The Wellington enterprise. [volume] (Wellington, Ohio) 1867-188?, 1883-02-21
The Wind and the whiriuind.

ALABAMA long ago earned the r1Qnt
to be classed among the ''robber States
repudiation like Tennessee, and now the
Treasurers of the two States have gone
up together in a whirlwind of embezzle-
ment- Treasurer Vincent and Treasur-
er Polk learned their lessons of honesty
from the I.eople they served, and If now
the people suffer they have only to
thank themselves and admire the docil-
ity of their pupils.
At the close of the Rebellion the State
debt of Alabama amounted to about Sc, :
600, 900 exclusive of 800, 900 for unpaid
interest and something like S13. 0UO,O00
contracted in aid of the Rebellion. In
1865, when the reconstructed State
Government went into operation, the
debt was reported at 81, 504. 399, the
increase beinT mainly due to the issue
of new bonds. for defaulied interest
The Provisional Legislature of 1867,
-however. which was ~overwheimfngly
Democratic. had made large prospee-
tive increase of the debt BY the enact
ment of laws granting aid 10 railroad
companies, TO be given 10 each in the
shape o. State Endorsement of railroad
bonds as fast as certain portions of the
respective roads were completed. The
VII Gu sue
ceeded in 1867, and the Democratic
administration which came into power
in 1870, carried out the policy thus in
itiated. and recognized the validity of
the railroad debt that had been created.
1t had not been the work of "carpet
baggers" or Republicans and. with the
exception OF about 90, 900 in bonds to
one railroad, the valid ty of the debt
was not questioned by the State author
tiles until the Democrats returned to
power in 1874 under circumstances that
led them to expect to retain control of
the State for long time.
The interest, however, had to q con-
siderable extent been defaulted for three
or four years be ore that time. In 1878
the direct debt of the State was S11,-
S74, Ill and the railrc ad debt S17,11O,-
900, and in that year the holders of rail-
road bonds indorsed by the State, to the
amount of 81, 76s, 900 and bearing eight
per cent interest, were induced to
change them for 81, 1872, 900 in bonds
bearing seven per cent interest in coin.
In 1876 another compromise" was eff
fected. under which the 81, 192. 900 in
seven per cent. coin bonds were surren-
dered in exchane ee for 1896, 900 in bonds
bearing five per cent. For three years
ehO hOAoOAo hdo iCCClNCu uO iutcE0ots duN
in that time, in addition to the loss of
interest, SI,172, 900 of the principal sum,
or eighty-seven per cent of the whole,
had disappeared in this one batch of
railroad bonds, by the easy process of
repud alton. -'T ~
In 1874 the Democratic State Govern
ment compromised" another lot of
bonds amounting to 80, 800, 600, bearing
interest at eight per cent, by issuing n
lieu thereof 81 900, 900 of new bonds at
five per cent, and in 1876 the State con-
fiscated nearly half the interest on the
1000. 600 by reducing the rate from
five per cent. to two per cent for five
years, three per cent. for five years,
fCur per cent. for ten years and FIVE per
cent for ten years, and brayely repudi-
ated all interest mp to January /, 1877.
In 1874 the State, having loaned $2,-
600. 600 of its eight per cent. bonds to a
railroad company, proposed to pay the
same By transferring TO the bondholders
its lien on the land grant belonging to
the company, and this proposition was
reported in 1876 as having been ac-
cepted by the bondholders; but in 1877
this two million loan was classed as
''unrecognized by the State.' There
were also 81, 705. 900 of bonds indorsed
by the State and issued to various rail-
roads, which were laid on the shelf by
simply re using to recognize them,
and the direct bonded debt was scaled
down from 81. 416, 800 to 81, 127, 7O9, by
VIII ch operation the State robbed its
creditors of $2S9, o n more -s--1
The bonded debt direct and by in
dorsement, of over S2S, 600. 900, for
which the State of Alabama was legally
and morally liable in 1S74. was in the
course of five years of Democratic tao
tics of regulations called down to about
one-third of that amount, in addition to
the confiscation of accrued interest and
the reduction of prospective interest for
the whole Ii e-time o. the bonds S..
The Mobile Regisler of january Is,
1892, gave The total Indebtedness OF the
State at only 3 III 800, and two-thirds
OF this as bearing the read iusted rate of
two. three. four and five per cent, in
creas'ng at intervals OF five and ten
years.
Such has been the example Of the
great and prosperous State of Alabama
in the way OF repudiating debts for the
paymentos which the public honor was
pledged. The money stolen by Treas
urer Vincent is hardly one per cent. of
what has been stolen by the State, and
he pro- badly thought that was no more
than his equitable share of the swag.
1t will he amusing to read the dispatch
es of the Governor in trying to get
Vincent arrested, and the homilies of
the newspapers on the exceeding sin
fulness of appropriating other peoples
money. Vincent is a representative
man. He has merely followed the ex-
ample of his State in repudiating. 1t
would be ucky for the State if it could
follow his example in running away
Detroit Post and Tribune.