Article Text
a private nature, and of no interest to the peo-
ple. We shall notice this letter, in connection
a late communication in the Democrat, at some
future period. It was not written for publica-
tion.
JACKSON, February 11, 1841.
DEAR SIR:-I with pleasure acknowledge
the receipt of your favor of the 6th inst. And
in compliance with your request, I send you
herewith a minute calculation made out by the
Cashier, showing the condition of the Bank if
put in liquidtion and closed at the end of four
years.
You will perceive by an examination of the
Cashiers estimate that he has calculated the
15 per cent drawing on the whole amount of
circulation when in fact there is a million that
has not yet been presented, and that after ma-
king all the calculations against the Bank,
throwing off the 3 per cent. interest that the
Bank is entitled to after maturity of its bills if
not punctually paid, and the interest already
accrued on suspended debt, which I estimate
at 4 or 5 hundred thousand dollars, a balance is
shown of $3,396,100 to pay the four millions
of Bonds, due in 1850, and 1858-You will al-
so see from the Cashiers note that he is of o-
pinion that the assets will amount to $4,000,-
000 which with the difference of interest would
pay the bonds by the date of their maturity.
If the Bank had been permitted or was even
permitted now to go on under a modification
of the charter it would not only pay the bonds
but would form a source of revenue to the
State, but it is idle to think of this, for with
such prejudices against our State institutions
e just or unjust they cannot survive.
I am therefore an advocate for placing every
institution in the State in liquidation, that the
State has an interest in, nothing else will sat-
eisfy the morbid sensibility of the people who
have been more imposed on by misrepresenta-
stion than any people in the world.
Returning to the Bank, I give it as my
opinion most decidedly that the Bank could
have succeeded had it not been for the violent
opposition that it had to contend with from its
commencement.
The Legislature at its January session, 1839,
by resolution required the Directory to issue
post-notes on the faith of the Bonds of the
State thereafter to be issued which accordingly
induced the issuance of the April and May
post notes, and the Legislature of 1840 with-
held those means of payment from the Bank,
which reduced the Bank to a state of suspen-
sion and the Legislature, radical as it was,
passed a law repealing the damages of 15 per
cent. per annum of the circulation before the
same had accrued which was vetoed by the
Governor and which will prove a loss to the
State of at least a half a million of dollars.
I write you this in haste on the eve of leav-
ing home, but it will afford me pleasure to cor-
respond with you on this or any other subject
touching our ensuing election. I am, very
respectfully, your ob't. serv't.,
H. G. RUNNELS.
TO R. K. CHAMBERLAYNE,
No estimate is made of property mortgaged
by subscribers, because I do not think it is lia-
ble in as much as the State has withheld the
State Bonds on which the mortgage was
made.
H. G. R.
A statement showing the condition of the
Mississippi Union Bank, if the debts are
collected in five annual instalments, estima-
ting the bad debts at one million and inter-
est on the suspended debt to date, and the
expenses at $20,000 per annum, and that
$2,700,000 nearly the whole amount of the
circulation will be presented for non-pay-
ment, only $1,700,000 having been presen-
ted. LIABILITIES. RESOURCES
Whole am't. of liabilities, $2,760,000
Interest and damages to
date, 270,000
$3,030,000
Dainages the 1st year, 405,000
$3,435,000
Whole am't. of assets, less $7,000,00
1 million bad,
Interest 1st year, 490,00
$7,490,00
Less 1-5 principal and in-
terest, 1,890,000 1,890,00
At end 1st year, 1,545,000 5,600 00
Damages 2nd year, 128,500
Interest 2d year on assets, 392,00
1,673,500 5,992,00
Less 1-5 principal and in-
terest, 1,792,00
Interest on Bonds 2 years, 500,000
Exchange for paying same, 50,000
Interest on same, 22,900
Bank's Coms. for paying
same, 5,000
Current expenses 2 years, 40,000
2,291,400
Less 1-5 principal and in-
terest, 1,792,000
End of 2nd year, $499,400 $4,200,00
Interest 3rd year, 294,00
4,494,0
Less 1-5 principal and in-
terest, 1,694,0
End of 3rd year, 2,900,0
Interest 4th year, 196,0
2,996,0
Less 1-5 principal and in-
terest, 1,596,0
499,400 1,400,0
Interest on assets 5th year, 98,0
Am't. to be paid 5th year, 1,498,0
4th 1,596,0
3d 1,694,0
Interest on Bonds 3 years, 750,000 4,788,0
Exchange paying same. 75.000
Bank's coms. paying same, 7,500
Current expenses 3 years, 60,000 1,391,9
Assets at end of 5 years, 3,396,1
Against $1,250,000 bonds due in
1850 and 3,750,000 “ “ 1858.
Total, $5,000,000
Should the bad debts prove to be only
million, and the interest on the suspended d
to date be collected, which will probably
the case and as I have not included in
statement, as an offset against the 15 per cent. allow
from damages, the difference of 3 per cent.
on debts after maturity, the assets may with
safety be put down at $4,000,000-so that
the Bonds could be re-purchased at the end
