Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-05-29
MINNESOrA REPUDIAToRs.

MINNESOTA REGULATORS
An important bill, and one likely to be of
considerable interest to the people of Min
nesota, passed the New York legislature be-
fore its adjournment. and was signed and
became law on the 18th inst. 1t is emit
tied San Act to Protect the Rights of Citizens
of this State Owning and Holding Claims
Against Other States" and is published else
where in this mornings GLOBE. 1t author
izes' in brief, the citizens of New York to
make over to the attorney general such evil
dences of Indebtedness against other States
as they may hold, payment of which has
been refused, when the attorney general
shall bring suit against the defaulting State
and take all legal means to compel payment.
1t is principally designed to apply to the
States of Virginia and Minnesota, both of
which have defaulted in the interest on their
bonded indebtedness.
The Minnesota reputation has long been
a stain upon the name of our State. The
bonds were issued in 1858. for the purpose
of facilitating internal improvements, with
the direct understanding that both princi
pal and interest would be paid. This pledge
has been violated SO far as the interest is
concerned, and to-day Minnesota occupies
the pnenviable position of one of the most
disreputable debt-repudiating States in the
country, and We are almost absolutely with
out credit in the money centers of the
world. The Republican party came into
power on the issue of reputation, and has
remained in power ever since on the same
issue. In order to make the reputation of
these internal improvement bonds ire
vocabIe the first Republican legislature
incorporated provision in the constitution
prohibiting the payment of principal and
interest forever except under authority of
a constitutional amendment passed by the
Legislature and approved by
the people. All efforts of
the honest Democrats of the State
and they have been unremitting-to remove
the faint of reputation from our common
wealth and restore its credit, have been I'M
availing, and we are still in disgrace through
out the whole world, unable to borrow dol
lar to tide over any emergency, unless it is
borrowed from our own citizens.
For this state of affairs the Republican
party is directly and solely responsible.
While the newspapers and orators are point
ing the finger of scorn at some of the
Southern States that have sought relief from
the burdens of taxation caused by debts lille
gally and dishonesty contracted, by repudi-
ating portion of their debts, they carefully
avoid reference to the Republican State of
Minnesota, that, in order to avoid the pay
ment of just debt legally incurred, has dis
honestly violated its pledges, and rendered it
almost impossible for its creditors to realize
dollar on their investments.
The New York law referred to may prove eff
fective in compelling the State to pay its just
debts, or to compromise them on an equita-
BILE basis. But compulsory payment will not
restore confidence in the disposition of the
people to pay their debts. Under the con-
stitution the United States have a
right to sue each other. The only difficulty
that the bondholders will encounter in en-
forcing their claims is whether State, act
ing as trustee, still retains its sovereign
powers. But if this should be decided
against the bondholders they can again en-
compass the regulators by making over
their ,nds absolutely to New York State,
course that will wholly obviate the diff
Guilty.
II the Republican party of Minnesota is
proud of its position in this regard, those
outside of its fold have no reason to com
plain. The unanimous sentiment of all
honest men, however, is that the course of
the party has been scandalous, dishonest,
and utterly devoid of every instinct of hon
or. The effrontery of State with such
record suggesting the nomination of one of
the chief of the regulators as a candidate
for President of the United
States is marvellous. The bare
suggestion has caused ridicuIe wherever it
has been heard. A party with such an in
famous record as the Republican party pos
sesses and with candidate from State
with the stigma of inexcusable reputation
clinging to it, would be buried beneath q
load of obloquy from which it could never
recover.
Sooner or later Minnesota must meet its
obligations. 1t would be far more honor
able, and certainly cheaper, to compromise
with the bondholders on such terms as they
would at present accept, than to wait until
they can exact their own terms. In view of
the action of the New York legislature it will
be seen that the creditors of the State are in
no mood for much further dalliance, and
that if any compromise is to be made 1t
should be made at once. The Republican
party has yet an opportunity to relieve itself
from some of the odjum that attaches to it,
though it can never escape the disgrace of
having deliberately conspired to defrsud the
creditors of the State out of their Just dues.
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