Lexington union. (Lexington, Miss.) 1838-18??, 1841-01-30
LEXINGTON, MISSISSIPPI, JANUARY SO, 1871.


Of policy necessary to be pursued, TO
relieve its citizens from any and all evils
which they labor under, either from bad
government or from causes having 10 their
origin, Il mistaken view Of majority, and
legislation consequent thereapon.
Your committee submit, that from all
the information laid before them, that il is
proper that those banks in which the State
is mos! deeply interested, viz; the Plant,
ers' Bank, Mississippi Rail Road Com.
pany, and the Mississippi Union Bank,
should be placed in a state Of liquidation,
50 as to realize from their assets the great
est possible amount for the payrpent fthe
liabilities already incurred for them.
Two.fflhs of the capital stock Of tho
Planters Bank, amounting to two million
Of dollars, are owned by the State. This
bank is not now in siuaton to meet heF
current Liabilities. This stock by the act
of 1889, known as the transfer act has been
transferred to the Mississippi Rail Road
Company, upon condition, that said Rail
Road Company pay tho interest upon the
bonds created by the State in 1881, and
'33, in order to effect the subscription to
said capital stock. The condition OF the
Rail Road Company by thei. own shelving
(orbds the conclusion, that any effort oil
payment on their part, Of The accrnng
interest, and instalmenis Of The principles
as they respectively fall due, will be at
tempted.
Your committee are Of opinion that
sequestraton OF all the assets Of the said
Rail Road Company should be forthwith
made by the State, through her proper
authorities, to the end that tho State may
be saved from the ruinous transfer being
made by said Company Of the available
means for the liquidation Of her bonds be-
coming due, for the loan creuted in 1887,
and ia 1888. 1.-THE Rail Road Company
is permitted further to sacrifice the Plan
iers' Bank stock, tranfered 10 them for
the redemption Of their issues Of bank pa
per, in vain, may the State hereafter look
for the profits Of an expensive Rail Road
10 reimburse her for loss sustained. The
amount Of stock owned 10 The Planters
Baak by the State, renders il imperiously
necessary that you should provide for the
safety and ultimate reimbursement for the
amount by the State subscribed for said
stock. 10 this end your committee
would recommend that said bank be
placed in the hands Of the Presidcn, and
Cashier of the mother bank as commits
sioners, giving them power TO renew all
notes as the board of directors would have
had, requiring the withdrawal Of her
branches, and the curtailment of their
expenditures. The past legislation has
thrown such discredit upon the existing
banking institutions, as to render, in their
opinion, the idea of bolseFing them up,
ntldicious and improper. The question
of gravest Importance, in our opinion, re-
quiring legislative action, is, the future
management Of the Mississippi u. Bank.
Various propositions have been entertained
and engaged our attention; none Of which
seems more acceptable, than, that il be
placed in liquidation for the benefit of the
State. Your committee submit That in
their opinion, the bank as now constituted
and organised, ia, with its assets, properly
The property Of he State. The amount Of
stock owned by the State is five millions
Of dollars equal to one.thlrd Of the capital
stock of said institution, which has been
paid for; while the bonds intended for the
benefit Of the individual stockhUder,remai
a portion unsigned and retained by the
Executive Of the State, and the balance
forbidden by him to be negotiated. Under
this statement Of facts, your committee
submit, that the State having commenced
banking in copartucrship with individuals,
AMI forbidden the negotiation Of the indi-
viduals' capital, and having thereby pre-,
vented any participation in any profits
which might have arisen, virtually dissolv.
ed the association, (f any ever existeo)
aud cannot now endeavor 10 make the
innocent participants in loss which they
never joined in creating.
Your committee do not doubt the pro-
priety Of retaining the mortgages IN all
cases when the mortgages are indebted TO
the institution, and at the same lime of
releasing The obligation Of such mortga.
ges where they are not indebted. Prin.
cples Of sound morality and public policy
demand it. letters thrown around the
lransmutation Of the possession Of propers
~, are disadvnntageous TO the citizen, and
do not confer benfit upon the State. AZ
ready are the officers Of tho courts disrei
garding validity Of the liens created, and
the titles are becoming daily clondcd by
repeated sales, all which are evils which
the wisdom the Legislature prevent and
avert. Immense litigation must ensue if
a contrary opinion should be entertained,
and additional burthens thown upon the
people. II is contended that this is con-
test between twelve or thirteen hundred
III rsl..