The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1879-02-27
THE CREDIT OF GEORGIA.
Georgia Pronounced Ono Of Only Three
Corporations Ab1o to Float Four Per
Cents.

Three or four years ago, when the State
of Georgia sat down heavily on several
millions of illegal bonds, contracted in
defiance of law by government which
did not represent her tax payers, she was
stigmatized all over the country as a Gre
pudiating State" Her credit was said
to be irretrievably ruined, and by way of
putting the indelible brand of Cain on
her forehead, her paper, with great So
lemnity was formally kicked out of the
market.
Yesl Wall street pronounced the doom
of Georgia, and, "in consekens," being a
little short at the time, and outside bor-
rowing being considered finally blocked,
the State made raise of million on a
special issue called. the "Nutting Bonds"
whereon extra interest and extra guaran-
tees were provided, to tempt the brethren
of domestic origin into venture.
The difference between now and then
will strike the reader when he ponders
over the annexed special from Washing
ton to leading Ohio journal. In this
the United States government, the city
of Boston and the State of Georgia are
gravely declared to be the only govern
ments in America who can float four
per cent. loan and the credit of Georgia
is pronounced pre-eminent.
What has redeemed the credit of
Georgia2 Straightforward dealing. She
made prompt provisions for every honest
debt, and stood inexorable upon her dig.
nifty in respect to so-called bonds issued
in defiance of law. In the face of the
facts now existing it is useless to deny
that the judgment of mankind has en-
dorsed her course and the very thing
which the Northern bondholders declared
would ruin her credit irretrievably estab-
lished it. Prompt provision for all hon
est debts and creditors, and prompt dis
avowal and denial of all others, was a
plain, open-banded dealing, which, in
spite of all interested clamor, the world
has respected and appreciated. We ap-
pend the paragraph alluded to as fol-
lows:
SOUND CREDIr-WHAT 1T Is WORTH
TO THE STATE OF GEoRGIA.-1t is re-
marked here as little singular that the
only two corporations, outside of the
United States government, able to float a
four per cent. loan at par, are the city OF
Boston and the State of Georgia. The
excellent credit of the city of Boston is a
matter of history. She has always been
able to borrow money at lower rate
than any other American city, for she
never allowed an obligation to go to pro-
test, and every item of real and personal
property in the city is liable for the city's
debt, no matter to whom it belongs. The
holder of a dishonored coupon can levy
upon block of stores for his debt and
get it. These are the reasons given in
explanation why the credit of Boston is
equal to that Of the general government.
Among the States, and particularly
among the Southern States. the credit Of
Georgia stands pre-eminent. Every OBJ
legation is met with "spot cash" in ad-
vance of its maturity. The State Treas
urer recently passed through here from a
visit to New York, where he was offered
all the money be wanted at 4 and pei
cent. Georgia is now floating pei
cent. loan at par. The bonds are S. and
$40, with coupons attached, calling for
interest at per cent. She is the first
State in the Union to float loan at PAL
at this low rate of interest. Since the
war the rate of taxation has been 5 mills
or above, which has kept her credit up
to o high plane. Besides, the State owns
the Western and Atlantic Railroad, run.
ming from Chattanooga to Atlanta, lbs
miles, which pays rental into the treas
ury at the rate of $1,000 a day. The
completion of the Cincinnati Southern
Road will nearly double the value of this
property, and make it worth $S,OO0,00C
or S1O, ,OOO, 900, sum equal to the entire
debt of Georgia.
Georgians in public life here are very
proud Of the financial standing of theil
State, one of them remarking the Other
day that he would rather see the tax rate
raised from FIVE to fifteen mills than &
single obligation should 60 to protest OF
the financial fame of the State tarnished
-1facon Telegraph and Messenger.