Newspaper Page Text
IGIA TELEGRAPH.
ICUTIVE DEPARTMENT, I
Milletlgeville, Dec. 22, 3357- J
entitled “ An act to provide against
e several bank charters in Ibis State,
. rpecie payment, for ft given time,
.rposes therein named," without my
institutions hare exclusive privileges
contei.. them by law. which are very valuable,
nnd which 1..0 laboring masses are prohibited, under a
heavy penalty, from exercising, upon the same terms
upon which the hanks exercise them. The banks are
permitted by law, without bond or security, to loan
their credit, or, in other words, their notes as money,
and to charge interest upon them. The laboring man,
whatever may bo his occupation, is denied this privi
lege, and is subject to indictment and punishment ns a
criminal if he attempts to exercise it. Ho can receivo
interest only upon the capital which is tho income of
bis labor ; and upon this he is permitted to cliargo on
ly legal interest, or seven per cent, per annum. Tho
laboring masses produco the capital. Indeed, all capi
tal is the result of labor ; nnd that system of legisla
tion which establishes a favored class, and confers up
on them privileges denied to others, by which they are
enabled to enrich themselves by taking from tho labor
ing masses the iucome of their labor, is not only un
just, hut contrary to the genius and spirit of our go
vernment.
I think it will not bo denied by any, that our present
system gives to a favored class immenso advantages
over the great body of the people. As an illustration
of this principle, two men work with their bands, the
primary mode of making capital, till each stakes a dol
lar in gold or silver. One loans bis at interest. Tho
law of our Stato permits him to receive only seven
cents for the use of it one year; and if he charges
More, tho law declares tho excess to be usurious nnd
void.
The other applies lo the Legislature, and obtains a
charter, conferring upon him banking privileges. By
Ibis charter, it is made lawful for him to pay bis dollar
as capital stock into tho bank, and to issue upon it
three paper dollars. The bank is permitted to loan
these tbreo paper dollars nt interest, and to charge sev
en per cent, upon each of them. If ho were to loan
them for one year nt legal interest, he would receive lor
them twenty-one cents. These three paper dollars aro
based upon tho one dollar in gold or silver, and the
banker in fact receives the twenty-ono cents interest
upon his one dollar in specie, while tho person withont
banking privileges receives only seven cents interest
upon his dollar. Bat tho banker is not content with
twenty-one per cents year, or three times the amount
received by Lis neighbor, who is without,banking priv
ileges. lie will not therefore loan bis three paper dol
lars (bis own notes) aycarat seven percent.; but he
will loan them at thirty days, first deducting interest
out of the sum loaned, if the borrower will also pay
one half, one, two or threo per cent, a month usury
under tho name of exchange. And even this privilege,
itinco the banks have suspended, as a general rule, is
allowed only to cotton buyers or speculators, and is de
nied to the merchant, farmer or mechanic. He cannot
gctacoomicodatioo, it matters not how good a note ho
can make. The debt to tho hanker must .bo paid
promptly, or renewed at tho end of tho thirty days.—
Jf permitted to be renewed, the interest must be again
discounted and compounded, and the usury, under the
name of exchange, added. If indulgence is given for
a year, the note or bill must be renewed, tho interest
compounded and the usury added twelve times du
ring the year, or every thirty days. I speak of tho
usual number of days allowed in bank. IV. mar be
but sixty days, while it is sometimes ninety. This in
creases the interest received on the banker’s tbreo pa
per dollars, or one silver -foliar, to twenty-five, thirty
• or thirtv-fivo per cent dependent on the amount of ex
change or nsurv added each time the noto or bill is re
newed. But tuo banker is still not satisfied with this
K - cent, upon his dollar. Tho law of bis charter, as
nk charters exist in Georgia, authorizes the bank to
issuo three paper dollars, or incur three dollars of lia
bility for every ono dollar of capital stock actually paid
into the bank. Our people seem generally to under-
stand the law of our bank cliartcrs to be that the bank
must at all times have in its vaults one dollar in specie
for every three dollars of its liabilities. This is a
great error. The law of tho charters does reqmrc that
the liabilities of the bank shall not exceed three dol
lars for every ono of capital stock paid in, bat it docs
not require that it shall be kept in tho bank. I refer
to the nteral construction of the law, and tho ono prac
ticed upon by tho banks. The stock may be paid in
n specie, and the banker may issue three paper dollars
i pon every silver dollar so paid in, and the next week
be may tabs out the silver dollar so paid in, and may
use it in shaving notes or iu other speculations; and
while he is making twenty-five, thirty or thirty-five per
cent, upon tho three paper dollars, based upon tho one
silver dollar, supposed by the peoplo to bo in the vaults
of the bank all the time for tho redemption of the bills,
he has probably made ten or fifteen percent, upon tho
silver dollar tatsn out of tho vaults, and used in specu
lation ; making the wholo profits, which, without a
violation of tho letter of his charter, tho banker may
have received for tho uso of his dollar one year from
thirty to fifty per cent., while the laboring man, with
out banking privileges, is permitted by law to receive
only seven per cent, for the nse of his dollar for a simi
lar length of time. Is this justice? Is it right ? I
deny that it is right to give to a honk, or to any other
corporation, such unreasonable and almost unlimited
privileges. It may bo said that the banks do not issue
three for one, and that they do not oil make the profits
above described. This may be true. I speak of their
privileges, and what, under their charters, they may
do, and what, it is believed, is often approximated if
not exceeded in practice. He who will read their char
ters and observe their practical operations, will, I doubt
not, admit that the above is no exaggerated statement
of the workings of that legalized system of speculation,
oppression and wrong, dignified by our law with tho
namo of banking.
The question arises here, what consideration havo
the banks given, or promised to give the people, for
these valuable, exclusive privileges? Tho answer is,
they have pledged themselves to fnrnish a paper cur
rency, at all times sound and convortahle into specie
on demand, without regard to the price the specie may
cost them when needed, or the sacrifice which they
may have to make to procure it. The privilege of loan
ing their own notes as money at par, and of receiving
interest— compound interest—nnd even usury, under
the mine of exchange, upon them, often euablcs them
in times of prosperity to amass largo fortunes; and in
consideration of these advantages, is it not their imper
ative duty, in times of adversity, to abide by their part
of tho contract, and to procure specie to redeem their
bills t.t par, and thereby afTord relief to tho people, no
matter wbat it may cost them ? After having enjoyed
these advantages, is it right that they lie permitted,
when the pressure comes, to suspend, close their doors,
retire into their splendid mansions, lock up their spe
cie in their vaults, let their own bills depreciate, buy
them up through their brokers at a heavy discount,
causing distress and actual suffering to many a poor
debtor's family ? nnd when the storm is past, step forth
in the sunshine of their own prosperity, with enlarged
wealth, while they cooly survey the ruin which, by
tbeir speculations sod their bad faith, they have scat
tered all around. I deny that this is right.
Spccio is now worth a small premium in tho North
ern mnrkct. Bv paying this, our banks can purchase
ei:. I.gli will, which lo redeem all their hills, mid can
resume specie payment immediately. This would re
store public confidence, stop the decline in the price of
cotton, which has already fallen trom seventeen cents
down to ten or eleven cents per pound, since the banks
have suspended, and which will continue to fall, unless
they resume, and would also restore contentment, pros
perity and happiness among our people. The banks
refuse to do tins, because it tvonld cost them some sac
rifice, nnd rather than mako this, they prefer to let their
bills depreciate in tho market This causes our people,
who livo remote from banks and cities, and who are
occasionally forced, lo obtain specie, to pay as high as
ten per cent discount on the bank bills to get the coin;
but if tho banks are forced lo resume, this sacrifice on
the part of the people will ho longer necessary. Why
do the banks refuse to resume? Tho answer is, sim
ply because it is to their intorest to keep up the panic,
drive down tho price of cotton and every kind of prop
erty to the lowest price, then grasp it into their own
hands, and thus grow richer upon the misfortunes
of others, produced by them for the purpose of specu
lation.
