The clarion. [volume] (Jackson, Miss.) 1883-1888, 1883-12-19


four dollars and thirty cents for the los
sustained By the credit sale Of the bond
aad the change in the currency in whicl
they we're made payable, her means vii
be reduced that amount and the risk o
the State thus greatly increased. Th,
State vas willing to intrust her eredi
: 70 the Bank on the conditions prescribed
I in the charter. The faith Of this Gov
ernment has never been pledged for tins
Illegal and fraudulent sale OF thoss
} bonds.
q This is . constitutional government
and all its officers take an oath to sup
port the Constitution of the State, and
faithfully to discharge the duties Of
their respective Offices. Her Chief Mag
lstrate Is required to take care that the
laws are faithfully executed. He would
be recreant to his trust, and violate his
official oath were he to suffer the laws of
the iand to be trampled upon and the
Constitution disregarded.
The contraction the sale of the State
Bonds, shows that ithe 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 and Laws of this State
nor of Pennsylvania. The contract 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 device, to gel
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
q false coloring to the whole transaction.
| and make It appear that the bonds were
sold at par value. The principle is uni.
versal that fraud vatiates all contracts
The commercial law of this State rela-
tive to negotiable paper is different from
that Of most other countries. The trans
fer OF bonds and notes does not prevent
he drawer from setting up any defense
against a innocent purchaser 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
we're made payable was changed from
current money of the United States to
pounds sterling of Great Britain, at the
rate OF four shillings and sixpence to
The dollar.
I'd. The contract of sale was fraudu-
lent.
9th. The bonds were sold at less than
their par value, in violation of the char
ter of the bank.
The money paid for those bonds did
not come into the State Treasury. The
officers of this Government had no con-
troll over its disbursement. The bonds !
were disposed of in August, 1898, by
coliusion and fraud, in violation of the I
Constitution and Laws of this State. /
The Mississippi Union Bank, and the
Bank of the United States, were parties
to the unlawful transaction. You have
the endorsement of both these institu-
tons, and to them you must look for
payment This State never will pay the
five millions of State bonds issued in
June, 1888, or any portion of the inter,
est due, or to become due thereon.
When | ascertained in January, 1889,
the terms on which the bonds had been
sold, | communicated the same to the
Legislature, and denounced the sale as
illegal. At that time only two millions
Of dollars had been paid on the bonds
by the Bank of the United States. By
3 proclamation | subsequently issued.
the sale of the second five millions of
dollars of State bonds, delivered to the
Mississippi Union Bank was preeented.
absolutely refused to execute the last
live and half millions of dollars OF
State bonds demanded by that institu-
tlon. these decisive measures prevent
ed the illegal disposition of ten and
half millions of dollars of State bonds,
and will convince you that the Govern
nent of this State never has counte-
1anced, and cannot be made responsi
Die for, the fraudulent acts of the Mis-
'issippi Union Bank.
have forwarded to your address the
Journals of the Legislature of this State
Tor the years 1910 and 1871. 1t will af-
Iord me much pleasure to forward YOU
,uch other documents as you may de- !
sire. lam anxious that the bond.holders
should be possessed of all the facts in .
relation to the issuance and disposal of
,he bonds sold by them. Your great
experience in commercial affairs no /
loubt has made you familiar with the /
principle that parties contract with
reference to the law, and that in a con-
'titutional and free government every
act of a public functionary is merely an
exercise of delegated power entrusted to
him by the people for a specific purpose
md that his acts are the acts of the peo-
pie, only while within the powers con.
ierred on him.
| am, gentleman,
Very respectfully, +.
Your obedient servant,
A. G. McNUTT.
Messrs. Hope & Co., Amsterdam, Hol-
land.