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Merchants’ and Planters’ Bank,
The present situation of this Institution, and
the steps, recently taken in relation to it, render
it a« imperious duty of the Directors, to tliemsi ics
and to the Public, to make tins appeax. In doing
so thev will endeavor to confine themselves to
mere self-defence- That they have been most un
justly and wantonly assailed, they know and feel:
and if they can but be fairly heard, they are assur
ed that the community will feel it too. But they
do not wish to return upon their assailants any of
the abuse, which has'bccn so freely heaped upon
themselves. , _ .
In making a statement of the course, pursued
bv this Institution, it is not intended to go farther
back, than the suspension of payment, in April
last. About the first of March, when the Bank
was in full operation, an attempt was made to put
|t down, right or wrong, by means, which no mo
nied institution in the State could have withstood.
Reports, injurious to its credit, were industriously
circulated, in the country, by letters, messengers,
and other means, calculated to bring home, at
once, its whole circulation, which reports were
not heard of, bv the Board, till their effect was
felt, and it was too late to counteract them. At
the same time, a run was commenced for specie,
by influential monied houses, which continued for
several weeks, uni-emitted. During that period,
the Bank paid out more than One Hundred Thou
sand Dollars, in silver, and a still larger amount,
in other specie funds, for its notes. At the end of
that tiipe. finding their available means diminish-
i„"\ the Directors endeavored to relieve the Bank,
bvpledging their individual property : And pro
posals were made, on what was considered un
doubted security, and is still believed to have been
flucli, to other Banks, to loan to them one hundred
thousand Dollars. • Had this offer been acceded
to. no attack could have shaken the Institution,
for an hour. But it failed. And one principal
reason, why the assets of the Bank could not be
realized, was, that an Act of the last Legislature
made all paper, held by one Bank, when transfer
red to another, payable in the notes of the former.
No other monied institution could be expected to
make a loan, on negotiable paper, with this law
staring them in the face : for though its constitu
tionality may well ho disputed, no one, not inte
rested. w ould run the riskof litigating the question.
This law. then, effectually prevented the Bank
from resuming payment, after its first suspension.
It was known that tire Directors were all largely
indebted to it. It was knows that they were nil
uiurii embarrassed, having made all possible
efforts, to save the Bank, and made them in vain.
It was expected that their property would be sacri
ficed : and if it were, it was further known that
the notes could not be redeemed. Hence, the
great depreciation of tire bills. The Directors
determined, in order, if possible, to diminish the
pressure, to throw their own property into mar
ket. for the bills, and force a sale. The result is
known. The property sold advantageously. A
large amount of bills was thus taken up. and the
market relieved. A very considerable rise in
cotton, wholiy unexpected by tire public, enabled
some of the Directors to meet a portion of their
own engagements to tire Bank; and thus, an ac
cession, totally unlooked for, accrued to its avail
able effects.
At the commencement of the present session of
the General Assembly, the Bank was, and it still
(0 t „
Resolutions of the Senate..
Resolved, That his Excellency tire Governor proceed, as soon as may be
Practicable, to the appointment of three suitable and competent persons to
ascertain, as accurately as possible, the unauthorised conduct and acts of the
corporation, styled “ the Merchant’s and Planter’s Bank, of Augusta,
w hich may amount to, or be sufficient to authorise, a forfeiture of the charter
of said corporation. And the said agents, when commissioned by the Gover
nor shall have full power and authority to call for and compel the appear
ance of such persons, and the production of such papers, as shall be deemed
necessary, in aid of said investigation. ... ... ..
Resolved, further, that the result of such investigation, together witsi the
testimony, and the names of the witnesses to sustain each charge, with their
several places of residence, respectively, he, by said agents, reported to the
Governor, who shall deliver a copy thereof to the Attorney General of this
State, whose duty it shall be, forwitli, on the reception of said copy, to in
is, as this Board fully and firmly believe, able to
pay all its notes, in tin course of the ensuing year.
at their ear valu^ and to refund to the stock
holders one hundred cents in the Dollar, of the
amounts paid in. litliis condition, the Directors
endeavored to effect (ales of their stock, that the
Bank, under other nanagement, might resume
operations, and re-conmence specie payments.—
But for the threotovtd action of the Legislature,
this would leave been actually accomplished, seve
ral weeks since. Butthe fear of that action has
deterred, as well it night, men of solid capital,
who were disposed t« make the purchaso, from
any such arrangement
The Legislature Ins acted. And how- ? In
that dignified and impartial manner, which be
comes the governmenfof a free people ? Let their
constituents judge. They proceeded, in the first
iftugusta, December 12, 1833.
