Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1873-09-02
THE MIssIssIpPI BONDS.

The GuDernatorial contest IN Misslh
sippi between the rival Radical factions
has brought up the old Bond RepudiatinG
issue. The history Of this issue is
almost forgotten, but a contemporary
presents il in the following manner:
More than thirty years ago, when
General Jackson, by the removal OF the
deposits from the United Strtes bank,
inflicted upon that institution a fatal
stab. a great impulse and encourage
ment were given 10 the State banks, to
whom was promised all the large BUSH
ness once conducted by the National
bank. In the State of Mississippi this
policy was carried cut in the most reck-
less manner. The State banks were
given large amounts of bonds OF the
State. as a loan TO operate on. These
grants. however, produced their nat.
ural effects in stimulating a wild spirit Of
speculation which resulted in universal
bankruptcy. When this result began to
menace the State and people, the
Democracy, which, in the meantime, had
been conducted by Martin Van Buren,,
Tom Benton, and other Democratic
chiefs, to the extreme of anti.bankism
and pure metallic currency, suddenly
assumed an attitude OF uncompromis-
ing hostility TO all such institutions and
10 every form of paper currency. A
sturdy. obstinate and able man stepped
forward to head the Democrats of Mis-.
sissippi in this battle. This was the
famous Governor McNutt, who having
reached the executive chair Of the State,
carried his hostility to all banks so far as
10 propose and advocate the reputation
of the bonds of the State which had
been loaned to some Of these banks, and
had been sold by them to foreign banks
and capitalists. This was the origin of
Reputation on this continent. There
were two sets Of these bonds. The Union
Bank had FIVE millions, and the Planters
Bank two millions and half They |
had sold them, and had loaned the pro-
ceeds to the planters, who never paid |
them. The banks thereupon broke, and |
the State was called on to pay the bonds. |
Governor McNutt advised their non-pay-
ment. and he succeeded in making the
large majority Of the people agree with
him in the unconstitutionality and in
Justice of imposing any tax for their
payment or Of giving any recognition OF
their legality, and so these bonds have
been stored away in the vaults of
banks or in the pigeon holes of
capitalists ever since, and no one has
had the boldness seriously to propose,
during the last ten or twenty years, to
recognize their validity or provide for
their payments. But since Mississippi
has fallen into the hands Of set Of
iobbers and carpet-baggers, the proposal
to pay them has been seriously mooted.
A ring has been formed which has un.
dertaken to put through the job, and of
this ring B. F. Butler has been consti-
tuted the leader and attorney. The first
step in their game is the election of
Ames, Buffers son.in-law, as the Radi-
cal candidate for Governor of Missis-
sippi. 1t is believed that by the aid of
Buffers cunning and influence, a Legis-
lature can be formed which will enact
law providing for the imposition of
tax to redeem these bonds, principal and
interest. 1t is huge scheme, the sue
cess of which will place Mississippians in
an even worse condition than that OF
their neighbors in Louisiana.