issippi,
attributed by many to what was called the _specie circular_, and soon
followed a suspension of the banks. Under these circumstances there was
an almost universal demand in Mississippi for relief measures. As a
consequence, the attention of the Legislature was absorbed almost
exclusively in the consideration of remedies for the existing
embarrassments. The result was the enactment, on the 21st January, 1837,
of the law, creating the Union Bank of Mississippi. This bank was based
upon loans to be obtained upon bonds of the State, the proceeds of
which, when sold, were to constitute the capital of the bank, which
money, by the terms of the charter, was to be loaned to the '_citizens
of the State_,' to relieve the existing embarrassments.

The fifth section of the act was the only one in which any authority was
given for a loan by the State, and any power to pledge its faith. That
section, entire, was as follows:

'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 7,500 bonds of
$1,000 each, to wit: 1,875 payable in twelve years; 1,875 in
fifteen years; 1,875 in eighteen years; and 1,875 in twenty
years, and bearing interest at the rate of five per cent. per
annum, shall be signed by the Governor of the State to the
order of the Mississippi Bank, countersigned by the State
Treasurer, and under the seal of the State; said bonds to be in
the following words, viz.:

'$2,000. Know all men by these presents, that the State of
Mississippi _acknowledges to be indebted_ to the Mississippi
Union Bank in the sum of two thousand dollars, which sum the
said State of Mississippi _promises to pay_ in current money of
the United States to the order of the President, Directors, and
Company in the ---- year ----with interest at the rate of five
per cent. per annum, payable half yearly, at the place named in
the indorsement hereto, viz.: ---- on the ---- of every year
until the payment of the said principal sum: in testimony
whereof the Governor of the State of Mississippi has signed,
and the Treasurer of the State has countersigned these
presents, and caused the seal of the State to be affixed
thereto, at Jackson, this ---- in the ---