Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1867-07-26
The Debts Of the Southern States-Is Com
sress Making the Federal Government
Responsible for them.

The Debts Of the Southern States-Is Com
srsss Making the Federal Government
Responsible Tor them.
| In his message to Congress, Monday.
communicating in answer to call from that
body, various documents bearing on the
subject OF reconstruction, the President
uses the following language
LII the existing governments of ten States
of the Union are to be deposed, and their
entire machinery is to be placed under the
exclusive control and authority of the re-
spective district commanders, all the ex-
penditures incident to the administration
| of such governments must necessarily be
incurred by the Federal government It is
believed that in addition to the two mil
| lions one hundred thousand dollars already
| expended or estimated for, the sum OF
which would be required for this purpose
would not be less than fourteen millions of
dollars, the aggregate amount expended
prior to the rebellion in the administration
of their respective governments by the ten
States embraced ia the provisions of these
acts. This sum would, no doubt be con-
slderably augmented if the machinery of
these States is to be operated by the Fed
eral government, and would be largely in
creased if the United States, by abolising
the existing State governments, should be-
come responsible for liabilities incurred by
them before the rebellion, in laudible ef-
forts to develop their resources, and in no
wise created for insurrectionary or revolu-
tionary purposes. The debts of these States,
thus legitimately incurred, when accurately
ascertained, Will, it is believed, approximate
a hundred millions of dollars, and they are
held not only by our own citizens, among
whom are residents of portions of the coun-
try which have ever remained loyal to the
Union, but 10y persons who are the sub
Jects of foreign governments. 1t is worthy
the consideration of Congress and the coun-
try whether, if the Federal government, by
its action, were to assume such obligations,
SO large an addition to our public expendi-
lures would not seriously impair the credit
Of the nation or, on the other hand,
whether the refusal of Congress to guaran-
tee the payment of the debt of these States,
after having displaced or abolished their
State governments, would not be viewed as
a violation of good faith and a repudiation
by the National Legislature, of liabilities
which these States had justly and legally
incurred.
After the message had been read in the
Senate
Mr.. Howard, referring to that portion of
the message in which the President alludes
to the assumption by the United States of
debts of the rebel States incurred before
the war, and said it was all moonshine, and
designed for party purposes.
Mr.. Hendricks said the President had not
expressed any opinion on that subject He
had merely made the suggestion whether,
if the Southern States were to be treated
as conquered provinces, the United States
would not have to pay the debts of these
States. This doctrine had been laid down
by Governor Morton, of Indiana, two years
ago, in q speech endorsing the Presidents
policy.
Mr.. Sumner said that, as o question Of
law there was nothing clearer than that the
rebel States were responsible for all their
just debts and obligations The States still
existed, and their just obligations inhered
in them, and could not be evaded.
Mr.. Johnson thought it was not advisa-
ble for the President to express hypothet-
ical opinion on the subject of public finance
at the present time when the debt was 80
large, and the people 80 sensitive on the
subject Of it's increase. He didn't believe
the President was correct in his assump-
tions. The Southern States still existed as
States, and not as conquered provinces.
Mr.. Fessenden regretted that the Presi-
dent had brought this subject before the
, Senate in its present shape. He did not
think the President was justified in these
suggestions. He regarded them as entire
ly fallacious
Mr.. Hendricks did not think the Govern
!, ment of the United States could rightfuly
be bound to pay the debts of the Southern
States con tracted before the war. The OBJ
iect of the war as avowed by Congress was
{ not the conquest of these States, but the
suppression of the rebellion. In the event,
!, however, of the entire absorption of the
States by the Federal Government, 1t would
be practical question of great moment
whether these State obligations would not
rest upon the General Government.
Mr.. Howard again took the floor in OPP
position to the views set forth IN the Presl-
dents message, which he said were calcu-
lated to alarm capitalists all over the coun-
, try.
Mr.. Wilson said this message was in per-
feet keeping with the action of the Presi-
dect during the last two years. MT The Presi-
! dent had during that time lost no occasion
! to allude to the bonded aristocracy, and
say what he could in disparagement of Con-
gress and everything connected with It's
policy of reconstruction. The policy OF
Congress would increase the value of the
national debt and of the debts of the rebel
States.
, Mr.. Frelinghuysen was glad that this
message met with no response or endorse
ment in the Senate. He regretted that the
, President had sent in such Il document. 1t
! might have q bad effect were it not that all
intelligent people would see through its
fallacies. There had been no conquest OF
the Southern States. So the doctrine could
not be applicable at all.
Mr.. Buckalew denied that the President
favored the assumption of rebel debts. He
was simply suggesting that upon the theory
, and doctrines which prevailed lately In
Congress such state of facts might be
brought about.
Mr.. Thayer condemned the position OF
the President, as asserted in the message,
as another attempt to throw ali obstacle In
the way of reconstruction. He thought the
Senate should treat it with the utmost in
! difference
DR.. Stone, late of the Park Street Church,
, Boston, has liberal congregation In San