Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1841-02-17
REPORT OF THE SELECT COMMIT
TEE. ON STATE BONDS.

I
We shall give condensed statement Of the
facts set forth in it. First, as 10 the Planters
Bank. The act creating this Bank,authorIsed
the Governor ITO subscribe for $2OOO,OOO OF
the Stock, and to execute for the same, the
bonds ofthe State, bearing six per cent. inter-
est from the time other bang negotlated,and
the faith the State was pledged for Their re-
derption. The bonds were to be sold for
specie, by commissioners appointed by the
Bank. As no complaint has ever been made,
the committee conclude, that the bonds were
sold in conformity with the charter. The
State had her voice in the directory OF the
Bank. So much for the Planters Bank.
In 1887, the Union Bank of Mississippi was
chartered, and $l5,5O0,00O of State bonds au-
thorised to be issued and loaned TO the Bank,
which bonds were to be sold, and the proceeds
placed in the vaults Of the Bank. These bonds
were payable, "to the order the Mississippi
Union Bank" and, by the 9Th section of the
act, the faith Of the State pledged for the I" Sc
curity of the Capital and interest" BY the
9th section, provision is made for submitting
the 9th section, the one pledging the faith Of
the State, to the next Legislature, and for ha-
wing it advertised pursuant to the Constitution.
! The act was published in due form; and APP
proved by the Legislature Of 1888. which was
fresh from the people," In 1888, the sup
Elementary act was passed, authorizing the
Governor TO subscribe for $4,000 shares OF
stock, which was to be paid for out of the pro-
cceds of the bonds, and, by the 9th section
thereof, providing that, /" said bonds shall not
be sold under their par value" BY the 18th
section OF the supplementary act, provision was
made for the appointment of President, and
Directors, and, at the same session, the Lcgls.
lature elected ten Directors, who elected q
President, from their own body. In coniormi
ty with the 9th section of the supplementary
: act. which provides that the Bank shall ap
point three commissioners for the sale of the
bonds the Bank appointed her commissioners
and made application to the Governor 70
$5,OO0OOO of bonds, which were delivered
These bonds were sold, in the city Of Philadel
, phia, OH the 18th August 1850 Mr. Nichola
e Biddle. He was TO pay one million on tn
first of November 1888, one million on tn
first of January 1889, one million GU the frs
, of March 1899, one million on the first Of Ma
Y IS39,inthe city of New Orleans;and one millio
in gold and silver or their equivalent, in tn
city of Natchez, on the first of July 1897
The bonds were to bear interest from the da
of date; no interest was required on the insta
. ments of purchase money. In 1889, joir
IS committee OF both Houses of the Legislature
appointed for that purpose, reported on tn
e sale of these bonds.
!. Eor the purpose of being more surely VI
= derstood, we shall enclose the facts, set fort
re in an extract from this report, in brackets.
% The committee say, that they commence
p their examination with the Journal Of the boar
l. of managers (directors) and bring it down
s. the time of commencing the examinatio
They say: the board of managers hav
shown in every attitude in which they we
placed, painful anxiety to preserve the cha
ter ofthc Bank to the letter, and perform the
duties with the most scrupulous fdehty."-
Speaking of the sale the bonds they say :
1Contrary to the expectations of every OIL
~ familiar with the distressed condition of Il
~ Stock markets, negotiation of five millions
NJ the bonds was effected by the commissions
highly advantageous to the State and to Il
~ Bank, and in accordance with the injunction
7o the charter, requiring them TO be sold at p
value. A sale rejecting the highest cree
DO upon the commissioners themselves,a and brin
= ing timely aid to an embarrassed community
10 Four of the instalmentswere to be paid in Ne
M Orleans, and, these being large amounts d
in that city from citizens of Mississippi, Il
Bank was enabled to draw, at a premium,
those instruments; thus enabling the citize
Of the State to pay, at low rate of exchan
a large portion OF their foreign debt, and it al
resulting " that the proceeds Of the sale
State bonds, in reality, amounts to more th
their par value" The report further sa
that the instruments, as they became due,we
90 promptly metz So much for the report
90 1899 we now proceed with the report
90 164I.
Interest was allowed on the bonds from 1
100 day of sale. This interest would have
,oo mounted 10 about '$l35,4I5 63, upon the
M mount of the instalments to the times of tn,
. maturity" The premium on drafts, drawn
100 the instalments payable. in New Orleans,
100 mounted to more than this sum, thus maxi
~ the sale of the bonds, at more than par. st
100 bonds were issued and negotiated to pay,
700 100000 OF stock subscribed on the part of
gOU State in the Mississippi Union Bank" T
,o0 report of1639, was made when two of the
stalments had been paid, and three were
BOO unpaid.
The report then goes on with long, q
am able argument in favor of paying the bon
but we have .purposely avoided giving 6
100 thing but the facts asserted in it. Incur IL
we shall notice the report ofsthe minority
the Committee.
lebt The Globe consistent for once.-We find
&c following in the Washington Globe.-"On'
a s,le the principal measures of "reform avowed