The weekly North-Carolina standard. [volume] (Raleigh, N.C.) 186?-1869, 1868-08-12
Who Is Benefited 2

Who Is Benefited 2
The question arises when we think of
paying the interest upon the public debt,
who will he benefited? Will it be the State
or the 'bloated bondholders" as has been
charged ever since the Constitutional Con-
vention adjourned? That we may come at
the right conclusion, let US examine the State
and Der interest as an individual. In the
first place, what is the debt? 1t is the OBJ
legation of the State to pay for a valuable
consideration, received by the State, few
millions of dollars. The obligation of the
State once given, must when due, be met,
the same as that of an individual. But you
say the State cannot be sued, while an indi-
vdual can be. 1t is true that State is
sovereign in so far that she cannot be sued
by one of her own citizens. But what is
to prevent when, as is often the case, she
may have property outside of the State,
an individual holding past due bonds or
coupons from attaching the property This
was done a short time since where the S tate
of Tennessee sent money to Ncw-York to
pay her July interest; parties having past
will reach par.
How long can an individual do business
who pays no attention to meeting his obliga-
tions? The question is not as to whether he
is rich, or poor, but does he meet his obliga-
tons? SO long as he does this, he has a
good business reputation, and can get ac-
commodation when no one else can. Apply
this to the State. What chance would North
Carolina stand in the New York market
asking tor money, should Pennsylvania or
| New York be there to compete with her ?
| One pays and the other does not Money is
a drug in New York at or per cent, yet
| our State bonds are 30 per cent below par
| But the State is poor, and cannot pay taxes
says the croakcr. Is there no other way of
meeting the interest but by taxation? How
| is it with an individual He is in debt
Has not the money to pay, but has pro-
perty. He ut once takes careful survey
of his resources, finds the true value of
his assets, and converts them, as far as
he can, into cash !; this he applies,
as far as it goes, gets his notes extended and
by management he brings his credit up to
the highest point of q business man. As the
due bonds, attached the money, and pre-
vented her paying the interest," and FEN
nessee bonds fell from 70 to 60; it may be
said the State ought not to send her money
or property to New York. This she must
Go. NewYork is the only money market
in the country, and the only place where the
State or her corporations can loan money
Hence we must so shape our course, whether
we speak asindividuals oras a State,-that
our credit shall remain rs it was before the
war" GiJt-Edged"
The States obligation has been given, and
must be paid when due. A great part of
the State bonds are now in the hands of our
uncompleted railways, which must be sold
in market, and every cent below the par
value is n loss to the railroad, and to the
State. Why? the corporation has received
bonds as so much cash; if, to convert them,
loss is sustained, there is so much less money
to be expended among the people, and the
deficit must be made up out of what ought
to go towards paying dividends to the stock
holders. Should the State continue in the
course she has of not payiag her interest,"
she cannot sell her bonds without submitting
to a discount of at least so per cent. Should
she pay punctually and regularly, her bonds
individual has done the State ought to do.
Let us descend more into the detail, and see
how the people are benefited by paying the
interest. There is in the hands of our I'M
completed railroads, $5,2SO,G00 of the State
bonds, one-tlIird of the whole debt; these
bonds are worth in market but $2,904 900,
which is direct loss to the people of 49,
$4,000 If the bonds could be sold at par,
the So, 100000 would be divided out among
the people in this way To build the Chat
hum Railroad, it will take 1000 men 200
days, besides the work of horses and mules
All of these laborers, mules, horses. and the
provision and forage to feed them, must be
furnished by the people, and all the counties
from Wake and johnson to Ansop and Rich
mond, will be directly bercltssd To each
of these counties it wilt be about $500, 600
The Fayetteville and Western Railroad ira