Lexington union. (Lexington, Miss.) 1838-18??, 1841-06-26
THE STATE BOND QUESTION.

This production having since, been
welcomed into the columns Of some of the
leading journals of the party, now advoca'
ting the pay ment, by the people, OF the
State Bonds, we would repudlae, which
is evidence tina! il compors with their
principles and views, we propose 10 notice
some o! the positions aud deductions of the
writer.
He afTirms that for four or five years,
the mass of the people of this state, SIDE.
voted their skill and energies, to the estab-
lishment OF he Unlon Bank" that the
sale of the bonds, sold on lis account, was
hailed by them 'as the harbinger of peace
and glad tidings;" and that the money
was received on them. From these prem
ses he leaps to the conclusion that there
is moral obligation resting upon the
state to make payment.
The conclusion is not the necessary
consequent, OF the premises but wholly
Iillegitimate. We do not pretend
to doubt, that large majority Of the
people OF Mississippi, were favorable to
the creation of the Union Bank; and that
they rejoiced at the sale of the bonds
They, however only sanctioned its crea-
lion, in manner and form as set forth in
the original charter, by which the State
was not made the actual payer of the
bonds, but merely the guarantor of then
ultimate payment; as appears from the
section which expressly prohibits the issu-
ance of the bonds, until similar amour,
be secured by mortgage on unlncumbeFed
real estate of the stockholders. From
this section, it is clear that it was not the
intention of the trainers Of this charter, or
the people who sanctioned it, that the
state should, under any circumstances,
become The ultimate payer of the bonds
And they rejolced at the sale, under the
impression that tile bonds had been ctea-
ted in obedience 10 the provisions of said |
charter, which was not the case. They |
we're created under the supplement to the
charter, as it is denominated, winch never
ecelved the popular sanction; and before
sufficient stock had been secured by mort.
gage to secure the statc against all poss-
o,ii,y of loss, not with view of loanirg
the credit Of the state TO the stockholders,
as contemplated by the original charter,
but to pledge the faith Of the State 10 pay
the stock in said bank, foT which the lie.
gislature, by the supplemental act, author
lied the Governor 10 subscribe. This
then, was pledge wholly different from
that sanctioned BY tie people, in the orr
ginal charter; and being made merely by
the Legislature is unconstitutional and
void, and can only be ratified in the man.
ner pointed out in the moth article of the
seventh section Of The constitution for
pledgIng The faith OF the State; which no
one will have the eflrontery to say, has
been done. Consequently the issuance
and sale of the bonds have not been rati-
| fled; and as the proceeds we're not receiv.
ed by the people, but by the party selling
the void bonds, no obligation legal 0.
moral can attach TO the former, TO make
payment. And the whole affair can be
regarded in no other light than as mere
negotiation between the party selling, and
the party purchasing said void bonds; and
IN fact, there is no obligation resting even
upon those who received the proceeds,
save a moral obligation 10 refund the
money received.
The people advocated and sanctioned
the establishment Of the bank as created
by the original charter; and not as it al
forwards went into operation, under the
supplemental charter which materially
changed its leading features; and which
being passed by the Legislature, acting
out of the perview of their letter of Attor-
uey from the people, Qhe Constitution
can no more bind the state than if il had
been passed by any other assembage Of
citizens.
Ina representative government like ours
LEGISLATORS are not the general, but merely |