as true, all that is required to be proved, for the
condemnation of the Directors: denounces them,
not only without a trial, but without one particle
of evidence, or even an attempt to procure any,
as the authors of extensive fraud, as dishonest di
rectors. and robbers of the community. The
respect, due to the supreme legislative authority
of the State, forbid such a reply, as these charges,
under these circumstances, require. If the two
Houses, under the direction of their committee of
conference, have, used language, wholly unworthy
of their high station ; if, forgetting the first prin
ciple of our free institutions, that every man is
presumed innocent, till lie is proved guilty, they
have thus summarily denounced the objects of
theirsuspicion. without proof, and condemned them
without trial: this Board will not follow their ex
ample. But they owe it to themselves to say,
tkat the charges, in that report, are as groundless,
instance, to raise a conmittcc of investigation.—
Their power to do this,this Board utterly df.x y. as they are indecorous.
They will not now argue this question. Their This measure has left this board but one course
reasons, which they bilicve wholly unanswerable, to pursue. By submitting to an investigation,
have been laid before the present committee of ordered under circumstances, and in language
investigation, by way of pretest, and will proba- like this, they would virtually say to the world,
bly be embodied in* their report. It may not, that a consciousness of guilt deprived them of he
therefore, be altogether decorous to publish it. or
the substance of it, till that report is made. But,
whilo believing the whole proceeding illegal, this
Board were desirous of satisfying the public.
They knew- an expose vas looked for. They rea-
power to resist oppression, or to repel abusc.-
They cannot, and they will not give room for such
an' inference: andthey have, as they conceive they
had a perfect right to do. refused to the committee
all access to the books and papers of the Bank,
dily admit that the circumstances required it: and and have, themselves, declined testifying as wit-
they accordingly instructed their counsel, as soon nesses. If they have, in this, disobeyed any le-
as they were apprised of the appointment of the gal requirement, they are ready to meet the
jirst committee, to prepare a respectful protest, consequences.
"denying the authority, by which the enquiry was This decision has been made, after thorough
to be made, hut offering, at the snmctiinc. to sub- deliberation, and advising with counsel. But it
mit to it, and render any aid in their power in has been made, w-ith great reluctance; for the
making it. This paper was actually drawn up, Board have, really, nothing to conceal from the
and completed by the counsel, and a room was public, and arc unwilling to be suspected of con-
prepared to accommodate the committee, in the cealment* This they expect to prove. A tlio-
JJnnk. when news reached here, that the Senate
had reconsidered their first vote, and ordered, not
a committee, to investigate and inform the Legis
lature of the true condition of the Bank; but a
commission, to seek evidence, on which, at all
events, the Attorney General was to be ordered to
file an information, in nature of a quo warranto.
A copy of this resoluthn of the Senate is annex
ed. (1) The whole enquiry now assumed a new
aspect. The Bank vas to be called on, not to
furnish, to a committee- of the two houses, tacts.
rough investigation—more thorough than any
legislative committee could possibly make—they
will voluntarily submit to. But an illegal enqui
ry, avowedly hostile, with no object, but to obtain
evidence, for their destruction, they have repelled.
They arc aware that their protest to the com
mittee has been unfavorably * regarded, by the
public. As men. injured without cause, and in
sulted without provocation, they respectfully ask
of the public to suspend their opinion, in relation
to this Bank, till a satisfactory investigation can
for them to act on; butto afford, to an inquisitorial be made: and they now publicly pledge themselves,
ln»Uv evidenre to be usfd in a lioetllo itfooooiling, fnrthwilli fo roll ,m men. mnong tl.« <kmI iulclli-
nl ready resolved on: Avd to excite further the pub- gent and respectable in this community, who can
not be even suspected of any inclination in their
vestigation, and publish the
all the books and papers of
assets of e\ery sort, and all its
could impede it. transactions, from the day the stock was taken,
After the disagreement of the House to this pro- till now, shall be fully exposed. To aid in the
position, and the reference of the whole subject to enquiry, all the former officers of the Bank v. iir
a committee of conference, a report was made and bp requested to attend, and every member of* this
adopted. It became the act of both Houses ; and Board will freely render all the service in his
power.
