Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1871-12-01

course they should not be recogniz d IN
less 1t shall be proved that their proceed
we're applied to building our railroads
The fifth GLASS stand on the am footin
as the second, but they were sold, proba
bly, alta lower average price.
The bonds of the sixth GLASS were sold
nearly all of them, at ruinous rates-man'
bringing only from ten to thirty cents il
currency. Very many were sold under cir
cum tances which ought to have put pru
dent men IN their euard-sold IL a reckless
and gambilcg manEer, 50 that it as plain
TO the mcSt un~ar. that the agent of Iht
company to which they were ;s.ued wa.
not acting with fidelity to the Interests o
bis ipal-besides many were disposed
Of alter the General Assembly, by the ac
OF January, 1870 gave notice TO tlle woriG
that they had ordered the r.turn Of saiC
bonds, and that future s. .Ies of them would
be .lYalld-ard lastly, large number, &C
corClng to report made by q committee
OF he House Of ReE rrsentative-, were is
sptd without the certificate r,qairel b,
kw.
TIE seventh clas', N, # opinion, the
-tIte catnnt lece gn]ze, but ii shH OwHt
any property ruIcha, ed with the pIOaet dh
OF ihC Sc bonds such property might be
anrreLd deT' to bona .1tde puroba. ers Of esld
| bonds before their conetitutiouality was
qqestIo oued-f1rthfr than this the Cereal
assembly, III my opinion, cannot GO.
In considering the important and mos
! difficult problem OF the public debt, the
| following quest tICus resent tIe mseives
Is. " hat IS tie aciua amount for
which tie State III equity and good L.
acit noe is liable {?
24d. This amount being ascer:ainei,
are the people Of the State able to pay the
annual interest On 'be same, regularly and
promptly ?
3td. If theoretically able, are they in
thu II present condition Of evsrty and de-
preston willing to ubmit to the sacrifices
required
4sh. Sup osing ;has the people are
either not able or not willing t. pay the
interest on the public debt for which they
are Justly Liable. what SHALL be done :?
Shall we do nothing, or endeavor 20 effect
an LcnoTabie settlement with the public
red!tO-s
With regard 10 the first question, az to
the actual amount for whicn the State Is
Justly liable; in my judgment this cannot
be ascertained without investigation by
able fnaIciers and business men-men
trained TO weie III evidence and of discern
nent sufficient to detect fraud.
AS to the second question I remark
that the report OF the auditor shows that
the people of the state ere In such state
If depression that the total valuation Of
real and personal property will not exceed
Sl2l. 600, 900 90. The immense natural
resources If the Slate are admitted, and ii
properly developed the taxation necessary
10 pay the Interest on much larger debt
would bo a light burden. The low valua-
ton above stated shows that the annual
profits from this property is small. To
pay this interest and support the Stat and
county government, as we'll ns 10 provide
for the education Of our children, to say
nothing Of 'he payment of old debts Ow-
lug by counties and towns, which in many
instances IS being enforced by the courts,
will be such large percentage of the in
come Of cur people, that I am forced, re-
luctantiy, to conclude that they cnnnct
bear the necessary taxation without being
deprived Of their property, and in some
cases Of even the neee Ssaries of life.
If am correct in suppoaing that the
people cPnnot now shoulder this taxation.
1t Is unnecessary to inquire into the third
question, as to their willingness to do SO.
Our people are generally honest. Repudi-
alton directly is far from their thoughts.
Any such action will be in the last degree
painful and revolving to them. Their evi-
IL Mt unwitlingnes5 at this time, arise, from
their belief that they are anable to pay.
Whether right or wrong in this opinion,
they are honestly determined, think, on
this question. If l am correct in Judging
the public mind, theGthe public creditor
has no means of enforcing the satisfaction
of his debt by law. The State cannot be
sued by him; but even if it were other wise,
all legal process against large communities,
unanimous In resisting, would be vain.
The experience of creditors of single coun
ties in the northwest and elsewhere, shows
that it is difficult and costly to recover sat
i5factiOn out of single county in a State.
II me n n q nd
threatened with the same exactions, sach
recovery will be utterly impracticable. Off
GERS could not be found to enforce the pro
cess Of the courts. and even if enforced,
the rec very would be valueless Not only
III America, but in despotic countries, the
settled wW Of Ehe people will always prevail
against the theories aud te3hnicalities OF
law, however supported by rrecedent-just
as III the late war We found the courts al
tional. yet the people, through the legisla-
ture, in defiance of the courts, managed to
stay the collection OF debtP.
The only remedy which the public cred
itor san possibly make available, rs to the
legality Of which 1 express no opinion, is
the enforcement, through the conrts, Of
the provisions of such charters o. tho va
rious railroad companies in which the
State owns stock, as subject the stock held
by the State, and all dividends thereon, to
the payment of the principal and interest
of the bonds issued for the benefit OF such
companies. La the case of the North Car
olina railroad company, the Circuit Court
of the United States for the district OF
North Carolina, has already decided to
snbject the dividends declared by the
company on tho stock belonging 20 the
State, to the payment of interest on the
bonds Of the State issueI for the benefit OF
that corporation. Il is said TO be in con
temptation to ask the Court to order a sale
of stock held by the State sufficient to re-
imburse to the bondholders the dividends
heretofore paid iato the public treasnry.-
sembly whether il is not proper to order a
sale of ell the stocks owned by the State,
to be paid for in the securities for which
such stocks were originally pledged. Such
g course would reduce the debt OF the
State to large extent, and seems to be
demanded by the terms of the contract
with the public creditor.