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Holly Springs gazette. (Holly Springs, Misp. [i.e. Miss.]) 1841-18??, September 16, 1841, Image 1

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v;eiutas nihil veretur, NISI ABSCONDI."
" ,,.,,. iho Anti-Bank Republican.
Thine, entle maiden, to command:
My 'heart grows warmer, as I take
The tender rosebud from thy hand,
To cherish for thy sake;
And doubly dear the gift shall be,
As emblematical of thee.
For not unlike this fragrant flower,
The loveliest of all that bloom,
Art thou in girlhood's sunny hour,
Just budding and for whom?
Ah' happiest of mortals he,
For whom the full bloom rose shall be!
Thy mild blue eyes, thy soft brown hair,
In ringlets clu-tering round thy neck
An i bosom, as the lilly fair,
Thy lip3 which might the coral deck
Thy placid brow and changing cheek,
Ijow eloquently do they speak:
Beauty and innocence combined!
Graceful in attitude and form,
A pure, and unaffected mind,
A heart with love and friendship warm,
Thine, thine should be a fairy life,
The peerless girl, Ihe matchless wifo
llolly Springs Miss.
1 Utter of Instruction to Commissioners to sell Slate Bonds.
! To James C. Wilkins, Edward C. Wilkinson
j and William M.-Pinckard, Esqrs.
I Gentlemen: You are charged by the directors of the Mis-
! si sippi Union Bank with the negotiation and sale of five mil-
I LmoI the State bonds, and it is their wish that you should
: without delay, proceed to such market in the United States or
1 F imp as will enable vou best to accomplish that object.
I Vou are furnished with extracts of the minutes of the boaid
i an 1 duly authenticated powers of attorney, ratifying and con-
firming "what you may do in the premises.
The power"of attorney is general, leaving as much to your
discretion as the charter seemed to authorize, by which in
connection with powers delegated by the board of directory
you are to be governed, taking care that in no instance
you transcend the chartered privileges of the corporation.
This is, in the oninion of the directory, the most auspicious
moment fir the sale of the State stock, and they are therefore
solicitous that you give it your earliest attention.
In the absence of much information, which you will be
enabled to procure when in market, the directory confide
t vour discretion, the best sale you can make for 'ie institu
tion, so that such sale shall not be less than par valuation es
timated by the currency of the United States. It is desirable
th.it vou suould procure as much specie in the transaction as
can be obtained, to be placed in the vaults ot the banl, ana
the balance in lunds to be checked for by the b:ink at pleasure.
There are many cogent reasons to be urged favorable to
the sale of our bonds. The fact that the State of Mississip
pi is by far the largest cotton growing State in the Union,
consequently furnishing a very considerable portion of ex
portable products, essential to the wholesome state of com
meree between this and other countries, is a reason that may
be urged, with much emphasis, why the bonds of Mississippi
. should be valued higher than those of any other State in
market It is esteemed a matter ofimportanoe that the nature
and charactei of the charter should be properly represented.
In most cases it is thefpractice of Legislatures to pledge the
faith of the State by 'an ordinary act of legislation. Ours is
one of different character. It is not the result of premature
legislation, but has been passed by two successive Legisatures
and the immediate approbation of the people, in their primary
capacity, had, agreeable to the injunctions of our constiution;
and, withal, the bonds of the State of Mississippi are doubly
secured. In addition to the guarantee of the State they are
secured by mortgage on the finest cotton-growing estates m
the Union It is sufficient in itself to secure confidence in
the ability ofthe bank to redeem the State bonds, that the capi
tal stock is based on the most productive cotton growing
estates of Mississippi, yielding per annum, from three hundred
and fifty to four hundred thousand bales of cotton; which,
exclusive of all other profitable productsof the soil, will yield
a revenue of from fifteen to twenty million of dollars yearly,
a sum more than sufficient to redeem the entire amount ofthe
bonds in any one year and the revinue accruing in most cases
will be coming to those immediately connected with this
institution, and whose interest it will be to replenish her vaults
with specie whenever it may be rendered necessary.
The article of cotton, as before remarked being the essen
tial commodity employed in commercial operations, and which
being essential to the manufacturer as to the grower cannot
fail, in the opinion ofthe directory, when properly urged, to
make a. favorable impression on the market.
