The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-07-22
N. Y. BOND ACT
Mr.. J. G. Browns Refer
enCe to Reconstruct
ton Acts.

w men PRESIDENT Joseph u. brown,
of the Citizens Bank, of Raleigh
spoke last week before the New
York Bankers Association, at the
Frontenac Hotel in the Thousand Is
lands, he said in part as follows:
1T was an easy matter for a few for
eign politicians backed by the low
est element of our native people to
secure absolute control of the entire
negro vote and WELD it for their own
selfish ends. And this they did In
every Southern State the greatest cor
ruption prevailed. The most eXtrava-
giant issues of bonds were put out, as
is evidenced by the millions of these
securities that were later repudiated.
Upon my own State was placed a debt
of 100000, and on the Southern
States probably not less than $780,
100000. In many cases it appears
that the States got little if any bene
| fit from these issues. In North Caro-
| lima and in my own city these bonds
were thrown around like waste paper.
| Under such conditions it cannot be
wondered that our people embraced
| the first opportunity of repudiating
such fraudulent obligations at the
same time making as liberal settle
ment of legal issues as in their power
|
i said, to their eternal credit, they never
repudiated a single honest debt, but
paid back full dollar for every dol
| lar received as far as this could be
aScertained. Many of these old bonds
have been bought UP by speculations
at from to 10 cents, and / see from
| the public prints that a syndicate has
been formed and an effort is to be
made through the aid of the State of
/
| their payment in the courts of the
| land.
Il cannot believe that this great
empire state, rich in her material re-
| sources, rejoicing in her marvellous
| financial strength and in the business
| integrity of her people, and standing
as a. City set on a hill-a beacon light
| to the world. | cannot believe, | say,
| that such a state will lend her aid to
! such perniciOuS schemes or cOunte-
nance in any way the efforts of a few
get-rich-quick brokers to force a sis
ter state to pay obligations that were
| conceived in sin and born in eniquity.
1t would be the price of blood, thirty
| pieces of SilVer-that were heavy
enough to break the neck of Judas. .
After his address, which was high
| ly comnlimented many members of
| the association spoke to Mr.. Brown
! WIN reference TO MS anu
/ sion to the legislation of the Empire
State which appeared to have been
passed in the interests of the Syndi-
cate which is supposed to be handl-
| ing the repudiated bonds of North
| Carolina.
! Mr. Brown says that the almost un-
| animous opinion of the bankers was
that the bonds should not be paid and
that any effort on the part of the
State to lay open the way to specula-
| tors in these securities would Signally
| fail of endorsement or encoura cement
at the hands of the business interests
| of New York.
| After leaving the Thousand Islands
Mr.. Brown happened to come in con-
| tact with a Mr.. Meade, the President
| of one of the largest Savings Banks in
the city of Albany and, in talking
| about the reconstruction bonds and
| Mr.. Browns utteranceS before the
association, Mr.. Meade took occasion
to say that the legislation which was
passed by the assembly was not at
| the instance of the reDudiated bond
| Syndicate-as was generally supposed
but was enacted at the instance of
| himself and other bankers who were
| interested in the bonds of another
| state, for which they had paid full
value and which had not been paid.
| According TO Mr. Meade, the legiS-
| lation passed by the assembly of New
| York had absolutely no reference to
| the North Carolina bonds of recon
| StructiOn days or to any bonds of
other Southern States. According to
| his statement, his bank and other
| banking institutions of Albany had
! come in possession of a quantity of
| Colorado warrants. which they desir-
/ ed to collect and for which they paid
full value. The South Dakota suit
merely pointed a way to the holders
| of these securities by which they
might enforce their claims. 1t was
/ they who were responsible for the
| legislation authorizing the State to
| take assignments of claims against
| other states and inaugurate suits
Having himself had a bill introduce
ed into the New York Legislature, Mr..
Meade stated positively that it was
| intended to cover the Colorado bonds
| alone; and he was emphatic in his
statement that the powers conferred
would be used by the State only in in
| stances in which the obligations sued
| for were not only mild but representa-
| ton of actual value received.