New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1843-05-08
THE TRIBUNE.
sffehigan and her Hep,il,ated Bontts-Tile
Reason OF the Case.
DETaofT, April %, 1919.


vol, at length, and make statement of the act
ual difference existing between Michigan and her
bepd.holders. have always believed you intend.
ed 10 do justice to this State, though your cxcit-
able temperament and the very strong prejudice
yod have against any thing even called By tho
,,anlc oil Reputation, calculated TO warp
yo,u judgement. Pardon me if | say i, has had
worse effect than Wrapping your judgement. 1t
bas'Wevcntcd you from making a thorough invcs-
tigation, from examining all the facts on both
.ides with the simple desire of arriving at the
Truth. Your position is such rs would have cna-
He'd YOU TO have done ~ more easily than It IS
nossible for any citizen of Michigan Or any one
soIdipg Ter obligations. TIE rca6on of this is
obrions You have really no cause for taking up
on either sde--you stand aloof from both par
,ics:,wllc wc here feel we have US yet asked
rothing of our creditors but what is strictly right
--our feelings arc naturally u little excited when
the character Of our State IS denounced by
wholesale terms of reproacl and oboquy. Not
anly the State, as State, has been thus dcnounc-
I'd. but the citizens have hccn pointed at as
swindlers, and robbers, for faults they are not re-
spopsble for. These attacks are Unpleasant, and
tend TO engcndcr i'll feeling, wien made by the
conductors Of public Journals whose opinions are
thus circulating almost throughout Tire civilized
world, and especially when made without such
examination us enables them TO form, much less
express, Just and correct opinion. | will en-
deavoT TO put YOU in possession Of the views en-
tertailicd by the people Of this State-ior, III
far as. have any knowledge of public opinion,
there is no difference III the opinions 81 the De- /
nocras (or, as YOU call them, Loco Focos,} and
the Wings.
The authority to make the loan of S5,000,000
was delegated 10 Governor Mason by tire acts OF
Our Lecisaturc--onc passed on the 2lst March, I
1887 and the other the 18th November 1871
On the LIST day of june 1888, Gov. Mason, be-
Ing unable to attend personally to the ncgotla
ion or sale fthe bonds of the State, "cmp!oycd
and constituted the Morris Canal and Banking
Go. the agents of the State to sell the bonds =
1t is unncces:ary to set out this contract ut length,
for no citizen prctcnds to find fault with any act
done by this Company as the agent of the State.
The amount of bonds sold by then, as agents was
81 ,3S7 00a, the proceeds of which were faithfully
accounted for to the State authorities. The
dates, numbers, and amounts as we'll as the per
sons to whom they were sold, and the names OF
the present holders are known. These bonds the
Stale acknowledge as valid debt. They arc
willing TO pay both principal and interest. 1t was
fer the payment of these bonds the law
was passed by our last Legislature, TO which
aieiesscd in my last letter to you. wish TO speak
Of these bonds rs separate and distinct from the
remainder OF the bonds of the State. 1t IS by
mmgkng them together, and speaking OF the en-
tire as one transaction, you, as we'll as Others
have been led into error and by promnlgatlng
that error as widely as your paper clrcuatcs, have
done us great injustice and almost lrrcparablc
injury The :Sl.3S7 600 we admit arc III the
hands Of the bona -tide holdcrs-thc remainder be.
ing S3,Sl3,O00, VIC do not. With the sale OF the
$l,3S7,0 O0 the agency of the Canal Company
ceased: the remaining transactions oil the Conf
pany with the State are as purchasers
You ask why we do not pay the interest instead
of promising to pay some years hence on
shall have the answcr:-In the fall of 1888 the
Morris Canal Company and the Bank of the Unit
ed States proposed to purchase the balance of the
bonds then in the possession of the Morris Canal
Company as agents of this State upon time. The
former relation of said Company as agents had
terminaled--thcy now assumed the relation OF
purchasers in this contract. The terms OF pay
ment were such as would enable us to meet the
entire interest on the bonds issued us it became
due, until the year 1873, and at the samcit would
give us the necessary means TO complete and put
into operation our works ofinternal Improvement,
the annual income of which it was supposed would
pay the interest on all the bonds issued. Thus,
YOU sec, provision was made at the time OF lssl!
ing the bonds TO pay the interest promptly. 1he
State Government, although Il little wild IN some
oltheir calculations, knew it would be very I'M
wise step TO loan S5,000,O00, and depend upon
taxation to pay the interest. The inhabitants OF
a new State are never wealthy, but on the con-
trary are persons OF limited means, depending
manly for their supper, upon their industry and
frugality.
The palmy days OF speculation passed and the
Bank of The United States and the Morris Canal
Company, It's jacket. failed We were at once,
without previous notice, thrown upon our own
resources The means which had been provided
TO pay interest, as well as the means TO carry on
our public works, failed. We had 20 fund from
which we could even pay our domestic creditors.
Under these circumstances, without means 10
pay-without any system OF finance established
what could be done. was the first inquiry, and
what should be done the second. before either
of these questions could be answered, 1t was ne
cessary to ascertain our exact position, and deter
mlne what ought TO be done. The frSt step
which was taken was To ascertain the dates and
numbers OF the bonds. and the names OF the hold
ers Of thNsc upon which we had received the mo-
ncy; and second to ascertain, possible, the dates
and numbers OF the remaining bonds, and whether
they were the hands Of the original purchasers,
and subject to the set-off for the amount OF dam
ages we had sustained by reason of the non full
flincnt OF the contract of sale. Time was ncceS-
sary TO accomplish this-and during the last year
every thing desirable Was aSccrtained. We found
who were the present holders Of all the bonds. and
also thai we could distinguish and separate those
upon which the money had been received, and
those where tho consideration failed; and further
we found that those bonds upon which we had
not received our paw were in such situation as 10