The weekly democratic statesman. [volume] (Austin, Tex.) 1871-1883, 1877-02-08
DEBTS OF SOUTHERN CITIES
AND TOWNS,

The New York Erening Poet deus
ses with singular fairness proper modes
OF restoring the credit of Southern
States. IL admits that these States are
weighed down with oppressive debts,
which, in large..part, were fastened on
them by the INSCRIPTIONS adventures
who, since the close of the war, have
infested the South as the frogs and the
locusts infested Egypt. The war left
these States impoverished, with their
industries crippled, their labor system
disorgsnized, their political condition
uncertain. Clearly it was,the interest
Of the whole country that that should
be done which would give them the
largest opportunity for recovery. That
thia19as not done is matter of his
Tory. Instead, the States were over
run with carpet-baggers, the leglsla-
lures were practically seized, and the
States were committed to debts OF
such magnitude as to discourage the
hope OF property owners that the prin-
clpal could be PAID, and as to make
even the interest on these debts what
heavy weight is to swimmer cross
ing a river. These debts of bonds
bore the great seals of the respective
TStates which issued them, and were
taken by investors, who were mindful
OF the fosmer credit of these States,
and who did not know that the bonds
were Issued by the authority of bodies
OF men called legislatures who did not
reTesent the property owners of these
Gates.
Years have passed since the issue OF
these bonds. The substantial people
of the South feel that they have been
wronged, and the unfortunate credl-
tors or holders of the bonds are-con-
scious that they have also been
wronged. The States suffer from dis
credit; no one with money wishes to
settle IN them, and there is no reason
why labor should go where it is no,
well employed. The country as &
whole suffers from this condition OF
the South, for the reason that no part
of the country is Its equal in natural
productive power. Taxes which the
South, if prosperous, could help tC
pay have to be borne for the most part
by the rest OF the United States.
Trade with the Southland Northern
commercial cities never had a more
profitable trade than their Southern
trade was-has not been what it should
have been, and it never will attain its
former proportions until the Southern
States are given chance to put them,
selves again in good condition, and
thus are enabled to restore theiI
credit.
The question is, how shall this be
done Leaving out of consideration
all political questions, an important
step is so to adjust the debts of the
Southern States as to make them toll
cradle. Both parties to these debts,
the creditors and the debtors, should
make concessions. What these con.
cessions should be can be judged nc
more fairly that by such an umpire al
the committee proposed by the clear
ing house meeting. This commit
tee consists Of experienced, fair
minded, disinterestcd men, who have
but one purpose to serve, namely, tC
make an equitable arrangement by
which the permanent welfare of both
parties in interest shall be secured and
the public good promoted. Business
men all over the country have direct
interest in this matter, this is particu-
larly true of the business men OF New
York; and no recovery from the trade
depression of the last three years will
be complete unless it include the re-
establishment of good credit In the
Southern States.
But what permanent relief will he
given the Soutb2 The same class OF
adventures may regain supremacy.
The same class of voters still exist and
still vote. Where they have recently
failed to win power Congress threaten
TO overthrow subsisting local govern
ments, and our dispatches of yesterday
stated that the government of Missis-
sippi, for this reason, must be subverted.
When existing debts have been COM
promised what assurance can we have,
while suffrage is polluted and Wellses
and returning boards determine results
Of elections, that another process
Of scaling and funding will not
be made necessary by the reac-
cession OF ignorance and knavery to
power. While the Post proposes to do
what is surely just and desirable, it
should so further and provide against
the sure reproduction of the evil it pro-
poses most generously to palliate. The
ballo.-box must be purified and results
of elections determined by those who
pay pubic debts. While one class
creates debt and another pays, very Ger.
tainly nothing will be paid, and the
New York bondholders should provide
not only present measure of relief for
Southern States and municipalities, bu;
for the future security both of them
selves and their debtors. These two
objects can be accomplished 10y two
concurrent measures; the oue, provid-
ing for compromise of these fraudu-
lently created debts; the other, for re,
striction of suffrage to decent iutClli'
genee and fixed populations.
AUSTIN AND SAN ANTONIO ANB
rAE wHIskH QUESTION.
wmmN = A.