Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1901-08-03
MORE ABOUT THE BANK BONDS
A History of the Union Bonds, Written by |
EI-Gov. Humpries-Not Sold
According to Law.


We find It in the Greenwood Common
wealth, which aas done good service
In reproducing it,
In Missouri paper In an article on
Mississippi Repvdiation' ] quoted from
Memphis paper a most mournful sigh
from member If the Mississippi legsla'
ture Of 1872" over the shame and reproach
brought upon the name Of American
States"
This paper also exposes scheme Tor
bribing the negro Legislature as 1t Is called
with million daags and buy law author
.zIng the redemption Of the old bonds and
re issue of new ones to the holders"
For the honor Of the legislature with
which the sorrcwing member for 1s42'
was associated, II is to be hoped he Is not
engaged In this nefarlous scheme, and we
must believe that there is too much public
virtue in the negro legislature of Mississippi
to be "Mobiliarized" By any such tempting
subsidy.
The mourning member of 1912 gives only
partial and imperfect history Of the
Mississippi Union Bank bonds and may
therefore mslead others II not himself.
But few Of the citizens Of this New
Mississippi seem to know or to understand
all the questions Involved In Mississippi
Reputation. All seem to accept the state
ment Of the bondhoders and their sympa-
thizers that Mississippi has acted in CT
treme bad faith with no mitigating clrcum-
stances to redeem her from infamy.
Under the pressure Of financial disorders
produced by the expiring commissions Of the
old United States Bank. the legislature Of
Mississippi hoping through the medium Of
State Banks to supply the vacuum thus pro-
duced in the currency, and afford relief to
the commercial and agricultural interests
Of the country passed the original charter
of the Mississippi Union Bank in 1887. As
the charter pledged the faith Of the State
for Sl5,50O000 it was necessary 10 refer
It 10 the people at the ensuing election and
be repassed by the next legislature to give
It validity. 1t was accordingly referred
and as the charter expressly provided that
the stockholders should execute first mort
gage liens on real estate TO secure the
State before the charter could have life
and vitality the people felt secure and
made no special opposition.
The succeeding legislature In 1888 by de-
clded maJorltes In both branches, repassed
the charter. Thus far all right, IL not very
good. No one had been entrapped or de-
celyed and all expected good faith. But
now TO the astonishment Of the unsuspect-
ing and conhding people the entire pro-
gram was changed by Supplemental Bill
substituting the State as a stockholder, II
not the sole stockhoder IN the DanE to the
amount Of five million dollars.
Thus having secured the pledged faith Of
the State under law that secured the peo-
pie by first mortgage liens on real estate,
the scheme was developed to make the
State the banker, thus avoiding first mort
gage liens, q change not contemplated by
the people, but involving them without any
security against the bonds and upon this
State stock alone it was proposed to run
the Union Bank. Could they not as well
run a faro bank under a Supplemental Bill
and still claim that the faith Of the State
vas pledged We had in Mississippi class
Of financial gentlemen learned above
their fellows, that could have manag-
ed the interests of Mississippi in a faro
bank much better than the Rag Barons,"
as they were called, managed the Union
Bank.
This fraud was however, but too appar
ent. The alarm was at once sounded In the
sgsatue uas nd mfgy who & voted I9G the
lle supplemented Dill 10 AAhNA pAN
cast their votes against it. Among that
number was, | think, Hon. A. q. Brown
of Copiah.
An Intellectual effort was then made 10
refer the Supplemental Bill to the people
for their endorsement under the require
ments Of the constitution, to make the
pledge valid.
well remember the earnest and eloquent
4 s,i,tf, % OH In Igfh
branches Of the legislature especially the
lion. Tilgman Tucker, of Lowndes county,
who became the successful gubernatorisl
leader of reputation; and the Hon, James
II. Maury, of Claiborne county who, in the
hblest effort OF his life protested against
making the State banker as violatiye Of
the constitution of the United States which
forbade States emitting bills Of credit"
as as fraudupon the people Of Mississippi;
an inlquty that ought to be rebuked, and
warning the legislature that the people
would resist any tax to pay these bonds.
liquidation then, was not an after thought.
1t is due to Judge Maury and many other
opponents Of the Supplemental BIZ to say
that they afterward earnestly urged the
payment OF the bonds, not that their views
of the fraud and unconstitutlonallty of the
RCI ndu NlhUkcN pNL btNauot INC uNhhH nav
found their way into the markets Of the
world and 1t would damage the credit Of
Mississippi and her citizens more to repudi-
ate than to pay the tax.
The bonds we're Issued under the original
law and commissioners were appointed to
negotiate their sale. The charter required
the bonds 10 be sold at par, but the com
missioner sold them TO Mr. Biddle on a
| ~ for iut
date from sale In this Mr. Biddle was not
only sharp but did he not know that an
agent can not exceed his authority, and did
he not have the constitution of Mississippi
before him, the original charter pledging
the faith the Supplemental Bill changing
the whole plan and striking at the very
essence of the faith pledged-the failure to
refer the perverted scheme TO the people
for endorsement-an the State journals
showing all this? II he did not he was not
as sharp as we old United States Bank men
| thought he was.
Technically his philadelphia lawyer"
might assure him the people OF Mississippi
were firmly trapped and tied down by their
agents but before the court Of conscience
and Jury of plain, unsophstieated farm
ers was he not a party to the deception
practlced ON the honest yeomanry of Miss
lsspp and did he not purchase in his own
wrong?
When the first credit allowed Mr. Blddle
expired and the first coupon was due the
Union Bank was authorized TO sell North
ern exchange on his bank at Philadelphia.
Not one cent went into the State treasury.
With this capital the Union Bank began
to discount notes and bills receivable rang
Ing from five thousand dollars to over one
hundred thousand dollars. Few could OBJ
tain discounts except those whose property
was In the hands OF marshals and sheritfs,
As soon as the property Of these lucky Rag
Barons was cleared from judgments and
executions by these loans-ln very many
Instances the personal property was made
to take "a bee line to the Sabln" and by
the autumn of 1910 1t was known to the
world that the five million dollars was
gone where the woodbine twineth.
The people were now aroused to a reall-
Eatlon Of the magnitude Of the deception
practiced and held the lssuers and purchas-
ers Of the bonds equally tainted with the
fraud and by the fall election of 1S41 a
storm of Indignation swept over the State
prostrating all the leaders and participants
| and filled the legislature with members
| pledged to instant reputation and prompt
snotice to the world not to trade or traffic
In the unclean things"
Suits we're brought In the State courts,