You are authorized to make the payment of the principal
and interest of the bonds at such place or places as will best
.enable you to make an advantageous sale. ' --
If it should be urged as an objection to our bonds, that
Mississippi 13 At this time laboring under pecuniary embar
rassments; such objection may be easily removed by a fair
representation of facts touching her true condition, that such
embarrassment is temporary. No one can doubt, on refer
ence to the statistical information of the State, herewith
handed you it will appear that,J notwithstanding a foreign
debt exists, it will be seen that during the period which it
has been accumlating, the wealth, ana individual rosources
have increased in a ten-fold proportion.
Since 1830 there has been sotd to individuals within the
State 17,573,712 acres of public lands which, estimated at
the Teduced rate of 810 per acre, amounts to 8115,737,120;
and during the same period the increase of slave-population
13 98,834; estimated at 8500 per slave, amounts to 849,417,
100. Then it appears, that during this period the accumula
tion of individual wealth, on those two items, is equal to 8165,
154,120, from which, if we deduct the amount of foreign
debt, at the large estimate of 810,000,030, leaves a balance
of nett profit to the citizens of Mississippi of 8155,154,120
during the term of seven years, equal to the accumulation
of 822,104,874 per annum. Then it is clear that the em
barrassment of the citizens of Mississippi is temporary, and
ideal, growing out of the commercial derangements of the
country and the subsequent loss of confidence which, under
ordinary circumstances, would not have been felt The
government of Mississippi is less embarased than that of
any other State in the Union, heretofore the amount for
which her faith was pledged is 82,000,000 in the bonds of
the Planters bank, which institution has more than ample
means to redeem as appears from the account handed you
If all efforts should fail in making a sale ofthe bonds you
are authorized to hypothecate them lor a portion of specie
funds, so as to enable the bank to commeiice her operations
on safe and sound principles, for the relief ofthe country, so
that you do not pay for such loan a higher rate of interest
than six per cent, per annum.
It is understood by the directory that the specie standard
as the term is used in your power of attorney and instructions
is intended to mean current money ofthe United States.
With regard to the disposition of such funds as you may be
enabled to procure, to have shipped in specie, to be placed in
the vaults of the bank, such portion as you may be enabled to
procure and deem necessary for the establishment, and the
balance place in deposite at such place as may be most advan
tageous to the bank in checking for the same.
You are authorized, if it should become necessary, in de
fraying your necessary expenses, as commissioners in the
service of this bank, to negotiate a loan in the city of New
York or elsewhere, on behalf ofthe bank, for such amount as
may be necessary. . . ' 1
In conclusion, you are required to keep the board regular
ly advised of your proceedings. -
Gentlemen, with, &c. &c.
- (Signed, H. G. RUNNELS, Pres't,
Letter from Commissioners to y. Diddle.
Philadelphia, May 10, 1838.
Mr. N. Biddle:
Dear Sir We beg leave to trespass on your time so
far as to inform you, that by the statute ofthe Legislature of
Mississippi, we are authorized to dispose of bonds of the
State, amounting to fifteen million five hundred thousand
dollars: that there are now in the market, five millions of
them; that they carry , interest at the rate of five per cent
per annum; and arc payable in twelve and twenty years, at
any place wc may designate. By virtue of this authority,
we offer, through you, to the directors of the United Stales
bank of Pensylvania the following proposition; the above
amount of five million, payable at any house in London or
Liverpool, or at any place you may designate, in ster
ling money, at the rate of four shillings and si pence to the
dollar, the interest payaple in the same, and semi-annually.
The bonds to be paid for in five instalments, equal in amount;
the first on the first day of November, and the others in pe
riods of sixty days each, successively ; say on the first day
of November, January, March, May and July next .The
purchaser to have the option, either in the whole or in part,
as to the places of payment, of the cities of New-York,
Philadelphia and New Orleans and not exceeding live
hundred thousand dollars in Louisville, Ky. if preferred by
them. The purchaser to have the option of paying the
last instalment in the city of Natchez, or either of the above
mentioned places, except Louisville. 'The above is an out
line of the proposition we ask leave to submit. Should Mr.
