, 1873-02-17


DEBTS OF THE SOUTHERN STATES,
When the rumor came from Washington, 4
few days since, that there would be an effort to
secure tho Introduction OF q bill guaranteeing
tho payment Of s125, ,o00, GOO dsbt& of tho Rout,-
orn States by tho United States aovornment, It
WAS regarded as too preposteroua to be entitled
to confederation. Later advices, however, con-
firm tho report. md show that the secret movo-
mont Of tho lobby has taken 4 definite shape In
circular, sotting forth tho plan Of tho proposed
Job, and giving como worry absurd reasons why
Congress should regard It with favor. This
organized raid upon tho Treasury Of
tho United States ia OF auoh gigantic
proportions and such unnttigatod au-
dacity that any serious contemplation Of its
success would not be thought Of, If IT vero not
that tho Developments Of Credit Mobilior
and other huge subsidy eohomes have taught
that everything is possible before Congress
which has money In 1t.
Tho proposition is, that the United States Coy
ernnent shall buy up the debts Of the Southern
s201 900 900, aud 1t il estimated that they may
bo absorbed by tho isaue Of e125,000,0 900 in
United States per cent bonds. Tho United
States Government Is asked to increase ita debt
to this modest amount, and to pay the interest
on 1t for twenty years. It ia generously
to pay back the interest to tho Government
after tho arat four yoAra at the ratio
Of per cent por annua, 80 Al to oqualize tho
interest account At the end Of twenty yoara. At
tho expiration OF this term Of years, the State
doVernments arc to reassume the obligation,
though there la no guarantee offered that they
will do so, or that they will DO In any condition
to relieve the United States Government OF tho
liability which It sTill have assumed. The pro-
moters Of the scheme doign to give thoir reaaons
why the United States Government ahould add
s125 5Q00, 600 to itB debt. They Say that tho
debts OF the Southern States have boon enor-
mously increased by recdoBs or criminal legiHla-
tion, which was tho result Of tho reconstruction
policy forced upon the South; that thoso
debta arc largely owing to citizens Of
the North, who arc probably dosignated
as particularly loyal and patriotic; that tho cx-
istonce OF these dobts Is prejudicial to tho Na-
tfons credit; and that the proporty-holders Of
the South arc now 80 crippled that it is imposal-
bic for them to reviyo their industries.
There arc just throo o1Rsaes Of people who arc
Interested in this new job for robbing the Treaa-
sury: !. The carpet-bag Governments OF tho
Southern States; 2. The bankers Of the North
who subscribed to these Southern bonds 1t low
figures; and 8. Tho politicians and lobbyista
who hope to DO we'll paid for their services II
they can secure the proposed Government as
south--ths property-ownors and workers.
have no interest in the scheme, as it's
contamination, 80 far from relieving
them in the least, would ultimately add to their
burdons. Tho csrpet"bag Governments are in-
terestod, because, without some euch assistance,
they will have run to the end Of their ropo.
They and their predecessors have exhausted the
credit OF tho Southern States In tho fraudulent
accumulation Of debts. Thoy have run 1t down
until they ind 1t impossible to negotiate bends
at any price. In this condition OF things, their
only hope for future steAlngs iH in the dispoal-
ton Of the present debt. The intoreat Of North
ern capitalists who have Invested in Southern
bonds is still creator. Many Of these bonds
wero purchased originally at as Low figure a.
20 per cont, and, in their present condition, It
Is not probable that even this much could be
obtained for thom at cash average. Il
they are worth ns much aa 20 per cent, how
ever, their aggregate value, On a baaia Of 92o1,-
00o, 900 in bonds. would DO S6a 900 900 In money.
II, In place Of the Southern Btates' honda, tho
United statos could be induced to issuo s1a5,-
oo0, 900 Of its own bonds worth par, there would
10 clear gain Of 600, 300 600 In tho transaction
over the present valuo. Out Of this pretty sum,
aooond edition Of Credit Mobilior could be
issued, with brilliant and high-eoundlng namaa
on the tltle-page. Tho profit Of more than sixty
million dollars in the proposed Job fully accounts
for tho interest OF tho third CLASS, consisting Of
tho lobby and ouch Congressman 10 It could
control. =.
That tho property-oVness and Taxpayers Of
the South should be opposed to the scheme ia
obYloua. Tho Government assumption Of their
present dobts would simply moan an imposition
of now debts, contracted for the purpose Of re-
nawod robbery. Certainly thoy hevo suffered
enough at THO hands Of tho cazpot-haggers.
They have been rendered supina and he|pleFs by
tho. wholesale pilfenug that haa already o.
CURED. They would be hopelcssly bankrupt'
would be sold out and driven away, it the rob-
bory should begin ali over again. It is true
enough that the people Of the South gould nat
protect themselves from tho ylllany which has
placed the burden Of these dobts upon them. It
IL alao true that tho United States Govern
mont, or certain reckless politicians temporarily
opresenting 1t, forced this villany upon them.