'The case of Mississippi stands thus: In 1838 the State issued bonds for five millions of dollars, to establish the Union Bank. These bonds were dated June, 1838, bearing five per cent. interest from date, and it was stipulated with the bank that they should not be sold under their par value. On the 18th August following, the bank sold all these bonds to the United States Bank for five millions of dollars, payable in five equal instalments in November, January, March, May, and July, but without interest. The money was punctually paid to the Mississippi Bank, and the Legislature of Mississippi, on the terms of the sale being communicated to them, resolved, _'That the sale of the bonds was highly advantageous to the State, and in accordance with the injunctions of the charter, reflecting the highest credit on the Commissioners, and bringing timely aid to an embarrassed community.'_ In little more than two years, however, the Mississippi Bank became totally insolvent, having lost the entire five millions invested in it by the State. Immediately on this having transpired, the Governor of the State sent a message to the Legislature recommending them to _repudiate_ (this was the first time the word was used) their obligations, being founded on the plea, that as the bonds were issued with interest payable from the date, and they had been sold to the United States Bank for their nominal amount only, the stipulation that they should not be disposed of below their par value had been departed from. He further urged that although the bonds had been sold ostensibly to Mr. Biddle, the president of the United States Bank, the sale was actually to the bank itself, which, by its charter, could not legally purchase them. Hence, although Mississippi had received the money for the bonds, it was thus proposed to refuse to repay it, on the ground that the purchaser had no right to buy them. The Legislature, however, was not quite prepared for this, and accordingly, in responding to the Governor's message, they resolved: '1st. That the State of Mississippi is bound to the holders of the bonds of the State sold on account of the bank for the amount of principal and interest. 2d. That the State of Mississippi will pay her bonds, and preserve her faith inviolate. 3d. That the insinuation that the State of Mississippi would repudiate her bonds and violate her plighted faith, is a calumny upon the justice, honor, and dignity of the State.' But after this, the pecuniary condition of the State became rapidly worse, and the disposition to pay diminished in proportion. Accordingly a joint committee of the Legislature appointed in 1842, reported that the State was not bound to pay the bonds, advancing the reasons before mentioned, and also