Biddle be inclined to accept it, the details to be explained in
We are authorized to hypothecate tne bonds at the rate of
interest not exceeding six per cent, per annum; and we are
willing to do so, if we cannot sell for a period not less than
two years upon terms which could Ifc made known at an in
terview. -
We have the honor to be with considerations, high respect,
&c. &c. your ob't scrv'ts,
E. C. WILKINSON, Comm'rs
J. C. WILKIN I Commrs.
Ansicer. -
Philadelphia, Aug. 6, 1837.
Messrs. E. C. Wiklinson, and CommissionerSt
james E. Wilkins, $
Gentlemen I have had the honor of receiving this morn
ing your letter of this date, proposing the sale of five million
of dollars of the bonds of the State of Mississippi. I regret
that the necessity of going to New York early to morrow
morning, will prevent my having the pleasure of seeing you
but understanding that it wwbe agreeable to you to receive
an immediate answer, I now state:
That I accept the offer ofthe bonds on the terms mention
ed in your letter, and am prepared to carry the contract into
effect forthwith.
I have the honor to be,
Very respectfully, yours,
Contract of sale of Slate Bonds, between Commissioner1 s
and N. Biddle.
This agreement witnesseth. That we, the underigned;
commissioners of the State of Mississippi, and attorneys
in fact, of the Mississippi Uniou bank, for and - in
consideration of the amount and payments hereinafter speci
fied, of five million of dollars, by Nicholas Biddle, of the
city of Philadelphia, to be made to us at the several times and
W virtue xf the power and au-
thority in us vested by the statutes ofthe Legislature of the
sfoto n r vi ei nni nnu iud.iuj.cic ui 'ouuiui, w wv. wo
MiceiMinni TTninn hank. i which said statutes and power of
attorney are laKen as pari ui iuis dyiwiucuiaa muiu
serted,)have sold ana delivered to inesaia micuoias oiuuic,
two thousand five hundred bonds ofthe State of Mississippi
for the sum of two thousand dollars each, amounting togeth
er to the sum of five million ol dollars, as enumerated and
described in the said power of attorney; which said bonds
are made payable at the agency of the bank ofthe United
States in London, sterling money of Great Britain, -at the
rate of four shilf.rigs and six pence to the dollar, with inter
c;l i"userni-annuauy,at the same place and rate. And-
V?.1 agreement further witnesseth, that the said Nicholas
Biddle, in consideration of our said sale and delivery to him
ol the said two thousand five hundred bonds, as aforesaid",
nas agreeu, ana Hereby does aoree. to mv tn n tK iA
commissioners and attorneys, or to our successors,' or to our
nrtlinlr nnlar n.. C C Ml? - e s n ft
v, ..ut,., iuc sum in hvc minion 01 aouars lawiul mo
ney of the'United States, in fl VP ertnr inctnlmonls nf nna
million of dollars each, on the first day of November one
thousand eight hundred and thirty-eight, and on the first
days of January. March. Mav. and Jnlv. whir.h will Iia in
the year one thousand eight hundred and thirty-nine, re-
unij, twitiii aaiu payxiienis 01 one minion ol uoiiars,
each, of November, January, March and May shall be made
in the city of New Orleans, and the last payment of the like
sum on the first day of July next, shall be made at Natchez,
in the said State of ilississippi. In witness whereof, we'
the said commissioners and attorneys, and the said Nicholas
Biddle, have executed and exchanged this agreement, this
eighteenth day of August, in the year of our Lord eighteen
hundred and thirty eight. N. BIDDLE.
The bank ofthe Uunited States guarantees the punctual
performance oi the foregoing contract.
For the Cashier:
G. DUN LAP, 2d' Assistat Cashier.
August 18th, 183S.
To the Gorernor ot the State of Mississippi. The underpinned, as
iru.iees ior uie nomers oi aeDeniures ol the jJank ol the United stales
at Philadelphia on deposite of American State Stocks, and amongst
others of a considerable amount ofthe bonds ofthe Stale of Mississi
ppi, bearing fire per cent interest, issued through the Union Bank
of Mississippi, and made payable at the agency of the United States
of Pa., in London, the principal in 183i) and lb5S, and the dividends
semi-annually in May and ISovember; having been refued payment
ofthe interest due the 1st of this month on said bonds, are compel
led to address themselves to the government of the State of Mississi
ppi; and from their confidence in the faith of that government, they
feel convinced that the simple mentioning the fact of the nonpay
ment, will be sufficient stimulous for the government ofthe State
of Mississippi to take immediaie measures for the payment ofthe
interrest nowdue. and which will further successively become .uie
on mose Donas, ana to prevent irregularities or demur so prejudicial
to the interests of American credit in general, and to that of the
State ol Mississippi in particular.
hope & co.
