The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-06-06
SOUTHERN REPUTATION.
Another Effort TO Induce the Defaulting
States 10 Settle Their Honest Debts

NEW YORK. June 5.-Evsry effort 10 being
made to have those Of the Southern States
which repudiatsd their bonds to redeem them.
A letter has been sent to Governor Scales, Of
North Carolina, in behalf Of Morton,
Bliss g. Co., who hold $500. 900
worth face value) of the unredsemsd
and repudiatsd bonds Of that State.
suggesting plan to bring about redemption
OF all these bonds of the Southern States The
letter, after stating that it il wtten i, behalf OF
holders Of North Carolina special-tax bonds. re-.
calls the meeting in New York, after the war.
OF commissioners from the Southern States who
effected basis of settlement of their obIiga-
sione. resulting in large investments subse-
quently in that section. It then continues:
Subsequently, new liabilities were contracted and
the obligations then issued have since furnished the
subject of hostile enactments by the Southern Legis-
laturese The time has arrived when the imam
cal interests of those States eompe, change in this
pondholders arose, in part from political hostility 10
the party which was dominant when the securi
conduct si som. and o the sss
engaged in their negotiation. Whatever psllation
may have existed then existed before the adverse leg
pal sufferers. The sense Of this injustice has had
time to mature and the equities of the bondhoders
no longer obscured by political or individual feelings
Moreover. the condition of public affairs has mate
rally altered the twenty years since the faith and
credit of these States were pledged to
the payment of their bonds. Industrial
and not partisan questions now
the subjects Of 9olitical contest. The Southern
motion of 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 meagre development of the Southern
States is the visible result of their disregard of public
capital. This practical outcome of their
financial system does commend
the views of the tariff which they PROFOUND as the
keynote of national propriety. The opponents of q
financial reform cannot attain without the
recognition of the force of contracts the foundation
of all industry and progress. There is another
| phase of this subject which should be equally
potent with those who desire the South to be-
| come the important factor in shaping the national
| policy. The Southern States, acting in political
ment in the federal councils. This position cannot
be maintained by section of the Union that persists
|, IN defyng the mandates Of the Constitution For.
whatever doubts may arise concerning an effective
process for compelling obedence to the prohibition
against passing laws impairing contracts none can
exist respecting the intrinsic force and moral obea-
tion pertaining that prohibition section of the
country which deliberately nulfes the Constitution
cannot successfully aspire to dominate the national
administration. No nation has permitted such q
practical satire upon its own institutions.
The letter then suggests that the Governor of
New York to meet representative Of the bond
| holders. and that the President be asked to ap-
| point delegate to represent the holdings Of the
| United States, and that board of arbitration
| be chosen to award fair terms for refunding,
| subject to approval By the States interested.