The Yazoo City Whig and political register. (Yazoo City, Miss.) 183?-1840, 1840-01-17


vacancy" The terms of the first commits
sioners elected in May, 1887, expired nea
three moths after the adjournment Of the leg
islature in February 1869. The lew contains
no limitation on it's face, and expressly re-
uuires that an examination of the Banks
shall be made once in each year. The leg
islature adjourned in 1889, without electing
the successors TO the first Commissioners, and
when their terms expired, vacancies occur
red, which it was imperative on the execu-
tive, by the letter and spirit of the law, to fill.
This duty was discharged. | regret to in
| form you that the Commercial Bank of Co.
lumbus; the Tombigby Rail Road and Bank
| ing Company; the Aberdeen and PontotOc
Rail Road and Banking Company, and the
Planters Bank Of the state of Mississippi, re-
fused to let the Commissioners examine their
affairs, and assigned as a reason for their re-
fusal, that the Executive had no authority to
commission them. The bank Of Mississippi,
and the bank OF Grenada did not make any
reply to their application. The Agricultu-
raj Bank, and the West Feliciana Rail Road
and Banking Company, denied the author-
ty of the Board to examine their transactions
The Mississippi and Alabama Rail Road
Company alleged that their officers were SO
much engaged in bringing up their books,
and attending to their cotton account, that it
was impracticable for them to attend to the
Commissioners. The President, pro TEN of
the Mississippi Union Bank, in answer to
the application of the commissioners, replied
that ''the Directory of the institution consid-
ers the question as to the commissioners right
to examine it's affairs, settled by the resou-
ton adopted last year, when asimilar appli-
cation was made by the Commissioners then
in Office The grounds Of the various refu- |
sails, shew an utter disregard of the laws of
the land, and thorough contempt Of legis- !
lative control. Ihave never seen the reso-
luton of the board of Managers Of the Mis- |
sissippi Union Bank referred to- but pre-
sumo its substance is to be found in the re-
ply of it's President to the former Commits |
sioneTs, dated Nov. 23rd, 1888. 1t is there !
in stated that The Legislature els equally COM
petent with yourselves) to perform the du-
ty, and would be free from the influence of
any disqualifying bias growing out of pre-
conceived opinion, which we have ample
reason to apprehend might not be the case
with yourselves, in prosecuting an exam
ination of the bank"
The act Incorporating the subscribers 10
the Mississippi Union bank, did not receive
all the sanctions required by the Constitution
until the fifth day of February, 1888. No
rights attached under the law previous 10
that period. The preliminary steps for the
organization OF the Bank, had not been ia
ken previous 10 that time, and no principle
is better settled, than that bank charter is
imperative, until accepted by the corpo-
rators. The second section ofthe act, appro-
we'd May 18th, 1887, and which went into
operation at the date of its passage, express
l. .lot
having banking privileges, that shall be
created, under the authority of this state,
shall be subject to the provisions contained
in this act" 1t is, therefore clear, that the
bank commissioners, had right to examine
the Union Bank. The state, at the time of
the application, was the sole stockholder-
her credit had established the insttut on and
inasmuch as the constitution enjoins upon
the executive, to take care that the laws be
faithfully executed, it was of the last impor- /
lance, that should know before signing the |
residue of the bonds, whether the stock ia
ken by the citizens of the State, had been
secured in the manner pointed out in the
charter, and the affairs Of the bank conduct
ed according 10 its spirit. | am induced TO
believe, that portion Of the property ac-
cepted as security for that stock, is ncumber-
ed by judgments, mortgages and deeds of
trust-!hat the valuations of the appraisers
were generally very extravagant-that in
many instances, the titles to the property Of
fered are yet imperfect; and the whole man
agement OF the affairs of the bank has been
disastrous TO it's credit-destructive to the
interest Of the state, and ruinous to the in
The cotton advanced upon by
the bank in some Instances, has been attach !
ed, and the suits decided against the institu-
ton. Many of the cotton agents and con- |
sIgnees. are deiau,ers, and great loss on the !
cotton account is inevitable. The post notes |
issued in violation oIaw, have greatly de- |
preciated, and if the decision of several of
our circuit Judges, are affirmed by the high |
court of errors and appeal, actions cannot be |
sustained on large portion of the bills re-
ceivable of the Bank. The ninth section of
the charter, prescribes that the managers of
the bank, shall have power to appoint three |
commissioners, to negotiate and sell the state
bonds. / signed and delivered to the man
ayers last summer, bonds to the amount ofl
five millions of dollars. The president oil
the Bank was despatched eastward, to make
a sale, but was unable to effect it. 1t NAV
well be questioned, whether the spirit of the
charter did not require this important nego-
tiation to be placed in the hands of the three
persons. 1t must be conceded that the SER
vices of the President at the parent bank,
should not have been dispensed with at such
a critical juncture.
On the 9Th OF November, 1899, l reciv-
I'd letter from the cashier of the bank, to-
5ether with two resolutions of the board;
one of which informed me, that the remain
ng five millions and half of bonds were
,eady for my signature. Believing that there
was no immediate prospect of sale Of the
'onds, and that further legislation might be
equisite, in relation thereto, determined
lot to execute the remaining bonds, until /
hould have an opportunity Of presenting &
he whole question to the representatives of {
he people, and of recommending to them,
UGH measures as the exigency of the case !
alls for. {
The president ofthe bank in his letter to !
ne, of the Sd of January, 1888, stated that it
would sat all times afford him pleasure TO |
lrnish the executive of the State fIlll view ,