, 1863-08-01
CHICAGO, SATURDAY, :
otherwise, bT OF before the date at which tho
whole debt becomes due.

otherwise, bT OF before the date at which th
Tlsole debt becomes 11e.
JEFFERSON DAVIS,
To this letter the London Tins, in its none
article Of the 18th July, replied as f3llows:
ihs e. case or Mississippi stands thus: In 1s3
I the State Issued bonds for five millions o
dollars, to establish the Union Bank. Thes.
bonds were dated June, 1885, bearing five pe
cent interest from date, and 1t was afipulateC
with the bank that they should not be sold
under their Par value. On the 18th Of August
following the bank sold all these bonds to the
United States Bank for five millions OF dol
lars, payable In five equal 1nstalments. IN No
] Fember, January, March, May, aud July, but
without interest. The money was pnnctuaAy
paid to the Mississippi Bank, aud the Le-
M sasS Se1t Of MssssPp on tt the ,ss terms
solved "that the sa1e Of the bonas was
highly advantageous to the State, and In &C.
cordance with the injunctions Of the char-
ter, rejecting the highest credit on the
commissioners, and bringing timely aid to an
embarrassed community" In little mora
Eank became totally insolyent, having lost the
entire fire millions invested In It by the State
Immediately on this having transpfred, the
Governor OF the State sent a message to the
Legislature, recommending them to fepudiate
{th1s was the first time the word was used. J
their obligations, being founded on the plea
that as the bonds were issued with interest
payable from tie date, and they Ind been sold
to the United States Bank for their noulinal
amount only, the stipulation that they should
not be disposed Of below their par value h.
been departed from. He further urged tl!e
to Air. Biddle. the President Of the United
states Bank, the sale was actually to the bauk
Itself, which, by Its charter, could not legally
purchase them. Hence, although Mississippi
had received the money for the bouds, 1t was
thus proposed TO refuse to repay 1t on the
GROUND tl1at the purchaser had no right to pny
mem The Legislature, however; was not
quite prepared for this, and accordingly, In
responding to the Governors message. they
resolved: lat. That the Stats Of Mississippi
IL bound to the holders Of .he bonds Of The
State sold on account Of the bank for tue
amount Of principal and Il tere5t. Cd. That
the State OF Mississippi will pay her bonds,
and preserve her faith invio1ate. I'd. That the
1nslnnation that the st4te Of Mississippi would
fsp9d'ate her bonds and Violate her
pnghtsd faith Is calumny upon tue
af>er This the pecuniary condition of the
State became rapidly worse, and the disposi.
tion to pay biminished in proportion Ae-
cortlipg1y o joint committee Of the Legisia-
lature, appointed In 1912, reported that the
State vas IN. not bound to pay the bonds, I'D.
also another, namely, that, the bonds had not
been sanctioned In The manner required by
the constitution, since, atshalgh. the provf-
sion that DO loan shonld be raised uuless
sanctioned BY Law passed through two snc-
cessiye legislatures. had been complied with,
aud the bonds had been legally authorized,
the act also prescribed certaiu Conditions re-. |
gardi1Ig the Bank Of Misefsstppi, which con- !
ditton- had been altered by Subsequent act, |
tiiat had only passed through one ltgisiatase. |
ln addition to the five millions thus repuli- t
atcd, Mississippi owes two millions which she
recognizes. It has always, howeser, been
difference without distinction, since she p1ys
1o dividends On either. From the period Of I
reputation up to the present moment all re-
presentations Of the bondholders have been
treated with disregard About year and
zr1s na eas hoTsrs r. Resns s1s Of ofmtfa6 the st
the moral liability Of the State, and proposed /
that the people should discharge 1t By vo1un-
tary contribu tIoDs.
Mr. Walker concludes as follows:
The whole ease was again fully decided IN 7.
1858. hy the yeEy tribunal to which Jeffasson
Davis, In 1868. invited the bondhoIder3, Ard |
did he OF the State then yield or pay the obli- |
gationsY Not at all, but they adhered to the
Tepudiation Of these bonds, disregatded and
detcd the decision of the court, aud have |
Devtr Faid one dollar Of principal or Interest,
a!M never viii, as 1oug us slavery exists In
Mississippi.
And now, after the almost una1imous pas-
.age Of the supplemental act In 1885, the sane
Jon Of the Legislature in 1888 and 1871, the
lrcision Of the Circuit Court and Chancellor,
,nd Of tbs high Court Of Errors and Appeals,
how strange is the assertion OF Mr.. Slideli
tbat the Union Bank bonds were issued In
direct violation Of IN express constitutional
pfoyision.' 1t Is. well aettled principle Of
amer !. law; IT, as vel as By the Supreme
!horixe the court to decide that . Law Is
nncon etitutiona1, the repugnance to the Con-
.1itut1on 1nnst BIZ "plain and palpahle." Cd
That tlle Interpretation given By the highest
eo'lrt Ut State to law or constitution iii |
By MI. Sjidei1's own loster .(having ney.r re-
s'desa In the 5tate,} he knew nothing Of the
suh}eeF, OF he never would have spoken Of
sfierEon Davia as "gove1nor," or ai.nded to
= bis standardization, when he newer hell
tt1at Office. But it is OF Some moment, ut
least to the unfortunate bondtoldcEs, inst the
minister Of Jefferson Davis at Pals, AYERS
now TINT these bonds are unconstitutional
But. Mr.. Slidell says, There Is O wide dit.
ference between these bonds and those of the |
nei;her e1cuse nor pallia.ion can be oErel.
Now IN . subsequent letter + will proYee,n-
:1u.iyefy frun1 authentic documents that the |
Stnte OF mississippi has most efeetually re-
undated those bonds also, and that JeHerson
Davis has Sustained Tint reputation.
In the case, aleo, Of another slaye holding
3tate, will prove, from the public d 1cu.
ments, that Jefferson Davis volunteered to
sustain her in the reputation Of her State |
bonds. Ia = case more atEocioua. II possible,
than that of Mississippi. As Jefferson Davis
IS now Ut the head OF slave holding conspi-
If my country, mud is now, also, engaged il
selling wor. bless Confederate bonds Fl this
market, I hare deemed 1t nv duty to mako |
'hs puoneasion. r. J. WALRRR.