Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-11-26
mug C.TC op cRpDIT SYSTEMS.

' u IObR - 'oh eS
of the New York Herald, which presents some melan.
choly prognostics in regard to approaching catastrophe
in the credit system. The writer inchnes to the OPT
MON that the fraudulent obligations in which the States
have been involved in the chicanery aud TICK oil the
managers of the banks, will be absolutely repudlated
and annulled by the people, whom It was the policy oil
the gambling banks and spectators 10 make their VIC.
Tins through the Unauthorized acts and contrigance oil
their dishonest agents. 5,
II is remarkable that Mr.. Jefferson's forecast looked
with foreboding TO our making credit abroad, and was
pleased to see any symptoms of it's extinction. When
Minister at Paris, in 1887. he wrote 10 Archibald Stu
art of Virginia, afterwards Judge of the General Court
as follows:
fattering TO its citizens. Two circumstances are par
ticularly objected 10 us: the non payment oil our debts,
and the want Of energy in our Government. lhey
discourage commerce with us. IGrn ii TO be my OPT
Mon, that good riH arise from the destruction Of our
credit. / see nothing else mhich ran restrain orr disPo-
sition TO lurury, and to the change Of those manners
,chich can aionc preserre Republican G~oreTnment.'
If MI. Jefferson had lived until this day, 10 witness
the innovation Of this credit system upon the morals OF
those who assume TO be the '.good society OF the U.
S., upon our elections, and our political institutions,
he would have seen much more than the mischiefs OF
'Iuxury and change Of manners threatened hePuoii-
can Government, as the conse quence OF our deot-mak'
ing system. The history Of the last few years shows
The most shocking deprayity in whole classes OF men
connected in the gambling founded upon the stakes
made up of credits abroad.
We ask the reader to recur TO the specifications OF
the money article annexed rs 4 sample To show the
vast extent to which the credit system frauds have been
carried under the semblance of 'fair business transac-
tons" The Florida, Michigan, NJ ssissippi and lndi-
ana bonds all bear the faint of bank fraud in their orr
gin or negotiation. But if the corruption were confined
10 corporations, which have been the principal dabblers
in these great stockjobbing transactions, the disease
would not be SO alarming to our Republican Govern
ment. This, unfortunately, is not so. The epidemic oil
1 vfock i0hhipn has D0f merely PnurOSsed banks and EDe
c%ulators in stocks, but it has associated itself with every
species of speculation, involving members OF all oui
lie gislative bodies and politicians of every grade, whose
ambition and avarice both embark in turning legis
lation to account in making fortunes and attaining
official distinctions through the application of the
funds derived from Government credits. Railroads
canals, visionary improvements, wild land sPecula
tons, Autographed cities, and chartered institutions
are intimately associated together to build up private
fortunes; and their influence is brought to bear IN cleo.
tions, and on legislative bodies when elected, 10 diver,
Government from its public duty TO the advancement
Of the interests of the gambling classes. In this at
tempt, the constant effort has been TO make the chic
instruments of this mal-direction of Governmental the
banks-a part of the Government itself. A union oil
Bank and State has more dangerously threatened Re-
publican Government umong US, than "luxury and
change of manners Globe.
Nep York Hcrald's Money article.
November IL, 1871.
The result of the elections in Mississippi, turning as
il did upon the question of acknowledging the State
debt, or Of supporting the position of Governor McNutt
in repudiating, has, by giving a strong majority in
favor OF the Governors view, produced a great sensa-
ton in the moneyed circles. The effect of this med
sure will be immense on all the commercial concerns
of the country, and viii have a powerful bearing upon
the political difficulties that already exist. The mere
reputation of the debt of Mississippi alone is but a
small matter. But seven other States, whose aggre.
gate debts amount to 500, 000, 900, are in nearly the
same position, and all have the same plea for setting
aside their debts, and have as little means Of dis.
charging them. Up to tins moment, however, nc
Legislature has been found bold enough to ayow
The doctrine that a State, under any circumstances,
can be justified in dishonoring its own obligations
Two Governors, viz: Reid, OF Florida, and McNult, oil
Mississippi, have, however, plainly and unequivocally
told the creditors of the States that they would never
be paid. On this question McNutts party has thrown
itself upon the people with signal success. Here, then,
is the fret stand made by the people against the extra.
yacancc Of spectators and corporations, which have
controlled the Legislatures for their own benefit, and
10 the prejudice of the people. In regard TO the Terri.
tory of Florida, a more important question is involved,
and it is, whether The Federal Government will &C.
knowledge the debts contracted by the Territory. This
case was started on the creation Of the bonds, and was
decided by Daniel Webster, as follows:
Case Staied.-On the 18th February, 1888, the lie.
gislature Of Florida granted a charter to the Union Bank
of Florida. The attention Of D. Webster, Esq, il
asked 10 the 10th, 1lth, 18th, and 18th sections Of the
charter, and his opinion is requested upon the follow.
ing points:
1st. Whether under the acts Of Congress, and its
subsequent amendments, organizing the Territory o.
Florida, the Legislative power of the Governor ane
Council extends to the creation of banks?
Cd. Whether after the sale Of the bonds described II
the sections referred to, it is competent for Congress L
repeal the act Of incorporation, and annul TIE contract!
made under n9
Sd. Whether, by hereafter becoming a State, thu