New-York tribune., 1879-08-30

the construction or railroads. ms depV was ue-
nounced as a creation of Republican extravaganza
aud dishonesty As TO the policy Of lending The
State credit to railroad companies, 1t was begun
by tho Provisional Legislature of Alabama, Ill
1867. which was overwhelmingly Democratic.
Tue Republican administration which succeeded IN
1868, and the Democratic administration which
came into power in 1870, carried out the policy
thus initiated aud recognized the validity of the
debt thus created The acts Of 1867 1868 and
1870, under the authority of which the debt was
contracted, were advocated and voted for by
Democratic as we'll rs by Republican members OF
tho Legislatures and the original act OF 1917
could not have become q law at that time III the
Democrats had not supported it.
In 1872 question arose as to the Legality oil an
issue of abou. $500, 900 IN bonds to one railroad
but with that exception, the validity OF the dep
was not questioned by the State authorities uhtii
the Democrats returned to power again III 1874
under circumstances that led then TO believe th4i
they would retain control Of the State for long
perod Tn view Of certain concessions by tho State,
however portion Of the contingent Indebtedness
had been reduced in 1873 as before explained IL
thus appears that. whether the policy OF Lending
the credit was Wise not, At was inltiateh Dy tbo
Democrats and had received their support Tor siA
years. But in 1874, as bas been shown, the Demo
Gratis began q systematic attack on the pubic credit
of the State.
In an editorial article published in The Mont
oomery Adrertiser in 1878, the State debt esti-
mated at S3l 900. .000 This was contrasted with
the snte-war debt, and tho declaration made that
to pay tho interest such sum would amount to
virtual confiscatinn. The writer continued:
This by no mrans comforting reflection either to
tho bonduoGors the taxPayins people, For the ior
Ller, BOweyer, have very lttle synipahy Inoy rn
all and euOOuraIp0 the Congress HnicD ia6tcncu
upon our people not only the present oItravagant
least preence OF election assumed by Congressional
authority 10 legisnte for Alabama.
In this passa 20 is found one of the earliest
sions of powerful reason for Democratic ieDudia-
ton in the South-a motive which will be found
disclosed in these articles. Our political
opponents have bought our bonds, therefore let us
repudiate them," is the argument Of The idr@i'scr
That paper was known TO reflect the vie IVA of the
Democratic administration, at the head of which
was Governor Houston. who is now Senator OF the
United States.
That it is fair to lmpute the confessed motive as
the true reason why the Alabama Democracy repu-
Giated moro than half of the State debt may he
shown in another way. Republican extravaganza
and the magnitude of the debt were given as rea
sons why payment should not be made But when
one studies the financial history of Alabama, he
State on account of railroads existed more than
forty years ago. According to the report Of q
select committee Of Congress in 1872, the debt
of Alabama in 1911 amounted 10 Sl5 400, 900.
That debt was contracted by lending the credit
of tho State TO banks b'tween 1923 and
1887. The banks failed anu did not pay
the debt. Before the war the State had
been able to pay this interest and four
fifths of the principal The balance. to-
gether with the trust funds squandered by Demo-
Gratis before the war, and the defaulted interest,
make up about one-haH OF the State debt now
recognized" II the railroad investments after
the war were unwise and eItravagant, the bank in
yestmants before the war were foolish and prodigal.
The Democrats however, did not repudiate the
latter but honestly and maDfully paid the interest
on them. The former they either repudiated out
right OF forcibly readust as soon as they OBJ
tanned the power.
The course of reasoning by which the Democrats
tried to convince themselves that they were, in the
words of Governor Houston, to restore the credit
OF the State to its former high and honorable posi-
sion-preserve inyiolate her good faith, and at the
same time protect her people against excessive, I'M
inst and improper taxation" is well illustrated by
the following passage from the report Of the Board
of Bond Commissioners. of which he was chairman.
Respecting Inc aIu tAIouuSG W idiuOauS, IHo tOH-
missloners said:
Ssgaoious capitalists must have foreseen that State
IN which the value OF the progeny u the people had
been reduced from fully S72o.OoOoOO to barely
pay interest on its then existing debt would MOI De
able protect its Inducements for railroad companies
aud purchasers OF such bonds must sensible and
prudent have relied on the ability OF the principal
and not the surety for payment They could not, 1t
seems to US expected that the taxpayers Of Ala
bama after hdring lost tie bulk Of their property by the
erents fW1r and with existing debt mucn greater
m
OF municipal and individual Indebtedness would be able
to contribute from their diminished resources sui-
amount OF revenue 10 pay the oDngatOns OF rail-
road corporations.
1t was by these and like pleas that the Democratic
Legislature of Alabama was induced 10 punish
bondhoiders for their lack of "ssgacIty by con
fscatng ten or twelve millions Of their property.
word may be said about the less Of property by
the war. The slaves of Alabama in 1860 were as
sessed at 1852 PTS. 900 the assessed valuation of
other taxable property was $270, ,920, 900; total,
$432, 1913, 900, instead of 1928, 100000. as
given by the Bond Commissioners. In 1865 the
assessed valuation of property was S123. .046 900
in 1870 it was S156, 40. 900 an increase Of over
S32 600, 900 in five years. In 1873 the assessed
valuation was S180 600, 900; an increase Of but
$4 4OO0, 900 in eight years. The real valuation &C
cording to the census OF 1870 was S201 ,00O, 900.
The value of cotton produced in Alabama from
1SG5JG6 to 1S68'69 three years, $40, 900 600,
or about $40 6G6 900 year. and the cotton product
of Alabama as of all the Southern States it is well
known. has increased in value from year to year,
tho increase III the number Of pounds produced
more than offsetting the fall in price.
III.
ARKANSAS.
The principal of the State debt of Arkansas