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LIABILITIES. Bank notes and checks in circulation Due Depositors Due to Banks Due to capital stock 3,840,321 00 715,598 97 1,401,238 06 12,548,313 96 Aggregate amount of liabilities Surplus of means over liabilities after returning the capital stock to stockhelders Surplus of means over liabilities not including capital stock 18,505,481 99 857,003 65 13,405,407 61 The proportion of specie to the Bank note circulation is 1 to 10 56-100. After deducting from the amount of the Bank note circulation of the seventeen banks examined- which is 3,211,290 The amount of Bank notes held by the same banks (composed nearly all of Mississippi Bank notes) which is The balance actually in circulation is 645,619 2,565,678 Upon a settlement of bank accounts there is a balance in favor of the seventeen banks examined of 291,592 Upon examination it will be found that the amount of discounts by the banks examined exceeds their capital only by the sum of $2,587,794 Their circulation is about one-fourth of the capital paid in. The proportion of specie to the amount of circulation and deposites is 1 to 15. The striking disproportion between the cash means and cash liabilities of the banks at this time, is no evidence of a want of forecast or integrity on the part of the directory of those institutions, but in most instances has been the result of causes beyond their control. The peculiarity of charter in many cases compelling the banks to loan one-half their capital upon notes of long time, twelve months and renewable, and the large sums expended by other banks upon rail roads which they were bound to complete within a given period, have, in a great measure, created this disparity. Add the amounts expended by those banks which are compelled to make rail roads to their cash means, and it will be seen that the sum will nearly equal their immediate liabilities. A large proportion of the amount expended upon rail roads was paid in specie. This was particularly the case with the Commercial and Rail Road Bank of Vicksburg. The fact is palpable that those banks which were compelled by their charters to loan within a few specified months one-half their capital on the long time, have been exceedingly crippled. The Commercial bank of Manchester presents the most striking example: that institution was compelled to make its long loans in the three months just prior to the suspension of specie payments, when the demand for the precious metals was so great that nearly every dollar discounted was presented in a few hours after the specie. We for instance this bank because the long loans were made at that critical juncture. It is true that the Commercial Bank of Natchez and the Commercial Bank of Rodney made their long loans at the same period; but their loans were made to take up protested bills and relieve themselves from a suspended debt, thus merely changing the character of the security and not increasing their cash liabilities. In view of the foregoing facts we are not at all surprised at the relative proportion of specie to circulation and deposities exhibted by those banks which have dealt but little in exchange have made long loans to any very great extent or expended much upon rail roads. It is impossible for a bank with long paper only, although well secured, to meet notes or debts payable on demands. This can only be effected by short paper payable upon given days: hence it might have been expected that banks which extensively purchase bills at thirty and sixty days would have exhibited a greater proportion of specie to their circulation and deposites. This no doubt they could have done had not nearly every bill purchased in the months of February, March, and April, been thrown back upon them in the form of suspended debt by the failure of the commission houses in New Orleans and Mobile. The securities to the assets of the various banks examined by the board of commissioners are generally of a character highly creditable to the judgment and prudence of the officers of those institutions. In commercial towns the banks have been guilty of favoritism to commission merchants. The liabilities of some of them are alarmingly enormous; but it is worthy of remark that the directory acknowledge their reliance to be upon the planter as endorser, although the discount was made to the merchant who loaned to the planter. The liabilities of the officers of the banks in many instances are much too great to permit a disinterested discharge of duty. In no instance have we been enabled to discover any direct violation of charter, except in the manner in which stock has been paid in, in the suspension of specie payments, and the non-compliance with charter in the establishment of branches. Every bank examined, has, to greater or less extent, received the notes of individuals in payment of stock, although their charters require the payment to be made in specie or the notes of specie paying banks. The Commercial Bank of Natchez has not given as much capital to her branches as the character requires. Only a trifling sum has ever been presented to the banks for protest, although most of them are subject by their charters to the payment of twelve and a half per cent. interest: A people never have borne more patiently their wrongs. Never did such a spirit of forbearance pervade a community as that which characterizes our own. Weighed down by the prostration of commercial credit, overwhelmed by a domestic and foreign debt accumulated during the rage of a speculating mania, bank credits strained to their utmost tension, a country flooded with a currency that depreciates with its increasing redundancy, still the astonishing spectacle is presented of a whole people quietly suffering these evils, paying for merch
