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of any superiority of geographical position for the more favored sections, nor either from the natural course of trade and commerce.
The most wise and advantageous use to which bank accommodations can be applied, is toward building up manufactures, and in facilitating the transportation to the more valuable markets for our varied agricultural and mineral productions.
The superior advantages and peculiar adaptation for manufactures of those portions of this State situated upon the upper Cumberland, and upon Green River, and in the counties of Trigg, Caldwell, and Livingston, will be readily conceded by all who are correctly informed of the extensive beds of coal lying in those counties; and also, of their rich and inexhaustible iron ore—their dense and valuable forests, and boundless water-power. All these important and unrivalled advantages point out those counties as the great manufacturing regions of this greai and growing Commonwealth.
That the organization of the Southern Bank, and its branches, will facilitate the development of the wealth and valuable resources of this vast portion of the State, your committee cannot entertain a doubt.
The citizens of the “Green River Country” did, in the month of September, 1838, hold a general convention, in which all their interests were fully and ably represented, and at which they resolved to petition the succeeding General Assembly for an increase of banking capital. In accordance with that resolve, they, at that date, respectfully represented that the want of a sufficiency of moneyed facilities for the South of Green River, had depressed their commercial enterprizes_reduced the value at home of their agricultural and mineral productions-extensively and ruinously prejudiced the growth of their manufacturing interests, and retarded greatly the prosperity and advancement of that portion of the State.
Acting upon these representations, the Legislature, at the session of 1838, granted a charter for establishing the Southern Bank of Kenlucky,” and authorizing the principal bank and four branches to be located south of Green River, and three branches north of Green River.
The disastrous circumstances which surrounded the period of the date of its charter--the suspension of specie payments by many of the banks—the repudiation of their bonds by many of the States of the Union—the almost universal derangement in the monetary affairs of the country-and the general prostration of trade, of commerce, and of credit, rendered it impossible at that day, to obtain the stock, and at that time to put into operation the “Southern Bank of Kentucky.”
It is now represented to your honorable body, that, with some slight, and, as your committee conceive, unobjectionable amendments to the original charter, the stock can and will be subscribed, and the principal bank and branches now be put into operation.
[The legislative proceedings in this case will be laid before our readers as soon as ascertained.-Ed. B. M.]
Circular of the New Board of Directors of the Louisiana State Bank at N. Orleans.
.LOUISIANA STATE BANK, Feb. 17, 1819. To the Stockholders.—The Board of Directors, on entering upon their duties, deemed it proper to make a thorough examination of the condition of the institution, a majority of whose legal stockholders, in number and amount represented, had, by their partiality, devolved on them the management of its affairs; and having completed their task, they now consider it equally their duty to make known to their constituents the result of their labors.
The Board of Directors are impelled to this course by the consideration that it is proper the stockholders and the public should possess a correct knowledge of the condition of the bank; and, further, that the errors of the preceding administration may not attach in any degree to the present; and that each should be responsible for its own.
The examination of the assets of the bank has been made by the Board of Directors, whose time has been devoted to it daily since they entered upon their duties. It has been made with the greatest possible care and exactitude. The liabilities of the bank, as represented by the books, the accuracy of which they have no reason to doubt, they assume to be correctly stated.
The result of their examination will be found annexed; and it is a matter of profound regret to the board that the affairs of the bank, possessing as it has for a long time, many advantages over similar institutions of our city, should be found in a condition so unsatisfactory.
The stockholders, however, need not be discouraged by this unexpected result. The bank possesses a charter of great value, and which will not expire until 1870. A prudent and impartial management of its affairs will soon replace this ancient institution in the elevated position it occupied under the direction of its early administrations.
