The morning call., 1892-08-18
SOUTHERN DEBT AND FINANCE.

A writer whose object is to show the
evil of negro domination at the South bases
a long Indictment of the negro and the
carpet bagger upon the fact that in few
years after the war the debts of the rebel
States increased from $40, 4l5,00o to $685.
92S.0 600. In one point OF view the TACT really
makes for the other side.
Before the war tTie States of the South
we're nothing but vast plantations, inhab-
tied by slaves and their masters. There
were few cities here and there, small in
size and separated by long distances. But
outside of these there were no communities
of energetic, enterprising people such as
existed at the North. There was practic-
ally no development of the resources of the
country and no attempt at development,
and in consequence there was little employ
ment of capital in public improvements.
A few railroads built with Northern money
and run by Northern men iutersected the
country on geographical lines, but the
region through which they ran was so
sparsely settled that the stations were often
designated by numbers, as Turnout No.
H." or Dry Creek No. g." On these rail-
roads there was little way travel. 1t was
difficult for negro to obtain leave to alb
sent himself from his plantation, the poor
planters visited Washington and the North
once or twice a year at most. The tempta-
tion 10 extend the Southern railroad system
was slight.
II was quite often proposed at meetings
Of the State Legislatures that enterprises
should be undertaken TO provide some fer
tile section with an outlet, or to reclaim
drowned lands, but the fatal experience of
the Mississippi bondholders had closed the
financial markets of The world against bor-
rowers who were less favorably known
than the States Of South Carolina and
Georgia, and the proposed new issues of
bonds never materialiZed. The South did
not run into debt for the best reason in the
world-beeause it could not and because IL
it had been able to find people to trust it
there WAS no strong demand for develop
ment.
All this was changed when slavery was
abolished. A smart active, enterprising
set Of NoTtherners went into the South. and
began at once TO agitaie for modern inn
pToVements It is the fashion TO call them
carpet baggers, but II their clothes could
have been contained in carpet-bag, they
had wits which could not be so easily be-
slowed. They insisted on railroads. canals.
drainage systems, the opening Of mines, the
extension Of the cotton-leId; and, TO accom-
plsh these aims. they got the Legislatures
to authorize bond issues, and actually sue
eeeded in marketing some of the bonds. 1t
was thus that tie debt Of the States lately
in rebellion was swelled from seventy-six
to two hundred and ninety millions. There
was q great deal Of plunder in tile enter
prise; some Of the carpet baggers were
rank boOdlers. who looted the Southern
hrfr II,
the condition Of the Southern States at that
time. when almost every man of substance
was disiranchsed and impoverished, and
the voting power was conferred on a race
which was Incapable OF using it wisely, this
scandalous robbery was probably inevitable.
But the main purpose of tie carpet baggers
W as beneficial; as is proved by the fact that
now, when the breed has become extinct
the Southern States continue when they
can to incur moderate debts for purposes of
general utility and pressing urgency.
The Southern States are in the stage
through which the grain states Of the North
passed 40 years ago. Illinois. Ohio, Indiana,
Wisconsin, and subsequently Minnesota,
all borrowed money to develop their re-
sources, and when the coupons fell due,
were unable to meet them. AS a rule, they
did not deny the debt. nor seek to eyade pay
ment by legal trick. They admitted their
liability, and simply told their creditors that
they could not pay. The town Of Water
town, in Nnconsin, showed that in one
way and another 1t was bonded for more
than the total assessed value Of its taxable
property. What happened? The eredi-
tors waited The rapid development of the
country swelled the means of the Western
people; in time they became able to pay,
and they paid. 1t seems incredible that at
one time. not very long ago, the bonds OF
| ths State Of Illinois were offered In New
York at 80 cents on the dollar without
takers; but those who have read Sydney
Smiths amusing account OF his interview
with a Pennsylvania visitor whom be in
Yited to hand over his watch or his oYereoat
In part satisfaction OF overdue interest on
Pennsylvania bonds. will appreciate how
| mutable credit is. Twenty years from now
the Southern States will probably be work
Ing out Of debt as vigorously as the North
| ern members of the Union