The Rodney telegraph. (Rodney, Miss.) 1838-1840, 1840-01-28


was making, by creating one debt to pay
another, for which the directors were liable,
demanded their correspondence with the
Co ssicn monhant in New Orleans and
Bccslnf bf the IA months post
votes, bod 81 winch the bank refused to give
up. DR.. 8. Duncan was an intermediate A.
gent between the bank and the commission
merchant, and after commenced the ex-
animation, he removed the correspondence
from the bank, but stated in note to Mr..
Fisk, one Of the directors, that the post notes
had been sold at various prices, from lOS to
IL per cent discount, Tor Louisiana baDk
paper. The pernicious effect Of this ope-
ration on the interest Of the country, IL OBJ
vious. Had the bank been able to sell Z
sufficient amount of these post notes at 30
cents per dollar. to pay the federal govern
ment, the people into whose hands the paper
should have fallen, would suffer, while the
directors would be released from their indi-
vidual responsibility. Il was supposed that
post notes, not bearing interest, being less
valuable, would supersede notes bearing in
terest. The latter would be purchased by
capitalists, while the former would become
the common circulating medium of the coun-
try. But the Glamour raised by the people
and the press, on the appearance Of those
notes, induced the bank TO give IL months
post notes, bearing S per ant intesest, for
all presented at the counter, and also to
make similar exchange with the New Or
leans agent, for the sale Of post notes. AT
present, there are only about Sc, 900 Of Ia
months, and $4,000 of IL months post notes
without interest, in circulation.
Last July, the bank issued bonds to the
amount of FIVE hundred thousand dollars,
bearing eight per cent interest, payable in
lS43, and placed them in the hands OF DR..
Stephen Duncan, for sale. DR.. ID. disposed
of fifty thousand dollars of these bonds to
Mr.. Schott of Philadelphia, but as yet, the
bank has realized only twenty thousand
dollars of the proceeds. Bills on New Or
leans to the amount of twenty FIVE thousand
dollars were given in payment, but as they
are not yet due, they have not been carried
into the balance sheet. When these bills
shall be paid, the liabilities Of the bank for
bonds payable in l643, will be increased to
forty five thousand dollars. The bond for
the balance of the fifty Thousand, amounting
TO FIVE thousand dollars, was to DO paid in
Philadelphia, but before it fell due, the
banks had suspended specie payment. The
purchaser of the bond now, will pay only in
Philadelphia bank notes. which the Agri-
cultural Bank refuses to receive.
II will be seen that the bank is liable for
bonds falling due from the LIST inst to the
lst of January, 1912, to the amount Of
ST. ,O94 ,6l5 70. Tho bank refused to tell
who purchased these bonds, lest it might
injuriously affect the credit of the holder.
Besides the agent in New Orleans for
the sale of post notes, the bank has several
agents at present engaged in the purchase
of cotton with similar funds. The officers
of the bank and two merchants in Natchez,
are the agents to purchase cotton, and with
the proceeds and the funds realized by the
sale of post notes md the bonds alluded to,
the bank has paid, within short period,
upwards of one hundred thousand dollars of
the government deposites, besides bonds |
which fell due during the past year. But
this transfer of Indebtedness destroys the |
ultimate ability of the bank to meet Its en-
while it increases the embar-
Of the country. Il also enables
the bank to pay the wealthy capitalist and
release its own directory; but this is effected
by throwing out a spurious currency, which
depreciates in the hands Of the planter, the
|aborer and the mechanic, who are less able
10 bear the loss.
I endeavored to ascertain the amount of
specie in the Pontotoc branch during the
and sales in 1886 and '37; the amount Of
bills purchased in Mobile and New Or
discount at which they were
and the amount Of specie certifi-
Gates given at that branch. demanded the
weekly returns from the Pontotoc branch,
md Mr.. Merrill, the Cashier, produced
hose of 1888 and two returns Of 1898; but
,e could not lay his hands on the returns Of
1886 and '37, which alone could have
brown light on the subject was enquiring
lbOur The mother bank seemed to know
,othing Of the subject, and preferred that
hould examine the officers of the branch.
On examining the hank note. register,
marked as cancelled. called for the notes
md the teller, and on examining the latter.
found that the operation of caucelling had
,een performed after commenced tho ex-
cf the bank.
After deducting the capital, the item tor
'rofit and loss, the debts to banks in Missis-
ippi, which may BE- paid in = spurious cur.
ency, and the so, 600 Of bonds not due till
uly, l643, It will be seen that the bunk in
be course of the next two years, will re-
uire two millions two hanlred and thirty
Id thousand dollars il 0aeaoot ilsl