Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1841-12-13
g. STATE JOURNAL.
MONDAY, DECEMBER 10, ls4l.
PROGRESS OF LOCo-FoCo EXPERT.
MENTS REPUTATION OF
STATE DEBTS
STATE DEBT S.


in reply to the Albany Argus. Tho Argus, our
readers know, probably, is a leading locofoco
print.
THE REPUTATION or STATE DEBTS.
We have, 10y perseveing effort, at length smo
ked out the Albany Argus on the subject of repl-
dation. That puper deyoies nearly two columns
of It's Tuesday evenings issue TO u direct and la.
bored defence OF its political allies OF Mississippi
IN refusing TO pay hesitate bonds
Let us examine The grounds on which the Ar
gus iuslifies the conduct OF its Mississippi breli
rem.
The Legislature of that State both Houses
Van Buren, in politics in 1897 passed bill TO
authorize she borrowing of seventeen aud half
millions Of dollars, for banking purposes Two
millions were so borrowed and invested i'm The
Planters Bank. This, the Argus says, its party
10 not object to paying. is it not the fact that
the hank will pay tho bonds itself? And if So is
not the offer of the State to fulfil its engagement
in this respect rather Il cheap way of showing
honesty?
The remaining fifteen and half millions were
10 he invested in new grand Union Bank OF
Mississippi According to the Constitution Of
the State, the act authorisng this great loan was
passed by the Legislature OF 1887, advertise in
three newspapers for three months prior to the
next State election, and approved by the yeas and
nays of minority oithe Legislature, then elected,
10 wiz tHa OF lc3S 90 tllat lie Dlll 10 establish
the Union Bank and borrow seventeen millions
and half was deliberately approved by two sue.
cessive locofoco legislatures and Intermediate,
b, the people OF Mississippi, to whom il was thus
distinctly submitted,
The Bank ana Loan bill having been thus ap.
proved, the Legislature proceeded to pass a sun
Elementary act, atlhorisng the governor of the
State to subscribe for fifty thousand shares Of It's
stock to he paid for out of the proceeds of the
State bonds, MS above authorised. The managers
of the Bank were authorised to appoint three
Commissioners to sell this five millions of slate
stocks where and when they should think proper.
but not under par. The Commissioners. thus
authorized, proceeded TO sell the bonds in Phila-
delphiG, taking therefor at par bill on Phadelphin
having some lime to run. These bills were worth
money in Mississippi were paid into the bank as
cash, and paid out Ivy the Bank as cash. They
formed a most acceptable Medium of remittance
10 the East were paid promptly when due, and
were doubtless worth more than cash in MISSES
ipp when at maturity Nobody can doubt I'M,
both the original purchasers and The present hol-
ders Of these bonds have paid more than they
are worth tor them far more Than they could he
sold for if they were fully acknowledged by the
State.
Thus stand the facts, then: The people Of Mis-.
sisslppl authorized the borrowing Of seventeen
and half millions of dollars on the credit of the
Stale, rs basis for banking operations, whereby
their general and pressing pecunary want,
should be relieved; and in pursuance Of That law
seven millions Of bonds have been issued on the
faith and credit Of the State and the full value
realized therefor, ltthera has been ilregularty
in The issue--if the supplementary act was nor
authorised by the former act--it has been who'll,
The fault OF the agents Of the state either drec,,
chosen by the people, or created by those who
were so chosen. The money has been spent pre-
cisely as the people intended it should he-loancd
ont among them. Doubtless many am 'ng them
have failed to secure so large share of it rs they
expected and desired; but lal nvalidate the
contract? 1t strikes us that we never knew all
instance Of pleading the baby net TO avoid the
payment Of an honest debt, where the pretex,
was more llimsy than in this case.
The Argus lays emphasis on The fact that the
bonds were purchased by Nicholas BidIIc, and
shat the United States Bank guaranteed the pay
ment. What does this motlcr? The question
is "Ought Missi isIppi to pay Z" and the fact thai
MI Bidde or the Bank was the original purchaser
can hardly he valid defence in law, however il
may he in Loco Focoism. And ms il is manifest
that The purchasers undoubtedly believed that they
were dealing with men who had right to sell,
and That the bonds are now held by foreign capi-
tnliss, who have paid far more for them than they
are worth, it seems TO us la. the talk of The Ar
gus about The Bank, cotton spccuhtionS stock
gamblers, &c. Is very poor excuse for deliberate
,illany.
Just look at this matter: Here are five millions
OF the bonds OF the state Of Mississippi issued un-
der the explicit authority of her Legislature, exc
cuted by her governor. and now undoubtedly in
the hands of innocent and unsuspcions holders.
These holders say to the State, "pay us the inter-
est on your bonds" The Wings without excep-
ton respond, " The debt was unwsely contracted,
but it is morally binding and must pay it,"
Locoiocosm steps forward and says, "No, we
will never pay u cent of 1t. You hare on our
bonds The endorsement IF tioo broken and insoirenf
HODLs IoOE IN ibon, - L. This n,Ilinu
TO injury.
The Argus asks, "Why are not the denunciations
of the Tribune poured out on The managers ofthe
Unicn Bank p because then guilt or innocence
is nothing compared with the spectacle Of n state
repudiating It's debts They may have acted dis
honestly and they have certainly been guilty of
lending the money of the bank TO those who can
not repay it, md who, by voting the nnt-bond
ticket have shown themselves rs insolvent in
morals as in money. If they have exceeded their
authority, fthey have acted dishonesty, let the
state punish them most signnly. She has courts
and laws and prosecutors and prisons. But let
her at the same set an example Of honesty herself
and not send men daily 10 the penitenliary Sor
acting on her own principles.
The assertion of the Argus, that the struggle
on one side has been 10 screen the directors.
stockholders and borrowers Of the Union Bank"
If il refer TO us, is mean falsehood. We have
said no word intended TO screen them. We have
oiJeCtloh W ste every VI lIlen III lle pen
iienliary, who in any sense deserves it, We ne-
Their know no care for of them. Our only
socilude is for American credit and American
honor
The Argus says that the people OF Mississippi
"were deluded with the syren song that the I'm
ion Bank and its stockholders would not only pay
all The moneys borrowed OH the credit of the
State, but that they would supply the State Treas
nry with loans and dividends to large amounts
besides Certainly every body was to he made
rich by the operatlon and iohae it was thus prom
ising the scheme was very popuar--iust as in
creating the State banks of Alabama, Illinois aud
Arkansas neither of which has ever been W hig
--based upon the credit of the State. But the
speculation has turned out an lndia.lubber one.
md now Locofocoism coolly turns round and
says .Messrs. holders of our bonds, collect your
pay out Of two rotten insoIyent banks, whose