Lexington union. (Lexington, Miss.) 1838-18??, 1841-02-20

Of attorney from the Bank to the Comtlie
soners tho charter OF the Bank and Con-
stitution Of the Stale. lis not 10 be pre-
sumed that purchase would have been
made, without full knowledge ofall these
documents. The purchase no doubt was
made under the firm persuasion that the b'k
would pay the interest and principal pune
tually. II is important TO enquire whelh-
or the Bank Of the United States had a
right TO purchase our State stock directly
or indirectly, or 10 guarantee the pune
tual performance Of the contract with the
commissioners with N. Biddlc. The 5th
article Of the charter Of the Bank Of the
United States, contains the following
clause: "the said corporation shall no, d.
reclly or indirectly, deal or trade in any
thing except Bills Of exchange, gold and
silver bullion, or In the eule Of goods rcal-
~ and truly pledged for money lent and
not redeemed IN ,ime:-or goods which
shall be the proceeds Of its lands. Meth
er shall il make any loan to any foreign
prince or State, unless previously author.
lied by law.-The said corporation shall
not be at liberty TO purchase any stock
whatever, except their own stock, treasury
notes, or public stocks. created by the
Government OF the United States OF this
State, or stocks Of, or loans 10 any OF the
Incorporated companies Of this State for
The construction and improvement Of
Roads, Bridges, Canal, or inland naviga-
non, or other stocks which may be bona
tde pledged as security for debts TO the
Bank, and not duly redeemed" Tha, ar.
licle is conclusive, and presume il will
not be commended, that II the Bank had no
right to purchase our State stock, il could
guarantee the paymen: of such stocks,
purchased by any other corporation or
Individual.
An examination of,he archives of the
Mississippi Union Bank and the Bank oil
the United States will prove that The later
institution advanced all the money paid on
those bonds, and that the purchase was
made for her benefit. The report made To
a meeting Of her stockholders last month,
shows that the institution still holds more
thaG three millions Of those bonds. 1.-THE
sale was not made in pursuance of our
constitutions and laws, and the Bank OF
the United States, with full knowledge
OF that fact and in fraud Of her own char.
ter choose TO take them under such cir.
cumstances, it follows that no obligation.
legal moral rests upon this State 10 nav
The Bonds. Neither Justice, honor, nor
morality demand Of us the ENCOURAGEMENT,
violations of our fundamental law, in order
to aid corporations in stock ,jobbine, when
expressly inhibited Ly their charters from
engaging in such nefarious operations.
The Mississippi Union Bank was not
authorized by her charter to sell The STATE
Bonds on credit. II is a we'll settled
principle that where no express authority
gwen an agent to sell OH credit, lint
he sale must be for cash and that credit,
IS not binding. under any circumstances,
on the principle. 1t is certainly compe.
tent for the State to reclify the sale OF those
bonds, but by the provisions Of our consti.
luton her faith Can alone bo pledged
for that purpose, by la,C proposed and
passed ny two succeeding legislatures. in
strict accordance with The Constitution
No such law has been proposed and pass.
90. The Mississippi Union Bank refused
TO let the Bank commissioners examine
tha, institution in the fall Of 1893. Late
In Dec, OF that year, succeeded in oet.
ing from the Bank the documents in reIs.
'ionto the sale Of State Bonds ami com.
munlcated them with my annual Mes.
sage on the 9th Of January, 1889. That
Message contains the following clause.
On The day the books were opened "A
jackson ] subscribed for fifty thousand
shares Of stock in the bank, and executed
bonds Tor five millions Of dollars, as soon
as they were prepared for my Official sip.
nature, and delivered them the man, GERS
OF the bank. The document, herewith
submitted will place you 10 the possession |
Of the instructions Of Tie Mississippi Union |
bank, TO the commissioners appointed 10 |
negotiate the bonds and the terms Of the |
sales. The charter OF the bank provides |
that the bonds shall not be sold for Ieas
than their par value They were dated
20 NTH, sixth, seventh, eight, and mini,
lays Of jane A. D. 1888, and payable IL |
we've and twenty years from The fifth DIV
4 Feduary, 1888 and sold 10 Nicolas ma.
ln:d Esq on the eighteenth day or Angus,
1885, Tor I'VE millions Of dollars, lawful
money Of the United State, payable IN Eve
'qnal Instalmenis Of one million Of dollars
'ach, on the hrst day January, March,
md July IN the year one thousand eight |
'uodred and ihirty.nine. The bonds bear
''eres' from the date thereof, and The bank
,as already paid one hundred thousand
dollars interest thereon. Inasmuch as the /;
lOnds were sold on a credit 81 ;...---.A 4.