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other and incompatible conditions, would be a new and distinct * proposition. To show that such is the case in relation to the • Union Bank bonds, I will compare the original law, which, after much deliberation and a reference to the people, passed two successive legislatures, with the supplemental act, the 'hasty creation of one.

The original law authorised the establishment of the Mississippi Union Bank, with a capital of fifteen millions five • hundred thousand dollars, “ to be obtained by the directors of 66 the institution.”

• It provided for books of subscription to be opened, divided “the stock into small shares, and directed that none but owners

of real estate and citizens of the State should be stockholders. · Thus it was expected “ to secure the loan of said fifteen 6 " millions five hundred thousand dollars,” the capital stock of “the bank.

It further provided, “ That, in order to facilitate the said « “Union Bank for the said loan of fifteen millions five «« hundred thousand dollars, the faith of this State be and is «« hereby pledged, both for the security of the capital and «« interest; and that seven thousand five hundred bonds of «« two thousand dollars each,” &c., “shall be signed by the «“Governor of the State to the order of the Union Bank, 6“ countersigned,” &c.

• After guarding, with great care, against the allowance of ‘more stock to any subscriber than was amply secured by • mortgage, and requiring that each stockholder should “pay in • “cash,” whenever required by the directors, ten per cent. upon • his stock, it further provided, “ That after the closing of the « « books, and when it shall appear that at least five hundred "" thousand dollars shall have been subscribed and paid in on ""the original stock of the capital of said bank, the said « « institution shall go into immediate operation."

It further provided, that when a board of directors, with a president, should be organised, that the same should be notified

to the Governor of the State, “who will thereupon execute to "" the said bank, from time to time, bonds in amount propor«« tioned to the sums subscribed, and secured to the satisfaction «« of the directors, as required by the charter, until the whole «« amount of fifteen millions five hundred thousand dollars «« shall be furnished in bonds, as hereinbefore provided for.”

• The supplemental act provided, “ That as soon as the books (“of subscription for stock in the said Mississippi Union Bank «« are opened, the Governor of this State is hereby authorised 66 and required to subscribe for, in behalf of this State, fifty «« thousand shares of the stock of the original capital of the "" said bank; the same to be paid for out of the proceeds of • “the State bonds, to be executed to the said bank as already «« provided for in the said charter.”

• Under this supplemental act the bonds were issued. Will any candid intelligent mind fail to perceive that it was not by “the authority of the original law, but in violation of its most 'important provisions, and in direct contravention to the pro• hibition of the constitution which I have quoted ? By the law

which received, in the constitutional mode, the assent of the people, the faith of the State was to be pledged to facilitate a • loan to the Union Bank; by the supplemental act, bonds of “the State were to be issued in payment for bank stock. By • the original law, the State was to be secured by bonds and * mortgages on real and personal estate before any liability

should be incurred; by the supplement, the State was to • become liable for five millions of dollars, without any security

whatever, unless the stock for which she became a subscriber • be so considered.

• The Legislature was authorised to pledge the faith of the • State for a specific purpose, and under certain enumerated

conditions. Could the authority so given be used for a totally • different purpose, and without the fulfillment of the conditions? If not, then the supplemental act, and the bonds

issued under it, impose no legal obligation upon the State. * As an independent act, by which the faith of the State was to • be pledged, it was necessary that this supplement should be * passed by the Legislature—the yeas and nays entered on the

journal—then be referred to the people by publication in • three newspapers of the State, and be again passed by the • next succeeding Legislature, before it could become a law. * These constitutional requirements were not complied with, and

therefore we have held that the supplemental act, so far as it assumed to pledge the faith of the State, was, from the • beginning, constitutionally void.'

It was bad enough in the officers of the Bank of the United States to part with the bonds, even as collateral security, after the notification of Governor McNutt; but it is 'passing strange' that Messrs. Hope & Co., and their constituents, the Messrs. Rothschilds and others, should likewise transfer them to innocent (?) holders. But these “innocent holders,' as the dates make manifest, were aware of their worthlessness at the time they received them. The real sufferers were the stockholders of the Bank of the United States at Philadelphia, whose own agents had committed the fraud.

