Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1864-04-27
Governor Seymour Protests Against
State Reputation.
His Message to tho Legislature ON
the Subject OF Paying the Inter.
est ON State Bonds I'm Coin.
The Financial Honor Of the
Empire state at Stake.
Message of enc Governor.


Message Of the Governor.
To the Legislature: ..-'..--....-.,~
Ny attention has been called to concur
rent resolution, which has passed both
branches of the Legislature in the follow
ing words: ......
Whereas, All the stocks issued by this
State were made payable and negotiable in
this State; therefore,
Resolved, That no distinction should be
made between the foreign and domestic
holders of such bonds as to the currency in
which the principal and interest thereon
should be paid.
To the principle laid down in this resolu-
tion, in terms, there can be no objection Of
fered. All the creditors Of the State,
whether they be of our own people or for
eign. should be alike paid; paid promptly
and in full all that was promised them.
The Legislature, last year, adopted con-
current resolution on this subject, in the
following words:
Resolred, That the interest accruing on
so much of the State debt on the first day
of April as was on the first day of March,
eighteen hundred and siXty-three, held by
persons residing out of the United States,
and is still held by them, be paid in gold or
its equivalent.
And an appropriation was made for the
purchase of coin to an extent sufficient to
enable the Comptroller to pay in gold the
interest on the stocks of New York, held by
persons residing abroad; and only to that
extent Although the resolution of last
year did not in terms forbid the payment of
the interest due to our creditors residing in
the country, in coin, yet the absence of any
appropriation for the purpose, obliged the
Comptroller to forego such payment. In
practice, a distinction was thus made be-
tween the nonresident creditor and the
resident creditor. We kept faith with the
stranger who had trusted us; we broke
faith only with those of our own house.
hold. AfF'
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 zoe sought the
markets Of the aoorld aoith our securities, zoe
pledged ourselves to redeem them in the cu,ren-
cy Of the aoorld The partial neglect of
plighted faith last year Is now to be follow
ed by an open refusal to pay any of our
promises 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
moment to the welfare and to the character
of New York and of its people that / feel
constrained to ask you to give the subject
reconsideration; and to urge you to pass a
concurrent resolution that shall enable the
comptroller to pay all the interest which
may fall due before the next session of the
Legislature in coin. In this way your res
olution of this year can be carried into eff
feet consistently with the good credit of the
State, and 'no distinction" will "be made
between foreign and domestic holders" of
the bonds. If you do not do this, let me
urge you to provide, at least, for the inter-
est that is due residents of other countries
being paid in coin. l-
The refusal to pay in coin to our own cit
izens may justify itself to some minds, al
though not to mine, as measure of oldsi
taxation-special,d discriminating and un-
fair, but excused by our present extraor-
dinary condition. In dealing with our
creditors in other countries, no such con-
siderations 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 a
share In the misfortunes that befall us in
our career. They are not of our household,
nor bound to take part of our domestic
calamities upon themselves. The bur-
dens and the misfortunes of this war be-
long to us; it is ungenerous to shift any
portion of them upon others who are
not part of us. These foreign
creditors Of ours are strangers who lent us
their money when we wanted 1t; 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 deprive
New York of an element of strength which
heretofore has been wisely used and which
Its people have found profitable, to wit, its
unquestioned credit. s s',,v.,
Principle and policy unite to urge the ac-
tion l recommend to you, 1t is the only
way in which the State can, in truth, full |
fill its contracts. 1t is the only way in
which the State cal keep itsef in q position
to 60 into the market hereafter decently as
q borrower.
The State is even now in the market for
money to pay its bounties to volunteers.
The whole amount of the appropriation |
urge upon you will be more than repaid in
the first negotiation the State may make,
by the enhanced price of its securities. We
shall lose more In our Immediate transac-
tions than the cost OF providing >the coin
for this interest. Notonly ourfufure profit
but our immediate gain viii be served by
adhering now to the strictest letter of our |
contracts. The sdcing proposed 6v not payino
in coin Is snail and temporary schsle he ais.
honor Is lasting and the pecanidiy loss conse-
q,sent upon this dishonor, soiU be IN the end
enormous. -, ". -. .s..xs.,sr w., vkfI
Bad faith on the part Of New York, the
leading member of our Confederacy, must |
inevitably weaken very greatly, If it do not |
destroy, the credit Of our Government Sc |
curitiesin foreign markets. Compared with |
the importance of this State action in its |
effect upon the credit of the Government,
the cost of paying our interest In coin is
insignificant. Aside from the considera-
tion Of interest or policy, our duty, in my
Judgment, was plain. Il is to pay the |
debts Of the State; TO pay them In precise
ly the mode in which they were promised
to be paid; to keep the honor Of the State
unsullied and 20 this plain duty we should |
be true, cost what 1t may. Z - y N i.b-ss i
HORATIO SEYMOUR