Mobile register and journal., 1845-12-25
GOyERNOR's MESSAGE.
EXECUTIVE ntPkRTmEET. Tuscaiopra, December 18th. ls45. rnsn nf khe x. nnte

ncaIe to yOn my views upon the yarlOus snhecl connected with The afairp of State Bank and Branches; and with lhe indebtedness oi tI" State subjects which have for time past occupied the attention 0i our constituents, aud which have recent y become 50 impoilart in then view as To engross all others To these subjects shall cOnfne ny sell | in thls communication.
 From inc report nl the sevetal legislative cnmmit- tees whose duty il has been, from tac totim", 10 | inquire into the condition of our State Rank and Branches it appears lhlt fr the last several years these institutions nave suffered one uHbroken series Of losses; resulting in the disastrous condition in which they were iOand at the last session ol the Ge | neral Assembly. The causes which have brought about these continuous and heavy losses, readily discovered by recurrence 10 the history of their management; the whole tenor of which proves be- | yond doubt, that less regard has been had To Ihe interests of the Banks, than the convenience and ac- | conm,dtiion of iheu debtors.
 f By the report made to the legislature at tic ses- sion ol l737-S il is shown that the ndebtedness Ia | the State Bank and Branches, amounted al tha Be to more than twenty millions of doliars--u h. c'' l but Ii lie more than hundred thousand dollars were considered bad, and hut litle more than five hundred thousand dulla"s doubtful. The first act oi the legislature. changing the usual course of bus- ness m those Banks, was passeda short lime before aI the Called session in June, 1887. This act ex- tended ihe time Of payment of the debts thea due i; dividing them into three annual insialments; the first of twenty-five per oen he other oi thirty l further loans, payable in like instamrns.
 Al the session ul lSI0.l, report was nude 10 the Legislature, by which II appears, that under the ln- fuence of the acl referred to, commonly known as the relielor extension law of 1884, he bad debt had increased 10 more than three aud one half millions of dollars; while he doubtful debt had sweed te an amount exceeding million and d hdli of dollars. Aad in this report, is introduced, a new item deno- minated "unknpMn debi." amounting hen more tlin oae million ani quarter of dollars Thus Is shown deteIipiaiono o lhe debts due to the Banks, by which losses have tern incurred, 10 be estimated at not less than ion and quarter of dollars annually, during the ttree years immediately prece- | ding this report.
 Al the session of lhe Legislature of 1S39-40, ano- | ther act was passed, fapprured l February lS40, ) | by which it was required that. 'not more than 20 per cent" of the several debts due ihe Banks should | be demanded per annum. Under the operation of this act, connected with the above referred To, as shown by report of committee at the last session | of the General Assembly, the good debts redu. ced to SIX millions, nine hundred and ninety three | thousand nine hundred and sixty five dollars, and thirl, cents-($6 993 ,96j S6 The doubtful debt to four hundred and eighty four thousand, one hundred a.d thirty ytwo dollars and forty six cents (Sl34,l32 46) While the h,d debt had reached the enormous sum of six million, two hundred and ninety-two. thousand, five hundred and nneIy-nine dollars and seventy cenls-($6, ,292 ,599 70) Each of the laws here referred to required tha he Presi- den and Directors of the several BaHks should de mand further security, if by them deemed neressary as condition precedent to the extension. How far this provision was reg rded may be judged oi by the | results.
 This cursory glance al the history of he legisIa- | ton and management of our banks, must clearly | show that the extension laws, and the mlnner of | ther execution, were ihe principal causes oithe m- mense losses sustained by these institutions. A more minute examination would but iortily this con cusiO1. As however, II Is important t1 know the causes of the evils, simply with view to avoid them in future, shall pursue ihls enquiry fur. ther. We md our Banks at the last of lhe Legislature, in the situation mentioned. We have no reason 10 believe they are in better condition | now. The mischief is done; and it is the part o wisdom to make the best that we of our present condition. To do this we should adopt such meas tres may promise to cuect the largest amount o the entire indebtedness to the Banks, with the lea s expenee; and at the same lime, brng their affairs to the most speedy adjustment and conclusion, com paibe with that important object.
