Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1872-01-26
From the Neto York Daily Bulletin.
The Credit OF Southern Bonds.


to make provision for the payment of the
January interest on their bonded debts, an1s
the refusal of them (Georgia) to pay the in.
terest on bonds issued since 1868 without
ABSOLUTE proof of their bona .tfde character,
brings the whole question Of the social, in.
dastrial aud political condition of the South
once more before the attention of the whole
American people The political features will,
OF course, be only considered by this Journal
so far as they necessarily affect material or
business interests.
SO far it appears that the States of North
and South Carolina, Tennessee, Florida and
Virginia, make no provision whatever for the
payment of their interest Alabama, Arkan.
sas, Louisiana and Georgia provide for only
portion OF their interest, while Texas and
West Virginia are in the fortunate position
of having no debts.
While this partial reputation of these
debts by 30 many States which were formerly
distinguished for their high credit and prompt
discharge of all their obligations, is a matter
of deep regret as we'll as serious embarrass.
lAent to holders of bonds, justice and candor
compel the admission that the South is euti-
tied to some forbearance and lenency ia viex
OF the facts OF the case. AT any rate, New
Workers who are still smarting under tho
frauds of the ring politicians, and who even
threaten to dispute ehe legality Of some of
the more recently issued city bouds, shout
be the last to censurc too severely tho conduit
Of States which were, and are still, compelle,'
to boar the extOrtions of the most utterly cor.
rupt rulers thut ever reduced people to
bankruptcy and ruin Soule of the Southern
States, as South Curolina, for example, have
been so reduced and exhausted by the ex.
travagance of their respective Legislatures
and officials that it il u matter of necessity
rather than choice to ask an extension uf time
from their creditors. That all the States
will ultimately redeem their just debts we
have every reason to believe.
The case Of Georgia may be taken as af
fording fair illustration of the general posi-.
ton of the South. That State proposes to
pay interest on the acknowledged bonds is
sued previously to 1868, to the amount Of
S5,5l4,5QO. The interest on the bonds is !
sued since that date, amounting, it is suppos
ed. to about $50, 900 600, is withheld pend,
ing preliminary investigation into the valid
ty of their issue and proof that the State re-.
ceived fair actual consideration for them
by a law passed. by the Legislature ever the
Governors veto, holders of bonds dated since
1868 are required to report them for examine
tion by special commission, on or before the
lst of Aluy next. The holders are ex xpected to
show whether they were fairly or fraudulent
iy acquired, and tho circumstances of their
transfer are to be inquired into and reported
to the Legislature, which will then take action
on the subject Of course this investigation
temporarily impairs the value of all the Geor,
gia bonds issued since 1868, and may cause
great loss to innocent holders. But there is
TOO much reason to suppose that many Of
these bonds we're issued frauduently by Gov
ernor Bullock, and even the exact amount for
which the State is held liable cannot be ac.
curutcly asccrtaiued. Under these circum
stances, the delay in the payment of the in
terest pending the results Of thc legislative
investigation must be regarded as presenting
some mitigating points.
In the other States it is nearly the same
In South Carolina there is an apparent over
issue Of State bonds by the Governor and
State officials of S6,314,000. and grave sus-
pioions OF still further frauds. In North
Carolina, which is also unable to meet her
obligations, there has been tho most glaring
frauds in the administration of the State
funds, leading to the impeachment and remov.
al Of Governor Holder for mal-administration.
Louisiana will fall $2,OOO,0OO short Of funds
to meet hor matured debt and interest due,
January 1st Virginia has been obliged to
fund interest on interest, and the most favor.
able estimates show deficiency of the S261,-
1876 of the funds required to meet the July
interest.
There can he no difficulty in tracing the
unfavorable financial condition Of nearly all
the Southern States to the wastefui pr,dgali.
ty of officials VIII, had no permanent interest
in the States which they represented. no sym.
pathy with the material welfare Of the inhab
itants, and who we're, for tho most part main.
tainea in power contrary to the wishes of tho
majority. Whatever difference of opinion
may prevail as to the results in political
point of view, there can be no question of the
disastrous effects on the business interests Of
the South and Of the entire country
- The inhabitants Of Alaace and I.or.
raine refuse to become Germanized in feel.
ing, aud although they are forced to submit
to German rule, they omit no oocasion for
manifesting to their rulers their dislike Of
the new order Of things Frequent murders
of German soldiers tnke plaoo. and when these
occur tho whole population assist in conceal
ing tho perpetrators from the reach of law.
A more significant evidence of the state of
popular feeling is given by u correspondent of
the ST. Louis Republican. who. undor date Of
December 14th, writes from Berlin that at
that time there was carpenter work to the
value Of 100000 thaiers 10 be done for the
"a - .k. Al