I nllirm that onr banka which havo suspended nnd
ao continue, nro guilty of a high commercial, moral and
legal crime, of a commercial crime, becauso they have
brought the present crisis upon tho people, for selfish
purposes, when there was no great necessity, and when
by spending a few thousand dollars of their immenso
profits in the purchaso of specie, the suspension could
easily havo been avoided. By refusing to do this, they
have destroyed public confidence, deranged commerce,
caused cur great staplo to fall several cents in th
pound, by which our planters linve sustained a loss of
several millions of dollars, nnd tho value of property
throughout tho State has greatly depreciated. Tho
credit of tho State abroad lias been injured, while gen
eral distrust nnd depression has been the result. They
have boon guilty of a moral crime, by violating their
contract with the people in refusing to meet their sol
emn promises, when they acknowledge—nay, even
b.msi of their ability to do so, thereby Going the gross
est iiijustico to tho laboring masses who have confided
m them and been deceived by them. They have been
guilty °- 11 “g-d crime, by Wilfully and knowingly vio
lating and soiling at open defiance a positive statute of
the State, making the price of onr property, thopriceof
labor, the happiness and welfare of the people and Ihe
law of the Slate all bend to their interest. They ara
governed solely by their interest and it is theiriniorest
in times of prosperity to expand and extend their cir
culation, raise the price of property, stimulate a spirit
of * peculation, and involve ihe country iu the r debt as
much as possible. In times of adversity when every
man not a banker is obliged to redeem his promises,
no matter how much sacrilice it may cost him, tho
banks refuse to moot their obligations because specie is
worth a premium in the mnrket, and they are not will
ing to make a sacrifice of some of their large profits to
get it to redeem their bills. They therefore impend
till the pressure is over. They demand Gold ana Sil
ver or its equivalent from those indebted to them, nnd
sell their property no matter how groat a sacrifice if it
is not paid. And if the property goes nt a milieus sac
rifice, they will increase llieir speculation by appointing
i'-li 10 k"y.it for them. Jn the mean time if the
b 1 "holder, who is t.’itie creditor presents their depreciat
ed bills at the counter and demands specie, stating that
ho has labored for the bills und has received them at
l ,ar i*s money. That^tho purchased property when
property was high owing to the bank expansions, and
in this way involved himself in debt. That owing
now to the haute contractions property has falter, (ill it
takes twice ns much to pay his debts, us it did a few
months ngo. I lint his proiierty is about to be sacrific
ed and that he cannot pay in bank bills without u sneri-
bee ot five, ten nr twenty per cent discount upon them.
The Banker refuses to redeem the bills, and turnin'”
away calmly replies, H'e hare eu-ntnisi. The cons.?
ouence is the hillheider bus to make the sacrifice which
the Linker had premised to make, and ought to make
hut will not make, and pay live, ten or twenty per cent!
discount on the bills of the bank to get the specie. If
any one proposes to compel the banker to comply with
hta contract uud redeem tho bills or forfeit his charter,
it is at once said that this course will ruin the country,
as the banker w ill be offended and will refuse to let out
any more of his depreciated bills if forced to keep his
promise to redeem those now in circulalirn.
bunco the establishment of onr banking system in
Georgia tho country has already passed through two
or three periods of distress of the character aboro de
scribed. These havo been periods of (peculation by
the Banks, and they have amassed fortunes, while the
people, tho laboring masses, havo borne the loss. In
each of those periods the apology has been mndo for
tho Banks that they were obliged to suspend. This
may have been true at tho time, but tho blnmo lay be
hind this. They wero not obliged to havo indulged
in those wild speculations, which caused them to ex
pand their paper circulation beyond their ability to re
deem their promises,and in this way to have produced
the state of things which obliged them to suspend
whenever payment was demanded. The Merchant by
a course of hi<”h living nnd over-trading involves bim-
sclfin debt beyond his ability to pay, and closes doors,
or in bank pbraso suspends. IIo receives but little
public sympathy. A!1 ngreo in condemning his courso
of extravoganco nnd tolly. He is blamed not so much
for closing doors, ns the courso of cxtravaganco which
involved him In too necessity of closing doors. Our
hanks in this caso were under no such necessity.—
They suspended ns a speculation. In 1840 while tho
peoplo were paying through ono of those periods of
distress, above alluded to, they determined to protect
themselves If possible against such a stato of things in
future. And through their representativestbey passed
a law requiring tho banks which had suspended to re
sumo specie payment within less than two months nf-
ter tho passago of the Act And requiring all the
Banks of this State in future to redeem all their lia
bilities in specie on demand or presentation ; while
forfeiture of tho charter was provided as the penalty
for a violation of tho law. The peoplo relying upon
this plain statute as well as tho common law which
takes away tho charter of a corporation which abuses
tho trust rind palpably violates tho contract upon which
tho charter was obtained, supposed they wero seenro
against future bank suspensions. On account of the
value of their corporate privileges, it was believed that
motives of interest would prompt the Banks to make
oat of their large gains a sacrifice, if need be, sufficient
to enable them to procure the specie and redeem their
bills to save their charters. It was not then believed
that the banks would have the power to violate tho law
with impunity, and to dictate the terms of their own
pardon. Since the passage of the act of 1840 the num
ber of banks and the amount of banking capital in the
Stato havo greatly increased. As their number and
capital have increased, their power in the State and
their influence over the legislation of the country havo
increased. Who has not observed within the lost few
years the increasing influence of onr wealthy corpora
tions over onr legislature ? When their interest is at
stake, outside pressuro becomes very strong upon the
law-making power and is too sensibly felt With this
state of things existing in Georgia tho recent bank sus
pension occurred in Now York. This naturally caused
a pressure in Georgia, owing to our commercial con
nections with New York, and made it necessary for
onr banks to suspend, or make a considerable sacrifice
to get the specie to meet the run likeiy to be made up
on them. The banks at this time claimed and still
claim to be entirely solvent, with large amounts of
gold {in tbeir vaults. Several millions of gold have
been shipped into the country during the present sus
pension which could havo been purchased by our
banks for a few per cent premium, ft is acknowledg
ed that their profits for tho past few years have been
large. It became a question therefore whether they
would make tho sacrifice necessary to enable them to
get the gold and redeem their bills, or—whether they
would suspend, let the loss caused by tho depreciation
of their bills foil upon the people, and rely upon their
l>ower to set at open defiance the law forfeiting their
charters, and even to compel its repeal till such time
as may suit their convenience. They chose the latter
alternative and it is stud that many of them have sus
pended. In this state of things they appear before the
legistatnro not prepared even to grant terms to the
people, much less to ask any from them. They refuse
to submit to any restrictions upon their former char
tered privileges, or to give any assurances that the
country shall be protected against the recurrence of
such a stale of things in future. They demand on un
conditional pardon in tho form of an Act to legalize
their illegal act of suspension, till such time as it may
suit their convenience to resume. They accompany
this demand with tho threat that they have the power
and the will to do the people a great injury if au at
tempt should be made to exeento tho law which they
have knowingly and wilfully violated. This issue is
boldly tendered, and tho question mode, shall the
banks govern the people or shall the people govern tho
banks? Shall the law bo executed or shall it bo set at
open and unconditional defiance ? shall only the poor
and the weak be compelled to obey it wbilo tho rich
ond the powerful are permitted tojdisrcgard it at pleas
ure ? In sny opinion the richest corporation should
be compelled to obey tho law, as promptly and implic
itly as the humblest citizen in the State. Whilo I have
tho responsibility of its execution I am determined to
know no man or association ol men, and that all shall
bow to the authority of tho law without regard to the
wealth, power or influence which they may possess.—
None are so high that they shall bo permitted to place
themselves above the law: And if the proper case is
made bp proof so as to authorize mo to act, 1 shall or
der proceedings against the wealthiest bank, or other
chartered monopoly in Georgia, as soon as I will
against the humblest individual who has disregarded
and violated tho law. It (is claimed by .their friends
that onr banks are well managed, bnt that tbo suspen
sion was unavoidable after tno Northern banks sus
pended, and that any other courso would have ruined
the people. How is it, if this be true, that nine of the
Booth Carolina banks, most of the Alabama banks, all
of the Kentucky banks, all the Louisiana banks and
four or fire of the Georgia banks havo stood the shock,
and are still redeeming their bills in specie ? And why
are not the people of Louisiana cr Kentucky ruined ?
It is a little remarkable that that tuoso Banks in Geor
gia, which have not suspended hare been persecuted
as “ Wild Cats,” by tho friends of the very banks which
have suspended. It is thought to bo very unpardon
able for any one to doubt the solvency or good conduct
of any of the banks of Augusta or Savannah or any
of their numerous ngencies. While they wishing
to monopolize the business in Georgia, feel at per
fect liberty to make war upon the interior or country
banks.
