The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1873-06-26

. might multiply reasons almost withoI
. number, but as you ask Tor gdctS, hoC d =
/. ment. forbear.
The Union Bonds were issued in paip1
Bile violation Of the 9th section, It'll artei
of the Constitution of 1882. ana were lheFt
fore ab fRttio absolutely null aud Vold. a
all events. that was the view that the ant
hondr men took of it when this was llv
issue.
give YOU the section and article OF 70
| Constitution alluded TO verbatim:
mo law shall ever be passed 10 ralse
loan of money upon the credit OF the o'at'
| or to pledge the faith of the state TOT Ia
| payment or redemption of any loan or deo
unless such laws be proposed In the oehat
| or House of Representatives ana De agree
to by majority of the members OF eaci
House and entered upon their Journals " III
yeas and nays taken thereon. aud be Feier
red to the next succeeding Legislature an'
published for three mouths previous 10 th'
| next regular election in the three newspd
pers OF this State. and unless majority o
each branch of the Legislature SO eleete'i
after such publication. shall agree TO pas
such law, and in such case the yeas and nay
| shall be taken and entered on the Journals
| of each House: Pr0gided," (as above qIOtet
| in faver of the Planters Bank)
| 1t will be seen that the faith OF the state
could not be pledged for loan OF money
| except in a clearly prescribed manner
| Now for the facts In 1885 the subject OF
chartering a Union Bank" based upon in
| dividual subscriptions for stock, the stock 70
he secured by mortgages on real estate was
| first agitated. The scheme entered largely
| into the canvass OF that year. ana was very
deliberately discussed. The result was the
| election of a Governor and Legislature Ia
vorable to it.
The general outline of the scheme or
plan was this that we should have bank
of fifteen millions of dollars capital, To De
90 fsA1 81. TTnf Iat4 nf
stock was to be all taken 10y citizens OF the
State, and each subscriber was To secure
his individual subscription by mortgage on
uni1cumbered real estate to twice the
amount of his stock subscribed, and when
everything was arranged, the stock taken
and the payments thus secured the State
WIS to guarantee the payment OF the bonds
of the Bank To the amount OF fifteen mil
lions of dollars. When the Legislature met
in January, 1886, there was found to be
majority in the Senate and ia the House in
favor Of this scheme. It's friends embodied
IL in form { a bill known as the Union
Bank charter. But instead OF con1nlnS
the mortgages to real estate, they SO en-
largcd them as to include personal proper
ty. 1 cannot go into details; suffice it TO
say, the bill passed, and, after that, every
thing was done In regard To that precise DIll
which was required by the above 9th sec
ton, 9TH article, of the constitution. And
If the charter, thus granted, had been COM
piled with. the mortgages executed, bonds
Issued, and the State, according to this
agreement, had guaranteed their payment,
We anti-bonders wOGld never have raised
any question as to the States liability.
But what was kOne? No sooner had the
original charter of the Bank passed through
all the forms of the constitution, as re-
CURED by section 8, article Z, as above re-
cited, than it was quietly set aside, and the
Legislature proceeded to pass supplement
Lary charter, making the State "A subscriber |
of the stock for five millions of dollars, and
five millions OF bonds to be issued |
in her own name to pay off that subScrip- |
ton. The case fairly stands thus:
The Bank was to sell bonds for
cash Sl30OO000 |
Stock secured by mortgages 3O0O0,O00 |
Excess value property One-half
over subscription ---..----. lJ0O0,000 !
Total assets in cash and in prop
erty -- 800, 200 900 |
On this the people agreed to be bound as
suarantors to the amount of fifteen mill
ions of dollars. Now, | submit the uues-
ion very meekly: Is there not vast differ
nee between the case thus stated. and the
'ase as it actually stands. of attem pting to
lind the people for debt of five millions
# dollars, contracted without consulting
hem and without even shadow of Sc
urity
1t has always seemed to me that it was
Millions of dollars, secured nv assets OF
ixty millions, and very different thing
D become primarily lii bic for the payment
f five millions of dollars, secured by moth
ny but the supposed honesty and untutor-
q skill of a set of bank directors who acted
nder no responsibility TO bond>men or
ny body else. TO the first proposition the
eople did agree; as to the second, they
'ere never consulted, and to it they never
ave their consent. under the forms of the
institution or in any other mode.
The bonds thus Issued were bought by
licholas Biddle, then President OF the
'ank of the United States, for aud in the
anne of the Bank.
The question of the uuconstitutionality
t the bonds was brought to his attention
v the Bank attorney. But as it was to be
Bank of sixty millions of asses, capital
nd security, Mr.. Biddle very naturally i
that as he was to be the first,
nd. therefore, preferred creditor. he could
ford, with no great risk, to venture five
billions; SO he took the bonds.
What did he with the bonds? He hypoth- I
Gated them with European bankers-IIope
Co. aud others-as security tor extension ;
old loans of money to the United States 1
ank. Very few of them, IL any, ever passed [
ito the hands OF private purchasers so that 7
le wall OF the widow and the orphan who :
ave been swindled on account of these
Dnds, passes into exceeding thin air. The
nth is, that the collaterals taken hy Hope {
nited States Bank. proved to be worthless.
nd the wall comes from too cOnfiding
editors OF that bankrupt and most corrupt 1
d concern. No honest or contiding cred [
or in this country or in Europe, ever LOST I
dollar, according to my Judgment, in deal
~ in what is commonly called Union
ank bonds" |
The bonds, such as they were. were nego- d
ated, and what went with the money? v
cry little of It if any, ever found its way
ito the State Treasury. Then what went >
18th it! 1t was wasted in wild schemes q
MI rlotouS living. And this being done,
le people were asked to foot the bill, "
hich' In my Judgment, they very properly .
fused to do.
It may he as well for me to state that the II
legislature opened the courts tor full and I
ee investigation into all the questions, | +;
gal and constitutional. involved in these
)ndS. But the oond-hOlders shrunk from q
e issue until such time as by the accidents 4
life and political fortune. there WAS found {
the Bench of the State, Judges known to -
in favor of paying the bonds. They u
en brought their suits; OF course they got
dpments and had them affirmed, But N
hat sort Of judgments were they? They :
ere political, not judicial, judgments. 1
ay be excused if refuse, by my ballot. to
notion the decision of Judges who an c.
1unced from the Bench a pie afiirma- a
on of opinions which they had previously 8,
detained from the hustings.
Do not understand me as calling i'm ques- n
on the purity or integrity of our Judges; g
only mean TO say that in the political h
ena they imbibed certain prejudices (opin- :;
ms, If you please,) and that afterwards y
ese prejudices, or opinions, cropped out n
ON the Bench. "
/ have thus, my dear sir, as briefly as pos 2
ole answered your questions. / am con-
ions Of having drawn out this response to
hat may seem an unreasonable length,
Id vet, in looking over what is written, ]
not see how. in Justice TO the subject, l
'uld have said less. \
1 have omitted many minor facts and =
used over arguments and illustrations, T
ithout number, in what 1 hope has not G