New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-09-06
GEORGIA..

GEORGIA..
At the close of the last fiscal year before the ONT
break of the rebellion, the State debt Of Georgia
was ~, $40 .75O Ii had been mainly contracted IN
building railroads, and, III addition 20 the above
amount, the State had given further pledge "a
1900, 900 for he same purpose. There were l.i20
miles of railroad in the State. and they had coss
500. 600. 600. One of the railroads, which was
owned by the state, had cost %i.7li.0OO. At the
close Of the war the debt. exclusive OF debt Of
I5,IO4, 726 contracted to aid the rebellion.
amounted 10 S5,7O65 800. The state railroad had
been damaged to the extent OF $3.OO0,OOO and tho
damage other railroads had been proportionately
heavy. The State school fund at the beginning or
the rebellion consisted OF 100000 in bank on i'm
terest. and $1,000 in bank stocks which yielded
an income of 10 per cent year. At the close Of
the war the banks were all broken and their stocks
worthless, and tue school fund had disappeared.
When the reconstructed State Government was
maugurated in 1865. the debt amounted to
TG5li,j0O This included past-duc interest which
had been funded, and certain railroad grants. In
1865 the policy OF granting adm the construction
of railroads. which had been initiated by the Provi-
sional Government ia 1866, was continued ami ex-
tended THIS aid was IN the form of railroad bonds,
indorsed by the State to certain amount for each
mile built as security for which lien on the rail-
road property was taken
1t appears that during the next three years rails
road bonds to the amount of S6.6S3,000 were in
dorsed. To this amount should be added 100000
indorsed by Provisional Governor jenkins in
1866 making the amount of Endorsed railroad debt
at the close of the Republican administration
S7Os3, 900. Besides this, there had been loaned to
the Brunswick and Albany Railroad State bonds
amounting to 81 500, 900. security Amounting to
S225O. 900. These loans and Endorsements were
made according the laws OF the State, and 1t APP
pears that these laws passed the General Assembly
by an overwhelming majority of tue members OF
both political parties. Moreover they approved
and sustained by the sentiment Of the people gener
ally without regard their political opinions. he
policy thus carried out by Republican administers
ton was therefore both popular and bipartisan.
To prove the wisdom of this policy 10
was shown that the effect had been 70
attract to the State large amounts of Northern and
foreign capital, some $15,0OO,0O0 of which had
been expended in building aud equipplng 600 miles
of these subsidized railroads. 1t twas further shown
that in three years the valuation Of the taxable
property of the State had risen Sac, 100000, and
that this increase was mainly due 10 the building
of railroads aud to other investments Of outside
capital.
But the Democrats gained control Of the Lcgis-
lature IN 1871 and once in power they began an
attack on the credit of the State. For the sake Of
gaming political advantage they began to charge
the Republican administration with fraud, aud ia
cry out against the extravagant debt which they
had themselves helped to contract, but which they
now assailed on the ground that 1t was RepuD-
lcan aud not State debt. One of the first acts OF
the Democratic Legislature. December 8, 1871, was
to forbid the payment of interest on any bonds Is
sued, negotiated Endorsed by the State since
July 4, 1865, until after the report OF legislative
committee. From that time may be dated the
growth of the reputation sentiment IN georgia,
which in 1877 eliminated IN constitutional
amendment which declared null and void oyef
as, 600, 900 of the public debt. upon which arrear-
ages of interest amounting to half as much moro
had accumulated.
The growth OF this population sentiment was
encouraged by Senator H. T.. Blair OF Missouri. and
Representative James Is Beck, Of Kentucky.
These gentlemen were members OF a select COM
mttee of Congress To investigate Southern affairs
in 1871. They were present at the examination Oh
General Gordon. now United States Senator, and
Others and the remarks which they Intepected into
the testimony show that Messrs. Beck and Blair
were governed by the idea that the state Of Georgia
WAS not bound to pay debt contracted by its law
fully constituted authorities when those authors
ties happened TO be Republican. Senator Blair
went 80 far to say that III III were MS case ne
would let those who contracted the debt pay IL,
meaning the Republican administration, which had
become pOwerless to preserve the credit Of tho
State
In the Constitutional Convention OF 1877 Cover.
nor Jenkins who was at the head OF the Democratic
Provisional Government in 1866. and who signed
the first Endorsed bonds issued by the State. adyo-
Gated the reference OF all questions respecting the
validity of the State debt to the Supreme
Court Of the State for judicial consid-
Grafton and review This opposed by
General Robert Ioombs in q violent speech,
In the course Of which he declared that the
State Was not bound for single dollar appropriated
under the Reconstruction Government That Gov
eminent was he said, usurpation by the aid of the
bayonet aud " the world had notice that the acts
of the de facto officers were without the consent or
the authority Of the people Of Georgia" The same
sentiments were expressed by other members Of the
convention and were warmly applauded. The re-
suit was that the convention adopted the repudia-
ton clause of the Constitution by vote of 1913 "a
l6, and thus at blow wiped out nearly one-half
of the entire State debt
Georgia Democrats sried to Justify this action by
| charging extravagance and mafeasance upon the
| Republican administration under which the deb