The south-western. [volume] (Shreveport, La.) 1852-1870, 1861-09-25
Proclamation by the Governor.

blockade Of our ports is raised has deprived our gov
eminent Of the resources it could otherwise command
from the disposition OF our great staple 70 supply te
means for carrying on the war waged against us ny .He
United States the Confederate government, like otheF
governments under like circumstances, has been forcea
to resort to its credit which credit rests upon the wealth
of the people of the Confederate States.
The government has judicously determined to issue
one hundred millions OF treasury notes, secured by
direct tax upon the property of the people, ana the re-
demption of the notes is as certain heproperty they
represent All the banks of the Confederate States eX-
cept those of New Orleans and Mobile, receive lhese
treasury notes in payment Of debts due to them, ana
pay them out to their creditors thus establishing cur
rencv of real value which meets all the wants OF lhe
public. In order that their banks might be enabled to
conduct their business to make the treasury notes
common currency, they have been obliged to suspend
specie payments because, unless the creditors oil the
banks receive the treasury notes. these notes could not
be taken by them in payment and would thus tal to
answer the purposes Of currency.
The banks of Louisiana however, are forbidden to
suspend specie payment and our legislature, unlike that
Of the other States is without constitutional right TO
legalse suspension. As treasury notes must be below
par and hence cannot circulate like bank notes "hle
the banks continue pay specie one OF two results
must follow: Our banks will be obliged to redeem all
their notes and pay all their deposors in CON- and then
be utterly unable to increase their loans, or they VIII
have 10 suspend. If the banks refuse to receive treas
ury notes and continue to pay out CON- the entire plant
interest OF the state, dependent upon AE dphCy VI
the commission merchants TO obtain facilities from the
banks in order furnish the planters with their usual
supplies will be deprived of the means absolutely ne
cessary the current expenses OF the year. while
the treasury notes would be subject to constant depr
cation and the credit of the Confederate government
seriously impaired thereby. To prevent consequences
that will prove SO disastrous to the whole people, re
commend to the several banks Of New Orleans to sus
pend specie payment.
In recommending this course to the banks am well
aware that they incur the risk of forfeiture Of their
Charters from which neither the legislature nor the eN
ecutive can relieve them.
But the legislature can refer the whole subject to the
people of the State at such times Is, in their WISDOM
they may think proper and tie people i'll convention
assembled will decide whether the forfeiture Of their
charters by the banks shall be eXacted orrenquished
The banks now in condition to pay all OF their
liabilities as rapidly as they be presented at their
counters and Notwithstanding the suspension OF specie
payments hereby recommended, they maintain
position so strong that when the period for resumption
arrives they will not be embarrassed or even ncouyen
fenced by paying every dollar in coin.
As the spirit Of the constitution and the laws of this
State regulating the banking system, regards the bill
holder as the creditor first be protected an additional
restriction proposed which looks directly his inter
est in order therefore, TO secure the prompt rcdcmp
ton Of the circulation of the banks and to preserve
their present mprcgnabe state when the resumption of
specie payment shall be deemed advisable the banks
will observe the following regulations:
/. The circulation OF the chartered banks-that is,
the Canal Citizens Bank of louisiana and the Louisi
ana State bank-shal not exceed the amount of coin
actually held by them respectively and the circulation
of the free banks shall be restricted to the amount of
bonds at present deposited with the auditor of this
State, and in accordance with existing laws.
,. The suspension OF specie payments will not inter
fere with the weekly and monthly returns to the board
of currency with the fundamental rules governing
the banks, not in opposition to the recommendation
iprpin made