The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-01-03
Excess Of DIT over SILK
1905. a22 46. 47o .O6I

Excess Of DIT over SILK, l909,422 4647206l
We have classed Georgia and Alabama among the
States which do not pay BECAUSE though they actually
discharged the interest their State debt yet they each
have large Bank calculations for which the State re-
ponsble but which for years has been redeemable and
nconverble That Of Georgia 81 1853, and that of
Alabama s5,sl7lll. These illegal issues have been the
of meeting their interest, and the withdrawing
from circulation may disable them from paying their in.
terest The Maryland debt is the total reported in
Governor Thomass late message. The other debts
all corrected by recent official reports Nothing de-
the utter nutity of the scheme clearly
this By it appears that eight States and
Territories that have debts whatever have
debt forced upon them amounting in the aggregate to
500 466, bearing say per Mr.. johnson
says perhaps cent but will take the rate
The yearly charge will then be- say 37s for which
these States to be taxed against their will Should the
majority of the States force such debt upon them they
would be reduced to the last stage of political slavery
having debts contracted for them not only without their
consent but against their declared WILL for which debts
they also taxed without their consent. They
be plunged into this debt and expense in order to remedy
the former extravaganza of other States There is and
can be no power to pass such law and these political
would be enough to condemn the project, but
financial reasons place in more absurd light. These
will be in the next class, which of those whose
debts good These about so2 $50 bearing in
terest So 900 OO0
They to have imposed upon them additional debt
of lOO9o5.s0s, bearing interest s40ooo00 Now as the
present State debts bearing average of per cent
good and more safe than the projected stock would be-
is absurd to suppose that the holders would voluntarily
exchange for stock bearing per cent interest To
compel them to do would be robbery and reputation
which il is the protested Of the plan to avoid The
result then would be that additional amount of stock
would he would he
ted by that of the oher stocks which would all be de-
pressed by the increased supply but at the rates
of New York. per cent IS per cent would be worth
SO per cent which would be negotiated if used
all.
We come to that class for the benefit of which
this monsrous scheme started It then appears that
claims of the creditors of those States sI2OO6.
1877 bearing interest per 81 For this they
TO receive s64942727 of stock bearing interest 3d.
597 7o9 Here then after all the infringement of law and
justice half the nominal debts repudated last
The value ofhe stock issued would be above 6s per
cent s4 O54 and the holders instead of receiving an
income of 81 O00 which what the States faith
pledgedto them for they will get but 81 597 709 being
loss Of S4602 29l per annum Now cannot perceive
how the honor of the country its faith be preserved
by such operation this Every principle of law and
justice political and financial is violated by the proceed
ing which, if carried out would actually add $40 l29
deDt OIL the WnOle united states.
a most lame and impoent conclusion To force large
debt upon eight States which have refused any
their account-o add 100 per cent to the debts of
those which scarcely able to pay those that they al
ready the purpose of paying SO per cent of the
debts of dsfaung States after repudiatng Ga per cent
and this under the plea preserving the honor and nteg
rity Of the country and restoring faith in its financial
credit In this most sagacious and comprehensive scheme
notice is taken Of debts of corporations cities
panies due abroad of the myrads OF bankrupts to
whose liabilities sponge has been applied.
In order TO create demand for this most respectable
stock it proposed by the protector issue them of de-
nominations from $1,000 down to $780, which said will
prevent the boarding specie by inducing its investment
IN small sums This is theory the facts that there
are now in circulation $40 of United Trea
suy VOTES OF denominations low $50 for the redemp-
ton which the whole are pledged and which
pear per cent interest these Undue ements for
investment the hoarders specie how will an ncreas
ed quantity at lower rates of interest tempt specie from its
recesses1 And yet while proposing this latter issue the
protector states his opposition Treasury Notes on pre
| cisely the same grounds which he advocates the
| other.
Another and most extraordinary argument advanced