The home journal. (Winchester, Tenn.) 1858-188?, 1873-02-27
The Southern Loan Project.

There is one feature in the proposed
bill providing that the Federal Gov
crnment lend its credit to the South
ern States which makes it smack
strongly ola gigantic and dishonor,
able job. The debts Of the States in
in the proposition amount to
1921 900 1000. and the advocates of the
are en~deavo-ing to induce the
General Government TO absorb this
amount by issuing Sl25,000,OO0 worth
Of its own bonds at par, bearing four
per cent. interest, with the understand
ing that at the expiration Of four years
the States referred TO shall pay the
Government six per cent, interest on
those bonds for twenty years, at the
expiration Of which time they will be
required 20 pay of the entire principal
Now, the fact is that the average mar
ket value Of the bonds issued by the
carpet-bag governments of the South
stands at only twenty per cent. They
can all be bought at this rate, and their
gloss value would therefore be only
Sj8, 200 900. If the General Govern
mcnt wishes to assume this indebted
ness for the period Of twenty years,
therefore, it can procure the bonds Al
this sum, or at 500, 100000 less than
the jobbers propose it shall give for
them. The argument used by the IoR
hyists that, as the debt was imposed
upon the Southern States by the car
pet-baggcrs acting under the recon
structIon measures, it is therefore the
duty Of the General Government to
mitigate the wrong, is mere sophistry
and sham for, if the Federal Govern
mcnt purchase these bonds at then
market value, the relief to the South
cru States will be more complete hl
S6G, 800 900 than if the sum Of Sl25,,
100000 be pald for them. 10 put the
case in a nutshell. the proposition is
simply that the General Government
guarantee to the holders of these bond.
u profit Of 1866, 500, 900.
Who are the parties that will thus
be benefited? Are they really the
friends OF the South, or are they Wall.
street spectators and sympathizer,
with the carpet baggers and thieves o
that scutionp
1t is known that 4 large number 0
the bonds alluded to were issued con
trary 10 law, and the States are neither
morally nor legally bound for them
The plundcrers Who went South frs
plunged the States which they got con.
!r0l OF in debtas deep AS their consti
tutions allowed After stealing this
amount they rcsortcd to quirks anC
qulddities, and even issued many bond,
which were in paIpahle violation Of the
fundamental law that limited their au
tAority. IL is clear that the States
cursed by their control are neither
bound by law nor morals to pay tn,
bonds thus issued. Yet the carpet
baggers were able to negotiate then
among their sympaLhjzers in Wal
street and among their dcluded victim.
in London at from ten to fifteen cents
IN the dollar. These voluntary nc
complies or ignorant dupcs now APP
ply to the General Government to pur
chase these comparatively worthless
bonds at ahUuL foIN three per cent
when they can AS easily be o ,taincl at
twenty, which will afford them Il gros,
profit Of nearly seventy millions oI
dollars. In order to do this, we sup.
pose they are willing to distribute al
least one million Of dollars among
members of Congress where it will do
most good, and that we will have an.
other scandal o'crtopping Credit Mo.
biilcr.
Now, if the honorable gentlemen Of
Congress really wish to afford relief to
the South let them cmovc the unjust
barriers which prevent the most intel,
hgent citizens Of that section from
managing their local concerns, and let
the affairs of those States 90 once more
into the hands Of those who have the
greatest interest in their wise and faith.
iul exercise. Upright and learned
judges will then assume the seats now
occupied by such beastIy bloats as
Durell, the validity Of the hondS will
be passed upon, and what is justly ard
due will, in the course Of time,
be paid according to the letter Of the
bond This il thr only prortirol mazda