The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-08-08

progress of these States will soousr later lead to
removal Of the embsrrassDenss and difficulties under
which they have for many years labored requires
NO intimation from any source, that several Of
States have been, and still are, delinquent; It 10
too but the Is found in the fact that their
not equal to the ckless extravaganza
practised during the height OF their credit We have
the TACT closely attached to that there is dan
ger of losing sight OF it, without the periodical aIu-
sion to 1t in foreign journals. The method ad opted
therefore by the organs of stock obber In London to
increase and revive the odium attached to saspsn-
sion calculated TO retard rather than accelerate
the event desirable to holders Of any Of these evil
dspees ofindbedness So far srepudaton is concern
ed and far that will apply to the acts Of the
people Of any State there but to make to
ths repeated illusions and application Of the charge
to Michigan and Mississippi, which u.s. that the repu-
dated debts will never be fully acknowledged COM
promise may be with those who hold the bonds Of
these States, illegally issued but whatever Is done in
relation to them will be placed upon that basis and
ether The fact that the bonds repudated issued
In the face Of and in opposition to laws passed FOR the
express purpose of protecting the people against any
bsdy Of spectators who be so fortunate to get
seats in the different legislatures, cannot bs denied
by those oudest in their abuse of
and have idea that the people of either Michi-
gan, Mississippi Arkansas will acknowledge the
Illegal act Of set Of swindlng ecuators and open
the door for the perpetraton of similar acts for all time
to come The existing checks upon the movements Of
legislatures in relation to the creation Of public
debts, Of a salutary and wholesome character and
BY no means should be abandoned.
The London Times Of the 18th Of July has an article
relative to the debt and of the State Mis-
sissippi, in reply to a statement made by Jefferson
Davis, Esq, of TIE Senators of that State. For
the purpose Of placing this matter before the public
the proper light Mr. Davis letter referring
to the repudiated portion Of the debt =
" srATEmrSr FURNISHED BY JErrEnsos DAVIS, Esq.
SENATOR UNITED STATES.
"Tbe State Of Mississippi has OF her question with
bopdholders than that OF debt or debt when the
United States Bank Of rernsylvania purchased what
power of any stakeholder to learn that they had
Issued in Disregard Of the constitution Of the State
ton OF Mississippi any creditor Of the Stss
bring suit against the State and test his claim
against ipdiyidual but conscious that they
valid claim they have not sought their remedy Re-
lying upon empty because faise) denunciaton, they
have made ia point of honor to show what be
shown by Judicial investigation that there being
no debt, there has been default. The crocodile
tears which have been shed over ruined creditors
on par with the baseless denuuciations which have
been hsapod upon the State. Those bonds pur-
chased by bank then lettering TO its falpurc
tn Violate of the charter Of the bank fraudulsn
BY alng the transaction under the name of an
individual, rs may best suit those concerned-pur-
chase violation Of the the law under which
che bonds Issued and in disregard Of the eonsti
tuition of Mississippi Of which the law nfrac-
t,on To sustain the credit of that rckety bang the
bonds hypothecaed abroad for interest loans
which could not be met as they became due"
Ia answering this, the Times has started upon false
premises and of course arrived at false conclusions
Either through ignorance prejudice it loses sight
Of the fact that the law authorizing the loans
constitutional and, Of course, null and void. This
destroys Mt the srgume n and establishes an au-
thorty showing the llegality of the act, from which
fhSro 10 no L..
the following position -
In 1888 that State issued bonds $4,000 600 to es
tablish the Mississippi Union Bank These bonds
were dated June 1885 bearing per cent interest from
their date and 1t stipulated with the bank that
they should no, be sold under their par value On the
18th Of August following the bank sold all these bonds
five equal inst ailments in November January March,
May. and July but without interest The money was
punctuay paid TO the Mississippi Bank. and the Lee
gsature Ct Mississippi the terms OF the sale being
communicated TO them, resolved That the sale OF
the hang and in accordspce Win the iniunciops Of
the charter, Rejecting the highest credit the
msionsrs and bringing timely aid to an embarrassed
community
ALI this admit the facts strange as II may an.
pear for correctly stated But this not all No
one denies the existence Of the law, and the course
pursued by the Legislature, after the loan nego-
tasd but II the business CT the purchaser to
whether the Legislature had the power to make such
loan net the value Of the bonds issued depended
entirely upon that This Is in opinion, the only
just ground for population; and & the principle in
vvsd indebted for the preservation OF the
important institutions of the country. Leaving out OF
the question entirely, the given by the Cover
nor, the time Of the suspension Of the Union Bank
that the stipulation that the State should not be
disposed Of under their par value, had been departed
from and hat the Bank oftbe United States could not
by its charter, legally purchase the bonds and fall
ing back upon the fact that the law passed by Legis
ture authorizing the loan unconstitutional IL IL
clear that the bsndholders have no legal claim
spon the people Of the State OF Mississippi. As
We have heretofore remarked, the only hope OF the
bondholders Is in q CON promise They must abandon
their claims ana leave of browbeatipg and IL Is pos
sihle although not very probable tina, arrange
can be and never will bo acknowledged but the people
Of Mississippi feel disposed to do everything In their
power to relieve those who have been duped by q set
Of swiDder Whose operations for boldness aud extent
we're at the time unparalleled
The finances Of Mississippi steadily improving,
and before the lapse Of many years the interest the
acknowledged indebtedness OF the State will be pro-
vd.d for Delinquency Is far from being reputation,
and nothing IL wanting but the ability to promptly pay
IN. interest the non-repuds,ed debt 1t sccrues
The people have the will without the MEANS but every
fraction Of both principal aud interest, accrued aud
aeerupg will be uti mately paid. There consids
rshe speculation In London at the latest aatea In Mis-
sissippi Union Bank Bonds, which fully for
the Of the abuse relative the debts Of the
States Of the American Union.