Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1843-02-25
No. so.

the Otate, 10 the amount OF Si45,UOO, eII-
bracing the sums above named, Of S125,o00,
to build the capitol, and 10000, Tor inter-
nal improvement purposes. On this appII-
cation, the Bank entertained some doubt oil
an authority on her part 10 take the bonds,
and submitted the question Of such power,
to the advice Of the Bank Attorney. After
diligent examination into the provisions
Of the charter, and especially, the 3oth sec
ton, the Bank Attorney advised the board
OF directors, that no such authority was
vested in the institution by the charter, that
"such power could not we'll be raised by
implication, and that the whole spirit Of the
charter was against it,"
The President Of the Bank on the 4th Of
March, 1899, communicated to the Execu-
tive the opinion Of the Bank Attorney, and
the action OF the board of directors there
on, declaring 'that the board regret that the
right has not been granted in the charter,
otherwise they would promptly have made
you liberal offer for the bonds"
Notwithstanding the Bank directory was
advised OF the provisions OF the laws, and
the conditions on which the Executive was
authorised to negotiate these loans, they
passed resolutions to lend to the State, the
sum OF Sl25,O 900, and the sum Of $4,000
for the purpose aforesaid, for the period OF
twelve months, at six per centum. BY
provision OF the resolution, the Bank agreed
to cancel the loan, SO soon as the bonds
were sold, for an amount equal 10 the loan
and interest, and the proceeds were deposit
ted to her credit in New York. To this
proposition Of the Bank, the Executive &C
ceded.
The 3oth section of the Bank charter.
declares among other things, that "the
Bank shall not under nypretence discount
any paper which will not fall due within
twelve months from the time such paper
may be offered for discount" Yet state
ment prepared By the Auditor of Public
Accounts, and examined by the committee,
shows that The bonds executed to secure the
several sums Of $4,000, $4,000, and
$4,000, were issued in conformity to the
I. several acts authorisng the issue; and none
/. of them for less period than twenty-five
, years.
: The foregoing statements, present BRET
e ly. the premises upon which the Bank
D claims the Indebtedness Of the State, for the
: loans before enumerated; the laws upon
u
! the action Of the bank thereon.
e The examination which your committee
S has given to the laws authorising the loans,
? and the mode by which they were negotia-
: ted, forces them irresistibly to the conclu-
: sion, that the whole negotiation entered in
e TO by the Executive. and the Bank, was in
S violation OF law. The Legislature author.
!. ised loans upon certain conditions, and
\ among these conditions II was enacted that
: the loans in the two first cases should run
: for fifty years; and in the last for not less
e than twenty-five years.
r The committee cannot perceive that the
j Executive had any authority to change
s these conditions, or TO contract in violation
) OF them; and they are impelled TO believe
e however we'll intended, that such an eXer-
k else of authority was an assumption OF the
: powers of Legislation.
e He contracted for loan for twelve
months, when the law declared it should be
n for fifty and not less than twenty-five years.
r Such violations OF law should not be silent
10 ~ tolerated. Its tendency would be to rem
y der Executive paramount 10 legislative ALL
" thortv. But, was the conduct Of the Ban K
is directory less reprehensiblel The extent
rs of their powers to loan money was eX,
pressv defined. The capital loan Of 1897
ID '39, could have been made on no other con
Is ditions than the terms prescribed by law
e. Yet in open violation of the restrictions Of
le the charter, the Bank advanced the money
Is as the Executive proposed. To the Patrl
IN OF, the whole transaction is startling. The
e. highest functionary of government, render
le the laws mere nudity. An institution tn
n mere creature of the State, in direct viola
a. ton of her charter. yields willing hand I,
a consumma,e the infraci;on. The Legisla
A ture should never sanction such an assump
IL ton of its powers, or recognise any act
10 of the agents of the State, other than thos
en- which are in strict conformity 10 the law
OF Under this view of the subject, the commit
tee are OF opinion, TIE loans were made 70
-; fifty and twenty-five years. What RICH
'al then has the Bank to demand their immed
IT. ate payment! The committee can see none
ms The State has incurred no obligation, eilhe
legal or moral, TO pay before she promised
Dr. The bonds themselves, show they are nc
ng due: they are made payable coniormabl
10 to the enactments of the Legislature. Il
IN moreover manifest from the correspo
Up dence that took place between the Exec
tive and the Bank, that it was DESTROYS
8, taking the loan as prescribed by Law. II