are still outstanding. And that in 1855, she issued $48,500 of bonds to pay her indebtedness on account of the Darien bank, which are still unpaid, making $288,500 of bonds on account of these two banks which still remain a portion of the public debt, the interest upon which is paid annually out of the taxes of the people—and we may form some estimate of the amounts which the people of Georgia have paid and continue to pay in taxes, and suffer in losses, to sustain the banking system.

Again, in many instances, those who control the corporation may have great advantages in being able, if they choose, to obtain such accommodations as they may desire, by the use of its funds, when a favorable opportunity for speculation occurs. The dividends paid to stockholders are therefore no proper criterion by which to judge of the advantages of the corporation to those who hold its offices, and control and manage its capital and its operations; or of the sums lost by the people on account of the workings of the system.

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Thus far I have discussed this question upon the supposition that the liabilities do not exceed three dollars for every one of specie actually on hand in the banks to meet and satisfy them. This supposition is more favorable to many of the banks than facts will justify. The law of their charters only requires that their liabilities shall not exceed three dollars for every one of capital stock actually paid in and not three dollars for every one of specie on hand to meet those liabilities. As an illustration of the error of our present legislation in incorporating banks, suppose the amount of the capital stock of the bank be limited by the charter to $500,000 which is to be paid in, in gold and silver, by the stockholders. The charter then provides that the liabilities of the bank shall at no time exceed three times the amount of the capital stock actually paid in. The stockholders paid in the $500,000 in gold and silver. The directors of the bank may then, without any violation of the letter of the charter, incur liabilities against the bank to any amount that does not exceed $1,500,000; and that too, without any obligation on their part to keep in their vaults the $500,000 actually paid in, or a like sum. If they should take out $400,000 of their specie and invest it in real estate or other property, leaving but $100,000 of specie in the vaults, they may still contract debts to the amount of a million and a half, and may point in triumph to the language of their charter, and to the fact that the $500,000 of capital stock was once actually paid in, as their authority for so doing.

"This bank legislation of our State does not seem to have been well understood by our people. They have generally believed that banks, by the letter of their charters, were required to have on hand at all times an amount of specie one-third as large as the entire amount of their liabilities. The banks have understood the matter very differently, and have not only claimed, but exercised the right when they regarded it their interest, to extend their liabilities far beyond three dollars for every one of specie actually

on hand to meet those liabilities. By examination of their returns made to this department in October, 1857, it will be seen that at the time of the late suspension of our banks in Augusta and Savannah, the liabilities of one of them for bills in circulation and individual deposits, exceeded thirteen dollars for every one dollar of both specie and bills of other banks which it then had on hand. Another had only one dollar in specie in its vaults for every fifteen dollars of its liabilities for bills in circulation and deposits. Another had not one dollar in specie for every seven of liability for bills in circulation and deposits; and another had only one dollar in specie for every eleven dollars of its liabilities of the character mentioned above. It is true these banks had other assets, but those assets were not money. The question naturally suggests itself, how can such a currency be convertible into gold and silver-the money of the constitution-on demand or presentation? How can a bank with fifteen dollars of cash liabilities for every one dollar in specie, or even of five dollars for one, pay its liabilities promptly on demand? It is impossible. And how can its bills be justly considered safe as a circulating medium, or as money, if it cannot redeem them promptly on demand?

"In consideration of all the imperfections and abuses of our present banking system, I am of opinion that we should do all in our power to bring about its complete reformation, and if this be not possible, we should abandon it entirely. I am the advocate of no harsh measure that would either violate the legal rights of the present corporations (however unwisely they were granted), or that would bring distress upon the people by a sudden return from a paper to a specie currency. A reformation so radical, if attempted, must be the work of years. If the Legislature would continually refuse to charter any new bank, or to enlarge the capital stock of, or re-charter any bank now in existence, the system would gradually work itself out by efflux of time; and we might, without any sudden shock, return safely to the currency of the constitution, plant ourselves upon a firm specie basis, and rid ourselves of a system against which the great and good men who conducted the revolution and formed our constitution intended to guard their posterity, when they declared in the constitution that nothing but gold and silver coin should be made a legal tender.

"In two of the States of this Union banks are prohibited by constitutional provision; two others have no banks, and another had but two small banks, whose charters, it is said, have been forfeited by the late suspension. And I am informed upon what I consider reliable authority, that the late commercial pressure was comparatively but little felt within the limits of those States.

