The Democratic Whig. [volume] (Columbus, Miss.) 1842-1843, 1843-07-27


tnQecy can ever arise which will justify them in vo
ation 81 their constitution The copsttulional exg-
te1ce Of the charter OF the Planters Bank being July
established the next question that suggests eef Is,
executed under that charter wore negotiated! That
the State by its lawfully and corsutonaly created
agents. received for and behalf ofthe State, the
neY for which these bonds sold, TO the amount of
the bonds and considerable In addition thereto
az q premium on said bonds 10 proposition NOT only
susceptible Of proof but IL 90 universally admitted that
Il would be work cfsupererrcgaton in me to add any
thing IN relation thereto Ii 70 not only true that the
State received the money for the bonds but equally 90
fhat bv procuring stock in the Planters Bank with this
money, the State for time made large profits on the
same =,
Although would not here undertake 10 argue at
length the question relating TO the bonds executed
der the supplemental charter Of the Mississippi Union
Bank and the labity of the State therefor yet will
be INDUCED, trust in contrasting the two questions,
by referring to Of the most prominent distinctions
between them The charter of the Planters Bank was
passed under the old constitution, By which the Legs-
ature had the power, by the passage OF law IN the
ordinary mode by sng session, either ITO raise loan
of money on the credit ofthe State for any amount
or to pledge the faith of the State for the payment
redemption of any loan or debt" 1t was specially re-
ferred to by name and recognised to be law IN iorce
and revived and continued by the present consnu-
ton. The State actually received the money for which
the bonds negotiated and realised large profit
the That the State may have lost such proh and
even the money received by the imPOtic transfer Of
Rail Road Company and by the improvdent and mpro>
per consequent thereupOn, does not alter
the result the liability of the State to pay those
bonds although it may materially affect its ability to do
SO. The charter of the Mississippi Union Bank Uhe
ORIGINAL charter acted upon by the Legislature after
the adoption of the present constitution in which is in
cluded that novel and important section the 9Th section
of the 18th article The author of this wise provision Of
the constitution should be cassed among the benefac-
tors of the age. His foresight sagacty and patriotism
entitle INN the admiration gratitude and thanks OF
Ru &c iniau Tho
people of the State have been saved from burdensomG
pecuniary abitiesfrom serve vassalage to domestic
and foreign undmongersfrom the degraded condition
of being unable to pay their Just and constitutional a>
bties, and perhaps, from still more degraded condi'
ton, Wis from a resort to the abominable and Odous
heresy of refusing to pay, or of rePudiang just and
governmental debt created under the forms and within
the spirit Of the sacred constitution of their government
This section OF the constitution is in these words viz:
"Secton g. No law shall be passed to raise loan
of money upon the credit Of the State pledge the
faith of the State for the payment reden pon of any
loan debt unless such law be proposed in the Senate
House of Representatives, be agreed TO by majority
nails with the yeas and taken thereon be referred
10 the next succeeding Legislature, and published for
three months previous to the regular election in
three newspapers of this State; and unless majority of
each branch of the Legislature elected, after such
publication shall agree to and pass such law and in such
case the and shall be taken and entered the
journals Of each house, Provided that nothing in this
section shall be construed TO prevent the Legisla
ture from negotiating further loan of one and half
million of dollars, and vesting the in stoCh
served the State by the charter Of the the Planters
Bank Ofthe State of Mississippi
The original charter of the Union Bank was passed,
appears upon the face of the act, in the manner
prescribed by the constitution. The faith of the State
was pledged by the 9Th section of The charter under
the provisions ofthe second clause othe Sth section of
the 9TH article of the cOnstitualon which clause is in
these words, viz, ITO pledge the faith olthe State
for payment EedemPtio of sOusSs5~hf" The
provisions of the 5th section of the charter by which
the faith of the state is pledged is in these words
SThat in order to facilitate the said Union Bank for the
said loan of fifteen millions five hundred thousand dol
lars the faith of the State be and is hereby pledged
ntb for the security Of the capital - (prncpa) 'and
interest" This pledge of the faith ofthe Stae for
Fl the payment and redemption of $l5,5O0,O0O contem.
plated by the LIST section ofthe charter to be obtain
eI by the directors of the bank for the and benefit
ofthe individual stockholders" The charter further
provides Goth section) "that upon the stockholders
by their money, Stock bonds and motgages) furnish
ing ample security to indemnify the State against la
biy Oh its pledge of faith, that :hen, and upon that
condition o, the State would execute evidence OF
its pledge of ath bonds from tmI 10 time, in amount
proportioned to be subscribed and secured ac-
cording to the provisions ofthe charter.
The act supplementary to the charter was pass
ed at the January session A. ID. 1888 and was aps
proved on the 9Th day Of February 1893. II was
not entered on the journals ofether House with the
yeas and nays taken thereon was il referred TO
The next succeeding Legislature, nor published nor
repassed. This act conte templates and substantially
provides for the "rasirg loan Of money upon the
credit OF the State" the naked credit of the
State, upon the bonds Of the State executed in The
manner" prescribed IN the original charter, and
not ON bonds executed and "SecNred" as provided
TOR IN the original charter, and for which the State
was previously fully ndemni6ed against liability by
inc money, stock, bonds and mortgages OF the in.
dIvlduaI stockholders of the Union Bank. Indeed,
Inc provisions of the supplementary act, do not
contemplate that the money shall be raised on the
pledge OF the faith Of the State for the benefit of
individual stockholders nor are thew IN enilV ihe
profits contemplated. II contemp lates that the
money shall be raised on the credit of the State for
the sole use and exclusive benefit OF the State, To
enable the State to become q stakeholder. It alters
Inc original charter and he position and liability OF
the state, from collateral liza hlty for Sl5, 100000
to be borrowed by the Union Bank for the use and
benefit OF individual stockholders, BY intending and
attempting TO make the State directly liza bic for S.,
1000, and by retaining It's collateral liability Tor
SIO,5VUOOO as provided IN the original ehaIIer.-
Bonds amounting to SI5O00OOO, were executed by
me governor Of the State between the 5th and lOlh
OF June 1888, under the provisions Of the supple
mentary act about one year before any bonds for
stock and mortgages to secure such stock, bonds
were executed by the individual Stockholders
hese bonds were delivered TO the managers Of the
Union Bank who had been elected by the Legsla-
tuFe on joint ballot on the 10Th day Of February
1885, Tor the purpose alone OF opening books for the
subscription Of stock under the original charter and
possessing no other powers. These managers APP
pointed commissioners or agents for the bank TO
negotiate said bonds. On the 18th day Of August
1885, these bonds were sold on credit by such
commissioners or agents, nominally Co Nicholas Bid
die, but in fact 10 the limited States Rank If Penn