The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-11-07
THEIR CASE is MORALLY DIS
CREDlTABLE.


part of Governor Russell and former
Senator Butler. 1t seems that steps
now being taken by the syndicate.
while involving no official breech of
faith. are morally dis :reditablo" SO
states the Norfolk Landmark, which
paper, publishing the open letter adj
dressed to the President, says that
presentation of these repudiated
bonds to foreign countries is a shrewd
evasion of the constitution of the
United States, which says that State
cannot be sued except by another state
or country. If these desperate holders
of carpet-bag bonds are not merely
bluffing, they are pursuing n line CT
conduct which i'll becomes American
citizens They are deliberately under
taking to embarrass their own gov
eminent in it's foreign relations. This
they plainly admit in their letter to
the President Their course may be
technically legal, but it is morally
discreditable. We observe that they
have received no word of comfort
from Mr.. Roosevelt in their miserable
scheme"
The text of the letter sent to Pres
ident Roosevelt, already alluded % in
these columns, is as follows:
1.-THE committee of North Carolina
State bondholders has noted with
deep interest the action of your i.d-
ministration in reference to the liabii-
of a
Your policy is the subject Of immc-
diate interest to them as representa-
tives of holders of defaultei obIiga-
tons of States of the Union. The APP
plication of that policy 10 our domeS-
tic communities, that disregard thelr
duties to their creditors is WARRANTED
by cogent reasons.
1.-The United States government is
the holder of a substantial amount of
these defaulted State bonds.
Through the opposition of these
defaulting States, the recent treaties,
providing for sysematized arbitral ar
rangements with foreign powers. fall
ed of confirmation.
"The reputation of their debts BY
some of our own Commemorative de-
stroys the efficacy of our intervention
in the financial anairS of other re-
publ;cs and leaves the United states
morally powerless for the consistent
administration of the doctrine of
Monroe.
Upon the ground of the common
interest of the government and indi-
viduals, as creditors of these States,
and upon the public grounds herewith
submitted, your action is sought tor
COnVoking a meeting of representatives
of defaulting States, and representa-
tives of the United States and other
creditors to effect an adjustment OF
these liabilities upon an equitable
basis.
I'm it's efforts 10 apply the Monroe
doctrine, our government is placed in
an invidious position by the miScOn-
duct of these States. We are urging
upon our neighbOrs in South Ameri-
ca to pay their debts, or at least to
agree to arbitrate their contractural
and other liabilities. Our position has
been minatory towards them in the
effort to bring about an adjustment OF
the claims of their creditors and thus
to safeguard the integrity of Republi-
can territory But our attitude to-
wards these republics is deprived OF all
consistency if we cannot compass the
consent of our own States to aroitrate
their liabilities.
Under the recent decision of the
Supreme Court, a series of litiSarions
is about to be instigated against these
indebted States. by foreign govern
ments and creditor States of the Union,
upon bonds donated to them to public
objects. The spectacle of recalcitrant
States subjected to the enforcement of
judgments in favor of an array of pub
lie creditors is not calculated to en-
nance the moral or material position
of the nation"
The President of the United States
has nothing to do with compelling the
South American republics to pay any
debts, contracted or alleged to be con-
tracted. He has merely stated in sub
stance, that the Monroe Doctrine cam
not be invoked in the interest of those
debt, but even when a foreign coun-
try was enforcing it's debt, this coun-
try would not permit such occupancy
as England has obtained in Egypt, for
that would permit a claim for debt by
any European government to virtually
destroy the good in the Monroe Doc
trine. Therefore the first appeal of
the bondholders for interference by
the President must fall to the ground.
1t is true that the Senator's from
the Southern States threatened with
bankruptcy by having dishonest Re
construction debts saddled upon them,
did oppose ratification of the arbitra-
ton treaty. The President does not be-
lieve that such so-called debts could be
reached under the treaty, and will no
doubt agree to Senator Bacon's
amendment which will exclude the
possibility of their consideration.
Then the syndicate tells the Presi-
dent that 1.-The United States govern
ment is the holder of a substantial
amount of these defaulted State bonds
and asks him to lead in "convoking a
meeting of the representatives of de-
faulting States, and representatives of
the United States and other creditors
to effect an adjustment of these liza
bilitieS upon an equitable basis" In
other words, these spectators who
paid next to nothing for the bonds
issued by the knaves who made gov
eminent a nightmare in the South