■ There is a clause in the Constitution of Louisiana
denying tho Legislature the power, directly, or indirec
tly, to pass any law to legalize a bank suspension. The
conseqncnce has been that none of their banks have
suspended. They preferred to make the sacrifice, get
the gold, redeem their bills, and savw their charters.—
Had there been a similar clause in our Constitution, it
is believed that onr solvent banks would have come to
a different conclusion, as to the necessity of the sus
pension. But it was said before the Northern Banks
resumed that onr banks were obliged to suspend to
keep the Merchants and banks of the North from draw
ing all the specie ont of their vaults. This argument
was more plausible than real. They havo not enough
of our bills to enable them seriously to injure us in
this way. They can only get our bills to tho extent
that our Southern Merchants pay promptly without
suit They do not nil do this. If our banks continue
specio payment” the Northern Merchant must pay
specie or its equivalent for our bills, if they get a lar
ger amount than they receive from the prompt paying
class of Southern Merchants. They make none of tho
necessaries of life which wo are obligoi to have, while
they aro obliged to havo onr sugar rico and cotton,
more especially our cotton. If they do not get it, their
factories must stop and thousands of their poor opera
tives must be thrown out of employment.
Cotton will command sp-erie or ils equivalent. Our
banks control the cotton trade, and if tho people of the
North run upoD them with their bills for specie, they
have only to require sj-eeie for the cotton and bring it
back. It is nut therefore the interest of the Northern
people to enter into a warfare about specie with the
Southern banks. Since the Northern banks have re
sumed, the tone has changed, and our banks say that
the fact that the Northern bonks bare resumed, makes
it more difficult for them to resume. They were in
sincere then, or they arc insincere now.
It is further alledgod that our banks suspended in
obediyncc to resolutions passed by public meetings
held in Augusta nnd Savannah. 1 will not stop to in
quire how many bank directors cr stockholders or how
many persons indebted to the banks and otherwise,
under their influence or control composed those meet
ings, or how difficult it may be,(or rather may not ho,
for those most interested to get up meetings of this
character, by producing a panic and calling the meet
ing in the midst of the excitement. I might inquire
in how many counties of this Stato outside of the im
mediate influence of the banks such meetings were
luld. Again, it is said Ihe suspension was for the
benefit ot tho people. Tocydid not seem to have an
ticipated the danger, and have not naked for tho re
lief. Before the banks suspended the people could pass
their hills at par, since tho snspension in many ofthe
coantics most remote from the hanks, they are having
to pay ten per cent to get specio for their bank bills.
This is a relief that the people of liie agricultural por
tions of the State bare, not asked for by public meet
ings or otherwise.
They did not ask to he roliovod of ono tenth of tho
wholo value of their property, nnd they will bo a lit
tle hard to convince that they aro benefited by the
operation. The. farmer sold lxis produce for ono
hundred dollars in hank lulls, which before tho
banks suspended were worth to him ono hundred
dollars in gold. Sioce tho banks havo suspended
tho hills aro only worth ninety dollars in gold. He
has lost ten dollars by tho suspension. Tho argu
ment to convince Jura that it is for his hem-fit may
ho alilo and ingenions, displaying much learning and
oloqnencc, to which ho will probably reply “lieforo
tho banks suspended I had ono hundred dollars, I
havo spent nono and sinco tho hanks havo suspend
ed I havo oDly ninety dollars: I understand tho fig
ures hut do not sco tho benefit.’’ It is again claimed
that tho suspension was neecessary to onablo tho
banks to furnish their bills to tho cotton buyer to
purchase the prosent crop ; that tho crop coulu not
otherwisi be sold and that it would not bo possiblo
to get it to market if tho banks wero compelled to
resumo specio payment. This argument will not
bear examination. Gotton is worth in Liverpool 15
to 17 cents per pound in gold; it is therefore worth
in Georgia just ns much in gold after deducting the
cost of transportation and insuranco to Liverpool.
Tho manufacturers need thocotton.
They havo tho gold to givo for it. Wo havo tho
cotton and want tho gold.
There are ships plenty and tlic-ir owners want tho
freight. If then, wero not a hank in Georgia our
cotton would still find its way to market. And if wo
would net tako the depreciated bills of suspended
hanks for it, wo should soon get gold for it. It is
true this would cause soino delay, and would ho to
somo extent injurious, bnt not so injurious to tho
planters who are gen (-rally hut little in debt, and
who aro not forced tn sell as it would bo to those spec
ulators, who have HO long lived and oven grown
rich upon tho labors of tho planters, who when they
cay that ascertain measure will ruin tho country,
usually moan that it will injure them. The very do-
lay which speculators say would ruin the country
might lay the foundation for direct trade with iCu-
ropo, cutting us loose commercially from a Stato of
dependence upon tho North, which would bo worth
to tho South half dozen cotton crops. Hut it is not
speculate
sion befo:
true that tho hanks would refuse to furnish their
hills to buy cotton with if forced to resume specio
payment immediately: tlioy would in this las they
always are in all other cases) bo governed by tlieir
own interest. And their interest is to furnish their
hills to buy tbo cotton if tho planters will tako their
bills for it. They furnish - "! their hills to tho cotton
buyer at legal interest and probably ono or two per
cent a month exchange (usury) making fifteen or
twenty per cent interest. Tho cotton buyer, tho
friend and probably tho agent of tho hanks, deducts
this out of tho prico of tho cotton and tho planter
loses it. Tho buyer ships tho cotton and turns over
tho bill of lading to tho Bank of which ho got tho bills.
Tho hank controls tho cotton, orders it sold and in
thirty or sixty days lias tho gold, or sterling exchnngo
as good as gold in its vaults in place of tho bills. In
this way the I, mb net only ma ces a l.irg- p-r nt
upon its hills hut replenishes its vaults with specio
iu;their place. And if tho hank is redeeming its hills
in specio so as to deserve publio confidence, tho bills
may not bo returned for months by tho planter to
demand tho specie. But tho bank makes sufficient
profit by tno transaction to justify it in paying tho
nocossary premium to got the gold, to redeem them
immediately if required. Thoro is therefore
foundation in fact for tho alarm that tho planter
conld not coll his cotton, should the hanks bo forced
to redeem their bills in specio, or in other words ho
forcod liko individuals to act in good faith and pay
according to their promise. But it may bo said that
this may causo a decline iu tho prico of cotton.
Without admitting the fact it is a sullicent reply that
tho planter can adord to “tako a smaller nominal
prico, if ho gets gold or hank hills convertahlo into
gold on demand, than ho can tako in suspended hank
bills, at a heavy discount. And ho will make money
by tho operation.
When it is claimed that tho banks cannot let out
their hills to buy cotton unless they aro permitted to
suspend, this if truo is an admission that they linvo
not tho means at present to redeem tho hills now out
in tho hands of the planters nnd others, and as they
are not able to pay tlieir debts already contracted ac
cording to promise, it is gravely proposed as a re
medy to let them contract more debts and get tho
products of tho country with their promises to pay,
as they havo not tho means with which to pay, and
let them in this way make tho money ont of the spec
ulation, which tlioy mako npon tho plantor’s cotton,
with which to pay tho planter at somo future day.
For this pnrposo it is proposed to givo them the priv
ilege to suspend till tho 15th day of November next.
This, it is said, will prevent a pressure, as the banks
will let out their bills freely during the suspension
and they cannot dnring that timo bo called on to re
deem them. This is but a temporary relief. It is
like giving to tho patient an opiate to lull tho pain
tor tho present, without doing anything to eradicate
tho disease from tho system. When the opiate pass
es off, tho patient is no better, but a iittfo weaker.
At tho end of tho proposed suspension the banks in
order to resnmo specie payment, must contract their
circulation and restrict their issues. In this way we
havo put away the evil day a few montlis longer, but
it must soon come, and come when wo may not havo
as great an abundance of produco in the country,
and when we may be much less able to meet it.
Better meet it at once, and pass through it as fast
as possible.
