The daily gazette., 1877-07-05
REPUTATION.
w York Tribune of this morning.

Reputation is becoming epidemic. 1t
can no longer be said that the disease
prevails only at the South, though in that
section there was an especial melting
cause, in the extravaganza of the govern
ments maintained by carpet-bag and col
ored rule, and in the oppressiveness of
debts thereby fastened upon commune
ties. But Minnesota, young and pros
porous Northern State, by deliberate
vote of the people, perpetrates an act of
reputation less eXcusable than that
which branded Mississippi with shame
many years ago. Counties, townships,
cities, in Illinois and other Northern
States, have shown themselves even more
shameless in the evasion of obligation
fairly adjudcated than the Southern
communities which have long been COM
PEELED to pay high rates of interest be-
cause of prevailing distrust of their
pledges. Dishonesty spreads because the
hard times make payment of debts more
clearly than ever a matter of selfish per-
sonal interest.
The behavior of South Carolina has
been discussed already. Excuses offered
by Governor Hampton and others do not
mitigate the ofIense against honor. Ten
nessee was able, according to official re-
ports, to pay interest on its full debt,
without an Onerous or unusual tax, but
refused to accept a more generous prOpo-
sition than ever would have been made
by creditors not acting under sense of
duress. In Kentucky, it appears there
are counties and municipalities which
are following the infamous examples set
| by communities in Illinois, and the Cou-
rier-J Journal, though manfully protesting,
and demanding the defeat of the repudi-
ators by all possible means, evidently
apprehends that the counsels of honor
| will fall upon deaf ears. Nothing more
Just can be said of the conduct of Indi-
ana than was said by ex-Secretary Nc
Culloch, former citizen of that State, in
his letters to the Tribune. Minnesota
adds to the crime of many years. neglect,
| which the highest courts have sternly
rebuked, a decision by the people that
| they will not pay even fraction of the
debt justly due, and long overdue.
OF recent performances, that of Arkan-
sas is perhaps the most indecent. Bonds
were granted in aid of railroads; the peo-
pie voted to issue the bonds; the officers
of both houses certified to the passage Of
the act, and the Governor approved I;
and the bonds were sold with every con-
ceiv&ble guarantee that they were legiti-
mate and solemn pledges of the State.
The money was obtained for them, and
| it was spent for the benefit of the people,
precisely as they had decreed by their
vote, if official certificates are worth any
thing, and the State itself had TOR years
paid coupons on the bonds. assuming
them to be valid. But Supreme Court
of the State uow decides that the bonds
are void and worthless, and on ground
SO impudent that it deserves special
mention. The Legislative act authoriz-
ing the issue provided for an election, at
which the people should determine by
their votes for or against the loan, and
declared that this act should 60 into ef-
| feet only in case of and after favorable
decision by the people. But the Court
now say that, since the act could not
take effect until after the election, it
| could not have effect to authorize the
election; that no legal election of the
people was therefore held; and that the
bonds, issued without vote of the peo-
pie at legal election, are consequently
void. If any private individual should
try to escape payment of money borrow
ed in good faith and actually received, by
means of such dodge as this, he would
be spurned from all decent society as
swindler, even if he escaped being locked
up as a thief. Yet, with a GOODNESS
which is not surprising in the people of
State which so forfeits all honor, promin-
ent citizens of Arkansas are now begging
| the bondholders to trust them with pow
er of attorney, as agents, to compromise
or settle the debt on the best terms they
can. If bondholders are wise, they will
look to the law, or even to the slower
process of new growth of honor in soil
apparently uncongenial, rather than sign
away their claims TO citizens who are
specializing in the infamy of their State.
In general we advise creditors to wait
until this epidemic has passed. They
are not likely, at this time, to obtain set
tlement on any decent terms, and, even
| if they consent to scaling or compro-
mise of the debt, are liable TO be treated
| just as South Carolina now treats the
creditors who voluntarily surrendered
but recently so large apart of their claims.
| 1t is quite as well to hold a worthless
bond for 100000 as for $50 900, and no
| bonds that repudiating communities are
likely to give at present will he much
more than worthless. But a different
public sentiment will one day appear
States, counties, and towns will begin to
realize the curse of dishonor after time.
Populations will partly change. N1en
who have some notion of business honor
must gain prominence and influence be-
fore such communities can become pros
perous. Better times will come. Men
who have been tempted to countenance
swindling because times were hard, will
be ashamed of it. Their sons at any rate
will be ashamed of them. Let the bonds
lie, unless the propositions for compro-
mise are such as thoroughly honest
people may make, and are excused by
real necessity, Let interest and disgrace
accumulate. This is not nation OF
swindlers, and the time will come when
communities which have tried to rob
creditors will be glad to make amends.
The epidemic is severe, but it will pass.