihal AaVocaieu sHe correct policy IN my mes
sage 10 the Legislature last January. Some
tho friends Of The bank arc SO ignorant es 70 N
gne, that that message is tho sole cause Of N
depreciation Of the Union Bark paper, and tn
IL had 20, have denounced ito policy, lis pc
notes would have been equl to specie. VII
the pos. notes Of the United States Bank aye
discount Of eighteen per cent. All notes pa
able at future day. will ever be at a dscou
and as money becomes scarce, their value d,lnl
ishes; they never can answer tho purposes Of
currency.
could not, consistently with my obligations
the county, remain silent when saw our gre
State institution pursuing course Of policy d,