The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-12-28
An Embarrassing Complication.

A possible hitch looms up to mar the
prospect of the peace movement en-
bodied in the new arbitration treaties
with France, Switzerland, Italy and
other European countries, negotiated
by Secretary Hay and earnestly advo-
Gated by President Roosevelt for the
purpose of settling all arbitrable diff
ferences with foreign nations by refer
ence to The Hague. 1.
The southern senators have urged the
objection that, if the treaties are rati-
fed they may give European parties to
the compact ground for taking steps to
bring before The Hague tribunal the
southern state bonds issued during the
so-called reconstruction period by reck-
less black and white legislators. Bonds
of this character were issued recklessly
by carpet-bag legislatures and subse-
quently repudiated along with other
bonds, for which there was no reason
able excuse to default and repudiate.
The government is looking into the
question as possibly involving serious
results. It is not known what course
foreign holders Of such bonds have de-
cided upon, neither is it ascertained,
whether parties to the arbitration
treaties intend to bring up the question
Of submitting the matter to the inter
national tribunal at The Hague. The
United States is not responsible for the
acts Of the states against foreigners
and has been obliged several times to
explain to European governments the
ifot nf i4e ho
of the murder of the Italians in New
Orleans some years ago, and of Aus
TRANS in Pennsylvania, .altho the gov
eminent, while disclaiming RESPONSE
bility in the case Of the Italians, pre-
sented the Italian government . with
| $25, 900 for distribution among the fam
| lilies of the slain men in Italy. Our
government cannot assume debts of
states repudiated by them, and, if such
of European governments, it is difficult
to see how it can consistently admit
! such liability in the southern repudi=
ated debt cases.
After the reconstruction period, sew
eral southern states scaled down their
debts freely and absolutely repudiated
the bonds representing such indebted
ness. North Carolina unequivocally re-
pudiated nearly $13,0Q0,oQ0, of bonds,
chiefly railway subventions. South
Carolina repudiated $14 100000 of the
debts incurred during the period Of ig-
norant, extravaganza and corrupt legis-
lation by men ravenous for plumber,
and some $9,0O0,00O was incurred by
the reckless Endorsement of railroad
bonds. Georgia, after reconstruction,
repudiated about $9,000,000 of her
bonds and railroad Endorsements, and
Florida 8 supreme court has held that
something like 100000 in: bonds
loaned to railway company are Gun
constitutional. Alabama and Arkan-
sas have also lifted some of their in
debtedness by reputation and charge
the default to "carpetbaggery,' but,
like some other states, include indebt-
edness contracted to considerable ex-
tent before the civil war.
What proportion Of the repudiated
bonds has been taken by foreigners is
not accurately known, but it is reason.
able to suppose that, whatever may be
the amount, the United States will not
consent to make good such liabilities
for which it is not responsible any more
than it is responsible for the payment
Of the public debt of the Confederate
states, or the ante-bellum bond repu
diation by Mississippi and other states
If the treaties are to be amended tc
secure southern repudiating states from
possible discomfort over the possibility
Of being compelled to pay repudiated
debts, the nation will part with a con
siderable percentage of it's dignity. =
--.r--