Southern standard. (McMinnville, Tenn.) 1879-current, 1880-11-06
"RepudlaiiOn."
International Review for November

ence by Gov. McNutt, of that State, in
1871, in message suggesting the plan
of "repudiating the sale of certain Of
the State bonds on account of fraud
and illegality."
1t may be interesting at this time
briefly to refer to the facts which in
duced Mississippi to take this action
upon the subject of its debt. In 1888
the State chartered the Mississippi
Union Bank, and, in order to provide
capital for the institution, it was enacted
ID Jaescsmter tl:as we directors stoul&
borrow $15, 100000, and that the Gov
ernor might issue seyenty-fve hundred
bonds for " 600 each, bearing five per
cent. interest, redeemable in twelve,
eighteen and twenty years, and deliver
them to the officers Of that institution
from time to time in proportion to the
amounts subscribed for bank stock, the
price of which was to be secured to the
satisfaction of the directors. The bonds
were made negotiable for the expenses
of the president and cashier of the
bank the Governor, by an additional
act, was authorized to subscribe in be-
half of the State for So, 900, 900 of the
stock of the bank, and he did so. In
June, 1888, he delivered to the bank
two thousand five hundred bonds,
amounting to 100000, payable in
twelve and twenty years, on the fifth
day Of February, 1888, and bearing
five per cent. interest from their date.
The charter required the bank to APP
point three commissioners for the sale
Of the bonds, and imposed this restric-
ton on their authority--that the bonds
should not be sold under their par value
On the 18th of August, 1888, the com
miss oners sold all the bonds to Mr..
Biddle for the sum Of $4,000, 900, pay
able in five equal instalIments Of 81,
00O,O 900 each, on the first day of Feb
ruary, 1888, and the first days of Jan
uary, March, May and July, 1889,
without interest. This money was
punctually paid to the bank, which
went into operation, and before Jan
uary, 1871, all its capital. * x
x X In responsible the message of
the Governor in January, 1871, the
Legislature of the State of Mississippi
passed a resolution to the effect that
the State was bound to the holders of
the bonds of the State sold on account
of the bank, for the amount of the
principal and interest; and, further,
more, that the State of Mississippi
would pay her bonds and preserve her
faith inviolate. The Legislature, at
this time, repudiuted with great vigor
the insinuation that the State would
repudiate her bonds and violate her
plighted faith (; and, moreover, declar-
ed that any accusation Of this kind was
a "culumny upon the justice, honor
and dignity of the State" Having
thus acknowledged the validity of the
debt, and pledged her word for its re-
demption, all further discussion as to
its legality ended. These bonds were
never formally repudiated, but fell into
default; and, although successive Gov
ernors urged payment, no provision
was made, and in 1852 the appropria-
ton therefor was defeated by 4, 400 ma.
jority on popular vote. There
proposition is now before the
Legislature Of Mississippi for com
promise with the holders of the old
repudinted bonds of that State. This
proposition from the English bond
holders received after adjournment 0.
the Legislature, and consequently {
year old, is for 'wayer of all consider
alton of interest since 1910, ard a refs
sue of the $1,000, 900 to begin at B pei
cent, and increase annually at the rat,
Of one-half per cent, giving the StatC
the option of receiving the bond fo
any unoccupied State lands, at tire,
hundred and twenty acres FOR thou
sand. bond, that immigration o
workers may be induced. The propo
sition, says the published report, wa
received politely, and action was takel
looking to a Joint committee for lis con
sideration but if correctly reported
its terms are obviously impraoticable
being penal in severity; hence it vii
not likely be accepted.
Rnru Rpforp His Time.