National Republican. (Washington City (D.C.)) 1872-1888, 1886-06-28
THE CONFEDERATE DEBT.
The "stupendous Blunder" Committed
by the Federal Government-LiabIe
for Damages to Holders OF the Con-
federate Debt


Especial Dispatch to the Boston Journal
WASHINGTON, June 25.-The President
continues TO veto the bills TO pension Union
soldiers, and the House committee on war
claims has still under consideration the bill
to aid in the payment of the confederate
debt. Judge William Fullerton to-day
submitted to the House committee on war
claims a brief on the bill now pending be-
fore that committee, which, he claims,
would aid in securing the payment of the
confederate debt. The brief is a short one.
Some of its main propositions are these:
1t is not claimed that the United States be-
came liable for the confederate debt, either as
a contracting party or because It had any
agency in creating 1t. The seeded states,
however, severally possessed power to con-
tract debts independently OF the United
States and to provide the means for paying
them. What the states Of the Union could
individually lawfully do any number OF
them combined may also do, and become
Jointly and severally liable for their obliga-
lions. No want Of power to contract
joint liability by the confederate states can,
therefore, be urged against the validity OF
the confederate bonds or the liability Of the
states that issued them. Nor does their
liability to pay such bonds depend
out OF the Union when they were
made, nor whether they possessed the right
| or the power to secede from the Union. II
In the Union, Notwithstanding the at
tempted secession, then their original
powers under the federal constitution were
In full force; and, II out of 1t, then they
were separate confederacy, with all the
attributes of an independent contracting
power. After the war, the states which
had seeded returned to their allegiance.
The money which they had borrowed had
been used for purposes which they ap-
proved.
Between the holders OF the confederate
debt and the states creating II there existed
a binding obligation with which no third
party could interfere, much less discharge.
Notwithstanding this, the United States,
by an exercise Of arbitrary power, In the
constitutional amendment, provided that
| "neither the United States shall assume nor
| pay any debt incurred in aid of Instruction
| or rebellion against the United States, but
| all such debts, obligations, and claims shall
be illegal and void.n This prohibitory
| constitutional clause, 80 far as IL re-
strained the United States from assum-
| ing or paying debt created for It's de-
struction, was wise one. But In declar-
| ing at the same time that the confederate
states which had created 1t should not pay
their just and acknowledged liability, the
| government not only acted unwisely, but
committed stupendous, blnuder. 1t not
only relieved the guilty party from just
liability, but 1t was q wanton destruction
OF debt 1t did not own and with which II
had no rightful concern. The only reasons
that can be assigned for passing this amend
| ment to the constitution are without
any force whatever when urged In behalf
OF the United States. The confederate
states neither asked for nor were entitled 10
exemption from their liability to pay 1t. 1t
follows that the effect OF this amendment
TO the constitution was, first, to eXtlnguish
the confederate debt, and secondly, at the
same time, and as consequence, to create
a new liability for damages against the
United States, measured by the value OF the
property so wrongfully destroyed. The
liability here asserted, therefore, is not fol
the confederate debt, but for the damages
inflicted upon the holders of it for It's ex,
tinguishment.
This, in brief, is the argument presented
by Judge Fullerton, who states that he rep
resents "the creditors of the so-called con.
federate states OF AMERICA and the most
astounding fact In connection with II IL
that the Democratic House is considering q
bill which has such q possible meaning, aud
consents to receive arguments upon 1t from
the recognized attorney OF the English
| holders OF the confederate debt.