The Ohio Democrat. [volume] (Canal Dover, Ohio) 1840-1900, 1841-12-09
From the Spirit Of the Times.
From the Spirit Of the Times.
THE MISSISSIPPI BONDS REPU-
DlATION.-,WHO THE SWlNDLERS.
ARE

Wo nave WdNeu Win 6OU0 dOAioV IOI
full history Of the present political and financial
affairs Of Mississippi, as the cause and devel,
opemen. Ofibe recent Democratic triumph IN
that heretofore greatly abused State. We
have heard much said against the people for
their alleged attempt to repudiate, their State
debt, while Governor McNuu and The newly
elected Executive have been denounced as
wholesale swnders, Fl, for a life Of servltude
10 the Pententiary.
We are extremely happy to find that all the
abuse which has been heapeG upon the Cover
nor'aRd people of Mississippi, is entirely un-
Just, and founded on erroneous Impressions.
The saddle is now placed upon the right horse,
and instead Of the people being swindlers and
dishonest, they are found as patriotic and as
honestly disposed as those of any Stae in the
American Union.
Il would now appear that there never was n
bolder, more daring, and outrageous piece of
swndIiug than that which has been practleed
upon the very people who have been denoun-
ced with the vilest epuhets. Bdd\e, and his
gang Of gambling spectators, have been the
eaase Of the whole difficulty. A complete hiss
tory Of the matter would require too much
space 10 our papar. We will endeavor to give
birds eye view Of the case, so as TO be Suf-
fcien,y Ineligible TO our readers.
Under the reign and seductive influence Of
spectators and Bank managers, the Legisla-
ture of Mississippi passed law for the issue
of seventeen millions and a half of five per Ct
State stock. as basis for banking. Ofthis
sum, two millions we're on account Of the Plan
TORS Bank. This the people go not objectto
pay. The remaining fifteen millions and
half were for he establishment fihe Union
Bank. the sum actually sold by this Bank
>waa five millions Of dollars. The sum the
Anti Bond Party insist was fraudulently is
sued, and should no, be paid by tax on the
people.
The constitution Of Mississippi, in order to
protect the people agalnst the inconsiderate
and prolllgate acts of their representatives. has
eugrafied upon it ealutary clause 10 the eff
fec, that no law shall ever be passed 10 raise
money Upon the faith of the State, unless it be
agreed to by both Houses of the Legislature,
atths same time being, and he approved Of BY
succeeding Legislature, after the proposed
law had been duly published in the papers Of
the State three mon,hs previous 10 the general
election.
The Union Bank bill was passed in 1887,
and was approved by the Legislature of 1888.
The law provided for bank with a capital Of
fifteen millions and half, 10 be raised by loans
obtained by the directors of the institution, in
shares Of $l00--the books Ct subscription to
be kept open forty days in each year TIL the
whole amount of l50, 900 shares had been ia.
ken. To facilitate the loao, it was provided
IN the act that the state should be pledged for
the security Of the capital and interest, by the
af aIa ia hon ~ tha
interest, BY the state bonds signed by the Cove
ernor, 10 the order ofihe bank. 1t was also
provided ,ha, the capital and interest Of the
hunds should be paid by the bank; as they fell
dle, and 10 secure such payment, subscribers
10 the bank stock we're give mortgages. The
bonds and m ortgages for fifteen millions, sub
scfibed by the stockholders, we're 10 be depos-
ted in the Office of said institution, "as secu-
sty for the reimbursement Of the capital, as
well as the interest, Of said bonds granted by
4he stale." After the stock Of The bank was
subscribed 10 the manner before provided, and
a president elected, notice was 10 be served on
the Governor, "who will tbereupon execute 10
10 the bank from time to time, bonds in amount
ptoportioned 10 the sums subscribed and secur.
ed TO the satisfaction ofthe directors, as re-
CURED by the charter" The profits were 10
remain 10 the bank, until the first bonds be-
came due III twelve years.
Ten days after the passage Of this bill, the
Legislature passed Supplementary act, re-
'pealing that par, ofIhe original charter which
gave the state one-tenth of he profits of the
bank, and credit Of $500. 900, while it ALTO
provided that comms sioners should bo appon-
ted TO negociate AID sell the state bonds, in
anyforegn or domestic market at their full
par value. This supplementary act, howev-
or, which made the state he principle, instead
Of the security inaihe matter. was never subs
milted TO the people, as required by the Con-
sli,uuou; consequently, ii was without legal
force and ef,ct nearly all the conditions and
terms on which The people agreed TO become
security for The bonds The Union Bank haV-
ing bean altered from the original act.
Commissioners were appointed, and five
millions of The sleck were offered at the rate of
four sh,lIings and sxpence sterling to the doI-
la. The stock was purchased by Nicholas
Biddle on credit, the B INK Of the United States
guaranteeing the payment. BY selling the
bonds on credit, and changing them from dol
tarsto pounds, there would be loss Of overA
million OF dollars in the time they had to run.
About the time the supplementary bill was
paesed by the MssIssIpDi Legislature, with