Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1841-10-28

ny LUC COIlIINOolOHShot "hSh IVY 49,
them, as fellows "Thc President, Dl
rectors and Company of the Mississippi
II Union Bank do hereby designate the a
G gency Of the Bank Of the United States
8 in the city Of London, as the place Of pay
$ ment Of the within bond and interest ; ant
! hereby assign and transfer the same 70
: value received, 10 bearer (being equal t.
$ to four hundred and fifty pounds sterling,,
and guarantee payment ofthe same at thu
place designated"
The designation Of the place of pay
: ment was authorized expressly by the
9th section OF the chsrter.
His excellency says this endorsement
changed the currency in which the bonds
we're made payable from current money
Of the United States to pounds sterling OF
Great Britain at the rate Of four shllings
and sixpence to the dollar, and this differ
ence he saws. causes aI.oss to the State on
principal and interest TO be paid Of nine
hundred and one thousand four hundred
and lorty>threc dollars. The whole of
this sratemen. is fallacious. In Eng.
land the currency<, pounds shillings and
pence. In the United States it is dollars
and cents. The commissioners in their
endorsement do not las the Governor
alleges undertake to change the amount
of the bondalor alter the liability Of the
Stale They only say in their endorses
ment, that the Two thousand dollars, A.
merican currency is equal to four hun~
dred and fifty pounds sterling, and they
guarantee the payment of the same
What do they guarantee ? the payment
of the bond. How much is the bond for ?
$4,000, American currency, equal to
$50 pounds sterling, or Uice versa, four
hundred and fifty pounds sterling, equal
10 two thousand dollars American curren-
cy. Suppose the commissioners were mis-.
taken, and that tour hundred and fifty
pounds sterling amounted to moro than
$4,000, could it be recovered surely
not and why ? because they only guar.
antee the payment Of the bond assigned
for $4,000, or its equivalent or equal in
pounds sterling, which they suppose to be
$50 pounds sterling. If it is more, the
guaranty does not cover it, for their con~
tract is only to pay in British currency
what IS equal or equivaI ent to $4,000 A.
mercan currency, and which they assume
or suppose to be four hundred and fifty
pounds sterling. Valuing the pound ster,
ling al 81 Al 3-4.
But admit the fact TO be that the COM
missloners agreed intentionally, and stp-
ulated that the bank should pay four and
sixpence sterling to the dollar, which they
knew would amount to more than $4,000
American currency, what is the legal of.
feet OF their act How can it affect the
amount due on the bond 1t is not pre-
tended that the endorsement has altered,
nor does it attempt to alter, the face Of
the bond. The State agreed to pay $4,000
American currency in London, this is all
she is asked to pay-all that has ever
been demanded of her. Her contract is
not altered in the least. The governor
was aware ofthis, for he says "this ar
gument is no answer, because the bank
undertook to pay the principal and inter
est for the State, and that if the bank has
to pay the difference, her means will be
reduced that much, and the risk of the
State greatly increased" 1t is matter
of establishment that such an argument
could have been made by as astute mind
as his Excelency's. The argument proves
that every bad contract which the bank /.
had power to make, and on which there
is a loss dminshes Of course its means,
increases the risk Of the State, and there
fore releases the State from liability on |.
the bonds.
But this argument can be disposed Of
in few words. The commissioners ei~
Their had power TO bind the bank when
they sold the bonds, TO pay more than the
bonds called tor-or they had not. If
they had power to do so, and they
exercised the power, then the contract is
binding on the bank, because the State
gave the power by granting the charter.
If, in consequence thereof a loss is sus-
tanned by the bank it will diminish its
means in the same way that losses on any
contract it can legally make will diminish
them. Who must bear this loss the
stockholders Of course, and the state be-
ing one, must bear its proportion. But if
the commissioners had no such power,
(which in truth they had not,) then thcir
engagement is not either binding on the
Rank or the State-their acts would on
Iy be recognized to the extent of their
to wit to assign and sell the
bonds to that extent the bond holder can
hold the State and The bank both bound,
and to that extent only they are respou
sibIe. This at once disposes upon clear
and undis;urbed lega grounds of the Go.
vernor's imaginary loss Of near million
Of dollars.
His first aud fifth objections fall under
one head, and will consider them togeth.
,r There is no part of the charter,
which requires that on the sale Of the
bonds the money should be instantly paid.
The riuht TO rive a few weeks or months