The bill proposes to legalize tho snspension till 15th
November next This gives the suspended banks
time to ask tho samo members of tho samo Legisla
ture who now legalize iho suspension, to grant still
further time if the banks havo not completed their
illations, as the legislature will again be in ses-
* 'ore that time. This is quite prudent in tho
It may bo said in reply to this, tho bill pro
vides that upon proof being made to the Governor,
that there has been a general resumption of specio
payments by banks oat of the Stato of Georgia, then
the Governor may by proclamation require tho banka
to resnmo within thirty days. Tho banks havo been
ingenious in framing this (proviso. What is meant
by a general resumption of specio payments by tho
banks out of Georgia ? All tno banks of tho United
States, of England, Franco and tho world oxcopt tho
Georgia Banks, aro 'banks out of Georgia.’ Sup
pose the newspapers and merchants say they have
generally resumed ? How long will it tako tho Gov
ernor to get up tho legal proof of this ? Probably as
long a timo as tho banks want. Tho New York
banks and a number of other northern banks havo
already resumed specie paymont. If tho hanks in
tend to deal fairly with tho peoplo, why set I5th No
vember next, as tho time forthem to resnmo in Geor
gia 7 Tho bill further provides that no bank shall
chargo more than ono per cent upon any hill of ex-1
change to whicha proviso is attached, that this shal
havo no reference to foreign oxchange. This then
leaves tho banks to chargo as much as they pleaso
for foreign exchange (exchange ont of tho State,)
while it legalizes ono per cent on inland exchange.
The banks do not discount notes. They will only
sell exchange on their agencies, for instanco at ono
per cent in addition to tho legal interest or discount.
This may bo equivalent to more than 20 per cent por
annum on each paper dollar or noto of tho hank.
Tho bill is therefore a boon to tho banks. They
would deal only in oxchange and thereby realizo
theso largo profits, and they would point to this act
as tlieir legal authority for so doing. Tho act pro
hibits thorn from discounting notes or loaning money
in any way at more than seven per cent, while it
makes it legal for them to sell exchange in suc.h -i
way as to realize 20 per cent- or more. Under this
act no borrower could get a noto discounted. But
ho could get tho money if ho would givo tho per
cent by purchasing it on a bill of exchange in Savan
nah or Macon. This not only legalizes suspension,
but legalizes tho most exorbitant usury: under the
E retext of protecting tho peoplo against bank usury,
at tbo bill givos tho banks the right to chargo about
as much usury as they please., Tho bill authorize
tho suspended banks to declare seven per cent divi
(lend whilo in a stato of suspension, whilo a proposi
tion that tho banks pay seven per cent interest upon
their bills in circulation during tho suspension was
promptly voted down. This would havo been com
pelling tho banks to do justice to tho poople. This
they would not endnro. Ono other provision of tho
act is hold ont as a boon to the people. That is that
tho bank failing to redeem Us bills on demand shall
pay seven per cent interest and ten per cent dama
ges if sued to judgment. This is tho law now and
tho banks havo made no concession in this, aud it
is worth nothing in practice.—Tho wholo hill is art
fully drawn and well calculated to deceive.
But an appeal is made by tho friends of tho banks
as a last desperate resort, to the fears of tho people,
nnd it is said that tho banks owe the peoplo only
85,000,000, or in other words havo only that amount
of circulation, nnd that tho peoplo owe tho banks
822,000,000, over four times as much as tho bonks
owo tho peoplo. Ifthis be so, it is a most conclusive
argnment against tbo banks and shows how loarful
an error has been committed by our Legislature in
fostering a system which is centering the wholo
wealth of tho country in the hands of a purso proud
aristocracy built up and snstained by tho laboring
masses. Have tho banks obtained this immense ad
vantage over tho people by labor and fair dealing?
Havo tho bankers labored with their hands T culti
vated tlio soil, produced a hlado of grass, or a stalk
of wheat, corn or cotton? They livo in princely style
on thoTabor of the peoplo and instead of falling in
debt to tho people for nil tho abuudanco of the peo-
E le’a products which theyuso, they are enabled to
ring tho r-ooplo out in their debt between four and
and five times as much as thoy aro indebted to the
people. With theso immenso advantages, and largo
resources at their command, tho gifts of tho people
to them—should they have suspended rathorjthan pay
a few por cent premium to get gold nnd redeem their
hills 7 Tho gold has been shipped from Europe to
our shores for sale. What excuse can they givo for
having refused to pay tho premium for it, and with
it redeem their bills 7 They should, havo dono this
out of their surplus incomes without any additional
burden on tho peoplo.
But is it truo that tho peoplo owo tho Banks 822,-
000,000, nnd tho Banks only owe tho peoplo 85,000,-
000 7 If it is truo, tho Presidents and Cashiers of
the Banks of Georgia have not so stated under onth.
Tho returns made to this otfice, in obedience to the
last call made npon tho Hanks, by tho Executive, to
return their condition under oath as required by tho
statute, show that the assets of tho banks including
notes discounted, bills of exchange and all other as
sets ont tho one hand; and the liabilities of tho
banks, including hills in circulation, deposits mndo
with them, and all liabilities on tho other hand pre
cisely balance to a quarter of a cent. And I may
say that it is a little remarkable that these sworn re
turns made twice a yoar, by each bank, and mado
for a day in tho past, set by tho Exocutivo, should
in overy case show )an exact balance between tho
assets and liabilities of tho banks. I will not say
that any of them nro untrue, bnt I will say that it
shows a remarkable precision iu the transaction of
their business, that they should keep an exact bal
ance sheet, never varying a quarter of a cont, when
the assets and liabilities amount to hundreds of
thousands of dollars. If it is said that tlieir modo
of book keeping is such that tho accounts must noc-
essarily balance, I may reply that the object of the
statute was to require that their returns should fur
nish the people with a correct and simple statement
of their truo standing, nnd t.ot with an exhibition of
their skill in book keeping. There is n mistake
sommvliere; tho statement as to tho amount of tho
people’s liability to tho banks is incorrect, or their
sworn returns aro not easily explained. I leave tho
banks to reconcilei it. If it is attempted to ho <I«no
l>y saying that tho hanks have a reserved fund which
thoy aro afraid for the people to know that thoy
havo mado, tho reply is that this is a part of tho as
sets of tho banks; nnd should bo remembered when
a return is mado on oath.
If thoy reply that a largo proportion of their lia
bilities consists of their capital stock, I reply that a
largo proportion of tho indebtedness to them consists
of (loots duo them from their own stockholders and
directors. Whilo thojr aro extorting much from tho
peoplo every year, no such difference of indebted
ness ns that claimed exists between them and tho
peoplo, outride of their own stockholders and direc
tors.
If tho suspension of tho hanks is legalized itfean-
not bo deuiod that tiio banks havo triumphed over
Iho peoplo and set tho law at defiance. They havo
mado ntonco tho interest upon tho wholo amonnt of
their circulation, for tho entire period of tho sus
pension. They reeoive interest upon all tlioir hills,
they pay no interest sad cannot he competed to re
deem their bills. It is no reply to say that thoy may
bo sued and compelled to pay interest after protest,
and ten per cent, damages. Tho hills aro scattered
all over tho Stato iu the hands of the peoplo in smnll
sums, and not ono iu fifty has tin amount of tho bills
any (UK- hank large ( niuigli tc justify him in cm
ploying a lawyer in Augusta or Savannah and stand
ing a suit with tlio bank. Better givo up tho debt
iu many cases than incur tho expense, trouble, and
delay. Legalize tho snspension and the bills still
farther depreciate, property fall lower anil cxcliango
ri.-e higher. The country lias no currency but de
preciated bills (for thu Lanka will lock up all tho
goni and silver in tlieir vaults,I aud wo have no
means of determining which banks nro solvent and
which insolvent. At tho timo set for them to re
sume, the insolvent batiks would bo unablo to do so.
would if they were wound up now before they have
timo to increase the circulation of their worthless
bills. If they are not good tho sooner the test is
made nnd tho fact known, tho bettor for us all. If
thoy nro good they can liuv gold and resume specio
payment. If they do not, let tlieir charters ho for
feitod.
