The Democratic Whig. [volume] (Columbus, Miss.) 1842-1843, 1843-09-21
AID IN ESs
Or THEWHIG CONVENTION, TO
THE PEOPLE OF THE STATE
OF MISSISSIPPI

AEaE E-NlUE- AfEa VI AHAE STATE
OF MISSISSIPPI.
The obligation Of The STATE 81 Mississipr
10 pay he bonds commonly called The Planter
Bank bonds. i one, sgahisi which none 9th
qhieclions he thar arc urged against The Uniol
Bank bonds; and yet strange 70 say, 4 man
body Of rgpudatoTs are also DESTROYS 0, 4nnul
fig hem, thus he.nging The fact that relsas
from dsA end nai &c preserp Of The o3nsfi
ftfion, is lhs neal motive which lies Al The bot
ION Of their cFeed.
"A great mimpprchonsion exists IN The pab
- mind respecting The origin q The bonds sols
" lhs State lor The purpose ofes'abllshNng lh'
Painters Bank. The prevailing opinion 4, lha
ths Planiefs Bank Is liable foF those bonds.--
"A reference % TIE history q this Institution
vii demonslraiR The erroruiihs op MON. The
preamble 70 The charter q the Planlers' Banh
declares thse atVhercas, the establishment o.
a Bank in the State Of Mississippi fer he pur-
,poss Of Qensn1i convenience and public rsreHH.
would, On The one hand, BY aiudlCious increase
Of the circulating medium, give impulse and
vigor 10 agricultural Labor aeliffyto commer-
cial enterprise, and increased Yslue ;oour lands
and on the other, BY creation Of revenue re-
lease The citizens Of this Stale from an Uppres-
NO burden 0fiaxes, and enable Them 10 real
lie The blessings Of a correct system Of Inter
nsl improvements, therefore, SC"
Hshcs, Il will be manifest that the objects
Of creating these bonds were general conven-
isuse and public revenue and not the Interest
ofthe Bank nor its stockholders, except Sc Tar
a the latter object was auxiliary 70 the former.
The pubic benefit to be derived from The pur-
chase Of stock in the Planters Bank, was
deemed a suiisient consideration Tor tbs H.
ssstment Of tho pubic fuads.
How then was this investment TO be made
in order to effect the desired result! by :
subscription FOR $4,000 900 Of stock in said
Bank and directing the execution and sale oil
bonds for the purpose Of raising money to be
applied Il the payment Of said stock, these
= Nere nof made payable 10 nor are thy en-.
The Planters Bank; nor is that instl-
nv way liable for the payment Of The
:, ul aaid bonds and only liable for the
,eai thereon lfths State should fail to pro.
ade for Il; and even the liability ofthe Planters
Bank fcy he iatsTeg was extlngmshed 80 lar
uethe State was eoneerned) by the act Of 1852,
transferring 10 and imposing on the MISSISSIPPI
Rail Road Company an the benefit as vel as
obligation growing out oftbe scit bonds LSee
transfer ACT Of 1889
In 1880 tie Planters Bank was chartered
With capital offhres millions, of which the
State reserved s2,0000Ju, being 2000S shares
10 be subscribed for and paid as might there
After be directed, leaving the residue Of 81 ,0O0-
0OO 10 be subscribed for BY the ntivduas
firms, or bodies corporaie--Seci. !.
BY the 7tt section Of the charter the Gov
ornor is authorized ig the nama Of the State, 70
subscrjba forons mdliH out Of fhe two nil oas
fese-red 70 lhe lst section, and Is ord.f raise
funds paw fr the sumo, directs the auditor
afpubic accounts e deliver 10 the President
Directors q 90, b0RGs 10 such sums as sad
directors sha appoint payable by the State to
sad Directory. b1anug 40 interest OF , per
mi, payab'e semiannualy, assignable by the
Directo Y, WHO are further required BY their
cndorsam vat thereof appoint the place where
ruch intert shall b. pad. 4 iurth,r directs
that The pa bonds shall be credited 4 tRert3H
rdlus agan / the stock subscubed for b the
Slate.
The % seolion pledges The lalh oflhe State
to make gooi al losses accrning from any ded-
cheney ofths finds Of he Planters Bank, OF BY
other means, in proportion 10 the siock held by
the State, and the 9Th section pledges the lailh
Of the State for the payment OF the said bolds
~ rnafuriiy, and also pledges the stock "a me
Bank possessed by The State.
The llth section declares, that 1.-THE profits
or dividend aCcruing from the Staies' stock
shall be insufficient lo exiinguish the interest
semi. annually due on hefbonds, then the Bank
shall supply he deficiency and c aree the same
20 the Suite Of Mississippi end BY the same
section the faith n me STATE rs pledged % NE
Bank for the repayment cf what may be so ad-
vanced for the use Of the State.
Under the above provisions, It wl be per-
keived that the State reserves to herse'f he
privilege of owning TWO thirds Of al the capital
stock OF said Bank, and BY another provision
Of the charter, the State reserves The privilege
Of electing ssusa Of the thifissa Directors, who
are 10 manago the Bank: thus securing u her
self full dominion over ia actions. The State
constituted herself a debtor 10 the Planters
Bank for 81 100000 ofs,ock with tie privil-
eye Of increasing that indebiedgess 10 tio0 NIL
lions That in order'to raise money where
with to discharge their indebtedeess to the
Bank. the Governor is authorized 10 deliver
one million Of bonds, to be negotiated BY the
endorsement OF the President, directors, #
Co, 10 anu person whateVer;-Fhat the Stale
would be BY this arrangement primarily liable
10 the purchaser ofthese bonds and Bank only
liable as endorser thereof upon the contingent
eyora failure by the State to pay them as prin-
cipal. This results as well from the nature Of
me transaction as from the fact that by the oth
section the State binds herself pay the pHn-
oipal aud interest Of the bonds ighel due and
oaly requires the Bank TO pay so much Of the
semi annual interest as the State may iail to
pay, 10 event the Bank is authorized to charge
The amount so paid 10 the account Of the State
Of Mississippi. But il win be found On further
examination that the liability which I00uld have
attached 10 the Bank as endorssr Of these
bonds, was prevented BY subsequent repeal
ofthe 7th section ofthe original charter requir-
ing said bonds lobe made payable TO the Presi-
dent Directors 4. Co, Of the Bank, and Of
course Dispensing with the necessity Of their
endorsement
BY a supplemental act, approved December
1871, section 3, 4 aud 5, the Governor is di-
ected 10 subscribe Tor re thousand shares,
amounting to $4,000 Of the residue of one
tmdlion Of stock reserved to be subscribed Tor by
ndividnais, firms and bodies corporate. and IN
order 10 pay for the same the Governor is d.
recled 70 appaint three Commissioners with
power to negotiate q loan not exceeding $500.
GOO. and or that purpose 10 execute in the
name Of ne State, bond or bonds, al ths
terms prescribed ia the 9TH section Of the orig
nal charter, and ussignabls by endorsement,
and the said commissioner are authorized e
agree 90 the am5uH and forms Of the said
bonds respectively. Under and BY virtue O
tbis supplemental act TIC first bonds amounting
10 S500OO0 we're issued and sold BY SamBe