Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1841-01-16

dsbt, due the bluk wall be collected and that the
whole capital stock has already been lost. The
bank has seven thousand bales of c",,eJ 10 In
eIpooI uusod ca which has draw : %, I 10
81. An advance OF sixty dollars per bale was
made 10 the planters upon that cotton IN 1885,
They wdl susan q clear loss, Including n.efesl,
OF thnty dollars per bale; equal IN the aggregate
ia S2ul,t0a. The bank has been irtelIievaby
ruined by making advances upon cotton, ISSUING
post notes, aud luaumg the principal portion OF
her capital 10 iHsolvent individuals aud compa-
mes. The SITUATION OF The Mississippi Raj Road
Company, and the Planters Bank, is equally
bad The former, ~ The year 1889, issued a
bout million aud hall of dollars ~ post notes
dnd expended them in constructing The rail road
aud buid,nssexpeuslve dtpols. certainly would
not have approved the uansler act, had lanucip-
m,yJ THIS unptoNldeut course. The company has
failed 20 pay The interest on the Planters Bank
bonds. The Bank OF the tuJed States has adj
rauccd the same, aud has presented on account
against The State lut one hundred aud twCuly .lour
thousand two hundred aud twenty-five dollars and
tweuty-tw cents, and demanded paymcnl thereof
IN Sgec;C. The first lnstalment OF the Planters
Bank bonds, amounting 10 th) sum OF Sl25,J0U.
"Ill be due next July. No provision has been
made ior It's payment One Of the Circuit Jud
yes has dee ded that reco,eres cannot be had on
ne notes belonging to the Sinking Fund The
iund Is specially appropriated to the payment Of
The two hfst lnsalmeuts of the Planters Bank
bonds. The Mississippi Uulon Bank, hereafter,
wall be totally unable 10 pay tue interest on the
tive rnIhons Of State. ponds issued IN the 1885
"a my last AnIltl Message; | inform d YOU that
had declined executing the last tive aud q half
millions ul State bonds, called lor 10y the Mlssls-
'Ppl Umun Bank. Having well founded ap.
Prehcnson that an attempt would be made lille.
gally TO dispose at the i've millions Of State
bonds, ISSUED IN the year 1899, aud delivered TO
the managers Of the bank, ISSUED my procla.
NATION CA the second day oil March last, ''warn
ng all persons and CO poralons moi to advance
money or securities or credit on the hypoheca.
ton Of sand bonds, or 10 receive the same in ex.
change Tor the circulation or other liabilities ol
the Mississippi Union Bank, 81 to purchase
the same on credit, OF tor less sum than their
par value IN specie OF any other terms not express.
" authorized BY the charter Of SAID bank" A
copy Of that proclamation IS herewith transmit.
desired effect, aud has prevented an Invalid sale
those bonds. lnlsmucn as there Is no pros.
pect that the State bonds, aud The semi annual
10 crest uccmlng thereon, can be puld by the
banks bound therefor Il becomes us to CONSIDER
the attitude IN which this state Of things places the
State | am not advised upon what term, the
two mlAuns Of State bonds, delivered TO the
| Planters Bank IN the gears 1881 aud 1893, were
! sold those bonds we're all endorsed by the
bank, and the act raoserug the State stock IN
the Planters Bank TO the Mississippi, Kal Road
Company, and obhaaung the latter company TO
pay the interest on h,se bonds, and seventeen
hundred and fifty thousand dollars of the ptncl.
pal, does not and could moi release the Pianlet-
bank from her Obligations to pay both principal
aud interest in the event OF the failure Of The
Mississippi Rad Rold Company 10 pay the Same
| puucuaIIy. The bond holders have never as
scented 10 10 transfer act.
The following measures in relation to the Ms.
ssslppl Union Bank N,Il 10 doubt be propos j.
lsl. Releasing he individual stockholders,
and making 1t a State Institution, binding the
STATE for all the issues and liabilities OF the Bank,
aud authorizing The hypohecatlon OF more State
|
| value.
3D. Releasing the private stockholders, plac.
NJ the Bank IN llqudtuon,and imposing direct
tax sutiIcIen, to pay the principal and interest oI
the Bonds, puncu,iiy, It indulgence cannot be oh.
| famed.
3rd. Placing he Bank IN liquidation for the
benefit Of all concerned, aud rcpudlaupg the sale
Of five Millions Of the Bonds IN the year 1898,
on account Of fraud aud Illegahty. The ninth
section Of The seventh atltce ol the Constitution
provides that - No t,w -baI ever be passed to
raise q loan money upon he credit oIlhe State,
OF to pledge the dih oil the State for The pay
ment or redemption o any loan % debl, unless
such loan he proposed N tbe Senate OF House oI
Representatives, aud be agreed to by majority
OF the members OF each House, 8hd entered
on der Journals, with the yeas and nays taken
thereon, aud be referred to the next succeeding
Legislature, aud be published Tor three month.
previous 10 the next regular election, IN three
newspapers Of this State! and unless majority
Of each branch OF the Legislature 50 elected, al
ter such publications. shall agree to, aud To pass
such law; and IN such case The yeas and nays
Shall be taken, and entered on the Journals Of
CWtN Ilbu-tt ~ - 'tiJ 'lthlt 'uhN "" lNi'"
mental change can consDltutonaIly be made N
the charter Of thu Bank without the action ol
succeeding Legislature, aud tho existing
charter does not authorize the hypohecahon
OF any Stale Bonds, or sale at less Then Their
par yaue, III cash. Bank charters are special
grants Of privileges, aud beng, in drrosailon OF
private rlg1ts. must be construed sncIy-greaI
lnig;y must result llom farther sale OF State
Bonds.
The power Of the Legislature to release the
private stockholders from Their Obligations IS at
least, questionable; and It's policy clearly wrong
! They have generelly been favored IN the d'sth-
button Of loans-and have controlled the lnsiI'
luton during the last year. The Directors cleo
ted by them have dtued the fgb Of TIC State to
requIte the Bank to resume specie payments or 10
. 90 In;o hquidauoa,and have, Trough 'her Pfesd'
) ent,lhdrecdy charged the members VINO voted I''