Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-12-02


respective date. and the farther SUN OF nine hun
| dred and ono thousand three hundred tnd forty
three dollars was lost by changing the bonds iron
dollars current money Of the u to pounds sterling
| OF Great Britain. These items amounted TO the
| enormous sum OF one million eighty four thousand
seven hundred and eighty dollars and thirIy
| cents. Surely such sale cannot be binding OF
| the State of Mississippi. The faiIh Of this STATE
| was pledged Tor the payment OF those bonds, ONLY
upon the condition thIt they sold at not les,
than their par value. The State expected the ful
| amount OF those bonds to be paid into the vaults
OF tho Mississippi Union Bank. fthe full amour
had been received, and the currency in which they
| were made payable not have been changed, tn,
bank would have been better enabled to indemnify
| the State.
IL appears that the bonds were endorsed in blank
by the officers Of the bank and delivered to the DOM
missioners charged with their sale. Nei,hes the
pow er of attorney or letter OF instructions author
ned those gentlmen to a., up said endorsement 10y
| making the Bonds and coupons payable IN pound;
Sorin: Of Great Britain the rate OF four shilling,
! and n siNpence TO the dollar. Ifsueh change had
been made on the face OF the bonds after their ex.
| ecu,ion and delivery TO the bank, the parties ma.
king the alteration would have been guilty of for
gerry aud could have been immured in the peniten
tiary for the offence. IL will be answer to the
argument TO Ulege that the endorsement could on "
blrd the Mississippi Union Bank. That institution
has undertaken 10 ray 10th the principal and inter.
est OF the Bonds. 1.-THE bank is compelled 10 pay
the ono million eighty four thousand seven hundred
and eighty flour dollars and thirty cents for the
loss sustained by the credit sale Of the bonds and
the change in the currency in which they tGe
PAYABLE, her means will be reduced that anount
and the risk of the State thus greatly increased.
The State was willing 20 lnuusi her credit 10 the
bank on the conditions prescribed in the charter.
The faith Of this Government has never been peds
ed Tor the illegal and fraudulent sale of these Bonds
This Is n constitutional Government and oil its
officers take oath 10 support the Constitution OF
the State, and faithfully to discharge the duties OF
their respective Offices. Her Chief Magistrate is
required Ia take that the laws be faithfully exc
cuIed. lie would DO recreant 10 his trust ami VIC.
laie his official oath, were he TO suffer the laws of
the land to be trampled upon and the Constitution
disregarded.
The contract fbr the .ale of the Sute Bonds.
shows tina; the statutes Of the State in relation to
the Bonds, were made part of the contract. The
purchaser was well aware Of the conditions ON
which they issued, and krsr that the purchase
was ne her sanctioned by the Constitution aud laws
Of this State nor .! Psnns, wanna. the contract
was guaranteed Ivy the Bank of the ". s. The
Whole of the purchase money Paid by that In.
sttution The name of Mr. Bddle was merely used
IN the contract as device, get round that clause
IN the charter o. the Bank OF the u. S., which pro
h'hI's her from dealing in State Stocks. The cur.
rency in which the Bonds were made payabIe was
changed from dollars to pounds sterling TO give a
false co!oEns 10 The trsnstclo1 and make Il appear
that the Bonds were sold at par value. TIE prin-
ciple is universal that fraud vitates all contracts
The commercial law of this State relative to nrso-
Stable paper is diferen; fron that of most Other
countries The transfer of Bonds and notes. docs
not prevent the drawer from setting ~ any defence
against an innocent purchaser which could be made
available against the original pAyee.
The Stale, therefore, denies all obligation 10 nav
the Bombs held IN trust by you, for the follow ing
reasons:
LIST. The Bonds were sold on a credit.
%. The currency IN which the Bonis were made
payable, was changed from current money of the
IN - rTfg,., I'll. -
IInss and Cd to the dollar.
81. The contract Of sale WAS fraudulent.
4ih. The Bank Of the U. 5. was not authorized
TO make the purchase.
5Ih. The Bonds we're sold a. less than their par
value, in violation Of the charter OF the Bank.
The money paid for those Bonds did not come in.
TO the State Treasury. The officers of this Gov.
eminent had no control over IT'S disbursement. The
Bonds were disposed Of N Angus, 1885 by colIu.
sion and fraud, IN violation OF the Constitution and
laws of this State. The Mississippi Union Bank
and the Bank Of the U. S. were parties TO this un
lawful transaction. You have the endorsement OF
both OF these institutions, and 10 thsn You must
look Tor payment The State never viii pay the
FIVE millions OF dollars OF State Bonds issued in June
1888, or any portion Of The interest due, to be.
come due thereon.
When ascer,ainsd in January, 1899, the term.
on which the Bonds mad psen sold, 4 communicated
the same, by message, to the Legislature, and de
nounce1 the sale as illegal. At that time, only two
millions of dollars had been paid or the Bonds by
The Bank Of the UnitCd States. By proclamation
subsequently issued, the sale OF the second five
mil OF dollars OF State Bonds delivered To the
Mississippi Union Bank was prevented. ALSO.
uiely refused TO execute the last five and a half
millions Of dollars Of State Bonds demanded by that
Institution. These decisive measures prevented the
illegal disposal Of ten and halt millions Of collars
Of State Bonds, and will convince you thaE the Go
Of this State has counIenanced AMI
cannot DC made responsible for the fraudulent acts
OF the Mississippi Union Bank.
have forwarded to your address the Journals
Of the Legislature Of this State for the years 1870
and 1871. IL will afford me much pleasure TO fus.
ward you such other documents as you may desire.
am anxious that the bond holders should I've pos
sessed vi all the facts in relation to the issuance and
disposal Of the Bonds held by them. Your great
experience IN commercial affairs, no doubt, has |
made you familiar with the principle that parties !
contract with reference 10 the law and that in a
constitutional and free Government every act Of
public functonary is merely exercise OF delegated
power ntrusted TO him by the people for a specific |
purpose and that his the acts of the people
only while within the powers conferred upon him.
! am, gentlemen,
Very respectfully,
Your oU't serv't,
A. G. M'NUTT.