faith for the due payment of the principal and
interest of said bonds.' Now, then, it will be remembered, that the
legality and constitutionality of these Arkansas State bonds never has
been disputed. These bonds were issued by the State, under direct
authority of law, signed by the Governor, with the broad seal of the
State attached, and recognized by the Government of the United States,
by the investment of this sacred fund in these obligations. Nay, more,
this fund thus received by the State from the Government on these bonds,
had been invested, under the law of the State of Arkansas, in a Real
Estate Bank, created by that State, and the money loaned to the citizens
of the State. That State Bank, however, in 1839, became utterly and
notoriously insolvent, and never did or could pay one cent in the dollar
on its obligations. And, more especially, never did it pay, after 1839,
one single cent of the principal or interest upon these State
obligations. Now, then, this institution, in 1846, being absolutely and
totally insolvent, its funds having been wasted and squandered without
the possibility of recovery, either in whole or in part, Mr. Davis
offers this resolution to authorize the State to repudiate its bonds,
and that the Government should look only to this insolvent Bank for the
payment of the principal and interest on these bonds, amounting then to
over $700,000. It was not alleged by Mr. Davis, or by any other person,
that these bonds were unconstitutional. No such pretext was ever made
even by the State of Arkansas. It was a most atrocious case of open
repudiation. And here, it matters not, so far as this question is
concerned, what may have been the obligation of the Government of the
United States to make good these funds. That is a totally distinct and
independent question. The true and real issue in this case is this: Was
not the State of Arkansas bound to pay these bonds, both interest and
principal, as it fell due, in, which bonds, by the request and authority
of the State, the Government of the United States had invested this
Smithsonian fund? This obligation of the State of Arkansas, both moral
and legal, is undisputed and indisputable; and yet Mr. Davis moved the
resolution before quoted, absolving the State from the payment of the
principal and interest of these bonds, except so far as the assets of
her own Bank, then notoriously bankrupt, should avail to make good these
obligations. That is, the Congre