New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-30
URGE BOND ARBITRATION
Bankers Ask President to Take
Up RepudIated State Issues.

IN letter 10 President Taft. written by
,he banking firm Of n B. Rollins & Co. Of
10 rs Wall street. the appointment Of a
hoard Of arbitration 10 consider repudiated
hords Of certain states. which aggregate
$50 600 GOO. is urged. The letter was made
p.h3c YESTERDAY.
Vow that this country has taken steps
toward the financial rehabilitation Of Cen
,ral American republics. II is urged that
This policy be pursued also az home. as 'fts
operator would he more consistent and
eNectye" According 70 the banking firm.
the awards Of o board Of arbitration would
~ readily concurred in by the holders OF
the repudiated bonds
rt is pointed out that the states that
have not met their creditors are backward
IN material conditions because Of reluc-
taace OF capital 70 intrust its safety 10 an
taconizing debtors
The letter also says.
The United States sustains direct politi-
ca relation TO the contracts Of our states
Il does not arise merely from the Consti-
national Inhibition against the passage Of
enaGtTCntS seeking 20 impair the obIiga-
tior of contra crs. however important il may
b. De- wainia % in this respect the integrity
81 cCr organic law. OF more immediate
SlgfI.I'L'a.t is the fdFf mat m some In
stances the state governments that issued
tho boDCS now unpaid were established UNI
der The special provisions ~ acts Of Con-
sreSs and under the immediate direction Of
the federal Executive.
THAT condition has been a6duced bv public
bodies representing houdnolders as the
CroUncWork or moral responsibility by the
genera. goVernmont-at least responsibility
10 he extent Of obi Cati0n 90 lend It's pres
tice IN aid OF reasonable adjustment Of i'm
dehtedDess Of SIS political members
There Is a $50 COgent reason for the re-
soit 90 federal arbitration In the fact that
orr states are nOn-suable. That these COM
uurlues are not now dmenable before the
Supreme Court, MS they We're in the past.
should present tho strongest induCeUent 70
the federal government for urging upon
them the resort % arbitral Justice Indeed
there arc strong evidences that the citizens
o. those communities desire the final dis
position m these matters hv impartial ar
hiiefs who would consider the subject I'm al
~ equitable aspects.
Another phase Of this question involves
re- nrcadest relation of The federal govern
r7fnr ~ IT'S constituent states The citizens
~ the great commonwealth Of New York
Gre arrSrod 3S injured creditors in OnDOsi-
tion % the defaultiuE states ~ the Union
s. q silent bur potent factor it enters far
more into the poltca situation than other
subjects that arc more generously pro-
claimed
Several states have recently initiated
plans NJ arbitration. proposing that boards
he formally constituted 20 pass upon the
GAINS AGAINST them 0ci1 by the United
states including bond issues made by those
states. and now held by the federal Treas
rr- I'm view of their adoption Of this
course these states could hardly fail 70 re-
svtrd 10 the extension of this arbitration to
on their iabIiues-tbOSe held by their fell
low citizens Of sister states. as well as
those held hV 0uY common government