The Yazoo Whig and political register. (Yazoo City, Miss.) 1840-1842, 1841-09-24

the Bank Commissioners had just published
a leng report offs condition, showing it to be
entirely solvent; all seemed prosperous
win prospect Of return 10 specie pay
ments at an early day. The Union Bank
Charter had been sanctioned by two Legisla
lures; the Governor had signed.five millions
Of the State Bonds to raise the capital to
bank on these bonds were in the hands of
Commissioners who were now august IS,
1881 in Philadelphia to effect the loan.
All eyes were turned in that direction;
the knowing ones secuted the idea of sale
of the State Bonds, and the less knowing,
who judged from the prices of other Stock
INDUCED no hope of a sale. Yet the Conn
missioners were instructed to put the bonds
upon the market, and to the establishment CT
themselves and every one else, made sale
of five millions Of per cent. Mississippi
bonds at porn. Biddle (for the U. S. Bank)
the purchaser, The steam packet was Just
in with the London prices of State Stocks as
follows
"London, Aug. l, 1885,"
"There have been dealings in some OF the
United States securities to-day:
U. States Bank Bonds 25B
Alabama per ct. Sterling bonds 90 90
Ditto pr CT currency (dollars) 83 81
Louisiana per ct. (Barings) 83 "a
New York per cent 924 a95
Mississinni sir oer cent 90"
When the sale of the Mississippi bonds
transpired every one was surprised, for it
was clear that they were sold above the mar
ket value some 8 or 10 per cent.
What was the cause of this high price ?
Why did the Bank of the United States pay
500 for Mississippi per cent. bonds, when
she could have bought the per cent bonds
in London at sos!
The answer is found in the letters Of Mr..
Biddle about this date.
That gentleman it is true fatally over-esti-
mated the power Of his Bank. He wished
the Bank to get all the credit for the coming
resumption, and having full and entire con-
fdence in his own strength, and in the abili-
ty of the Southern banks to sustain them
selves, he went on making advances until
he fonnd his bank on the verge of ruin, with
no returns coming in from the South.
In his letter to a committee of the New Or
leans Bank Presidents, Mr., BiddIe only few
weeks after the purchase of the Mississippi
Bonds, writes thus: (Sept. 9th, 1882 "The
object of this Bank for year past has been
TO defer the resumption of specie payment
until it could be safe and general throughout
the Union. = The period fixed by
your convention seems adapted for that pur-
pose; which this Bank has endeavored to
facilitate by two measures,-.frst, by large
loans in those States sChere the difficulty Of re-
sumption tOas greatest, &C."
Besides the five millions of State Bonds pur-
chased, the debt due the United States Bank
from the Mississippi Banks was not dollar short
Of six millions.
| Mr. Biddle confidently asserted, and no doubt
believed, that this further advance of five mil
lions, would enable all the principal banks IN the
State to commence specie payment; and thereby
he would receive returns in the way of payment
from those banks, and gain more in the end than
he would loose on the purchase of the State
Bonds.
How signally these calculations failed, every
body has seen. Yet such is the only explanation
that can be given for the purchase of the Misss-
sppi bonds at the high price paid for them by the
United States Bank,-a price as have shown,
far above their value in any market.
Who would, three years ago, have believed the
turn which things have since taken?
Look at every newspaper in Mississippi, Bank
and anti-Bank, and the the predictions given out.
Look at the report of the Commissioners Of the
State (acting under Oath) that examined the
Brandon Bank,-which after laborious investi-
CATION concludes thus:-
"Ihe foregoing facts fully establish the soirency Of
the Bank. THIS Il acas important for the public 10
k1lOV to preUent sacrifices being made.
Fhe Commissioners comply with
the request ofthe Bank in giving publicity their
report,
All of which is respectfully submitted,
+. F. CALHOUN,
JAMES HAGAN.
Bank Commissioners of the State of Mississippi.
Columbus, Aug 22d, 1882
And what nor has become Of the "solvency'' Of
the Brandon Bank?
Yet no man doubts the commissioners were de-
ceived; that they thought whatIhey wrote would
prove true. So of Mr.. Biddle. The stock Cat
that date) of the United States Bank was worth
Sl23 for 500 shares; now it will sell for but
o. The Planters Bank of Mississippi Stock
was worth 95, now it could perhaps bring 10; the
Vicksburg R. Road (owned almost entirely by the
United States Bank) was worth then $50, now it
is quoted at 81! and SO has declined the stock
Of nearly all the Banks in the South
From the foregoing remarks and quotations it