Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1841-01-13

board Of directors, previous to the pas
sage ofthe bank law. The evidence
required by law has not been furnish-
ed 10 the Executive, to enable him to
issue his proclamations declaring the
charters of those banks forfeited.
Ihaye understood that the CONNER
cial Bank Natchez, the Commercial
Bank of Manchester, the West Felici-
ana Rail Road and Banking Compa-
nv. the Bank Of Port Gibson, and the
Northern Bank Of Mississippi. compli-
ed with the provisions ofthe bank law
during the last year. Their heaviest
engagements were to be met on the FIRST
day ofthe present month.
The Situation and affairs Of the
Mississippi Rail Road Company, the
Planters Bank ofthis state, and ofthe
Mississippi Union Bank, will demand
your calm consideration. All ofthose
institutions are insolvont and neither
Of them can resume specie payments
for several years. or make further
i loans. Isubmit herewith copies ofmy
letters to those banks, calling for spe-
cial information in relationto their con-
dition, and the answers and statements
furnished. The Union Bank has four
thousand three hundred and forty nine
dollars and six cents Of specie on hand.
Her suspended debtin suit is, $269S,s69 90
not seud on, l,777,337 7S
" resources, chiefly unavailable, S,034 l54 %
" immediate liabilities 3.034,l54 '25
/" capital stock, 100000 90
A reference to the report ofthe joint
Committee Of the Legislature at the
last session, will satisfy you that not
more than one third Of the debts due
the bank will be collected, and the
whole capitol stock has already been
lost. The Bank has seven thousand
bales Of cotton in Liverpool unsold,
on which it has drawn 1857, l16 04.
An advance upon cotton in 1888.
They will sustain clear loss, includ-
ing interest Of thirty dollars per bale ;
equal, in the aggregate, TO $4,000.
The bank has been irretrievably ruined
by making advances upon cotton, issu-
ing postnotes, and loaning the principal
portion Of her capital to insolvent indi-
yidualsand companies. The situation
of the Mississippi Rail Road Company
aud the Planters Bank, is equally bad.
The former, in the year 1889, issued
about a million and hallof dollarsin
post notes, and expended them in con-
structing the rail road aud building ex-
pensiYe depot. l certainly would not
have approved the transfer act, had |
anticipated this ilnprovident course.
The company has failed to pay the in
terest on the Planters Bank bonds.
The Bank of the United States has
advanced the same, and has presented
an account against the State for one
hundred and twenty-lour thousand and
twenty-five dollars and twenty two
cents, and demanded payment thereof
in specie. The first instalment Of the
Planters Bank bonds, amounting to |
the sum OF $125, 900, will be due next
July. Ne provision has been made
for It's payments. One OF the Circuit
Judges has decided that recoveries can
not be had on the notes belonging to
the Sinking Fund. The fund is speci-
ally appropriated 10 the payments Of
the two FIRST instalments ofthe Planters
Bank bonds. The Mississippi Union
Bank, hereafter, will be Totally una
BILE to pay the interest on the FIVE mil
lions OF State bonds issued in the yeal
1888.
In my last annual message, ] in
formed you that l had declined execu-
ting the last FIVE millions Of State bonds
called for by the Mississippi Union
Bank. Having a we'll founded appre-
hension that an attempt would be made
illegally TO dispose of the FIVE millions
of State bonds issued in the year1S39,
and delivered to the managers Of the
bank, / issued my proclamation on the
second day of March last, warning
all persons and corporations not to ad-
vance money or securities, or credit
on the hypothecation of said bonds, or
TO receive the same in exchange for the
circulation or other liabilities of the
Mississippi Union Bank, or to purchase
the same on a credit, or for less sum
than their par value in specie, or on
any other terms not expressly author
lied by the charter of said bank" A
copy Of that proclamation is herewith
transmitted. l am happy to inform you
that it had the desired effect, and has
prevented an invalid sale Of those
bonds. Inasmuch, as there is no pros
pect that the State bonds, and the Sc
mi-annual interest accruing thereon,
can be paid by the banks bound there
Tor, it becomes us to consider the atti-
tude, in which this safe of things pla-
ces the State. / am not advised upon
what terms the two millions of State
bonds, delivered 10 the Planters Bank
in the years 1881 and 1888, were sold
Those bonds were endorsed by the
bank, and the act transferring the
Stale stock in the Planter Bank to the
Mississippi Rail Road Company, and
Obligating the latter company, to pay