The south-western. [volume] (Shreveport, La.) 1852-1870, 1861-08-21
Bank DisabiIities-Conventio

specie payments we copy the article below from the
New Orleans Picayune paper well conversant with the
feelings of the people of that city, and are much
familiar with bank affairs and chartered rights, than
people in the sbackwoods," who often undertake to
write about things they cannot possibly understand
five have right to make banks receive our notes
and loan their gold and silver certainly have the
right to 80 into store and compel the merchant to
divide his goods with u.s. go the planter and require
portion of bis lands and negroes. If property of
every description to be protected then stand
upon the threshold of fearful volcano. But TO re-
turn to the Picayunes article:
1--WE have received, on several occasions Of late,
communications making inquiries into the legal status
Of the banks Of this State and suggesting plans for
enabling them act in concert with the banks OF the
other Confederate States in receiving and paving out
the treasury notes Of the Confederate government,
with the object Of making those notes the universal cur
rency for the transaction of all business.
Some Of the inqurers assume that something may
be done by legislation to relieve the banks from the
penalties for the suspension Of specie payments This
idea gets currency by the loose statements Of the jour
mails out Of the State speakingoft Louisiana banks,
their danger is, simply, that they would incur or
fetureof charters, BY suspendng specie payments.
If this were all the consequence, there would be no
difficulty The mere forfeiture OF a charter effected
operation Of law, could be remedied by the aw-nak-
ing power The legislature is entirely competent to
suspend or disabilities created by law and could
either sanction the suspension directly restore
charter with all the notifications which might be neoes
sary to secure the object desired The disposition Of
the legislature could not be doubted They would,
with absolute unanimty, az We think, pass any laws
which are within their capacity TO place our banks in
a condition to act in concert with those of the other
Confederate States
But the disabilities lie behind the Legislature 1t is
prohibited by the constitution from passing the laws
which the emergency seems to demand The inhibition
is found in the constitution, article ll9, thua:
"The legislature shall have no power to pass any
law sanctoning in any manner, directly indirectly
the suspension Of specie payment by any person.
citation or corporation issuing bank notes Of any de-
scription."
We are aware that it has been suggested that the
banks might, if their charters were surrendered re-
oeiye new ones which shall give them back ali their
present powers with the addition that they may carry
on business specially, during the continuance Of the
war; with Confederate government money. But art-
Gle lis of the constitution as amended by the recent
convention, requires the legislature to make provision
that "no bank shall issue from its counter any other
than its own notes"
These are the disabilities under which the banks Of
this State labor in the present crisis Of public ar
There is no constitutional power to protect them in
anywse against the effect Of suspension Of specie pay
ments upon their charters, and constitutions capa-
city to provide substitutes for them with banking pow
ers adequate to the wants Of the people aud the gov
eminent.
We shall not consider here, at least, the various
ways in which it has been proposed to enable the
banksto evade these provisions. They have certain
degree Of plausibity but after ali are mere eva.ons
Of plain intent Of the organic law In times CT peace
when the only legitimate function of banks is to pro-
vide facilities for peaceful commerce. without impair
ing the stability Of the snews on which the values Of
property depend We have in Louisiana the best bank
ing system III the world and il has been the best adj
ministered of any in existence. But war, invasion,
the suspension Of commerce by a malvolent enemy,
the necessities Of defence for life property and liberty
against deadly ASSISTANTS from abroad, need other IL
struments.
We have been repeatedly asked by friends in the in
terror whether the State convention Of last winter
,-a----1r-l = 49,.
this State, Of things which was not foresaen when they
adjourned. An intelligent correspondent in note
received lately inquiries whether the convention can
not be called together for this purpose Re makes
point, that the convention was rregularly adjourned
there not being quorum present when the presiding
officer declared adjourned and is therefore not dis
solved.
There is no force in the suggestion The convention
fixed term to its own existence, BY passing vote 10
adjourn at given hour on certain day. 1t was ipso
facto, dissolved at that time no reconsideration hav
ing been had The dispersal Of the members was the
extinction Of the body There subssts ne authority to
call them together and they would have powers if
they did come. Conventions very mighty insttu
TONS it would be very dangerous precedent, if after
their functions had ceased they could be irregulary
revived, for any act which might be thought by them
selves to be further necessary or ezpedient.
The only effective remedy is convention, for
the purpose Of making provision for the State
cessty which has arisen for the suspension during the
war time of such disabilities Of the banks detr
mental to the common cause.
Such convention must emanate from the legisla
dfTeGt, a6 tue la-L Qla ARefe IL 0tuef
power which can reach the matter The ordinary pro-
cess Of amendment would take two years before it
oouldb incorporated into the constitution.
The legislature, to be elected next November, will
specially meet in the same month, and convention |
could be summoned in time to adjust these measures
,efore the 1st Of January and supply bya sovereign
sanction Of the State whatever well dgested measures
nay have been previously taken for the public good
Fhich the existing laws may not be competent to give.
The subject fully considered at the late South
I'm banks convention in Richmond (which the banks
If Louisiana were able to be represented on ac-
count of their legal inability to cooperate in the pro-
.eedngs, which It is believed their unanimous judg
nent approves. resolution was proposed aud adopt
3D. soliciting the cooperation Of banks in measures
or the removal Of the disability, By the assembling
# State convention, if need be and inviting the CO.
operation of the governor.
For the South Western.
SPRING RIDGE La, August 10, 1861.
MEssRs. EDlToR5.-The gentlemen whose names are
igned the cards in your paper of the 9th and 18th
Instant are too rgspecable in character and number to