New-York tribune., 1872-02-20
FINANCES OF THE SOUTH.
REPORT or THE CONGRESS SUBCOMMITTEE.


statos contains report from tho subcommittee on tnf
Debts and Election Laws Of those states, which mas uS
been presented TO Congress. The report OF INC sun
Committee which was written by the hon' Jop' r.. o'c
venson OF Ohio, is able and exhaustive docuneni ~
gives the amount OF indebtedness OF each " 'n'
eleven lately lnsurrectonary States at tho Degnins
OF tho Rebellion at the close In 1870 and In 1872 IheSe
divisions OF time will enable any one familiar WIN tn'
history Of these States trace the responsibility TOT ''
indebtedness In almost every instance. In addlon "
this tho sub Committee give the assessed value OF the
real and personal property In each S'ate' as'o'S anu
other data which fair calculation a. 10 iu'"re
financial prospects may DO made. Following arc OK
tracts frOm.tne report:
VIRGINIA.
The reconstructed State Government was inaueurated
I'm 1870 The Rebel debt had been repudaod On Janu-
ary tho old debt was si5S72Ts Increase since 1863
Ssll 4G2. Since 1860 s39}63i The valuation OF prop
erty in 1870 was t65l399l7. Increase In valuation OF
property since 1866, ss5o95s Tho true value nv the
census was Si0o5SSi33 Increase since 1861 ssgOVtz
Value Of agricultural products, estimated soD1v, Oi
the Gin day December s1 the debt was -.
Decrease since 1870 OF S3J225 ~ ihe DaanCo % ~ cht
sury 81 ODO which, when applied Will reduce lhe ueD'
to $40 6sO59 2 decrease since 1870 OF s2i92z5o ~,
The Governor, in his message OF DecemOcr 3, say
The Treasurer reports the receipts from all sources t
last fiscal year at s5 a. and the expenses ior a
purposes at 1885, 1862 03shOwng balance OF TcctIpt-
over expenses Of sg299 SO. Tue Treasurer reports
balance on hand first instant, TO the credit OF me
Commonwealth OF sj2l64 II, and TINS sum VIII VII proDa p
bly, be ncreased 10000; and If tho pastdue taAS
from Gorp9gat9ns should be P9d a h Is79 VIII DC III
Deduct from this balance sGOo00 for interest ann
Ply the remainder OG oha e aeD st3te by tho
Governor, and the debt VIII be iurther reduced 10 20
s7541 n, subject 10 further deductions IRON CLAIMS
to be coected The cost OF conducting the state Gov
ernment the year ending 1869 was sSl9oJi o Iof
the year 1870. il,5Oj65o Cs.
NORTH CAROLINA.
The reconstructed government was naugIrated In
1868 The Rebel debt had been repudated; the recoG
nized debt and liabilities s2OG]9,4j; prospective
liabilities s3J7lOOO; total s2i2O)iij increase since
1863 s23o9i5; increase since 1862 s0200O0 loss or
assets s1i 2l053 total, s2l47953 AT the end OF thc
fiscal year 1871 debt and liabilities were s94S8 5
Increase since 1863 Sl0Gs0l9 -. Part or TINS Increase
is interest unpaid; but It Is mainly from ad 20 rdrOads
granted by the Convention OF 1868 ana inc IgsaIure oi
is6s and 1869 The bonds issued in October 1863
and April 1869. The acts were generaly approSeu anu
passed by OF members OF both Pdtcs ihe o9JecI
was to extend ana complete general railroad system
and the popular belief was that Immigration ana cose
quent Development would JUSTIFY the anu m
the State against loss These expectations nave
Imngr9ijon was checked and prevented Part Of tho
bonds were sold at sacrdce and the proceeds msap-
piled by tue officers OF the companies Among the men
managing the railroads and converting tho proceeds
were members of both political parties. Both parties
have condemned their conduct ana joined IN measures 10
nunsh them TO prevent further loss and retrieve what
has been incurred These have resulted in the
her transfer by companies save as the roads com
pleed sections and in the indictment Of several OF
tho men believed to be most guilty ot the frauds
TENNESSEE
The Rebel debt having been rcpu1ated ana the State
having extended additional aid to railroads the debt
and liabilities WERE on the lst OF January, 1871, s3S3le,
e O Since then the amount has been reduced by pay
ments from railroad companies which have paid their
debts TO tho State in state securities and the Controller
In his report for 1911. makes exhibit showing tho
Ths exhibit Shows tho debt and liabilities upon which
the state pays interest TO be S3o,Gs5,l8 81. lr We
add the amount due on bonds and coupons or roads
which pay: 49,. 49,. ~
Bonds s2I590S ooo 90 90
Interest ............'...-.''..''''''' l'O''E" W
Total 800 %
and deduct balance 81 200 o we have 60; in
of debt ana liabilities, excluding beoel deOt
SAILED g. II deduct bonds and interest which are
no burden the state, because the railroad compines
comply with their contracts sl302 320 and the estimated
value OF debts OF other roads so9S0565 49, the bal
The Increase debt since the caused by grant
ing aid to TINS wa, tsoggn gSandd to ares
amount to mary companies, and IL was SnargeG tne @
part OF the funds were nsaDpropated Ihese charges
involved officers Of the roads, members OF .DVh POod
parties.
