The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1873-09-18
47s,750 90
G9,G25 90
35a,O6S 90
$l,O84,781 80

GREAT bFlLdll at IOuF SI1llll1RS
and sixpence to the dollar 353O6S w
$l,084,781 80
From the above statement it will be per-
ceived that one hundred and eighty-three
and tEirty-eight dollars and tnlr-
TT cents were lost by selling the five mil
lions dollars of bonds on q credit, and pay
ing interest thereon from their respective
dates, and the further sum Of nine hundred
and one thousand three hundred and forty
three dollars was lost by changing the
bonds from dollars current money of the
United States TO pounds sterling of Great
Britain These two items amount to the
enormous sum of one million eighty-fOur
thou sand seven hundred and elghty-one
dollars and thirty cents. Surely such sale
cannot be binding on the State OF Missls-
sippi The faith of this State was pledged
for the payment of those bonds only upon
the condition that they were sold at not less
than their par value. The State expected
the full amount of those bonds to be paid
into the vaults of the Mississippi Union
Bank. If the fuu amount had been re-
ceived and the currency In which they
were made payable not have been changed,
the Bank would have been better enabled TO
indemnify the State.
1t appears that the bonds were endorsed
in blank by the officers of the Bank and de-
liyered to the commissioners charged with
their sale. Neither their power of attor-
ney nor letter of instruction authorized
those gentlemen to fill up said endorsement
by making the bonds and coupons payable
i'm pounds sterling of Great Britain at the
rate of four shillIngs ard slxpence 10 the
dollar If such a change had been made on
the face OF the bonds after their execution
and delivery to the Bank, the parties max
ing the alteration would have been guilty
of forgery, and could have been immured
in the penitentiary for the offense. 1t will
n 70 oil nfra hot
the endorsement could only bind the Mis-
sissiDpi Union Bank. That institution has
undertaken to pay both the principal and
interest of the bonds. If the Bank is COM
PEELED to pay the one million eighty four
thousand seven hundred and eighty-four
dollars and thirty cents for the loss sustain
ed BY the credit sale of the bonds aud the
change in tie currency in which they were
made payable, her means will be reduced
that amount and the risk of the State thus
greatly increased. The State was willing
to intrust her credit to the Bank on the
conditions prescribed in the charter. The
faith of this Government has never been
pledged for the Illegal and fraudulent sale
of those bonds.
This is a constitutional government, and
all its officers take an oath to support the
Constitution of the State, and faithfully to
discharge the duties of their respective
offices. Her Chief Magistrate is required to
take care that the laws are faithfully exc
cuted. He would be recreant to his trust,
and violate his official oath were he to suffer
the laws of the land to be trampled upon
and the Constitution disregarded.
The contract for the sale of the State
Bonds, shows that the statutes of the State
in relation to the bonds were made a part of
the contract. The purchaser was well aware
of the conditions on which they were issued,
and knew that the purchase was neither
sanctioned by the Constitution aud Laws of
this State nor of Pennsylvania. The con-
tract was guaranteed by the Bank of the
United States. The whole of the purchase
money was paid by that institution. The
name of Mr.. Biddle was merely used In the
contract as Il device, to get round that
clause in the charter of the Bank OF the
United States which prohibits her from
dealing in State stocks. The currency in
which the bonds were payable was changed
from dollars to pounds sterling, to give a
false colOring to the whole transaction. and
make it appear that the bonds were sold at
par value. The principle is universal that
fraud vitiates all contracts. The CONNER
cial law of this state relative to negotiable
paper is different from that of most other
countries. The transfer of bonds and notes
does not prevent the drawer from setting
up any defense against an innocent pur-
chaser which could be made available
against the original payee.
The State, therefore, denies all Obliga-
tiOns to pay the bonds held in trust by you,
for the following reasons:
lst. The bonds were sold on a credit.
I'd. The currency in which the bonds were
made payable was changed from current
money of the United States to pounds ster-
ling OF Great Britain, at the rate of four
shiilings and sixpence to the dollar.
80. The contract of sale was fraudulent.
Atm. The Bank of the United States was
not authorized to make the purchase.
9Th. The bonds were sold at less than their
par value, in violation of the charter of the
bank.
The money paid for those bonds did not
come into the State Treasury. The officers
disbursement The bonds were disposed of
III August, 2S3S, by collision and fraud, in
violation of the Constitution and Laws OF
this State. The Mississippi Union Bank,
and the Bank of the United States, were
parties to this unlawful transaction. You
have the endorsement of both these institu-
tions, and to them you must look for pay
ment. This State never will pay the five
millions of State bonds issued in June, 1888,
or any portion of the interest due, or to be-
come due thereon
When | aseertained in January, 1889. the
terms Oh which the bonds had been sold, |
communicated the same to the Legislature,
and denounced the sale az illegal. AT that
time only tM o millions of dollars had been
paid on the bonds by the Bank of the l nited
States. BY proclamation l subsequently,
Issued. the sale OF the second five millions
of dollars of State bonds, delivered to the
Mississippi Union Bank was prevented. l
absolutely refused to execute the last five
and a half millions OF dollars of State bonds
demanded by that instirution. These de-
cisive measures prevented the illegal dispo-
sal of ten and half millions of dollars of
State bonds, ana will convince you that the
Government of this State never has counte-
nanced. and cannot be made responsible for,
the fraudulent acts of the Mississippi L Mon
Bank.
| have forwarded to your address the
Journals OF the Legislature of this State for
the years 1910 and 1871. 1t will afford me
much pleasure to forward you such other
documents as YOU may desire. l am anxious
that the bond-hnlders should be possessed of
all the facts in r. lation to the issuance and
disposal of the bonds sold by them. Your
great experience in mmercial affairs no
doubt has made You familiar with the prin-
ciple that parties contract with reference to
the law, and that in a constitutional and
free government every act of public func-
tionary is merely an exercise of delegated
power entrusted to him by the people for a
specific purpose, and that his acts are the
acts of the people, only while within the
powers conferred on him.
| am. gentlemen,
Very respectfully.
Hoar obedient servant,
A.G. MCNUTT.
MessrS Hope & Co., Amsterdam, Holland.
Changing Sides