Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-07-15
aEMPMIS APPEAL
THURSDAY, :: JULY 10, 1875.
gEpUDIATIoE-sTAIE CREDIT.


EPUDIATIOE-sTA1 CREDIT.
AL of a sudden the newspapers OF
Tennessee have commenced discus
sion Of these two questions. This
seems to have been elected by a
failure Of the State to meet the interest
due on its Indebtedness. There seems
TO he d general feeling Of condemnation
and Indignation at the idea Of repudia-
ton, but the policy proposed by some
amounts to nothing but reputation. To
denounce reputation in.one breath, and
condemn in the next any effort 10 meet
the liabilities Of the State, is paradox
which honest men do not understand.
We are told, from day to day, that the
State shulld be treated as individual
creditors and debtors settle their busi-
ness affairs. We look upon the honor
and faith ofthe State from higher stand
point. The State borrowed its money
from its creditors solely upon its honor.
The Individual bOrTOws money upon the
faith Of his property, and if he fails to
pay his debt the law makes him. A
debt against the State is debt Of honor
exclusively, for there is no court to enter
judgment and issue execution against
her as in the case OF the individual.
Even the gambler recognizes this, and
meets his obligations promptly, because
there Is no law to make him pay, and
he would be scourged from the faro
table for its violation. Shall the honor
OF State not stand as high SIS that Of
the gam bier? We are opposed to any,
par. # the State. II our creditors should
come to the State, voluntarily, and offer
to take q less price for their bonds than
they call fJr-all right; but it Is another
matter TO dictate to them what we are
willing 10 pay, or to depreciate our pa
per by hsggling it down to the lowest
figures. An individual cannot pursue
this c5urse and maintain his credit, nor
can q State. We believe that we are
able 70 pay our debts in full without OPP
pressing the people, and the loss OF cred
it would remand US back a century.
With the steady increase in the value of
property, we believe that the debt can
be extinguished long before maturity,
but whisper any word that smacks
Of reputation, and down 60 values and
credits. Capital, which il not driven
oil, would in 8 decade build US up one
hundred million dollars in manufacture
ing enterprises, will avoid our borders.
While money is q drug in Wall street
and commands but nominal interest,
the most tempting opportunities for in
vestment in the south are neglected,
and the high rates OF interest offered fail
TO draw from New York any appreciate
portion of its surplus millions. The
reasons for this are obvious. Capital is
powerfully timid, and the unsettled
condition Of affairs in the southern
States, with the rumors Of reputation,
have caused capitalists to stand alOof.
The south can never regain its prOsperi-
ty until it is 'able TO command capital,
and that can never be until it ceases to
talk Of reputation. True, reconstrUc-
tion, with its carpetbag governments,
ssddled upon the southern States
debts for which the States received little
or no equivalent, and which press hesv-
lily upon the people. But where the
bonds representing these debts were is
sued by dc fdct0 government, and
bear the sign and seal Of the State, they
cannot be repudiated without seriously
damaging the present and future credit |
Of the State. In such case it is safe to |
say the losses would exceed what would |
be gained by reputation. II bonds ex-
ist, concerning the legality of which |
any doubt exists, the proper recourse is |
to the courts. The questions involved |
are legal, not political, and the party |
which inscubes reputation on its BAN
ners is sure to come to grief. The people |
are rising everywhere against dishon-
esty in it's various guIses, as exemplified
in the Republican party, and the dis
honesty OF reputation must be /
to all. II a State can
repudiate why should not an indi-
viduals repudiate, or the national gov
eminent, for that matter? The princi-
pie is the same, and the general results
would be the same in all cases, though
in the case Of reputation by the
general government or the State govern
ments OF their obligations, the resultant
evils would of course be Of greater mag
litude, and the many would suffer in
stead of the few. In discussing this SUBJ
ect, the Knoxville Press and Herald
lptly says: Twain indeed must be all
he pains Of Tennesseans to turn the
ide OF people and capital to their soil,
o long as they acquiesce in the prOstra-
ion Of their public credit"