New-York daily tribune., 1859-02-07
RANKING IN FLORIDA.

BANKING IN FLORIDA.
Florida, While still a Territory, tried an expert
ment of banking not of very successful or en-
courasipg kiId. To false capital tor the Union
Bapk Of Florida, so called the Territorial Lessla-
ture authorized the issue Of Territorial bonds To
the amount of some three millions Of dollars or
more which were negotiated in this city, aud u't-
mately passed. We believe, or most OF them, into
the bands OF Epglsh capitalists. Tne stock Of the
bark uss token by planters and Others, who, In
stead Of paying up in cash, which they had not,
gave their notes, and mOrtgsged their lands and
slaves at rather excessive valuation, to secure the
psymept, being entitled thereby to borrow OF the
bank 70 the amount of some three-quarters Of the
par value of their .tock. This was one OF those
counon cares TO which We had occasion not long
ago 10 alude, of bank got up, not BY persons who
had money TO lend, but BY persDus who wanted 70
borrow The bank, of course, undertook to pay
tie interest on the Territorial bonds, and to take
them up when due. This was in 1884. In the
crs.h of 1887 the bank stopped pay nent and never
re,umed sgan. large part of the notes which it
held were found to be worthless, in spite OF the
mortgages by which they were nominslly secured
The most available property embraced In she mort.
psees we're slaves but when the bank came to hunt
them up they were no where to be found;
all except few old and worthless ones had
been carried of to Texas, or had otherwise
disappeared, while the mortsaeed lands we're found
TO have been greatly overvalued. The bank proved
unable TO meet the interest on the Territorial bonds
the Territory refused to pay, and when Florida
was organized a. State the bonds were formally
repudisted On the ground that the Territory had
DO power to contract any such debt The bank
disappeared and the unfortunate holders of the
boz ds were obliged to be content with such lean
pcklngs ss they could get out of the bank debtors
This vas tweoty years ago. The State of Florida
has low IN the full tide Of experiment another
fnsncal operation of . still more dubious char
acter.
Under the grant to the States of the swamp
lands lying within their limits Florida received 8
very extensive cession-a large part of it, how
ever, of rather questionable value. 1t must have
consisted principally Of those lands, of which it
has been said that their main product is huDdred
bushels of frogs to the acre, with alg.tors enough
for fencing. Nevertheless, these lands such as
they are, have been made the basis of extensive
operation in the way Of constructing rar
They have been passed over TO q State Board,
which holds them for the benefit Of those roads in
certain proportions, and which issues bonds on
the credit of these lands exclusively, the State
not taking any responsibility, aud it is by
means of these bonds, taken, we suppose by the
COZ tractors in payment, that the roads are being
built Simultau eouSly with grand system OF
railroads, Florida determined also to have grand
81 stem of bspbs-got up, doubtless as the Union
Bauk was by people who wan. to borrow. To this
class doubtless belong most of the railroad con.
tractors. These banks are established under
General Banking law, which requires the deposits
of certain securities for the payment Of the cir
culating potes, swamp land railroad bonds being
receivable among others. As the law originally
stood the issue of notes upon these securities was
Limited to their market value; but - it might per-
hsps, be q little difficult to ascertain what the
market value Of the swamp land railroad bonds pre-.
csey is and the issue restricted might be con-
fined within rather narrow limits, the Flonda Leg
isIature which has Just adjourned has substituted,
instead Of their Market their soninai value-that
is TO say the banks have been authorized TO issue
notes without depositiDg any security at all What
between these unsecured notes. and the swamp
railroad bonds it seems to pretty clear that the
old Union Bank operation il about to be acted
over on pretty large scale. If the Floridiaus
viii confte themselves to cheating each other if
they will contrive to build their railroads and get
up their bank circulation at their own exclusive
expense shall not feel called upon to interfere.
But New. York and London have burnt their fingers
enough already with Florida securities, and We
trust they are not to be sinsed second time.