Democratic banner., 1851-01-13

~ HtC VI uVlIcLs ouu SO2npslauCc Will
70 provision Of the constitution, ene-hsf Of which
10 reserved for the use Of the State. Of this re-
served stock, only $272, ,203 90 have been in
vested by the State in her own right, and $685.
|667 96-the University and Common School
funds have also been invested By the State as
stock In the Bank. In reference 10 this, tie State
can only be looked upon in the light of alrustee,
responsible for its management. and h6fslly and
equitably bound to make It good,if any porion|
OF Il he lost. "s
individuals own Of the stock of the bank $258,
962 81, that according to the charter, the con-
troll and management Of the Bank have been en-
tirely in the hands of the State, or governed by
a president and directory elected BY the Legisla-
ture, or appointed by the executive. While the
State continues 10 hold the stock invested, and
to be responsible for that of the University and
common schools, and the dispropor,ion Of the
stoCk held by private individuals, continues as
great as il is, it is not my purpose to recommend
any change in the manae ement Of the Bank.
The knowledge derived from the experience
of our sister States, strengthened by my delib-
srately formed opinion. in reference to our own
Bank, has satisfied me that the State should new
er invest its funds in ahy institution the object
and aim Of which is TO deal in money. In the
selection Of directors by individual stockholders,
the choice is usually made upon q personal
knowledge Of the individual selected, or upon
information derived from those having like in
tsrest in the matter. But in the selection of di-
rectors or the part Of the State, it is impossible
that either the Legislature or the Executive, cen
have the same means Of making judicious choice.
They are often called on TO act, knowing nothing
of the individuals recommended for the station,
other than recommendations. which speak in gen.
ersl terms Of qualifications, without affording
any test, BY which to discriminate between the
applicants. These Recommendations may also
often proceed from those who have no other OBJ
jsct in view than that Of advancing their own in
iere,t. With directory. thus selected. having
no pecuniary interest in the Bank to look after,
and most frequently engaged in other active pur-
suits, their attention to the duties Of director
must necessarily be secondary in its character,
and the rghts Of the State are often liable TO suf
fer for want Of a more vigilans guardian Of its
interest.
With the view, therefore, Of diseonnecting the
State entirely from the Bank, ] recommend that
an act be passed, authorizing the State to sell
the stock held her own right. and to withdraw
from the Bank, as stock, the University and
common school fund. The bonds Of the State
are now out for the amount Of our State stock,
or in other words, We are now paying a semi
annual interest upon borrowed money to bank
upon.
This stock should be sold upon such terms as
will pay the bonds, upon which the loan was ef.
fected 10 pay for it, and relieve the State from
any future liability for the bonds. OF interest on
the same. II 10 believed this desirable object
cannot be accomplished, unless some induce
ments be offered to private individuals to buy out
the State stock.
AS the charter Of the Bank has but six years
TO run, recommend that it be smended 30 as
to extend it for definite number of years, and
SO 10 alter its provisions, that the Bank can 60
into successful operation under the direction Of
private stockholders, aud with such regulations
and restrictions upon the corporation as may be
thought best to secure the public interest
The bonds of the State. outstanding on the lst
CT January, lS49, and which constitute the State
debt, amounted to 1856 ,26l. A portion of this
amount Sl5 900, the State had borrowed from the
branch Bank at Palmyra, which, at the maturity
Iof the bonds, on the 18th May, lS49, instead OF
renewing them for another twelve months, aud
paying tae interest in advance, according 10 the
terms Of the loan, caused to be paid. The sum
Iof $4,000 constituting portion also OF this
debt, was borrowed under the provisions OF an
act to sustain the credit of the State, approved
10Th February, l847. The bonds bore an inte-
rest Of eight per cent. per annum, and redeemu-
BILE at any time after two years, and payable at
The treasury of the State. caused the holders
o. the bonds to be notified to present them for
payment on the lst day of February last. and
that no interest would be paid on them after that
time. The bonds have been presented and paid,
which, together with the interest then due,
amounts to $l9,s67 SO. Although these bonds
were payable at the Treasury at any time after
two years, yet as there was an omission in the
law 70 authorize the Auditor to draw warrant
for ihe sum necessary to pay them, caused the
Treasurer, upon my requisition, to take them up
and hold them as money. Inow recommend that
the Auditor be required to give the Treasurer
credit for the amount on the books in the Audit.
or's Office.
Deduct these two items, amounting 70 $34 900,
exclusive Of the interest paid. from the State
debt, and it reduces II to 1922 261 40. From
this may also be deducted $272, 1868 SO. the a.
mount Of State stock IN the Bark, the interest
on which is paid by the Bank out Of the divi-
dsnd, and the Bank is responsible to the State for
the principal.
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