The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1888-06-12
OH, HOW THEY SQUIRM
Because Their Bogus Bonds Are Not. Re
deemed.

NEW YORK, June 5.-Another Efforts being
made to have the southern states redeem their
repudiated bonds. The following letter has
been sent to the governor of North Carolina in
behalf of Morton, Bliss & Co., who hold six
and a half millions of dollars worth face value)
of unredeemed and repudiated bonds of that
state, suggesting plan to bring about re-
demption of all these bonds of the southern
states
NEW YORK, June 4, 18SS--Hon. Alfred NJ Scales
Governor of the State of North Carolina, Sir The
approaching popular canvass presents an opportune
occasion to deaulting states of the union for array
ing themselves on the side OF the restored credit
and increasing prosperity. 70 contribute to this
result have been requested to address you in be-
half of the holders of North Carolina special tax
bonds who have deposited their securities with the
United States Trust company Tor the purpose of
enectlng an equitable arrangement with that state
1t Will be remembered that after the civil war o
committee, consisting OF delegates from the south
ern states, and representatives of their creditors at
seinbled in New York city to devise plan for ad-
justing the public debts of those communities
The deliberations of that committee were instru-
nentailn forwarding settlements which We're eff
feeted with several de4aulting states and those
suits of its labor attracted large investment for the
development of that section of the country,
Subsequently, new liabilities were contracted
and Obligations then issued have since furnished
the SUBJECT OF hostile enactmens by southern legs
latures. The time has now arrived when the tinan-
clal interest of those states mpel changes in host
ity The radical disregard of the rights of the
hostility to the party which was dominant when
the securities issued and i'll part from the CON
duct ofsome of states engaged in their negotiations
Whatever palliation which may then have existed
for this adverse legislation. innocent investors have
been the principal sufferers The sense of this in
justice has had time to and the equities of
landholders are no longer obscured by political
or individual feelings. Moreover the condition of
public affairs have materially altered in the twenty
years since the faith and credit of these states
pledged to the payment of their bonds. Industrial
and not partisan questions are now the subjects of
political contests.
The adoption of this policy by the nation at large
must naturally be influenced by the results which
its promoters have achieved in the administration
OF their own domestic finances. The meagre devel-
opmen of the southern states Is the visible result of
their disregard of public contracts and consequent
repulsion of capital Exponents of financial reform
cannot attain success without the recognition of the
force OF contracts the foundation of all industrial
progress.
would be equally potent with those who desire the
south to BECOME an important factor in shaping the
national policy. The southern states, acting i'll po-
itioal unison bid fair to be the most influential
single element in the federal councils.
The position cannot be maintained by assertion of
the union that persists in detying the mandates of
the constitution. Far, whatever doubt Way arise
concerning effective process for compelling ODE
dience to the prohibition against passinglaws in
trinsic force and moral obligations pertaining to
that prohibition; The section of the country
which deliberately utilities the constitution cannot
successfully aspire to dominate the national admin
stration, No nation has eyer been permitted such
practical satire upon its own institution. From
most selfish point of view the situation is too plain
Conventions have lately been held in several
southern states to further various plans for industrial
development. These movements commence at the
wrong end Capital cannot be tempted by the most
glowing inducements presented by discredited CON-
munities and investors cannot believe that ciz ms
who have continually voted destruction to their
obligations as tax payers will respect their indvid
ual liabilities. These statements not made in
any lnvlduous sense towards the debtor states The
bond holders recognize that both parties to these
contracts entitled to consideration while i'll the
highest forum it may not be Just for creditors to in
sist on the full measure OF their claims,
neither is it advisable that creditors should
avoid their liabilities Such controversy is
eminently susceptible of solution by arbitration To
that end we are authorized to make the following
The executive of each defaulting state to appoint
q delegate to meet representative of the bonds
holders the president to be requested to name an
officer of the federal government who shall repre-
sent large amount of the southern state bonds
held by the United States. These agents to meet in
New York and to submit their respective views of
equitable arrangements to O board of arbitration.
This board to consist of three members, one to
De G no py te agehes ol 1he STATES and one
to be selected by the other two. The board of arbi-
tration to make awards of fair terms ofsettlement of
the nonnerest paying debt of the states represent
ed, the awards to be ratified by the proper authori
ties of the southern states, and treupon the debts
to be funded upon an agreed basis The bond
holders are advised that strong sentiment exists
i'll the south favorable to the advancement of it's
prosperity by the above methods.
Concerted action among the executives of the
south may be appropriately initiated by state with
the historic prestige of North Carolina.
III CONCLUSION, may advert TO the faot that o
greater proportion of the debts of these states has al
ready been converted into interest-paying obliga-
tons. The conversion of the amount still dscred-
tied would in the present condition of financial in
vestments be promptly followed by the advance
ment of southern enterprises in the credit centers
of the world, Past experience demonstrates that
the property holders of the SOUTH well as its la
boring population, would be benefited by restored
creditto an extent far beyond any additional taxa
ton.
In full confidence that these conditions will be
potent with the statesmen Of the SOUTH have the
honor to submit the foregoing proposition for ex
preston of your views and for appropriate action by
the state. am, yours very respectfully,
: Mn. AN-.,r