The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-12-06
EXPECT THE SOUTH
TO PAY ITS DEBTS
Foreign Bondholders Think
Period Of Reputation
About Over.
HOPE IS IN DEMOCRATS
In the Meantime. They Oppose
Further Credit 10 South
crn States.

New York December Edward l.
Andrews. OF p Broad street counsel
in this country for the Corporation
If Foreign sondholders. received by
cable yesterday details OF the state
lnent issued By il in London on Mon
DAY attacking the forthcoming bond
issues OF the State OF North Carolina
and certain counties Of Mississippi.
The corporation Is exerting Itself to
bar these States. which are in default
on earlier Issues. from the money
markets or the world Its power may
council is made up. IN part, OF repre-
sentatives OF the banks and chambers
CT commerce OF Great Britain. Two
years ago the State OF North Carolina
brought out an issue Of ss.5oo.o9
bonds and the Corporation Of Foreign
Bondholders not only warned Euro
pean investors against subscribing for
them. but Mr.. Andrews protested TO
The New York stock Exchange against
the listing OF the issue.
II looked as though the issue would
be a failure until the American To-
bacco Company. which had large pro-
perty interests IN the state. came 10
the rescue by subscribing for $1,000.
600 OF the bonds. The rest OF the is-
cue was then placed among the banks
ia the South. and no application for
listing was ever made.
An Interesting feature OF the state
ment issued by the corporation Oh
Monday is the hope exIs essed by IL
that the change about TO take place
in the political complexion Of the
Federal administration Will result
In bringing the delinquent states TO
time on their old bonds. and In ef-
fectLng some compromise with the
foreign holders The following ex-
tracts from the statement were fur
nished yesterday by Mr.. Andrews;
Called q Gosssmer Money Fabric.
These States are again attempting
TO reach the money markets of the
world. North Carolina and Mississippi
are still possessed with the faulty
OF seeking to extract the savings OF
the public. This renewed search for
the capital Of investors might be com
prehenable II II were supported by
the profYer of some Available security,
But there II nothing in evidence but
the bald promise and naked good faith
of these 'soverefgn' States. Upon this
sossamer fabric, North Carolina fs ap-
pealing fer 35so,ooo. Mississippi II
seeking to utilize q form of local OBJ
ligstion: and its minor political sub
divisions. such as the counties Of
Baldwin. Clarke sne others. arr en-
deavoring TO place their bonds in
money centres that would reject. as a
matter OF course. the issues Of their
superior authority. the state itseh.
made by these members Of the Ameri-
can Union to obtain much larger
amounts. both acting IN their capacity
as States. and together seeking In Eu-
rope and America for more than 50
900. oco subscriptions to their alleged
loans At that time the attention OF
the New York Stock Exchange was
recalled 70 the subject In the case
OF North Carolina. the listings Of that
body show several millions OF dollars
Of It's bonds. on which interest has
not been paid since the date OF the
third coupon The defaults OF Mis-
sissfppi antedate the Civil War AS
the result Of Investigation OF these
conditions by leading bond houses.
none OF the above Issues could be SOD
IN the great financial centres; and In
tire case Of North Carolina. they were
EcieSdtco TOT purchase 10 CltlzSue anu
corporations OF that State.
The peculiarly Questionable fes-
lures surrounding these repudiarns
cases in America compel the Corpora
ton OF Bondholders to adopt the dras 4
tic course OF advocating their exclusion
from the international money centres.
while the proposed issue Of their
new obligations at this particular time
has necessitated this action OF the
American and European hoIders. the
Corporation Of Bondholders is inclined
TO regard this effort to float new loans
by these States as an incident which
will probably be soon redressed under
the transformed governmental condi- ,
tions. The past few weeks have pre-
scented the finances OF these cormuni-
ties under a different aspect. at least
in their relation TO foreign countries
This group Of states. known as the
South has become the dominant ele-
ment in the control of the national af-
fairs Of the United States. The econ
omic and financial policy Of the nation
has become identified to a great ex {
tent with the conceptions and the :
views Of this tier Of states. and their