Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1844-03-28

az Ntf COMMUNICATE ~ AHr - ttI lStSoti
ture. and they resolved. "Tha, the sale Of the bonds was
highly advantageous to the ae and the bank and in ac-
cofdance with the Injuncuous OF the chatter, rejecting the
highest credit on the commissioners. and bringing timely
All 10 an embauass i community The next Legislature,
which assembled in 1870. appointed a committee on the
aIir Of the bank. but uttered not one word respecting
the sale Of the bonds.
Bu, lie constitution Of Mississippi contains a provision.
that 10 law shall &c passed to raise a loan Of money upon
the credit Of the safe for the payment Or redemption Of
any loan or debt, uatess u be sanctioned by a maj my of
each house, tic yea. and nays being entered on the jour
na's, and be then referred To the next legIsla ure, public
notice whereof ts 10 be given IN the newspapers three
months b,f1re the election; and unless then passed by q
majority in each brunch Of ths second Legislature. Up
on the ground that the State was not org na'ly bound 10
pay this debt. and that the Illegal ac;s ot their agents had
not been ratified 10y tyo successive Legislatures, cfer pub
lie noIce in me newspapers. Governor NcNuit made his
appeal to the people Of the state, and. IN 1912, a majority
Of he members Of both branches OF the Legislature were
found "a be IN favor Of population.
Yet The writer believes that the time viii come when
even the las, dollar Of these disputed bonds Will be paid.
The people of Mississippi, he says, have not the qualities
which make them good merchants aud bankers, but we
should beware Of charging them with Intentional dishon-
csiy:
"Con,ince them TIA, their State is now pursuing an a.
b.'nry. uuf.ir, and oppressive course Of conduct. and They
VIII take care that II IS pursued no longer. they have
been IN great pecunlaTy distress. Their condition has
bean 50 bad, tia, they booked upon q cpdi or demanding
lis dea, as lr,lc better than an enemy, and to be ue'iei
accordingly. TIey have seen that the instr ulion Which
had he proceeds # these bonds. was managed as II II had
been a gambling house. They have been told by those IN
whom they have teen accustomed to put confidence, that
lhc sale OF these bonds was a part Of The same neiar'ous
course Of conduct which ruined The bank, aud that, II they
should pay te det', they must ID u ior the benefit o. those
Who defraudoI the safe in maki,g the purchase Of the
bonds. We may deeply regret that they acted IN CONFORM
ity with these views. We may believe that the conduct
Of lie State has leen unwise ard unfair; that 1t has shown
ary thing hut that diCnitd caution, and that clear Vercep-
non Of the great principles Of Justice, equity. aud c.emen-
CO.. "a trI ,,.r.,r StaA ehnmft oINav pval t II Us
dealings with indiVijuals. Csl ecIaly where IT Is both par
~ ard Judge. But let Us not show the same want OF mod
Grafton. hy renning into extTomts ourselves; let MS not eS-
hIit tie same want Of charity, by believing that a mai nj
~ # he people of that State are knaves. Their affairs
arc moN improving. The people are recovering from the
sore and irritable state into which they had fallen. Allow
lime for them to see the truth, which the high minded
men f that state know 80 well how To exhibit and enforce,
and We shah fod that, though the people may sometimes
( make a great mistake. they mean TO DO right, and they VIII
discover and correct the error"
The case Of PENNSYLVANIA and that Of Maryland orc
treated e at much lcngih. but we have already given a
good deal of space in our paper TO these subjects. We
quote what the article says OF Michigan:
The State of " chigan has denied It's obligation TO pay
a part of It's outstanding bonds. The material facts are
J that. nv an act uf the Legislature of that State. passed on
he 2Ist of March. 1897, amended 10y another act parsed
on tie 18th IT November ~ the same year. Tie Governol
was authorized to negotiate f,ra loan ct five millions o
$ dollars. which was 10 he expended on the public works
d Under his authority, the Governor, on The 1T OF June
1928. entered into "a coz tract with the Morris Canal au'
. Banking Company Of the ciiy Of New York. hy which h.
