Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1871-01-20

600, 600 of taxable property in the State.
according to the last assessment. returns. :
this IS more than the people can pay lie
interest on this sum 10 81 900. OO0. TIE
people are not able to meet the hslSof tHls
sum md provide for the le1penses of
ST ate government with The necessary con-
comitants of an Asylum, Common Schools
University, &c Il is idle to deny or ig@
more the fact. that the people are not able
to pay this debt. or the Interest thereOt:T
It cannot be controverted,i thai under
baneful legislation the resources of the
State have not materially increased since
1866. More than ten persons have Within
that period emigrated from North Carolina,
carving capital with them. for every one
who hes come lnO the State to hnalIy
settle. The prospect of future develop
ment is, therefore, unpromising. However
this progress may be IN the future, II VIII
scarcely equal the accumulatlDg inter
est on the old debt. This debt was based
on the taxable property in the State be-
| fore the war, and was about $40, 200. 900.
or one half IFS present amount, and was
contracted principally for internal i'm,
provemelts The G and malignant re-
suits of the war destroyed at least three
ffths of the wealth of the people of North
| Caroline, while their public debt has
base largely upon slave property, which,
although not involved in the issues OF the
late struggle as the North proclaimed. was
swept away with all bank stocks, bonds
and much of the debts due. with the de-
probation Of lands and other property,
making our eople poor indeed. With
property before the war estimated at over
S4O0, 900, 900, the State debt was $40. OOO.-
900. Now we have O debt of $40, OOO, 900,
IF n
the impoverished condition of people,
robbed of nearly two-thirds of their es-
tatas. how is this debt to be treated ? The
very parties who hold the large majority of
the debt deprived us Of the very means
npon which it was in a great degree based.
and forced us to repudiate our own debts.
Many States and nations have heretofore
repudiated their Obligations after great
wars and other calamities. Our ancestors
did this. after the Colonies had won their
independence of the mother country-slm-
ply because they were not able to pay their
debts Hence the worthless Proclama-
ton Money, after the Revolution
Yet there is a moral as we'll as legal OBJ
LEGATION in ali valid contracts, which
creditor cannot ignore. To a reasonable
extent CT his means. he must respond to
his creditors. On this principle thousands
! OF our poople have compromised and set
ten, twenty and forty cents Oh the dollar.
This principle is recognized as morally
right the world over, even where parties
have Wilfully and wIckedly lost their es-
tates-as illustrated by the bankrupt loss
es Of all civilized countries; more especial
iy does the principle apply where great
national calamities befall communities;
and still stronger is the case where 1ndl.
viduals and States have been robbed aud
plnndered of their estates, under pretext
| dieavowed at the begin ning of the late
struggle. Recognizing this principle, Eng
land, one of the proudest nations of earth
and Of the highest commercial and tinan-
cial credit, reduced her immense debt and
rate Of interest, after an exhaustlng war OF
her own seeking. Hence the per cent
consols, the great national security OF Eng
| land and regarded the safest investment
in the financial world. Within twenty-five
years. Spain compromised or consolidated
| her national debt by giving new bonds or
obligations for one-third the amount of
the Old and pledging the faith of the ma
ton to pay the same, aud all the creditors
accepted the terms. So have many other
States and Nations acted for the last three
centuries. The principle is we'll settled
among all civilized people, that certain
causes beyond our control relieve US from
all, or portion. of our former valid OBJ
| legations.
North Carolina can still pay por-
ton of her honest debt, nOtwlthssand-
ing mauy of her citizens denied III
the Court of Claims OF the Federal
Government all their rights. and not
withstan:ing the Federal Government
may repudiate her debts as we'll as
ours. Now in conformity to these princi
piles, let the Sta'e pass law authorizing
the Public Treasurer to issue Il new bond al
80 or 40 cents on the 100 for every old
bond brought and delivered him. and
pledge the faith and resources of the State
to the prompt payment of the same. and
Ievying a tax at the same time to pay the
interest of the new bonds so issued The
creditors will come in and take the new
bonds, for they can do no better. The
old bonds are now selling at 40 on the ice
ex-coupons The first year not more than
one, half may accept the terms, but they
will ultimately all accept them. Thus the
debt of the State can be reduced to 81, 600,
900 or So, 600, 900. The annual tax to meet
this would be about $45O,00O. This is as
much as the people in their condition can
bear. A greater tax for interests, besides
the other expenses of the State, will drive
off more population than will migrate to
the State, aud thus retard her progress
Probably not more than half the amount
of the old debt would be consolidated the
first twelve months. Then about $225, 00(
of tax ton would meet the accrning inter
est thereon. In the meantime the Legis-
Iature Of 1871 and IL could authorize the
sale of all the public works OF North Caro-
lima, payable in the new or consolidated
bonds Of the State at pur. AS this deb
was contracted for these public works
there is not only great propriety. but {
moral obligation to apply the proceeds tx
the payment of this debt. The proceed
of tie sale Of the States interest thus ap
Piled would reduce her debt to three o.
four millions of dollars. This would bring
the public debt within her control, pu
her bonds to par and fully restore thu
credit of the State. That the true inter
ests of the State require the sale of he
railroad and canal interests at tn,
proper time is beyond controversy.
, In the first place when she re-arranges hei
public debt, she needs the proceeds t.
!, pay it off. IN the second place they ar,