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

~ ,,,,efuout are ound % be impohqc ele oppie-to
~ neops have fl power % alter themi out 20 con
liupenoy can ever arse which WI Justly ~. Y
i.sss Al ther constitution The copsstui onal exe-
,ee-s n M charter Of he Planters Bank beng .aly
s-fsbgshsd he nsxi question that suggests teen s
M ~ Sisto receive he money for which me oonas
s~.cutod under that charter were negociaieds Ihat
~ gisfe bv Re lawfully and corsttuuonaly crealed
sgents received for and behalf Of the Stale tne mo-
ney for which these bonds were sold 10 we amount q
ne bonds and considerable sum N aoail0n 'nelc,o
"a premium on said bonds, IS 2 proposition not only
srsntble N broo bot Is b universally admitted that
4 would Be a work oisupereuogaton N me 70 aad any
lin, hi relation thereto Il i not only true that ne
rlale rbebyed The money for the bonds bot equally 90
bat bv procuring stock IN the Planters Bank with this
money the State for time, made large prons on 'ne
same 4
Although I would not here undertake 70 argue ~
length ne question relating TO the bonds executed IN
der The supplemental charier Of the Mssiaspp Union
Rank and he Hsbity Of the State therefor, yet VIII
Be INDUCED trust in contrasting the two questions
bv referring 10 some Of the mos, prominent distinctions
between them The charter Of the Planters Bank was
passed under the old constitution, b. which the Legs
ature had the power, BY the passage OF law m the
ordinary mode BY single session. either 10 rase aloah
Of money on the credit ofthe State" for any amount
or ito pledge the faith Of the State Tor the payment or
redemption Of any loan OF debt" II was specially re-
erred 10 by name and recognised 10 be law m orcei
and revived and continued BY t1c present consuu-
ton. The State actually received The money Tor when
the bonds were negotiated and realised large pfohl On
the same That the State may have lost such Proh and
even the money 90 received By the mpotic transfer OF
the stock Of the State from that Bank 70 the Mississippi
Rail Road Company and ny the improvideut and impoN
per management consequent thoroupon, does not alter
the result 10 the liability Of the State TO pay those
bonds although il may materially affect lis ability to do
So The charter Of he Mississippi Union Bank lthe
original rharer acted upon by the Legislature alter
the adoption Of the present constitution, in which Is IN
cudod that novel and important section the 9th section
Of the 9Th article. The author Of this wise provision OF
the constitution should be cassed among the beneiuc
tors fthe age His foresight sagaoity and patriotism
eniite him the admiration gratitude and thanks OF
every good citizen. By means Of this provision The
people Of the State have been savel from burdensome
pecuniary abiies-irom sorye vassalage 10 domestic
and foreign fund-mongers-irOm the degraded condition
Of being unable to pay their just and constitutional LA
bill6s, and perhaps from st more degraded condo
ton vizs from resort to the abominabo and odious
horesy Of refusing pay, Of repudiatng Just and
governmental debt created under the iorms and within
he spirit oftho sacred constitution Of their government
This section OF the constitution is in these words viz
"Soeton g. No law shall ever be passed TO raise loan
Of money upon the credit Of the State or 10 pledge the
faith the State for the payment redemption Of any
loan debit unless such law be proposed m the Senate
or House Of Representatives, be agreed 10 by majority
ofthe members Of each House and entered the Jour
I
70 the next succeeding Legislature and published Tor
three months previous TO The regular election in
three newspapers Of this Slao and unless majority Of
each branch Of the Legislature elected, after such
publication shall agree 70 and pass such law and an such
case the yeas and nays shall be taken and entered the
journals Of each house Provided, that nothing in this
section shall be 50 construed to prevent the Legsa
ture from negotiating further loan Of one and half
million Of dollars and yosting the same IN stoeh re
served to The State BY the charter Of the the Planters
Bank ofthe State Of mississippi"
The original charter Of the Union Bank was passed.
as 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 be charter under
the provisions ofthe second clause othe Sh section Of
the 7h article Of the constitution, which clause is in
these words, viz, ITO pledge the faith Of the State
Ur payment lr redenptian Of aay loan debt" The
provisions ofthe 9th section Of the charter by which
the faith Of the state is pledged IS in these words
srhat 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
both for the security Of the capital e. (pFincipaD 'and
interest,"" This pledge Of the faith ofthe Sae for
the payment and redemption Of sl5,5O0,OO0 contem.
plated BY the LIST section fthe charter to be obtain
Cd by the directors Of the bank for the use and benefit
ofthe individual stockholders" The charter further
provides (30tb section "that upon the stockholders
10y their moBey Stock bonds and mortgages) furnish
ing ample security to Indemnify the State against La
bihty Oh its pledge Of lath that .hen and upon that
condition only the State would execute an evidence Of
its pledge Of aitb bonds from tins TO time, IN amount
proportoned to be sums subscribed aud secured" &C
oording 10 the provisions ofthe charter
The act supplementary TO the charter was pass
cd al the January session A. d. | s36 and was APP
proved on the 9Th day Of February 1885, Il was
not entered on the journals ofeithef House with the
yeas and nays taken thereon, nor was il referred to
The next succeeding Legislature, nor published, nor
repassed. This act contemplates and substantially
provides for the "raising loan Of money upon The
credit Of the State" on the naked credit Of the
Stale, upOh the bonds Of the State, executed 10 The
manner" prescribed IN the original charter, aud
not on bonds executed and "secHFed" as provided
for in the original charter, and for which the State
was previously fully indemnifed against liability by
the money, stock, bonds and mortgages Of the in.
dividual stockholders Of the Union Bank. Indeed,
The provisions Of the supplementary act, do not
contemplate that the mopey shall be raised 90 the
pledge Of The faith Of the State for the benefit Of
individual stockholders. nor are they 10 emily he
profits contemplated. Il cOntempates 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 Stale to become a stakeholder. Il alters
he original charter aud he position and liability Of
The State, from collateral la blty for SIS, 100000
10 be borrowed by The Union Bank for the use and
benefit Of individual stockholders, by intending and
attempting make the Stale directly liable for So
100000, and by retaining IFS eotlatsral liability for
SlO,5BOOOO as provided IN the original chatter
Bonds amounting to sl50O00OO, were executed BY
The Governor Of The State between the 9th and 10Th
OF Juae 1888, under the provisions Of the supple
meniaTy 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 Legisla-
tuTe on joint ballot on the 10Th day Of February
1880, Tor the purpose alone OF opening books for The
subscription Of stock under the orgina charter and
possessing no other powers. These managers ap-
pointed commissioners or agents for the bank TO
negotiate said bonds. On the 18th day Of August
1885, these bonds were sold on a credit BY such
commissioners or agents, nomnally 70 Nicholas Bid
de, but IN fact 10 the United States Bank Of Penn
sVvania AZ the rata of fnnr ehilinms ana sivron.o