In reply to all that has been remarked about banks
and hank suspensions, It may be said that tho fault
is in tho system aud not in tho present abuse. While
tho existc-nco of tho abuse is not doubted tho injus
tice of tho system is readily admitted. Most men
ngreo that wo havo erred in granting to our hanking
institutions privileges so unjust to tho peoplo nnd so
subject to abuse. But those become vested rights
and cannot when given bo recalled, however injuri
ous to tho community, till thoy havo expired by Iimi
tatiou of the timo fixed in tho charters, unless thoy
are forfeited by somo violation of tho contract npon
which tho charter wa3 obtainod. If thoy are so much
abused as to amount to a forfeiture of tlio charters,
thoy may bo entirely abrogated and tho legislature
may ro-cliartcr tlic-m upon such terms ns it may pro
scribe. If the privileges conferred upon our banks
in their charters aro dangerous to tho best interest of
tho State, anil nro subject to much abuse, and if tlio
banks havo suspended specio paymont aud forfeited
thoso privileges, it is my deliberate judgment that
no act should be passou relieving them from tho
forfeiture, without imposing upon them such res
trictions, by amendment of their charters, as will nt
ford somo protection to tho peoplo against a recur
rence of snch a stato of things in future. Lot their
charters bo so amended as to prohibit them, os in
tho caso of Louisiana, whore tlio banks havo not sus
pended, from issuing hills or incurring liabilities ovar
threo dollars for every ono dollar of specie in tlio
vault! of tho hanks, and to prohibit them Irom using
tho proceeds of tho bills of exchange nnd discounted
notes, upon which tho balance of tlieir circulation is
based, iu shaving notes out of tho Stato, or in any
other way except In tho redemption of their bills.—
Compel them also to redeem all their small notes now
in circulation in gold and silver, nnd let them be pro
hibited from putting into circulation at the first day
of January, 1858, any bill under tho denomination
of fivo dollars. After tho first of January, 1859, any
hill under ten dollars, and after tlio first of January,
1-on, am- Bill under twenty dollars. This wmiiil
throw specio in place of small hills into circulation
among all our poople, in all tho smaller class of ba-
sim - - tr.n.s-icliuns, ami would tlie-rchy enable tie-
country to stand a commercial crisis with much less
inconvenience. Let them also bo prohibited from
charging usury under tho namo of exchange on all
inland transactions, prohibiting them as individuals
aro prohibited from receiving more than seven per
cent, interest upon tho sums actually loaned. This
would convert them hack from shaving shops to
banks again ; and they would probably do a more
legitimate hanking business. There would then be
no inducement to turn away from tho planter and
refuse to discount his note, however good, becauso
thoy could get more usury from tho speculator. Let
those and such other restrictions us may be consid
ered wise he engrafted upon their charters. And
let tho penalty of a violation ho an immediate for
feiture of tho charter, and it is believed that we
would have a better system. To this add a sub
treasury system for tho Stato, such as now prevails
in the United States, nnd let all collections mado by
the State, and alldebts paid by her bo in gold and
silver. This would keep a sufficient amount of spe
cie out of tlio banks in tho Stato Treasury nnd in the
pockets of the people greatly to lessen tho shock,
nnd afford much relief in case of a future commer
cial crisis resulting even in bank snspension. As
gold and silver would form a considerable part of tho
circulation, a bank snspension could only depreeiato
tho paper portion of tho circulation, and not tho
whole circnlation. But aside from any objections to
tlio bill on the score of justice and public policy
there aro, to my mind, gravo doubts as to tho con
stitutionality. Tho Constitution of tho United States
prohibits any State from passing any law •• impairing
the obligation of contracts.” Tlio contract between
tho bauk and tlio hill-holder is that tho bonk shall
redeem its bills in gold or silver promptly on demand
or presentation. As tho hills aro to circulate as mon
ey tho utmost promptness and good faith is under
stood by tho parties to ontor into the contract and
oven to bocome a part of tho very essence of tlio con
tract. The charter of tho bank hi granted by the
State, nnd in addition to tho other civil remedies by
suit, Ac., tho act of 1840 has enacted that tho charter
of tho hank shall ho forfeitod on failure to redeem
tho bills, upon demand or presentation, and subse
quent provision is mndo for tho appointment of a
Koceiver to tako chargo of tlio assets, convert them
into money and pay the debts of tho bank. Tho
rights of tne bill-holder nro not therefore by tho con
tract limited by his right to suo, Ac., but they also
embrace the right to havo tho charter forfeited, nnd
the assets oftho hank placed in tho hands of a Re
ceiver for tho better security of tho hill-holder. By
tho act of 1840 the Legislature has put thi3 distinct
construction npon tho contract ot the banks under
their respective characters. Tho act shows conclu
sively that tho view taken by tlio Legislature of tho
contract oftho banks was that tlioy were to rodoom
their bills in gold and silver promptly upon demand
or presentation, and that upon failure to do so tlioir
charters should ho forfeited. Tako from tho hill-
holder this right, to wit: the right to havo tho char
ter forfeited on failure by tho hank to redeem tho
hills in gold and silver promptly on demand or pre
sentation, and you tako from him tho highest pro
tection which under his contract he has, for tho
prompt redemption of tho hills. But why undertlio
act aro tho chartors to be forfeited if the bills aro not
so redeemed by the bauk promptly 7 Becauso tho
banks havo failed to comply with tlieir contract. If
it was not tlio contract to * redeem their bills upon
demand or presentation in gold and silver, upon what
principle was the charter to bo forfeited 7 Surely
it was not intended by tho legislature to forfeit tlieir
charters unless thoy had violated their contract under
their charter. What did tho legislature consider
such a violation otconlract t Tho failure or refusal
to redeem their liabilities in gold and silver upon
demand or presentation. No other causo or reason is
assigned for a forfeiture of their charters iu the act
ofieto.
[ Tlio hill-holders had then the remedy by suit or ac
tion against tho hanks, hut tlieir charters wero not
to ho torfeited in case thoy refused to redeem their
liabilities in gold and silver after suit brought and
judgment rendered against them, but tho charters
were to bo forfeited in caso thoy refosod to redeem
their liabilities in gold or silver upon demand or pre
sentation—why7 simply because it was their contract
that they would do so, and the act of 1840, required
them to comply with that contract "promptly," or
their charters should ho forfeited and their assets
placed in the hands of a Receiver for tho payment
of their dobts according to tho provisions of tho act
of 1842. If it is manifestly apparent that it is tho
ntract of tho banks to redeem their liabilities in
gold or silver upon demand or presentation and a
failure to do so in such a breach of their contract as
to authorizo a forfeiture of their charters it is ex
tremely difficult to perceive how the legislature can
by tho enactmont of a statute to operate prospective
ly deprivo tho hill-holder of tho rights and remedies
which ho had under that contract withont impairing
its obligations, Tho most valuable and effective
means which the bill-holder had for tho security of
his rights under tho contract and which may havo
been his strongest inducement to mako tho contract,
are thus taken away and to that extent at least tho
obligation of tho contract is impaired by the pro
posed act of tho legislature, and if so to that extent
he act if passed would bo in violation of Iho con
stitution and void. Upon this constitutional ques
tion Judge Washington of tho Supremo Court of
the United States in tho case Dartmouth College vs.
Woodward, says: “ In short does not every altera
tion of a contract however unimportant, oven though
it be manifestly lor tho interest,of tho party objec
ting to it impair its obligation.” Judgo Story in his
commentaries on tho Constitution, vol. 2, section
1385, uses this language: “In tho next place what
may probably be deemed imparing tlio obligation of
contracts in the sense of tlio constitution 7 It is
perfectly clear that any law which enlarges, abridges
or in any manner changes the intention of the parties,
resulting from the stipulations in tlio contract, neces
sarily impairs it. The manner or degree in which
this chargo is effected, can in no respect influcnco
tho conclusion ; for whether tho law affect tho vali
dity, the construction, tho duration, tho discharge,
or tho evidoneo of tho contract it impairs its obliga
tion, thonght it may not do so to tho same oxtent in
all tho supposed cases. Any deviation from its terms
by postponing or accelerating the period of its per
formance which it prescribes: imposing conditions
not expressed in tho contract, or dispensing with tho
jorformanco of thoso which aro a part of tho con
tract, however minuto or apparently immaterial in
their effects upon it impairs its obligations." Will
any ono deny that tho proposod act postpones the
period of performance prescribed in tlio contract bo-
twoen tho bauk and tlio hill-holder by taking away
from the bill-holder tho right to havo tho charter
forfeited at tho oxpenso of tho Stato, if tho bills aro
not promptly paid upon demand or presentation 7
The period agreed upon or prescribed by tho con
tract for tho redemption of tho hills in gold or silver
is upon demand or presentation. The banks havo
already violated tlio contract by refusing to redeem
their bills upon demand or presentation, aud this act
not only proposes to legalize tlio violation, but to
extend tho period of performance until tlio ICtli day of
November next.
