Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1841-01-13

Tor the benefit oil all Concerned, and
repudiating the sale olive millions Of
the Bonds in the year 1885, on account
offraud and illegally. The ninth sec
ton ofihe seventh article Of the Con-
stitution, provides, that mo law shall
ever be passed to raise loan of mon |
ey, upon the credit OF the State, or to |
pledge the faith of the State, for the
payment or redemption of any loan or
debt, unless such loan be proposed in
the Senate or House Of Representa-
tives, and be agreed to by a majority
of the members Of each House, and
entered on their Journals, with the
yeas and nays taken thereon, and be
referred to the next succeeding Lee
gislature, and by published for. three
months previous to the next regular
election, in three newspapers of this
State; and unless a majority of each
branch Of the Legislature so elected,
after such publication, shall agree to,
and pass such law; and in such case
the yeas and nays shall be taken, and
entered on the Journals Of each
House" 1t is very clear that no fun
damental change can constltutionally
be made in the charter of the Bank
without the action of succeeding Lee
gislature,-and the existing charter
does not authorize the hypocation of
any State Bonds, or sale at less than
their par value, in cash. Bank char
tiers are special grants of privileges,
and being in derogation of private
rights, must be construed strictly
| great injury must result from further
sale Of State Bonds.
The power ofthe Legislature to re-
lease the private stockholders from
their obligations, is, at least, questiona-
Bile; and its policy clearly wrong. They
have generally been favored in the dis
tribution ofloans; and have controlled
the Institution during the last year.
The Directors elected by them have
denied the right of the State to require
the Bank to resume specie payments,
or to go into liquidation-and have,
through their President, indirectly
charged the members who voted for
the Bank law OF the last session, and
the chosen Executive ofthe State, who
approved il, with wilful violation Of
the Constitution; and have insisted that
none but stockholders, were eligible
as Directors, on the part Of the State.
The best interests ofthe stockholders,
creditors and debtors oftbe Bank, and
the character of the State, demand
liquidation Of the affairs of the Insti-
tuition.
twill be seen by the documents ac-
compaDying my annual message in the
year 1899, that FIVE millions Of dollars
payable in five equal instalments, on
the first nay of November, 1888, and
on the first days of January, March,
May and July, 1889; interest accrued
on the Bonds, from the day of the
contract. The punctual performance
Of the same, was guaranteed by the
Bank Of the United States, and the
purchase was undoubtedly made on
account Of that Institution, and the
payments made with her funds. The
charter Of tn Bank Of the United
States contsist the following clause,
"'The said Corporation shall not d.
rectly, or indirectly deal or trade in
any thing except bills ofexchange gold
and silver bullion, or in the sale of
goods really and truly pledged for
money lent and not redeemed in due
time:-or goods which shall be the
proceeds of its lands-neither shall ii
make any lean to any foreign Prince
or State, unless previously authorized
by law. The said Corporation shall
not BE- at liberty to purchase any stock
whatever except their own stock Treas
ury notes; or public stocks cIeated by
the Government of the United States,
or of this State, or stock of loans to
any of the incorporated companies OF
Of this State, for the construction and
improvements of roads, bridges, and
canals, or inland navigation, or other
stocks which may be bona 6de pledged
as security for debts to the Bank, and
no, duly redeemed. Ut therefore fol-
lows that the purchase by that Institu-
ton was illegal, land in fraud ofits char
actor. l have understood that the
larger portion of those Bonds have not
been sold by the Bank, but are hypoth-
ecated with European Bankers, and
loans obtained upon them. Ii is we'll
settled principle oflaw on time, no le-
gal sale can be made except for cash.
The charter ofthe Mississippi Union
Bank is expressly made a part Of the
agreement for the sale ofthe State bonds
in 1888. That sale was illegal, and
fraudulent, and either of the following
grounds are sufficient to sprevent its
having any obligatory force on this
State.
i 1st. The Bank ofthe United States
IS prohibited by its charter from. pur-
chasing such stock either directly oil
indirectly.
1t was fraudulent on the part of that
Bank, inasmuch as the contract was