Baton-Rouge gazette. [volume] (Baton-Rouge, La.) 1819-1856, 1841-01-09

place OIL banks IN q position 10 resume tho feSu.
lar course of the operation. 1t IL not TO be ex-
pecteJ, however. that they eau at once recover
fiom the depressed coalition 10 which the com.
metcial eonsuision we have experienced has left
then. A resumption ii nultaneous with the
Philadelphia baiks could not take place without
DANCE, b Nth to our monetary institutions and our
community in general, us it would hnppen at the
season when the whole business Of the valley Of
the Mississippi eongcntrat in New Orleans
This would seen far from being The most fpvota-
bs period. If we observe that the banks Of the
neishhoring states seem but little disposed To a
similar course, aud that oil our moni"d instttu-
tons have not the necessary strength to sustain
tho shock that such u change Of position would
be likely 10 cause. Tho losses which they have
met wiIa afec, only their stockholders; they are
without an exception all able to redeem tbs paper
they have emitted. yet il is well known that
The notes Of -onc derive the CREDIT upon which
they circulate only ftom their being received by
The other bou1a. This obligation IN SoAao to re-
dcstu their notes, which actua.ly exists, although
not created hy law, would weukcn the stronger
Ia case Of resump ion, by abstracling a portion Of
their means for the support Of the weaker institu.
tons, which having no active capital can neither
afford a substantial revenue 10 their Stockholders.
nor be ever fes,0ied to what may DO called sound
banking situation.
II seems l., he q parl of the duty Of The 'cgisla-
lure to sustain aud secure the value OF tho paper
circulation issued under the authority pf It's laws,
and for that purpose it should protect those banks
which have maintained thelnssives 10 n position
10 fesuno their regular oprratinDs. | stitl Laiuh,
IS was my opinion, last year. ,ha! the most effect
sal aid you can afford to soeh Of rar restrictions
as have by their prudent administr alion hitherto
sustained the credi. of our circulation, is 10 pso.
vile for the liquidation Of tho-e which arc de.
| prisoa Of active capital. This end eau DO obtained
y Without alarm OF danger, by relieving our banks
from tho forfeiture which ihcy 'nay have Incurred
upoa their suspension, prosided they resume a.
the period you may fix aa dom sndeI by the pub
lie interest: that during their suspension they con-
ine their emissions within lhs limits you may
establish as proper for a e0und circulation, end
thatthey bind tts,nsslves, under severe penalties,
by amendments introduced into ihsir charters, 10
control one another, after the resumption, by rec
curing all balances to he punctually paid in
specie. fhog0 banks who will 40, conform 10
these diaposiiioas, or may aeaile 10 throw up ,heir
charters, ought to commence at once their Iiquida.
ton. They will find their advantage in doing il.
If you reIsase them from those improvements slip
uEated in their charters. which il is evident they
cannot execute, and II yoa allow them to charge
a higher rate of interest than they now demand.
upon Condition that snch Of their debtors us eau
furnish unqlcstionabic security, shall be induiged
in a longer term for payment.
The probability of lhs establishment Of q pa.
tiona| bank is another reason why we should offer
svaiy facility 10 the weaker Of DOR institutions 10
winding up, without waiting for the mnmsn.
when il will 10 forced upon lhem. A national
hank eanno, furnish the means OF paying specie
and dltc0unting TO those whose capital has not
been actually paid in. or who have lost The grca,
or part Of that eapital,or invested j. in real estate,
or public improvements. Such Institutions owe
their existence only to the arrangement which
has 80 long existed ia our currency they snast
expire 81 soon as a regulator of that currency ap-
poars. In the mean time they encounter and
psfa'yse the action Of tho strong banks. and d.
'n'nish, if they do mol destroy. the efficacy Of the
latter to relieve the community.
lconsijer il! ay duty to ask your most setious
attention To the situation Of the treasury. The
rapid lncreass caused by the last Legislature, OF the
debts due by the state to tho banks, requires of
you not only tIs stfIciest economy of the public
ndaey, bat will perhaps compel you 10 an increase
OF taxation, to meet the engagements contacted
during the two last sessions. At the beginning OF
the last year 1889 we owed to the banks SIS, 900
that debt now amounts to $3.50, GEO.
However small The influence I can pretend to
exercise over your dcliberetions, I ON convinced
That when The appropriation of The public money
is in question, / will have the good fortune 10 con.
cur oltenor with you in opinion than I lid with
your predecessors. 1t was in vain tha. / usged
on them. thai to incur q debt or issue bonds, with
out providing at the same time certain means for
their payment, is 10 vote Q tax from which, in
she end,the people cannot escape. experienced
the greet regret of seeing that my representations
were of no avail. thought myself bound to es-
sfclae one ofihe powers condded to me by the
and | returned 10 the legislature with
NY objections, such bills involving The credit or
money OF the stale as seemed to me most evidently
adverse TO the public interest. The amount Of
he debt which | have just Ibid before you, shows
hat ! still did not psevcn, from becoming laws,
very bill which contained appropriations of the
public funds. | find myself happy, however, 10
icing able TO say that my efforts to support the
redit of the state having no, all been fruitless,
md that Louisiana can bcas. Of being able TO
meet all her engagements.
You will perceive by the report which will be
to you by the Treasurer. that the prob
bic receipts Of The current year will be $40, 600
nd that our expenses may he estimated at $685.
9l-the deficiency. sl5s.s9l. can only be met
; new loans from the banks ; but I believe that 6
on vii! think with me, that the State must I
bandon this resource, already so much abused c
I'D which will besides soon be exhausted. The G
mount which we can still borrow from these g
'siitutions, is now but Si75 900, and, by the
increase of our debt, will be entirely alb n
IN less than three years,
It is evident that the revenue to be collected I
lou'd be more in proportion to the demands on Y
3 Treasury should you find it necessary to u
ipose a tax for the gradual reduction Of the debt q
might be rendered less bur;hensome 10 the u
lzsns, by ap2ortioning anew the amount to -
levied GA reaf estate in the different parishes. 81
nc sum to be paid by each is now The same as q
in i8l3,and music of course, be disproporton- /"
as regards their present situation aud means. IN
al estate in some parishes is taxed al the rate %
thfeeslollars per thousand, whilst in others the I
'essraent Is bat Ten cents OH every thousand ..
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