Amsterdam, 22d May, 1841.
City op Jackson, July 13, 1811. )
Gentlemen: -
I have received your letter, dated Amsterdom, 22d May, 1811,
postmarked Washington City, June gist. '1841, and bearing the
official frank ofthe Hon. Daniel Webster, Secretary of Stale of the
United States. 1 have duly conidcred the contents thereof. These
bonds were not sold in accordance with the constitution and laws of
tins btate. 1 hey were delivered by me as escrows, to be sold at
not less than their par value and for cash, as the statute of this Stale
required. The charter of the Mississippi Union IJank prescribes
not only the ?ubt?.nce, bat the lorm ot the bonds, nnd provides that
they shair be in the sum of two thousand dollars each, "which sum
the said State of Mississippi promises to pay in current money of
the United States," to the order of the bank, with interest at the rate
of five' per cent, per annum, payable half-yearly, at the plr'e named
in the endorsement of the bonds. The act further provides mat taid
bonds shall not be sold under their par value," The bonds having
been delivered to the managers ofthe bank to be sold on certain con
ditions, the State cannot be bound for their redemption unless the
terms prescribed were complied with in the sale. The constitution
ofthe State expressly provides that no "Jaw shall ever b; passed to
raise a loan of money upon the credit ofthe State, or to pledge the
faith of the State for the payment or redemption of any loan or debr,
anless such law be proposed in the Senate or House of Representa
tives, and be agreed to by a majority ofthe members of each House
and entered on their journals, with the yeas and nays taken thereon,
and be referred to the next succeeding legu lature, and published for
tiree months previous to the next regulr election, in three newspa
pers ofthe State; and unless a majority of each branch oi the legis
lature so elected, alter such publication, shall agree to pass such law
and in such case the yeas and nays shall be taken and ent ered on the
journals of each House: Provided, that nothing in this section shall
be so construed as to prevent the legislature from negotiating a fur
ther loan of one and a hall million of dollars, and vesting the same
in stock reserved to the State by the charter of the Planters' Bank of
the state of Mississippi."
Five m illions of State Bonds, dated the 5th, Gth, 7th, 8lh, and 9th
days of June, 1838, were sold by the commissioners appointed by
the Mississippi Union Bank to Nicholas Biddle, Esq. on the 18th
day of August, 1838, for five million of dollars, lawful money of
the United States, payable in fiv equal instalments of one million
of dollars each, on the firts day of November, 1838, and on the first
days of January, March, May and July in the year 1831)," and "made
payable at the Agency ofthe Bank ofthe United States in London
in sterling money of Great Britain at the rale of four shillings and
sijepense to the dollar, with interest payable semi-annually at the
same place and'rate." No authority was ever given by any act of the
legislature of this State to change the currency in which said bonds
were made payable. By selling the bonds on a credit, and changing
them from dollars current money ofthe United Stales to Pounds
Sterling ot Great Britain the following sums were lost:
Interest on five million State Bonds from 7th June, 1838, to 1st
Nov. 1838.
Interest on 4 millions 2 months,
In'l on 3 millions 2 months
In't on 2 millions 2 months
In'ton 1 million 2 months
Difference between five millions dol
lars, principal of State Bonds, in
current money ot the U. S. and ster
ling money of Great Britain at Jour
shillings and 6 pence to the dollar,
Difference ol interest on 1,23,000
of State Bonds, payable in 1 2 years
betwen current money of the U.
