Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1843-10-28
From The Vcksburg Unie.
WHO ARE THE REGULATORS.


who travel in the neighboring States sin
the humbug OF Reputation has been sta
ted, that they are frequently asked wi
are the regulators of Mississippi? I
answer this question fairly, we shou
look back and see who originated the il
famous doctrine, and by what motive
they were Influenced. In the next pIac,
we should examine what was the cours
OF the originstors Of the doctrine unon IN
creation ofthe debt which they now re
pudiate.
It is well known 10 every man VIII
knew anything Of the affairs of this Stat
in 1885, that the creation OF Bank will
alarge capital founded upon real estate
was The principal topic Of discussion in III,
elections Of that year, and that even a
that early period, the creation of the Un
ion Bank was advocated by large major
ity of the people Of the State. A charter
was presented in the January session OF
1896, and passed, and by the clause OF
the constitution which requires il should
be submitted 10 two successive legisla.
lures, it again became the engrossing sub
jet of consideration at the ensuing cleo.
ton. 1t was again submitted and passed
in accordance with the constitution, and
every effort used TO bring it Into opera
ton as soon as possible.
Now let Us examine who were its sdyo.
Gates at that time. Gen Brown, of Co.
piah was a member Of the Legislature
andvoted for the charter in all its forms.
A. &. McNuit voted for it in the Senate
IN 1885, and in 1897 was elected Cover
nor OF the State upon his advocacy Oft
measure. In his executive capacity he'
signed and sactoned every measure be.
longing TO the Union Bank and in 1881
he signed five millions of bonds in behalf
ofthe State, and handed them over to the
Bank. During this period, he found no
constitutional objections to the charter or
his own act in issuing the bonds. In the
summer of 80, commissioners were an.
pointed 10 sell the bonds, and they pro-
ceeded TO the discharge of their duty
They sold the bonds and accounted fair
ly for the action IN the matter. At the
suggestion Of McNuu, in his &c to
the Legislature, committee was raised
TO examine the acts ofthe Commissioners
the committee performed that duty and
reported that the Commissioner had dis
charged their trust faithfully. Previous
to this examination, however, the Bank
Managers who were appointed by the Lee I
glsIature, issued about four millions of /
post notes, in anticipation Of the sale Of d
the bonds, McNutt was Gov. efthe State I
and witness to all this, and still he could |
find no constitutional objection either to q
the bonds, their sale, or the issuance of I
the post notes. '
Alter the issuance of these notes and !
the confirmation by the Legislature Of the c
acts of the Commissioners, the distress of i
the country thickensd every day. Ap. il
peal after appeal was made TO the mana C
gers of the Union Bank TO loan more h
money and save the people from ru- il
IN. The managers refused 10 issue any p
more without authority from the Legis. e.
lature. Scores of petitions were sent 10
that body to pass law authorizing the a
Bank TO discount, land be il remembered b
That this Legislature had a large demo "
cratic majority.) The Legislature found b.
they could not pass law TO compel the Dc
BANK to discount; but in order 10 relieve q
The sufferngs of the people, they passed a Sc
resolution requesting the managers to dis Oh
count MeNutt heard all this and raised es
40 constitutional scrupIes, In accordanceI nj
With this resolution the Bank issued over q,
even millions Of dollars Of post notes. o.
he State under the sanction Of McNu,, al
borrowed 100000 of the money 10 de. de
ray the expenses Of the Government ab
nd stiil no constitutional objection was sill
aised -
The Bank continued 10 loan and McNut,I ba
na ms followers borrowed all they could Su
% stlll discovered no violation of the ST,
institution. A general rush was made an,
me Bank, and the question was not who
40 give the best security, but who wants Or,
o.'ey most, and who has the most inHuen- VIII
~, frlendsto get it. The directors we're vii,
sset on the street to decide upon the anr
AIMS OF the applicants for discounts. dis
70 followed to their homes and begged con
y enlreated to loan more money. Thew cor
loan and continued to loan till thew wb
Jew not what they were doing, nor what w,
I'M they were bringing upon the State cihl
y inns McNutt and his friends could ma
en ind no constitutional objection TO- UNI
al length it was discovered that the reie
anK had issued more money than she ed q
ulo f6oeem, and that large portion Of at b
was loaned to persons who were totally yea
solvent. These errors were not dis IRE,
vered by McNu,t or mentioned BY him. adm
the holders of large amounts of the who
oney became alarmed, and it was re-. and
SEQ IN ioIsjgH markets md depyeca,l me