Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1881-10-31
THE BOND QUESTION,
An Eastern Paper, Which, for a Wonder,
Makes q Clear Statement Of the Minne-
sofa Situation.

An Eastern Paper, Which, for Wonder,
Makes q Clear Statement Of the Minne-
sofa Situation.
Boston Herald, Oct. 27.1
MNNEsoTA's DEBT.
There is still considerable misunder-
standing at the East in regard to the sad
justment" of that portion OF the state
debt of Minnesota which the governor
has called the present extra session of
the legislature to consider. Our New
York namesake has just spoken of the
case as one wherein "a debtor who wants
to pay is prevented from doing 80 by the
courts" This is conspicuously inexact.
The compromise act passed by the legis-
lature last March, proposing to devote
the proceeds of portion OF the state
lands in the payment of bends that had
been "adjusted'' with the cred
itors atsffty cents on 81, has been de-
clared unconstitutional by the supreme
court. The same authority also rendered
imperative the amendment to the state
constitution, adopted in 1860, requiring
the settlement of the disputed bonds to
be submitted to vote of the people, by
declaring it repugnant to that clause in
the constitution of the United States,
which prohibits the impairment of the
obligation of contacts. The court is not
opposed to honest payment, but is against
juggling and unlawful expedients.
The bonds in question are known as
the Minnesota railway bonds, The prin-
cipal amount is s2,275, ,OOO They were
issued twenty three years ago, and are
due in 1883. AS the supreme court has
decided that part due coupons draw in
terest, as well as the bonds to which they
are attached, the compounding reckoning
will raise the total amount of the debt,
on the first of December next, to $8,OOO,-
600. The holders of more than $1,000
600 of the whole issue of $2,275 900 de-
posted their bonds with the audi
tor, accompanied with written
agreement to accept in new bonds or
cash so per cent. of the surrendered
bonds and coupons, in accordance with
the act of last March. Many of the bond
holders have demanded the return of
their securities since the decision of the
supreme court, which demand has been
refused, as Gov. :Pillsbury states in lhis
message ito the legislature, 'son the
ground that the contract remains binding
upon the parties, the decision having af-
fected only the means of performance,
and that the bonds cannot fairly be with
drawn until the legislature shall have
taken action in the matter"
The holder of nearly one-half
the bonds has adhered to
his original offer, upon condition that
the adjustment be consummated during
the present year; and the governor says
there is reason to think the other bond
holders will adhere to similar terms of
settlement The debt would thus be
"honorably adjusted" as the phrase is,
at a saving to the state of about 81, ,000,-
600. Gova Pillsbury manfully says "My
individual preference is that every dollar
of the debt should be paid in full, princi-
pal and interest. believe that no course
short of this is consistent with the
honor and integrity of sovereign state,
so far as relates to its own voluntary
action" But, inasmuch as the holders
of the bonds have upon their own mo-
tion, proposed an adjustment upon more
favorable terms, he advises the accept
ance of the opportunity for "discharglng
the whole debt by partial payment, with
out any Necessary compromise of our
good name" The decision of the
court did not forbid payment upon these
terms. 1t only held the means proposed
for raising the money to be unlawful. The
contract, in the governors view, remains
obligatory upon both parties, and the
question before the legislature is simply
one of means, if it intends to pay the
debt. The obstructionists, however,
think that voluntary surrender Of one
hoR fho,r claim hy oro1iforu xr,hn houo
been kept out of the use of their money
for years, affords sufficient pretext for
cheating them out of the whole. That
Is the naked question before the people
of Minnesota, and the country is watch
ing to see how it will be met. For, pros
porous as this sturdy young
commonwealth now is, there
may come q time when it will
discover toIits cost the truth of Emerson's
shrewd aphorism; "Cheating is poor
business; you can repudlate but once"
But, far above this material considera-
ton, which should impel the state to
adopt the policy of honesty, stands the
moral obligation and the fair fame of our
people. There is no pretext that the debt
is not just and lawful one. 'lt was,"
says Gov. Pillsbury, sanctioned by the
direct and overwhelming vote OF the peO-
pie, and consummated under the solemn
form of a constitutional amendment,
The issue of no other bonds was so jeal-
ously scrutinized or so carefully guarded,
and it may well be questioned whether
any others have conferred greater bene-
fits upon the state.'' OF the ability of
the state to pay, there is likewise no
question. Its other funded debt is but
5000, 900, while the assessed value Of the
property, which is increas-
ing at rapid ratio, is
nearly $3.50, ,OOO,0 1t does not seem
possible that state largely settled by the
sons of honest sires can withstand the
fervent appeal of her upright and able
governor to perform simple act Of JUS
tice, which shall forever put at rest the
haunting spectre of reputation, and
place our young commonwealth irrevoca-
h1v in the sisterhood Of honorable states -