By order of the Board:
JOSEPH WHEELER, President.
It is due to the committee, now sitting, on this
investigation, to say, that their demeanor to the
Board and its counsel, lias been, in the highest dc-
undcr that report, a joint committee has been sent
here to investigate, to whom two gentlemen of
this city have been added—the third declining to
act. A copy of this report is annexed: (2) And
the Board ask the public to read it, and answer,
w hether men, w ho ever claimed a tittle of respect
ability in society—men who have the feelings of gree, courteous: and in particular, to their chair
human frrfnrt rnn be expected to submit, in si- man. Mr. Towns, of the Senate, the Board take
lcncc, to such a philippic. That report assumes, occasion to express their sense of obligation.
failure to prvnimtc the ubjccts for which it was chartered, that no reasoning
can make it more so. Public justice requires, at the hands of the present
Legislature, prompt and energetic measures, with regard to this institution.
To whatever extent these measures go, they should he decisive and effectual.
The speculations, afforded to dishonest Stockholders and Directors, and the
loss suffered by the honest industry of our State, by the failure of large mo
nied institutions, if permitted to pass without investigation and suitable pun
ishment, will serve to induce a repetition of crime, on the one part, and to des
troy, on the other, a confidence which should never be wanting, that in the
Legislature, the people will always find a vigilant protection for their
rights. Should this Legislature, with a knowledge of the charges of dishon
est and fraudulent practices, on the part of this institution, adjourn without
some definite action on this subject; and should the Merchants’ tk Planters’
Bank be transferred into the hands of bona ude purchasers ; your Commit
tee will submit, with what degree of goodfaith could a subsequent Legisla
ture institute any proceedings against the institution, forfeiting its charter,
me »iin uaitimift — . * i. •»
to compensate said agents, at the same rate, per diem, when engaged m said
service, as the members of the Legislature, and defray the expenses of said
investigation, and such proceedings as may be instituted, out of any money
jn tl-c treasury, not otherwise appropriated—and that he he likewise autlior-
isctf to employ and compensate assistant counsel, in aid of the Utorney Ge
neral—and that the report of the agents aforesaid be laid before the people,
through the public prints.
(2)
Report of the Committee of Conference.
“The Committee of Conference, appointed oil the disagreement #f the
House, to the amendment to the Resolution* by the Senate, proposing an in-
t* . ■ * m l. fi. 1)onL' Ilia! fKi* norPdditV III.
Sti'rwflMCMdiifgs, in'ti.e'prop.rcourtVii.r the purpose if forfeit- or othmrisc cmto-rassi.ig it, oppratioK. making innocent imU.Wual, the
if dJSSKl-l said charter. And the Goirnori, hereby authored snlTcrcrs, while thoseby whose d.shonesty. perhaps imprudence, the .■nstitu-
mg anu ucciai in-, vuiu . _ ,.— 1 „„:,i t ; on was prostrated and the community robbed, are permitted to escape with
out notice. ' Your Committee entertain doubts, as to the efficiency of the
course proposed by the Senate, to further ail investigation of this institution.
The necessity of an immediate investigation, ami offurthcr action by this Legis
lature, after that investigation, is not doubted fora moment. To advance the
object so much desired by the Legislature, the Committee offer the follow
ing :
Resolved, That the Senate do recede from its amendment to the Resolution
of the House of Representatives, proposing an investigation of the condition
of the Merchants’& Planters Bank of Augusta : that said ResoIution.be a-
greed t $ that the Senate de appoint, on its part, two members, and the House
ixstfgationof the* Merchants & Planters’ Bank' rep^Tthat'the ncc^sUy ofThree, as a joint^ Committee ; that Robert Campbell. Henry II- Cook, ami
an investigation of the affairs of that institution is so apparent, as well toNathamel W. Cocke, be appointed with said Committee, to aid n. t.ie inw.,-
““harmless if possible, the present holders of the bills, as to expose and ti^ation, and that said Committee report to the Legislature, as early as
punish the frauds by which the community have already been injured, by its*p« tssible, the extent and result of their examination.
P £ditors, who published the Resolutions of the Senate, or the Reprt of the Committee of Conference,- are respectfully requested to copy the above.