Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1839-03-26

Used N the following manner
Checks sold at the counter, S75,299 So
Sod brought to bank, $4,000 90
Expenses on the same. $40 81
Used ID the purchase Of Missis-
sippi bank paper, . 100 81
Used N the purchase Of Alabama
bank paper 1881 O9
Used in payment Of a bin drawn
in Mobile, HISS g +
Used topay agent for purcha-
sing Mississippi paper and in-
terest SOC 90
Due by agent New York, 1857 10
slssl 10 %
OYerdrawn m New York $6l5 IS /
An agent was employed BY ibis bank, |
and provided with 10000 IN checks on
New York, and Alabama funds to the
amount Of $1O,015 81, with instructions
to visit New Orleans, and invest the
amount, say $2O,0I5 81, ia Mississippi
funds, on account Of the bank, which was
done. The agent returned to the bank
$26,5e7 I3,and received for his services
$500 90 in northern funds. BY refer
ence TO the above table it will Be found
that the liabilities Of the officers, as prin-
cipal, is nearly two-thirds Of The capital,
land in this is not included the indebted.
ness of one of them, as agent, for $780,
00O,) but that table cannot be relied on as
correct, for the president affirmed that di-
rectors had received accommodation by
the discount of paper without their Gu
dorsing The same. He farther testified
that accommodation paper had been made
and discounted for their benefit without
their appearing liable either as drawer or
endorser. In other words, the books 81
the bank and notes discounted do not ex.
hlbit the true Liabilities o. the directors.
To what extent this system Of ilancief
ing has been carried We are unable Ia
state.
About The middle Of January last, the
circulation Of this bank was nearly as
great as the capital then paid ia would
permit. Having pressing applications for
money, the directory unwilling TO violate
the letter of the chartef By a farther issue.
resorted to the following method to IN
crease the capital Of the bank.
On The 18th Of January, FIVE Of the
rectors had their notes discounted foI
/ SI5,096 81 zach, at thirty days netting
| SO, 900. They sand il was tha under.
standing thai the proceeds Of these notes
were 70 be paid IN specie, which was MOI
done, and portion Of the directory saw
that there was no such understanding q
their knowledge. There was, ia faci. noI
that amount of specie n the bank. on
the 18th, the four other directors had tlieil
notes discounted for similar amounts, thu.
increasing the pital Of the K 1885,.
600, and forming a basis for more issues
which were made.
They are privileged by sbs charter e
issue two dollars for one paid IA. I1 lhi.
case, as with almost every other sank r
Inc State, The issues were ncl made ubol
The amount they had paid into ae bank
but % that which they owed o the bank
thus making then indeblea aud 40
then surplus apita basis 81 fhsIr
sues At the time she capita 81 bs bahl
was increased eco there was
unoersta ing among he director HAT
me ration Of tee hfy DAYS
stock o,gne by mem sao Be- eQaaAI
divided among themselves he cab'|o
PAD ln' p 897 coo. d his ainoaal
directors eva lo ards IS 100000 Ion
9,9oQ ef cf. o tIs notes 81
qlEeeeiS Without
esaet 'e h
stock leH van If|nc
Frnrn b s4fnf nU ara fIlsast.4t - ..s..s..