The Savannah morning news., 1901-07-01
had EFFECTS OFF REPUTATION.

BAD EFFECTS OF REPUDIATIoN.
1t is a losing policy for state 20 repu-
diate her obligations. even when 1t is APP
parent to all the world that the debt was
not legally contracted and her people got
little or no benefit from the money for
which the debt was incurred. The truth
of this statement seems to be borne out
by the slow progress which Mississippi
has been making in comparison with
some other states not more favored ia
soil, climate and location.
Recently Mr.. Stuyvesant Fish, president
of the Illinois Central Railway, wrote a
letter which was read at the commence
ment exercises of the University of Mis-
sissippi at oxford. That letter has been
extensively commented upon in and out
of the state, and a few days ago the
plies TO it,
In this letter Mr. Fish undertook to
point out some of the things which have
INSTRUCTED Mississippi's progress. He COM
pared the progress made by the state to
that made by Iowa, both being to very
great extent agricultural states. OF
course the comparison was largely in ia
vor of Iowa. Mr.. Fish gave eight reasons
for Mississipprs slowness, all of which
he presented at considerable length. The
Governor and Auditor agree that all of
his reasons are good ones except one,
namely the states Reputation of certain
bonds in 1S41 and 1852.
~
dertake to discuss the question of the
states reputation of her obligations be-
cause it would take a great deal more
time than he had to give to 1t, and the
Auditor says that he agrees with all Mr..
Fish says except that part of his letter
of its bonds.
There is no doubt of course that both
of these officials feel that the state acted
rightly in repudiatng the bonds to which
Mr.. Fish called attention, and the prob
ability is that they have the facts aad
the law on their side, but the question is
whether Mississippi has lost OF gained by
reputation. Would she not be far richer
than she is If she had paid the bonds?
That is the question, as we understand 1t,
which Mr.. Fish presents.
When a state gets the reputation of re-
fusing TO pay her obligations capital will
fight shy of her. There may be no good
reason for this, but 1t is fact Some
how the idea gets abroad that capital
would not be safe within her limits. Cap
italists in money centers are sure to keep
before the world that the state on one or
more occasions repudiated her obliga-
tons No amount of explanation will be
sufficient to erase the bad impression
which the act of reputation has made.
It may be published hundred times that
the debt which was repudiated was not
just one. but it will not suffice to re-es-
tablish the state in the good opinion of
the world. Somebody will be continually
calling attention to the old scandal
The first reputation in Mississippi &C.
CURED more than half century ago, be-
fore Mr. Fish was born perhaps, and yet,
he refers to II as one of the reasons why
the states progress, On all material
things has been so much slower than
dIother state NOT SO idNoldDly sftudteu
and not so abundantly blessed by other
natural advantages.
That a state inficts upon herself dam
age that 1t will take years 10 repair when
she refuses to pay any of her obligations
there is no doubt, and it is a question
whether, from a monetary standpoint, it
would not be the wiser plan to pay obli-
cations having a questionable legality
than to repudiate them. 1t would seem
that Mr.. Fish takes that position.