Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1841-10-19

designed to circulate as money. There
is nothing therefore, in the Constitution
of the United States that prohibited the
State from issuing these bonds.
| will now examine what restrict
ions there is in the constitution OF the
State of Mississippi.
The only clause in that instrument
which has any bearing on the subject
| is contained in art. 7 sec. 8, and is IN
the following words:
| Sec. 9. No law shall ever be passed
to raise loan of money upon the Gre
dit of the State, or TO pledge the faith
of the State for the payment or re-
demption of any loan or debt, unless
such law be proposed In the Senate
or House Of Representatives, and be
agreed to by majority ofthe MEM
hers of each House, and entered on
their Journals with the yeas and nays
taken thereon, and be referred to the
next succeeding Legislature, and pub
lished for three months previous to the
next regular election, in three news
papers of this State, and unless ma
iority Of each branch of the legislature
so elected, after such publication, shall
agree to, and pass such law,and insuch
case the yeas and nays shall be taken,
and entered on the journals of each
house: provided, That nothing in this
section shall be so construed as to pre-
vent the legislature from negotiating
further loan of one an half millions
Of dollars, and vesting the same in stock
reserved to the State by the charter
of the Planters Bank of the State of
Mississippi.
1st. To make law obligatory by
virtue of this section, it must be pro-
posed and passed by majority ofboth
Houses OF the Legislature, land the yeas
and nays entered on the journals.
I'd. 1t must be referred to the next
succeeding legislature.
Sd. Itmust be published for three months
previous to the next general election in
three newspapers of the State.
18th. 1t must be passed by the succeed
| ing Legislature and the yeas and nays be
entered Oh the Journal.
| 1.-THE law wants any of these essen
tials it is not made in confrmity with the
constitution, and so far as the bonds exc.
cuted under its provisions are concerned,
there is no legal obligation TO pay them
but if the State receiUed and used the
money there still might be legal obiga-
ton to restore the money she received.
| Was the law under which an d by vir-
tue of which these bonds were issued
passed in conformity with the constitution
and, if so, were there concurrent or subse-
quentry enacted conditions which were not
complied with!
The law directing them TO be issued
is found in the act Incorporating the
Mississippi Union Bank, by the first
section of which the Bank is incorpora-
ted with a capital of fifteen millions FIVE
hundredEthousand dollars, switch said cap
tal shall be raised by means Of loan
to be obtained by the directors of the in
sttution."
The ID, Sd, 4th and 9Th sections provide
for the subscription of stock, and the mode
of securing it by mortgage. The fifth Sec
ton is as follows:
Sec. B. Bet further enacted, That in
order to facilitate the said Union Bank,
for the said loan of fifteen millions five
| hundred thousand dallans-- al- e-'ti.-'1 InIs
STAG be, and is hereby, pledged, both for
the security of the capital and interest, land
that seven thousand five hundred bonds of
two thousand dollars each, TO wit: eigh-
Teen hundred and seventy.fye, payble in
twelve years, eighteen hundred and seven
ty-five, in fifteen years; eighteen hun
dred and seventy five, in eighteen years
and eighteen hundred and seventy five, in
twenty years; and bearing interest at the
rate OF five per cent. per annum, shall be
sighed by the Governor of the State. TO
the order ofthe Mississippi Union Bank.
countersigned by the State Treasurer, and
under seal ofthe State; said bonds to be in
the following words; viz:
The 9th section authorizes the bonds 10
be transferred by the bank to any person
or bearer.
By the 7th section the bank stipulates
to pay the principal of the bonds and the
interest By this act, if the bonds were
legally issued, the State became response.
Bile to the holder for their non-payment.
by the bank, and the b nix became respon.
slble to the State. Or, in other words. as
the bank could not raise its capital on
its own credit, the State agreed to loan
to the bank her bonds, to negotiate and
raise the capital, and the bank agreed 10 |
pay them.
This 9th section was, in the language
of the constitution, proposed in the Legs. |
lature of l837-was passed by that body. |
and the yeas and nays entered on the Jour.
mails, and was referred to the next Legis. |
lature. The 47th section, referring II.
reads thus:
Sec. At. Be 1t further enacted, That
the fifth section of this act, whereby the
faith of this State is pledged for the paw.
ment and redemption of the loan contem.
plated by this act, be referred to the next
Legislature ofthis State, in pursuance of
the ninth section of the seventh article of
the constitution; and that this act be pub.
lished, under the direction of the Cover.
nor, In at least three newspapers of this
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