S. and pounds sterling of Great Bri
tain at four shillings and six pence,
to the dollar,
Difference of interest on S3, 730,000
of State Bonds, paybble in twenty
years betwen current money ofthe
II. S. and pounds sterling of Great
Britain at four shillings and six
pence to the dollar,
100,000 00
33,338 48
3-1,999 90
8,333 32
183,333 30
478,730 09
C9,C23 00
358.0G8 00
1,084,781 30
From the above statement it will be perceived that one hundred
and eighty three thousand, three hundred and thirty eight dollars and
thirty cents, were lost by selling the five millions dollars of bonds on
credit, and paying interest thereon from their respective dates, and
the further sura ol nine hundred and one thousand three hundred
and Torty three dollars was lost by changing the bonds from dollars
current money ofthe United States to pounds sterling of Great Brit
ain. These two items amount to the enormous sum of one million
eightv-foar thousand seven hundred and eighty-one dollars and thir
ty cents. Surely such a sale cannot be binding on the State of Mis
sWippi. TKp liith f th-T'We ,i? pled-M for th payment ft iho?
bonds only upon the condition that they were sold at not hNS than
their par value. The State exacted thefull amount of those bond to
be paid into the vaults of the Mississippi Union Bank. If the lull
amount had been received and the curit ncy in w hich they were made
pav.'.b!e not have been changed, the bank would have been U-Uc r en
abled to indemnify the State.
It appears that the bands were endorsed in blank by the officers c l
the bank and delivered to the Commissioners charged with thvir kiU'
Neither their power of auorney nor letter of instructions null oried
those gentlemem to fill up said endorsement by making i!k bond
and coupons payable in pounds sterling of Great Britain at the rate
of four shillings and sixpence to the dollar. If such a change had
been made on the face ot the bonds aAer their execution and delive
ry to the bank, the parties making the alteration ,would have Un-n
guilty ol forgery, and could have been immured in the penitentiary
lor the otlencc. It will net answer to the argument to allege that the
endorsementcould only bind the Mississippi Union Bank. That
institution has undertaken to pay both principal and interest of the
bonds. If the bank is compelled to pay the one million ei-hty-fuu r
thousand seven hundred and eighty-lour dollars aud thirty cents for
the loss j-ustained by the credit sales ofthe bonds and the change in
the currency in which they vere made payable, her means will K
reduced that amount and the risk of theit;ite thus greatly increased.
The State was willing to intrust her credit to the bank on the condi-'
ttons prescribed in the charter. The faith of this government ha
never been pledged for the illegal and fraudulent sale of those IwmR
1 his is a cor stitutional government, and all its officers take an
oath to support the constitution ofthe State, nnd faithfully lo dis
charge the duties of their respective offices. Her Chief Magnate
is required to take care that the laws be iaithfully executed He
would te recreant to his trust and violate his oflicial oath were he to
suffer the laws el'the land to be tramrded mum nn.i n .. nviitnimn
The contract for the sale of the Rtnto
oT the fctajc in relation to the bonds, were made a part ot therunti.nci.
, " i u'i""',-' "nmwdic vi me conditions on wiiieii they w eie
issued, and knw that the nurch was iwiil,r vn,.r i,
, , , . - -UIUl Ml llll I I'll'
stitution and lavs of this State, nor ol Pennsylvania. The contract
nuuaiumu-u uy uiciiuuK m me u. ouucs. i lie whole ofthe pm
chase money was naid bv that institution. Tl.nni'M, ih i.m,.
was merely used in the contract as a device, to get round that clause
ui me uaun. ui me united oiaics, wnicn prohibits lie r
lrom dealing in Slate stocks. The cunencyin which the Umds weie
made payable, was changed from dollars to pounds Merlin, to vive
false coloring to the transaction, and make it appear that ihe bunds
were sold at par value. The cominerci.il law of this Suite, relative
to negotiable paper, ia different from fliat of most oilier countries.
The transierol bonds and notes, does not prevent the drawer Irnu
setting up any defence against Hi
a -1 11 . . j ... ...... i. i t llllll VUll
be available against the original payee.
The Slate therefore, denies all obligation to pay the Word held in
trust by you lor the following reasons :
1st. The Bonds were sold on a credit.
2d. The currency in which the Bonds were made payable, was
changed lrom current inonpv of iln Ifnit,.,! sif..i.. i,. . . ...n
w j - ii, i.uuiiu-i Mi iin;-
-V'.'U1101"31 therateoJ urhiinnjanl sixi.cnce lotlie tldlar.
. 1 1 1 f . r-irw-,j.l ..4. n 1 . . ....... l ' I I
v.. iiW .iua. ot taie was uuuuuicm.
4ih. The Bank of the United States was not authoiized lo make
the purchase.
5Ui. The Bonds were sold at less than their par value, in viola
tion ol the charier of ihe Bank.
