Southern sentinel. [volume] (Plaquemine, Parish of Iberville [La.]) 1848-1858, 1851-03-01
Louisiana State Bank

We Law before our readers to-day, 4 summa-
mary Of the Interesting document emanatlng
from our talented Secretary of State, the tton.
Charles GavarrJ, 4 member of the Board of
Currencv, addressed to Isaac Johnston, Esq.
Attorney General, wherein he invites the con-
7 sjleration and concurrence of his colleague,
G. w. Nc|Thortcr: and we likewise give q
synopsis OF the reply of the latter thereto.
NJ. GaYarrt dccmingi it his duty as a member
I Of the Board Of Currency, (Which Board was
+ q, ated to take care that the paper money issu-
ed under the authority Of TIE State be not de-
I prvciotcd, ard to supervise the faithful execu-
ton Of the charters ard bylaws of all banks
working under it) to IenouGce what he
! thought in1ractions Of the laws AID Of tie con-
! ]stitution Of the State.
He first begins by rccapitulating the various
act Of 9th March, 1884, creating the Louisiana
State Bank, in Which its powers and privileges
are defined. The gist of his showing in this
instance is, that the bank shalt in no case st
any time exceed the double amount Of its cap
ital, in any Of its negotiations and loans. He
then, by reference to All annexed statement Of
Branches on the lst February, shows that its
capital being 81 ,9S4,440, IFS operations were
extended to $685. 96, 81, exceeding by ST.,
53G.9l6'oa, the amount to which it is limited
by IL charter.
When the Board Of Currency, states Mr..
Gayarrt, asked Of the banks IN explanation Of
lis cause, it replied that the limitation contained
in its original charter had been amended or
modified by an act Of the Legislature, entitled
"An act relative TO the establishment Of a
Branch oi the Louisiana State Bank at Baton
Rouge, approved March 14th, 1850" which au-
~ttorizes and directs The Treasurer Of the State
20 keep lis deposits in said Branch, and the
aBaonat achat said Bank 7nay hereafter ioan
through its branches shall not lie deemed to d.
m;H;sh The amount Of looms to tchict Il is. lin
lied by as. charter.
The bank assumes says he, by this act, al
though it cannot exceed its own operations, as
mother bank, the amount TO which it is limited
BY It's charter, to wit: the double Of its capital ;
Yet it has the power to extend lis operations
through its branches to any extent. On exam.
nation Of the affairs Of the mother Bank. tie
Board found that its operation amounted TO
53,564,4l5,50, and that the operation OF its
branches amounted to Sl,6Al,379,52, making
the total Of $685. 1862, including Sl58,.
923,4l Of real estate.
He then asks The question. Had the Lee
g~islature after the adoption of the new Consti-
tuition the power TO extend the banking bust
ness Of that institution from ss3,698.SS0, TO
which it was restricted by its charter to the
amount of s. ,5o5796,7a.
Art. l22 Of the Constitution. says ssTHtat
Incorporate BODY shall be hereafter created,
renewed or extended with banking or dis
countingpriyI'cges.""
If the act of 1850 does not extend the Lou
isiana State Bank as TO its duration, it c~crtainIp
extends i to the amount of its banking priutl>-
ges and is therefore contrary to the letter, and
particularly to the spirit Of the Constitution.
Art. lls Of the Constitution, says: Every
law enacted by the Legislature shall embrace
| but one object and that shall be expressed in,
~itstitle."
Art. lla, says: "No law shall be revised
| or amended by reference TO its title. But in
such case the act revised or section amended
shall be re-enacted aud published at length"
Considering says~he, that the act Of 1850
embraces but one object in its title, but legis-
lates for tuo in its body, to wit: the establish
ment of Branch Bank At Baton Rouge and
modification or amendanentsof one of the most
important sections Of the original charter Of the
Bank granted in 1918, it remains 10 be decided
whether the act Of 1850 is or is nota violation
of the 1lsth article Of the Constitution.
Considering, he further adds, that the sec.
? Of the act Of 1878 and the LIST sec. of the
act of 1884 have been amended without being
re-enacted and published at length, I believe
the act of 1850 is unconstitutional, so far rs
regards said amendment in virtue of 10th
section. 1t is not evident, he continues, that
both Houses Of the Legislature and Governor
were deceived by the title, and thought that
they were legislating merely for the establish
ment off Branch at Baton Rouge, without en-
tertaining tie most remote idea that they were
~eaactiag, modifying and revising a vital section
Of the charter ofthe Louisiana State Bank and
authorizing the institution to increase its bank
ing operations from four millions to which it
was restricted to five millions and a halfway,
to an indefinite amount?
As viii be seen by the following able and
argumentative reasonings Of Mr.. Ne horter,
(MEn CENTRALLY lissants frnn, tba o,,.,,o, e Ill