Bank Dividends Mr. Editor-I have prepared the four following Tables, in which are contained the names of the 25 banks now in declaring dividends, and the rate and amount of dividends for each of the 10 years, from 1832 to 1841, or since they cent. per annum; the second, those whose rate has averaged 6 per cent.; the third, those whose rate has averaged in Roston. operation in Boston, and the years in which they were incorporated, together with the amount of capital at the time of have been incorporated. The first table includes those banks, whose rate of dividends have averaged less than 6 per more than 6 per cent.; and the fourth, a recapitulation. We commence above, the publication of a valuable article, furnished by a correspondent, on the Bank Dividends in Boston, for the last ten years. In the course of a few days or weeks, as we have room, we shall insert another portion of the article.-Boston Mercantile Journal. Debt of Texas. [Table II. will appear in next number.] tains west of this, we learn, the snow fell to the depth of four inches, and laid on the ground several days. We were visited with the the first fall of snow last season, on the 25th of October. Cotton Packing Extraordinary, Mr. J. Sims, Overseer for Gen. Wm. Irwin, of Henry county, Alabama, packed in one day, from sunrise to sunset, thirty-two square bales of cotton, averaging 478 pounds, with a common square threaded screw, with eight hands.Mr. Sims challenges the whole world, and part of Texas to beat it, and if they can "come it," he will then do his best. [Fort Gaines Whig. The UNITED STATES COMMERCIAL AND The Cumberland (Md) Civilian of this morning says, we had the first fall of snow this season, on Sunday evening last 24th Oct. For several hours the appearance was as in mid-winter. On the next day, however, the snow soon disappeared before the genial rays of the sun. In the moun- Where, and at 76 Dock St., Subscriptions will be received. COMMERCIAL AND STATISTICAL REGISTER. EDITED BY SAMUEL HAZARD. VOL. V. PHILADELPHIA, WEDNESDAY, NOVEMBER 17, 1841. No. 20. MESSAGE OF GOVERNOR MCDONALD OF GEORGIA. Fellow-Citizens of the Senate and of the House of Representatives: Deranged state of the currency. eighteen months was driven to the necessity of making curtailments which crippled the commerce of the Union. At the expiration of twenty-seven months it was brought to the verge of failure, and was forced to throw itself on the public treasury to rescue it from ruin. The officers of some of its branches had abused the confidence of the Government and stockholders, and abstracted its means upon securities doubly pledged, trusting to the success of wild speculations to enable them to meet their engagements. A change of adminis tration was effected, and a gentleman was placed at its head who, after bringing order out of chaos, resigned. Its destinies were then committed to a man who brought with him, it was supposed, every qualification of character and ability to insure its honest management, with profit to the proprie tors and benefit to the nation. It was so conducted as to propitiate general confidence, and it acquired a reputation and influence which was almost irresistible by those who deemed its establishment unwise and unwarranted by the Constitution. It had command of the public treasure, and was master of a credit which enabled it to control the monetary operations of the country. Its affairs were all the while secret, and continued so, until a ray of light was thrown upon them by the imperfect investigation of a committee of Congress. It was then discovered that its great prosperity was resting on a dubious foundation-that the most influential presses in the country had been subsidized by heavy Of all the subjects entitled to your consideration during your present session, the still deranged state of the currency presents the most delicate and embarrassing. It is an evil that cannot be corrected in a day; and it is less in your power to remove existing difficulties, than to prevent their recurrence by wise and wholesome legislation. What is the proper remedy for the mischief, has been a question of absorbing interest to the whole nation. A great diversity of opinion exists in relation to it amongst our most distinguished and enlightened statesmen. Some regard a National Bank as the only means of relief. Its advocates allege that its notes when undepreciated, are of almost universal and uniform credit, it commands a confidence but little short of that of the people in the government. Experience, however, has proved that such an institution is not entitled to so large a share of the public faith, and that it is liable to the same casualties of other banks, with this additional and condemning disadvan-loans-that members of Congress, of commanding talents, tage, that when misfortunes befal it, the people are subjected to a double taxation; first in the depreciation of its notes, and secondly to duties and imposts for its relief. It cannot be expected that men of morals and capacity superior to those who are found to manage local institutions, are to be obtained to administer its affairs. Those who conduct it will be liable to the same influences; will extend credits in times of high prosperity; contract bad debts, misjudging the circumstances of applicants for its favor; afford facilities, and perhaps be concerned in associations for speculation; call in its debts in times of general embarrassment, thereby adding to the distresses of the unfortunate, and giving opportunities to a favored few to purchase, on private account, property sold at ruinous sacrifices; lend its funds to political men, who, generally, of all others, are least apt to apply them to wise purposes, and are not always remarkable for punctuality; and embark its means in hazardous enterprises, regardless of the interests of the government and its other proprietors. This is not all; it will enter the field of