Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1841-09-11

could pledge the faith Of the State, as bsiste eG
planned, 10 40 unlimited extent
let us Row turn our attention TO the original
act ehAreung or proposing 10 charter nc instlu-
ton, 10 be called ths Miss. Union Bank. We
sdmi, TIA, Tits act was copied tpto the journals
Of the session OF 1887 submitted 10 the people aud
rcpasssd b, subsequent legislature N 1888 rs
prescribed by the constitution. The Legislature OF
1897, by thi, act, ~h,eh II caused 10 10 publish.
ed rs the 9'h section Of TIE 18th AT. directs, sub.
united Proposition 10 us--io ~, the people
lhsv told Us, they wished TO charter bank With
capital Of 10 - millions, the stockholders u be
eiIzrns Of the State holding lands--,hsH would
be difficult for those CIT gems wishing 10 become
stockholders 10 tose this amount OF money
that n could be mora readily chained on the
bonds # the State, than on bonds and mortgage.
Of individuals that m order To assls, these would
be stockholders, IN rasns the money, 1t Was pro.
po ssd that the bonds oi the State should be issued
on Which, It might be raised, and that, IN order TO
idomn,fv the State, these future Stockholders
should execute their bonds and mortgages, as IN
indemnify 10 the state Tor nm equal amount and
finally that the state should be accommodated
With permanent loan from the BANK Of S2vO,.
OO0, and be entitled 10 one tenth part Of It's po.
hts. IN consideration Of the assistance thus to be
rendered TO tho stockholders.
BY hs charter. the state AIS not-in truth
che could not hs-a Stookholdrr IN this eonlen.
plated bank Tor none hut citizens Of The STAB
could hold stock IN IT, Tho money TO be RAISED
On those bonds WAS not 10 belong to the STATE ,bu
TO the Bank or lie stockholders other words
the state, aho IN FORM che Mas to DO. vas not
in reality to be borrower Of money on her own
account, butts surety or Euaranlor, or, in the Ian.
suage oil the famous 9th section, sheWas TO pledge
her faith lor the payment oi a loan 10 be made
10 the stockholders, lntho language OF Old ITALIA.
boIa whose speech in the Senate last wlnter,is the
text book for VA sll,lhe state was TO DO an accom-.
modation maker of these bonds How does an
individual become an accommodation maker Of q
note or bond' ] will state the process Say that
| hnVo a heavy account IN bank or have maAy
noles out, and want to borrow moro money. Not
Wishing to increase my account in bank or tho
number Of my notes, ! go 10 my friend Mr. Tur
nrr, and shy Friend jim lend me your note for
a thousand dollars al % days" lie, thsrsupon.
executes to mo bis note for the nEoun, and time
requested. endorse It, and offer il to capitalist
whs discounts it. Mr. Turner is the accommo.
dstion maker Of this note, and Allho no equity
lawyerI assert that in court Of equity, ho would
be considered the surety aad myself the principal
especially If tho capitalist, before he purchased
The note had notice Of tho circumstances unde
which II was given.
| the .Slato was, from the charter, To become sucf
accommodation maker and MIR. Bddlo or on,
other purchaser of these bonds, hud they beer
issued under the original charter, must necessar
IaIly have had notice Of tho circumstances. whcI
made her such. Further. BY tho original net
there could have been no Mississippi Unior
Bank, until SIX month"; afer itS re.approvn MOI
was the governor authorized 10 ISSUE tho State
bonds ill that time Now for tho proofs Of al
these assertions
My friend, Mr.. Calhoun, viii rleaso read the
first section Of the original charter,
"Be it enacted &C. That an institution shaI
be established under the title Of The Mississippi
Union Bank with capital Of fifteen millions
five hundred thousand dollars, which said capital
shall DO raised by means Of n loan, 10 be obtained
by the directors of the institution" This sec.
lion needs no Comment
There viii now lie rcad part Of the fourth
section. "3c it enacted &C., That The owners
Of real estate, situated IN the State Of Mississippi
and who arc citizens thereof shall bo tho oHh
persons 10 subscribe" 1t require no orpumcl
to provo that tho STATS could not subscribe
| for stock
,y Goad will now read part Of the 9TH SOC
ton. "Io il further enacted &c, That IN or.
der 10 facilitate the Union Back, for hs sad
loan Of fifteen million five hundrd3d thousand
dollars, the faith Of tho State be, and - hereby
,lcgod. both for the security Of the capital and
interest, and seven thousand FIVE hundred bonds
Of two ibouqqnd dollars each = . and bearing
interest a, The rate Of five 'per cen, per annum,
.haN be aligned by tho governor Of tie State to
tho order ortbe Mnsslssppi Union Bank, coun.
tersig7d by the State Treasurer and under sco Of
the State. - Then follows tic form Of the bonds.
The h.a,e,s safe. the lime tho bonds woro to