It may bo said tho act is only intonded to suspend
irocoodinga for tho forfeiture of tlio charter oftho
ranks until tho day proposed ; anti not to authorizo
tho hank to rofusu to comply with its contrnct.to ro-
deem its hills iu gold or silver upon demand or pre
sentation-, but tho very act which suspends oxeentivo
hnd judicial proceedings against tlio bauk for tho
timo. necessarily implies a liccnsottotho hank to sus
pend specio paymont for tlio samo timo, anti to re
fuse, to abide by its contract to redeem its bills
promptly upon demand or presentation in gold or sil
ver and thereby iu tlio language of tlio law posljtoncs
tlio period of jicrformancc and impairs tho obligation
of tho contract. I feel it to ho a duty I owo to ,tho
peoplo of Georgia to do all in ray power to avert tho
evils which would fellow the passage of an act legal
izing tho suspension of tho hanks. All solvfont hanks
will doubtless sooffresumo specio payment. I shall do
all,’which the.law makes it my duty to do, to havo tho
charters of such as do not resume forfeited, and tlieir
assets placed in tlio bands of Receivers, nnd con
verted into money anil paid to their creditors ns soon
as possiblo. No serious inconvenienco will fellow,
as it is believed most of them arc solvent and will
resumo. Those which nro not solvo.it will bo wound
up, and tlio sooner the better for-tlio poople.
^
During the su;
country zlth |
fall much more heavily upon tho poopio than it
During the suspension tlioy would havo flooded tho
country ltli tlieir hills, and thu failure would then
JOSE i’ll E. BROWN.
Submission of I lie Kansas Constitu-
TION.
St. Louis dates to the 24th say:—Tlio Kansas
Legislature has passed an Act, submitting tho
Constitution to tho people in three forms, without
slavery, aud against the Constitution adopted on
the 6th ; repealed the law authorizing a Constitu
tional Convention ; and passed, over Stanton’s ve
to, tho law for a full militia organization, with one
Major General and eight Brigadiers.
A Bill
To be entitled an Act to provido against the for
feiture of tho several Bank Charters in this
State, on account of non specio payment for a
given timo, and for other purposes therein men
tioned.
Sec. 1st. Bo it enacted by tho Senate and House
of Representatives in General Assembly met, and
it is hereby enacted by tho uuthorityjof tho same,
That tho Act entitled an Act, to compel the sever
al Banks of this Stato to redeem their liabilities in
specie, and to provide for the forfeiture of their
Charters, &c:, passed and assented to tlio 18th De
cember, 1840, bo, and tho same is hereby suspen
ded until tho fifteenth day of November, 1858.
Section 2nd. Bo it further enacted, That when
any Bank or Banks now incorporated, or which
may hereafter bo incorporated in this Stato shall
refuse or fail to pay specie for any of its Bills, notes
or drafts or other writing for which they may be
hound when demanded by an individual or individu
als, they shall be liable to suit thereon in any of tlio
Courts of Equity in this State, and such individuals
in addition to tho principal of said notes, and tho
lawful interest thereon, shall receivo ton per cent
damages, lor such refusal or failure upon the
amount so refused or failed to be redeemed in
specio; and it shall bo tho duty of all Juries in
such cases to find a verdict in favor of the Plaintiff
against such Bank or Banks, for tho principal, in
terest and damages herein beforo provided for, and
all judgements founded thereon shall bo collected
by execution thereon, in specie.
Section 3rd. Bo it enacted by tho authority
aforesaid, That the Governor of this State, be, and
is hereby authorized to withhold all Executivo or
Judicial proceedings against the suspended specie
paying Banks in this State, until the fifteenth day
of November, 1858, Provided that nothing in this
Act shall bo so construed as to withhold Executive
or Judicial proceedings under andby virtue of said
Act ol 2Stli December 1840, against any Bank in
this State in case of its insolvency, or against any
Bank in the judgment of the Governor, [insolvent]
whose proceedings shall be instituted at onco for
tho protection of tho Bill holders.
Section 4th. Be it enacted by tho authority
aforesaid, That said suspended specio paying Banks
shall on the fifteenth day of November, commence
to redeem all their liabilities on demand, in specie,
by or before that timo and in event that any should
then fail, and in that case, tho Governor shall pro
ceed forthwith to forfeit their Charters, in pursu
ance to said Act of 18th December, 1840, without
further indulgence; Provided, that upon proof
being made to his Excellency, the Governor, that
there has been a general resumption of specie pay
ments by Banks out of tho State of Georgia, then
and in that case it shall be the duty of his Excel
lency the Governor to issue his proclamation re
quiring all tho Banks in this State to resume with
in thirty days after tho date of such proclamation,
and no Bank failing to comply with such procla
mation shall avail itself of the benefits of this act.
Section 6th. Be it enacted by the authority
aforesaid, That should specie payments be required
by any plaintiff in execution from defendant or
defendants during the timo of snspension afore
said, and upon an affidavit being made by said de
fendant or defendants that said demand is made,
and that the specie shall bo paid in discharge of
said execution, then and in that case the Banks
shall pay the specie for tlieir bills owned and held
by said defendants and for that purpose, and iu
case the Banks shall fail or refuse to redeem its
bills when demanded, upon tho terms and condi
tions herein mentioned and specified, it shall be the
duty of the Governor to proceed under the Act of
1840, against all Banks so refusing, to . have their
Charters forfeited by Judicial proceedings.
Section 6th. And bo it further enacted, That all
Chartered Banks and all agents of chartered Banks
in this State, availing themselves of the provisions
of this act shall receive their own bills, notes, or
certificates of deposit inpayment of debts due said
Banks, and that any chartered Bank or its agents,
refusing to receive its own bills, notes or certificates
of deposit, in payment of debts due said Banks,
shall not bo entitled to any of the privileges or
benefits of this act.
Section 7th. And be it further enacted by tho
authority aforesaid, That no Bank in this State
shall be entitled to tho benefits of this act which
shall send any portion of its capital out of tho
same for the purpose of buying notes of any kind.
Section 8th. Be it further enacted, That no
Bank nor Bank agency by itsclfits officers or agents
shall either directly or indirectly loan money or
any note, bill, draft or contract of any.sort verbal
or "written, at ft greater rate of interest than at tlio
rate of seven per cent per annum, nnd only at the
rate for a longer or a shorter time, and all notes,
bills, drafts and contracts of every sort whatever,
on which a greater rate of interest is reserved or
exacted and received or bargained for, are here
by declared to be utterly void and of no effect and
irrecoverable in law.
Section Oth. And bo it further enacted, that no
Bank nor Bank agency shall by itself, its officers
or agents discount or purchase notes, papers or
evidences of debt, made for a valuable considera
tion or a good considdration between tho parties
thereto, ot a higher rate than seven per cent, per
annum, and that all such notes papers and eviden
ces of debt, discounted or purchased in violation
of this act shall from the time of such purchase be
come utterly null and void and irrecoverable in law.
Section 10th. That no Bank or Bank' agency by
itself its officers or agent shall cither directly or
indirectly sell any kind of exchange except sight
exchange, nor exact, demand, ask or receive for
exchange in or out of this State, of any citizen of
this State a greater premium than ono per centum,
on the amount of exchange sold, when the bills of
the Banks from which the exchange is sought to he
obtained are presented at its counter in payment
for said exchange, and for tho violation of this
Section of tills act, the person paying the promiun
his agent, or attorney may and is hereby author
ized to recover threo times the amount of the ex
cess by a summary proceeding, before a Justice of
tho Peace, tho Inferior or Superior Court, as the
one or tho other Court may havo Jurisdiction, and
on which judgment shall ho rendered at the first
Term of tlio Court, unless the principles of Justice
shall require a postponement, for one term and
no longer, and in which case the officer or agent
who received tho premium shall appear without
any other process timn the service of tho writ and
give evidence, in tho Case, and if ho fail to appear,
the affidavit, or evidence of the plaintiff shall bo re
ceived in proof, of the amount demanded, and the
suit shall be against either the Bank whose agent
loaned the money, or against the agent, and either
event, the property of tho Bank shall be subject
to the payment of tho Judgment, provided that
nothing herein contained, shall have any reference
to foreign exchange, and provided further, the per
son applying for the exchange, shall if required,
mako oath, that it is not to resell as exchange.
Sec. lltln The affidavits of Bank officers to
three annual and semi-annual reports shall in all
cases state that the Bank of which they arc officers
has not by itself, its officers, or agents In any par
ticular violated tho provisions of this act.