political contest and assume the control of the government and its operations; and, bringing the press and public councils under its authority, it will acquire a power, ultimately, that the nation cannot resist, and to which the people must submit; all the while abstracting from their pockets the means of maintaining its unjust dominion over them. The late Bank of the United States. had been feed, as professional men, to represent its interest in the courts of judicature, and that to others accommodations to enormous amounts had been conceded. If there was nothing unusual in this, it gave rise to strong suspicions that its purpose was to wield its gigantic means, levied in part by taxes on the people, to perpetuate itself upon the country and to interfere with the policy of the Government. It furnished evidence also, that the representatives of the people were in danger of being subjected to its dominion, and the nation controlled by its power. From being a mere appendage to the Government it assumes to be greater than the Government itself. But its arrogance was arrested by the great man then at the head of the nation, who could neither be won by its smiles, nor terrified by its frowns.— When it was found that the limit fixed for its existence by the act creating it, could not be transcended, it resorted to the expedient of invoking from a State a charter, by which it might escape the exposure of its condition, which must necessarily have taken place at the closing of its affairs, hoping, no doubt, under this shield to protect itself until, by obtaining a grant from Congress, it could be restored to its former privileges and powers. It succeeded in obtaining & charter, and with the same stockholders, save the Govern-ment, and the same assets, a new organization took place, under a cognomen admirably adapted to secure the confi-dence it acquired while it wielded the public funds. Every step it took, however, exposed its decrepid condition. Its fraudulent issue of the notes of the old Bank of the United States, and when thwarted in this, its hurried resort to foreign loans, and its engagement in cotton and other unjustifiable speculations, made it manifest that all its operations were the wild, indigested and misdirected efforts of desperation. That these objections are well founded, is fully established by the developments of the late Bank of the United States, which has just terminated a career of profligacy and corruption without a precedent in the history of the country. This institution was originally chartered by the Congress of the United States, and went into operation under the most favor- Finding as little favor with the present as with the former able auspices. With a substantial capital of twenty-eight administration of the General Government, and being overmillions of dollars it commenced business, having the revc-whelmed with difficulties, it was forced to yield to circumnue of the nation to sustain it, and in the short period of stances, and a state of things was divulged which covered VOL. V.-39 its once distinguished managers with infamy, and disclosed to the stockholders that their entire interest had been sacrificed by those in whose honor and integrity they had confided. The loss of this institution cannot be less than twenty-five millions of dollars. Its notes are at a heavy dis-, count, and it is not yet ascertained that they can be redeemed, after appropriating the whole stock and other assets to this object. This is the finale of the old Bank of the United States. Had it continued to be the depository of the public funds, it might longer have concealed its situation and inaintained its credit, but its actual condition would have been no better. Reasoning from data afforded, it may be concluded that its losses would have been still greater; and it is clear that the revenue of the country must either have been squandered or used to relieve it from its embarrassments With this experience before the country, how can it be pretended that it is wise to establish such an institution to aid in managing the financial concerns of the Government, or to regulate the currency between different sections of the Union. In times of prosperity, when exchanges are low, it is not needed; but when adversity comes, it plunders and destroys, or is pressed and powerless, and in either case adds to the general calamity. Remedy for the diseases of the currency. In order that a proper and practicable remedy may be provided for the diseases of the currency, it is necessary that their causes should be thoroughly investigated. It is unquestionable, that the almost indefinite multiplication of banks has had a principal agency in bringing about the state of things now so much deplored. The facility with which these institutions can manufacture what is intended to be the representative of money, presents a strong temptation to the cupidity of man to embark in the enterprise of banking without capital. A charter is asked for, and the plausible ground is taken that additional banking capital is demanded by the city or town in which it is proposed to establish the institution. It is granted; and the incorporated gentlemen, to comply with the precautionary regulations of the Legisla ture, borrow for a few days the amount of specie required to be placed in the vaults before operations can be commenced. The bank opens under these auspices, the specie is returned to its proper owner, and the notes of the stockholders are substituted for it; and on this unsafe, fraudulent and unsubstantial foundation, rest many of these corporations. In such cases of unquestionable imposition, it is clear that the Legislature has the power to abrogate the charter, and it ought to be unhesitatingly exercised. Banks are not created for the benefit of the proprietors, further than to offer them a profitable investment of actual capital. The object of the Legislature is not to enable the capitalist