New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-07-10


laws for their abrogaton but they render these ob-
cations valucless, wholly in part, according to
their own good pleasure, by declining to fulfill them
The State of Virginia having under an agreement
with her creditors, issued new bOnds-the coupons
Of which were to he receivable for taxes-for two
thirds of the amount of the old ones, is compelled 10
adhere to her agreement and to receive these
coupons from her Taxpayers, but she can reduce
their value by taxing them. and she might
render them as worthless waste paper by simply
declining to levy taxes. Now what conf0unds 1or-
egners is the fact that while the Supreme Court OF
the United States must pronounce invalid oil acts of
States which impair, rather arr intended to i'm
pair the binding obligation of their contracts it
has no power to compel the performance of these
contracts: that while no State can make valid laws
for the reputation of its debts, there is no power
outside of itself that enforce observance of its
faith. Sovcrcigntics within sovereignty!
Ought to be surprised that foreigners are per-
picked by this popularity of our political fabric, and
COMPOUNDED if not disgusted by the contradictions
and Injustice that result from it The sovereignty Of
the States prevents an enforcement of their obliga
tons, and this it was that made appropriate and
truthful the remark of eminent and high minded
jurist
"Hi expected that the action Of sovereign State wU
be characterized by scropuous regard TO justice
binary transactions Of adiridudis."
The creditors of the States have nothing to rely
upon for the f!lmcnt of their obligations but their
integrity and their honor; these therefore, should
be observed with the strictest hdciy-in spirit and
letter Arc they so observed, will not say by the
States that are paying nothng-plcadingi inability to
nav y reason of the effects Of the war upon their re-
sources as an for not trying to do anythng
for their crcdiorbu are they observed 10y States
that have no such excuse to offer' Let us see.
PAYING PROMISES TO PAY.
| Before the passage of the Legal Tender acts the
States had almost without exception been borrowers
! of money and for the money they borrowed they
issued their bonds payable i'll dollars. Have a ma
| ioIity Of them made good are they now making
| good their agrccmentsf Has their treatment OF
their creditors been characterized by scrupulous
regard TO mstcc and by high sense of honor r.
Have they kept faith, they nov keeping faith,
with their creditors. Have they not. on the CON
trary. for wears past withheld from them 80, 40,
| 80 per cent Are they not now Withholding
nearly 20 per cent of what is Justly their dueI They
are paving it is true in what Congress has decided
| TO be lawful money 4; but what after all is TINS
money but unfullled promises. which are worth JUST
| what they sell for in the market, and no more
/ They have been declared to be lawful money Dull
| thcy certainly are not the kind of money which was
borrowed by the States and which the states agreed
| to nav in return for the money they borrowed Are
| they in any true meaning of the word. money! Is
il not preposterous to call money promises to pay
money, which can only be converted into money by
| the payment of heavy discount! Facts are SUD-
born things, which cannot I've ignored; and the TACT
cannot be denied that many of our States are only
making partial payment to their creditors. Avail
ing themselves of law for the existence of which
!
the interest On the bonds since the passage OF
gal Tender acts they have compelled the holders to
take now half now third and now fifth less than
was called for by their contracts. Suppose there
were in existence great international tribunal, es-
tabshed by the nations for the settlement OF all
questions between nations and of the claims OF cit-
zcns against sovcTcgntes land such tribunal would
long since have been established if Christianity had
done its perfect work., which one of our distn-
guishcd lawyers would dare TO go before that trbu-
nal with the contention that the ant-war debts OF
our States could be, will not say morally, blt
legally, discharged by the tender of deprecated
| notes which the Government Of which they are a
part has seen fit for purposes of its own. to declare
| to be lawf money. If part Of the States are
right in paying III legal tenders, how has it happened
that Massachusetts, more heavily indebted than any
of them in proportion to population has always paid
| her interest in coin! Are her obligations more
sacred than theirsi Massachusetts has done no
more than her legal and moral obligations required
of her. but her escutchcon is clear, she never fall
| tered her name is honored wherever her name IL
known and her people have not only the proud sat
sfaction of knowing that their State at least has
always acted fairly with her creditors but that she
s receiving in her high credit full reward for hor
! fidelity. HUGH MCCCLloCh.
| London, June 49, 1875.