Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1841-10-28
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-- --Gorcrnor,
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for five millions OF stock, and then say
, "the same 10 be paid for out ofthe proceed
Of the state bonds to be erccutea 10 The sal
bank as already provided for m said cha
, TER" &c. Now in what, | ask, does tn
alter the 9th section Of the original &C
{ by the fifth section the bonds are
, be issued-by other sections these bond
are to be considered us loan TO the banl
, The supplemental act recognizes all this
1t says out of the proceeds OF the bond:
TO executed as provided for in The charter
&c How executed In the name
, pointed out in the charter. The charte
provides for their issuing, and their de
livery 10 the bank TO sell. The supple.
mental act says, when the bonds to b
erpcuted and delivered as aforesaid, III,
manner pointed out-then ont Of The pro
ceeds ofthe bands SO sold, we will pay Il
the stock. There is no alteration OF the
fifth section of the original charter in this
The question as to the disposition of The
. proceeds, is wholly different one from
the authority to create the debt, anC
pledge the states faith for its repay nent
The constitution requires certain formal
ties in order to create the debt. No such
formalties are required to authorize a
subscription for stock in a state institution
nor to release promise or debt due to
the state. This can be done by ordlna-
ry acts OF legislation. 1t is true, the bank
by the 7th section, agrees 10 pay the bonds
issued under the 9th section, and it is also
true, that the legislature, by the supple
mental act says, we release you from the
promise as to the payment OF the five
millions Of dollars, and takeTstock TO that
amount This alters in part, the 7th
section; but this section was no part OF
the law, i. C. the section referred, author
zing the bonds to issue, and consequent-
y was subject TO legislative alteration.
1t is again said, the supplemental act
creates a new debt. The original debt
proposed to be created, was $l5,50o, 900.
If it creates a new debt, of course, II
would add S5,OO0OOO more, which would
make the proposed debt 20,50O,00O iu>
stead Of $l5, 100000. The debt OF the
state was created by the original act.
She could owe to the bond holders that a
mount and no more, provided all the
bonds authorized by that act had been
issued. This debt, the Union Bank, by
the 7th section, promises to pay, and the
legislature, by the supplemental act. says |
10 the Union Bank, we buy your stock to
he amount Of 100000 and absolve and !
release you from your promise as to the
payment Of that amount of the bonds.
III lend my note to A for one thousand
dollars to raise money on; he promises
10 pay it when due, it is my debt, although
have his collateral promise to pay 1t.
If A does not pay it, must How much
am indebted ? The answer is one thou"
sand dollars. Suppose, then, buy a slave
rom A for $500, and release him from
he payment ofthat much Of my note,
low much do still owe! The answer is
1000 The only difference is, that before
bought the slave, | had the promise of
to pay the whole Of this debt; after the
purchase of the slave | release him from
paying one half Of course | then only had
lis promise TO pay one half instead Of the
whole Of the debt.
But the supplemental act wele void it
would leave the orig lnal act in full force.
n such case if the State has to pay the
ponds, the bank will have to be accounta
Die to her for the amount, Whereas under
he supplemental act the bank would not
oe accountable for the five millions sub
'cribed for by the State. The State IN
hat event, in lieu of the five millions
would have the stock she bought from the
bank, and ifthe stock turns out to be worth
double that amount, ii will be her gain,
f it deprecated it will be her loss
So far then as the right TO issue the
bonds and deliver them TO the Union Bank
IS concerned, | have not the slightest hes
talion in saying, that the State IS legally
bound to pay them.
All other objections to the payment of
the bonds arise from their subsequent ne.
gotiation. These objections are all con
tanned in the letter OF his Excellency, the
Governor, to Hope 81 Co. will examine
his objections in detail, and see whether
in a legal view, there is any thing in
them, And here must be permitted to
say, with all due respect for the Execu'
tive, that it is matter Of serious regret,
that his Excellcncy, whose judgment was
so clear and discriminating as to the con-
stiutionality of the law creating the
bonds, should hasten in matter so deep
ly affecting the honor and good name of
the State, have repudiated their payment,
in the name of the State, without any au-
thority than his own mere assumption,
and on grounds which, in the eye OF
the lawyer aud the Judge, arcistill more
lndeicnsbIe and wanting in legal accura-
cy, than the original power to issue them,
In his letter to Hope g. Co, he says,
:" the State" i. G. the Governor, (for the
State had not then, nor has it yet acted
on the question: " denies all obligation to
pay the bonds for the following reasons"
t. L. 4 Il 4