deal with a foreign Government: the intercourse with foreign nations belongs to the general Government.

To show that the Florida bondholders never supposed The United States in any way responsible, attention is called to the Prospectus issued by the Agents for the sale of the bonds created for the "Union Bank; it is as follows:

"Florida six per cent sterling bonds—Interest and principal payable at the house of Messrs. Palmers, Machillop, Dent, and Co.

"These are the bonds of the Territory of Florida, payable to the order of the Union Bank of Florida, and endorsed by the bank. They are in sums of one thousand dollars each, bearing interest at the rate of six per cent per annum, payable half yearly: the interest and principal payable in London at the rate of 4s. 6d. sterling per dollar. The bonds are payable on the 1st of January, 1862, 1864, 1866, and 1868. The proceeds of the sale of the bonds form an addition to the active capital of the Union Bank. The bank commenced business on the 16th of January, 1835, with a capital of one million dollars, with a privilege of increasing it to three millions, and it is to complete that increase of capital that these bonds are to be sold. The profits of the bank, after paying interest of bonds and expenses of management, are retained to accumulate as a sinking fund, until that fund shall be equal in amount to the bonds issued.

"On the 1st of January, 1839, upon a bank capital of one million of dollars, the amount of the sinking fund exceeded three hundred thousand dollars. Owing to peculiar circumstances, the profits of the past year have been very large; but previous experience has proved, that in ordinary years (after paying the interest of its capital and the expense of management) the annual surplus profits of the bank (which will be added to the sinking fund) will exceed four per cent; which annuity, compounded at the bank interest at 83 per cent, will cause the sinking fund to effect its object in fourteen years. Indeed, the present amount of that fund, compounded at the bank interest, would pay off the whole

3,000,000 dollars of bonds in twenty-eight years, without any aid from the future annual profits of the bank, the average maturity of the bonds being twenty-six years.

"The capital of the bank, equal in amount to the bonds and the sinking fund, are to be retained and held as security for the re-payment of the bonds. Another ample security for their payment is provided by a mortgage of the property of the stockholders of the bank to the extent of three millions of dollars. The value of the property mortgaged for that object was first ascertained by the appraisement, upon oath, of five Commissioners in each county, appointed for that purpose by the Governor and Legislature of the Territory. And these appraisements were again subjected to the revision of a board of twelve Directors, of whom five are appointed by the Governor and Legislature. So great has been the rise in value of every kind of property in Florida, that the property mortgaged to the Bank would even now sell for thrice the amount of the bonds, and each succeeding year necessarily enhances its value; the holders of the bonds have, therefore, a fourfold security for their payment, viz. :

"1. The capital of the Bank equal in amount to the

bonds.

"2. The sinking fund, which will effect its object in fourteen years.

"3. The property of the stockholders, originally appraised at three millions, with its increased value.

"4. The faith and credit of the Territory and State of Florida.

"By the direction of an Act of Congress, a Convention is now in session for the purpose of framing a Constitution for Florida, and she will probably become a State this year. In extent of territory she will be the sixth State in the Union. Her soil and climate are adapted to the profitable productions of Sea Island, and short staple cottons, sugar, rice, Cuba tobacco, indigo, cochineal, corn, and all the other agricultural staples of the Southern States, as well as many of the productions of the West Indies. She is rapidly increasing in number and wealth.

"Her export of cotton in the past year has exceeded 110,000 bags, and with growth is greatly extending. She possesses the only good harbours on a coast of near 2000 miles in the Gulf of Florida; which, with the contiguity of the West Indies, gives her great commercial advantages, and will ensure her becoming a great commercial State."

The securities enumerated in this document are four, and they were ample, if honestly administered; but not the slightest allusion is made to any liability of The United States, nor is there discoverable the smallest claim of the bondholders before this Commission, which is constituted for the purpose of settling the claims of British subjects against the Government of The United States, or of the citizens of The United States against the British Government. The bondholders have a just claim on the State of Florida, they have lent their money at a fair rate of interest, and the State is bound by every principle of honour to pay interest and principal, and it is to be hoped that, sooner or later, the people of Florida will discover that honesty is the best policy, and that no State can be called respectable that does not honourably fulfil its engagements.

JOSHUA BATES, Umpire.

EXTRACTS FROM CONSTITUTION OF FLORIDA.

Preamble.

WE, the people of the Territory of Florida, by our delegates in Convention assembled at the City of St. Joseph, on Monday, the third day of December, A.D. 1838, and of the independence of The United States the sixty-third year, having and claiming the right of admission into the Union, as one of the United States of America, consistent with the

principles of the Federal Constitution, and by virtue of the Treaty of amity, settlement, and limits, between The United States of America and the King of Spain, ceding the Provinces of East and West Florida to The United States, in order to secure to ourselves and our posterity the enjoyment of all the rights of life, liberty, and property, and the pursuit of happiness, do mutually agree, each with the other, to form ourselves into a free and independent State, by the name of The State of Florida.

ARTICLE I.

Declaration of Rights.

CLAUSE 19. That no law impairing the obligation of contracts shall ever be passed.

ARTICLE VIII.

Taxation and Revenue.

CLAUSE 2. No other or greater amount of tax or revenue shall, at any time be levied, than may be required for the necessary expenses of Government.

ARTICLE XI.

Public Domain and Internal Improvements.

CLAUSE 2. A liberal system of internal improvements, being essential to the development of the resources of the country, shall be encouraged by the Government of this State, and it shall be the duty of the General Assembly, as soon as practicable, to ascertain by law, proper objects of improvement in relation to roads, canals, and navigable streams, and to provide for a suitable application such funds as may be appropriated for such improvements.

ARTICLE XVII.

Schedule and Ordinance.

SECTION 1. That all laws or parts of laws now in force, or which may be hereafter passed by the Governor and Legislative Council of the Territory of Florida, not repugnant to

the provisions of this Constitution, shall continue in force until, by operation of their provisions or limitations, the same shall cease to be in force, or until the General Assembly of this State shall alter or repeal the same; and all writs, actions, prosecutions, judgments, and contracts shall be and continue unimpaired; and all process which has heretofore issued, or which may be issued prior to the last day of the first Session of the General Assembly of this State shall be as valid as if issued in the name of the State, and nothing in this Constitution shall impair the obligation of contracts or violate vested rights, either of individuals or of associations claiming to exercise corporate privileges in this State.

JOSHUA BATES, Umpire.