|. constituted that company The agents Of the Stare to make
j. sale of tie FIVE million loan. The power # The q vem
% or to enter into tins contract with the Banking COMPANY
4 has not been questioned. Acting under this agency. III
Blinking Company, before the 18th Of NoNemhcr' 1888
l. sold To various persons bonds amounting To sl,lefUO
ard duly paid over To the State tie proceeds of those sales
= On the lt day of July. lsil. the interest on the bo.dss
= snld became payable, and hat Sta c not havIrg made pro
? vision for It's payment, II remained unpaid. Reasons IL
. this default were assigned 10y the legislature at a su'st
--l L. L,a,, To- ~ IN ba xVMl rpiaI M 4
=. att I'd sufficient excuse for 1t; but our limits will not PEI
mt US to examine or even To state them. Suffice IT tosa
= that, IN February, 1913, the legislature took the SUBJECT ~
10 consideration. declared that the Stale was legally an
70 c4uiably bound 10 provide for the principal aud interest
these bonds covcnanted with the holders To fund the ~
i, tetest TIL July. 1915, pledged the revenue from The publ
Il works to TIE payment OF the interes: which should accru
- after that time. and voted a direct tax. II be assessed an
= levied in the same manner as the other State taxes. IN o
ro der to paw any deficiency Of the interest which that rev
=. nue. might fail to meet. Thus far. the conduct OF the Sta
h. has been such as the country had a right to expect.
= We y ish II were IN our power To approve OF hIs cot
'c diner Il, resprct 10 the residue of this loan, the history
which Is briefly a. follows. The Morris canal and banl
'e ing company met with great difficulties IN the sale of Il
ID residue of these tonds and beng called on 10y the Go
u crnor IN November, ISIS. 10 state the account OF the
a. sales. and To make such Suggestions ~ they should TIM
=, important concerning future proceedings. rePlied by
he urenu>al 10 pass the whole amount OF the bonds, al pa
rIs nf,'. drducfinq their commission As agents, 20 the cree
on of the STATE OF Michigan provided tue 'overnor won
ler deliver to the HankIug Company the Whole "i ne Don
at once, aud take the obligation OF the nited Stat
Of Bank Of Pennsylvania to pay three ioufths, and o' l
al Morris Canal and Banking Company 10 pay one Iuu'
4, OF the amount, at certain periods winch had been hA
:: in the contract of agency before mentioned. Tothis p
=, nosaI the Governor replied. that he had no objection
~ ihe details; that their contract of agency gave them !
- powers to act as the interest of the State required a
ib,t thcv must take the responsibility OF deciding whe
nau or this was the best thing that could he done Tor le
ny terest of the State. The Banking Company say IN
did svcr. that they think 1t l. best for the state % a'ceP'
hey offer which had been made, and that they nave 'io
der the bargain. The Cover or afterwards '
unit bouds took The obligations of the niied states Ddhf
nm Pennsylvania and The Morris Canal aud Banking 20
: Of many for the price. and IN his next message announ'
tho ihe sale To the legislature. and communicate 10 ih'm
70, documents respecting It. The legislature tH'cTPoSed
-. affection. Subsequently the State received from the
- ey1ase,s about 81 100000 IN part payment oil iheir ooi
,1,,s and then the United States OF fennSN wanna
w. The Morris Canal aud Banking Company having both
come insolvent H.. and having failed To pay the oaauc'
'' the purchase money. the state declared ilat II ""c"
eN- on these bonds 80 much as the purchasers had pald;
had H., :, 80 -, - i.sue peN bonds for this amount,
At 81 ON the surrender of all tie bonds 50 sold "ud thai'
hese the residue. ut tcdS a transaction bcreeH me o"ie
an the p%urckdS rs. and their agreements are 10 DC Jnds'a
the circumstance attending nem.'
II only remains TO add that these nonos' ~ - '"
went 10 the United States Bank of Pennsylvania. y
a pledsed bv that bank 10 various banking houses IN
ends Iope To secure money previously borrowed, money
~. yanccd nj the time Of making the pledges, and II
-, ouently paid on the faith Of the pledges that the u
=" are IN form and hy law. negotiable and that no evid
~ has ever appeared. so far a. we know, that either d
NJ 10 h,nkinr houses had knowledge, nj the time ihey tool
suef bonds. or when they afterwards advanced money
10 rs ,bem. of any defect IN the tile OF the United States
t'' OF Pennsylvania. 81 =
JUS My we should agree, at once that, II the l
equi- S,,,.s Rank OF Pennsylvania aud the Morus oanal
both Banking Company held these bonds, the staie might
TX ref,se 10 consider any greater amount OF Them .;
Mis- Than had been paid for. The law OF all CIVILIZED