Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1839-01-19

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one dollar o. circulation Is esteemed sufficient for
thirty dollars Of product.
No political economist has ever conlendtd that
any country required more circulation than one
fih Of The annual value Of lis products. Unless
restrictions are impss ed on the circulation Of The
banks. hs redundancy will be inevitable, another
suspension will occur. and The country again SUI
fer the worst Of al evils in the blighting effects
Of a deprecated. lnconyerible currency. The
whole paper circulation Of the United States does
not at present, exceed one hundred and thirty
million Of dollars. IFS great depreciation 10 this
State has been caused, mainly, by Us excess /;
and il is for you 10 determine whether, in future,
the honest laboreT shall receive his reward, and
the enlerprising merckan, the fruits Of bis indus
Sry. Excess Of circulation has increased the
cost Of producing cotton at least three fold, but
has not enhanced the price Of the article single
farlhing. Its direct tendency IS to impo,erish the
planting and ruin the mercantile interest. AIDE
quate penalties should be imposed for the viola.
ton of the provisions Of bank charter.
The history Of corporations in every age, de-
monsiraies that men IN a corporate capacity will
be guilty OF acts which they would scorn 10 per-
petrale as individuals; their proceedings ATE
mostly secret; responsibility is divided. The
thoughlless acts Of to-day become precedent to-
morrow ; temptations beset their paths and we
have the authority Of Holy Writ for asserting
that "lhe heat Of man is deceiilu above all
things" When II ~ the interest or wish OF
corporation 10 assume powers not granted, the
charter is ransacked for authority, and should
none be found, il is exercised under the delusiYe
M alaN hat Il cnrt ho ac e tk. apl
called for by that stern tyrant necessity. An
examination Of the report Of the Bank Commits
siOncrs will show that the directors, in many in
stances, have Borrowed nearly the entire capital
Of their respective institutions All The banks
have gwen heavy discounts TO their officers This
Practice has grown up during the fever Of specu-
latlon which has rugged for the last four years.
cannot believe that il has been Of much real ad.
vantage 10 the directors themselves; the interest
they have TO pay IS consuming their substance
the property they have purchased is generally un.
productive; and The high price at which il is held,
has IN great measure stopped emigration TO the
State, and retarded the settlement Of the coun-
Try. lsuggcst TO your consideration the propre-
~ Of requiring the Bank Commissioners to take
down and report the names, residence, occupa-
ton and liability Of the various debtors oil the
banks examined by them.
In Louisiana such document was published
by the Legislature. II had saluary effect, and
caused the banks themselves 10 correct many
abuses which had impaired their usefulness. The
names, residences, and liabilities of The debtors of
he deblols Of the State Bank Of Alabama are
annually published. Such course in regard 10
iur State institutions, the Planters Bank, and the
Union Bank, would secure TO every
PORTION Of The State the equal rights and advanta
res which they were chartered to afford.
Faror'lsm void thus be prevented, and the
ecuriiy Of the State enhanced. 1t would also
70 advantageous TO have the votes of the direc- |
ors on every important question recorded and |
uo'ished. Responsibility is absolutely necessa.
TO secure The proper and safe management of |
ur State institutions. The State, by her credit |
lone, has furnished The whole capital Of tho Mis-
lsslppl Union Bank, and justice requires that |
he should have the appointment of majority of |
no board OF directors, and il Is deserving of |
our serious consideration whether the charter |
ught not now TO be amended so as 10 secure 10 |
be State controlling influence over tho insti,u.
lon
The large interest which the State possesses in
he Planters aud the Union Bank makes II in.
unbent on me 10 call your particular attention
The affairs and conduc, Of those institutions. |
ne iaIlh OF the State IL pledged for the redemp.
on oil two millions OF dollarsof bonds. sold 10
IKE stock in the Planters Bank, and Cor the
'hole Of the capital Of the Mississippi Un,op
Bank. A just regard for the honor Of the State
demands that those institutions should be man.
'ged with great prudence, in order that ample pro.
nsion he made for the punclual payment of the
interest and Of the bonds at maturity. Both of
hose institutions have refused to suffer their nC.
airs to be examinedby commissioners chosen nv
ne Legislature Tor that purpose; and the reason
assigned by one Of them for refusing is most ex.
raordinary.--Banks that are well conducted
have nothing to fear from public scrutiny and
he right OF visitation IN the founder Of a como.
fal'on, Is unquestlonaSe. BY an express clause
IN the law creating the board Of Bank Commits
sioners, all banks subsequently, chartered were
made subject 10 It's provisions. The Union
Bank was chartered long after its passage, and
Inc Stale Is yet tho sole stakeholder The com.
were sworn officers, and required by
The most solemn obligations Of duty 10 examine
that institution, yet they were refused admutance
on the flimsy prelext that their minds were biased,
lhey were not Judicial officers, nor were they il.
fors. Whether that institution or any other is to
DO suffered TO put the sovereign will Of the peo
pie Of the State a, defiance is for their tcpresen-
'at'ses 10 determine. Il is 10 be regretted that
The Union Bank should have added TO tho quaint.
" Of deprecated paper in circulation, by the is.
sue Of large amount Of post notes having ten
months to run to maturity, The payment Of these
notes 70 their customers al par, was not only on.
pressive, bu, unauthorized Those who obtained
discounts aud received post mites in payment, in.
directly paid 10 the bank seven and one.thrd per
cent. Tor four months, equal to twenty-five per
cent. per annum; neither the profits Of arricul.
.ufe' nor The ga'ns OF commerce, will justify the
borrowing OF money nj such onerous rates. The
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