Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1841-10-21


the bank special agents efths bank. Now
wha, Is lie law in regard to special a.
cent, ! IIthey transcend their authority,
their act will not bind the principal but
!, is a clar and salutary rule in relation
10 ace ncns, that where the principal with
knowledge Of all the facts adopt or ac'
ouie,ces n the acts done under the as
sumed agency. he canno, be heard AFTER
wards &c impeach them, under the pre-
tence that they wore done without au~
tboritv ,r even contrary TO instructions.
2 Ken,s Com. 6le. When the princi.
pal IN. bank here) is informed what has
been done, he must dissent and give no.
tice of il in reasonable time ; and If ne
does not. his assent and ratification will
be presumed; there is no principle OF law
better settled. Then the question occurs
did the bank repudate the sale Of the
bonds I Did it not ac9uiesce IN their sale
A,suredy il did and received, used and
appropriated to its own use the proceeds
arising from that sale. Did the State
ever repudiate and condemn the sale p
Did she no, stand by and in fact acqul-
escence in and ceAfrm the act ? Did not
the legislature, the representatives OF the
people, by solemn resolution confirm and
ratify the sale ? Let the journals OF that
body respond to these questions.
But might go on and prove, that whe~
Their the bonds were legal or not, that
the State being stakeholder in the bank
to the amount Of five millions Of dollars,
that she would be ultimately bound to re-
fnnd the money for which the bonds were
sold, with legal interest, but it is useless
Another ground which the Executive
assumes IS, that the bonds were sold on
credit. Now if the distinction taken is
correct, that there is difference between
selling a, par and selling upon credit,
where is the prohibition in the charter Of
the bank which forbds the commission
ers to sell on credit. There is no such
prohibition, and in the absence Of any ex-
press, the bank had an implied power to
sell the bonds upon credit.
But it is said that the currency IN which
the bonds were made payable, was chan.
ged from current money Of the United
States to pounds sterling OF Great Brit
ain, at the rate Of four shillings and six
pence TO the dollar, and therefore the sale
is void. 1t will be remembered, that the
9Th section Of the original charter author
lied the bank to fix the place where the
principal and interest should be paid, &c
Then the bank had the right to name and
designate the place oil payment. It's pow
er in this respect was general and unllm
tied. 1t might name or designate any
point upon the globe for payment, and no
one could legally complain. But it is
said that the currency in which the bonds
were made payable was converted into
British currency, by which the State will
lose upwards of a million Of dollars. Blu,
his Excellency is mistaken in his legal
construction Of the terms Of the endorse
ment Of the Union Bank; that endorse
ment is as follows, to wit:
"The President and Directors of the
Mississippi Union Bank do hereby desig
nate the agency Of tho Bank Of the United
States in the city Of London as the place
of pavment Of the within bond and inter
est, and hereby assign and transfer the
same, for value received, to bearer, being
equal to four hundred and fifty pound,
sterling, and guarantee the payment o.
the same at the place desi gnated.
II. G. RUNNELS, Prcs't.
S. Twin, Cash'r,"
Now what is the true legal construc.
ton Of this contract or endorsements
What did the bank undertake to assign
and transfer to the purchaser ofthe bond
Let the plain language Of the endorse
ment answer. The bank designates the
place of payment at London. The place
Of payment Of what? OF the bond and
interest. What is the meaning Of the
phrase "of the bond and INTEREST,"" I,
means the principle and interest; which
is two thousand dollars, and five per cont.
interest on that amount? In what kind
Of money! In the current or lawful mon.
ey of the United States. Why do | say
that the bond and interest is 10 be paid
in a sum equal 10 two thousand dollars
in the lawful money OF the United States
Because the bank only undertook to as
sign and transfer the bond, which binds
the State to pay only two thousand dol
lars in the lawful money Of the United
States. Now by the endorsement the
bank undertook TO pay the bond in Lon
don. The amount Of the bond is two
thousand dolars--a sum which the par
ties 10 the endorsement have said was
equal to four hundred and fifty pounds
sterling Of Great Misunderstanding the
pound Sterling at 444.
Let mo distinctly state my argument
The more statement in the endorsement
that the bond and interest, or two thou
sand dollars and interest is equal to foul
hundred and fifty pounds sterling, con
stitutes no absolute and unconsttiona
promise or contract to pay in pounds Ster
ling. the parties to the endorsement
merely agree that two thousand dollars