I was asked if it really was Reuben or Jefferson Davis who was the author of the letter in question advocating the repudiation of the Union Bank bonds of Mississippi, their recollection being, that it was the latter. I said that the repudiation letter in question of the 25th May, 1849, was subscribed and published at its date in the Washington Union, by Jefferson Davis, as a Senator of the United States from Mississippi, which position he then held, that he was personally well known to me for nearly a fourth of a century, as was also Reuben Davis, and that the latter never had been a Senator of the United States from Mississippi, or any other State, as was well known to me, and would be shown by reference to the Journals of the United States Senate. I stated, that I had represented the State of Mississippi in the Senate of the United States from January, 1836, until March, 1845, when, having resigned that office, I was called to the Cabinet of President Polk, as Secretary of the Treasury of the United States, and remained in that position until the close of that administration in March, 1849. I added, that I was in Washington City, the capital of the Union, and residing there as a counsellor at law in the Supreme Court of the United States, when the first repudiation letter of Jefferson Davis, communicated by him to the editor of the Union (a newspaper of that city), was published, on the 25th May, 1849, in that print, and very generally throughout the United States. It was remarked by me, that it was well known to myself personally, and I believed to every prominent public man of that date, especially those then in Washington, that Mr. Jefferson Davis was the author of that letter then published over his signature, and that he defended its doctrines, with all that earnestness and ability for which he was so distinguished. I was also residing in Washington, when Mr. Jefferson Davis published, over his signature, as a Senator of the United States from Mississippi, his well-known second repudiation letter, dated at his residence, 'Brierfield, Miss.,' August 29, 1849. This letter was addressed to the editors of the Mississippian, a newspaper published at Jackson, Mississippi, and was received by me in due course of mail. This letter extended over several columns, and was an elaborate defence of the repudiation of Mississippi. This letter also was generally republished throughout the United States. These views of Mr. Jefferson Davis attracted my most earnest attention, because, after a brief interval, he was one of my successors in the Senate of the United States, from Mississippi. I had always earnestly opposed the doctrine of repudiation in Mississippi, and the Legislature of 1840-'41, by which I was re-elected, passed resolutions by overwhelming majorities (hereafter quoted), denouncing the repudiation either of the Union Bank, or Planters' Bank bonds.
At the period of the conversations before referred to, late in April or early in May last, I was, on this recital of the facts, strongly urged to make them known in Europe, to which my consent was given.
After some investigation, however, the necessary documents fully to elucidate the whole subject could not be obtained here. It was necessary, therefore, to write home and procure them. This has been done, and I now proceed to a narrative of these transactions from the authentic historical public documents.
The first letter of Mr. Jefferson Davis before referred to, of the 25th of May, 1849, was published by him as a Senator of the United States from Mississippi, over his signature, in the Union, a newspaper published at Washington City. That letter is in these words:
'Daily Union, Washington City, May 25th, 1849.
'Statement furnished by Jefferson Davis,
Esq., Senator of the United States.
'The State of Mississippi has no other question with bondholders than that of debt or no debt. When the United States Bank of Pennsylvania purchased what are known as the Union Bank bonds, it was within the power of any stock dealer to learn that they had been issued in disregard of the Constitution of the State whose faith they assumed to pledge. By the Constitution and laws of Mississippi, any creditor of the State may bring suit against the State, and test his claim, as against an individual. To this the bondholders have been invited; but conscious that they have no valid claim, have not sought their remedy. Relying upon empty (because false) denunciation, they have made it a point of honor to show what can be shown by judicial investigation; i. e., that there being no debt, there has been no default. The crocodile tears which have been shed over ruined creditors, are on a par with the baseless denunciations which have been heaped upon the State. Those bonds were purchased by a bank then tottering to its fall—purchased in violation of the charter of the bank, or fraudulently, by concealing the transaction under the name of an individual, as may best suit those concerned—purchased in violation of the terms of the law under which the bonds were issued, and in disregard of the Constitution of Mississippi, of which the law was an infraction. To sustain the credit of that rickety bank, the bonds were hypothecated abroad for interest on loans which could not be met as they became due.
'A smaller amount is due for what are termed Planters' Bank bonds of Mississippi. These evidences of debt, as well as the coupons issued to cover accruing interest, are receivable for State lands; and no one has a right to assume they will not be provided for otherwise, by or before the date at which the whole debt becomes due.
'Jefferson Davis.'
To this letter the London Times, in its money article, of the 13th July, 1849, replied as follows: