New-York tribune. [volume] (New-York [N.Y.]) 1841-1842, 1841-11-27
,rnc weuudia,ion of sture Debts.

If there be any OF our readers VINO are weary VI
bsa,op arguments il favor Of preserving the honor
tho States, either from belief that they are not
,ace.sary or from Indifference to the subject, we
ar,reat them to bestow FIVE minutes consideration
on bread view OF the question. What Is the
security on which any nan holds and enjoys the
house, the farm, other property, bequeathed
him By his parea,s or earned By his toll? Is i; not
the inviolabiiity Of the public faith What are
deeds, bonds wills, but evidences OF title and IN
terest which the State has undertaken to guarantee
And how shall the State honestly and thoroughly
enforce other contracts, yet repudiate and trampe
on its ownl History Informs that in the rare
instances where Nation State has chosen
thus 10 act the pecuniary iuin to individuals re-
suting therefrom has been the least OF It's evils.
The shock given to public morals, the utter de
-tr,ction of public faith the overthrow OF conf
dence in man. the keen of wrongs endured
and the universal dread of wrongs to come, have
been far sorer and more lasting evils. The nor
rors of the French Revolution may be clearly
traced back to the breach of faith by the Govern
,nent in the explosion of the Mississippi Scheme.
We have no possible personal interest in the
matter-no Stocks, no bonds (uness TO pay,) and
do not know who holds any State Stocks except
rhe President of tho Manufacturers Bank OF
Ulster. But we HAVE an interest in the preserva-
ton of public fath-in the maintenance OF Amerl-
Gun honor. The day in which one State de-
liberatey repudiates its Public Debt and sets It's
creditors at defiance, will be dark one for our
whole country--for its morals, its fame, and its
prosperity As cure as there is Heaven above
us and a punishment for niquiiy, such u step must
entail woe on all who are implicated in its adoption
Let us look farther at the grounds which Re
pudiation in Mississippi is Justified
From The Nsuo Era.
If the money for these bonds was never, IN
fact received by the State by its lawfully con-
stituted agent; if il is true stated by Governor
McNutt that the contract of sale was Iroadutent;
if it is true that the Union Bank as the seller, and
the United States Bank as the purchaser, were
parties TO this fraud and collision, and therefore
both fully liable in law and equity the holders OF
these bonds then we say the people of that State
would be justified in repudiaung their payment by
every honorable and disinterested man.
From The Sun.
There is no rule III law more universally recog-
nized in all the courts of Chris;endom, than tina,
the principal snoi bound by the acts OF his agcn,
when the agent tIanscends the specific authority
under which he acts. No matter whether the
third party was ignorant of the extent of tina
authority or not II is his own fault II while dealing
with an agent he docs not inquire and satisfy him
self as to the extent of the power conferred by the
principal"
We have already stated fully the facts in this
case-that the Bonds authorized by the
Legislature, executed by Gov. McNutt, negotiated
bv the Commissioners, and paid for by the Pur
chasers. There is no possible reason for be
leving that any fraud contemplated the
Commissioners evidently got the ultermost iarthiHs
they could for the Bonds and the purchasers PAID
more than they were worth, and must lose, throust
the depreciation of Stocks, at least One Million OF
Dslars by their bargain, even if the State should
fulfil her engagements. Not one cent of the pro-
ceeds appears 10 have accrued to the Commission
ers, but every farthing was placed in the Union
Bank, Jus, where tho Legislature directed and
Gov McNutt intended it should be. The original
purchaser-to wit, the L. S. Bauk-has paid Five
Millions of Dollars for those Bonds and has pledged
them with foreign Bankers, security tor loans, tor
a much smaller amount, which is ali she will ever
realize for them She has paid interest on them
and received none and now must sacrifice ner Five
Millions for Two or Three Millions, while the actual
holders would be very glad to part with them for
less And yet Mississippi has been SO defraudea
that she will not pay farthing
OF course, the fact that the Union Bank of Mis-
sissippi has since loaned out the money to those
who will not repay it is no part of the case. The
creditors of the State could not help that. The
money was paid to Mississippi, being paid to the
Union Bank. in whose behalf her bonds were issued
and to whose officers she entrusted them. How
she refuse to pay them2
Let US test the "rule of law set up by The
Sun A. B. is solicited 10 take stock in ne"
Bank. He consets, but has no money, so he gives
his note for $1,000 five per c. d. to ne
gotiate for him at par, and invest the proceeds in
the stock of the Bank. c. D. canaot negotiate
The note at par; but at length by agreeing maks
it pounds sterling at is. Cd and to take the pro-
cceos "'"i' leqoHeu 10 pay Tor the STOCK, ne mos
some one to discount the note. Now If the prin-
epe set up by The Sun is sound, he nigh, refuse
10 pay the excess the limit fixed by himself
but how shall he retase t. pay the $1,000 which
he did authorize Would any Court hold him
abselved from such payment And how could
any Court sbsolve Mississippi from the payment
OF her individually Five Millions, even though it
should adopt the rule of law of The Sun
The hr;ngs m view q most alarming feature of