The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1872-01-18
The Credit of Southern Bonds.

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The failure of some of the Southern States
to make provision for the payment of the Jan
uary interest on their bonded debts, and the
refusal of one Of them (Georgia) to pay the
interest on bonds issued since 1865 without ab'
solute proof of their bona fde character, brings
the whole question of the social, industrial and
political condition of the South once more be-
fore the attention of the whole American peo-
ple. 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 a
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 so many States which were formerly dstin-
guished for their high credit and prompt dis
charge of all their obligations, is matter OF
deep regret as we'll as serious embarrassment
to holders of bonds, justice and candor compel
the admission that the South is entitled to some
forbearance and leniency in view of the facts
of the case. At any rate, New Workers who
are still smarting under the frauds of the ring
politicians, and who even threaten to dispute
the legality of some of the more recently Is
sued city bonds, should be the last to censure
too severely the conduct of States which were,
and are still, compelled to bear the extortions
of the most utterly corrupt rulers that ever
reduced people to bankruptcy and ruin.
Some of the Southern States, as South Caroli-
ma, for example, have been so reduced and ex-
hausted by the extravaganza of their respec-
tive Legislatures and officials that it IS mat
ter of necessity rather than choice to ask an
extension of 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 afford
ing q fair illustration of the general position
of the South. That State proposes to pay in
terest on the acknowledged bonds issued pre-
viously to 1868, to the amount of S5,514, 500.
The interest on the bonds issued since that
date, amounting, it is supposed, to about S60,-
100000, is withheld pending preliminary In,
restigation into the validity of their issue and
proof that the State received a fair actual con-
ssideraton for them. BY a law passed by the
Legislature over the Governors veto, holders
of bonds dated since 1868 are required to re-
port them for examination by special COM
mission, on or before the lst of May next
The holders are expected to show whether they
were fairly or fraudulently acquired, and the
circumstances of their transfer are to be in
ouired into and reported to the Legislature,
which will then take action on the subject
Of course this investigation temporarily i'm
pairs the value of all the Georgia bonds issued
since 1868, and may cause great loss to lnno-
cent holders. But there is too much reason to
suppose that many of these bonds were issued
fradulently by Governor Bullock, and even the
exact amount for which the State IS held liable
cannot be accurately ascertaincd. Under these
circumstances, the delay in the payment OF the
interest pending the results of the 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 ovcr-issue
of State bonds by the Governor and State OIL
cials of S6,314O00, and grave suspicious OF
still further frauds. In North Carolina, which
is also unable to meet her obligations, there
has been the most glaring frauds in the ad-
ministration of the State funds, leading to the
impeachment and removal of Governor Hol-
den for mal-administration. Louisiana will
fall s.. 900 900 short of funds to meet her ma
tured debt and interest due January lst. Vlr-
ginia has been obliged to fund interest on in
terest. and the most favorable estimates show a
deficiency of S261, 1855 of the funds required TO
meet the July interest:
There can be no difficulty in tracing the un-
favorable financial condition of nearly all the
Southern States to the wasteful prodigality OF
officials who had no permanent interest in the
States which they represented, no sympathy
with the material welfare of the inhabitants,
and who were, for the most part, maintained
in power contrary to the wishes of the majori-
ty. Whatever difference of opinion may pre-
vail 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.-Neao York Duly