The Sun.
London, England, 1861-07-22 00:00:00

2HE CIVIL WAR IN AMERICA.

Ai it is almost certain that, if the American war
continues so as to render necessary the raising the
£80,000,000 sterling contemplated by the Presi-
dent, proposals will be made for obtaining a por-
tion of the amount in Europe, it is necessary that
American financiers should recognise beforehand
the disadvantages under which any such appeal
would necessarily be made. Anything that might
be said in London when a loan was actually brought
forward would perhaps at once be denounced with
the incoherent fury lately manifested in relation to
every other proceeding of this country, and it is
better, therefore, to prevent disappointment by re-
ferring to the question while there is yet time for
its discussion. In the present contest the North
point to the South as repudiators, and claim strong
faith in their own financial integrity. This can
be settled simply like any other matter of history.
Of the 33 States of the Union nearly one-fifth are
stained by repudiation, direct or indirect. But these
do not all belong to the South. The balance of dis-
grace is nearly equal. The repudiating Southern
States are Mississippi, Arkansas, and Florida. In
the North the chief offender is Michigan, but there
is also a spot on Pennsylvania which has never been
wiped out, and Indiana in an indirect way has
placed herself in a position very little differing from
that of determined default. Of the six compro-
mised States, therefore, three belong to the South
and three to the North. There are modifying cir-
cumstances to be mentioned, but it is doubtful if
these will alter the balance. As regards the South,
Mississippi presents unquestionably the most fla-
grant case. Here not only has the doctrine of re-
pudiation been maintained as if it were among the
sacred rights of man, but every appeal of the cheated
creditors has been met with defiant taunts, the
leader of popular sentiment in this direction having
on all occasions been Mr. Jefferson Davis, who is
now President of the Southern Confederation, and
who, it may be hoped, in his new position, has be-
come sensible of the fatal character of this part of
his career. Next comes Arkansas, which in the
openness of its bad faith has been a steady imitator
of Mississippi; and lastly we have Florida, which
has always contrived to avoid a direct avowal of
repudiation by resorting instead to a quibble of
constitutional law. The debt of Florida was con-
tracted when she was a " Territory," and her plea
is that for debts so contracted the Federal Govern-
ment are liable. The Federal Government take the
opposite view, and the result is that between them
the creditor gets nothing. Turning to the North,
the only State whose conduct in any degree rivals
that of Mississippi is Michigan. In this case, the
repudiation is direct and unblushing, and is rather
aggravated by the fact that, as there is a portion
of debt which she has not repudiated, and on which
she pays dividends, the Governor, in his annual
message, generally introduces a flourish to the effect
that, with the honour by which she has ever been
distinguished, the State continues to provide duly
for all her public obligations. Pennsylvania has
never, in the general sense, been a repudiator, but
her financial character suffers from a wound which
derives its worst features from its smallness. She
issued bonds for arrears of dividends at a full rate
of interest, and when these fell due with an accumu-
lation of such interest, refused to pay them unless
the holders would accept a lower rate. It is also
to be mentioned that, although the State is under
no other delinquency, the municipality of Pitts-
burgh—one of her chief towns, the Birmingham of
America—have very recently refused to pay a large
amount of railway -bonds issued on their guarantee,
and, with the support of the populace, have defied
even the mandates of the Supreme Court. Tho next
and last State is Indiana. This State, after a tedious
default, offered to pay dividends upon half her debt
if her creditors would take the unfinished State
Canal in payment for the other half, advancing at
the same time sufficient for its completion. The
value of the canal was considerable, because it took
all the central traffic of the State, and was protected
by a charter which it was agreed should be upheld
against competing lines, either of canal or railway.
The creditors accepted the terms and laid out the
required sum, and instantly upon this being done
the State authorities removed all protection, passed
a law enabling the construction of opposition lines
actually along its banks, and thus rendered the
property entirely worthless. These are uncoloured
facts which cannot be contradicted, and capitalists
must form their own conclusions from them. But
it will be said they do not bear upon the Federa
Government, whose engagements, with the excep-
tion of the paper issues during the revolutionary
war, have always been duly fulfilled. That is a
point, however, for each individual to determine,
according to his fancy as to whether a certain pro-
portion of unsound States among a limited Federa-
tion is to be reckoned as an element of danger. We
must also bear in mind that it is not our place to
decide which is the real offender with regard to
the Florida debt—the individual State or the
Federal Government, and, likewise, that although
Mr. Jefferson Davis is now frequently assailed by
speakers atWashington for his financial antecedents.
those antecedents were never, until the outbreak of
Secession, cited by Federalists or Northerners as
disqualifying him for the highest offices of State.
Finally, it must be remarked that the aggregate
population of such of the. Northern States as have
been compromised by default is 5,000,000, and that
of the Southern only 800,000. Under these cir-
cumstances, it would seem there is not much to en-
courage our capitalists to interfere by supplying
, means to either side ; while in a political sense it is
certain that any such movement would injure our
future good relations, since we should have a strong
prospect that on the termination of the contest,
either by force or compromise, the re-united friends
would join to attribute the greater part of the
ters t miseriesan a
a etheydestroying
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iandg inflicted on each other to the
British ttit e
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free institutions.—,Times.
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COLLEGE OF PRECEPTORS At a meeting of the
Kennedy,e() une i l of this
D.D., corporationhead m a a ot
master
o.of
Saturday,sh
Shrewsbury
yR
Grammare v. B .I I .
(
the council forca thel School, was re-elected president of th,
cur-
rent year; and A. Hill, Esq., F.C.P. the
Rev. J. S. Howson, M.A., of the Collegiate Institution;
Liverpool; and the Rev. J. R. Major, D.D., head masterulon
of King's College School, London, were re-elected vice-
presidents. Dr. E. T. Wilson, F.C.P , was elected trea-
surer, and the following as members .—Mr. W. H. Carter,
8.A., Jersey; Mr. J. E. B. Eldridge, Royal Military Asy-
lum, Chelsea ; Mr. H. 11. Godwin, Royal Military Asylum,
HChaewlskehaucstM;isßsevkl.u3h.bAar.danlea,rgmat.Ae ;.,
h/velard. Gm.asKterilboufrtnhee,
bruLumar School, Kingston, Jamaica; Mr. J. Robinson,
Sampford Peverell ; Mi. B. Stlutilaii, 03WeStrY; Mr. J.
C. Weykopf, Enniskillen. At the Elaine meeting the
diploma of Associate was granted to Miss A. A. Bingham,
of the Royal Asylum, Brixton-bill, and to Miss S. A.
Rogers, of King's-road, Chelsea, who had passed the re-
quired examination for that degree. It was announced that
the General Medical Council has placed the College of Pre-
celpeZ be rs inr
recognised
nlisisteol a e guaranteesinstitutions
of
first-class certificates,
a
geed general gaticatin.