The North-Carolina standard., 1842-06-08

I
" - Scbool Fund in the Bonds of Bankrupt CorPo-
- The question answers itself Governor MORE
. - remarked in his speech at Mr. Badger Dlnner'
rt he hoped to do something to make MS liehus anu
/ -. no1oies remember him, )" and verify ne seemshAeIy
70 succeed -s.z.-5
A. acond proposition was that it is wrong to buy up
, - poI Road Bonds with the State money, because
a. ,slaure never gave the Board authority to 0"y Z"
49, r., redeem or sink this Debt 1t is done without fdo
M = an far as know. Whatever may be Its form' the
o,or in substance and effect becomes purchase Of
t5e Road by the Board Of Literature without any law to
.rnt,t Carry the system out. That is the only fair
o 70 test the proprety of any financial policy Sup
o:e tbe BOARD to continue this dealing in Rail Road
p.arnt;I tbev get THE WHOLE THEM. Pay day
orives and what then The Board say to the Rail
Road Company "pay yOMr Debt of 100000 Dollars -
The Company answers you our creditors and hold
or Bonds we have nothing but the Road to pay with.
Take It and do 1chot you please tOith it, The Board
can make no answer to this They get nothlns' or to
take worn Rail Road, and leave his "J'7e1ds and
foes to remember Governor WOrehead" Yet, what mat
ers that to him The elections will be over years be-
fore it happens and if the people complain of it he can
laugh at it then and ask no Odds
My third proposition that this operation OF buying
Rail Road Bonds might probably release individuals from
their guaranty (sch as is) the extent of these pur
chas
onnion decidedly yet it is free of difficulty to fair
minded man. So long there doubt about it, State
Agents should orbear such purchases without express
law for it. Simplify it and look at it straghtly and then
answer for yourself
A. endorses the Note of b., and c. agrees to Sc ndes
,,ify H. against any Toss by reason Of his ENDORSE
MENr" Now fA. should be obliged after this guaran-
y to pay the Note to the holder he demand from C.
performance of his Guaranty, because he has last it
bv reason of his endOrsement''
But if A. after endorsing the Note bays 1t and loses it,
can his loss be called &c loss by Of his endorse
aeut? If not, the Guarantor is discharged Has the
loss occurred by Of has er1dOrseet, or rather
has it not happened by Of this impruden p'-
chase of the Note This is the very of the State
and the Rail Road. The identical condition is at
tached also the States .Orgage upon the Rail Road
and the same doubt necessarily arises upon inquiry
whether this buying of the Bonds does not operate
discharge of the Mortgage, well as the GuGr1ntOrs
Bear in mind always that the Guaranty and the Mortgage
were not given for pGynr off this DEBT Of the Rail
Road but cnly TO indemnify North Carolina against
.loss upon her ENDORSEMENTS
NV fourth proposition was that it wrong to purchase
these Bonds because the Legislature refused their MO-
NEY and lent the Road their CREDIT. The Board
have now reversed the action of the Legislature by lend
ing the MONEY the Bonds. do not mean 1t oten-
torzng such an act is it not palpable 1swPatiOn
as General Jacksons removal Of the DepOsites was said
to be?
It remains for me to consider my fifth and last PROPOSE
on which was that it is wrong make these purchases
except after p1bc notice to the tCOrd Two men hold
Rail Road Bonds-one may be supposed to be in favor
with the Executive, and the other not. The former
knows that he cash his Scrip at "Stdte b0GT6'
and the other does not The former therefore, gets the
money for his Bonds upon terms that are favorable
whilst the other is compelled to go to UstTT and be
shaved upon his! This ''because he Is kept In the
dark" Such system leads to faVtrtism with public
money The system itself prolific OF PartIallty and IN
Justice stock-jobbng and shaving. Again: A. knows
that the Board will buy and at what price, B. does not
The latter is compelled to raise money, and falling into
the hands of A. B. agrees to sell his Bonds to ham at
discount (say of 20 per cent) A take them to the
Literary Board and sell at 10 per discount only and
rockets for his own use profit he has made Thus he
may make profit with his nao'Iey but with the
'pubc money! which he is enabled to do by reason OF
auOred position wherein he learns the rules of pub
lie Board that concealed however from the public
eye do not say that all any of this has taken place
do know how that may be- All that was necessary
for nv argument was to show how it might occur-how
likely it may take place-wth without the knowledge
ofthe Board.
Yet if this proceeding OF our State Beard In thelr Ina
agement of public funds were known to all the people
alike every would be put upon an equality Such
course is alone consistent with right
By the published documents Of our Legislature 1t
would appear that time the Bank of the State was
creditor of the Road at least siry thousand dOH0rs-
understood that the debt has been settled How,
know not-yet the darkness in which the people have
been kept about their Finances obges TO conjecture
and see no conjecture probable than this one
That the Bank having taken Bonds endorsed by the State
for the amount afterwards by sort process, pass
the Bonds to the Literary Board for cash Is this
not? repeat lin order to avoid misunderstanding
that do not charge it to be so, only because don't
know it-though, to considerable ertet believe it
Is my conjecture probable? Let US The Bank held
$50 900 of the Bonds They do moi hold them now
at least their statements do not contain them now
They have not guen them GuOGy, aoe all hlO00 No one
else has been heard Of buying so large sum OF Rail
Road Bonds in the market Suddenly it comes to light
that the Literary Board have been dealing in these Bonds
and nothing else ever since 'Mr Gales appointment"
To what amount is told yet it must be to large
amount, If it be true at all stated by one OF the
Board, that not cent has been loaned to the People,
know also that large amounts of money have been
negotiated by the Board in form. In the view OF
rcb f,cfo 10 ;nad that he