, 1874-11-27

"-A4
The figures concerning the default Of Stato
i1ldebtclncas. which were published in this col
nmn yesterday morning, show that tue total in
Of which slG4 900 s In default. or tbis lattor
amount, $54, ia ,000 arc held aoroad.
or tho ton States In default, nino nre South
ssn States, namely: Alabama. Arkansas. Tiori-
5a Geo sa lcoa1sana MH4isstpni North caro.
pthar State III default iH Minnesota, which hua
1opudiated $2,225,oOoo Of hor railroad debt.
o,,, sono OF these have. begun tho ne.
Eotiations necessary for tho funding aud
of .1eBe and Homo other American bonds have
formed tho American Bank Funding and Datlk-
trg Association, l!mitod. Of London. This Aaso-
10 :;b,ion is supported by tho first capitalists Of
Bariug Drothers, Hoth.chd and Gilllot. Of Lon
don Hope, Of A1nBtoldam and Balomons, OF
london and Now York It's agents are in noeo-
tiation With The Governors OF all tho Southern
sIa. s.a.es tor the adoption Of plan for funding
Goyernors Of Alkanaas, MissiaBippi. Alabama.
South Carolina, North Carolina, mid Virginla, to
1nnd certain specified porLiona OF thoir public
y; aoht ~ bonds payable In London In gold colo.
11lcee propositions havo been accepted as aasisac-
tory, and the aovernors will recommend thoir
adoption by tho stato Legislatures. The Governor
o. ueorglh rejected the proposition, aud tue Lpg-
1s!aiure Of North Carolina is not expected 10
Governor Of Virginia and tho Company shows tic
general nature Of tho negotiations. tho British
Asasclation engages to rotlra tho rreBent debt
ana Lsa. receive iu lieu thereof bonds payable IN
'.hfty gea's. With principal and intotoa4 payable
IN Lonnoh IN gold coin. the wholo to ho accured
ny sinking fund. and tao payment OF intoroat,
principal, and sinking fnlld to 10 taken out oi
t'o hands a Of the Legislature mud vcated in tho
Auditor. who can 10 compelled to levy md COL
State or Federal courts.
The legislation by which tho State Lcr,s]aturee
arc to offectuate Tho agreements md sucuro tl,o
payment Of the now bonds has bcou prepared bY
believed will overcome the Legal obstacle to tho
collection OF State dnbts whiGh has bjthorto ~
iHed III tho constitutional lnntilIty Of a.v onn
not citizen Of tho State to suo It In tho S1-
prone Court Of tl,e United States. Tho logisla.
tion proposed Ia based on decisions Of the Sll-
prama Court that tho collection Of \ tax can be
enforced when the Legislature Inns provided tho
naohlner,. .aa It msk"a tho action Of the Logis-
lnt1ro acct ,.ng the agreomonE bluding Gu tha
btato as contract
hitl was introduced laHt week in tho Houe.
Of Representatives Ct the Legislature of North
Carolina for this purpoHe, Rnd We apppnd Hum-
mary Of 1t "a as spoclmon OF tho legislation
Tho iii ia supplemental to a preamble, in
whlct, IL racted the reaHo.A for not paying oil
deItA, namely, tho destruction of Tue III operty
OH which tho bontls wero based, aud the rccklcha
legislation and management Of tho ilnancaa
Al time when The tax,Payers Ind no control ~
debt, to bo called tho consolidated debt, aud
carriea tax-lsyy to pay Tho inlereHt on It and
reserve Tor htnhing. fnnd. II then doelat Oh
all bondH issued unaor Legislation boturo The
el,icH tho bolitlH Issued under tho Fund.
Ing acts Of 1866 and l8G8, as Tiny woro 1or III
teroHt on !he frat clnss, or old honda. 1t then
provides that tho Treasury alaI iasle ths now
honds to tho holders Of thlH llst-cla4s on old