Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1843-12-07


A writer in the London Morning Chronicle, ap-
parently well Informed the general subject.
though doubtless he may fall into some errors,
has commenced series Of articles, which will |
do something towards ins,ructing the British pub
Ito In relation to this matter. The FIRST Of these
articles, we copy below, from ,hat paper Of Oct.
Sc. In the second article Of the series, which
in the paper Of October %, the writer
speaks of the delinquency Of tho State of Louis
lana. We shall take another opportunity to lay
II before our readers for it is due TO the people Of
the United States that they should be possessed
OF the whole history OF these transactions, and if
any erroneous statements are made, that they
should be corrected. BOSTON Daily .adp.
DEBTS OF THE AMERICAN STATES.
Although so much has been written at various
times on the subject Of American State Stocks,
oy WHICH so many persons In this country have
suffered heavy losses, there has been, we believe,
no exactly accurate statement given in regard to
any Of them.
In general, indeed the statements have been
accompanied by remarks which have cast blame
alike upon the States which are in default and
'nose which have kept good faith towards their
creditors; and the consequence Of this has been
that many Americans who have felt anxious to re-
store the credit of their country have been inds-
posed to exert themselves i'm favor of foreigners
who condemned all alike, whether deserving of
blame not.
II should be noticed that the States of Mas.a-
chusetts, New York, Ohio, Virginia, kentucky,
Tennessee, South Carolina, Georgia and Alabama
have always paid the interest of their debt regu-
larry; and In the cases where the principal por-
tions Of the debt has become due as i'm Alabama
and one or two others, it has also been regularly
repaid.
Those which have either failed or refused to
pay the interest Of their debts are the States Of
Pennsylvania, Indiana, Illinois, Maryland, Lou
,slana, Mississippi, Michigan, and Arkansas, and
the territory of Florida.
The circumstances under which these failures
have occurred, differ greatly in each State. In
some, such as Indiana and Illinois, there is at
present real inability to pay all that is due, but
no attempt has yet been made to pay even what
they can. In Maryland there has been consider.
able effort made, though as yet it is insufficient.
In pennsylvania there can be no doubt that there
are sufficient means If she were really determined
70 make The necessary exertion. We will now,
however, confne ourselves to the cases of Mis-
sissippi, Michigan and Louisiana, in which the
worst conduct has been shown; and in the two
hrst OF them pretensions have been advanced for
Repudiating parts Of the debts, which are in d.
rect violation of common honesty: and in the
latter an equally bad course is pursued, at the
same time that the obligation of the debt is a
vowed.
10 begin with Mississippi-the debt amounts
TO S7,O0O,OOO, for which bonds have been issued,
pedging the faith Of the State, under acts Of the
Legislature, signed by the Governor for the time
being. OF this amount So, 100000 were issued
IN 1881 and 1883, for the States portion Of the
Capital of the Planters Bank of Mississippi
These are not disavowed, though the interest is
unpaid The other portion, namely, So 900, 900
was issued in 1888, for the States capital in the
Union Bank of Mississippi. The bonds We're
signed by Gov. M'Nut. who is himself the au-
thor OF the disgracefu reputation of them.
These bonds We're sold in August, 1885, nomi-
naily, TO Mr.. Biddle, but really TO the United
States Bank, and as Gov. M'Nutt quarrelied with
the Union Bank of Mississippi soon after this
lime. he averied To le nMsdiusr sa,.n;ahorLy,-
1910.
On both these occasions the Governor express.
~ tells the Legislature that the State is liable for
'hese bonds; that the faith Of the State is pledg-
ed Tor them, although he at the same time states
that the bank had sold them at a lower rate than
the law authorized. The United States Bank
sold large portion Of these bonds to English in
olViduas at The latter end Of 1888 and in 1889
and January 1910, borrowed money upon the re-
mainder In England, France and Holland. 1t
was IN the message Of the 9Th January, ls4I,
that Governor M Mutt first asserted that the State
is not liable, and this pretence is founded chiefly
upon The circumstances that the bank had sold the
bonds on terms that the law did not authorize,
and he calculated the sale to have been made at
about three per cent below that rate.
lie acknowledged tina, the bonds are absolutely
obligatory on their face, but says that although
this could bind the issuer in other countries i,
does not in theirs. 1t is not TO be supposed that
sueh barefaced attempt to set aside all RESPONSE
Di'ity, because their own agent had not acted
upon the letter Of his instructions, could be sun
posed by any set of people of common intell-
gence and common honesty, that the State of
mississippi was exempt from the common rule of
6eing bound to pay its debts. Accordingly we
nnd t that the Legislature Immediately passed the
following resolutions by large majority:
VI. BE 1t resolved by the Legislature Of the
STATE OF mississippi, that the Stnte of Mississippi
pi Is bound TO the holders of the bonds Of the
State of Mississippi, and sold on account of the
PLANTERS and Mississippi Union Banks, for the
amount OF the principal and interest due thereon.
"2. BE 1t resolved, that the State Of Missis-
sippi VIII pay her bonds and preserve her faith
involate.
go. And be it further resolved, that the insinu-
alton that the State of Mississippi would repudi-
ate her bonds and violate her pledged faith, is
calumny upon the justice, honor, and dignity of
the States
Ahe respectable portion Of the State has to this
tlme continued to labor for the purpose Of bring
ing about restoration of The credit of the State
and providing for the debt The supporters Of
Reputation are The needy and ignorant multitude
OF the State, led chiefly by some party dema-
gogues, and their chief supporter was an Irish
man OF the name Of Hagan, who was editor of a
disreputable paper called the Vicksburr Sentinel
lie has recently met his death in street brawl, |
occasioned by scurrilous attack in his paper on
some individuals Of his own political party.
Recent accounts mention some further proceed !
ings in Mississippi, although we have not accu-
rate details as TO what has occurred. An extra |
session of the Legislature was convened OF the |
10Th of July last, and the Governor (ructer) re-