The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1859-02-23
From the London Times City Article, Jan "a
AMERIEAN n CREDIT In EIIRQPE

In the intelligence from America by the Fulton
it is mentioned that the Governor of Michigan in
his annual message. announces the finances of that
State to be IN satisfactory condition. that her
tire debt has been reduced to f4S0 000 and that
the progress of prosperity is such to render it
desirable that the whole amount should be speedily
paid OF. This will, perhaps, strike some youthful
persons as favorable symptom, calculated to as
slSt the value of American securities in general
10 prevent any such delusion the duty must be
performed of pointing out that there is no State
OF the Union that deserves a lower position than
Michigan. She repudiated large portion of
her public debt nearly twenty years ago and has
never taken the slightest step towards reform or
atonement. But each Governor of the State yearly
sezes the opportunity to put forth a flourish that
the interest all her obligations has been paid with
the usual regularity, and that large surplus re-
mains to be appropriated to a sinking fund. He
merely means that the interest has been paid on the
portion not repudiated and his congratulations to
the Michigan community are just such might be
addressed to the people of England if the Govern
ment were to sponge out that half of the National
Debt which consists of Consols and to refer with
pride to the punctual payment of the dividends on
New Three per Cents. and Reduced The patriots
who frame these documents evidently RELY that by
constantly ignoring the existence of their victims
they will at last induce the world to believe their
assertions of integrity; and the fact that the New
YORK and other journals usually publish their state
ments without word to expose or condemn their
talsehood is calculated to strengthen them in that
hope: The holders of the repudiated bonds are
mostly in Europe.
In connection with the above facts the European
public should bear in mind that of the thirty-three
States of the Union there are four which still repu-
diate their obligations and two that have compelled
their creditors to accept compromises. The repuGi-
ating States are Michigan, Mississippi, Florida and
Arkansas; and those that have paid only in part are
Indiana and Illinois. Thus six States or nearly
one-hfth OF the entire body, occupy situation of
disgrace. They seem, however, to be reminded of
it much less frequently than might be desired or
expected by expressions of opinion from the honest
States who have the misfortune to be politically
bound up with them. Their Representatives ap-
pear to enjoy equal consideration in Congress, with
those OF unstained constituencies, and at very re-
cent period one of the most prominent advocates of
reputation occupied leading post in the Cabinet
at Washington. This condition of affairs has now
prevailed for 10 years. But with regard to Florida
1t should be mentioned that the default turns upon
a dispute between the State and the Federal Gov
ernment. The debt was contracted when Florida
was territory" and she insists that the author
ties at " Washington therefore liable. The Fede-
raj Government deny this, and neither party is in
any hurry to settle the question. Each repes the
charge of repudiation, and the British bondholder
stands between them waiting for his dividends.