Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1841-04-07

sen ,the Banks ana currency OF the !
~, leave to make the following
yiS y" REPOR L:
Iteration Of the subject submitted |
nc eoD,o;,tee. was suspended 10 conse-
Nv co ,Sa adoption on the 9TH instant, OF a
ae Of wv The Senate for adjournment on
eb l,st mentioned date, as the House
Snce uo ,s,;ves had not concurred in the
your committee have occupied the
sc lago.I y was left to them from the perform
nc E inSa;r duties on the floor Of the Senate,
&c uG Gsr COMMITTEES, by an anxious aud
% Owns;deration, of the weighty and i'm
ggen1 o ',;ect committed to them.
aSiani soJ Scr;nc the subject of the banks and
heonS ',,nr Committee conceive that, as a
sreOey enquiry, it may be useful to take a
rsNnia.l.;J .Dect Of the history Of banking in
el ruV .ppd the condition OF the currency at
be SIa' :, S nos Gifts history since the adoption
l1oSs State Government,
9ul ,Ss Inerod of the assumption OF cur rights
hue io,e member Of theiUnion, there exist
"a scP sulo hank, the "Bank of Mississippi"
a sug u airing ont Territorial Government
saoIs. IN,;,Ttior had been conducted with
fhat 4ns,is'v and exemplary caution and wis
paIseHJJ',be currency it supplied was sound,
Sl' aus lioysJ Justly the public confidence. In
nd epJc ISIS. the old bank was merged in
ne loaL oftbe State of Mississippi" which.
be Da on;ov the exclusive privilege of banking
E's y ny charter. This bank, during its ope-
brls sy,ended the well founded reputation
nlou ,,,eJecessor, and acquired such unlimited
d u .IPtsrsye confidence, that its notes passed
na Nv Nv and freely, not only throughout the
lslof,be State at its par value, but 1t was
inus III. n, received throughout the western
cI1."s and in the northern cities, either at
@ulu! a. very small discount Il enjoyed
,0blic confidence to degree not exceeded
w. similar institution in the Union; and it
p he said, that it was mainly instru-
y. -!5,,l n establishing a credit and character
l.Ss State, Of which il might justly be proud.
y. believed that its circulation was more cx-
.;Se than that of any other bank except that
sIs limited States, and the public confidence
y, soun,ness was co-extensivo with the
.,,merrlal operations Of the citizens of the
Sale.
n 1890, the public voice loudly called fol-
no cbarterng Of another bank. In an evil houi
NJ, voice was answered, in the creation by
Ss LEGISLATURE, of the "Planters Bank of Mis-
g,ooi," Whatever views may be entertain.
Loiihe wisdom Of granting to "the Bank oil
w STATE of Mississippi" the exclusive privi
ann Of banking during the period Of Its charter
sslm and impartial retrospect of the pas
so0, the present moment, cannot fail to bring
MN i the important and may be useful lesson
b,t this violation Of the faith Of the State wa
he FIRST, and consequently, the most dangerou
step towards the general run, which has since
frustrated our prosperity at home, and oul
character and credit abroad. The old bank o
NE State having become obnoxious TO som
extent tothe public sentiment, surrendered il
charter and went into lIq uidation. The rag
br bank charters, like other lust let loose, bu
orreased from itsifirst qualification and severs
aber banking charters soon followed. Unfor
unltely this lust was stimulated by the deter
uinatOn Of the late Executive of the Unite,
State; 10 put down the bank of the Unite,
Safes. The fact that it was certainly soon 1
gDire, served as a plausible reason Tor char
ping more State BanSs, to supply the capita
anil calculation about to be with drawn. TIL
bm existing plan Of the executive of the Ur
I'M 10 substitute the State or local banks 70
Me- Bank ofthe United States with its branche
receive and keep the public deposities, an
perform the necessary fiscal operations
he Government gave a fearful impetus to tl
already extravagant desire for multiplying loo
banks. The Secretary Of the Treasury Of II
United States in his Circular to the banks
he banks of deposits, on the occasion of th
transfer Of the public money from the Banks
fine United States, gave the last fatal impuls
10 he prevalent mania. The apparently i
creased prosperity which followed in the wal
Of these various stages Of extravagant legisl
Ton served to preserve and TO increase the ge
eral deusion, and to press it outward to Ii
fna catastrophe. The bubble was on Il
eve Of bursting by its own over expansion.
ais stage, the Executive ofthe Union BEGAN
convinced that the experiment must fail; tn
lie local banks of whose entire competen
he had recently boosted, were inadequate
perform the requisite fiscal operations Of q
Government. With his accustomed promp
ude and energy he determined upon their de
ucton. 1t required but rude touch to pr
dnce The explosion which has covered our Sta
with disctedit and brought almost univer'
rum to our citizens.
I may be fairly enquired, how could the a
ton the General Government in relation
hepublc deposits, produce so wide spread a
DISASTROUS effects! How could 1t operate, c
c,pt upon the deposite banksl These que
tons may be satisfactorily solved, by br
Consideration o. the subject. II Is but to !
feet that such a connection subsisted betwe
5.Ilhe banks, not only of the State, but OF
lnion, so far as commercial relations exlst'
and between all Ior;ions Of the. community,
teenabled TO perceive that whatever shot
lfect one portion, must necessarily affect
yhoe. All the banks and all the citizens
he State, stand in the mutual relation OF de
Tand creditor to each other-and 1t woI
Be difficult to estimate fully the effect o.
ude shock upon any portion Of them 1t N
ohappeh, that the inability a debt Of even n
derate evtent vonld produce the conseqv'
inability, insolvency, and ruin Of an humid
others, standing connected with each 9th
IKE the links ola chain, as mutuel debtor ;
GedItor. The fracture Of a single link brea
NE Whole cham.
10 apply these Illustrations briehy-let
oppose (Which is but the fact) that when
fnlers Bank and the Agricultural Bank
aved the public deposities, with circulat
ndabilaties, already extended to the utmi
@'nds Ofithelrcapacity, it was enjolned u
Dem to use the funds Of the Government Fl
lm discounts! 1t is not easy to perceive
he effects would be repletion or imitation
be extent of their connection with other ba
Odthrough them ofthe.whole community!
bis point, the very acme Of general expans
deredits. both amongst banks and idlvidu