Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1841-12-09
47s,750 90
69,625 90
$l93,3SS3 80
353,O6s 90

sterling of Great Britain at four
shiilings and sixpence to tho
dollar, $4,000 90
$1,O84 ,79l 80
From the above statement il will be perceived,
that one hundred and eighty three thousand three
hundred and thirty-eight dollars and thirty cents
were lost by selling the five millions dollars of
bonds on credit, and paying interest thereon
from their respective date, and the further sum Of
nine hundred and one thousand three hundred and
forty-three dollars was lost by changing the bonds
from dollars current money Of the u s to pounds
sterling OF Great Britain. These two items a.
mounted 10 the enormous sum of one million eigh-
ty four thousand seven hundred and eighty Que
dollars and thirty cents. Surely such sale can
not be binding on the State of Mississippi
The faith of this State was pledged for the paw
ment of those bonds, only upon the condition
that they were sold at not less than their par
value. The State expected the full amount Of
those bonds to be paid into the vaults of the Mis-
sissippi Union Bank. If the full amount had
been received, and the currency in which they
were made payable not have been changed, the
oank would have been better enabled to indemni-
fly the State.
1t appears that the bonds were endorsed i'm
blank by the officers of the bank and delivered to
the commissioners charged with their sale. Mel
ther their power of attorney letter of instruc-
uons authorised those gentlemen to fill up said
endorsement by making the Bonds and coupons
payable In pounds sterling of Great Britain at
the rate Of four shillings and sixpence to the
dollar. 1t such change had been made on the
lace OF the bonds after their execution and dely-
cry to the bank, the parties making the alteration
would have been guilty of forgery and could
nave been mmured in the penitentiary for tire Of
fence. 1t will be no answer to the argument to
allege that the endorsement could only bind the
mississippi Union Bank. That institution has
undertaken topay both the principal and interest of
the bonds. II the bank is compelled to paw the
one million eighty-four thousand seven hundred
ond eighty-four dollars and thirty cents, for the
loss sustained by the credit sale Of the bonds and
the change In the currency in which they were
made payable, her means will be reduced that a.
mount and the risk of the State thus greatly in
creased. The State was willing to intrust her
credit to the bank on the conditions prescribed in
the charter. The faith of this Government has
never been pledged for the illegal and fraudulent
sale of these Bonds.
This is a constitutional Government and all
Its officers take an oath To support the Consttu-
ton of the State, and faithfully to discharge the
duties OF their respective Offices. Her Chief Ma
gls:rae Is required to take care that the laws be
faithfully executed. He would be recreant to
his trust and violate his official OATH were he to
suffer the laws of the land to be trampled upon
and the Constitution disregarded.
The contract for the sale of the State Bonds,
shows that the statutes Of the State in relation to
the bonds, We're made a part of the contract
The purchaser was well aware of the conditions
on which they were issued, and kne,U that the
purchase was neither sanctioned by the Consti-
tuition and laws of this State nor Of PennsyIva-
MA. The contract was guaranteed by the Bank
Oh the U. 81. The whole of the purchase money
was paid by that Institution. The name of Mr.
Biddie was merely used in the contract as a de-
r,ce, to get around that clause in the charter of
inc Bank of the U. s., which prohibits her from
m Sf1fo
the bonds were made payable, was changed
IRON dollars to pounds sterling to give false
colorlng to the transaction, and make it appear
mat the bonds were sold at par value. The prin-
clpe is universal that fraud vitaes all contracts
The commercial law of this State relative 10 ne
gotlable paper is different from that of most other
countries. The transfer of Bonds and notes,
does not prevent the drawer from acting up any
defence against an innocent purchaser which
could be made available against the original
payee.
The State, therefore, denies all obligation to
pay The Bonds held in trust by you, for the follow
ing reasons:
LIST. The Bondswere sold on a credit.
"a. The currency in which the Bonds were
made pay able, was changed from current money
oithe u. States to Pounds Sterling at the rate of
shillings and Cd to the dollar
81. The contract Of sale was fraudulent.
4th. The Bank Of the II. s.. not nuthori-
zed to make the purchase.
9th. lhe Bonds sold at less than their
par value, in violation of the charter of the Bank.
The money paid for those Bonds did not come
Into the State Treasury. The officers of this
Government had no control over its disburse-
ment. The Bonds were disposed of in August,
1888, by collision and fraud, i'm violation Of the
Constitution and laws of this State. The Mis-
sIssppi Union Bank and the Bank Of the u. S.
were parties to this unlawful transaction. You |
nave the endorsement of both Of these institu- |
lions, and to them you must look for payment.
This State never will pay the five millions Of dol
lars oil State Bonds issued in June, 1888, or any |
ppo5lion OF the interest due, or TO become due |
thereon.
When l ascertaiDed in January, 1889, the
erms on which the Bonds had been sold, / COM
nunlcated the same, by message, TO the LegisIa-
!ire, and denounced the sale as illegal. At that
line, only two millions of dollars had been paid
IN the Bonds by the Bank of the United States.
ny proclamation ] subsequently issued, The
'ale OF the second five millions Of dollars of
state Bonds delivered to the Mississippi Union
bank was prevented. / absolutely refused to
'xecute the last five and half millions of dol
a!s OF State Bonds demanded by that Institu-
ION. These decisive measures prevented the H.
egal disposal of ten and half millions of dol
ars OF State Bonds, and will convince Won that
he Government of this State never has counte-
anced, and cannot be made responsible for the
fraudulent acts of the Mississippi Union bank
L have forwarded to your address the journals
f the Legislature Of this State for the years