Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1843-02-25

nVt years uOHl tneN udlt.
Your committe, therefore, have arrived :
ut the conclusion, that the claim set up by (
the bank is illegal, and that the State is I'M
der no obligation to make such payment,
till the time fixed by law therefor has exp'-
red.
But while the committee entertain the o.
pinion that the Bank has no legal right to
demand immediate payment OF the afore
said sums advanced, to build the Capitol,
and for purposes of internal Improvement,
good faith and governmental punctuali,y,
require that the interest which the Bank has
advanced on the State debt, and the inter
est which may be due on bonds made by
the State, should be scrupuiouSly paid as
the same become due, and that is high du-
ty Of the Legislature to provide means to
defray such Indebtedness.
Since there is no legal obligation resting
on the State, to make immediate payment
Of the sums named, it is apparent that II
cannot be expedient to make such payment
now, unless i! would ptomote the interest
of the State. The law limited the rate OF
interest which the bonds should bear, at SIX
per cent. Money could not now be Dor
rowed at rate 50 low, and the consequence
would be, that a greater debt would have to
be created, to paw less. The inability Of
the people to endure increased taxatlon-a
treasury without means, and the strong
probability, that loan could not be negoti-
ated at a less rate than eight per cent. in
terest thereon, renders immediate payment
Of such debt highly inexpedent.
Although good faith demands the prompt
payment of all just debts, on the part of
this State, and the punctual reimbursement
of the Bank for interest due her on money
advanced, and the interest due and paid by
her on the State debt, yet itwould be great
ly impolitic, to borrow money at higher
rate, to pay a debt, which the State is not
legally bound to pay, bearing interest at
less rate. Nor does your committee deem
it good policy, to augment the State debt
without the highest necessity. To pay
back the money at the present time, would
be doing gross injustice to the people of the
State, and impose on them new debt re-
quirlng reimbursement in few years, thus
augmenting the taxes and burdens of the
people, at time Of great distress and en-
barrassment, to meet debts which their
representatives never agreed to pay under
twenty-five and fifty years from their date
The committee cannot pass from the con-
sderation of this branch of the resolution,
without expressing themselves against the
expedency of investing any additional
funds in the Bank of the State. The inves.
,igation through which the committee was
constrained to pass, brought under view the
whole conduct and management of this in
stitution, since its crealion.-Your commit
tee could not have failed TO notice many
things in the action and management of the
Bank, to which they deem it due alike to a
faithful discharge Of their duty and the peo-
pie of the State, to report for the conside-
ration of the House.
On the 18th Dec, 1910, the following, a.
mong other resolutions, passed the House of
Representatives Resolved, that the Bank
of the State of Missouri ought not to re-
ceive or pay out the paper of any bank
that fails or refuses to redeem its notes in
gold and silver"
This was an instruction from the Legisla-
ture to the Bank, and as more than three
fourths of the institution belongs to the peo-
pie, the resolutions of their representatives
ought to have been implicitly obeyed.
Other counsels however prevailed. and re-
lying on their supposed superior discretion
and financial skill, the bank directory re-
scinded their resolution, and Immediately
after, began to deal in the paper of sus-
pended banks. The consequence was
great loss to the bank, and of course to the
State. A large amount Of the paperis issues of
suspended banks was accumulated in the
Golfers Of the State Bank, and as the paper
deprecated, the security for its redemption
was weakened, and such paper now remains
to the inefficient action Of the Bank, and
the peril of loss to the people of the State.
BY reference to the report made by the
committee appointed to investigate the con-
dition of the bank. it appears that the fol-
lowing compose part of the notes on hand
of other banks the whole amounting to
Sl4l,950.
Notes OF the Bank Of Illinois, Sll3.5l5
- State Bank Of Illinois, 25 OBS
% u s. Bank of Pennsylvania, 1900
Sl39, 75O
The notes of the U. s. Bank of Penn.
sylvania to the amount Of 81 200 unless Sc.
cured to the Bank by means not developed
in the Bank Report, are worth little or no.
thing.
The notes Of the State Bank of Illinois
TO the amount of S25O35. are now in the