"Should our people determine, however, to continue the present banking system, and to charter new banks, increasing their number and thereby increasing their power in the State, I would respectfully urge the importance of guarding all charters with much greater stringency in the future. Let the charter of each provide that the entire liabilities of the bank shall at no

time exceed three dollars for every one of specie actually in its vaults and bona fide the property of the bank, on pain of immediate forfeiture. Let the simple fact of suspension of specie payment render the charter absolutely null and void. This would deter them from engaging in such wild speculations and over-issues as compel them to suspend in case of pressure. Let provision also be made that all executions issued against the corporation may be levied upon the property of any stockholder until the creditor be satisfied, leaving the stockholder to his legal remedies against the rest of the stockholders to enforce contribution among themselves. Let the bills of the bank in the hands of the people at the time of suspension bear interest from that time till paid. And let the Legislature retain the right, by express reservation in the charter, to alter, modify, or repeal it at pleasure. In my opinion it would be best for the Legislature to refuse to grant a charter to any corporation for any purpose whatever without retaining a similar power, should its exercise be required by the interests of the State or the public good. If, the corporation is unwilling to trust the people with this repealing power, how much more should the people be unwilling to trust the corporation without it."

Two years later, when the then recent election of Mr. Lincoln, the abolition candidate, as president, rendered secession and revolution probable, and when the State was preparing for a convention to determine her course, the banks again sought relief by an Act to legalize their suspension.

On the 30th of November, 1860: "For the general reasons against bank suspensions contained in the message of December, 1857," he returned the Bill without approval in an elaborate message setting forth the history of the question and the results.

The following extracts show the firmness and nerve of the Governor in the maintenance of his opinion of right :

"The suspension of specie payment by the banks is not for the benefit of the banks but for the benefit of the people! The constant efforts made by bank men to practise upon popular credulity, by the declaration of this strange absurdity, are not a little remarkable. If this be true why is it, when such a measure is to be carried, that our lobbies are crowded with bank presidents, bank directors and bank stockholders who are constantly besieging the members of the General Assembly with clamorous appeals for the passage

of the bill, while the banks with which they are connected co-operate with them for the purpose of keeping up the excitement by refusing to extend the smallest accommodation to the people till the bill is passed? Why is it that these gentlemen never take upon themselves to guard the people's interest and spend money to secure the passage of bills through the Legislature, except when it is desirable to pass a bank suspension bill? This is not the first time I have seen all their influences brought to bear upon the Legislature for the purpose of accomplishing an object in the midst of wild excitement and great alarm. The small number of members of the present General Assembly who were here in 1857, and voted for the bank bill of that year, will, I think, concur with me in the statement, that the excitement at the capitol in 1857 was much greater than the advocates of the present bill have been able to create on this occasion. The people then did not appreciate the favor conferred on them by the passage of the law.

"It may be claimed that the present political aspect of affairs requires the legislation proposed by this bill. In case the convention of the people of this State, when it meets in January next, shall pass an ordinance declaring the State out of the Union, on account of the refusal of the Northern States to abide by the Constitution, it may become proper to make an exception to a general rule, and permit a suspension for a short time: as a change in the relations of Georgia to the United States' Government might, for a time, produce some derangement in the currency which could not be anticipated by the banks; and they might, in such case, be entitled to a lenity to which they would not be entitled under ordinary circumstances. I do not admit, however, that it is either wise or just to pass an Act in advance which authorizes the suspension till 1861, without regard to what may be the action of the convention. If the State secedes from the Union, the Legislature will probably have to be again convened to provide for our future safety and welfare; and it might then be time enough to determine this question."

The General Assembly, yielding to the clamor for relief and fearing the injurious effects threatened, passed the act over the veto.

This bank controversy, and the unyielding opposition of the executive to everything that tended to result in wrong and damage to the people, through the defalcation of any banking companies, is one important part of her history, which in connection with the sleepless vigilance over the treasury, the sagacious management of the public property and judicious course in providing for and

meeting promptly the State's debts, gave to her Governor a measure of popular confidence and ardor of popular support that grew and strengthened with the severity of criticism, and the vindictiveness of opposition from his enemies. And it goes far to explain the 'true causes for the advanced position Georgia held among her sister Southern States in credit, the value of her bonds, and the confidence of financial men and institutions abroad.

ADMINISTRATION OF WESTERN & ATLANTIC RAILRoad.

This great public work, as a State enterprise, met with strong popular opposition from its inception based on the Democratic theory of opposition to internal improvements by the general government, and the political doctrine. that it is inequitable and unjust to tax the whole people for improvements to particular sections, and for the direct benefit of only a portion of the taxpayers. The friends and advocates of the road replied to the objections by picturing the effect of this enterprise when completed upon the general prosperity of the State and the enhancement of values, and consequent increase of resources, and the means of meeting and discharging the State's debts contracted for the building and equipment of the road, by the opening of a new outlet of travel and commerce to the ocean and gulf through the heart of this State.

Under the rapid historic development of the country within the State, and increase of trade and travel from beyond her limits, and the verification of the theories of the projectors and advocates of the road, the popular prejudice against it as a public work abated; and the people realized the immense value and benefit they had acquired