The money paid for these Bonds did not conic into the Slate Treas
ury. Ihe officers of this Government had no control over its .lis.
bursement. The Bonds were disposed of in August, Im3s by c ol
lusion and fraud, in violation of the constitution' and laws ol this
btate. The Mississippi Union Bank, and liie Bank of the United
States Merc panics to ifiis unlawful transaction. Von have tfiei n
dorseinent oi both these institutions, and to them i on n.no i,.,.i, in
payment. This State never will pctj tfic five million ol dollar.- of
estate Bonds issued in June, 1838, or any fvrtivn ol fit interest due
or to become due thereon. '
When I ascertained in January IRtO iJ, frmu n k:..i.i i i..
- J .! vi n fiivil Mir JOIlfi
had be-u sold, 1 communicated the same by message to the legisla
ture and denounced the sale as illegal. At that nine onh- two mil.
lions oi dollars had been paid on the Bonds by the Bank ol the Uni
ted Slates. By n Proclamation I subvemifniK' Jn,.,! ii, t .i it..
- - - . .'iivur iiiw .imii. Willi.:
second live millions of dollars of A'tate Bonds delivered lo the Mis
sissippi Uniou Bank, was prevented. I absolutely refused to execute
... , uuu nun uiii.ioii.s in uuiitirs oi Muie lionas (leinanuetl
by that institution. The dee isiV'i' irw-n v.l rw nrM onto ,1
disposa. ol ten and a halfinillions of dollars ol State Bonds.and will
wuinii.1. jUU inn, me uuttiiinii.'ui uiiuiji iaie nuver naj, counte
nanced, and cannot b made resnonsilili Cur iti rft 11 ln I n f ..111...
Mississippi Union Bank.
I have forwarded to vonr mid
of this Mate, lor the years 1810 and 1K11. It will afloid me m.u ,
lcaauie 10 lorwara you sucn other documents as you may desire.
i am anxious that the bond hohlpr VIM ri kVk.i(ki.ii
, . . ui i i i i j 1 1.
lacts in relation to the issuance anddisposjil ol the Bonds held by
them. Your irreat experience in cominerei.il .iffV.irfc no i..ni.t i, ...
V I . -.-. ' l'UOl 1 1 (1 ,i
made you familiar with the nrinrinh- itmt
ence to ityj law, and that in a constitutional and free Government
Pl'prif net of a rn)i!i liirifl!nipu 1 t.....l.. : , i i .
.uu.ay. ...ih.iuii.uj nitiii j uij cicici.v; ui utjratcd
power entrusted to him by the people for a specific purpo.se, and that
11 is acts are the acts ofthe people, only while within the powers con
ferred upon hiui.
I am gentlemen,
Very Respectfully,
Your ob't serv't
Messrs. Hope & Co.
Amsterdam, Holland.
On the 20th instant in Committee of the Whole far the
H ouse of Keprcsentatives, Mr. Sercxant introduced a new bill
for establishing a Fiscal Corporation. In its leading features
it difieres from the Fiscal Bank Bill, rejected bv the Presi
1st. The capital is to be twenty one millions of dollars.
with power to extend it to thirty-five millions, 814,000,000 to
be owned by subscribers and 87,000,000 by the United States
2nd lheiormer bill provided lor the establishment of
offices of Discount and Deposite; the present bill provides for
ne estautisnment oi agencies only.
3rd. The dealings of the corporation are to be confined to
buying and selling foreign bills of exchange, including bills
drawn on one State or Territory, and payable in another.
mi .? ! J r
i nc corporation is proeinuea irom accounting promissory
notes, or making what is called local discounts.
4th. The title of the corporation is to be changed to that of
the ''Fiscal Corporation of the United States."
On the introduction of this bill Air. Wise raised the point of
order that it was, in the substance, tho game as that which had
been rejected the day before, and could not therefore be taken
up: otherwise the constitutional provision might thus bo eva
ded. The chairman, Mr. Dawson, of Georgia, overruled
the objection, on the ground that the measures were not the
same, though parts of them might be similar.
In the present state of this matter it would be premature
to offer any remarks. We have only to express the hopo
that such a bank "or corporation'' may be established, as will
give us a sound ana uniiorm currency,
mo?t devoutly to be wished." B'unter.
'a consummation

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