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

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=, Inc e, banks at length were crushed 50 Low
70 pc y measure outawed. nr;e ii , .vw' as
,ase" - give Judgements in their fsvar 49,. r.
Sssn shadow ofjust plea aoa;ns, , n1sl
49, inuais NO longer regarded Their cbasaa
en5 :; ~. puncluality IN payment of their net
,'oefiess instances have evan AZ
of,Sa me calls upon them for the n;t,oaoo
tan5s discounts, upon renewals other ne.
'eueered OF yielded to them. W paFes
eo 1uon y Dret and very imperfect hut vo,,,
n az; peleve true history, of hankino
banLs ,ae.. ne present condition Of the
are - ,,'"y DC briefly stated-many Of them
arc 49,. : hopeless state of insolvency; some
thor 4 aeg then opportunity to wind nm
20 SO without bankruptcy whom ,i $500 :; -
NNai OF depressed energies and ,oso :, 80
% tne country, and restoration oftbo Ia,,,s
~ 'he land to their former impartial ALWAYS
over the tribunals Of jnstce. A few. bnt
5..y ieW' are IN so sound and healthy a con.
u.sloh that they viii probably outliye the
ISIS I:, anu wall be prepared to resume the Or
uihdfy and legitimate course of snch ;ru,;tn
IONS, when public confidence and nuhl;c faith
snall be restored and the banks of neighbor;ne,
state shall have been prepared for final re
SUMPTION OF specie payments, and of their
business. In the remarks which vour com.
mitlee have felt it their province to make.
eney would not be understood TO iustyfv auv
OF the banks IN the dangerous extrayaoances.
winch mas, to some degree, characterized
even the most prudent and best MANAGED
among them. A morbid state Of things has
uruehiaoe existed. 1t Is the part of.wisdom
70 trace u 70 Its ultimate causes. PopuIar
clamor called upon the legislatures for the
multiplication Of banks-popular clamor in
some degree constrained these institutions IN
extravigant discounts. It IS known 70 sor,o
oiyour committee, that at the moment before
the general crash, consequent upon the imnr1I-
dent stretch their discounts, 10 their utmost
limits, the demand for bank discounts was such
i that perhaps not fourth in some instances
not tenth of the paper offered at the board
OF directors could be discounted. It would
|. have been well for the country, if ,cisdom and
RfmHeSS ~ Legislatures, and bank directors.
" had restrained and resisted The torrent which
!. has been so disastrous in its effect.
: In consideration the present aspect of the
currency IT may MOI be amiss to enquire why
IT is that we have no currency of our own. but
that the State is flooded by the notes of banks
Of the neIghboring States of Louisiana, Arkan.
" sas, Alabama, &c, 1t has before been Incl.
n dentaly remarked, that the ability of a bank
y to meet its liabilities, depends in some decree
s. upon the public confidence maintained in its
/ integrity and solvency. No bank Of discount
u and circulation, ever was, or ever will be es
l. tabshed, upon the basis of the limitation of al
7, It's liabilities, to the amount of specie in ITS
ST vaults. Its operations, as all are aware whC
s are acquainted with the subjects, are BASED tC
n, greater or less extent upon its credit or the
Is public confidence in its sovency and in the
Is integrity and prudence of its management
C Whilst that confidence is large and firm,
II bank is unable safely to keep in circulation ;
81 large amount of notes in proportion to The spe
ne Gle inits vaults. Whilst confidence is unsha
Is ken, no one makes the demand of specie, be
ye cause the notes are more convenient and safe
ut except only when in the absence of more con
al convenient and safe means of exchange, it may
r be wanted for transportation beyond the linn
r its of the circulation of the bank. The secu.
ID rty Of a bank and its ability to meet the emer
ID gency of any shock upon It's credit, depend
to wholly upon its ability to call in an adequate
r portion of its discounts promptly to meet tn
al emergency II is clear from this view of tn
ie subject, that the security OF banks, whose del
n ings are principally with the commercial por
or ton Of the community, and in bills or note
es having but short time to run, must be great
nd er than those dealing in paper having lon
OF time to mature. Our bank charters were ger
he orally framed to meet the popular idea, tn;
,al the planting portion ofour people were entitlc
he to a large share of bank accommodations, an
OF generally require a considerable proportion
he of their discounts to be at 10 months, and gel
of orally renewable. Such paper, although in o
Sc binary times very safe IN the end, is altoget
in or unavailable to bank in any sudden enc
Ike gency Hence the catastrophe which owe
la whemed them, by the sudden storm of quito
en- against them. 1t is confidently believed, tn
he many of our own banks are in quite as solve
he a condition, as those of our nelghborlng stat
At of LOUISIANA and Alsbama which furnish Il
me greater part of our ccrrency, whist the not
hat of our own banks are banshed by discreC
lcv from circulation. In the one case the pow
to and influence Of the Governor aud legislatu
the were extended to preserve and to sustain thu
,ti. oirn Institutions; in the other they were exc
es- cised for their destruction.
ro- As there is ioiut standing committee up
ate the Union bank, your committee have cons
sal cred this subject as excepted in the reteren
TO them of that portion OfIhe Governors Me
=. SAGE which relates to the banks and currenc
Your committee under tins view of their du
IL deem it improper in them to make any Tepo
49, or recommendation in relation thereto. L
os Senate having subsequently referred the 81
-;or lect OF the MISSISSIPPI RaIl Road COnpaI
~ ~ to another select committee, have been d
~ charged from the further consideration there
,Go That portion of the Governors Message re
~. VI ting 10 the Planters Bank is so inseperal
connected with that of the Mississippi X
,,J Road Company, that your committee are
~ opinion that it has also been referred to
Nr same select committee, and consider the
~ selves discharged from its further consider
iii ton.
u Si On the remaining subjects Ofthe Banks
= general and Of the currency, your commit
nay Consider Legislative action cut ohby the ri
no of the Senate. Whatever might be the op
,elS ion of your committee they are precluded tr
,ieu the introduction of almost every measJ
ner; which they might think proper to recomme
anu by the decision of the chair on the poiht OF
ans der, which Includes the repeal OF any Act
sed before the adjournment and OF any me
us ure in substance the same which has be
me rejected.
re- Your committee therefore, ask to be discf
ton ged from the further consideration oil the S
losf iect referred to them. -,
Ipon JOHN KER, Chairman
rec
that From the Columbia Observer.