In estimating the losses, nothing was condemned as bad, unless by the unanimous concurrence of all the directors and the cashier, and no deduction has been made for interest on obligations running to maturity, The unquestionable losses which have been sustained by the bank, and which have been known for many years as such, amount to $304,634 74, as is shown by the annexed statement; and in the opinion of manyan opinion, however, not entertained by this board—the amount due by the Orleans Navigation Company, $116,693, is estimated as being of no value; and if it be so, then the total of the losses is $421,327 74.
Deducting from the amount of the unquestionable losses, the very small amount to the credit of the profit and loss account, $1,019 41, (there being no reserve fund whatever, the capital of the bank is now deficient about 16 per cent.
On the 3d inst., the late Board of Directors declared a dividend of 4 per cent., which amounted to $69,052 80, although at the time they had the evidence before them that the capital was deficient over $230,000, estimating the debt due by the Orleans Navigation Company
as good; but if bad, then $336,000. Thus in palpable and direct violation of the charter, did they make a further reduction of the capital to the amount of that dividend.
By the by-laws of the bank, this semi-annual dividend when declared is required to be made payable on the 10th day of February; but on this occasion, so desirous did the late board seem that this dividend should be paid before the new board could ascertain iis illegality, and consequently revoke it, they made it payable on the 7th-and when this board entered upon its duties, the greater portion of it was already paid.
It is to this board at once a cause of surprise and regret, that the respectable attorney of the bank should, as the minutes show, have advised this most signal violation of law, by which the chartered rights and privileges of the stockholders of this institution may be placed in imminent jeopardy.
The large sum due by the Orleans Navigation Company to this bank, is worthy of special notice; it is equal to 6 per cent. of the capital. This board is convinced that the Bayou St. John, Canal Carondelet and Basin, possesses great intrinsic value, the exclusive and perpetual proprietorship of which is vested in that company.
They are of opinion that by judicious improvements a considerable portion of the commerce with Alabama, Georgia, Florida, and the opposite side of the lake, may be attracted there; that such is the increase of trade with those States, particularly with Alabama, that the existing facilities furnished by the canal of the Canal Bank, and by the Pontchartrain Railroad, will in a few years be found quite inadequate to its transportation.
The time is not distant when the bank, and others interested in the company, may, with the most perfect safety, make such expenditures to effect the necessary improvements, as will ensure the payment of its existing debts with interest.
The enlargement of the old Basin—the widening of the Canal Carondelet—the straightening and dredging of the Bayou St. John, and making a good and safe entrance into the bayou at the lake, are the improvements contemplated. The great importance of such a work to the commercial interests generally, and particularly to the centre of the city, will no doubt ensure, if required, the aid of the State, and of the municipal authorities, for its completion.
For these reasons, this board does not consider the debt due by said company to the bank as a loss; but, on the contrary, esteem it to be eventually as safe as any debt due now this institution.
The books of the bank will be at all times subject to the examination of any of the late Board of Directors, should they desire to verify the statements made in this circular and in the annexed account, and detailed statements of the losses are in the possession of the cashier, subject to the examination of every stockholder. By order of the Board:
SAMUEL J. PETERS, President. [OC- For legal proceedings in reference to the Louisiana State Bank, see page 644 in this No.)
Statement of the Louisiana State Bank, Monday, 12th February, 1849. RESOURCES.
Estimated value. Bills and notes discounted,
$2,130,427 92 $2,090,427 92 Bills receivable,
34,804 24 Loans on stock,
109,643 00 109,643 00 Miscellaneous debts,
60,786 41 Bills and notes discounted, protested,
4,486 13 Stock notes protested,
2,799 00 Orleans Navigation Co. bonds,
116,693 00 116,693 00 Levee Steam Cotton Press Co. stock,
6,950 00 Orleans Insurance Co. stock, .
