Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1841-10-28

Il LTuCt, ne luClL TdluCutlOH 10 iiHphSu
/. from certain steps which the sovereignty
il 4. e. the Siate) is Justly presumed to take
i only in pursuance of the treaty." &c.
J, The State can only act through the me-
4. dium of the legislature. The Legislature
/ might have repealed the 9th section rec
, quiring the bonds to be sold at par value
, before the sale, or it might by express ac'
! have ratified it. 50 1t is a principle" says
. Vattel Book 2, Oh IA, sec. 2l3, that the
promises conventions and all private con-
tracts of the sovereign, Il. o. the State)
are natura lily subject to the same rules as
private persons" The legislature met
in Jan. 1899. At that time all he facts
in regard to the sale were fully known
A Joint committee was appointed, who, in
their report, state all the terms of sale.
At this time two of the instalments only
had been paid. This report which was
concurred in by both houses, fully aud ex-
plicitly approves of the sale, and il IS sta
ted in it as fact. that the exchange re-
ceived by the bank and which would be
received on account of the bonds, would
amount to more than the interest lost by
selling on credit of II few monthsG-
The report states, that the proceeds Of
the sale, including the exchange, amount
ed 10 more than par vatue. And It con.
clde es, that doubt cannot be entertain.
ed 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 injunctions of the char
ter"
Thus the legislature, with n full
knowledge Of the facts of the sale, not
only refuse to repudiate It, but so far as
the Joint action of both houses could OK.
tend, expressly ratifes and approves it,
Independent, however, of the question
of ratification, my opinion is that the
bonds we're sold for their par uaIus.--
When the legislature said that the bonds
should not be sold for less than their par
value, what did it mean? 1t meant that
the bonds, wherever sold, should be sold
for their par value in Mississ ippi, where
the proceeds we're TO be received. Or in
other words, that the sale should put in
the vaults Of the bank, or under the con
troll of its officers, five millions Of dollars.
Suppose Mr.. Bddle had given for the
bonds four millions six hundred thousand
dollars which he had on deposite in Lon
don, and that the exchange between Jack
son, Mississippi, and London, was ten per
cent. The fund in London, was there-
fore worth in Jackson, upwards Of five
millions of dollars. Suppose also the
bank drew on this fund and charged the
exchange, would she not have received |
for the bonds five millions Of dollars at
jackson? UnquestlonabIy she would
This, then, would be a sale at par value.
What we're the terms of sale? Mr.. Bid
die saws will give you five millions Of
dollars, one million on the LIST November,
1888, and the balance at intervals, until
the first July, 1889. We cannot do that,
say the commissioners, because we lose
the interest, and we cannot sell for less
than par value. will make that up says
Mr.. Bidde. will place such money at
New Orleans as will command a premi-
um Of from TO 10 per cent. The bank
may draw on this fund in advance and
receive the exchange, which will be equi-
yalent to the interest. The commission
ers make the calculation and find it SO,
and sell them to Mr.. Biddle, The bank
receives in New Or leans and Natchez,
four millions eight hundred and sixty-tour
thousand five hundred and eighty three
dollars, in funds worth premium-this
fund they sell, by drawing bills, and re-
ceive the premium Of exchange, amount
ing to upwards of 100000 dollars. Add
these sums together, and the bank has re.
ceived upwards of five millions Of dol
lars. Is not this sale at par value?-
Surely 1t is. The loss, therefore, which
the Governor says was sust aimed on ac-
count Of interest, was more than made up
by the exchange.
The remaining objection of the Cover.
nor is, that the sale was made to the Bank
OF the United States; that it was pur-
chase by that institution, in the name Of
Mr.. B ddle, and that the United States
Bank was prohibited by its charter, from
dealin in State stocks, The clause in
the charter oil the Bank, referred to by
the Governor, (see acts of Pennsy, vania
for 1886, page 39O is part Of the fifth
fundamental article Of the charter, and is
as follows:
"The said corporation shall not, direct
ly or indirectly, deal or trade in any
thing except bills of exchange, gold and
silver bullion, or in the sale OF goods real
ly and truly pledged for money lent and
not redeemed in due time, or goods which
shall be the proceeds of its lands, neither
shall it 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, treasu-
ny notes, public stock created by the Gov
eminent Of the United States, or Of this
State, or stock oil, or loans to any Of the
incorporated companies of this State, for