The Democratic Whig. [volume] (Columbus, Miss.) 1842-1843, 1843-08-10


ma idea thaI lke sSlo pllnll be fali md u
reference II the liability Incurred W. the state
the Governor uses The following FFmaE 4ble
language
aThe large interest which The State poeses-
sea in tho Planters ana "a ion bank makes a
incumbent on me 70 Gall your particular atten-
ton to the afaAirs Ind eondnet Of those Institu.
tons. sFhe fam liz The State ID pledged Tor
the redemption Of two kailiions Of bonds sold
to take stock In the Plansers' bank, and the
whole Of the capital Of the Mississippi Union
bank. A Just regard for The honor Of the State
demands that those institutions should be man
aoed with great prudence, IN order that ample
provision be made for the pnnctual payment ct
the interest Of the bonds at maturity
AT this time, only one fourth ofthe five mill
lions had been paid TO the bank: and honesty
ty and good fai'h required that the State
should then, fever, dissent from the sale and
repudiate the contract.
Atthe same session Of the legislature, con-
naitfee appointed to enquire into the conduct OF
the commissioners in selling the bonds, among
other things, made the following report
aConGrary, however, 10 the expectation OF
every one familiar with the distressed condl-
ton of the stock market, negotiation Of five
millions Of the bonds was effected by the com.
missioners, highly advantageous to the State
and the hank m accordance with the Injunc.
tions Of the charter, requiring them 60 be SOLD
at par value. A sale rejecting the highest
credit upon the commissioners thems eivss ana
bringing timely aid to an embarrassed commu-
nifty"
From this report, only one member (GeR.
Fnofel dssented: but In his dissenting report
he does not even hint as to the propriefy OF re-
fnsino to ratify the sale. On the contrary, ne
bases his report upon the suppositlon that the
money shall be received, and proceeds to In
dicate the policy which the bank, thus put into
Operation, should adopt. In his dissenting re-
port, he uses the following language:
saAnd whatever respect the undersigned
may and certainly does entertain Tor the dis
tinquished commissioners, who effected the
with MIR. Biddle, and however he
may be inclined to look over, yea, even per.
haps commend, under all circumstances their
slight transgression Of the authority commit
ted to them in the sale of the bonds at less
than the amount stipulated in the charter; yet
the undersigned would este em it at least a lit
tie indiscreet did he even feel special gladness
on the subject at an, publicly to congratulate
the legislature upon the sale Of the bonds as an
operation at all surprising in its character, or
to avow the least establishment that the nego-
tiation was found to be thing at all practica-
bic. The sale was, possibly, the best that
could be made at the time IN the United States
and the undersigned does not at all doubt that
Nicholas Biddle was he only man IN the Uni
ted States prepared at the time to buy so
large an amount Of stock of any kind"
And again: in the same report. at page 227.
,e'makes these remarks upon The character of
he bonds OF this State:
aAIthough the sale ofthe bonds in Philadel-
,hia is not matter which the undersigned
viii complain OF, and he freely acknowledges
hat the commissioners, under all the cIrcum-
taNces, seem to deserve some credit; yet he |
annot concur with the majority of the COM
littee, he again AYERS. in declaring the least
urprise on the subject of the sale. All Europe
nows, or at least every man engaged in buy.
~ and selling ofstocks Is bound to know, that |
hese bonds of the State of Mississippi consti- i
1te, well nigh, the best stock in the world"
Such was the action of the first session of |
he legislature which met after the sale of the /
andss Again: in 1910, the legislature met,
I'D a report was made on the Union Banlss IA
1ich the idea of reputation was not even
inted at. The legislature again met in 1641,
that session the following resolutions ware
dopted by the House of Representatives:
81. Be Il resolved by the Legislature Of the
tale Of Mississippi, That the State of Missis-
ppi Is bound to the holders ofthe bonds of the
tate of Mississippi, issued and sold on account
r the Planters and MISSISSIPPI Union Banks,
,r the amount ofthe principal and.interest due
1ereon.
%. Re Il further resolved, That the State
Mississippi viii pay her bonds, and preserve
er faith inviriate.
-. And be Il further resolved, That the In
inuation that the State of Mississippi would
epudiate her bonds, and violate her pliehted
nth. IS a caIum1y upon the justice. honor and
ignity of the State"
At the same session of the Legislature, the
Ienate adopted the following resolutions
al. Be Il res0Ired b. the legislature Of the
hs Legislature that the character, the stand
ng and true glory of the State depend upon the
acred inviolabiity of its engagements, and
therefore, repudiate The recommendation con.
aimed in the message of the executive, not to
ay, the bonds ofthe State.
s.2. Be further resolved, That the State
I'LL fully recognize and acknowledge her obi
alton to pay the bonds of the State, amount
1g to five millions of dollars, sold in 1888 to
I. Biddle, Esq, and win Gf the same shall be- ,
ONE necessary by failure on the part of the
Iississippi Union Bank to provide for them,l
lake every exertion to provide for the paw.
tent of both principal and interest as the same
Jay become due. Passed the Senate January
g. l841.
Thus, then, IT win be seen that so far from ,
ssenting from the sale Of the bonds and refrI-
ng to recognize the same on account of a vi
alton of their power by the commissioners,
e State has at three different sessions Of the
legislature. ratified their acts If, then, il be
limited that the commissioners did exceed !
leir power, the State cannot now avoid the |
aynlent Of the bonds for that reason. The | {
lie of law IS thus laid down on this subject byl
Lr. Story in bis work on Agency:
"Where the principal, upon full knowledge .
all the circumstances ofthe case, deliberate.
ratifies the acts, deings or omissions Of his n
'ent, be viii be bound thereby, as fully to all
tents and purposes, as If he had originally / i
ven him direct authority in the premises, 10
o extent, which such acts, doings, or onnis- !.
ms reaeh.'' In
Thus, for example, if an agent, who Is en- Il
Dyed 20 purchase goods at q limited price, d
old exceed that limit, and the principal after Il
L knowledge of the facts should receive them !,
his olRf account without objection, Il would
presumed, that he intended to ratify the =
snsaCtieaI y
$50, If a person should, without authority. !,
axe contract to borrow money Cor cprpo. =
tion, and the money should BE- applied to the g
nefle CT the CoFnQKNfian. which nhnsald nffnr Ri