Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1896-10-01
PRESS COMMENTS.
Where Reputation Is Popular.
cattle Observation-Disclosures

There Is acertain section Of this coun
try where the Chicago platform will
It's pronunciamento in favor Of a cheaI
doiiar ana consequent Reputation o
deots, naturally strikes responsive
chord. Ihere is nothing strange In thu
1act tnat Arkansas has shown a heavy
Democratic majority In the state cleo
ton, and 1t would not be surprising Il
the state rolled up a still larger on,
In November. The election Of Bryan
would be complete vindication of the
ilhanclai poilcy of Arkansas in the
treatment OF her own creditors.a policy
IN winch she has had several imitators
also in states now counted as being In
the Bryan column Flat Reputation OF
debts. or the qualified reputation in
the form of scaling" or ''refunding, >
mas been stock performance in many
or the southern states, and national
assistance in another scaling down will
naturally be popular, as it will enable
repetition of the programme, with
Just sufficient variation to lend addi-
tional interest toeveryhody but the I'M
fortunates who have trusted in a non
existent state honor.
Arkansas has n nroud record as n
repudiator of state Bonds. In 1869 that
state had a heavy Indebtedness, con-
tracted as follows: Bonds issued to
state banks, for which the state re-
ceived stock, 81 .225 600; bonds issued on
account of ordinary state expendi-
lures. $3.50 900; bonds issued in aid OF
the construction of railroads. $500, coo
bends issued for construction of state.
leVies, S2,000,000. The state defaulted
IN payment Of interest for several
years. ana finally on September LIST,
1854. adopted a constitutional amend
ment fatty repudiating 81, 900 of
the amount of the debt. The credi-
tors OF the state. who had paid cash
at par for these bonds, were left with
out a remedy, for no state can be s,ie,,
for debt without its consent. This
record of dishonor and bad faith has
been closely paralleled.
In June, 1883, Mississippi Incorporated
the Union Bank of Mississippi. AMI
issued S5.00o,0eo of bonds, taking stocl,
in the bank. These bonds were sold
for cash at par The bank failed and
the state deliberately repudiated its
bonds in 1872. ana has never paid the
holder" one cent since. Two millions
OF state bonds We're sold in 1880. at a
premium amounting to $3.50 900 Tho
money was put into stock of thu
Planters bank. which also failed. anG
in 1852. by popular vote. these bonds
were also. repudiatcd The constitu
ton of 1873 expressly forbitis any fut-
ture legislature from paying this hon
est debt
Florida. during its territorial exis-
tence. incurred bonded Indebtedness
of $4,000 900. These bonds We're coolly
rcpudiated in 1910. Notwithstanding
this exhibition of bad faith. it sue
ceeded in 1855 in floating another bona
issue of Sl,ooo,00 which 1t also latei
repudiated. Both issues of bonds were
sold at par
The bonded Indebtedness of Alabama
in 1861 was S3.4i5,000. In 1865 it was
1880, 062. After the war large amounts
of bonds were issued in aid OF railroads,
$4,000 900. In 1874 a fund
ing bill" was passed by which new
bonds to the amount of $l2.57i 900 were
issued to replace bonds of the fac,
value of s25. i6447o Counting overdue
tlittitSi. tIliS reputation amounted To
$4,000, GOO
The bonded Indebtedness of North
Carolina amounted to s2l 500, eco. In
1876 ''refunding bill'' passed by which
the old bonds We're retired and new
bonds issued at the rate of 40 cents in
new bonds for every dollar Of the bonds
issued prior to May 90 1861, and -
cents on the dollar for bonds issued be
tween 1866 and 1863. In 1879 there was
further scaling, the bonded indebted
ness having greatly increased. Under
this scaling" $12.S05 600, with interest
was repudiated, and the remaining in
debtedness scaled down from s1S.S72.-
6i5 to 5000. 612. North Carolina ought
certainly to cast a strong vote for
Bryan and another so per cent. scaling
operation.
South Carolina is another one of the
states which has defrauded it's cred-
tors, and thus is willing to vote for
Bryan and enlarge the circle of sharets
in its infamy. The bonded debt Of that
state in 1871 was SIS. 997. sos 20. In 1879
the legislature scaled down" this deb,
80 cents on the dollar and issued new
bonds, which the unfortunate credi-
tors of the state We're compelled to ac-
ccpt.
The state bonds of Georgia in 1871
to SS,0G0. 600. besides consid-
cradle arrears OF unpaid interest.
Georgia let her creditors down easy.
rcpudiating by degrees. In 1871 she re-
pudiated $1.175.o00: in 1872. s.. 100. coo; in
1873, $500. 900, and in 1876. 1915 900. This
reputation was clinchcd by the CON
stitution of 1877, which forbids any
payments to be made to the defrauded
creditors
The debt of Louisiana was SAL 1873, 49,
in 1871. In June. 1874. a refunding act
was passed. scaling down the debt To
10 cents on the dollar. In 1875 14,00o,-
300 of the debt was repudiated In 1879
the constitution sealed the debt to 70
cents on the dollar. and reduced tho
rate of interest on the new bonds to
be issued to per cent. per annum for
the first five years.
Tennessee has also taken a hand in
reputation. On March 20, 1883 an act
passed by which the state bonded in
lebtedness was scaled down. There
were three classes of this, and the cut
On each class was24. % and 20 per cent,
The bonds issued in aid