Z 1853.000 Bank of the State of Mississippi Minute Book

History

In succeeding years there were demands for the creation of additional banking institutions, but repeated attempts to authorize the establishment of a branch of the Bank of the United States at Natchez were defeated by the Mississippi legislature. By 1830 the demand for additional banking institutions had become so critical that the Mississippi legislature authorized the creation of the Planters' Bank, a rival state bank. This act was in direct violation of the charter of the Bank of the State of Mississippi.

The Planters' Bank was to be capitalized at $3,000,000. Two-thirds of this sum was to be provided by the state including $1,000,000 of state-owned Bank of the State of Mississippi stock. The Bank of the State of Mississippi had enjoyed an advantaged position by virtue of its monopoly since 1809, and it had prospered because of its conservative fiscal policy. However, after the state diverted its financial and political support from the Bank of the State of Mississippi to the Planters' Bank, the fate of the former was sealed. Attempts were made by Stephen Duncan to restore the bank to its former position of preeminence before the Planters' Bank could be firmly established, but he was unsuccessful. Eventually the board of directors of the Bank of the State of Mississippi received permission from the Mississippi legislature in 1831 to begin ceasing operations prior to the expiration of its charter. The last statement of the bank indicates that it was solvent prior to ceasing all commercial banking operations on December 31, 1834.

Scope and Content

Series Identification

1. Minute Book. 1811–1835.