Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1842-07-26
IAlabama Bauhs.-We lin N.

agement OF the Alabama Banks and
branches, from the Huntsville Dem
ocrat. We have not room for the arti-
Gle entire.--
It's now apparent to every man who
has examined into the condition of our
banks, that unless they are speedily
placed under the control of the most
competent and honest business men
they can survive bat very short pc
Rod. Even with these props, it may
be impossible to save the wreck
But this is the last hope-and as we
have heretofore stated we can devise
no mode so wen calculated to obtain
their services, as by requireing the
Governor to nominate them, mot ap-
point as some will have i0 TO the
Legislature, for approval. We surely
have practiced long enough on the
LQg-rotLing system. pursued in the
Legislature, to satisfy all of the fui-
nous consequences of that mode. By
nominating, the Governor would act
as check against abuses by the Leg
islature-whilst THAI body would reject
any improper nominations, were he
disposed TO make such. The fear of
one-man porcer so freely discussed
and deprecated by some, is mere phan
tom, conjured up by demagogues to de-
ceive the people and catch votes. They
do not tell the people, what is the fact
that these mutual checks on the Gov
ernor and the Legislature would act as
bar to the introduction of unfit and
incompetent, and dishonest men as
Directors; that it shuts the dooragainst
the secrets and open enemies of the
b nks, and agaist all who would para
lyse the ir energies and overwhelm the
State with disgrace.
1t has already Been prophecied that
the Banks Of Alabama will never pay
another interest instalment on the
State Banks. This is the opinion of
the writer of the money articles in the
New York Herald whose statements
stand foremost as regards the monetary
institutions throughout the Union. In
his article of July /, 1912, he says.
"The currency Of the south is rap
idly growing worse at the suspended
points, partic ular at Mobile, where
specie has been at premium of 40
per cent. and was at 80 per cent. on
the 22d ult.. having advanced 8 per
cent. in short time. This is the re-
suit of the operations Of the banks OF
that section to meet the interest due
to-day, which was done through the
purchase Of cotton for irredeemable
paper. -. ........,.,
The same result took place on the pay
ment Of the dividends last winter, and tht
depreciation was never recovered. Al
explosion may shortly be expected in tina
quarter. An arrangement was recently
entered into at a convention of Bank dele
gates at Mobile by which the banks were
to receive their own notes hereafter at
less discount in payment of eastern ex
change. The State Bank atTuscaloosa,
and the branch at Decatur, however, posi-
lively refused 10 sanction this, arrangement
on the contrary, they refused 10 receive
their own bills in payment of exchange
except at an increased discount. Tn
other Banks of course fell into the sam
measure. This state of things canno
continue. 1t is evident that although th
banks of Alabama have strained poir
to meet the interest now due on the Stat
bonds constituting their capitals, 1t is high
iy improbable that another ever will b
paid The following are the fai led state
as they now stsnd:-
Pennsylvania, Arkansas;
Illinois, Indiana,
Mississippi, Michigan.
And then Alabama is to be classed ur
der Mlchigan,as the seventh failing Safe
Should the Herald's fears prove correC
our state will soon be in most wretche
condition. Unable to pay the annual il
terest on her bonds, can it be expecte
that she viii ever pay the principal IroV
= the assets of her Banks! We answer Il
D and hence Reputation, or resort TO d
rect and oppressive taxation, would be III
inevitable consequence The intere'
once refused, the bonds would of cours
t dt preciate TO a ruinous extent in the put
lie market; and perhaps would not con
i mand over ten or fifteen dollars in II
: hundred. Such state ofthings, howe
: er hlmiIiating to the pride of our hone
y citizens. would be cause of exultatfCn wi
y the large bank debtors, who now SO an:
d lously look forward to IFS consummatiol
: Here lies the great secret why bark deb
> ors are so violently opposed to the nom
: mating power. They dread the loss
IS the power now exercised, which enab
e them to ill the Boards of Directors Wi
r mere tools, to subserve their private int
est--and if need be, to compromise or con
pound their large debts for trife in Sta
Bonds.
!, New AND DESTRUCTIVE ROOKIE rs
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