The Yazoo Democrat., 1853-03-23

new orleans at the time these payments were
made there,was enormously high-ranging from
FIVE to ten per cent. The directors Of the Union
Bank. .(if my recollection serves mel fixed the
rate at its counter at per cent, but OCCASION
ally sold it even higher. Five per cent. on four
millions would make the sum Of 100000
which transcends considerably the loss of in
terest: AZ per cent. would overgo il by few
thousand Whether the Bank did or did
not so avail itself of the benefit of the exchange
as to make up the difference entirely, in no way
affects the argument. 1t is believed that it did,
The Directory were assurdly advised to do so
by the commissioners, and if they waived the
advantage, the circumstance does not affect the
sale. There was Udlte in New Orleans and in
Natchez, payable to the order of the Bank,
equal to the nominal value Of the State bonds
with the accumulated interest upon them. In
other words, the par UaIue of them and even
more.
1t is said that the law or charter of the
Bank directs that the bonds shall be sold for
gold and silver. This is mistake; there
is no such provision in the charter. The
charter directs that the bonds shall be sold
at par valne, and think have shown that
they were sold at par value. 1t is objected
that the bonds were sold on a credit. How
long do those who make this objection sup
pose it would have required (there were no
Ocean Steam ships them to convey the
money from London to Jackson: How long
from London to New York? from New ork
to New Orieans?from New Orleans to Vicks-
burg? from thence by wagons (there was no
railroad between the two places them to
Jackson? | say nothing of the expense or
risk of transportation. This is something
it is true, but we will hrot0 that sn. From
the state of the argument, | think we can
afford it. 1t will be remembered that the
sale was made Aug. 18th, 1888, and the
first instalment paid on the 1st day of Nov.
following. Certainly they were not sold for
the cash told down at the time-nor does
the law require it. But they were sold for
that which was at the time equal in value
to the face of the bonds-and the Bank
could have realized this truth within twenty
four hours after it was advised of the sale
always supposing the bidders for Exchange
had learned the fact of the sale sufficiently
in advance to have enabled them to reach
the Bank by that time, and supposing also,
that it would have been humanity possible
within that time, for the Cashier of the
Bank to have drawn and signed bills
in sums to suit purchasers sufficient to
exhaust the amonnt the bonds sold for
In this case there would have been noloss
of interest whatever, and exchange drawn in
anticipation of the payments to be made in
New Orleans, would have sold for the cash
in the notes of the Bank the very day they
were issued. In other words. the circula-
ton of the Bank, instead of being redeemed
by specie brought to its vaults. at expense,
risk, and with delay. would have been re-
deemed at once by bills of exchange in an
ticpation of specie, payable in New Orleans
at future day.
I am approaching the conclusion Of this
subject. l think the shelving is pretty clear
that the commissioners violated no provision
of the charter by the terms of the sale
Certain it is that the Legislature of the State
must have thought so, or when they repu
dated the bonds, they would have made the
formal declaration that they did SO, up
on the ground of the invalidity of the sale,
instead of resting their action as they did on
the ground of the unconstitutionality of the
charter, and the non compliance by the
with the terms of the original
act See the 9th Sec. of the resolution re-
pudiating the bonds) In this resolution the
Legislature even makes mention of the sale,
md states it as a fact, and making no obiec-
ion To it, place the act of repudiation ex-
0ressly unon the grounds above mentioned.
It is a remarkable and very significant
act, that although the Governor of the State
lad seven month beforein his letter to Hope
Z Co., assumed his position of antagonism
o the sale, and in his writings, official as
veil as unofficial, grounded the right to re-
pudiate chiefly upon this ground, yet the
ming popularity, and almost resistless inifu
"a -;
Notwithstanding also, he excitement and
nmult of mind produced by TIC cataclysm
f the currency then raging at its height. /
nd the wreck of fortune that followed it
ignored this veiw of the subject,
nd planted the State upon different plat
orm. No wonder that the Governor should
ave advocated reputation upon the ground
e did. He would have been false to his
had he done otherwise. He had
igned, sealed, and delivered the bonds.-
low could he then have denied their valid
y? But in the track of argument he took, l.
'ho followed him No body-no body of
osition or influence certainly. His peculiar {
lew of the subject was ignored by the Leg
lature, by the party to which he belong
j, by the State, by the sentiment of the
vilized world. The governor stood alone
his glory-supported by Mr. Hagan of
le Vicksburg Sentinel. The issue was made, +
and decided solely on the consti-
ltional question. This was the case when "a
le question was sprung ten years ago, and /
was the case yesterday in the examina- e
on of the question by the States legal rep !
before the Superior Court of {
hancery.
And now after lapse of ten years, an