Sec. 12th. And bo it further enacted; That per
jury may be assigned on affidavits made by Bank
olliccrs and agents to tho reports of tho Bank, and
on trial of the defendant, on an indictment for
perjury, tho said affidavit, and the name of person
signed thereto authorized to administer an oath,
shall be evidence that ho or they wero sworn
thereto.
See. 18th. And be it further enacted, That no
suspended Bank, in this State shall declare n great
er dividend than seven per cent whilo in a state of
suspension.
See. 14th. And be it further enacted, That all
laws militating against this act, bo and tho samo
are hereby repealed.
Queer Story About General Walker.
—According to the New York Times, the se
cret “Junta” to which was confided the ar
rangement for the second invasion of Nicara
gua, having lost confidence in General Walker
as a military leader, had intended to place
Gen. Ilenningsen at the head of the command.
This arrangement was by no means palatable
to the “President of Nicaragua,” who has a
civilian’s passion for tactics and mancevrcs.
Ho therefore pretended to acquiesce in the
plain but when the Fashion was ready for sea,
astutely slipped on hoard and set off, to the
surprise of nobody more than tho “Junta”
aforesaid, and to the chagrin of nobody more
than Gin. Ilenningsen. On the strength of
this aff* : r, the knowing ones in regard to tho
expedition are said to prognosticate its failure.
Why is coffee like an axe with a dull edgo ?
Becauso it requires to bo ground.
Why are our foreign relations like our but
ter vessels 1 Because thoy are our fur-kin.
Canton to bk Captured.—A correspon
dent of the Loudon News, writing from Can
ton, October 17th, says that Lord Elgin has
concerted measures with his Excellency the
naval commander-in-chicf for the assault and
capture of the city of Canton. Tho Admiral
has arranged the whole available forco to move
up to Canton on the 31st of October, and it is
said that the French forces will co-operate;
it is thought the Session Admiral, Pontiatine,
will also offer his aid.
MACON, GkA.,
Tuesday Morning, Dei!. 29, 185\7.
Prof. EeConte Thursday JVigJst!
See, by advertisement, that Prof. LeConto will
Lecture THURSDAY NIGHT beforo tho Young
Men’s Christian Association, on Geology. Wo
need not say that Prof. L. is one of the leading
scientific men in the country, and tho opportunity
to hear him will bo prized by our community. Let
us have a crowded house.
By an extra from tho Brunswick Herald wc learn
that a quarrel took place in a discussion upon tho
Charter election on the 24th, between C. W. Styles,
Esq., and the Hon. Jacob. W. Moore, in which tho
latter was shot and killed.
Tiie Veto Message
Wo reproduce to day, upon threo or four
hours’ working time, and by such an absorp
tion of space and compositorial labor, as to
leave comments out of tho question. It is a ter
riblc onslaught on the Banks. With the Gov
ernor, we would have vetoed that bill—but not
altogether for his reasons. His message is
too much in the style of a vindictive prosecu
ting officer, and the bank property owners in
this Stato wc do not regard, as a class, worse
than other men. The Georgia Banks in the
main arc honorably disposed, and that they do
not actually realize any unusual or exorbi
tant profits is evident enough from tho price
of their stock, which is accessible to every
citizen willing to purchase. Moreover, the
suspension is not chargeable with the decline
in Cotton, nor will resumptio 1 raise it. The
Banks were caught in this financial snap just
as every body else was, and, taken as a whole,
tho Georgia Banks wero not caught in a worse
position. They could have paid through it,
we believe, if they had only thought so; and
wo aro not disposed to charge their suspension
to the account of a criminal recklessness of
their own obligations or an utter indifference
to the rights of others and general public in
terests.
But whatever in the message traces this sus
pension to a radical, inherent vice of the sys
tem—whatever shows how, in consequence of
this vice,’ these suspensions have occurred—
will occur again—must occur, whenever the
people want money and not credit—whatever
displays tho puerility of enacting penalties on
ly to suspend them whenever applicable—
rntjets our hearty concurrence. So also that,
which suggests even a partial displacement of
a false and fictitious circulating medium. But
so long as the State permits corporations to
substitute for a constitutional currency, bank
bills at the rate of three to six for one—so
long as these bank bills become in turn the
standard of all valuations and of all credit op
erations, it is demonstrable that suspension
must follow every general demand for money
—it even anticipates the demand, just as it did
in the crash of 1857. It is a system past reg
ulating—past mending—except as to the mere
extent of the mischief it inflicts.
Is the country to be saddled with it forever ?
Then wc are to have convulsions, contractions
and suspensions forever. But wc say amen
to every suggestion of Gov. Brown, looking
to a gradual abatement and final deliverance.
The people will accord to him a high moral
courage and undoubted integrity of purpose
in the course he has pursued.
The County Elections.
There is no reason to gather discouragement
from the late result in this city, which was due
entirely to local causes. Let the Democracy
Jf the County stand by tho regular candidates,
and they can and will he elected. This is due
the candidates—is duo the party—is tho only I
sound and proper policy for democrats to pur
sue. Let there be union therefore on the reg
ular ticket, and our next issue will tell of a
democratic triumph in Bibb County.
Salaries Increased.
Wc arc glad to sec that a bill increasing the sal
aries of the Governor and Judges of tho Supremo
Court, notwithstanding the previous failure of the
measure in the House, has become a law. It rai
ses the salary of the Governor to $4000; Judges
of tho Supreme Court $3,500 each; Judges of tho
Superior Court $2,500.
Federal Resolutions.
The Senate last Tuesday Laid all the Federal Res
olutions and substitutes on the table by a vote of
52 to 36.
Bibb Cavalry.
This new Company, under command of Col. Bass,
made a gallant display last Wednesday in their
new uniform. It is of blue, faced and trimmed with
red.
From
'IH&ea
REVIEW OF Tup
» e vil| t ,
session-
Douglas Endorsed at Chicago.
Dates from Chicago of tho 19th, say that an en
thusiastic meeting of the Democracy, tho night be
fore, passed resolutions endorsing Mr. Douglas’
courso on the Kansas question. This issignificant.
Chicago has heretofore been heard from in respect
o Senator Douglas, chiefly in the way of indigna
tion meetings, and never had Douglas so warm a
place in the Southern heart, as when his voice was
heard above the hisses, groans and roars, of a
Chicago Indignation meeting, in defence of th c
Kansas Nebraska bill—in vindication of an equal
right of thc South to common territory—in manly
and defiant rebuke of a dominant sectional fanat-
Vote on thc Rank Bill.
Tho following was thc vote in tho House last
Tuesday, upon the passage of the Bank bill “ not
withstanding the veto” Of the Governor :
Yeas—Batts, Bigham, Brantley, Brosacil, Bras,
well, Cannon, Causoy, Christy, Clarke, Coleman
Crittenden, Curenton, Daniel, Darden, Davis of Ma
rion, DeLaraar, Fannin, Frederick, Gilbert, Glass,
Gordon, Griffith, Grovensteine, Hardeman, Haines’
Harris of Cobh, Harris of Dougherty, Harper, Har
rison, Hays, Hillycr, Hines, Holden, Holiday, Holmes,
Howard, Hughes, Irvin, Johnson. Jones, Kenan,
Kimbrough of Stewart, Kitchons, Loo, Lewis of Han
cock, Mattox, McMillia i, McWhorter, Milledgo,
Mintz, Mooro of Clark, Mott, Neal, Owens, Phillips,
I’ittard, Reid, Schloy, Sholtan, Sherman, Sprayborry,
Strange, Taylor, Terrell, Walker of Clarks, West
moreland, White, Wilkes—C8.
Nays—Awtry, Barrett, Black, Boggess, Conley,
Cook, Embry, Fain of Fannin, Fain of Onion, Faulk,
Fincannon, Fottnor, Gay, Hall, Julian, Kirby, Lane,
Luffmon. McAfeo. McOants, McConnell, McEvcr,
Mooro of Glynn, I’ickctt, Prico, Roberts ofCherokoo,
Smith of Coweta, Smith of Towns, Taliaferro, Wob-
stor, Wood, Worluy, Wright—33
New Kausiis Movement.