to make interest, but to present before him inducements to give activity to his money for the benefit of the community; to bring it into trade; to increase the facilities of commerce; and enlarge the sources of general prosperity. All efforts to evade and thwart these purposes should be made highly penal, and the corporate privileges of banks violating the letter or spirit of their organic law, be abridged, or annulled, according to the enormity of the offence. They are no more beyond the reach of legislation than natural persons. Their capacity for mischief is inseparable from the power given them for good. This is necessarily the case, and they should be restrained by salutary laws from perverting this power to mischievous ends. If the position be correct, that banking privileges should be conferred on those alone who have an actual surplus capital, not needed to be employed in any other way, might it not be a wise regulation, that a loan made directly or indirectly to a stockholder, should involve a forfeiture of his stock, or of the charter? A loan to a stockholder is an abstraction of so much of the capital, for which his note is substituted. The argument that the note of a stockholder may be made as good as that of any other person, is delusive and fallacious. It is true in fact, and therefore specious; but when examined proves to be unsound in principle. A charter is never granted to persons to enable them to issue notes to lend to themselves; but that those who have money may 1 associate and bring their means together to lend to others. A loan to one stockholder, it is known may be as good as that to another, and each has an equal right. Loans may be made in this way, not only until the entire capital is ab sorbed, but, beyond this, to the amount of issues the bank is authorized to make. There is, in such cases, a strong temp tation to wrong, for the directors to extend mutual indulgences to each other; to refuse accommodations to all except the company, and when their indebtedness is greatest, to depreciate the currency, that they may purchase it at enormous discounts, or receive it in payment for property sold at unreasonable prices. The plan proposed promises to be more effectual than any other that suggests itself to my mind, to protect the community from this unjust and nefarious speculation. By extirpating the system of banking upon fictitious capital, the soundness of the currency is most likely to be preserved; stability will be given to exchanges; the planter and merchant protected from the devices of the speculator; and the laborer paid in funds not liable to depreciation. As a means of obviating the causes which have led to the disorders of the currency, a favorable change might be made in our banking system. The Central Bank is the only institution which has diffused its accommodations to the people of every occupation and profession throughout the State. This should be sustained by all the means at the command of the Legislature. But besides this institution, I am satisfied that the public interest would be promoted if there were but a single bank, located at our principal sea port, with a capital adequate to all commercial purposes, and required to establish a branch at each point at which banking facilities are needed. The many advantages which this would have over the existing system, must be manifest to all. Every section of Georgia would have the same currency, not liable to loss by unjust exactions of unreasonable premiums on exchange, and of nearly uniform value throughout the State. By establishing a substantial credit at home it would acquire confidence abroad, and enable those who wish to use their funds in other States, to dispose of the notes at little or no sacrifice. There would be but little probability that those who embark in banking with the view of fabricating money for their own use, could bring the institution under their control so as to execute their purpose. This should be cffectually provided against in the charter. That many banks have charters as yet unexpired, may give rise to some difficulty in carrying this measure promptly into operation. If the act of incorporation were immediately passed, providing that no other bank should be chartered, and that the charters of those in existence, except that of the Central Bank should neither be renewed or extended, it would attract the attention of capitalists and accumulate strength as the other institutions expired. I submit these views to your consideration. It is expected that they will encounter the opposition of many of the banks now in existence, and the hostility of those towns and cities ambitious of retaining a bank. But the public interest alone should be consulted, and the recommendation is made under the firm conviction that it will be promoted by it. On the first day of January I issued my proclamation rcquiring the several banks in this State, their branches or agencies, on and after the first day of February thereafter, to redeem their liabilities with specie, in conformity to the provisions of an act of the last General Assembly. Some of the banks complied with the requisition and still continue tɔ pay specie, others resumed for a time, but were forced, from the heavy demands made upon them, to suspend; while there were others which, from an inability to meet their engagements, or other causes made no effort to conform to the law. It was made the duty of the Executive to order judicial proceedings against any bank for the forfeiture of its charter, upon due proof of its failure to redeem its liabilities with specie. Information having been lodged in proper form against the Georgia Railroad and Banking Company, the Bank of Columbus, the Planters' and Mechanics' Bank of Columbus, and the Chattahoochee Railroad and Banking Company, sustained by due proof of their failure to comply with the provisions of the statute, judicial proceedings have |