Mobile register and journal., 1841-12-29

frs.l l#s.t 8a1 % -. e.as-.aaaaea3a.a .. '.. a.slesss, ,ss . ,la- ture remains pretty much where it was, when Iast addressed you. A great deal of business of thls character has been dispensed with; but nothing yet of d general nature has received final action.
 The night sessions devoted to local Bills ex- ousyey and this way, nearly all the counties have been gone through with So members suc- ceed in carrying their private measures, their con- for the stale at large, to diminish, and they are then ready to go home. Judging from their restlessness and impatience. l am very much in cined to the opinion, that in few days the general assembly will be compelled adjourn for the want ol quorum It is exceedingly probemaiical whether any alteration will be made in our Banking system, whether any change will be introduced into the Chancery Court systemi or any general law of moment, adopted
 A Bill is now on its third reading in the Senate, which will probably pass that body the main features of which, are, to place the suspended debt into mssion forbid the circulation of the present emis- sion after August next and tereupon, to create emission payable on demand in specie, the amount not to exceed two to one, of specie in vaults.
 To man acquainted with the practical operations of Backs, the result of such measure must be at once apparent. If the present circulation is to be cancelled fast redeemed, and the operation of the Bank hereafter confined to the amount Of specie hand, how the liabilities of the state to be pro vided forl They may be provided for next year, fom the present circulation of the Bank but when
 the Bank only some 700, 900 dollars of cur rency being two is one, of specie in vault, is Il possible, under such restriction, the bonds o the state can be paid and the semi.annun ntere irg on the samel To your correspondent, il seems not Indeed what would be the effect of throwing ou. this new emission redeemable demand in specie? The effect most palpably, would be, to ex- hatst the specie to the extent of the sum ssued For
 instance, notes or bills discounted day inc amount of $50 O00; tomorrow, the holders of the bls call at the of the Bank, presents its pa per, and demand the specie for the same. This must certainly be the case, long as there exists de- mand for specie, ad this demand will mos, assured
 y be, so long the Banks of the South and South West in state of suspension; so long conf
 ence is weak and so long the balance of trade is against this caunlry and in favor of New York, and Liverpool Purchasing bills discountng notes, |, uner s.ch reguation, is a>ebiyalent to paying out inc specie for the same for It would be superiluous
 to tell sensible man, if any one held the paper of one of State 6anches, redeemable in specie, that he would instantly, misier existing clrcunsances require the specie for the amount. therefore sd9r if the Board compelled after August next 10 do business after this mode, they would the propriety of doing no business at all.
 have heard it said by of our Legislators, who are the advocates of .hs provision of the bill, that it would prevent t1e Banks from purchasing Exchange, considered cqu lent to specie. The only argument urged in supporf (s view IS, that il tlis Exclnnge Is purchased with und equal to specie, the Exchange thus purchased, is also specie fund. Let thIs argument be tested, by carrying out the pan. Suppose the Branch Bank at Mobile purchase Ex- change on New York and Liverpool, having 60 and 90 days to run amount, say $l00,000 with this new specie fund. Who does moi know, this money will come back almost as soon t escapes the fingers of inc teller, to be redeemed in spece. 50 and 90 days Exchange therefore would be purchased with specie. But it IS urged, the Bank immediately reimburse itself by checking against this Exchange. Take it for granted, this the case, and waive all the Inc, change, and what practical result is worked out by the operationl Why this the Bank exchanges dollar in Mobile, for Il dollar in New York and Liy- erpool. Far better would it be, to sip at what specie it may have, to the point where such funds wanted than to pay this specie for bills of Exchange, and incur all the risk and expenses incident to their payment and appropriation to the state debt.
 Assuming that am correct thus far in my deduc- tions, let Us pursue results little farther. From August next, the circulation, fast it is absorbed in tue payment of the debts of the Bank, is to be de- sroyed; and the new circulation put out is to be redeemed in specie; and the amount of this emission is to be two to one. It is then cear the bonds of lie State to be provided for, if provided for at all, with this new currency. What will be the max imum amount to which it can be increaseds Not over seven hundred thousand dolars-this sum being now little upwards of two dollars of specie on hand. think it has already been shewn that this emission will soon represent in the Bank, lhe specie on hand; or in other words, take its place. We'll all the spe- ce is out, and gone for the redemption of half of his circulation; what is to become of the other half how is that to be rcdcemedl The holders demand of the Teller, the specie for it. He calls upon the Cashier for spece the Cashier calls upon the Presi- dent. President, Cashier and Teller visit the vaults. Alas! empty vaults! All the specie the Bank had is taken oii-and she is still liable for as isuch more, and has not one dollar wlerewith to meet that abil- ity. The holders stoi m-swear deep and loud-yo- cegate about violated iaith, and damn the Bank the President and the Legislature The Directory exon crate themselves, by pleading the requsition of the lew. The menbers of the Legislature clear their skirts, by atirbutug all to the bad, corrupt and yll- lanous management of the Board-and here it goes
 But to return to the argument Specie IS given for Exchange in amount S53j0 O0O This Exclauge is~emitted to pay State bonds and interest. Ii tls Exchange IS met, as well and good; and it is pro- pery applied. Ii by possibility, it should not be met, what tie2 It is returned protested for non-payment. Parties come orwrd-eSpress their profound regret, sad dlsappoinlmegis, ruined fortunes, and blasted hopes A proposition is submitted to pay the Bills in ands tenements, hcreditamenls, and assets. The proposition sacceptcd, supposed to be the best par ties can do. Specie now gone, probably into the strong box of Wall street brokers-Bonds not paid faith of the State violsaed; and for all this the State has lands here, teneMents there, heredIanents round about, and assets etcry where. A beautiful operatlon! But there is stii S350,OO0 of this new stamp to go upon. Bear il mind, however, it is rredeemable, and sinks toIa level in value with the old enission. This $350b0O of currency, then, Is the only means Jeff, with wlic the Bank has pro- vide tue means for the payment of her liabilities and it is ieprecated below the Apece standard some F per cent Need Ieatluire hok the Branch Mobile, can meet her engagements abroad, pay her portion of the expenses of the State gokernnent at home, and her quota of monies for ,aeess 18th sections, with the paltry sum of sSS50 900 d deprecated currency But to view this subject in the most favorable lIgbt possible, we will suppose hsS$350, 900 of Exchange is paid and goes thus far tow4rds the extinguishment of the liabilities of the Bank and that Exchange to that amount is purchased with the residue, say $3J0, 900 irredeemabls papa; we then have the means l700, ,0O0) less tine ptcmum on half, say IS per cent-and on the other hAf less cost of trans portaion of specie, (or, tu buy specie fund in Ex change, with specie fund in Alabama, must cost the rates of transporting specie, with insurance upon tho sane) the Bank will then have little upwards of s650 900 whereupon to do buiness--to pay her fo- reign deb and to comply with the acquisitions of the law in relation to deiyng the expenses of the State. If with such fund, she stln up to all this, her ..ft