Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1840-02-11
sTATk BANK on ALABAMA.

STATE BANK OF ALABAMA.
From the Report Ofthe Cashier Of the Bank
Of tie State Of Alabama at Tuscaloosa, JaAu-
airy 81, 1910, il appears that that institution is
in most horrible condition; nearly as bad as
our own Brandon. No wonder that it suspen-
ded specie payment; and yet, this is the same
institution which is to issue Post Notes-or its
suspended paper, as currency Tor the people.
Do the people want it, or, win they have it
We are friend to Banks--properly conduc-
ted--but not to such a system as this. 1t is
altogether mistaken idea for the Democracy |
to suppose that the country win not hold them
responsible for these manifold eyils--an mum
dation of shin-plastsrs, with every otter con-
sequence it may Sring in its train. Whatl
Democratic Legislature to authorize the ennis
sion of TWO MILLIONS of the paper of a
broken Bank, one which they acknowledge to
be such. Was the like ever known before -
But what is there to ever payfhis paper with?
Already the notes in circulation alone amount
to33O,sS3,0O and the specie to meet it, to
7,665,44, whilst debtors are TO be allowed FIVE
years to pay up their liabilities; and, indepen-
dent Of all which, is the neaO issue soon to be
made.
It's mistaken idea with some and, upon
which we Will here have something to say,
that, the State is pledged for the redemption Of
this State Bank paper. even should the Bank
lose every dollar owed by debtors. Such is
not the case. The State has nothing more to
do with redeeming the paper Of the State Bank
Of Alabama than zoe have. When the bank
was created, the State sold her bonds-in Eu-
rope, probably, and loaned a portion of the
money 10 the bank to bank upon, thereby caus-
ing the bank to become debtor to the State,
for the amount Of its capital, instead Of to indi-
vidual stock holders, as IN other cases--which
capital, if squandered, becomes a loss to the
people Of the State only, with whatever por-
ton of the paper Of the bank they may happen
to hold. And, whenever these State bonds
have to be paid, upon which this money was
borrowed, should there not be funds in the
State Treasury, then, the people win have to
be taxed TO pay them; but not to pay any is
sues of The bank; which would become as
worthless under such circumstances as any
other broken bank paper.
That an opinion that the State of Alabama
was bound to redeem the issues of her State
Bank, should failure Of that institution occur,
has extensively prevailed, we have certain
knowledge; and it is to correct the error Of
that opinion we have made the present re-
marks, and not to endeavor to injure the cred
it Of the institution, should any be inclined to
place wrong construction on them.
The letter of the President, to his Excellen-
cy the Governor on his taking charge of the
institution, together with the Resolutions Of
tho Board to suspend, and the Report of the
Cashier, we give below, for the information Of
such as may feel an interest in the affairs Of the
Bank:
To hrs Excelency, ARTHUR p. BAGBY,
Sir-It becomes my painful duty to inform
you, that this institution has suspended specie
payments.
The new Board met last night, and after
beng properly organized, proceeded to exam.
inc the state of the Bank, and found that the
specie fund is reduced to the small sum of Sc
ven thousand six hundred and fifty-6ve dollars
and forty-four cents.
The accompanying Cashiers statement, ex
hibIts the present state of this institutional
so, copy Of the resolution Of the Board, di
rectng the suspension.
AL Of which is respectfully submitted
Respectfully,
JOHN MARRAST,
President
Bank Of The State eff Alabama,
Tuscaloosa, Feb. LIST, 1870