Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1840-02-18
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IC0MMUNicATIoN.
mr. Editor tiny observer Of the times, can
not but have noticed that this is in truth an age
of experiments, and that the greatest Of all ex-
perimenters are Legislators. The different
volumes Of the laws Of this State Or Of any other
State m the Union, for ihe past ton years, are
beautiful commentaries upon the wisdom Of our
ralers--which is in truth an exact epitome, Of
the changes, that have taken place inthe pros
periy Of our country.
Not FIVE years ago, ard every village IN the
State was asking for bank charter and no
rail road or transportation company could be
established without banking privileges. Some
Of our most sober citizens.were firmly impress
sed with the belief that, thecreation Of bank
crealedcapital--that the bank by being empow-
cred to issue notes to double the amount Of
capital was. in effect. coming money Although
this is truly erroneous both in theory and prac-
tice, still, the creation Of bank. il properly
conducted, adds wealth by increasing the cred
| it Of community. For, twelve individuals,
singly. might be entitled to small credit
which, when united. would sweIinto conse-
quences while at the same time individually,
their own power would be enlarged rather than
diminished. This known result has been, in a
great measure, the cause Of our statute books
being loaded with acts Of incorporation. And,
incaIcuIable evil has resulted from this enor-
nous amount Of banking interest--or more
properly speaking credit. Money was at the
command Of every one who could obtain an
endorser in bank. Millions Of currency, with
no other basis than credit, was gladly received
by every man in the community. Property o
every kind rose in value; and so strong were
the temptation TO speculation, that, thousand:
irresstaDly rushed into it, and were ruined
Every man possessed property to a large a.
: mount, bought at high prices, owing to the fic.
titlous value put upon it, by the immense cir
, culation of money, intrinsically, having no val
, ne. Economy in expenses was the last con
] sIderation with the most of the community
And it followed, that, long list Of extravagan
expenditures together with depreciation 0
the value of that proper ty, which was Dough
on credit, soon Frustrated the hopes of many
! In those times of universal prosperity, which
was mainly brought about by the different lie
gislatures throughout the Union, in giving 81
many rotten banks credit, very little wa
2 done TO keep alive that credit, by honest an,
, well directed labor in increasing the agricul
tural, manufacturing and commercial interest
: of the country. The State of Mississippi wa
4 equally injured in this respect; and the follow
ing extract taken from an Agricultural Repor
recently published in this State, VIII show tn
) foundation upon which our wise Legislation
. built up the credit Of the banks; and tn,
ground upon which those who were DESTROYS
to make fortunes, without labor, stood, whel
i they embarked so deeply in speculation:
The following calculations are made by
gentleman who seems to have devoted a goo
: deal of attention TO the subject, and whose sta
e tistics, I have no doubt, will be found somewha
e under the mark, though sufficient for all rea
/ sonable induction. The calculation is base
n on an average Of FIVE years. The debt sid
e stands thus
: l 100000 yards OF bagging, for
: 100000 bales (6yards. per
e bale) at p cts. per yard, is $4,000
it 2 100000 lbs rope, at IL l-2
r cents per Ib. e lbs per bale) 10000
S 10000 pounds Irvine for do,
Id for every ten bales, is 900
$4,000
5 There were in 1886, I64,398
+ slaves in this state; the ex-
: pense of feeding and clothing
It each, is estimated at S40
per year $3.50, 90
e There were in 1886, l,048. $50
d acres ofland in cultivation in
It the state-cost of farming
v utensils of all kinds-$2
: per acre is not looked upon
as too high an estimate 10000
e Considerednecessary expenses s94sl.o9
d There were in 1886, Al ,239
n white male inhabitants in the
state over eighteen years of
i age-charge them with ex-
d pending II ID cents per
g day in cigars and liquor &c. ISL AS
+ The whole white population Of
the state, male and female,
3 amounted in 1885, to l44,35l
: charge them to average, in
# excess of dress, and other
o needless expenses, ss25 per
annum, 3,6O5.77t
: Useless and unnecessary ex-
penses, S5,49O,25.
h Necessary expenses, 9,43I ,9sl
;, $l4,92223.
To which add interest, paid TO
: commission merchants in N.
r Orleans, and the chartered
bank account of the State of
8 per cent. per annum, it
would make about 100000,
n SIS, 1929
: Thus making the Indebtedness of the Stat
6 over $17,0G0,OO0. The credit side of tn
= balance sheet is made up of a single item
L 100000 bales of cotton, valued at $50 ne
r bale, amounts to SI5.000,O00, leaving the bal
e ancc against us of over 100000. Thus. in
stead of making money, we have been roing il
: debt annually, at the rate of some Sc. OO0, OOC
u In the estimate of expenses, no account is ia
IS ken OF the annual outlay for horses and mules