The Herald Washington correspondence of tho
21st says :
“ An important movement is on foot which ^
promises an easy settlement of tho Kansas agita- . Tho veto by a dcsiro to be known,« ,
tion. It is intended, when the Lccompton consti- . , , . those who J®°* ..
tution comes on, to take it up by the friends of 1 ™ nle * bUt “ ' ^
Getting Back to English.—Wo see tha
a lady, advertising iu a Mississippi paper
spells her namo “Lizzy,” wfth a “y.”
the administration, botli ns a party measure and as
a formal assertion of the democratic principle of
popular sovereignty. Thc constitution will be
passed, with a proviso that it shall be presented to
the people of Kansas for final acceptance and rati
fication. It will not bo thrown out or discussed,
for the proviso of final submission to the people
will silence tho opposition. Whilo it carries tho
great point aimed at by thc administration, it lo
calizes thc Kansas imbroglio, and allows tho Kan
sas people to treat thc question as they may see fit.
There will bo no excuse thereafter for the further
interference of Congress, and no agitators, in or
out of Kansas, can re-hash it into an important na
tional issue. To guard against such a possibility
and to avoid every excuse for a disruption of thc
democratic party, an enabling act will be incorpor
ated in the new bill as an alternative, in case the
Lccompton Convcnton is rejected by thc people of
Kansas. This will provide a safe, direct and un
impeachable modo of framing such a constitution
as thc people of Kansas de.-ire, under the formal
sanction of Congress, and surrounded with all pos
sible constitutional and popular requirements. The
movement is a Southern one.
Miu.KDosva,, tv
Dear Telegraph: Thc General , 2G ’
Stato of Georgia adjourned sine di
night last, about eleven, after ah ^
of forty nine days; having passed
dred bills, most of which havo i w J* Jet ‘ h «ed
Gov. Brown, and are now lawa^of
The beautiful idea conveyed in th ^ ^ I
cca—“Nonut diu vivamus curyj* 0 ^ 018 ]
satis ;” has not been lost sfoht 0 t' v ^ ?ClJ \
tors. They appeared to know that 4 ***
mate of Legislative action is to be d * *
thc days through which their scs ion 9 '" 1 ’ B#Ur, n
cd, but from thc wise and wholes W>aprtlt N
have passed. Bte k»a uj
So let thc General Assembly 0 f , f »
and how stands the account ?
Apnual sessions wifi now be held,
th H tW3 alterat!on “ an improvement ^
1'ho pitiful salaries heretofore paid
or, Supreme and Superior Co urt j Bd °® ^
raised to a sum which will, i n Bome
pensate them for thc faithful and enlist W
charge of their responsible and importf,?^'
A just, discriminating and
been pursued, in tho purchase of the G • h ‘ I
tary Institute, and in providing tunnfe 8 **® 1 L
the maintenance and completion of th" 1 ? 33 f * I
Deaf and Dumb and Blind Asjlums. ™
standa s monuments of tho humane
enlightened philanthropy of Geoigia uS? *
Judicious amendments have beenma3 lU °”
general laws. e toim,
Thc Main Trunk charter has been so h
to secure tho completion of a Bail
Atlantic ports to the Chattahoochee & ° Qo
The “Hiwasce charter,” a measure of d ;;
and liberty to Union, Towns and Rab®
grab ted, with such guards and rcstrictio^
prevent the “chivalry” from entirely destm- W
unjust and partial discrimination.! our ^Jp j
System. “I
Six or eight new counties, a majority of i
the Negro Belt havo been made, and all vitW
cient territory and population to justify J
tion. A resolution offered by Mr. ,
McIntosh, was passed providing f or poS
Governor’s Clarke and Troup, in testimony of A
fidelity, zeal and patriotism in the service of fr!
gia.
A resolution passed thc House - n .-.. w - ia
mittcc to report in regard to a momunrnt ton
lamented William W. Gordon, as an acbovlc'
ment of his devotion to thc inauguration M j c .
pletion of tho Central Railroad. And here Mil
me in an episode. George Gordon, s rc prcn
tativc from Chatham, and about whom so mi
has been written by reporters and letter wrils
during thc present session, is the son oftho c.
tinguished citizen aborc referred to. HeisJSyg
of age, dark eyes and hair, slightly but pi
fully formed, and thc be& debater in the House
He came to Milledgcviile a stranger, bnt he
made troops of friends by his courteous mmu
and uniform gentlemanly deportonut
Mr. Gordon is a ready debater; opeots fa
and fluently, and always uses pure and mncSl
English ; a rare accomplishment in all Lcpaj,
bodies, and especially in thc Georgia Le-ishu,
He is logical, pointed, and occasionally de*i
metaphor,but oftener in facts. Ilia speeches .1
been marked by a thorough acquaintance with.,
question under discussion, and he “ainys
when he is done.” Thc county of Chatham cq
not have selected a gentleman who would iu|
represented her honor and her interests with®
ability and success than George Gordon; but)
don thc digression.
I have alluded to what good things have be]
done—let me mention some schemes which hi]
been defeated, for which the General As
deserves to be commended.
The State Road has not been sold—nor
nor its management token from Gov.
when in his message to the Legislature at its
session, he shall communicate the fact, that
hundred and fifty thousand dollars have been 1
ccived into the Treasury as its nett earning^ 11
people of Georgia will condemn thc policy of al
party that proposes to part with it, and eaten I
action of this Assembly in rcfnsicgto sepias,!
change its present condition. Gov. Brownheal
to manage it well and make it pay.
Thc Omnibus Stato Aid Bill was.dcfeud 1
log roiling and combinations rebuked I h»
that your city is deeply interested in the Brer.- - .
Road, and many of your people werewiEngiaar
thc Omnibus with its heavy load of no:-::]
roads to get the Brunswick, but Isay‘ - Iil»»
time” and Brunswick will be aided yet hi.
work in which all Western and NorthwsunGc*
gia havo a direct immediate interest, ami ik?
lieved of the dead weight of Air IAno si! hej
will go through like a flash.
Thc Bill changing the Constitution eou Mat -
Supreme Court Judges by thc people wislos-^
was right. Thc people don’t want the elut c ’ -
if they did, it is thc part of wisdom to prevent
Thc Penitentiary was not removed—let it t®- 11
where it is—this was the first step towards c.-
tho Capital at a heavy expense to some point *_
North-western part of the State near the AjJ#
line.
On thc whole, I think when the Laws is 1-
Iishcd and known to thc people, they will
me in saying that tho action of thc Genera ts-
bly, has been “Wise, Liberal and Just
Secretary of thc Treasury will pardon thc f
tion.
I have omitted to refer to thc elec,
lie officers, but tho favorable judgement .
people has already pronounced upon ^ .
election of Mr. Toombs, Judge Lumpkin—-■>■ -
House Officers, (particularly Mr. T * ^
Comptroller,) and tho Federal Union, ^ .
ter. Now your correspondent approach® ‘
cate subject—the Bank Bill—its veto—n” j
sage over the veto. I am not a
nothing of tho workings of the Ban n S ^
but I believe Gov. Brown was right
measure, and I am not sure tint c - ^
was wrong to pass it. Thc session wu* * ,
there was no time to fix up a <hfferent U
something had to be done—:uid pe f 4 ^
t rerhaps it was best to pass ® ^ m
force the Bonks into liquidation. B|
tiinenta. It was not ns a rebuke to * * ^
it was not because lie did not ^ jj n
sense tho confidence of tho roajo
the force of circumstances that oT(r
unexpected passage oftho Batr . ,14
Brown’s veto by a constitutions maj ^
islature where the Democracy were Jf ,
If any reader of thc Telegraph [a y
about thc “force of circumstance^ ^ ^ •
tho Senator from Coweta or
Fulton, :
,
dent hope that he will not ^ esirc ,“* 1
higher tribunal for better mfoiin' -
Many will charge that Gov. 9
w . a Vuw known. w . ... ml
say.ami du peuplc; but
havo tried him will find that he ^ m
spirit of lofty patriotism, »
for right, a desire to subserve
interest of the State and without an.
chances of a second torm. ^
Tho bill was passed and 1= !1
Land. * .asded, ^
g After this- excitement v-ss 0 c;'-
remained to be done. Thc ^defi*?'
themselves for an hour or tw0 otoof 1 ^
long, dull, fare well spc** 0 *.
varied, however, by a call for -
ho clef'
p ot tne wjnsumiiu—n. j to»-
r» audience with a b n “ l- ciI nc
farewell speech. The adjourning. ^
the members have all S oue ’, so* vc»'^
strolled up to thc Capitol. ^ ^ j..; , •
poorly parched pea nuts pta -.
dgars hive vacated their- tand, -
Jefferson and.Iaiiayvtto and Cra*-
empty halls—the lobbies are