New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-06-15

made In the construction Of tho works. which
hsd boon begun in all parts Of the State.
when the collapse Of 1887 occurred. which
put . sudden stop to fall these enterprises,
and also the payment Of the interest on the bonds
which had been issued. For . number Of years no
payment was made to the bondhclders, and various
expedionts were resorted to by the Legislature for
the payment Of what was called the floating debt
of the State. In the mean time the bonds weresady
deprecated. and by many holders they were re-
cardcd as being yfrtMaliy. repudiated. Gradually
the State recovered from her embarrassmcnts. and
some six or scvcn years after the default occurred.
strong pressure having been made upon the Legsla-
ture bill was passed by which the State agreed to
issue new bonds for onchaf tho old and for the
other half to transfer to trustees for the benefit OF
the bondholders, the Wabash and Erie Canal,
together with the lands which had been given by the
Government for its construction, and which had not
been Sold aud the balances due on the lands when
had been disposed Of This transfer OF the canal ana
canal land, was subject TO condition thathe canal
then completed from the Ohio line to LAFAYETTE,
should DO extended to the Ohio River, tho cost of
which extension exhausted the lands and the cash
balance due thereon leaving to the bondhoders the
canal alone for one-half the amount due them The
canal. never in fact valuable property became
subsequently absolutely worthless by the construc-
which were built by the authority of the State. To
this compromise the foreign bondholdcrs may have
been parties hut it was In y say, compromise vir-
finally forced upon them by the relations which ex-
isted between them and their debtor The State
wes soyercign II could not be sued in the courts.
II was protected by the Federal Government from
beng in any manner held responsible by the nation
whose citizens were the holders of lis obliga-
lions. Her creditors must either accept what
WAS rendered. or, as it seemed TO them. run
the risk of losing their entire debt The proposition
was considered fair one by the State, and 1t was
generally accepted by the bondhoders. There are,
however / understand. some OF her bondholders
who, being unwilling unable to avail themselves
of the terms of the cOhpromise, have never received
ANYTHING on their bonds Many.years, as has been
said have elapsed since this compromise took place.
and do not undertake TO state the facts in regard to
il with precision 1t ia. indeed about the only i'm
portant fact in tho history of Indiana which her
sons cannot think Of things have turned
ont. with satisfaction and which they would
be glad to forget. 1t is enough to say that
considerable amount of her bonds, 1or
which she received full consideration, remain
unpaid through no fault of their holders. Since
she COMPROMISED with her creditors she has become
prosperous and rchOne OF the most pr spclous ana
richest States in the Union. She could take up thcse
obligations without adding pcrceptiby to the Dur
dens of her Taxpayers. That The property trans
ferrcd to the bondholders in payment OF part oil
their debt has become valuccss. mainly by the con-
,trnction Of railroads which, built under the au-
thority of the State, have added largely to her
wealth, cannot DO questioned. What ought to lie
done is very clear to my mind but am not IN sit-
aation to be an adviser. l am merely explaining
why it is that our national credit Is not so high as IL
orgbt IN he HUGH MCCULLoCH.
London, June 2, 1875.