The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-06-06
BONDS0F THE DARK DAYS
AN EFFORT TO HAVE THE REPU-
DATED PAPER REDEEMED.


Morton, Bliss g. Co. Of New York Ad-
dress q Letter to the Governor of
| Appeal to the Possible Political
Influences of the Campaign.
NEW YORK, June 5.-Another effort is
being made to have the southern states re-
deem their repudiated bonds. The follow
ing letter has been sent to the Governor OF
! North Carolina in behalf of Morton, Bliss
a. Co., who hold $6,50O,O00 worth face
value of the unredeemed and repudiated
bonds of that State, suggesting a plan to
bring about redemption of all these bonds
of the southern states:
New YORK June 4, 1888,
To The Hon. Alfred NJ Scales Governor of the
state Of North Carolina:
SIR-The approaching popular canvass pre-
sents an opportune occasion TO the defaulting
| states of the union for ranging themselves on
| the side of restored credit and increasing pros
| peritY To contribute to this result have been
| requested to. address you on behalf of the
holders of North Carolina special
! tax bonds who have deposited
their securities with the United States
trust company for the purpose of enecting an
| equitable arrangement with that State. 1t will
| be remembered that after the civil war a com
mission, consisting of delegates from the south
ern states and representatives. of their creditors,
| assembled in New York city to devise
| plan for adjusting the public debts of
| those communities The deliberations of
| that commission We're instrumental in
| forwarding the settlements ~ hich were
| effected with several defauting states and the
| results of its labors attracted large Investment
| for the development of that section of the
| country. Subsequently new liabilities
contracted and the obligations then issued have
| since furnished the subject for hostile enact
| ments by the southern legislatures The time
| has now arrived when the financial interests of
this policy The radical disregard
| of the rights of the bondholders arose in part
| from political hostility to the party which was
| dominant when the securities were issued, and
| in part from the conduct of some of the state
agents engaged in their negotiation. Whatever
| palliation may have then existed for this nd
verse legislation innocent investors have been
| tho principa, sufferers. The sense of this
injustice has had time to mature, and the
equities of the bOndholders are no longer
obscured by political individual feelings
Moreover. the condition of public affairs has
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 questions are now the subjects of
political contests The southern state ide I'll
| fled in national affairs with the promotion of a
defined fiscal policy. 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 meager development
| OF the southern states is tire visible
| result of their disregard of public contracts,
and the consequent repulSion of capital This
practical outcome of their financial system does
not commend the views Of the tariff which they
PROFOUND as the key note of national prosperity.
The opponents of a financial reform cannot at
tain success without the recognition of the force
| of contracts the foundation of all industrial
progress. There is another phase of this sub
| Ject which should be equally potent with those
| who want the south to become an important
| factor in shaping the national policy. The
| southern states, acting in political unison,
| bid fair to be the most influential sin
| gle element in the federal councils
This position cannot be maintained by a
section of the union that persists in defying the
mandates of the constitution, for whatever
| doubts may ARISE concerning an effective PRO
| cess for compelling obe0ience TO the prohibi-
| ton against laws impairing contracts, none can
exist respecting the intrinsic force of moral obi
| CATION pertaining to that prohibition. A section
| of the country which deliberately nullifies the
| constitution cannot successfully aspire to
dominate the national administration. No ma
ton has ever permitted such political sur upon
| its Institutions From the most selfish
| point of view the situation is too plain
| for argument. Conventions have lately
| been held in several southern
states to further various plans of industrial
development These movements commence at
| the wrong cad. Capital cannot be tempted by
| the most glowing Inducements presented by
| discredited communities Investors cannot be-
| lieve that citizens who are continually voting
destruction to their obligations taxpayers
will respect their individual liabilities.
These statements are not made in any
invitiOus sense toward the debtor states. The
boudholi crs recognize that both parties TO
| those contracts are entitled to consideration,
| while in the highest of form it may not be just
| for the creditors to insist on the full measure of
| their claims, neither is it admissible that the
! debtors should avoid their liabilities. Such
controversy is emiuently susceptible of solution
| by arbitration To that end am authorized to
| make tae following proposition: The executive
| of each defauting state to appoint a delegate
| To meet representative of the bondholders.
| The President To be requested To name an officer
of the federal government who shall represent
| the large amount of 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 board
| of arbitration. This board to consist of three
| members, one to be chosen by the agents
of the states and one by the agents Of the
| bOndhOlderS, tue third to be selected by the
| other two. The board of arbitration to make
| awards on fair terms of settlement OF
the non-interest paying debt of tue
| states represented. The awards to be
| ratified by the proper authorities of
| the southern states and thereupon the debts to
| be funded upon the agreed basis. The bond
holders are advised that stong sentiment ex-
lists in the south favorable to the advancement
| OF its prosperity by the above methods. Con
| certed action among the executives of the
a state with the historic prestige of North Caro-
| lima. In conclusion, may advert to tie fact
| that the greater proportion of the debts of these
states has already been converted into
| interest paying obligations. The conversion
| of the amount still discredited would
in the present condition of financial investments
| be- promptly followed by the advancement of
! southern enterprises in the credit centers of the
| world Past experience dem onstratas that the
| property holders of the south, As well as its
| laborng population, would be benefited by
restored credit to an extent far beyond any ad
ditional taxation. In full confidence that these
considerations will be potent with the able
| statesmen of the south, | have the honor to
| submit the foregoing proposition for an express
ADnrOpriAta action
| by the constituted authorities Of the state
am yours very respectfully,
EDWARD l.. ANDREWS.
nprcnNl,e I'll rcr1OAn