Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1876-10-25

One of the recent Secretaries Of the
United States Treasury, in commenting on
the condition of American credit in Europe,
said that the chief drawback to it was the
default of which many Of the states have
been guilty with regard to their public
debts. England and Germany have not
forgotten the old regulations of Mississippi,
Pennsylvania and other states. There are
men in Europe of long memories, who look
upon all American enterprises as humbugs,
aud upon American credit as a swiudle.
But the memory of those ancient repudia-
tons might have passed away with former
generation, had it not been for the financial
msfortunes which have come to many of
the states aud to many large corporations in
this country since the war The carpet
bag rule at the South, following close on the
wake of a destructive war, was even more
injurious to the financial interests of the
country, than the war itself. We have
shown in former article the immense in
crease Of indebtedness in the Southern states
test, aud caused, for the most part, by the
control of the lowest order of political adven-
turers acting upon ignorant constituencies.
The most upright and sagacious men, Of
wide financial experience, would have found
the financial rehabilitation of the South
task Of great difficulty, under the most ia
vorabe possible circumstances, with constit-
uencies intelligent and self-sacrifcing. But
when the work of reconstruction fell into
the hands of men whose only care was to
rob the states, it is not strange that the
credit of the country should have materially
suffered. This is what prevents it from be-
ing of the highest character now. 1t has
made it difficult for the United States gov
eminent to place even its new loan upon the
market at once, and without the intervention
and commissions of a syndicate. Alabama
fives are quoted at less than thirty, Arkan-
sas skies at less than twenty-five, North Car
DINA bonds can be had at prices ranging
from three to fifty, South Carolina at from
four to thirty, according to descriptions
Virginia skies from thirty-six to sixty-four,
Louisiana bonds range from twenty-five TO
thirtyseven, and Tennessees, old and new
from nothing to forty
Then the municipal and corporation debts
with the default in the interest, has weak
ened our credit. The total debt of New
York city is in the vicinity of one hundred
aud fifty Millions and is increasing at the
rate of fifteen or twenty millions per year
The total debt of the Erie railroad was ont
hundred and twenty millions three year.
ago. The total debt Of half dozen othel
east and west roads and their dependencies,
centering in Boston and New York, it i,
said at the last computation would exceed
five hundred millions, and this debt is rap
Idly increasing. These enormous state aud
corporation debts, on which the interest
has been again and again defaulted, will OF
course more or less impair the Rational
credit. 1t makes it difficult for the govern
ment to negotiate its own bonds. They can
only be disposed of through syndicate spec
ulators whose financial influence is needed
to float them in the European market.
And that influence is certainly handsomel,
paid for.
The remedy for a weakened credit is to
begin to pay debts. But when that is i'm
possible, the next best thing is, to make il
impossible for badly governed states and
dishonest corporations to obtain loans. 1t
corrupts states as well as men, corporation,
as well as individuals to get money easily
and without adequate security, without any
other security than the bonds of their own
manufacture. 1t will be necessary soon foI
states and corporations, cities and towns, to
get endorsers just as an individual who wants
credit at the bank is obliged to get an en-
dorser to his note. As we are likely to have
period of incessant borrowing in this coun.
try for some years to come, borrowing TO pay
interest and borrowing to pay the principal
Of our present obligations, and borrowing tc
enlarge our system of public Improvements
all of which is to be charge on future
earnings and development, it would be ad
visable for capitalists who have money t.
ienu 10 Try ana s'op future ueialcauon'
ia'her 'haii a''ehiP. 10 remedy 'he past u
'ong as sovereign o'a'e cannot DC sued py
o'eai'oi' Vi uses us sovereignty 70 i"clii'a''
its borrowing and TO prevent its paying it
oonsa''ons' =" "ouiu Us wei ior t"oSe "n'
,.'e 'he iehuing oi money 10 demand Oh
gun" "ne'' sue WISHES W oo''oW money
o' ',e' oonuS' 'na' 'ile money sna'i DE .orth
'o'i'"s ""e" sue WIN SECURE 'ne enuo'se
'nen' Vi 'nen py vermont ana connecticut
anu % aiSo wiz" oo'Poia'iohs' the Ne"
On On Ne"''", WISHES ~ ISSUE "'o'nei my
'''' ''a''' -, '"1 '"p''''a.' ~
i"''' ~ o'''' :" ''"u'' ''''i' neso'i"oie
',"' '"'9 '""'' 10 ."u''s'u ~ pai.'e'
~, "D' ''A"O"'e''u "''''''
"e" ''' P"pe' Vi 'o'o'e'sn states "no
''''' r.''''''' 70 '"""'' "'o"' 'n'
'.'''.' ",' . my "'i'" ',e" '"s !. =
','io ioi '''s "oii' U, 0ap''a' W 'e'e'iiin'
9.'',l Nv ~ 'l''Nl D1,o.
"p0n ""'t'e o"uO, Seu'eN'' anu Seou''', '.'
w.. W '"' ''''" '"'n'"s VI Puoiio circuit
~ ", pNy '"0"' =, Pun "'' p'''"'e ueo''
~ ~ 80 D :. ''''"",'s
sI.,,.. :,