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

he says sstlis argument is no aDsva.
because the bank undertook TO ~,
the difference, her means will be red
ced that much, and the risk of H.
State greatly increased" Itisama,
ter Of establishment that such an argm
ment could have been made bv as o.
tute mind as his ExcelleLcy;s. The
argument proves that every bad con
tract which the bank had power =
make, and on which the bank had NOV :"
eric make, and on which there is q To-.
diminishes ofcourse its means,incra.s
es the risk of the State, and tberafoso
releases the State from the Iiablitv -
the bonds.
But this argument can be disposed or;,
few words. The commissioners e;,La.
had power TO bind the bank when thew sold
the bonds, to pay more than the bond
called for-or they had not. If thew bsJ
power to do SO, and they exercised ,bo
powe.. then the contract IS binding ON ,bo
bank, because the State gave the power
by granting the schanter. II, in cons
quence thereofa loss is sustained bv the
bank it viii diminish its means. IN ,bs
same way that losses on any contract i
can legally make viii diminish them
Who must bear this loss? the stockhol.
ders of course, and the State being one.
must bear its proportion. Butifthe con-.
missioners had no such poor, (which in
truth they hsd not then their engagement
is moi binding on either the Bank or tie
Slaie-their acts would only be recorni.
zed TO the extent of their authority, 10 wit:
to assign and sell the bonds-to that ex-
tent the bond-holder can hold the State
and the Bank both bound, and to that ex.
tent only they are responsible. This at
once disposes upon clear and undispuled
legal grounds of the Governors ina
aginary loss Of nearly million ofdOl-
Etrs.
His first and fifth objections fall under
one head, and | will consider them togeth.
er. There is no part ofthe charter. which
requires that on the sale of the bonds, the
money should be Instantly paid. The
right to give a few weeks or months or
some reasonable time, within which. TO pay
the bank the proceeds of the bonds, was
power certainly possessed by the COM
missioners. But the objection is, not
that the bonds were sold on a credit
of few months, but that they were
sold without deducting the interest, and
that therefore, they aOere sold for less than
par Udlue.
The authority Of the commissioners TO
sell the bonds as derived from The 9th Sec
ton ofthe supplemental act. 1t authori-
zed them to sell, provided the bonds
should not be sold under par value" adj
NIT this is strictly naked power or au-
thority. 1fthe commissioners exceeded
their authority, the sale was invalid unless
it were afterwards ratified. In such case
by the Law of Nations, and express or
tacit ratification viii render in Valid
(Vatiei. book 2, CHI. 2OS-) "The express
ratification" says Vattel, sis a written
deed by which the sovereign Ii. e. the
State) approves oflhe treaty or contact
The tacit ratification is implied Il. e.
State) is Justly presumed 10 take only in
pursuance ofthe treaty." &c.
The State can only act through the me-
dunn of the legislature. Tie Legislature
might have repealed the 9th section requi-
ring the bonds to be sod at par value be-
fore the sale. or it might by express act
have ratified it. ST is principle" says
Yattel. Book 2, ch. IA, sec. 2I3,) s.thit
the promise, conventions and all private
contracts ofthe sovereign, Ii. e. the Statel
are naturally subject to the same rules as
private persons" The Legislature met in
Jan. 1880. At that time all the facts in
regard TO the sale were fully known. A
JOINT committee was appointed, who, in
their report, state all the terms of le.-
At this time two of the installments oaIy
had been paid. This report, which was
concerned in by both houses, fully and ex-
pllctly approves Of the sale, and Il is s.a-
Ted IN ii as a fact, that the exchange re-
csived on account of the bonds, would
amount to more than the interest lost by
selling on credit of few months. The
report states, that the proceeds ofthe sale,
including the exchange, amounted to
more than par ralle. And it concludes,
shat doubt cannot be entertained but
the sale of the bonds had been made
in strict conformity with the letter Of
instructions from the bank, and in &C.
cordance with the Injunction of the char
ter"
Thus the Legislature with full
knowledge Of the facts Of the sale, not
only refuse to repUdiate il, but so far
as the joint action of both Houses
could extend, expressly rati6es and
it.
Independent. however, of the ques-
ton of ratification, my opinion is, that
the bonds were sold for their par rat1e.
When tho Legislature said that the
bonds should not be sold for less than
their par value. what did it means It
meant that the bonds, wherever sold,
should be sold for their par value in
Mississippi, where the proceeds were
to be received. Or in other words. that
the sale should put in the vaults of the
bank, or under the control of its off
GERS, FIVE millions Of dollars. Sun
pose Mr.. Biddle had given for the
bonds four millions six hundred thou
sand dollars which he had ON deposite
in London, and that the EXCHANGE he