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STATE BANK OF ALABAMA. o From the Report of the Cashier of the Bank fi of the State of Alabama at Tuscaloosa, Janub ary 31,1840, it appears that that institution is in a most horrible condition; nearly as bad as W our own Brandon. No wonder that it suspended specie payment; and yet, this is the same institution which is to issue Post Notes-or its suspended paper, as a currency for the people. Do the people want it? or, will they have it We are a friend to Banks properly conducted-but not to such a system as this. It is altogether a mistaken idea for the Democracy to suppose that the country will not hold them responsible for these manifold evils-an inundation of shin-plasters, with every other cona sequence it may bring in its train. What Democratic Legislature to authorise the emission of TWO MILLIONS of the paper of a broken Bank, one which they acknowledga to be such. Was the like ever known before? But what is there to ever pay this paper with? Already the notes in circulation alone amount to330,883,00, and the specie to meet it, to 7,665,44, whilst debtors are to be allowed five years to pay up their liabilities: and, independent of all which, is the new issue soon to be made. It is a inistaken idea with some: and, upon which we will here have something to say, that, the State is pledged for the redemption of this State Bank paper, even should the Bank lose every dollar owed by debtors. Such is not the case. The State has nothing more to do with redeeming the paper of the State Bank of Alabama than we have. When the bank was created, the State sold her bonds-in Europe, probably, and loaned a portion of the money to the bank to bank upon, thereby causing the bank to become a debtor to the State, for the amount of its capital, instead of to individual stock holders, as in other cases-which capital, if squandered, becomes a loss to the people of the State only, with whatever portion of the paper of the bank they may happen to hold. And, whenever these State bonds have to be paid, upon which this money was borrowed, should there not be funds in the State Treasury, then, the people will have to be taxed to pay them; but not to pay any issues of the bank; which would become as worthless under such circumstances as any other broken bank paper. That an opinion that the State of Alabama was bound to redeem the issues of her State Bank, should a failure of that institution occur, has extensively prevailed, we have a certain knowledge; and it is to correct the error of that opinion we have made the present remarks, and not to endeavor to injure the credit of the institution, should any be inclined to place a wrong construction on them. The letter of the President, to his Excellency the Governor on his taking charge of the institution, together with the Resolutions of the Board to suspend, and the Report of the Cashier, we give below, for the information of such as may feel an interest in the affairs of the Bank: To his Excellency, ARTHUR P. BAGBY, Sir-It becomes my painful duty to inform you, that this institution has suspended specie payments. The new Board met last night, and after being properly organized, proceeded to examine the state of the Bank, and found that the specie fund is reduced to the small sum of seven thousand six hundred and fifty-five dollars and forty-four cents. The accompanying Cashier's statement, exhibits the present state of this institution, al. 80, a copy of the resolution of the Board, directing the suspension. All of which is respectfully submitted. Respectfully, JOHN MARRAST, President Bank of the State ef Alabama, , Tuscalousa, Feb. 1st, 1840. 3
