Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1841-08-17

sand seven hundred and cighiy-one dollars and thr
~ cents. Surely such a sale cannot be binding on
the State Of Mississippi. The faith OF tins state
was pledged for the payment o. those bonds only up
on the condition that they were sold at not less than
their par value. The state expected the iul
amount Of those bonds 10 be paid into the vaults Of
the Mississ ippi Union Bank II nc foil amount had
been received and the currency "a which they were
made payable not have been ohanged, the bunk
would have been better enabled u indemnify the
state.
Il apocars tl.at the bonds were endorsed in blank
by the officers ct the bank and delivered 10 the Com
m - ioners charged with Their sale. Neither their
power Of attorney letter 81 instruction authorized
those gentlemen 20 hl up SAID endorsement oy max
ing tie bonds ard coupons payable IA pounds stcr-
Ing Of Great Britain at the rate q four shlllngs
and sixpence 20 the dollar. III sucn change had
been made on the face OF the bonds after their exc
cuton and delivery to The bank, tie parties making
the alteration would have been lnmurcd ~ the PEN
ltentlary .or the offence. II viii be no answer 10
the argument 10 alcge that the endorsement could
only bud the MIs-.ssippi Union Bank. That m
stitutlon has undertaken % pay both The principal
aud interest oi the bonds. II the bank compel
ed u pay the one million clgLty-'o thousand
seven hundred and ighiy-:o dollars and tArty
for the loss sustained by the credit sale Vi
the bonds and the change in the currency IA winch
they we're made payable, her means wiIl b. r..
dueed that amount and the risk q the ~ re
thus greatly Increased. The state viii
ing % intrust her credit 10 the bank the CON
ditious prescribed the charter The fai,h Of tins
government has never been pledged for the lie
gal and fraudulent sale If those bonds.
THIS Is a constitutional COY crnnent, and all It's
officers take oath to support the constitution Of
the State and faithfully to discharge the duties %
their respective Offices. Her CHIEF Magistrate Is
required TO take that the laws be faithfully eX-
ecutcd. lie would be recrean, TO his trust and VI
olatc his official oath were he to suffer the laws OF
Ia 20, no cd nd nc fsff ON
disregardcd.
Tie contract for the sale of the State Bonds show
that the statutes OF the State in relation TO the
bonds, made a part of the contract. The pur-
chaser was well aware of the conditions on which
they were ISSUED, and knew that the purchase was
neither sanctioned by the constitution and law OF
this State. of Pennsy lvania. The contract was
guaranteed by the Bank of the United states. The
whole of the purchase money was paid by that IN
stitution. The OF Mr. ibddle was merely us-
co IN the contract as device. 10 get round that
clause IN the charter Of the Bank OF the United
States, which prohibits her from dealing in State
stocks. The currency IN winch the Bonds were
payable, was changed from dollars 10 pounds ster-
ing give false cuoring to the transaction, and
make IL appear that the bonds sold at par val
ne. The principal Is universal that fraud vitiates
all contracts. The commercial law of this State
relative TO the negotiable paper, different from
that Of most other countries. The transfer OF bonds
and notes, does not prevent the drawer from setting
up any defence against an innocent purchaser which
could be made available against the original payce
The state, therefore, denies all Obligations to pay
the bonds held trust by you for the following
sons:
LIST. The bonds were sold on credit.
ID. The currency IN which the bonds were made
payable was charged from current money of the
United States to Pounds Sterling OF Great Britain
at the rate OF four shllngs and sxpence 10 the dol
lar.
no Of al frap
18th. The Bank of the United States was not au
thorized 10 make the purchase.
9th. The Bonds sold at less than their PAL
value, IN violation of the charter of the bank
The money paid for those bonds did come in
TO the State Treasury. The officers OF this Govern
mcnt had no control over its disbursement Tie
bonds were disposed Of in August, 1896, by colu
sion and fraud, violation OF the constitution anc
laws of this State. The Mississippi Union Bank
and the Bank OF the United States, were parties L
this unlawful transaction. You have the endorse.
ment Of both these institutions and 10 them vou
must look for payment THIS state never viii pay
the five millions OF dollars of state bonds issued
june l53S, or any portion OF the interest due, OF
to become due thereon
When ascertaneG in January. 1880 the term.
on which the bonds had tcen sold | communicates,
the same to the Legislature and denounced the sale
as illegal. vt that time only two millions of dol
lars had been paid the bonds by the Bank of TIC
United States. By Proclamation ! subsequently
issued, the sale OF the second five millions Of dollar.
of State bonds, delivered To the Mississippi Unior
Bank, was prevented. absolutely refused 10 exc
cute the last i've and half millions Of dollars d
state bonds demanded by that Institution. These
decisive measures prevented the Illegal disposal o
ten aud half millions of dollars Of State bonds, ano
will convince you that the Government of this State
never has countenanced and cannot be made re
sponsible for, the fraudulent OF the Miss
Union Bank.
| have forwarded to your address. the Journals Of
the Legislature Of tins State for the years -lO and
l-Il II Will afford me much pleasure TO forward
YOU such other documents YOU may desire
am anxious that the bond holders should be possess
ed Of al the facts in relation the issuance and DIS
posal of the bonds held by them our great eSpo-
renee in commercial affairs, no doubt has made You
familiar with the principle that parties contract
with reference the law, and that constitutions
al and free government every act Of public function
airy is merely an exercise OF delegated power en-
trusted to him by the people for a specific purpose,
and that his acts are the acts of the people. only
while within the powers conferred upon MIN.
am. gentlemen, very respectfully,
I Your o5't servt.
i \. G.. M'NUTT.
Messrs Ho?E * co.
\ Amsterdam, Holland.