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

/ SoA VI Ou'
Lord,
-GoueYnor,
Treasurer,
The first section OF the supplement-
al act authorizes the governor to sub
scribe for five millions of stock, and
then say, the same to be paid for out Of
the proceeds Of the state bonds 10 Be er-
ecuted TO the SAID bank as already pro
r1ded for IN SAID charter" DC. Now
in what | ask, does this alter the 5tt
section of the original act? By the
filth section the bonds are to be issued
by other sections these bonds are &c
be considered as loan to the bank
The supplemental act recognizes all
this; it says, out Of the proceeds ofthe
bonds to be executed as proUided 70,
az the charter &C., How executed;
In the manner pointed GU! in the char
ter. The charter provides Tor their IS
suing, and their delivery to the bank
to sell. The supplemental act, says,
when the bonds 10 be executed and
deliUereda as aforesaid, shall be sold in
the manner pointed out-then out n
the proceeds oftte bonds so sold, we will
pay to the stock. There is no aItera-
ton of the 9Th section of the original
charter in this. The question as to
the disposition Of the proceeds, is who'll
ly different one from the authority 10
create the debt and pledge the states
ialth Tor its repayment. The consti-
tutIonrequires certain formali:ies in or
der to create the debt. No such for
malltles are required to authorize a
subscription for stock In state iDstitu-
ton, nor to release promise or debt
due to the state. This can be done
by ordinary acts of legislation. Tt lis
true, the bank, by the 9TH section agrees
to pay the bonds to be issued under
the fifth section, and it is also true.
that the legislature, by the supplement
tai act says, we release you from the
promise as to the payment Of the five
million of dollars, and take stock 10
that amount. This alters in part the
9TH section; but this section was no part
of the law, j. e. the section referred.
authorizing the bonds TO issue, aud con-
sequently was subject 10 Legislative all
Grafton.
Its again said, the supplemental
act creates new debt. The ORIGINAL
debt proposed TO be created. was S15.-
100000. lift creates a new debl. &c
coufse,it would add SIS, OoO, 900 more
which would make the proposed debt
$50, 100000 instead of SIS, 500. 900.
The debt of the state was created IL
the original act. She could owe *
the bont -holders that amount and 40
more, provided all the bonds authori-
zed by that act had been issued. This
debt, the Union Bank, BY the 9TH sec
ton, promises to pay, and the legisla-
ture, BY The supplemental act, says to
the Union Bank, we buy your stock 70
the amount Of 100000 and absoIye
aud release you from your promise as
t0 the payment of that amount of the
boAds.
i / lend my note to Al for one thou
sand dollars to raise money on, and he
promises TO pay it when due, it is nv
debt, although | have his collateral
promise TO pay it. IL A does not paw
i | must. How much am | indebted
The answer is one thousand dollars.
Suppose, then, I buy slave from A
Tor 5000, and release him from The
payment ofthat much Of my note. how
much do ! still owe: TIE answer :
$1,000. The only difference IS. that
before bought the slave, | had the
promise OF a to pay The whole Of Ibis
debt; after the purchase of the sI ave
| released him from paving oee
hall, and Of course I then onIv had
n1s promise to pay one half instead &c
the whole Of the debt.