sOUTH CAROLINA
In 1865 the old debt S65sii l0 debt contracted iu
rebellion s2.8539s2 20 the contingent liabilities. si9so,-
$50 the prospective liabilities, S0OO)O Total debt and
Liabilities ;5S)29iG Increase since 1860. s3sG5Sjs IL
The treasury empty Tho loss of balance. 100000 Of
surplus revenue sl0j422 OF bank stock and other assets
sgOOoOoo Total s7l51.f22 o. Annual income from bank
worn and almost without rolling stock The assessment
of property in 1866 S9OSa56 Loss in value Of prop
erty since 1862 Sls126g2 Total loss since 1860 exeu-
siye of slaves, Sis82H97O %.
Tho reconstructed government was inauglrated in
1888 The Rebel debt lad been rcpudiaed. The recOg
ncSnt liabilities were $3.50 55O prospective liabilities,
s9,Ss'9sS SSS.9Gy' g. AO'"' ''''''''''' 'N
Snc eb Dropcr in 1871 Is controvered The documents
before us tend to establish that the amount outstanding
on the goth day Of December. lS5l was sl5,76s36 a.
h' Inn e5 aed to bO OO about S Tse Old ID bonded
debt outstanding in 1863 was sGi45l3O6 q. Bonds
financial agent amounting TO s?6AO0O Total
Sl59G5,)0s q. There bonds held as elnkine
fund SOOCO which bonds outstanding a..
This includes s3773 bonds held collateral for the
floating debt estimated at 100000 1t il claimed that
these hypohecated bonds should be deducted and the
floating debt added, which would make tho debt sl2ss6,
3O6 ~ Ii the State able to meet her obligations as
they mature could be reasonable objection to
hs deduction but II il admitted that these bonds
pledged on the street in NewiOrk City, at rs cents
the dollar to floating debt nearly equal to their
value at that rate that the credit Of the State is and has
long been depressed as TO place her bonds ut the
accustomed under authority OF law TO pledge her securi-
ties such rates; and that her bonds have been repeat
edly sacrificed for want OF means 20 redeem then Hence
we include these hypothocated bonds ia our estimate
Of the DEBT.
IL generally admitted that the Legislature has been
extrayugant and has made unnecessary and, in some
cases, corrupt appropriations some Of which have been
vetoed by the and defeated and Others passed
his And where extraordinary expenses were
necessary for the safety of the State supply
and ammunition to suppress violence advantage
has been taken by individuals to secure exor0ltant
Tee OF the Legislature to detect corruption followed by
charges, sustancdsby proofs that members OF the com
mitCe and connected with II, were more anxious
to make ale etmate profits to themselves than to per
form their duty. 1t Is charged ana IN evidence tlht
there has been corruption in the Legislature IN connec-
ton with acts cOnIeing extending corporate priyi-
eges and that bribery has prevailed To such an extent
that legislation has been controlled by band composed
OF members OF both political parties and Of both coors
commonly called the forty thieves" who would not
permit such to pass until they were satisfied
This legislation does not generally affect the state, but
in several the contingent liabilities were involved
i'm extending aid to railroads. changing tho terms OF
laws granting such aid. We have heard no complaint OF
This policy which that established before the war
but it is claimed and In evidence that there was
"a speculation III the stock Of the GroenVlllo
and Columbia Railroad similar to that IN the