The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-06-09
NO REPUDI1TION!
Honesty the Best Policy.
TO THE EDITOR OF THE NEWS.


When a debt becomes onerotis, it Is very
natural in US to try to get rid of it, and it Is
very soothing to our consciences if we can con-
vince ourselves that it was fraudulently impos-
ed upon US. But even if fraud had been prac-
ticed, it does not necessarily follow that the
obligation is void. In the case of the railroad
bonds, there is no pretence whatever of frand.
The people, animated with the hope of pour
ing into the city abundant streams of wealth,
were eager to foster any railroad which would
convey part of those streams. When they
discovered that they had perhaps gone beyond
the power which they possessed, application
was made for the power and for ratification
of those acts which they had already perform
ed, and both were quickly granted. Was that
debt sacred obligation as long as hope smiled
upon us, and now that it no longer smiles, has
it become changed in character? The very
fact that the debt has for sixteen years been
depository for trusts and for honest invest
ments gives 1t binding force, and stamps repu-
diation with opprobrium. The chairman of
the late meeting of taxpayers does not hold his
house by q tenure more equitable than the
holder of the city debt holds his right of proper
ty in it.
ALI arguments drawn from the inconyeni-
ence and the difficulty of paying the debt are
merely appeals to the baser part of our natures,
and should be treated accordingly. Had the
interest of the debt been paid, according TO
contract; had the creditors, who are or were
generally citizens been assured by the con-
duct of the city that the will to pay. was there,
no difficulty would baYe been found in staYing
off the trouble, which, In such times as these,
necessarily attends the payment of heavy in
stalments. Those who bought the stock as an
investment, would generally have been quite
satisfied to continue the investment, even
though larger interest might be obtained, by
receiving and reinvesting the principal. A
wise provision would have been successful,
but this wisdom was not exhibited, and hence
the credit of the city is shaken as 1t has never
been before. City securities have long since
ceased to bear par value, but that was the
natural consequence of the rise in the value OF
money. When from twelve to twenty per
cent can be obtained for money, few persons
will be content with six. The decline In value
therefore, was natural, inevitable, and not to
be regretted. But il fell lower than it should
have done, considering the rate Of interest,
and even now It is falling In value. This de-
cline is disreputable; 1t betrays want of con-
fldence in the good faith and integrity Of the
city. This sort Of decline has never until late
affected the character of any securities, either
of the city or State.
Doubtless when we see real estate fallen In
value, 1t seems very hard that the debt which
Is charged upon it should remain unchanged.
Do those who take this view of the debt ever
think of terms when every thing is inflated,
when prices rule high for all things, but the
holder Of his certificates still receives his mod
crate interest? can assure them that this
has been painfully felt by thousands within q
few years, and these unfortunate creditors
have known what 1t Is to 60 quarter after
quarter to the treasury and find It's doors
closed to their demands, because the authori-
ties are unwilling to oppress the holders Of
real estate by meeting their sacred obligations.
Having suffered both of these evils uncom-
plainngly, now it is professed to end their
miseres at once by boldly repudiating all debt.
Perhaps more reasonable and equitable plan
may be more successful. The times are out of
joint, and nothing indicates it more strongly
than that body OF Charleston gentlemen
should unblushingly hint at such injustice.
Reputation may not be successful, and GER
tainly If it could be accomplished, a remedy so
vile would fail to work the good which is eX-
pected from it. 1t would at once break down
all the barriers which decency and propriety
have still maintained against dishonesty, and
the last state of the city would be worse than
it was before. In my next will (not propose
a plan, but) throw cut some suggestions for
getting plan which will satisfy the ends Of
JUSTICE.