Mississippi Democrat. (Carrollton, Miss.) 1844-18??, 1845-11-03


all experience proves that when a bank
goes into their hands, it is usually in too
desperate state ever TO recover and meet
It's 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 to
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 10 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 subject-and if power was given them
to make distribution amongst creditors,
what an erroneous, dangerous and cor
rupting discretion would be given them!
What q wide door for speculations and
fraud! The salaries would be n standing
temptation to prOcraStlnate a final settle
ment of the trust; Il court of Chancery
would then have to be TesoIted 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 ere
ditors would soon find their claims swat
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.
Imputalions have been cast upon the
opinons Of the advocates of the BrSc0e
bil-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
bank. 1t is difficult to see what the le-
gislature has to DO with individual opinion
as to their moral duties. As well might
lit interfere with the freedom of religious
opinion. These are matters for the con
sileration of the individual citizen alone.
1t is said that these debtors 60; 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, TIN.
very same banks stockholders, (for il /.
known TO lie the history of nine out @
) ten of all the banks in the Staie.) neveI
} paid a cent OF their stock in specie, or thC
notes Of specie paying banks, as require,
by their charter, or al least paid no NOR,
than was necessary to put the bank II
!, operation, and gave their Individual pro
missorY notes for the almost entire amour
J of their stock, in fraudulent violation o
i their charters. This was fraud upon thl
q State, upon the borrowers, and upon II,
7 public generally. The borrowers canao
I in any event lie said to have received
something for nothing, for the notes eilhe
I cost the bank nothing, or az most, no
l more than few cents each, The cost. .
? paper and engraving, and the promiSsorl
+ fnoes Of debtors collected BY every banl
!, in the s. ate have amounted 10 ten time
= as much as would have paid the cost o
} outfit incurred by every bank of the State
! The exorbitant prices given to properly
< bv the inflated issues of their spuriOg
7 currency BY the canks, caused the borrow
/ ers to pay four or five times as much a
the intrinsic or proper value of the proper
! ty which they bought. Besides, the peo
: pie of our State, as a community and 4
/, individuals, have paid dearly enough 70
r the ruinous effects of fraudulent banks
5 The banks have entailed evils and iniurie
: upon our people that cannot be estimate
: in damages. They have baukrupied indl
/. yiduals; swallowed up private fortunes
= corrupted public morals, and destroyed th
prosperity and credit of our State. lIs
y the fraud of the nonpayment Of stock bee
: discovered or known while the borrower
S had the banks paper in their hands.
: would have deprecated 10 nothing. b.
t admitting that the debtors if released b
S Judgment OF forfeiture would be gettIa
! something for nothing, what thanks do th
: banks deserve, who all The time wer
e committing Graud7 Their stockholder
Il did not give their issues credit and cul
a rency! But that much slandered nam
a "The State OF Mississippi'-the PeOPl
l.. themselves. who gave the charters to ID
n banks, and authorized their issues to b
d received in payment of public dues. b
IS sides, many of them loaned the notes {
: other banks, fo' schich they noe hOld d
d notes of individuals to an immense GEioHl
D and the debtors, If discharged, after
d Judgment of forfeiture, are released ;
h the law of their contracts. 1t must, ais
n be taken into consideration, that, OF u
I'd total number of bank debtors at this tim
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