The Democratic Whig. [volume] (Columbus, Miss.) 1842-1843, 1843-09-21

A&NNA4tI NNAf -iAH aNAtf 80 49, -lAAlS -
escroWs." These NO conclusions. i admit
Ted, would necessarily TRANSFER The right 0
Judging and deciding whether he bank We
ready q e. INTO operation Or not, from the pl
rectofy % TIE Governor n direct opp1ailioI
10 the sections Of the original chaFtef aFesdJ
quoted. Is vel a. to section %, which declares
that ''the Directory shah be the judges &c'
And even admitting that the Governor do %.
tend to deliver lhese bonds AZ oaor0Ws, hs "a
cellcncy forgot CHE ever knew ~ in the hurry
Of conceiYing this notable amer thQughtthal. q
regard 10 negotiable Instruments delivered e
escroWs, when sold 70 bona 6de purchsaorl
without notice, thsyars binding % ths makers
IN The same manner a. Il delivered absolutely.
And assuredly, no one vii contend that tho
purchasers ofthese bonds can be presumed @
have bad notice ola. g. McNutrs intention
70 deliver these bonds o. escFows when neithel
tho original nor the supplemental charter -
thorized hin 70 annex any such condition %
their issuance and delivery.
Having now disposed Of the quibhlea 81
which the advocates Of thar nearous doctrine
aeaius. which We have been conionding, seek
to Justify /, we will proceed 70 examine tho
only objection which possesses the dgnily q
an argument
7lh That the supplemental act Of 1888. By az
thorisingthe State t0subzcube for &5OO0.V0O
Of stock, reduced the amount Of stock 70 b
subscribed for by citizens and secured by mort
gage to slO,500, 600, leaving the 5,0O0lo0O %
Be paid by the State without any other aecuIi'
" than the assets Of the Bank.
The hrst section Of the supplemental act ~.
thorizes the Governor to subscribe Tor The I'm
ion Bank stock in the name Of the State, ..
mounting 10 S5O00,0O0, TO be paid Tor out OF
the proceeds Of the bonds, "to be executed 70
said bank as already provided BY the originul
cbarier.p This does not alter the terms Of
conditions on which the bonds are directed 70
issue By the original charter nor does It pro.
vide for tho execution Of any new bonds not
directed BY the original charter. II does not
pledre the faith ofthe State fo' the redemption
Of any loan Of money or payment OF any debt
Il does not therefore conflict with the orgina
charter, but recogn yes and adopts the provls'
ions oftbat charter, 90 far as regards the issu.
ance and sale Of the bonds, and legslates only
AZ 10 the aproceeds" Of said bonds when exeeu-
led as directed BY the original charter l'a
Onlv substantive provisions are authority 70 the
Governor to subscribe for S5,OOlO0O OF bank
stock and an appropriation Of the proceeds OF
the bonds 10 the payment Of that amount
There IS no clause Of our Constitution which
renders It necessary that either Of these pro-
visions should have been passed by two sue
cessiye legislatures. The ordinary forms OF
legislation were, therefore, sufficient to make
il q valid law; and these forms were all OBJ
served in the passage Of the supplement-
The bonds could only iEsue By virtue Of the
Original charter because the supplemental
charter makes no provision for their issuance
TIE snlg ar af the eunnlanpnf which rsfors
10 them is the 1st section, Just quoted, and the
nth section, which gives the power Of the pro-
yisioual Directory to the ten managers and d.
reefs the Governor 10 execute bonds npon the
application Of said managers, IN the Ike man
ner as is directed IN the Doth section Of the
original charter. Even though the Directory
may have though: and believed that he issued
them under the supplement, tho law was then
otherwise, and has been 50 decided since. His
opinions or intentions could not alter the law
Indee1 il was o question which he had no au-
thority to Judge, because as we have already
demonstrated, the Directory were the judges
or The time when the Bank was ready to COM
uenee operations, and upon their notifying the
Governor Of that act, The original charter or
Unemployment, required him TO issue the bonds
therein provided for. Even Governor McNuu
virtually admits the truth Of the foregoing pc
siiions in his reply, contained il the evidence
accompanying the report ofthe COMMITTEES be-
fore mentioned, when asked whether she de-
hvored the bonds 10 the Directory as payment
for The s5,0O0,0O0 Of stock, subscribed for By
the State, bis reply was, ~ did no., lhe stock
was to be paid for out Of the proceeds OF the
State bonds executed, 10 be sold Thereafter"
Small as may the respect due either 70 the
statement or opinlons ofhis Excelleney, IN this
instance II stands coTrobofated By The law, and
facts tho case, and is virtual admission THAI
he did not issue thtse bonds Under the let Sec
tion Of the supplement, and The only othor sec
ton oftbe supplement, which relates 70 these
bonds, to-wit, The 18TH does not any wise al
Ter the provisions Of the original charter re-
speetng the form or the amount Of the bonds,
nor Jfthe objects for which they were to BE-
created, but only directs the Governor when
to issue them in the form and for the objects
set firth in the original charter. It ia there.
fore plain, thai the bonds sold for the use ofthq
Union Bank were issued undor and according
to the provisions Of the ong nal charter.
The only part OF the objection oh uudispos-
ed ofis that which alleges thai the security o.
the State was impaired By allowing her toElsh-
scribe for I'VE millions pfai0cE, wit bout naViBF
executed mortgages therefor. A brief exam,
nation Of this part Of the objection viii show
that It is more spacious than solid.
For what purpose did the original charter
require mortgages to be executed BY stockhol,
dep To Be deposited with the State az se.
CURLY against her labilityigor the bonds 10 be
executed BY her. The State, BY subscip'
lion for five mlliens oistocks became a stock
holder on the same terms and conditions aa
other stockholders 70 execute mortgages To
secure the State. Had the Stale then execu,
led mortgage 70 the Union Bank, the Stale
wonld virtually have been the ulorigageor and
morteagee in the same instrument both deblol
ana creditor, and IN the former character
would have given mortgage 10 secure herself
IN the latter character. This certainly Would
have been no security 70 the State, and "a.
only object ofihe charter in requiring moitga
ees would not therefore have been IN tle less
degree promoted. II the execution Of N,
morieapes, in such case, would ior the reasol
stated, have afforded no additional security /,
the Stale then the absence Of Eoch mortgage
could nof impair the security 81 the State. sp.
consequently, the subscription authorized b
the egpplauenial act foe five millions Of stock
10 The name Of The Sale, did not impair lhs
security Of the State. These views are. 0
course founded on The position belore alludet
toihat The Legislature Of the State may, By,
hw passed IN he ordinary forn. Constitution
any suthorize the Governor "a subscribe FL
stock, IL any hank whatsvef, u he name and
~. - Z - H. STATE