Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1881-03-17

| allowed the payment OF interest," on their
bonds to default. After some years OF
shutting they compromised the defaulted
interest account by an issue of new bonds.
Then they began to default again. Then
they brought pressure:to bear upon their
creditors, and by threats and persuasions
got them to accept a compromise of fifty
cents on the dollar. No sooner had this
compromise being arranged than they re-
GREETED it, and at once began the old plan
of defaulting. The dishonest policy
into which they had drifted newt
ably led them much further than
they had at first anticipated. The
population of half their obligations neces-
sarily suggested more complete repudia-
ton. Bat as the city charter bound them
to pay their debts, and as there was no es-
cape so long as that charter was in exist
ence, they went to the Legislature and OBJ
tanned the passage of a bill abolishing their
charter, and at the same time they secured
| the enactment of new instrument consti-
tnting the city government taxing dis
trict, and guarding against all future re-
turn to honest courses by providing ex.
pressly that the city authorities should not
recognize the old debt in any way what
ever. a more thorough going piece of mu-
nicipal rascality was in fact never devised.
It was in effect an open notification to all
the world that the people of Memphis
were rogues and swindiers. There was alb
solutely no excuse for the infamy. The
city has an assessment roll aggregating
| $40, 00O, 600, and it has been estimated
that tax of Il per cent. would have COW
cred all the necessary expenses of the gov
eminent, including the payments on the
debt But the people of Memphis had
been seduced into the downward path,
! and they could not arrest their descent IN.
til they had fully consummated their shame
and dishonor.
1t has been very justly observed by a
Southern man whose indignation has been
aroused by this municipal swindle, that
"this novel and ingenious legislative repu.
" diation is without precedent even in the
'most advanced inventions of fraud, and
sis in utter derogation of common hon
"esty. 1t not only exercises the power
forbidden by the Constitution, of i'm
"pairing the obligation of contracts, but
sit actually prohibits the salutary action
''of the Courts in the exercise of man.
"damus to compel official action by tax
alton where judgments have already been
recorded in the State and Federal Courts,
illegal remedies never before questioned
"under any form of government" In
fact the United States Circuit Court de-
clared the legislation referred to unconsti-
tutional, and appointed receiver to take
charge of the property of the bankrupt
city. Under an appeal to the Supreme
Court this decision was set aside. and it is
this decision of the Supreme Court in the
Memphis case which is just now be-
ing referred to as justification for the
preparation of similar knaveries to those
committed by Memphis.
| We shall at another time have something
to say concerning the Supreme Court de-
cision, but at present it is not necessary to
examine it +; for it is perfectly clear that
no matter what has been held by any
| Court, no Court can possibly relieve the
people of Memphis from the inefaceable
stigma their unquestionable dishonesty has
fastened upon them. No Court has the
power to consecrate crime, though it
may by indirection assist knaves to
evade their responsibilities. The people
of Memphis owed debt, and it was their
duty to pay it. No amount of wriggling
and squirming and pettifogging can sur
mount that fact. There IS only one hon.
est way to get rid of debts, and that is by
paying them. Honest men and honest
cities do not seek to cheat their creditors
do not ask the Legislature to help them
repudiate; do not cast about for the
means of Sinking their financial response.
bilities. Memphis has disgraced itself,
hand published its dishonesty abroad. That
is the plain truth of the situation, and no
Supreme Court decision can offset it. 1t
owed, and it refused to pay. 1t was pros
porous, and it swindled its creditors.
There is no line of demarcation between
the scoundrelism of individuals and the
scoundrelism of corporations. Knavery is
knavery, no matter under what circum-
stances perpetrated. Swindling is swim
ding everywhere. To repudate an honest
debt is dishonest, no matter who does it,
| Judge Field, in this same Memphis de-
cision, observes sit is certainly of the
highest Importance to the people of
every State that it should make provi-
"sion, not merely for the payment of its
town Indebtedness, but for the payment
"of the indebtedness of its different
municipalities. Hesitation to do this is
weakness refusal to do it is dishonor.
Infdelity to engagements causes loss of
character to the individual; it entails
reproach upon the State" OF the truth
of this there can be no question among
upright men, and whoever therefore under
takes to assert that this or any other city
would do well to follow the example of
Memphis, is giving advice which deserves
to be characterized as infamous which is
an insult to all honest men and which
should be rejected with scorn and indigna-
ton. No city can afford to indulge in
municipal rascality, nor would the fact that
it was possible to do SO with material i'm
punity render it any the less Objectionable.
| Cities, like men, must fulfill their obliga-
tions, as the New York Erening Post says,
"not because it is good policy, but be-
cause it is right
/ SOCIALIST DEMONSTRATIONS.
The accounts of the Socialist demon
strations held in New York and Chicago