The commonwealth. (Greenwood, Miss.) 1896-1923, 1907-06-14
THE STIGMA OF REPUTATION"

quoted from a Memphis paper most mournfnI sigh from "a member Of The
Mississippi Legislature Of 1872 over the shame and "repr0acb brought
upon the name Of American States"
This paper also exposes a scheme for brbng the negro legislature
as ls called, with a million dollars and "buv a Law authorizing the re-
dcmpion Of the old bonds and a reissue Of new ones 10 the holders" For
the honor Of the Legislature with which the sorrowing member for 1872
was associated, it il to be hoped he is not engaged in this nefarious scheme.
and we MIST believe tina. there is too much public virtue in the negro leg,
lslatare Of Mississippi to be "Mobaized" by any such tempting subsidy.
history oil the Mississippi Union Bank Bonds and may therefore misead
But few Of the citizens OF this New Mississippi seem to know or
understand all the questions involved in Mississippi Reputation. All
seem to accept the statement of the bond-holders and their sympahizers
that Mississippi has acted in extreme bad faith with no mitigating cir
IcumsLances 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
produced in the currency, and afford relief to the commercial and agrcul.
unal interest OF ue country passed the Original charter Of the Mississip
pl Union Bank IN 1887. As the charter pledged the faith of the state for
?l''VoOo 1t was necessary under the constitution of 1884 to refer it to
the people u inc ensuing election and be repassed by the next legislature
to give 1t validity 1t was accordingly referred and as the charter ex-
pressy provided that the stock holders should execute first mortage liens
oh ear estate 70 secure IN state before the charter could have life and vi
taIty the people felt secure and made no special opposition. The sue
ceeaing legislature IN 1888 by decided majories in both branches repass.
el inc cnafteFi mus Tar al right, II not very good. No one had been
%entrpped or deceived and all expected good faith. But now to the as
~ "% otaeaoS "a h VIZ tgSnSPeeung ana nG cohna,ns people the entire program
was changed by A Supplemental! BMl substituting the state as a stock hoL
der n the bank to the amount of five million dollars. Thus having Sc
cured The pledged faith Of the state under a law that secured the people
by nss m}rlgase lens, a charge not contemplated by the people but IN
yoyng 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
wen run a Iaro bank under a Supplemental BIN and still claim that the
faith Of the state was pledged? We had in J Mississippi a class Of "fnan-
cial gentleman" learned above their fellows" that could have managed the
interests OF M''sls,Ippl IN a faro bank much better than the Rag Barons, "
as they were called, managed the Union Bank. This fraud was however
lDAt whNpdAcib III dliin was once sounded IN the legislature and
many VINO wing nnb Tor te original charter protested and denounced the Sup
elemental Bill as a fraud and cast their votes against it, Among that
number was, think, Hon. A. G. Brown Of Copiah. Au Intellectual effort
was 'en made o refer the Supplemental Bli to the people for their en-
dorsemont under the requirments Of the constitution, to make the pledged
faith valid well remember the earnest and eloquent denunciatons of
the scheme in both branches Of the legislature especially that Hon. Tolgman
Fucker Of lownes County who became the successful gubernatorial leader
the ablest effort Of his life protested against making the state a banker as
vioIatre of the constitution of the United State which forbade states
emitting bills Of credit and as a fraud upon the people of Mississippi
an iniquty that ought to be rebuked, and warning the legislature that the
people would resist any tax to pay those bonds. Reputation then was
nents of the Supplemental Bill to say that they afterwards earnestly urged
the payment of the bonds, not that their views of the fraud and unconsti-
way INTO the makets OF the world and it would damage the credit of Mis-
sissppi and her citizens more to ~ropudae than to pay the tax.
The bonds were issued under the original law and commissioners
we're appointed to negotiate their sale. The charter required the bonds
to be sold at par, but the commissioner sold them to Mr.. Biddle on credit
though the coupons for interests bore date from sale. In this Mr.. Bidde
was only sharp, but did he not know that an agent cannot exceed his
authority, and did he not have the constitution Of Mississippi before him,
the original charter piedgng the faith, the Supplemental Bill changing
the whole plan and striding at the very essence of the faith pedged-the
"a :" leor Inc perverted scheme to the people Tor endorsement-and
we old United States Bank men thought he was.
Technically his Philadelphia lawyer" might assure him the people
OF Mississippi were firmly tapped and tired down by their agents, but be-
lore the court Of conscience and a jury Of plain gnsophisticated farmers
Mississippi and did he not purchase in his own wrong?
When the first credit allowed Mr., BddIe expired and the first coupon
was due, the Union Bank was authorized to sell northern 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
ranging from five thousand dollars to over one hundred thousand dollars
Few could obtain discounts except those whose property was in the hands
OF mafShaIS and sherlhs. As soon as the property of these lucky Rag,
Blrons was cleared from judgments and executions by these ioans-i2
very many instances the personal property was made to take "a bee line
to Sabine and by the autumn of 1910 it was known to the world that the
live million dollars was gone where the woodbine twineth.
The people were now aroused to a realization of the magnitude of the
deception practlced and held the HSucrS and purchasers of the bonds
equally tainted with the fraud, and by the fall election of 1911 a storm of
swept over the State prOstratng all tho leaders and parGci.
and hled the legislature with members pledged to instant repudu-
ton and prompt notice to the world not to trade or traffic in the uncean
things Suits were brought in the state court, and the Supreme Court
looking through the venerated spectacle ofSir Williams BlackNone's stern
and unyRldmg techncaliGes, decided the bonds a legal claim against the
Under this decision the %bond-holders shelter themselves.
bowed with profound Difference to the better Judgment of that pure and
court. had voted against the Supplemental Bill as a fraud
upon the peoples will and understanding Of the terms upon which they
Their consent. had joined in the effort to refer that bill to the peo-
pie TOR Their endorsement or rejection or the perversion as a right Sc
to them under the state constitution. had voted against repudia- 6
ton as involving questions of dioful import to the general interest and
welfare o the people Of Mississippi, but have never to this day been able
to discover that legal, moral, or equitable obligation of the people of Mis-
sBSppi to honor those bonds outside that dicission. Il
Mr. Bhdle must have known that the consent of the people had been
perverted from It's Just end for he certainly hd. the means of
knowing It, and 1t does not lie in his mouth TO charge dShonor upon them ,
Tor protecting themselves at The ballot box against the fraud, nor can he
now say that 1t was expecting too much Of him to follow the money into J
MISSISSIPPI and see that 1t was properly used by her agents when by the
nature OF his contract he must have known in advance that it would not
be used in the way and on the terms designed by the people as the condi-
Non OF their consent. Nor does it lie in the mouth Of those who pur- II
biased after Mississippi %repudiated to charge dshonor, for they broght y
win notice not to trade or traffic in the uucean things. But we are | n
told that we are now in New Mississippi" That since revolution, war, y
reconstruction and ruin have swept over "Old Mississippi the foul blot n
placed upon her escucheon by the slave holding regulators of 1912 must | d