Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1841-01-30

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stock, in the name Of the State, as far as it would
go. BY the fifth section the Governor is required
to execute and deliver to the bank, the bonds
OF the State lin sums not less than $1,000
each) to an amount equal to the stock subscribed
for the State, deducting here(rom the amount OF
Seminary and Saline Funds. These bonds are
required to be delivered to the bank 'in full
payment Of the stock subscribed for in behalf Of
the State" The first half million Of the bonds
to bear SIX per cent, payable semi-annually, in
the city oil New York, not to bear interest at all,
TILL loan shall be negotiated on them and the
principal payable to the Bank Of the State Of
Missouri" twenty five years after the negotiation.
The eleventh section provides that whenever the
second branch Of the bank shall be established
(Which was done, two years ago, at Palmyra)
the Governor shall subscribe five thousand add.
ional shares-equal to half million dollars
and execute and deliver to the bank the bonds OF
the State, for the amount thereof similar to the
first bonds.
Whatever may be thought OF the wisdom and
justice Of the charter, in giving to the State such
unequal advantages over private stockholders,
common man who reads these sections, would
think it plain beyond doubt, that when the
Seminary and Saline Funds were paid over, and
the State bonds delivered, the bonds would belong
10 the bank, and the State stock in the bank
Twenty thousand shares, or two million dollars)
was fully paid for But this would be a great
error in fact; for the bank statement, in answer
to the questions Of the examining committee,
says, that on the Goth October, 1910, the aggre-
gate amount OF the capital stock of the bank
owned by the State is only 1891, 2e2,9l Ard
this amount is not made up entirely OF the Sa
line and Seminary Funds, and the State bonds,
as provided in the above cited sections Of the
charter; but the surplus revenue Of the United
States deposited with this State (amountng to
S435 ,0OO) forms part Of that stock. That
surplus revenue was directed to be so applied,
by the Common School law, of 1882 So that,
although the charter expressly provides, that the
State bonds being delivered to the bank are full
payment lor the State stock, the bank officers,
more wise and Just than the legislature, will have
their own way. Instead Of twenty thousand
shares, they allow the State only nine thousand
three hundred and forty.two shares. But let that
pass for the present. my first object is to show
the injurious and inconsistent course Of the
Legislature, in regard to the bank.
The sixth section Of the charter provides that
the President and Directors on the part Of the
State shall appoint an agent to sell 100000
Of the State bonds, in any part Of the United
bonds remain unsold, at the time the bank CON-
mences business, the said agent shall be under
the control OF the bank, and may be continued
as agent "or the bank may, in any other manner
or by any other means, best suited to the interest
of The bank, bring into market and sell the State
bonds then unsoM." This provision gives the
range of America and Europe TO sell in, and
leaves the manner and means Of sale, entirely
at the option Of the bank.
This bank went into operation in the summer
Of 1887, just after the general suspension of the
banks, throughout the Union. 1t burst not issue
its own notes. 1t therefore hogan business upon
borrowed capital, consisting of the notes OF
the suspended bank of Illinois The State bonds
could not be sold in America. They were hawk
ed abou: in vain seeking purchaser Public
confidence and credit were destroyed, and the
bank and the Legislature came to the conclusion
that the bonds, in their first form that is, in
American money-each bond for $1,000, and
payable in America, could not be sold either
here or in Europe. Consequently, by an act Of
| Feb. s, 1889, the charter was amended so as to
require the Governor to withdraw from the bank
all the unsold bonds "a small amount being sold)
and supply their place by new bonds for the
same amounts, but varying materially from the
old ones in several important points. In the
first place, they were all to bear six per cent.
interest: Secondly, both principal and the semi
annual interest were made payable in London or
elsewhere: Third, the new bonds were not to be
in American cunency--dolIars and cents-but
Sin sterling currency is, English money
pounds, shllings and pence-or "trancS -
French money-or "GuilderS" Dutch money
as said bank should deem advisable These
changes were avowedly made for the purpose OF
raising the value Of the bonds, in the markets OF
Europe, and enabling the bank to sell the credit
of the State for European gold and silver; and
the requirement to make the bonds payable in
the money of account of any one Of three greatest
commercial States OF Europe-sterling currency,
frances or guilders--proves beyond the shadow
of doubt, that the Legislature expected and
intended that the bonds would be sold in Eng.
land, France or Holland. Accordingly the
President Of the bank, Mr.. John Smith, went to
Europe to try to sell the bonds: He offered
them both in London and Paris, but with nc
better success than he had found in Philadelphia
and New York. He could not sell a bond: So
he left them in the hands Of F. HUH & Co., Of
London, to be sold whenever and wherever q
purchaser could be lound and come home, nc
wiser than he went, but richer, by $4,000, thai
being the amount allowed him. besides his ex
penses by our wealthy and liberal bank, for hi:
pleasant trip to London and Paris, and his failure
t TO sell the bonds.
: F. HUH & Co, the agents Of the bank, wrot,
to Mr. President Smith, that they could not sci
? the bonds: That the market was gIutted wit!
American stocks, and there was no chance o
selling at par, unless the present administration
! should be defeated, at the election of 1910, AM