Mississippi Democrat. (Carrollton, Miss.) 1844-18??, 1845-07-30
4 VOL cARRoLLToN; WEDNESDAY JULY 3d. 1916


sirated thai capital cannot safely no nlrusI
ed 70 Incorporated banking companies.
The managers Of the bank demanded o
me the payment of two.and-a-half pc
} cent. IN adrance, on the five millions o
dollars OF stock reserved to tho State.
was unauthorized to make the payment
and promptly refused compliance. Theil
} object was 10 commence discounting il
, the spring Of 1898. was urged by nu
! merous persons to issue and deliver to the
managers the whole fifteen and half mil
lions in State bonds, in order that the,
might be sold for the relief Of the people
TWAS contended that the legislature would
sanction the measure, and was pressed
to call il together for that purpose. On
the 23d Of March, 1888, Chancellor Tur.
ner addressed me letter " recommending
that the State bonds for the Union Bank
be Immediately issued and sold in Match.
ez." He informed me that they would be
"taken here al par for our State paper,
and The pery best Of IT," He further as.
serted that "such fund in the hands Of
the Union Bank would give immediate re-
lief to thousands Of our suffering fellow
citizens, and save the State the waste OF
time so important at that moment. blouse
journal 1912, p. S57.) The Chancellor,
! believe, was at that period, q director of
the Natchez Railroad bank. The pery
best Natchez bank paper was then at a
discount Of fifteen per cent. The Match
ez Railroad Company, issued, in tho year
1888, 80, about one and half millions Of
dollars in puper money, which speedily
deprecated Two.thirds of il had been
paid in worthless Planters Bank stock,
and the residue cannot DO sold in market
at ten cents to the dollar.
A law passed in May, 1887, placed oil
banks thereafter TO be chartered subject to
examination by the bank commissioners.
The Union Bank was not then in exist
ence. In the fall of 1888, those gentle
men demanded admission 10 the Union
Bank, in order to perform the duties en-
joined upon them by law. The board Of
managers, in an insulting letter, refused
them access TO the bank. This precluded
me from then obtaining full information OF
The facts connected with the sale of the
bonds aud the movements oI the bank. A
few days before the legislature assembled
in January. 1880, obtained from The
Union Bank general statement of her
affairs, and copies Of the papers connect
ed with the sale OF the Stale bonds in |
1888. These documents we're received |
nj period too late to be Analysed fully |
and commented on in my message. NV
messages ! have always prepared and |
handed to the printer before the meet |
ing of the legislature, in order 10 be rea. |
dy for distribution. My annual message |
Of January, 1889, was written in Decem- |
Der, 1888. ! summed up the State debt
as claimed Of the State, and included the
sum Of $3s2,395 30, part of the surplus
revenue deposited by the United States
AT that period, but one million of dollars
had been paid on the Union bonds. The
following paragraph in the message proves
that ] took the earliest opportunity Of pro-
testing against the disposal Of the Union
Bank bonds. therein declared that
"'The bonds bear interest from the date
thereof, and the bank has already paid one
hundred thousand dollars interest thereon.
Inasmuch as the bonds we're sold on Gre.
dit, and interest accrued from their date.
il is certain they were sold for less than
heir par value. The bank has therefore
paid interest on five millions OF dollars for
The use Of one millionj and will have to
pas interest on more money than il has
received until the first day Of July next.
The commissioners for the sale Of the
bonds exceeded their instructions, but, no
doubt, obtained as much for them 10 could
have been had al the time Of the sale. Az
anxious desire to place the Bank into
speedy operation, was certainly commend.
lble, but, at the same time, no violation OIL
he charter should have been sanctioned
This, surely, was fair warning. Many
thousand copies Of that message were
printed by order Of The Legislature, and
widely distributed. Il also appeared 10
most Of the public journals Of The State.
Capitalists, bankers, and fundmongers are
generally enlightened men, and are very
.autious 10 take good counsel before they
embark in heavy operations. Nv oppc.
tents are in the habit Of publishing gar.
lied extracts from my messages, and en-.
Ieayoring 10 prove thai have sanction
d the Planters and Union Bank b5nds.
such Is not the fact In all my annual
Messages, have taken decided ground
Igainst The banking and funding systems.
The liabilities Of the Union Bank are not
much short Of Two millions Of dollars, ex.
;Iusive Of her capital stock Most Of this
mount has been put on interest at die
ate Of ffieen per cent. per anaum, ID ac
.ordance win the 2lst section Of her char
er. This enormous interest, roiied with
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