Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1841-12-07
THE MISSISSIPPI BONDS.

THE MISSISSIPPI BONDS.
The history orthe transactions will be
found in the following:
''These bonds were created for tho es.
lablishment of the Mississippi Union
bank. The charter of the MississiDpi
Union bank prescribes not only the sub
stance, but the form of the bonds. and
provided that they shall be in the sum Of
two thousand dollars each, "which the
said stale Of Mississippi promises to pay
in current money Of the United States. 81
to the order of the bank, with interest AT
the rate of 5 per cent. per aunum, pays.
BILE half yearly, at the place named in the
endorsement Of the bonds. The act fur.
ther provides that said bonds shall not be
sold under their par value. The bonds so
created were delivered 10 the commission
erS, J. G. wilkins, f. c. Wilkinson. and
W. NJ. Pincard, Esqrs. Those gentle.
men in May, 1888, applied to Nicholas
Biddle Tor sale Of the bonds. A con.
tract was finally entered into by which
MIR. Biddle purchased the bonds ON time,
and the payment was altered from the
current money Of the United States, as
prescribed by the law, to the currency
OF Great Britain. The bank received in
part payment the post notes of the United
States Blnk. Gov. McNutt refused to
acknowledge this contract, and cautioned
tho public by proclamation, not to pur.
chase the, remaining S5,000,OOO. The
legislature made no provision for the pay
ment Of tho interest, and the United
States Bank, having a large part of the
bonds on hand, advanced tho interest
abroad 10 sustain the credit of the State,
representing that the State had paid.
When he' United State Bsnk failed she
was unable TO go on paying, and then
Hope g. Go. Of Amsterdam addressed a
loter TO Gov. McNutt, calling his atten-
ton TO the fact. In The answer Of Gov
McNulI, dated July, 1871, he goes at
length in the reason for not paying up
as follows:
The State, therefore, denies all oblga-
ton 10 pay tho bonds held in trust by you,
for the following reasons:
ist. The bonds were sold on a credit.
2nd. The currency in which the bonds
were made payable, was changed from
current money Of tho United States to-
pounds sterling of Great Britain, at the
the rate Of four Shllings and sxnence 70
the dollar.
3rd. The contract of sale was frsudu.
lent.
4rh. The Bank of the United States
was not authorised TO make the purchase
5lh. The bonds were sold at less
than their par value, in violation of the
charter Of the bank.
The money paid for these bonds did
not come into the State Treasury. The
officers Of this Government had no con.
troll over IFS disbursements. The Bonds
were disposed of in August, 1888, by a
colusion and fraud, in violation of the
Constitution and laws Of this Slate. The
Mississippi Union Bank and the Bank Of
The United States were parties to this VI.
lawful trapsaction. You havo tho en-.
dorsement Of both ,hose institutions, and
to them yon must look for payment.
This State reper rih pay the FIVE million
Of dollars Of State bonds. Issued in June,
1888, or an? pnriion Of the interest due,
9r To become due thereon.
The losses sustained bv the contracts
were estimated as fellows:
Interest on five million State
bonds from 7lh JuaP, 1888,
TO lsl. November. 1888 $lo0 900
crest or four millions, two
months 3333s
interest on three millions, two
months 24,OeO
interest on two millions, two
months t6 669
Interest on one million, two
months q 3ca
--