Wilmington journal., 1873-07-04

70
In other words, while in Vermont
$40. 90, in Connecticut $33.4l, in Mas
sachusetts $40. Is, and in Rhode Island
sc, per head, is allowed for the
transaction of business, there is only
allowed in South Carolina $3.2 IN
Georgia S1.93, in Alabama $l.Sl and
in North Carolina S1.62! The average
Rhode islander finds $61. 56 in circula-
ton necessary to his business comfort,
but the average North Carolnian
must forsooth content himself with
S1.G2!
The best thirty days paper that can
be presented to our banks, amply Sc
cured by the best real estate, Will not
be discounted for less than one and
one-haif per cent. Indeed, real estate
in North Carolina is not regarded by
our banks as security for the prompt
return of National Currency.
To expect people to pay over three
percent. per annum upon their entire
real and personal property, productive
and unproductive, whose circulating
medium, with population of over
million Of souls, is only 81 ,544, ,42O, and
who pay one and half per cent. per
month for money, not because the
profits of their business are large, but
because the volume Of the currency IS
inadcuuate to the transaction OF their
business or to expect their Governor,
even with the aid of the banks, to
raise the $9,OOO,OOO to buy up the
bonds, is to expect what is impossible.
But, independent of our inability to
pay, our people are fixed in the notion
that there is no obligation to pay,
either principal or interest of the
Special Tax bonds, so-called, and our
candid opinion is that these bonds
never will be paid unless it be literally
at the point of the bayonet.
It is proper, however, to remark
| that the bonds issued under the fund
ing acts of 1866 and 1868, to which
you especially refer, representing, as
! they do, interest due on the old debt,
| are properly to be classed as part OF
the old debt rather than with the new
! debt. But lest you may take over
| much comfort from this, it is neces-
sary to say that, in our opinion, moth
| inc will be done with the old debt
until the Special Tax bonds shall have
been finally disposed of.
| Since the receipt of your letter
| meeting Of North Carolina bondhoid-
ers has been held ia New York City
preliminary to bringing suit ia the
Federal Courts to compel the appro-
priation of certain monies, alleged in
contemplation of law to be in the State
| Treasury, to the payment of the in
| terast 1ue on said bonds. These
monies W. er1 1.ised by special taxation
to meet the intere~. Gp the Special
Tax bonds and paid into dis State
Treasury, and after the repeal by the
Legislature of the laws authorizing
the issue of the Special Tax bonds,
were orGele1 to be appropriated tc
other purposes, .Gnz5 il gas accordingly
50 done. These Special Fax bonds
were ISSUED IN aid Of certain Corpora
tions, not municipal, and the Consti-
tuition expressly reserves So the Legis-
iature the right to alter or fepeal al
general laws and special acts regnlat-
! ing corporations not municipal.
! a!:c G.nstitution of the State con-
! tains ccrtai,. clauses declaring the
pt,i,!i.; debt shall lieNe- 10 questioned,
but shall lie held inviolaipe !tx5e., aa,d re-
| qrtiring the Legislature, from ti4le 20
time, by adequate taxation n..d appfo-
pirate legislation to meet promptly tie
interest, and also, in 1880, to begin
| provision for q sinking fund to pay the
principal. IA amendment is now
pending before the people Of the State
proposing to strike these CLAUSES from
I the Constitution, and us both political
parties advocate is adoption, it will
doubtless be ratified in August, when
| the election takes place. This will
| leaso the Legislature master OF the
situario-..
II is Doubtless Il as2tlcipate, II not
to prevent, the effeot of tti,,s 4ction by
the people OF North Carolina that the
suits, now Threatened, viii be. brought
IN the Federal Courts. The probable
atteIn pt to compel the recognition OF
| these bonds by our Legislature
| through .tAe E2achinery of Federal
Courts IS llEet nov y. el':tz generally dis
cussed il; the press OF cur 4 ese and
so far as We eas2 0ather FROM o4r ex-
changes, the feeling is ana ANONYMOUSLY IN
favor pt resisting to the last extremity
the pavmert cf either principal Or in
teg5a&t.
W. r.oliaye we have now answered
all The lliess.Ll,, and suggestions made
i'll your letter, aug r.9 have done SO
frankly and not from any 1Arrtisan
standpoint, having preferred to con-
tent ourselves with merely showing
you :nllisputable effects rather than
to touch upon what some deem the
debatable groundsqS their causes.
1t is due to our people, f,,2T~ever, to
sag that they utterly disclaim any Oh
Hgatiop ~ honor to perform the con-
tracts Of tne h&rpies who preyed upon
their vitals, and .tha-& they think if there.
be any seeming obligation I'D law so to
DO, as it was created by brute force,
so must it be discharged by brute
force.
Very respectfully,
ENGELHARD & SAUNDERS.
Editorial courtesy in Kentucky is