The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1873-09-18
EXECUTIVE DEPARTMENT.
CITY OF JACKSON, july ID. 1871.

OAI1 Ot JACk5ON, y uly 10, 1911. y
Gentlemen-I have received your letter
dated Amsterdam, 22d May, 1871, post
marked Washington CITY, June 2lst, 1871,
and bearing the official frank of the Hon.
Daniel Webster, Secretary of State of the
United States. | hsve duly considered the
contents thereof. Those bonds were not
sold in accordance with the Constitution
and laws of this State. They were deliv-
cred by me as an eScroJC, to be sold at not
less than their par value and for cash, as
statute of this State required. The charter
of the Mississippi Union Bank prescribes
not only the substance. but the form of the
bonds and provides that they shall be in
the sum of two thousand dollars, . which
sum the said State of Mississippi promises
to pay in current money of the United
States, to the order of the Bank, with inter
est at the rate of five per cent. per annum.
payable semi-annually, at the place named
in the endorsement OF the bonds. The act
further provides that "said bonds shall not
be sold under their par value" The bonds
having been delivered to the managers of
the Bank to be sold on certain conditions,
the State cannot be bound tor their redemp-
ton unless the terms prescribed were COM
piled with in the sale. The Constitution OF
this State expressly provides that mo law
shall ever be passed to raise loan OF mon
ey upon the credit of the State or to pledge
the faith of the State for the payment or
redemption of any loan or debt, unless such
laws be proposed in the Senate or House OF
Representatives, and be agreed To by ma
jOrity of the members of each House and
entered on their journals, with the yeas and
nays taken thereon, and be referred to the
next succeeding Legislature, and published
for three months previous to the next regu-
lar election, in three newspapers of this
State; and unless ma ority of each branch
OF the Legislature so elected, after such
publication, shall agree to and pass such
law; and in such case the yeas and nays
shall be taken and entered on the Journals
of each House; Provided. That nothing in
this section shall be so construed as to pre-
vent the Legislature from negotiating
further loan of one and a half millions of
dollars, and vesting the same in stock re-
served to the State by the charter of the
Planters Bank of the State of Mississippi"
Five millions of State bonds, dated the
5th, 9th, 9Th, Sth and 9th of June, 1888, were
sold by the commissioners appointed by
the Mississippi Union Bank to Nicholas
Biddle ESQ., on the 18th day of August
1888, for five millions of dollars, lawful
money of the United States, payable in five
equal inst ailments of one million dollars
each, on the first day of November, one
thousand eight hundred and thirty EIGHT,
and on the first days of January. March,
May and July, in the year one thousand
eight hundred and thirty-nine. and made
payable at the agency of the Bank of the
United States in London, in sterling money
Of Great Britain at the rate of four shillings
and sixpence to the dollar. with interest
payable semi-annually at the same place
and rate.s
No authority was ever given by any act
of the Legislature of this State to change
the currency in which said bonds were
made payable. BY selling the bonds on a
credit, and changing them from dollars cur
rent money of the United States to pounds
sterling OF Great Britain, the following
sums were lost:
Interest on five millions State
Bonds from 9TH June 1888, to
November, 1888. 100000 90
Interest on four mil.
lions two months 33SS8 80
Interest on three mill