The clarion. [volume] (Jackson, Miss.) 1883-1888, 1883-12-19
DoCUMEHrs RuA41na

DOCUMENTS RKIA4TNa
To THE--
d Rspudiatsd Union and PlAntsri
Q Bank Bonds.
: To the 9svsr.os q the State sf Mississippi
i The undersigned a trustees for ID
!. holders Of the Debentures Of the Unite,
o States At Philadelphia on deposit Q
y American State Stocks, and amongs
5 Others Of a considerable amount Of bond
r Of the State of Mississippi bearing IS
( per cent. interest, issued through III
Union Bank of Mississippi and mad
: payable at the agency of the Unites
i States Bank Of Pennsylvania in London
/ the principal in 1880 and 1858, and th,
) dividends semi-annually in May ant
= November, having been refused paymen
{ of the interest due the first of this montE
| on said bonds, are compelled to address
! themselves to the Government Of tht
State of Mississippi; and from their con
fuenee in the faith of that Government
, they feel convinced that the simpls
| mentioning the fact of the non-payment
will be sufficient stimulus for the Gov.
/ ernment of the State ssof Mississippi btC
: take immediate measures for the pay
ment of the interest now due and which
will further successfully become due on
these bonds, and to prevent irregulaTi-
ties or demur so preiudiciai TO the inter.
est of American credit in general and to
that of the State of Mississippi in partic-
ular. H0PE & Co.
/ Amsterdam, 22d May, 1871.
Executive DEPARTMENT, !
Cry OF JACKSON, July Is, 1871. !
Gentlemea-I have received your let
! ter dated Amsterdam, I'D May, 1841
post marked Washington City, June 2lst,
/ 1871, and bearing the official frank of
| the Hon Daniel Webster, Secretary of
State of the United States. have duly
considered the conteuts thereof. Those
| bonds were not sold in accordance with
the Constitution aud laws of this State
They were delivered by me as an escro,e.
to be sold at not less than their par
value and for cash, as the statute of this
State required The charter of the Mis-
sissippi Union Bank prescribes not only
the substance, but the form of the bonds
and provides that they shall be in the
sum of two thousand dollars, (which
sum the said State of Mississippi prom
ises to pay in current money OF the
United States, TO the order of the Bank,
with interest at the rate of five per cent.
per annum, payable semi-annualiy, at
the place named in the endorsement of
the bends The act further provides
that ''said bonds shall not be sold under
their par value" The bonds having
been delivered to the managers of the
Bank to be sold on certain conditions,
the State cannot be bound for their re-
demptiou unless the terms prescribed
were complied with in the sale. The
Constitution of this State expressly pro.
vides that "no law shall ever be passed
to raise loan of money upon the credit
of the State or to pledge the faith of the |
State for the payment or redemption of
any loan or debt, unless such laws be |
proposed in the Senate or House of Rep |
resentatives, and be agreed to by ma |
jority of the members of each House |
and entered on their journals, with the |
yeas and nays taken thereon, and be re- |
ferred to the next succeeding Legisla- /
ture, and published for three months
previous to the next regular election, in
three newspapers of this State; and un
less majority of each branch OF the
Legislature 20 elected, after such publ
cation, shall agree to and pass such law;
and in such ease the yeas and nays shall
be taken and entered on the journals OF
each House; Provided, That nothing in
this section shall be so construed as to
prevent the Legislature from negotiating
g. l., e o,,I ha1f v,asilsa,1a !
of dollars, and vesting the same in stock
reserved to the State by the charter Of
the Planters Bank of the State of Mis-
sissippi."
Five millions of State bonds, dated
,he 9TH, 9th, 9TH, 8th and 9th of June,
1888, were sold by the commissioners
appointed by the Mississippi Union
Bank to Nicholas Biddle, Esq, on the
18th day of August, 1888, for FIVE mil
lions of dollars, lawful money of the
United States, payable in five equal
of one million dollars each,
on the first day of November, one thous-
and eight hundred and thirty eight, and
on the first days of January, March.
Nav and July, in the year one thousand
eight hundred and thirty-nine, and
made PAYABLE at the agency of the
Bank Of the United States in London,
in sterling money of Great Britain at
the rate Of four shillings and sixpence
to the dollar, with interest payable semi
annually at the same place and rate"
No authority was ever given by any
act of the Legislature of the State to
change the currency in which said bonds
we're made payable. By selling the
bonds on a credit, and changing them
from dollars current money Of the Uni
ted States to pounds sterling of Great
Britain, the following sums were lost: