Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-11-30
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The MISSISSIPPI BnSp QuEsrIuS.-The result OF
the recent election in Mississippi having naturally
caused considerable excitement and uaensiness, under
the impression that IT was a solemn determination on
The part Of the State not 10 redeem It's liabilities, we
briefly int,nI ,ted Yesterday that there was c prahahili-
tv that The question was not fully understood, and re-
quired information from the Mississippi papers, or from
any other source competent 10 give il. The following
communication from one we'll advised upon tho sub.
iect, tends to SHOW that we were correct IN our belief
tina, wrong has to some extent been done TO Mississippi
in this malier-that she does not coolly refuse 10 piy
her debts, bit that her decision through the ba!lo,-bux,
is upon n point Of great nicely, IN which the "Anti-
Bond PAYERS" believe the State has been deirauded =
1t is t. b. desired tha: cur correspondent had gone fur.
Their in his explanation. For instance, what was The
original purpose Of the loan was it 10 sustain a BANK
or 10 promote Stale improvements Is Mississippi dis.
posed 10 pay what was received for the five million
bonds, &c.;-a complete history of the whole transac-
ton would be very acce ptabie 10 the public, as a mere
" parlia! knowledge of il, is calculated IL !ha present
lime 10 be productive of miscellaneous c..cts. At
this moment, under our present imperfect information,
wc fad that while Mississippi is generally 'Atd upon
rs swlndler Of the worst class, there are some wio re-
gard her supposed example as Il precedent which viii
lead 10 d general refusal Gu the part THE debtor States
10 recognize the binding force of their obligations. FOR
ourselves, we are not disposed 10 believe either The
one or the other:
Mr.. Editor-The sbond" question in this State IS
L evidently misunderstood. j ne iUlIUbU party LOn-
teGd that cas of the loans of the State amounting to
FIVE millions Of dollars was sold in violation OF The law;
that the commissioners were authorized 10 sell Il At par,
payable in specie or its equiraient, ehercas they sold II
for depreeia,ed curreney. IT these bonds were IN the
hands of the party TO whom they were sold lin the U.
S. Bank there would be but little doubt, | nPprehend,
that the payment would be resisted-but while IN The
hands Of innocent holders il becomes p grave question
for the courts 10 decide. The State may have lost ITS
ability TO resist the payment by the lapse ol timc-butl
Il l-l-. q. J..,, IN oil hands that n Was but tins
one loan which entered into The late canvass, and That
mn disposition was manifested 10 question the Liability
Of me State to pay al as Other de1s.
TgE TeorpLFs OF TnE BAsEs.-A general dstrust
of bank stocks seeins 10 prevail al this time, especially
IN Philadelphia. II is altogether probable that the
stocks nf a number Of cur banks are selling IN the mar
kpt at much below their real value. Itis nevertheless
unones,lonably true, that some Of them have sustained
losses, and the miserable failure OF The u. ;. Bank, ma
turally causes 4 disposition 10 axaggeraie the estimate
of the mis!ortnnes Of other banks. Nothing bnt the
lapse Of time will serve 10 give 10 each Inc circuit an
value which is really It's due. ,
In the mean time II 10 well to examine the sources OF
the troubles that have belallen these institutions, and
10 guard, as far as practicable, against thelr future oc-
currence. The sources Of less rave been Principally
two: /. Excessive Loans 10 the officers OF The 'nsitu-
tons. 9. The making of settle meIts with those OH
GERS by which the stocas in which they had specula'ed
were taken in payment at prices Tar above what they
would realize in the market.
The proper remedy seems to be, BY act 81 The Legs
lature, prohibiting and making invalid any settlement
will, a bank oliser by which anything but money IS
taken in payment, unless such sei,Iemsn be first APP
proved BY a meeting Of the Stockholders or: at least. by
a unanimous vote of the directors. An effective cure,
however, should 20 still farther, and ei,her pfoh,o't a.
together any loans 10 directors and officers OF banks
by the bank in which they are directors or officers or
lmi, them to very small amounts. Those "h" nave
charge Of a trust fund, cannot be the proper Judges be-
tween different applicants to borrow il, where they arc
themselves among the applicants, To allow them to
decide in such case, is to make them judges IN thei'
own cause, which has always been justly deemed con-
,rary t, The rules OF prudence and %proprety.
The majority Of stockholders in banks are Of that
class of people, such as widows, orphans sinsle wo,
men, &c, who greatly need the watchful care Of the
legislature over their interests. Yet IN practice they
have been most grossly neglected. Bank charters
have been obtained by those who wished TO become
either borrowers or officers, and in the framing Of the
laws, their interests or wishes have been more sedu-
lousy provided for than those Of the stockholders.
[Pennsyiraaian.
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