Pine Bluff daily graphic., 1905-10-23
SOUTHERN BONDS
OF REPUDiATED ONES
SEEK TO PLACE ADMlNlSTRA-
TlON IN CORNER.
Holders Committee May Turn Over
Some of the Repudiated Debts
of Venezuela.

New York, Oct 23.--On the ground
that the international policy of the
government with regard to the liabil-
ity Of South American republics to
their creditors is Inconsistent with
reputation of their bonds by the
states of the union. appeal has been
made to President Roosevelt to force
"a settlement of the dispute between
some southern states and holders of
bonds issued by the "reconstruction''
s,ate governments.
These bonds. amounting to $40 O00-
COO, in which the national government
is interested to the extent of $1,5O0,-
600, were put out during the years
immediately following the civil war.
notably by North Carolina and by
South Carolina, Georgia. Arkansas
and one or two more other states
The bonds having been repudiated
on the ground that carpet baggers"
received the proceeds of them and
that it is unjust to tax the people of
the states concerned for payment of
money for which they had little or no
benefit.
BY the bondholders committee. of
! which John G. Carlisle is chairman,
1T thn, To
W. Henry H. Melville and L. E.
Whicher, w. E. L. Andrews as coun-
sci. it is maintained, however. that
| there is moral as we'll as legal obli-
cation on the part of these southern
states to pay off these bonds in ques-
ton. and that it is to the national
interest that this should be accom-
plished.
! Chance for Venezuela.
To bring the matter to an issue, in
case other means fail, it is announced
that some of the repudiated bonds may
be turned over to Venezuela in order
that the South American republic may
tring suit against one or more of
the states of the union, and thus give
an object lesson of what the holders
OF the bonds regard as an inconsis-
tency
A letter. addressed to the president
by Mr.. Andrews. urges Mr.. Roose-
velt that he interfere to bring about
settlement Or the dispute by arbitra-
tion before the bondholders are forced
ta resort to forensic warfare of in
ternationa1 proportions, with the con-
sequent injury to these states
Secretary Loeb has replied on be-
half of the president that the subject
will receive careful consideration. Mr..
Andrews, however. is hopeful of more
definite and speedy action than his
reply would indicate. He said he had
received information from Washing
| ton that the presient would discuss
! the matter in addresses he will deliv-
el during his present southern trip.
Sinister Influence.
"The successful efforts made on be-
half of these debtors" said Mr.. An
drews in his letter to the president,
referring to the southern states, whose
bonds have been repudiated, "to defeat
the recent arbitration treaties, intro
duced a sinister element throughout
cur public affairs. These communities
entertain the well-founded apprehen-
sion that their bonds would pass into
the hands of foreign governments and
would thus become the subject of ar
rtration.
E, IF this action, based upon such mo-
j, tives, be allowed to permeate the di-
rection of our national policy it may
easily become detrimental to our ami
cable relations with other countries.
''It is strange commentary ON the
: proud position and high credit of our
national government that its protec-
ton from foreign complications by
treaty arrangements should be
;I,warted by some of it's defaulting
communities, apprehensive that arbi-
j t,a1ion would result by their creditors.
! In its efforts to apply the Monroe doc
trine our government is placed in an
| awkward position by the misconduct
| CT these states