Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1841-07-31
Sl..sE.7sI3 d

Si.tS4st 8 90
sion To above siaie,aeni i S.i DC peftensj
that oue A1aired 4na e ,i,y Ih.se thousand three
hundred and tauty eight collars and thirty ceols
were lost by selling the five millions dollars Of
bonds on a credit, and paying Interest lse;soa
from their respective dates, and the further sum'o
hhe hundred and one thousand three hundred
anl tony thee dollars was lost BY changing the
bonds IRON cIueaj moaey OF the Uur-d States
to pounds sterling Of Great Bruaa. These Two
items ae1ouR 10 the enormous sum ut one mi.
hoa eighiy four thousand seven hundred uud
e'Shly one dollars and Thirty cea,s. Su,3 such
a sale cannot be binding on ,se State Of M,s,i,-
Slpph Ias ldih Of th!s Slate was pledged for The
payment oi tapse bonds only coon the Conc Il on
that they we're sold at not les Ihan taei, l.ir val.
u. lie state expected lie full amount ui Il o,e
1otdi to be pad mo the vaults Of The hllsstssip
p Union Bank. ltthe tall armour, had been IT,.
esiycd aaa the currency n which they were made
!a5.e aGs have been changed, tar ana would
nave been better enabled 10 indemnity the
State
II appears that the bonds were endorsed m
blank by tue officer, OF the Bank and delivered
to tie Commissioners charged With then sale
Ne'tAer thelr power oil attorney nor letter of in.
suucl.on authorised those gentlemen to III up
sad endorsement by making he bonds unl cou.
pons payable N pounds slerlIng OF Great Ba,an
at the tate oi four shIlinss aud slxpence To the
dollar IL such change had been made on the
lace o. The bonds alter their execution and deIy'
tfy TO toe bank, The parties making The alteration
would have been gully Of forgery aud coul4 have
been lhmured 10 the penileutlary for the offence.
II WIN be no answer to the Argument TO aIleae that
the endorsement could only bind the Misslssip'
Union BANK Iad Institution mas undertaken to
pay both lae prlnepk and interest OF the bonds.
u the bahN - compelled 10 pay the one million
eighty tour thousand seven hundred and eahly
i"ur dollars aud Thirty cents for he loss sustained
by the cFedl, sale u the bonds and the change in
the currency N which they were made payable her
means Will De reduced that amount aud the r,sk
oil TIE State thus greatly increased. The Snte
was wiling to entrust her credit 10 the bank on
conditions prescribed IN the charter. The faith
Of TINS government has never been pledged for tbe
Illegal and fraudulent sale Of those bonds.
lA'S is constitutional government aud all us
oIlicets take an DATA TO support the constitution
Ut HE Stale, and faithfully Ia discharge The dune.
OF Their respective offices. Her Chief Nagis.
iTate IS required 10 take care that the laws be
laHhiu.y executed, lie would be recreaa,t, h 4
trust and violate his official oath were he 10 sur.
Ter the laws Of the dnd To be tfamnIed uoo0 and
the constitution dlsregardcd.
inc coatlac for the sale Of the State Bonds,
SHOWS that the statutes Of; the state in relation lo
HE bonds, were made part of tie con,ract.--
ne purchaser was we'll aware OF the conditions
Oh "hch they were Isgued, and knew that Ihe pur.
chase vas neither sanctioned by The constitution
and laws OF this State, nor 81 PENNSYLVANIA.
ne contact was guaranteed by the bank OF The
United STATES The whole Of the purchase mo.
ney was pad by that Institution The name Of
Mr' b'dd!e was mercy USED In tho contract AZ a
deVce, to Get round hat clause in the charter of
inc panA o. the unlled States, which prohibits
hei IRON dealing IN stocks. The currency in
winch The Bonds were PAYABLE, was changed
i'om dollars iol'ounds Sterling 10 give false
coofing TO the Transaction, and make il aDDeay
taat the bond' were sold at par value. The prn
cPelS universal that fraud yliaes all Contracts.
Inc commercial law Of this State relative to ne,
golabIe paper, is different from tia, Of mos, other
countries. The transfer Of bonds aud notes, does
notpreveni Tie drawer from setting ~ any defence
agains an innocent purchaser which could be
available against the original payee.
The state therefore, denies all obligation to pay
the bonds held in trust by YOU, for the follow rea
4ons:
Isl. The bonds were sold on a credit.
2nd The currency IN which the bonds were
made payable, was changed from current money
Of the United States 10 Pounds Sterling Of G,ea,
EfIiioa at the rate Of four shiIliass und sxoence
TO the dollar.
% The contract Of sale was fraudulent.
4th he bank of the United States was moi nd.
thorzed 10 make The purchase.
9th The Bonds were sold al less Than tba, ma,
va ne, n violation # the charte Of the bank
The money paid for tho e bonds did not come
ino the State Treasury. The officers of this
government had no control over its disbursement,
The bonds were disposed of IN August 1898. II,
collision and fraud, in violation Of the constitution
and Laws Of this state The Mississippi Union
Bank, and the Balh Of tie United States were
parties 10 this unlawful transaction You have
the endorsement Of both Of these institutions. and n
liem you must look for payment. This state ne.
yer VIII pay the 1--WE n ons Of dollars OF state
bonds issued N Jure 1858, or any portion Of the
interest due, or 10 become due thereon.
When ascetained in January 1899, the
Terms on which the bonds had been sold, com.
the same by message to the IenisIa- |
iare and denounced tie sale a. illegal. 1t that
Time only two millions OF dollars had been paid
90 the bonds by The bank OF the United States.
by PROCLAMATION | subsequently issued, the
'a.e Of the second five ha!ions Of dollars Of state
bonds delivered to the Mississippi Union Bank.
was prevented. absolutely refused TO execute |
NE last five and half millions Of dollars Of state !
bonds demanded by that Institutions These De.
;isNe measures prevented the illegal disposal Of |
en- and half millions of dollars of stuie bond..
and will convince you that The Government orthi.
state never has countenanced, and tunnot be