Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1868-04-17
From the Raleigh Sentinel.

Gen. AbbotCs Finapciering.
One point of the letter Of the redoabtabie
Convention Chairman of the Finance com.
mlttee we neglected to notice in our article
of yesterday.
After saying that the Convention has not
provided for taxation of the people, for the
purpose of paying interest on the public
debt until 1S80-a very remarkable state
ment, considering that the Convention di-
rected interest to be paid in cash, begin
ming on lst January next, and likewise that
the Constitution orders the General Assem-
bly, to provide for prompt and regular pay
ment of interest by adequate taxation, y
the honorable military tinancier declares
terest by issuing ne,C bonds
Of course the General can't be serious in
this suggestion
l. The thing can't be done, as the ordi-
nance expressly directs the interest to be
paid IN cash, as we have shown, and the
Constitution says it must be paid by "ade-
quate taxation"
2. Ii done, it would be Intellectual to raise
the credit Of the State. Capitalists would
know that the State, adopting this pro-
cess, would be on headlong rush to bank
ruptcy.
The funding act of March 10th, 1866,
raised the value of State bonds to about 65
cents in the dollar, because bond holders
believed this process was preliminary to
the resumption of interest. As soon as it
was discovered that no such provision had
been made, the bonds fell gradually to so
cents and even less. Capitalists will not
place faith in our securities, until they see
that we will pay regularly our interest as it
natures and that we have the ability to
keep it up. Virginia has been paying
part of her interest, yet her bonds are
lower than ours, and always have been
Notwithstanding General Abbot as
serts the contrary in his letter.
Tennessee, receiving large sums from her
railroads, mainly from government trans
pOrtatlOn, while Sherman marched from
Chattanooga to Savannah, has resumed
payment of her interest in full, but her
bonds have never been higher than 65 or
66 cents. The reason is, that capitalists
could not see that the State would continue
to have the ability to pay regularly. Gen.
Abbott also twlts US with the case of Mis-
souri,, but he failed to tell us that Missouri
received from the q. S. government, for
war expenses reimbursed, four or five mil
hon dollars, which sum was devoted to
iquidating accrued interest. And besides,
that State is in the track of emigl atiCn,
while settlers have been taken away from
North Carolina by persistent defamation.
We warn Gen. Abbott, that if he makes
any more blunders, such as we have point
ed out, he will lose credit for sincerity
We think he offered, AS chairman OF the
Finance committee, the ordinance for
the resumption of payment of interest 1st
January next in cash. We know he earn
estly advocated the measure, We know he
reported the Article of the Constitution
directing the General Assembly to pay the
interest ''promptIy and regularly "by ad
equate taxation" When, then, the mill
tary fnancier asserts, on the eve of cleo
tion, that the Convention did not direct
payment of interest by taxation until 1886,
and that the General Assembly under the
action of the Convention can issue new
bonds to pay interest, some people will i'm
pute to him other qualities than ignorance!