Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1872-08-17
W oRCES T E 3 D..
SATURDAY. AUGUST IL. 1879
southern state Debts, &c.

Scarcely any other topic can be named rela-
tive to which there has been so much deliberate
Justification as in regard 10 the accumulated in
debtedness of the southern states, since their
reconstruction The aim of this Justification is
10 have it believed that all these reconstructed
states have been terribly swindled and robbed
by "carpetbaggers;" and that diligent conjur-
ing with this term can transform the charge
against "carpet-baggers" into a charge against
the national administration, which, of course, is
one of the most inscriptions devices of parti-
zan malignity Those who observe and think
can see its character IN the process by which it
is constructed. Its contrivers begin by stating
that, in 1860 or before the war, the indebtedness
of a given southern state was a certain specified
sum, and that in 1871 it was much larger
sum; and then, pursuing their purpose, they
attribute the whole increase TO the "carpet-bag
gers" or to the new state governments, most of
which were inaugurated in 1868. This assumes,
of course, that the state contracted no debt,
suffered no losses, and had no interruption Of
financial prosperity, during thewar.
Take the state of Virginia for example. In
1860, this state had an Indebtedness amounting
10 s81 93S 533; its responsibility for trust funds
was 81 1873 APO; total SSS,771 1888. In 1865, the
regular state debt had grown to be Sal ,061 ,3ls,
and, in addition to this, there was debt CON
tracted on account of the rebellion amounting
to 81, 5O5,724 The finances of the state had,
also, been reduced to very bad condition by
the disappearance of the trust fund no longer
included in the debt, and by the total loss of
valuable assets held in 1860, amounting 10 s12,-
452 1927. All this was due directly TO the re-
bellion, whose devastating influence greatly re-
duced the value of property in the state. The
large increase of Indebtedness, during the re-
bellion, arose in part from the accumulation of
unpaid interest In 1872, the debt contracted
in and of the rebellion had been repudiated, and
the whole amount of the regular debt Of the
state was s4S,6SO,542.
Take the state of North Carolina. In 1860,
the Indebtedness of this state, including all lia-
bities, was S1S,97s, sos During the war, this
debt, including that contracted in aid of the re-
bellion, grew to be SIS, 0s7 1876; and valuable
assets amounting to S11 ,249, 5Sl, disappeared
The rebel portion of the debt, amounting TO
SIS, i'll ,SS6, was repudiated, in 1868, when the
reconstructed state government went into oper-
GLIDING all liabilities. The state had gone be-
hind hand, financially; TO the extent of s21,-
1851, counting increase of debt and loss of
assets, and not counting the debt on rebel ac-
count, which would make the amount nearly
40 900 900 Between 1868 and 1872, the debt and
irrespective liabilities" of the state were in
creased to S84,SS7 ,464, partly by the accumula-
ton of unpaid interest, and partly by loaning
the credit of the state TO railroads, the loans
being secured by liens on the roads. These
loans in aid of railroads were effected by the
influence of old citizens of the state, of all par
ties, who believed the roads would do much to
restore prosperity.
The whole increase of Indebtedness, in the
eleven so-caed Confederate" states, during the
war, including debt in aid of rebellion, was
500 ,S99,312, and more, probably, for portion
of the rebel debt not being accurately known, is
left out of the estimate. To this must be added
the loss by disappearance of assets, which
amounted to $157 All ,s1S. The war brought
also great loss of property in these states, and
left the people in condition which made it diff
fcult to raise money for necessary public ex-
penses, without borrowing. 1t will be remem-
bered thar the government began to feed and
clothe the poorer people of the south, white and
black, even before the war ended. In the states
where such losses had been suffered, it could
hardly be expected that some increase of in
debtedness would not follow the beginning Of
attempts TO restore order aud prosperity. And
yet the increase of debt, under the reconstruct
ed state governments, has arisen mostly from
of i Goo
loaning the credit of the states in aid OF rail-
roads and other internal improvements That
there has been corrupt management, in some
cases, is clear enough; but it is just as clear
that this has been the exception and not the
rule.
In the official report from which our figures
are taken, it is stated that state officers, in
few cases, sought to embarrass the investiga-
ton. The report says: Ex-Governor Bullock,
of Georgia, sent a letter more remarkable for
argument against our proceedings than for the
facts furnished" Governor Reed, of Florida,
protested and declined to answer; and nothing
satisfactory could be obtained from the officials
Of South Carolina. In these states, there APP
pears to have been corrupt or very questionable
management. In South Carolina, some of the
stealing has been done in connection with the
purchase of lands by the state, to be sold again
in small parcels for homesteads; but men of all
parties participated in these frauds, and their
chief contriyers seem 10 have been old ex-rebel
planters who had great estates and desired to
sell lands much above the market prices Hav-
ing this desire, they brbed state officials and
members of the Legislature, to secure their OBJ
Ject. Gen. NJ. G. Butler, who had been demo-
cratic candidate for lieutenant governor, said in
his testimony before the committee, that; if he
had land to sell and could sell it by buying a
state senator for $500" he would do it. DIR. r.
NJ. Smith, democratic member of the egisa-
ture, claimed, in his testimony, that it was no
more wrong ito bride public officer than to
purchase mule" Such men as these had done
more than anybody else to promote the land
frauds Gov. Seott's hands are not at all clean, if
half the charges against him are true. AT any
rate, he and his ring are repudiated by the re-
publican party; and that party, stimulated by
the immediate influence Of the president the
leading democratic paper at Charleston tells us =,
is moving to secure reform; and democrats who
do not believe in bribery, look to their certain
success Tor great improvement in state affairs.
So says the Charleston paper to which we have
referred.
1t is estimated that the debt Of South Carolina
has been increased, since the war, from about
fifteen millions to nearly twenty-five and half
millions; but the report says "The debt proper
in 1871 is controyerted." 1t may be less than
the estimate. The debt OF Florida was 81 POI ).
900, in 1860; 81 SOS, s5G, after the war, not in
Guiding rebel debt; and 50 $50 ,O72, in 1872 But,
in addition 10 this, the credit Of the state has
been loaned or promised to railroads, to large
extent. Ia Georgia there has been much prom.
ising Of the states credit to railroads, on the
security Of first mortgages, this policy being
demanded by all parties. The regular state
debt, now Ss,6ls $50, has been increased about
two millions since the war. fhe corrupt man
agement charged is that Bullock, now ex-gov-
ernor Of the state, issued railroad bonds 10 the
amount Of S6,0OO,00O, without authority Of law,
or in advance Of what the law authorized !"
The matter Is now under investigation The
report we use suspects him Of frauds. Warinoib
Of Louisiana, has become notorious An parties
spurn him although some Of the democrats have
been disposed TO adopt and use him. IN tbe nros.
put canvass III was tho hous al i.:,..- - ..