The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1877-05-03
NO. 6.
Debts of the Southern States.

The Philadelphia Ledger furnishes the fol-
| lowing comprehensive summary of the debts
Of the Southern States:
Just now the amount and character of the
debts OF the Southern States are attracting
considerable attention. The bonds of the
most of these discredited States are found
scattered in almost every part of the Union.
Some OF them are still in the hands of the
original takers, but by far the larger part of
them are held by parties tempted to their
purchase by the poor credit of the States
and the seemingly very low prices of the
bonds. The recent appointment of a North
ern Commission OF intelligent. and disinter-
ested gentlmen to consider some plan Of adj
justment of these debts as between States
and holders, aud the attention given to the
matter by some of the Southern State Leg
islatures, has awakened general inquiry as
to the financial situation there. It is found
that the aggregate debts of the eight South
ern States, not including Georgia or Missis-
sippi, amount to about $195, 100000. How
much of this is acknowledged nobody is able
to say. The total debt of Alabama is, in
round numbers $4,000, 900, about half Of
which has been repudiated. Louisiana has
a debt of about 1927, 500, 900, about $15,0OO,-
GOO Of which has apparently been repudia.
ted. We say apparently, for the funding
act reduces the debt only to sixty per cent,
yet the accounts published by the State Gov.
eminent admit only about $4,000, 900 to be
due. Respecting the other States, it is un-
certain how much is acknowledged, but the
matter is OF little Importance, for the inter-
est ON the bonds is either unpaid or is only
paid partially or internationally. Thus Ar
kansas owes about ST., SOC, 900, but pays no
interest on any part Of that amount. Ten
nessee owes $4,000, 900, but meets her obi.
cations rregularly OF not at all. Virginia
owes very nearly s45, 100000. This debt has
been twice cut down by acts of the Legsla-
ture. The first act makes the coupons of
the funded debt receivable for State taxes;
the second takes away that privilege. 1t is
not easy to understand now how the matter
really stands. In addition to the $lo5, 000,-
900 due by these eight States, Georgia has
repudiated about $l2, 10000 And, as we
said before, four States had, before the civil
war, repudiated or failed to pay the stipula.
ted interest on s36,750,O00. Thus, the total
debt of States OF the American Union legal
ly due according to Federal law, but which
is repudiated or the Interest on which is not
paid or is not paid 10 full, amounts to about
S242, SOC, 900. This is exclusive, of course,
Of debts of municipalities, counties and 9TH
er local authorities. Further, it is to be re.
membered that the debts incurred during
the civil war by the Government of the Con-
federate States and by the several States
which formed the Confederacy have been
entirely repudated. This, no doubt, was
done not by these States themselves, but bv
the North. Still, by whatever authority it
was done, it swells very greatly the losses OF
those who entrusted thei: money to the
South. Leaving out of account, however,
the loans raised in furtherance of secession,
the subscription to which, like the repudia-
ton. was mainly prompted by political mo-
tives, we may mention that of the forty
eight or forty nine millions sterling of debt
in peace, and now in default, about
one-third, as nearly as can be ascertained,
was advanced by foreigners. 1t is worth
adding that these unfortunate foreign ven
lures comprise more than fivc-nintbs of all
the investments by foreigners in American
State securities. 1t will thus be seen that
speculation by foreigners in these securities
has been peculiarly unlucky, since consider
ably more than half of the investments have
been partially or wholly repudiated.