lation of this bank had been reduced to $226,993, while it held specie $201,261.
The bank circulation of this State was $8 millions in 1836; $1.7 millions in 1841; $2.4 millions in 1846.
In October, 1841, the State owned $325,000 of the stock of the Bank of Darien. Of the stock formerly owned by individuals, the bank had bought in all but $94,145. Therefore the State owned the wreck, and it was a question if it was not liable for all the debts.[1]
At the session of 1841-2, the Legislature began by an enactment, December 10, 1841, that if the banks which were liable to forfeiture would resume by January 1st, all proceedings should be arrested. On the same day the charter of the Darien Bank was repealed. The Central Bank was ordered to take its assets and wind it up, extending the loans if necessary or expedient. The Central was also to receive the notes of the Darien Bank in payment of debts to the Darien. Interest on the debt of the State was to be paid at the Central Bank. The act for issuing eight per cent. State bonds to redeem the circulation of the Central Bank was also repealed, and that bank was ordered to make no loan until it could hold its circulation at par with that of specie-paying banks. No note of an insolvent person might be used as banking capital on which a note issue might be based.
November 24th, banks were given the right to recover damages if they could not collect balances from other banks. The free banking act was amended, December 7th, to authorize the Comptroller, if banks did not redeem, to foreclose mortgages in the banking fund and sell land and slaves by the same process by which personal property might be sold. The president and directors of the bank were to indicate which mortgages should be sold. December 8th, the Central Bank was authorized to issue ones and twos to the amount of $300,000, to be issued only in exchange for larger notes. The prohibition of small notes was maintained against the other banks. December 10th, it was directed to sell the stock owned by the State, in the Bank of the State and the Bank of Augusta, and with the proceeds to redeem its own notes.
In the following May, there were reports of outrages in Georgia to prevent sales by the sheriff, and judgments by the court against debtors.
In the report of the Bank of the State of Georgia, April 26, 1842, it was shown that the dividends must be passed, which had occurred only three times before,—namely, in 1823 and 1824, since 1816. Three of the branches were withdrawn, defalcations having taken place in two of them and the parent bank being under a heavy burden to redeem their circulation. The report of this bank for 1843 showed that the circulation was still but slightly in excess of the specie stock.
December 27, 1842, all the solvent specie-paying banks were allowed to issue ones, twos, threes, and fours, for not more than five per cent. of
- ↑ 18 Georgia, 73. See page 370.
