The spirit of the age. [volume] (Woodstock, Vt.) 1840-1844, 1841-12-10
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1t is contcnded that the faith of the State was
pledged lor the payment only OH condition that the
Bonds were sold for their par value, dollar for
dollar,
! The Governor says:--" It appears that the
bonds were endorsed in blank BY the officers of the
bank and delivered 10 the Commissioners charged
with their sale, Neither their power of attorney
nor letter of instruction authorized those gentlemen
to Gil up said endorsement by making the bonds
and coupons payable in pounds sterling Of Great
Britain at the rate of four shillings and sxpence 10
the dollar. If such change had been made on
the face Of the bonds after their execution and de-
liveryt 10 the bank, the parties making the altera-
ton would have been guilty of forgery and could
have been immurcd in the penitentiary for the Of
fence. 1t will be no answer TO the argument TO
allege that the endorsement could only bind the
Mississippi Union Bank. That institution has un-
derlaken TO pay both the principle and interest Of
the bonds If the bank is compelled TO pay the
one million eighty -four thousand seven hundred
and eghty-one dollars and thirty cents for the loss
sustained by the credit sale Of the bonds and the
change in the currency in which they were made
payable, her means will be reduced that amount
and the risk Of the State thus greatly increased
The State WAS willing to entrust her credit TO the
bank on the condition prescribed in the charter
The faith Of this government have never been
pledged for the illegal and fraudulent sale oithose
bund5
The contract for the sale Of the State Bonds
shows that the statutes of the State in relation 10
the bonds, were made part of the contract The
purchaser was we'll aware of the conditions on
which they were issued, and knew that the purch-
user was neither sanctioned by the constitution and
laws OF this State, nor of Pennsylvania. The con-
tract was guaranteed by the Bank fthe L. States
The whole Of the purchase money was paid by
that institution. The name of Mr. Bldle was
merely used IN the contract us Il device, to get
round that clause in the charter the Bank ithe
United States, which prohibits her from dealing
IN State stocks. The currency in which the Bonds
were payable, was changed from dollars to sterling
to give false coIoring to the transaction, and make
il appear that the bonds were sold at par value
The principle is universal that fraud ,ltiates all
contracts, The commercial law Of this State re-
Ia,iye to negotiable paper, is different from that
OF most other conlrcs The transfer OF bonds and
notes, does not prevent the drawer from setting up
any defence against an innocent purchaser which
could be made available against the original pnyee.
The state, therefore, denies all obligations to pay
the bonds held III trust be you, for the following
reasons:
LIST. The bonds were sold on a credit,
-u' He currency III winch the DOnus were maze
payable, was changed from current money of the
United States to Pounds Sterling of Great Britain,
at the rate of four shngs and sxpence to the dol
lar.
3d. The contract ofsale was fraudulent.
4lh The Bank OF the United States was not
authorized to make the purchase
9TH The Bonds were sold at less than their par
'aIuc, in violation Of the charter of the Bank
The money paid for those bonds did not come
into the State Treasury. The officers of this Gov
eminent had no control over its disbursement The
bonds were disposed of in August, 1888, by col
fusion and fraud, in violation of the constitution
and laws Of this State. The Mississippi Union
Bank, and the Bank of the United States, were
parties to this unlawful transactions You have the
endorsement of both these institutions, and to them
you must look for payment. This State never
will pay the five millions of dollars of state bonds
issued in June, lS3S, or any portion Of the inter-
est due, or TO bscome due hereon.''