New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1843-05-08
VOL. EEa. no %.

,hr,o n tho; extension. and to provide for
tho interest In thu time Ill some other way AT
,hs stsre Of OF difficulty the agent of the per-
sa,, G1diur llle 81 ,3S7 900 arrived. and 1t was
,cfeed the State thould issue net1 bonds for tic
interest which mad already accrued, as well as all
whjcbwouId accrue TO July lS45, being the time
/ yhct the Railroads could be finished, and make
all Of these bonds like the Virginia land scrip,
celvabIe in pavr,lcnt for amy lands owned by the
STATE From and after thus period the revenues
o: our roads are TO be applied to the payment OF
the interest on the bonds: and II there IS any dc
ficiency the law provides for The laying direct
tax 10 make up the amount. 1t was THIS arrange
mcnt mutually agreed upon between this class oil
our bond-lolders and the State, which. stated,
was an honest and far adjustment OF all mat
portion OF our debt which we recognize 1t Is
true il is cduiyacnt 10 the extension OF Tune to
merchant, whose resources, without any iault OIL
his own arc suddenly cut of, and would as soon
think OF assaillng the reputation oil merchant
under such circumstances whose character !lad
hitherto been tlsullied, as | would the State OF
Michigan for entering into this agreement There
Efiay ..,-,- ae..nllrelG WHO would like TO pur
chase character for honesty at higher pflcc
tlan this US YOU remark bu. assure you there
arc many merchants in your City OF tired lnte9-
rity, who have purchased and maintained char
actcr for honesty az tic price VIC nave P;id.
We Go no, pretend il Is any "vcrc rcniatEabie
exhibition of honesty but we do pretend there Is
nothing dishollorabc OF dishonest in 1t.
Let us now look at The situation Of the remain
inp bonds, consisting Of that portion VIC have re-
ceiycd ouIy part payment for, and against winch
we contend we have both legally and cqutably
rood defence to The amount of SS2,ol5,O Jun
These bonds were sold by the State To The Bank
Of the United States and Morris Canal Company,
and consisted of the balance of what was termed
the Sd, 900 900 loan, and 100000 issued for
the benefit OF certain railroads. The Bank and
Canal Company were to pay lis for these bonds
from time to timc as the State required the
money TO pay interest, or TO carry on the public
works The Bank and the Canal Company failed,
and We have, we insist, good and valid defence.
FIRST, to the amount due us by the terms OF the
contract; Second, for the exchange ana rc-ex-
change on the protested drafts, and Third, Tor the
loss accustomed il the stoppage OF our public
works by reason OF the non-iulillmont Of their
contract.
In examining into this question you will lind
the Bank Of the United States, TO protect the mer-
chants of the Western cities, and control the Cot
ton trade of the South, had borrowed large sums
of money in Europe. In process of time the IN.
required further security and Upon tins demand
for further security these bonds purchased by the
Bank of the United States of the State OF Allchl-
ran were hypothccatcd or turned out as collateral
security. The dates, numbers and amounts of
the bonds thus turned out by the Bank to secure
her debts, have all been obtained, they are hcdby
tho following brokers or bankers. IN the following
proportions, VIZ:
uono g. 70 hold SCI 900 600
Rotlschilds & Co .................. iS9,u0O
Morrison & Son..... 262 900
Dcnnlson & Co INSTRUMENTATION. l,o33, ooo
Entire amount of bonds turned out
by Bank OF the U. States 1900. So3,Sl3,0o0
AS TO these bonds the State of Michigan has
the same defence as though they were now m
the hands of the Bank of the United States
They are subject 10 all the equities which have
arisen between the Bank or It's assign, and the
State, and no man doubts for moment, If the
contes. WAS directly between the Bank and the
State every thing VIC claim would be awarded to
us by the strictcst rules of law and equity. The
present holders have the same rights, and no 9th
crs, than the Bank Of The United States would
have: it is in fact Il contest between the Bank
and State, though in the name Of these foreign
brokers or bankers in behalf Of the Bank. 1t Is
to sustain tho positions laid down, for they have
been established again and again, by every court
of law in England and the United States
If we are correct in the positions we take, and
Of this we have not the slightest doubt, then
comes the question as have before stated 1t,
what arc we bound in equity and good conscience
to do? We say to provide for the payment OF
the amount due with interest," which according to
our calculation, is about the sum of S99Sooo.-
This amount we acknowledge amount the
State will issue nclc bonds for whenever the I'm
ted States Bank or its assigning will surrender
the whole amount of the bonds held by virtue OF
the contract she violated. On the other hand,
what do the holders Of these !;0ntIs claim hat
we shall pay the entire face of the bonds with m
tcrest upon them. They point us to the bond,
and the bond alone. In this controversy there IS
:. right and /; wrong we believe we have the
right, the justice of the matter with us, and as
long as we remain of that opinion, we shall man
tam our prcscnl position. The denunciatlons OF
the public press, though 1t were a thousand tunes
more bitter, more reckless than it has been, would
not move us "a hairs breadth. Wemay be called
"repudiators," "swindlcrs," or 'robbers," by men
unacquainted with the respective rights OF The
coatcstng parties, but we arc confident no honest
man, who has made himself acquainted with the
merits of the controversy, will ever think the less
highly of Michigan for the course she has and
will pursue in regard to her creditors.
have thus briefly stated to you the ground we
stand upon; had time, and did deem 1t mate
rial, | could have referred at large and made e1-
tracts from the several contracts entered INTO be-
tween this State and the Bank Of the United
States and the Morris Canal Company, could
have referred to the conditions and limitations I'M
der which these bonds were hypothccatcd IN Eu
rope. | could have referred 10 decision after dc
csion of the courts OF your State, as well as OF
L. ,,..-l,.,L Cur. % ,lo Irn:tcH StntnS Affirm