The persons who received the Union Bank bonds made largely by the transaction; the other American State stocks held by them having risen rapidly in value, sold for more in the market than the amount of the original debt. The par figures of the State securities lodged in the hands of Hope & Co. against the loan of £800,000 amounted to $14,450,506-16

• The Times of December 4, 1839, publishes a statement of the affairs of the Bank of the United States, furnished to the Legislature of Pennsylvania the preceding January. Among the list of assets is the item Mississippi bonds, $7,000,000.' As the Union Bank bonds amounted to but $5,000,000, it follows that the sum was made up by the $2,000,000 issued to the Planters' Bank, which institution was likewise intimately connected with Mr. Biddle's bank and the cotton transactions. Since the date mentioned there has not been a market for these bonds. It is quite clear, therefore, that the stockholders of the Bank of the United States—the 'widows and orphans' of Philadelphia-were also the actual losers by this transaction.

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In addition to the very large stocks of cotton and cotton goods, at the various consuming points in the early part of 1861, the exclusion of 8,000,000 of customers from European and North American markets, by reason of the blockade of the Southern ports, has made the retention of the crops of the Confederate States less inconvenient to the outer world than would otherwise have been the case. The people of the South have, since May 1, 1861, depended almost entirely on the production of their own mills for all descriptions of dry goods,' and have used their leading staple for almost every conceivable purpose. The quantity which they have thus disposed of, up to September 1 next, will be equivalent to at least 1,500,000 bales. The following estimate may, therefore, be received as approximating very nearly to the amount of cotton that may be expected on hand at the commencement of the next commercial year:

Crop of 1860 remaining over on September 1, 1861.
At the Ports, including 300 bales new crop . . . .
In the interior towns.
On the plantations . . . . . . . . .

Bales 37,574

6,200 25,000 68,774

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Destroyed and damaged equal to . . . 1,350,000
Exported, eluded the blockade and taken by the
Yankees ,

. 150,000 Consumed . . . . . . 1,500,000

3,000,000 · 2,368,774

Estimated stock in the Confederacy on September 1, 1863

Of this quantity, however, it is not likely (assuming the advent of peace this summer) that more than 1,500,000 bales can be sent to market prior to the close of the shipping season in 1864, in consequence of the absence of the proper inland transportation facilities, the operations of the war having so deranged the steamboat, railroad, and wagon communications, that very many months must elapse before they can be restored to their former efficiency. 700,000 bales, at least, will be required for consumption in the American States, North and South, leaving 800,000 bales for exportation to foreign countries, against 3,127,568 bales shipped during the season which closed August 31, 1861, and which were distributed as follows:

Great Britain . . . . . . . 2,175,225
France . . . . . . . . . 578,063
North of Europe.

Other Foreign Ports . . . . . . 158,030

3,127,568 (These figures do not include that consumed in the Northern States, which will in future be classed as · Foreign Ports.)

The average annual consumption of American cotton, on both sides of the Atlantic, for the ten years preceding the discovery of gold in California and Australia, was about 2,400,000 bales; since that epoch 3,000,000 bales have been required ; and it is probable that the impetus that will be given to commerce by the recurrence of peace may cause the demand in the next decade to increase to 3,500,000 bales. The crops from 1851 to 1857, inclusive, averaged 3,090,943 bales each year, or just equal to the wants of the world, while those of 1858, 1859, and 1860, yielded an average of 4,059,112 bales per annum, showing an excess of 3,000,000 bales at the breaking out of the war, most of which had been converted into manufactured goods, there having been an increase within those three years in the spinning force of Europe and America of about thirty per cent., which gave a fictitious, not an actual, consumption to the extra production. This was evidenced by the enormous quantities of dry goods’ at all the chief markets, particularly those of India and China, the large profits on a few small invoices that reached their ports at the close of the wars in

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