, 1859-07-18

4tles.|a|!t&'Gtitut1e, |! 4 ]!
v>sNoNDAr, JULT-lS 1859.
~ ~ ~1sos6s. ~
VIC do no. pretend to be fully informed in
xcEA'd to tho history Il the AcAllister &
6toht,ins bonds. But our understanding d
the ,ust&er ubout rlich the Sham Democratic |
papers arc just now bowling, is this: T.: |
When John D. WMtesides, one Of the Fund
Commissioners OF Illinois, WAS in want Of !
100000 with which tn discharge aecruing OBJ
legations of the State, he applied to NcA1llstcr
i stebbins Of New York for q loan, ofering,o
pledge Ssoo,ooo q bonds - security therefor.
The firm accepted bis proposition, and getting
possession Of Nil OF n part Of the bonds In ad
vance Of tho completion Of the transaction,
hypothecatcda q tcw Of them, say 10000, for
funds that they lacked in making up the
amount. The Stale failed to pay NcAllister&
Hhcbbins what Nr, " arhitcsidcs had borrowed;
and McA1listcr s@bblns failed to redeem the
bonds whieif they Ind iypothecated The
hoaderz If these bonds, to the amount above
s'ateds put them on the market and sold them
at public auction to the highest bidder. 4
pa.t waFe bought in by the Mechanics Bank,
part By the Bowen Insurance Company, and
tue ctna,nder-some seven or eight bonds
hy other parties, at prices, 50 they say, ranging
from Is to IS cents ou the dollar. The State
1epudiated Whitcsides' action and disowned
the bonds which he hid pledged, though it hnd
received and spent the money that WIS OBJ
tained for them For eight years nothing
further 'sas done in the pEcnises- In l847,
afnndiHg act was passed. 1rom tile benefits oi
which those bonds were expressly excluded.
In 1919 another act was passcd for the GET
tleueut Of the whole matter. The law was
= taroy sc&now}edscn of tue claimt;m Nc
A1llstd. and Stebbina. and was the very least
that tic Stale could then hare doae: It rer-
nitted the holders Of the bonds to fund them
At 20 65.1o0 cents on the do1ar-this being
the amount, prlneipsl4and interest, that the
6sste had received 3o them. Under this law
neaf4y aA INC bonos came IN. Ihe holders o.
nosfof them chose to accept what 'he Legls'
lahire was willing to gre rather than hold
claim iVr larger amount the validity OF Which
was disputed But the purchasers Of tut
bonds which McAllistcr stebbins had hy'
pothecatcd rofuscd to acccde to the terms
offered They said We nrc lnnoc ent holders
''of this paper. We bought 1t us part Oh Inc
"pubhc debt Of the State oi ILLINOIS, openls
at pubac auet'oa- We nel1"er knew nor
saspec9eo that 1t d'd not represent a just
sand hoaest debt We paid for it much
"morc than you offer us, and We viii nos
"snbmit to tue shave. We cannot cue you'
shut VIC will whit Jour prosperity md youn
@raturuing seuse Of justice" That was the
1angunge taat they ltavo invariably used. In
1857, another funding law WAS passed, which
tho McAslister & Stebbins bonds as well as
various ether forms Of the States indebted
ness; and he as tho Executive, being made
the Judge Of tho validity Of tue obligations ont
standing, decided upon the case that was pre-
scented 10 him that these particular bonds
hypothecated, and sold as we have described
were jus: and honorable, and ought to be
plid- We do not think the decision is wise
legal opinion We do not think the reople Of
the State, the Republican party, or the next
Legislature will take the same view Of the
matter that Gov Bisscll did take. But that
volve lis personal integrity, is to suppose that
they do not know tic mnn. His reputation is
too we'll established to suffer fur M error ol
judgment, if eucll, in the opinion Of Lis nc
casers' be has committed Convinced Of the
moral and legal obligation Of the State to pay
fLese particular bonds, be permitted the Trana-
fer Agent ut He~ York to fund them as other
bonds were funded. This pessnissi On was c1.
crcised, and an tls bonds Of the McAllister
and stebbins issae in the hands Of innoceD.
Purchasers-S12o,o 900 in all-were surrender
cd, mud new bonds issued. This coming
to the oars Of the Auditor and Treasurer made
NJ once serous disagreement in the Exec',-
I've eeuncaa' 10 slse his Administration the
ahity WHICH II shonlo marc, the Governor re-
called his PERMISSION; but too 1ate. The work
was done. The new bonds Ind been given
up, aud tho old were returned to the Auditors
ofaee.