 At the session of ls42 3 of the General Assembly acts were passed repeating the charters of the ioul Branch Banks SD to deprive Them of banking nowers; and putting them in Hqiidation On the first day of January last the charter of the State Bank expired by irs own limitation. None of it's banking powers have been renewed, but bs all aci O ihe last session of the General Assembly il was pu in liquidation. By the sane act, the officers of the State Bank, and of each of Ihe Branches, made 10 consist ofa President and two Directors, Cash | fer, and two Clerks; and une additional clerk ir | the Branch al Mobile.
 The impolicv of keeping up five banking establish. menis, with five Presidents, ten Directors, five Cashiers, eleven Clerks and other agents attorneys and servants, engaged upon sa laries and pay; with Il variety of other of expenfe which might be mentoued; swelling the actual expenditure of the State Bank, and all of ihe Branches, to d sun not very far short of the expense of State Govern ment, IS too obvious 10 require argument; look ing l,i.. 10 this is added the utter inecency of the system for the attainment of the great object in view-col- lecting and securing the debts, and winding up the concerns of the Banks in the most speedy possible manner--a reform of the system bec"mes inperi. ous dny. Without change, judging the future by the past, we have but little ground hope, that this complicated business will be brought 10 beneficial and satisfactory close, in any reasonable .ime.- l With these views, and others winch will suggest themselves to you, respectfully recommend 10 your consideration, the proprety of dispensing with all the officers of ihe State Bank and of each of the Branches And recommend that provision be made for the appointment of one agent to remain al each of the Branches, with authority to receive payment from the debOrs giving proper receipts and acqmit- tancfs and to do such other minister acts as il may be necessary and expedient for him 10 do in lurIhering collections; but with other powers. l further recommend, that provision be made for the appointment of three commissioners, in fhe mode now prescribed, for the appointment of Directors wtl such sa aries as will command the best quaiii cations for the purpose, 10 be found any where in the State; who shall reside at the State Bank, ar / devote their entire time and attention ,o the npor- tan object of securing and collecting the whole bank debt; with full power and authority to appoint all nect ssary attorneys, cleIks and ageutsto transfer the books and papers of the Branch Backs to the State Bank--except the evidences of debi running to matury-to dispose of the real and persona property of the State Bank and Branches and wher uar nd lo.,ltn ,ln Intar oi ihe State and to compromise and compound debts that may al any time be considered doubtful or bad thus concentrating the whole business at the State Bank. further recommend, that these commission ers be empowered 10 pay the interest, il may be- come due, upon the State debt. and to extinguisl the debt as last as they may be able, from their col lections and other unds under such rules and regu lations as you, m your wisdom may prescl lbe; giv ing to them ample powers for all these prposes al the same tune, securing the State against abuse, by proper restrictions and srreties. By this system
 il obvious, that after the payment of such salaries as are contemplated, and every other expense nci- dent 10 H. vast amount 0l the present annual penditnre would be sa'el. None, think, can doubt It's superior efficacy Wiih suitable cuminiss am induced to believe, bnt few years would be re- qured to bring the whole oi the affairs of our banks tn final close; at least. to enable citizens to understand what ought to be known to all, but what is now knnwn to none--ihe true peeunary condition of the State.
 By an act passed at ihe last session of the Gene ral Assembly, the debtors to the State bank and branches were required o pay. by the first oi June last One-thIrd part of their respective debts, with interest. And il was provided, that upon compli- ance with these terms, ihe rema ming U-thIrd, l should stand over until the first of June next Il was generally undcrslood tiat u further provision would be made at the present session, in favor o those who compled extending 0ne-half of the bal ance due, for twelve months longer, upon the pay