The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1861-08-06

IRON the London Times ((1ty Article) July a
As il is almost certain that, II the American con-
ttnues rondor necessary the raising $50 $50
sterling contemplated by the President proposals viii BIO
made for obtaining portion Of the amount In Europe,
is necessary that American nRncers should recognize
beforehand the disadvantages under which any such
peal would necessarily be made Anything that might be
said in London when loan actually brought forward
would perhaps at be denounced with the ncohereDt
fury lately manifested in relation to every other proceed
ing Ia this country and sbeter therefore 10 prevent
disappointment by referring to the question while there
Is time for It's discussion In the present contest the
North point to tho South repadators and claim strong
faith In their financial integrity. This be set
tied simply like any other matter OF history. OF the
ID by reputation, direct or indirect But these do
not al belong TO the South The balance Of disgrace is
nearly equal The repudiatng Southern States arc Mis-
sisspp, Arkansas and Florida In the North the chief
offender is Michigan but there is also spot ON Pennsy
vana which has been wiped out and Indiana in an
indirect way has placed herself in position very little
differing from that OF determined default. OF the
six compromised States, therefore, three belong to
the South and three to the North There are modi.
flying circumstances TO he mentioned but it is doubtful il
these will alter the balance Az regards the South Mis-
sisspp presents unquesonaby the most fragrant
Here only has has the doctrine Of reputation been
maintained If 1t were among the sacred rights
Of man, but evory appeal Of the cheated creditors
has been met with defiant tans. the leader Of popular
sentiment in this direction having ON all occasions been
Mr. Jefferson Davis who Is presden. of the Southern
Confederation, and who, IT may De hoped, n us
ter Of this part OF his career Noxt comes Arkansas
which the openness Of rs bad faith has been steady
mitator of Mississippi and lastly We have Florida, which
has always contrivcd TO avoid direct avowai of rcpud
alton by resortng instead to bubble Of constitutional
law The debt OF Florida was contracted when she
Terrtory y and her plea that for debts contracted
the federal government liable. The federal govern
ment takes the opposite view aud tho result that be-
tween 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 repad
alton Is direct and uphnshiug and is rather aggravated
by tho fact that there portion OF debt which she
has not repudaed and which she pays dividends the
aovernor in MS annual enc hnor hS %
she has boon distinguished, the State con
tinues to provide duly FOR all her public obitsa
TONS PenIsy vana has never, in the general sense,
been repudiator but her financial character suthrs
from wound which derives Its worst features from its
smaness She issued bonds for arrears or dividends at
full rate OF Interest and when these feN due with an
accumulation Of such Interest," refused to pay them unless
che holders would accept lover rate a o, to DC
inquency the municipality Of PittsbuFg-one OF her
chief towns the Birmingham OF Amsrica-have very re-
issued on their guarantee and with the support of the
popuace have deAcd the mandates OF the Snprene
Court The noxt and last State ia Indiana This State,
After tedious default offered 70 pay dividends upon
hnaf her dcbt IL her creditors would take the un.
finished State Canal in payment FOR inc other nan,
advancing at the time sufficient Tor its conpe-
ton Tho value Of the cnral considerable, because
il took all the central traffic Of the state, and was
protected by charter which II was agreed should
be upheld against competing lines, either OF canal or
railway The creditors accepted the terms and laid out
me reauired sum- END Instantly upon this being done the
as.a asthor,,ies removed all protection passed
abiinQ the construction Of opposition lines actually along
its banks and thus rendered the property entirely worth
dictsd capitalists must form their own conclusions
srom them Bot II will be said that they do not bear
upon tho federal government whose engagements, with
the exception Of the paper during the Revolutionary
war have always been duly fulfilled. That is point,
howovcr each individual TO determine, according TO
his fancy as to whether certain proportion OF unsound
taos among limited federation is to be reckonod as an
element of danger. We must also bear IN mind that II
ia not our place decide which Is tho real
offender with regard 10 the Florida debt-the in
diyidua state or the federal sovcrnmcn-and, like
wise, that although Mr. jefferson Davis ia now FIRE
nuently sssaiied by speakers at Washington Tor
his financial antecedens, those antecedents were never
until the outbreak Of secession cited by dderaisss OF
Northcrncrs diquaying him for the highest Offices Of
state Finally it be remarked that the aggregate
population of such Of the Northern States have been
compromised by default is 5000 600, and that Of the
Southern only 500 600 Under these circumstances, IL
would seem there Is not much TO encourage our capitalists
70 interfere by supply means to either sde while In
rotcat asnsc it is certain that any such movement
would inure our future good relations sinoe we should
have strong prospect that on the termination o. TIE con
tcst-cher by force comprehensive reunitedfriendi
would oin to attribute tho greater part OF lac iscrics
they Ind inflicted each other to the British gold ai
iousiy supplied by stocracy for the very purpose
OF giving Intensity 10 the contest and destroying free in
etitutoEs.