The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1870-12-10
E9qehgxn Cxyzlisa

Geenees ==sss required, tho control OF its
SState affairs should have, fallen into the
} naands 1ad OF mere political adventnrers.
inefe was time when it was q sufficient
guarantee OF Southern State obligation
tnat it was backed by Southern men
Or anhexible honor and conspicuous in
tegrlty;: At present, there is scarcely
state In the South whose debts have
this sort of backing. For the last Ave
years. the finances Of ahe several States
nave been controlled by men who have
acquired position through the political
vloissltudes consequent upon the war.
With no experience in statesmanship or
finance, and no record but that of ad
venturers. these men have undertaken
20 re:adJust the revenues and debts of
the States.
:, we know what we say when VIC affirm
that the main object with thes. raw
Hnanciers has not been the good credit
Of the' State, but the manipulation of
the finances 80 as to produce the largest
possible gains out of speculation. Their
schemes have been, in most cases,
hetdhed in Wall street banking houses;
ana the Legislators, Governors, and off.
clqis have been paid tools for carrying
out the plans of shrewd bankers. The
main point aimed at was to produce the
widest possible fluctuations in the prices
OF the State bonds, irrespective of the
interest OF the State, the party to be
mnlked" being the innocent public.
MOST or the States have found it ne
cessary to issue new obligations to pro-
unpaid interest. These new issues have
in most cases been put out by secret
sale on the market, and in amounts
known only to the negotiator and the
cllque. In anticipation of the issue, the
Parties to the secret would sell on time
large amounts of the State securities,
and 80 soon as the new bonds had been
marketed, the fact wonld be announced,
With tho result of o heavy fall in the
market value of the obligations, afford
ing the "ring" speculators an opportu-
nifty Tor covering their previous largo
sales. In other instances, O legislative
ring" has authorized large issues of
ponds to railroad schemes for which
there was no necessity arising out of the
commerce of the State. These loans
had the double speculative advantage of
involving large contracts for building
the roads and of yielding profit on the
manipulation of the bond market, the
gains on both operations falling into the
hands OF the clique. In other Instances,
the political speoulators have sought
Illicit gains through Fictitious expedi-
ents for stimulating the credit of the
State. In these cases, they would frat
OF all buy through New York capitalists
large amounts of the obligations, and
then augment the taxes to retire unex-
pectedly conaiderable amount of debt.
ana, as still further expedient, compel
certain corporations doing business with
In the State to hold considerable
nmonnt OF the State obligations, which
the corporations had to buy from the
clique.
TO our certain knowledge, State of
hclals have contriyed to make large pro.
its directly through commissions paid
by the bankers negotiating loans for the
state. We know of instances where
finance officers have boldly proposed, in
letters to New York bankers, to give
large commissions on the sale of securi-
ties, provided the allowance should be
divided with them. And equally posi-
BILE would it be to cite instances in which
q Governor or Comptroller have deli
oerately involved the State in advances
upon secret issues of obligations. the
effect of which could only be to embar-
rass the finances and weaken the credit
of the Government.
We allude to this dis ,rcditable mn.
nagement OF State finances Mt the South
for no other purpose than to promote
public Investigation, and to redeem the
credit OF the Southern Governments
from tne faithless hands into which it
has fallen. A knowledge of these abuses
ought to suffice for their overthrow and
for the banishment of political speonla-
tors from public position. There is but
one means of restoring the credit of the
Southern States, viz: the restoration of
unlmpeachable Southern citizens of the
old standard to representative and official
positions. Men of weulth and ability
and character cannot afford to stand sui
lenly by and witness the degradation of
their State by interlopers and adventur-
ers. They have an interest in their sec
tlon which the new element have not and
cannot have; and it becomes them to ns-
sert their claim to the actual government
OF their States. When Southern honor
and siatesmanship are again infused into
the local governments, we shall witness
vast and permanent improvement iu
Southern credit, but not before.
NeD York Daily BuActin.