The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-06-06
SOUTHERN STATE BONDS.
A PLAN FOR THE REDEMPTION OF
PAST DUE OBLIGATIONS.
A Proposition Made by Morton, Bliss
81 Co., OF New York-The Equity Of
the Matter Discussed--A Plea to the
Solid South.

NEw York, June 5.-Eyery effort is be-
ing made TO have the southern States, who
repudiated their bonds, redeem them. A
letter has been sent TO Gov. Scales, OF
North Carolina, In behalf OF Morton, Bliss
& Co., who hold s0,50O,OOO face value) Of
the unredeemed and repudiated bonds Of
that State, suggesting plan TO bring about
a redemption to all these bonds of the
southern States. Tho letter, after
stating that II is written in he.
half Of holders OF North Carolina
special tax bonds, recalls the meeting
in New York, after the war, Of commission.
ers from the southern States who effected
a basis OF settlement OF their obligations
resulting in large investments subsequently
in that section. II then continues Sub
scquently, new liabilities were contracted
and the obligations then issued have since
furnished the subject Of hostile enactments
by the southern Legislatures The time
has now arrived when the financial inter
osts Of those States impcl change
in this policy. The radical disre-
gard Of the rights Of tho bondhOlders
arose in part from political hostility TO the
party which was dominant when the &c
curities were issued, and part from the
conduct Of some of the State agents en-
gagged In their negotiation. Whatever
paliation may have then existed for this
adverse legislation, innocent investors
have been the principal suilererers. The
sense OF this injustice has had time 10
mature, and the equities OF the bond
holders arc no longer obscured
by political or individual feeling
Moreover, the conditions Of public affairs
have materially altered in the twenty years
since the faith and credit Of these States
were pledged TO the payment Of their
bonds. Industrial and not partisan qucs-
tons are now the subjects Of political con.
test. The southern States are identified
In national affairs with the promotion
Of a defined fiscal policy. Tho adop-
ton OF this policy by the ma
ton ut large must naturally be
influenced by the results which its pro-
moters have achieved In the admlnistra-
ton Of their own domestic finances. The
mcager development Of the southern
States Is the visible result of their disre-
gard of public contracts aud the conse.
qucnt rcpulsion Of capital. This practical
outcome OF their financial system does
not commend tho views Of the tariff
which they PROFOUND as the keynote
Of national prosperity. The expOnenB
Of u financial reform cannot attain
success without the recognition Of the
force Of contracts, the foundation Of all
industrial progress. There Is another
phase Of the subject which should be
equally patent with those who desire the
south TO become the important factor in
shaping the national policy. The southern
States, acting In political unison, bid
fair Ia he tho most influential single
element in the federal councils This
position cannot be maintained by section
Of the union that persists in defying the
mandates Of the constitution. For what
ever doubts may arise concerning an
effective process for compelling obedience
IN the prohibition against passing laws inn
pairing contracts, none can exist respect
ing the intrinsic force aud moral obliga-
ton pertaining 10 the prohibition. A
section Of the country which do
| lihcrntcly nullincs the constitution
cannot successfully aspire 10 dominate
tho national administration. No nation
has ever permitted such = practical satire
upon liz own institutions" Tho letter
then suggest, that the Governor Of each
dcinultng Safe send u representative 10
New York 10 meet n representative Of the
bondholdors, and that tho President be-
asked to appoint n delegate 10 represent
the holdings Of the United States; that n
board Of arbitration be chosen 10 award
fair terms for rcfunding subject TO ap-
proval by the State Interested.