Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1841-10-19
From the Vicksburg Whig.
THE LIABILITY Or THE STATE
TO PAY THE BONDS ISSUED
FOR. THE BENEFIT OF THE
UNION BANK.
BY GEORGE s. YERGER.

You have repeatedly and urgently so.
licited me 10 give my opinion in writing
"whether the State is legally bound TO pay
the bonds issued for the payment Estate
Stock, subscribed for by the Governor in
pursuance ofthe first section of the Sup.
Elemental Act, Incorporating the Missis-
sippi Union Bank" have hitherto been
unable, from the pressure of other engage
ments, to comply with this request, but
it affords me pleasure to do so now; and,
after full and mature examination OF
the different questions involved in this in
quiry, the result has been a clear and de-
cided conviction, that the State is legally
bound 10 pay them. This opinion is has.
ed entirely upon legal grounds It's the
result of candid, and trust, impartial
investigation Of the subject.
The liability of the State, to pay these
bonds has been objected to on various
grounds. The power of the State or of
the Legislature to create the debt has been
strenuously denied before the peopIe-.but
admitting it TO exist, it has also been as.
sumed that in the execution and delivery
of the bonds, the constitution has been
vlolated,and that in their sale and negotia-
tlon,smportant conditions and restrict o1s
have been wholly discrepancies
These objections cannot be legally sus-
tanned.
The right of the legislative department
of the government, independent of consh-
tutlonal restrictions, to create a debt for
State purposes, as to to aid or assist State
institutions, by loans, subscriptions for
stock or to promote other objects of State
policy, | consider as having long been
settled question in the jurisprudence of
the States composing the Union, And
were it not, that know the fact to be 9th.
erwise, should have supposed that
no man of ordinary capacity or informa.
ton, would at this day have been bold
enough to deny such right.
This power necessarily results fIom the
ofall civilized communities.
The people cannot assemble in person
and make their own laws-their number
their avocat:ons render this impossible;
hence the powers which they could exer-
else, if all were assembled together, for the
purpose Of convenience and necessity,are
confded TO a number selected from among
The legislative department
as it most emphatically repre-
sents the people,can in general do all and
every thing which the people themselves
could do, except where restricted by
written constitution, or by the eternal and
Immutable principles of natural or reveal.
ed law. This power no doubt, may be.
and is frequently abused. When it is
abused, the abuse can generally be RENE.
died by the people a; the ballot box. When
however,it has been legally exercised and
carried into execution, and third persons
have acquired rights by virtue ofits exer.
else, it cannot then be recalled, so as to di.
vest rights which were legally vested an.
der its operation.
admit that sit is from the constitution
of each State that we are to learn who
are the persons, and what is the power
entitled to contract in the name OF the
State, and to pronounce upon what the
public welfare requires" But in the alb.
Sence of express constitutional restrict
on, it is a principle of the law of natioss
which IS part of the common law that
he authority entrusted with the power ofl
ewing taxes, has necessarily the power
o render the State liable by CONTRACTING
iebts.-(See Vattel's Law of Nations
.2s.)
'The power of legislation, aud conse.
luently of taxation" says the Supreme |
Court of the United States, "a Peters
ia Operates on all the persons and pro.
'erty belonging TO the body polite. This
$ an original principle,which has its foun.
lation in society itself. 1t is granted bv
Ill for the benefit ofall. 1t resides in the
as a part ofitself, and need
lot be reserved where the property of
my description or the right 70 use It in
my manner, is granted to indiyld uals or
bodies"
If State has right to contract a debt |
is only through the medium ofthe legis.
allure that it can be done, because no 9th
department. of the government is en-.
rusted with the power of levying taxes.
md because no other department of The
so Immediately represents The
people. In fact consider law antbor.
ENG the creation ola debt, as one oil
hose ordinary acts oflegislaiion, that has
zen; IN representative governments. rec
'gnIzed time out of mind to reside in the