Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1841-10-28
THE LIABILITY OF THE STATE TO
PAY THE BONDS ISSUED FOR
THE BENEFIT OF THE UNION
BANK.
BY GEORGE S. YERGER.


To the Editor Of the Vicksburg Wing!
You have repeatedly and urgently SO.
licited me to give my opinion in writing
whether the State is legally bound 10 pay
the bonds issued for the payment OF the
state stock subscribed foHby the governor
in pursuance Oft the LIST sec. Of the Supple
mental Act Incorporating the Mississippi
Union Bank" have hitherto been una.
ble.rrom the pressure of other engage
nents, to comply with this request, bat
il affords me pleasure, TO do SO now; and,
after full and mature examination of
the different questions involved in this
;nouiry, 4herresut has been "a clear and
decided conviction that the State is legal
~ bound to pay ttsm This opinion is
baised entirely on legal grounds. 1t is
the result of candid, and trust, impair
tial investigation ofthe subject.
The liability Of the State 10 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 people
but admitting it TO exist, it has also
been assumed that in the execution and
delivery of the bonds, the constitution
has been violated, and that in their sale
and negotiation, important conditions and
restrictions have been wholly dsregar-
ded.
These objections cannot be legally sus-
tanned
The right Of the legislative department
of the government, independent Of consti>
tutional restriction, to create debt for
Stale purposes, as to aid or assist State
institutions, by loans, subscriptions for
stock, or to promote other objects Of Stale
policy, consider as baving long been a
settled question in the Jurisprudence OF the
States composing the Union And were
it not, that | know ,the fact TO be other4
wise, | should have supposed that no
man of ordinary capacity or information,
would at this day have been bold enough
10 deny such right.
This power necessarily results from
the organization Of all civilized commu-
mites. The people cannot assemble in
person and make their own aws-their
number-their avocations render this
impossibIe hence the powers which they
could exercise, if all were assembled to-
gether, for the purposes Of convenience
aud necessity, are oon6ded TO number
selected from among themselves. The
legislative department, therefore, as it
most emphatically represents the people,
can in general do all and every thing
which the people themselves could do, ex-
cept where restricted by written con,
stitution, or by the eternal and mmuta-
BILE principles Of natural or revealed law (
This power no doubt, may be, and is
abused. When it is abused,
the abuse can generally be remedied oy
the people at the ballot box. When,
however, it has been legally exercised
and carried into execution, and third .
persons have acquired rights by virtue of
its exercise, it cannot then be recalled, 50
as TO divest rights which were legally
vested under 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
absence of express constitutional reslrc-
ton, it is principle of the law Of ma
tions, (Which is part of the common law .
that the authority intrusted with the .
powar of layvino tovos hoo nooaseo ril,,
the power TO render the State liable by
debts.--(See Vattel's Law Of
Nations, 2S8.)
"The power Of legislation, and conss-
quently Of taxation" says the Supreme
Court of the United States, "a Peters,
5l4,) Operates on all the persons and
property beIonging to the body polite .
This is an original principle, which has
its foundation in society itself 1t is .
granted by all for the benefit ofal. 1t
resides in the government as a part of
itself, and need not be reserved where
property ofany description or the right to
use it in any manner, is granted to indi-
Viduals or corporate bodies"
ia State has right to contract debt
i is only through the medium ofthe legis-
AZURE that it can be done, because no
1ther department Of the government is en-
trusted with the power OF levylng taxes,
md because no other department of the
government so Immediately represents the
,eople. In fact consider law, author
zing the creation of a debt as one of
hose ordinary acts Of legislation, that {
las been, in representative governments,
time out Of mind to reside in |
he Legislative department Of the State.
t is acknowledged as legislative pow
r by the 9TH Art. and 9th Section fthe {
OF this State; and express t
nd explicit authority is conferred on i
he Legislature, TO create State debt, in ?
no manner there pointed out d