The New era. [volume] ([Portsmouth, Va.]) 1845-1847, 1845-08-04
From the New York Morning News.
FLORIDA.

The committee on hanks and corporations have
made a report to the House of Representatives of
that State adverse Ia the validity nf the charters Of
the Union Bank of Florida. the Southern Life and
Trust. and the Bank of Pensacola, involving the
responsibility Of tho bonds issued on territorial
faith for their capitals. The committee contend
that these charters and bonds are not binding upon
the State of Florida. nasmuch as that f they are
contracts, the State is no party to them and if
they are simple laws, they stand repealed by vir-
the of the constitution of the State. which provides
that all icrs mol repngndnt 20 The provisions
of this constitution shall continue in force" 1t
IS alleged that the charters Of all the existing
banks are repngnant to the constitution, and there
fore do not continue in force; and. moreover that
their charters forfeited by the failure of the
hanks and the consiitut TN declares that no for
teited charter shall be restored" The committee,
therefore, state:
"lhe conclusion is irresistible TO your commit
tee. that the franchises, powers, and privileges
vested during the nd Interim government esiab-
llshed by Congress. ceased and were Invested by
the termination OF the power which created them,
and which was in its nature temporary and for
police purposes, 10 make needful regulations, and
not in any respect sovereign"
In relation to the bonds, the committee contends
as follows
" Certain persons, pretending to exercise the
powers ot government, made il with themselves
and with one another, and took the privileges from
third party--the people of Florda-and then
raised the capital upon fictitious pledge of their
resources to pay 1T. If it was contract it was
not a law, or the exercise Of legislative power
contract derives its force from the consent of the
parties to the particular act lao is in force by
paramount power But no power was given TO
make contracts, or to bind the people of Florida
he power was to make la,cs not Inconsistent with
me constitution, and subject to the dsapproval of
congress. IL the acts in question were mere
laws, they could he repealed at any time. In
either case they could have no binding force upon
the people or State of Florida without their ex
press SANCTION
When the bonds of the Territory were about TO
ne issued under the law charterinu the Union
BANK OF Florida, empowering it to issue the bonds
OF me Territory for its capital. committee of the
judiciary was appointed 10 take into consideration
the power ot the Governor and legislative council
W IF'a''on To The creation of bonds. That com
"''''ee reported that no such power existed This
vas d'"l 10 Inc sale OF the bonds. and the opinions
~ q, Judge hent. 2. A. Jay and Daniel Webster.
iJn'JS'' were taken to the effect that such power
"ia exist; and Colonel Gamble was. therefore
enabled TO sell the bonds at 10 ner cen, dsco,n,
to Palmer. M'Killop & Dent. Of London odd;no,
violation OF law to doubtful power. The bonds
are made by the bank, and endorsed bv the State
as tne ne" government of Florida have taken
S"c"g ground against these bonds, some definite
''.'t' may possibly be had on the great question
VI o'd'e responsibility. The assets of the hanks
e. :" oo''e cases slaves, and that properly INNS.
S ,S. 'o appropriated 10 the payment before the
,I ~ e""ofSer, can in any event be RESPONSE
we 1 ne London capitalists have Tins fair
0'a"ce lot trying their hands at slave DEALING