Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1841-10-26

luli force. In Sucu case u thS 1ses~
has to pay the bonds, the bank will be
accountable to her for the amount
Whereas, under the supplemental ACT
the bank would not be accountable Tor
the Eve millions subscribed for by the
State. The State in that event, IN
lien Of the FIVE millions would have
the stock she bought from the bank,
and If the stock turns out 10 be worth
double that amount, it would be ner
gain, il IT deprecated, it would 90
her loss.
So far then as the right 10 issue the
bonds and deliver them to the IN
ion Bank is concerned, | have not
the slightest hesitation in saylng' that
the State is legally Donnd to pay
them.
All other objections TO the payment
ofthe bones arise from their subse-
ouent negotiation. These objections
are all contained in the latter OF his Ex-
cellency, the Governor, TO Hope &
Co. | will examine his objections IN
detail, and see whether in a legal Uae10
there is any thing in them. And here
/ must be permitted TO say, with all
due respect for the Executive, that It
is matter ofserious regret, that his
Excellency, whose judgment was SO
clear and discriminating as to the con-
stitutionality of the law creating the
bonds, should hastily in matter so
deeply affecting the honor and good
name Of the State, have repudlated
their payment,in The name Of the State,
without any authority than his own
mere assumption, and on grounds
which, in the eye of the lawyer and
the Judge, are still more indelensible
and wanting in legal accuracy, than the
original power to issue hem.
In his letter to. Hope & Go. he says,
''the State" i. e. the Governor, (for
the State had not then, nor has it yet
acted on the question: denies all OBJ
legation to pay the bonds for the follow
ing reasons"
1st. The bonds were sold on a
credit.
I'd. The currency in whichs the
bonds were made payable was chang
ed from current money of the Uni
ted States to pounds sterling, at the
rate of four and six pence 10 the
dollar.
30. The contract of sale was fraud
ulent.,
18th. The Bank ofthe United Safes
was not authorized 10 make the pur-
chase.
5th. The bonds were sold atless
than par value in violation Of the char
Ter Of the bank.
Thecommissioners appointed TO sell
the bonds sold them to Mr.. Biddle for
five millions Of dollars, TO be paid in
installments Iof one million dollars
each on the lst November, 1888, 1st
January, 1889, Is: March, 1889, 1st
May, 1889, 1st July, 1889. The
bonds were endorsed inblank, and the
endorsement was filled up by the COM
missioners, when they sold them, as
follows: "The President, Directors
and Company of the Mississippi Uni
on Bank do hereby designate the
ss5vrrvy of ,i.u BvrrFs +lae gJ..itod
States, in the city of London, as the
place of payment of the within bond
and interest; and hereby assign and
transfer the same for value received, TO
bearer beng equal 10 four hundrcd
and t11y pounds sterLiag,) and guaran-
tee payment ofthe same at the place
designated.
The designation Of the place of
payment was authorized expressly by
the 9th section of the charter.
His Excellency says this endorse
ment changed the currency in which
the bonds were made payable from
current money Of the United States to
pounds sterling Of Great Britain at the
rate of four shillings and six pence to
the dollar, and this difference, he says
causes loss 10 the State on principal
and interest to be paid of nine hundred
and one thousand four hundred and
forty-three dollars. The whole ofttis
statement as falacious. In England
the currency is pounds, shillsags and
pence. In the United States it is dol
lars and cents. The commissioners in
the endorsement do not (as the Cover
nor alleges, undertake to change the
amount of the bonds or alterthe liabil-
ity Of the State. They only say in
their endorsement, that the two thou
sand dollars (Anerican culrency,) IS
equal to four hundred and fifty pounds
sterling, and they guarantee the pay
ment of the same. What do they
guarantee? the payment Of The bond.
How much is the bond for?-S2, 900,
American currency, equal to $50
pounds sterling, or vice yersa, four
hundred and fifty pounds sterling,
equal to $4,000 American currency.
Suppose the commissioners were mis-
taken, and that four hundred and fifty
pounds sterling amounted to more than
~ 900, could itbe recovered-surely