10,000 00 Real estate,
74,534 17 Office at St. Martinsville,
31,300 64 Current expenses,
837 67 Cash, viz: Specie,
958,076 46 Notes of other Banks,
80,273 91–1,039,350 37 1,038,350 37
$3,384,108 62 $3,580,773 89 LIABILITIES. Capital stock,
$1,734,820 00 $1,734,820 00 Circulation,
538,050 00 538,080 00 Individual depositors,
1,376,947 66 1,376,947 66 Dividends unpaid,
34,796 10 Amount due local banks,
187,567 66 187,567 66 Profit and loss,
1,019 41 Discount account,
$3,884,108 62 $3,872,211 42 Value of the Assets,
3,590,773 88 Amount of deficit being 16 per cent. on the capital, .
$291,437 54 ESTIMATE OF LOSSES. On bills discounted,
$40,000 00 Miscellaneous debts, .
125,575 42 Bills discounted protested,
83,147 65 Stock notes protested,
1,152 00 Levee Steam Cotton Press stock,
4,922 00 Real estate,
19,000 00 Office of St. Martinsville,
30,000 00 Current expenses,
837 67—$304,634 74 ESTIMATE OF GAINS. On Orleans Insurance Co. stock,
$1,300 00 Profit and loss,
1,019 41 Discount account,
10,877 79% 13,197 20
$291,437 64 (Signed)
SAM. J. PETERS,
J. W. ZACHARIE.
OHIO. [Compiled from the official Reports for the Bankers' Magazine.] Recapitulation of the condition of the several Banks in the State of Ohio, from their Returns to the Auditor of State, November, 1848.
11 Independent LIABILITIES.
7 Ou Bania, Capital,
$626,825 $3,716,367 $2,311,926 Circulation,
1,579,769 Bank Balances,
533,754 Individual Deposits,
1,075,127 Bonds with Treasurer,
80,643 State Tax,
750 Surplus Fund, .
991,$22 Bills Payable,
134,096 Dividends Unpaid,
$3,972,277 $13,069,472 $5,937,176 Independents. State Branches.
Old Banks. Discounted Bills, .
$1,752,075 $3,179,978 $3,746,797 Gold and Silver,
403.333 Notes of other Banks,
330,445 Bank Balances,
274,519 Eastern Funds,
556,996 State Bonds,
699,643 Real Estate,
$3,972,277 $13,069,472 $5,937,176 Names, Location, Capital, Circulation and Specie of the several Banks
(fifty four in number) in Ohio, November, 1848. LOCATION.
Capital Circulation, Specie. Athens,
* Athens Branch State Bank, $ 40,995 $80,997 $24,650 Akron, *Akron Branch State Bank, 100,000 200,000
62,772 Ashtabula, *Farmers Branch Bank,
37.964 Bridgport, *Belmont Branch Bank,.
60,000 102,435 36,138 Cleveland, Canal Bank,
50,000 51,624 City Bank,
50,000 65,949 24,130 *Commercial Branch Bank, 175,000 304,830
*Merchants Branch Bank, 125,000 230,930 $1,171 Cincinnati, City Bank,
49,800 52,062 7,925 Commercial Bank,
50,000 49,155 24,650 *Franklin Branch Bank,
169,000 243,516 105,390 *Mechanics and Traders, 100,000 133,165 Lafayette Bank,
700,000 236,069 101,131 Ohio Life and Trust Co.
611,226 11,550 17,462 Columbus, City Bank,
122,925 225,786 56,328 *Exchange Branch Bank, 125,000 226,129 72,276 *Franklin Branch Bank,
175,000 304,973 93,104 Clinton Bank,
300,000 565,651 111,214 Cadiz, . *Harrison County Bank,
70,200 137,053 43,437 Chillicothe, *Ross County
121,750 226,761 70,251 *Chillicothe Branch,
229,105 363,143 104,548 Cuyahoga Falls, *Summit County Branch, 100,000 199,072 47,388 Circleville, Bank of Circleville,
83,197 Dayton, Dayton Bank,
73,400 163,347 60,172 *Dayton Branch Bank,
75,050 Delaware, *Delaware Co. Branch Bank, 89,226 176,343 63,556