Lexington union. (Lexington, Miss.) 1838-18??, 1841-02-27

Now, l agree with the committee, that
The bonds oil the Planters Bank were
sold according to law, and that the State is
bound for tho redemption thereof. Ia
1880, The Planters Bank OF Mississippi
was chartered, and by its charter, the
Governor was authorised 10 subscribe
fourteen thousand shares in that Bank, for
the payment Of which, the bonds of the
State were TO be executed, payable as
follows: $250,000, payable in ten years ;
$4,000, in fifteen years; $250,0O0, in
twenty years and $25O,O0O, in twenty-five
years; which bonds are 10 bear interest at
the rate OF five per cent, payable half
yearly, in Europe. There was an express
provision in the charter, requiring the
bonds to be sold at their par value; and,
in accordance with this provision ia the
charter, the bonds were sold in 1881, at
their par value. The bank, after the
disposal Of the bonds, went into operation,
and punctually paid, until the year lS4l,
the amount of interest accruing on the
bonds, as it became due, which the bank
was bound to do, by the following provis-
ions in its charter:
"SEC. 10. And be 1t further enacted,
That the President and Directors of the
said bank shall deduct from the semi.
annual dividends TO be declared as herein
after 10 be specified, such proportion Of
The accruing dividends upon the stock sub
scrlbed for the State, as is hereinbelore
specified and directed, as shall be suffi.
cient 10 pay the semi.annual interest which
may have become due upon the aforesaid
bonds Of the State, and that the surplus Of
such dividends, If any there be, shall con
stilnte a sinking fund, under the manage.
ment OF the auditor and the president and
cashier of said bank, for the redemption Of
said bonds, and that until the full payment
and exiingulshmeut of the bonds which
shall first become due, amounting TO two
hundred and fly thousand dollars, no part
Of such surpIrs shall be applied to any
other purpose than the exringlishnent Of
the principal and interest of said bonds,
and provided that after the payment and
extinguishment Of said bonds which shall
have accrued thereon, amounting, as
aforesaid, to the sum OF two hundred and
fifty thousand dollars, that it shall be law.
Iul for the State 10 apply such surplus to
defraying the necessary and contingent
expenses of the Government, and provided
also, that it shall be lawful for the State,
after the payment OF interest, and the
extingushmeEt of the principal Of the said
bonds, as the same shall become due and
payable, TO apply such surplus as shall be
found remaining upon account oil such div
idenes to the current and necessary cx.
penses Of this State.
SEC IL. And be il further enacted
That if the dividend arising from the stock
subscribed for by the State, as is herein
specified, shall be insufficient to meet the
interest accruing on the said bonds, and
the payment aud extingushment thereof,
when the same rhall become due, the said
bank shall supply such deficiency, and
charge the same to the account of the state
o! Mississippi, and for the payment thereof,
the faith Of the state Of Mississippi is
hereby pledged"
In 1888 an act was passed, pledging
the faith Of the State for the loan Of oue
million five hundred thousand dollars, to
enable the bank 10 carry on lis operations.
The bonds Of the state were accordingly
executed by the Governor, bearing interest
at rate not exceeding six per cent. per
annum, but only one million of the bonds
were disposed Of, making the amount oil
bonds issued for the bank, two million Of
dollars. Thus it will be seen, that the
State became responsible for two millions
of dollars for the use Of the Planters
Bank, with the express provision in the
charter, that The bank should pay the
interest, as it fell due, as will fully appear
By reference to section 18th Of the charter
Of said bank, rocited above. The three
last insialments Of the interest due on
account of the Planters Bank bonds wa:
not paid by The bank, at maturity, but Mr.
Jaudon, the agent Of the United States
Bank, who was then in England. pays The
the interest due for the credit ofdle State
as he most graciously terms it. The Banl
of the United States has forwarded 10 thu
Governor Of the State, this account TO
allowance, which was paid by Mr.. Jaudor
God save the mark( for the honor o
Mississippi. l. appears, then, that th'
bank has not according TO the require
menis Of It's charter, paid the interest, .
the State, Of course, is bound for the pay
ment thereof. But il is not necessary t
tax the people at this time, to pay th
amount. The revenue Of the State is no
at present sufficient to pay the ordinar,
expenses Of the State, and the tax Wi
have to be increased, greatly, even to pa