Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-09-01

eotiaons with Mr. Deiaed upon portion Of their loan Of
per c and ii legislature had not nterfered the whole
loan would yielded to the State larger benefit The
Florida Union Bank in reply to the committees report
argue thus:--
The charge next TO be examined, is the most extraor
binary as well as the most alarming, sc. His'Tha al
bonds OF the Territory have been sold on terms
whic yielded premium Of 100 per centum; yet
they not been sold par and have, thereby become
n and roid" The words of the charter are, that the
discount for less than the amount
manned, and expressed in said bond" The term par is
not used but to its use by the committee as substitute
for the terms of the charter no exception is here taken.
In adopting the term par, the committee insist that 1t
Tallahassee in the vaults OF the bank 1t must be at
the place IF sale, as they contend.
The Boards will suggest few cases. to test the sound
value Of the standard erected by the committee.
BY that standard sale in Natchez or in Vicksburg, at
par would be sale al par although it would place in the
vaults the bank only about 80 cents Tor the dollar
The exchange between Mobile and New York is IL per
cent against Mobile Would New York bond, if SOLD at
pqT Mobile, produce par in New York; :.
For 20 out OF % years commencing in $780, and ending
in 1915, exchange London was at discount IN fhlaue
pha New York; the rate of discount varying from one
10 nineteen per Would bond OF New York. or Penn.
slvania sold in London at par hay pa inc par value oil
the bond into the New York or rhilad1pa .,
dollars, for which the bonds we've issued could be OBJ
tanned in the territory The Object othe legislature was
import capital not TO employ capital already suos'ns
in the territory Hence the provision for assignment any
thers without within the territory. They might be
made payable IN any city in the United states IN Europe
! in Asia, even III Africa.
As London is the great stock market of the world and
as the of stock naturally prefer making
such will enable them to receive both
interest and principal home has become the practice
some OF the make their bonds able principal
aud interest in London Some of those States have sent
agents London to negotiate sales Others negotiate the
sale at home to brokers merchants who purchase for
the London market The bonds of some Of the States Xix
those Florida, forbidden to be sold for less sum
than g. n.unt named and expressed on the face Of the
boa aud have heen sold brokers and Others for the
foreign market for the number of dollars expressed in the
bond, without suspicion that the prohibition had been
violated. - 49,
The alsurdity of the doctrine of the Committee will be
clearly shewn by few cases. as by the most length
| A merchant in Tallahassee wishes to make remittance
New York of $1,000 and purchases of the Union Bank its
check upon New York for the amount named for hi h
he pays the Bank sO7d man of plain good sense would
that the Bank charged premium OF 4OO per cent
sold its check at discount :" T. r. B. may hold the note
of r. H. for $1,000 pay able in New York three six
months hence. Wanting the money here in Tallahassee,
he broker in New York to be sod and
directs the proceeds to be sent to him in check notes
the Union Bank The holder sells the note for $780, with
which he purchases check the Union Bank for 1904
aud RENTS the same T. r. b. supposes he has obtained
FOR the note premium of S7i. The Committee say he
has parted with the note at a loss.
These instances sufficiently show the ground which
the negoaiols of the bonds mpeached; the cast
of the State Of Illinois being precisely similar to that
Florida On this slight basis in the madness of party spi
r the idea of repudiang the debt formed and which
has been of such injurious nhsence to the interests of tn
landholder although the design entertained
riously for moment out of this has grown the late sui
brought against Mr. Deafeld by the Fund Commissioner
oIlliuos The decision in the has not been oica
given rumors such TO leave but little doub
that il is in favor of Mr. Deafcl That gentleman no
alone in the position he occupies in regard to the
the London bond holders among whom is the Unite
States Bank agency and Wright Co. to the O
SsoO0.Oo0, similarly situated. The agitation of h
subject had good effect that Of elictng expires
sion of universal Indignation against all those who hav
dared for "a the idea that the I'm
can peo,le, under any ercunstance would wifully de
fraud their debtors day of severe reribution
for those SPECTATORS who have hupbuggcd Pcnnsy
into countena acing the acts of broken bank.