Mississippi Democrat. (Carrollton, Miss.) 1844-18??, 1845-10-29

enactment, TO confer such right. 1t is
true that it has been decided that legis-
lature may waive forfeiture of the char.
ter of corporation, in some cases in the
New York and Massachusetts reports, but
no where has it been decided that such
waiver can be made to take effect after a
judgment Of forfeiture has been obtained,
and the extinguishment of debts has taken
effect, thereby 10 affect the rights and
change the contracts of individual citizens
without their consent, by TN act subse-
quent 20 the granting of the charter and
the making of such contracts. If the le-
gislature can do this, il can pass law inn
pairing the obligation of contracts, though
prohibited by the constitutions of our own
State, and of the United States, and make
and alter contracts of individuals at plea
sure.
Not one out of ten of the banks of this
State could pay their liabilities if they
could collect all the debts due them by sol
vent persons-and from their past history,
we could have no confidence or hopes that
they would pay their liabilities if they
could. As to bank trustees or assignees,
all experience proves that when bank
goes into their hands, it is usually in too
desperate state ever to recover and meet
lis liabilities.
The high salaries of these trustees and
assignees usually allowed them, and the
bank attorneys together with the expenses
incident TO the trust or assignment, form
burthen which invariably crushes them.
Indeed, the trustee feature, in the amend
ment seems as though it was intended 10
furnish fat salaries for the old officers and
attorneys of the banks-for it is hard to
see how any rejecting man could have
expected any benefit TO result TO the Gre
ditors of the banks from the appointment
and agency of trustees under the amend
ment. No such power is given or duty
assigned them as to pay creditors of the
banks, even after they shall have collect
ed the debts. No provision is made on
this subj if power was given them
TO make distribution amongst creditors,
what an erroneous, dangerous and cor
rupting discretion would be given them!
What wide door for speculations and
fraud! The salaries would be standing
temptation TO procrastinate a final settle
ment of the trust; court of Chancery
would then have to be TesoTted to-and
from the grea: number of creditors, the
delay would be great and the expense i'm
mense. More than two-thirds of the cre-
ditors would soon find their claims swal-
lowed up by the expense of litigation, and
the result would be that all the assets not
consumed by the expenses of litigation,
would be bought up by the trustees. A
richer field for speculation can scarcely
be imagined. The amendment is very
defective. No person is designated to
whom the bond required of the trustees is
to be made payable.
j Imputations have been cast upon the
opinions of the advocates of the Briscoe
bll-and it is said that the debtors of a
bank are morally bound to pay if even
they be legally discharged and released
after Judgment of forfeiture against the
f bank. 1t is difficult to see what the le-
gislature has to do with individual opinion
as To their moral duties. Al we'll might
it interfere with the freedom of religious
opinion. These are matters for the con-
sideration of the individual citizen alone.
f 1t is said that these debtors got the notes
, of the banks when they were at par value,
and bought lands, negroes, &c. with them
/ Admit this TO be true: yet, perhaps, this
] very same banks stockholders, (for it is
5 known TO be the history of nine out Of
D len of all the banks in the State.) never
paid a cent of their stock in specie, or the
I notes of specie paying banks, as required
G by their charter, or at least paid no more
!, than was necessary to put the bank IN
f operation, and gave their individual pro
n missory notes for the almost entire amour
: of their stock, in fraudulent violation o
u their charters. This was fraud upon tht
' State, upon the borrowers, and upon tht
/, public generally. The borrowers canno
in any event be said to have received
1 something for nothing, for the notes eithe
a cost the bank nothing, or a. most, no
q more than few cents each, the cost 0
J. paper and engraving, and the promissor.
!, notes of debtors collected by every banl
" in the State have amounted TO ten time
n as much as would have paid the cost c
d outfit incurred by every bank Of The State
k The exorbitant prices given TO propert,
y by the inflated issues of their spuriou
a currency by the canks, caused the borrow
$ ers TO pay four or FIVE times as much a
n the intrinsic or proper value of the proper
e ty which they bought. Besides, the pee
4, pie of our Stale, as community and a
ir individuals, have paid dearly enough fc
Is The ruinous effects of fraudulent banks.-
G. The banks have entailed evils and iniurie
r upon our people that cannot be estimate
a. in damages. They have hankrupted ind
b. vidlals. swallowed I'D private fortunes