The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1864-05-06
Governor Seymour Protests Against
State Reputation.

Last year the New York Legislature
voted to pay in coin the interest on its
bonds held abroad, but this year resolu-
ton was adopted that no distinction should
be made between foreign and domestic
holders, but that all should be paid in cur
rency. Governor SEYMOUR has sent to
the Legislature message, containing an
emphatic protest against this breach of
faith from which we extract the following:
The effect Of the resolution of this year, in
the absence of any appropriation, will be, that
no part of the interest will be paid, as it was
promised to be paid, to wit, in coin or its
equivalent. When we sought the markets of
the world with our securities, we pledged our
selves to redeem them in the currency of the
last year is now to be followed by an open re-
fusal to pay any of ourspromises according to
their plain sense. The disgrace of last year
was limited; it was kept within ourselves;
now our shame and dishonor are to be borne
in the face of the world.
look upon this matter as of so much mo-
ment to the welfare and to the character of
New York and of its people that l feel con-
strained to ask you to give the subject recon.
sideratiOn; and to urge you to pass concur
rent resolution that shall enable the comp
trOller to pay all the interest which may fall
due before the next session of the Legislature
in coin In this way your resolution of this
year can be carried into effect consistently with
the good credit of the State. and no distinc-
ton" will I" be made between foreign and do.
nestle holders" of the bonds. If you do not
do this let me urge you to provide, at least,
for the interest that is due residents of other
countries being paid in coin.
ofl1c0I IN NOV in RI nit
zens may justify itself to some minds, although
not to mine, as measure of quasi taxation
special, discriminating and unfair, but excused
by onr present extraordinary condition. In
dealing with our creditors in other countries,
no such considerations can come in. We have
over them no legitimate power of taxation;
these creditors of ours have no voice nor part
in our political action: we have no claim upon
them that they should take share in the mis-.
fortunes that befall US in our career. They are
not of our household, nor take part of our do
nestle calamities upon themselves. The bur-
dens and the misfOrtunes of this war belong to
u.s. it is ungenerous to shift any portion of
them upon others who ara not a part of us.
These foreign creditors of ours are strangers
who lent us their money when we wanted it;
upon no security but our word of honor. If
we do not pay them back their money to the
strict letter of our bargain we incur shame
that can never be removed from US. We de-
prive New York of an element of strength
which heretofore has been widely used and
which its people have found profitable, to wit,
its unquestionable credit.
Principle and policy unite to urge the action
recommend to you. 1t is the only way in
which the State can in truth, fulfill its con-
tracts. 1t is the only way in which the State
can keep itself in position to go into the mar
ket hereafter dccently as a borrower
The State is even now in the market for
money to pay its bounties to volunteers The
whole amount of the appropriation urge up
On you will be more than repaid in the first ne.
gotlation the State may make by the enhanced
price of securities. We shall lose more in orr
immediate transactions than the cost of provi-
ding the coin for this interest. Not ONLY our
future profit but our immediate gain will be
served by adhering now to the strictest letter
OF our contracts. The saving proposed by not
paying in coin is small and temporary, while
the dishonor is lasting, and the pecuniary loss
consequent upon this dishonOr will be in the
end enormous
Bad faith on the part of New York, the
leading member of our confederacy, must in
eVtably weaken very greatly, if it do not de-
stroy the credit of our government securities
in foreign markets Compared with the i'm
portance of this State action, in its effect upon
the credit OF the government. the cost Of pay
ing our interest in coin is insignificant Aside
from the consideration of interest or policy.
our duty, in my judgment, was plain. 1t is to
pay the debts OF the State; to pay them in pre-
ciseiy the mode in which they were promised
to be paid to keep the honor of the State I'M
sullied and to this plain duty we should be
true, cost what it may.
HORATIO SEYMOUR