Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-09-01
To the Editor Of the Globe.


States where it ii. e., the Democratic party)
has the ascendancy, like Virginia, Louisiana,
Tennessee, Mississippi and Arkansas, it has
either repudiated the State debts OF threatens
to do so.' Statements of this ilk, meauly made
TO accomplish mean ends, are not original
with Mr. Sherman. They had before yesterday
been pilloried by the enlightened criti-
cism of decent men of all parties.
The scandal had become refuse until
treasury to give piquancy to his ''most lame
and impotent" arraignment of the Democracy
of the United States. How these debts were
imposed upon the people of the States referred
to after the exhaustions of the we- of the re-
bellioh by powers usurped and unknown to the
constitution and by creatures alien to the in
terests of the subject States, it is unnecessary
to detail. The great food, the minor infiic-
tioDs of the plague of Egypt even the grass
hoppers OF Minnesota left no such trace OF de-
vastation as did the government aud the gov
ernors which Republican administrations
have visited upon the States of the South.
write this communication to show, by an ex-
ample near home that repudiation and repudi-
ationists are not the offspring of Democratic
States.
In h1HrOut 1901, NODBt6bS granted 10 inc s3thLe
of Minnesota, in aid of certain railroads then
contemplated, and now operating in the State,
about 1900, 900 acres of the choicest lands on
this continent--a grant never before that date
paralleled in extent or value. With an in
stinct of sagaclty, which has generally charac-
terized the action of such Democratic leaders as
active and controlling promoters of the grant,
Stephen A. Douglas and VIM. 81. English, both
(the former in the Senato, and the latter in the
House, the best routes were selected An ex-
ira session of the legislature was at once called
corporations were created and endowed with the
lands. The work of utilizing the land grant
was at once begun by these corporations. 1t
was then believed, and has since been proved,
that the lands were adequate to the construc-
ton of the roads. There was, however, pre-
Vailing distrust Of western secureties. Next
supervened the financial prostration of 1857
The time for performance of the conditions of
the act of Congress WAS limited, the people of
the State were exigeaut for railroads. The
corporations were disabled by the financial
condition of the country.
Responding to the imperious demand of the
people, the so-called loan amendment was
enacted by the first State legislature March
9th 1858, submitted to the people, and ap-
proved by 27,023 yeas, against 733 nays at
the general election in November, after full
discussion by the preas, and in assemblies
of the people.
The people were practically unanimoua. This
aot provided for loan OF State credit in aid of
the land grant railroads to the maximum limit
Of IS, 000000, i. O., 5l,250,G00 to each Of the
said companies, by the issuance of special
bonds of the State to be delivered to each com
pany, in several amounts of 100000, upon
proof to the governor that ten miles of its road
had been made roady for the superstructure
and au equal amount in tho came manner when
the roads were completed, equipped and opera
ting over the extent of road so graded /. O.,
sixty two and one-half miles of each road.
The act pledged 1.-THE faith and credit of the
State to tho payment of the interest and the
redemption of the principal thereof. 1t also
provided that each company should exhonerate
the State treasury from payment OF the princi-
pal and interest to accrue upon the bonds.
This exhoneration was secured; First, by
pledge of the net profits Of each road; second
by conveyance of l53, GOO acres of the first
lands to which each of the said companies
might become entitled; third, first mortgage
bonds of each company equal in amount to
the State bonds to be issued. The act further
provided to avail the securities in case of de-
fault by either or all of the companies.
The work went forward. The companies
more than complied with the requirements of
the act, and bonds of the State of tho deno
nation OF $1,000 each to the number
of 2275 in the aggregate were issued.
The work done WAS mainly paid for by the
transfer of bonds directly to the contract
ors. Tho reasons are obvious. Money was scarce
and capital distrustful of western securities;
but more than all, the sedulous and persistent
threats Of repudiRtion, discredited the bonds
TO such degree that they never acquired n
market value--I may add here that the organ
and prognosticator of repudiators was the st.
Paul Daily NiRHeSo,iGa, the leading Republi-
can paper of the State.
The result followed that the 80 called" loan
OF State credit, rather embarrassed than bene-
fited the enterprises. because the bonds could
not DO negotiated. The onmpanies failed of
necessity TO exonorate the State treasury. The
defaulted and suffering were third parties, the
contractors and others who made advances,
oonfdipg in the integrity of the pledged faith
of the State" Ecte Selah chamberlain, of
Cleveland, Ohio, whose bonds cost him par,
and who has been for twenty years appealing
for Justice from each successive Republican
legislature /. c., for the payment of over two
milliona of dollars.
Now look ut the attitude of the Democratic
aud Republican parties on this question.
The resolution of the Republican convention
passed ut its State convention July 2lst, 1859,
referring TO this subject, reads as follows:
ReS0l,oa FUth, That however men may have
originally differed upon tho adoption of the
hve million loan policy. we all unite IN
determination to preserve the plighted faith
meeting oil our obligations to the entire extent
of our honest Indebtedness; that in regard TO
the question of the taxation of the people to
pay the interest on the State railroad bonds,
we hold that the constitutional amendment
itself points out the mode by which that in
terest shall be met, that we will faithfully
carry out and abide by that amendment, ard
shall hold the railroad companies to strict
compliance Herewith, aud that We shall oppose
all further legislation upon the subject until
default and forfeiture shall have been made on
tho part of the companies.
The Democratic resolution on the same sub
ieot passed by lite State convention, reads as
follows
Proceedings Democratic State Couvention
Aug. Is, 1859.
Mr. Van Etten, from the committee on reso-
lutions. presented the platform. in which was
the following resolutions;
Thirteenth resolutiou-That Il Is the duty
of the people of Minnesota to preserve invio-
late the faith aud credit of the State. Tha.
tho doctrine of repudiation announced by the
Republican party is one which is abhorrent 60
the Democracy aud must receive the condemna-
tion Of the honest masses. That we pledge
the Democratic party that nyinnesota shall
honorably and promptly meet all obligations
resting upon her. ard we further pledge the
Democratic party TO the following:
First-To effect ga equitable arrangement
with the land grant rsitroad companies by