BANKING. The Bank of Mississippi at Natchez was chartered in 1309. In 1813 it was created a State hank, with a capital of $3,000,000, the State participating in its management, and pledging to it a monopoly of the banking busi ness of the State until 1840. In 1830, however, the Legislature broke the pledge by establishing the Planters' Bank of Mississippi, with a capital of $3,000.000, and making it the financial agent of the State. This forced the first hank into liquidation. For a few years the Planters' Bank had a practical monopoly of the banking, but from 1335 new banks followed in rapid succes sion. The most daring venture was the organi zation of the Mississippi Union in 1838, with a capital of $15,500,000. which made it the largest State hank in the United States at that time. These bold undertakings in the very midst of a financial crisis could hut lead to one result. There were numerous failures in 1838-45; in 1855 there was but one chartered bank in the State. A revival came in the eighties, when na tional banks were introduced. Stringent banking laws have given to the State banks the confidence of the people. and their number has increased tenfold since 1888. In 1902 there were 17 na tional banks with a capital of $1,530.000, sur plus $549,000, cash, etc., $561.090, loans $4,957. 000, and deposits $5,257,000; 92 State banks with capital of $5,408,800, surplus $971,857, cash, etc., $1,550.9211, loans $19,467,101, and deposits $16, 297,3'25. There are no savings banks in the State.
FixANGE. The early financial history of Mis sissippi is elosely connected with the organiza tion of the banks iu the State. A huge State debt of $2.000.000 was created in 11330 in order
to acquire shares in the Planters' Bank and in 1838 $5,000,000 for shares of the Union Bank of Mississippi. The financial crisis of the thirties brought the banks to insolvency in 1840; this in voltred the State in an enormous debt. Infringe ments upon the Constitution in the floating of the debt led to its repudiation by a popular vote in 1352, which was finally disposed of by a clause in the Constitution of 1875. The Civil War again involved the State in serious financial dilliculties and also reduced the general economic condition of the State. The 'mmg bag' rC•gime which followed aggravated the situation; the ex penditures grew from about $500,000 in 1807-69 to more than $1.500,000 in 1871-75, and the tax rate was increased in these years proportionately from 1 mill to 14 mills. An organized protest from the taxpayers in 1874 was the result, and a gradual diminution of the State debt. expendi tures, and rate of taxation followed. In Septem ber, 1901. the payable debt was $676.7119 and the mat-payable debt, for the interest on which alone the State is responsible, was $2.210.2'27, making the total indebtedness $2,887,020. Total receipts for the year ending September 30. 1901 were $2,436,048; total disbursements, $2,229.996. leav ing a surplus of $206,052, and the each balance was $828,453, The main source of income was a direct State property tax which yielded almost 85 per cent, of the total income; of the disburse ments 30 per cent. were for common school pur poses and 13 per cent. for redemption of the State debt.