The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-07-11

ZJ,l
From this it appears that the specie paying banks stood
the demand for specie firmly and the three sound banks
paid nan half the specie draw during the
While the other banks afer paying out small amount
faudulenty suspended with large amounts of specie in
their vaults The State Bank and the City, both hold
specie than the Mechanics. which continues to pay. The
suspended banks are, however undoubtedly inso
vent and must later wind up. The longer is
delay ed the more the business community will suffer
This remains Of the Bdds policy in Louisiana will
ly perish like the paper bubbles Of Mississippi.
We have received the report of the select committee
the Mississippi Legislature the Union Bank Bonds II
book Of orysix pages and contains the examinations
of Governor McNutt II. G. Runnells, E. Turner, the
commissioners, J. c. wilkins, Z. C. williamson and w
NJ Pnkard with Others in relation TO the subject Of the
s. 900 of State bonds sold oNchoas Bdde
a the Mississippi Union Bank. The committee after pa
enty summing up the evidence and investigating the
facts, arrive at the following resolution -
Resolved therefore by the Legislature of the State Of
Mississippi That for he set forth in the foregoing
report this Legislature Denies that the State Of Miss
sppi under any legal moral obligation redeem tn,
Mississippi Union Bank to Nicholas Bidde on the ls1
day OF August, 1888. But while this Legislature does
most soemnly repudate said bonds and declare the sale
thereof as illegal, fraudulent, and unconstitutional yet
that the holders Of those bonds may have every possible
legal and equitable remedy for collecting the paid
said bonds they are hereby invited pursue the
dy afforded by our laws and constitution against the Mis-
sissippi Union Bank and against ALL and every person
who by his her, or their connection with said institution
have rendered him. her themselves liable either in law
OF equity, for the debts of said Bank
In relation TO Mr. Biddles agency in the matter, the
committee decided as follows:-
Thirdly. Did Mr.. Biddle in making the contract, in
tend fraudl From the facts above stated tn,
Committee can come other than that he
was guilty of intentional fraud He had the original
and supplemental charters before him. the power OF
attorney of the commissioners from which he must have
known that he was closing contract with the commits
sioners which they had power to make 1t could
have escaped his acute observation that the intention
the charter was that the full amount of the bonds should
be paid the only grounds upon which they were allow
ed TO be sold and that per cent interest," was the only In
presented to the purchasers and that II he trade
upon different terms than those stipulated in the charter
and power of attorney Of the commissioners he traded O.
his peril as their agency special Yet with all hes'
facts before him he cheated the commissioners out oil tn
back interest aud by the change to sterling money mad
the Bonds a cent instead of per cent Bonds. Tn
Committee do not, therefore, believe that they do Mr. Bid
die Injustice in coming 10 the conc lusion, that thi
whole transaction he has been guilty OF intentional
wilful fraud.
This all very plain and to the point and the conclu
sions Of the committee backed by such facts and argu
ments, ms place the matter very plausible ground
They show that the law authorizing the sale violated
every particular and that through the fraudulent in
tent and practices Of the purchaser, who imagined tina