Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1914-04-01

OF these debts the report. which -
signed hv Niscount tio>rhen. the new
chairman. SAYS:
1t il indeed dcplorable that these
prosperous and progressive states Of the
great American union take M steps 10
settle their ,~icfaulicd debit. and il seems.
in say the n q 81 il. an anomaly that the
United Siah should insis. on compli
ancc With ~ obligations hy a country.
like SaEio Domingo when 81 many ~ The
states within it, own borders are not
oI,>rrvin. heir own engagements.
'Tir cSrHSr~ put forward by these
states for men payment are manifold. bat
they may bc general, classcd under three
heads.
/. North Carolina pleads that hsr Dc
%faultel obligations were contracted while
the state was bciu. administered hy the
Federal fnmcnt after the Civil war.
The answer to This. ~ courSc. j. that
the bondholdcrS have nothing to DO with
differences between the states and the
Federal Governments. One or the other
must hc responsible for The Issue If III"
loans IN question. aud il i most unfair
that the state should refer its creditors
to the Federal government and that the
IttitfstI NtNtTflffil NHNii ~ w WI
hack 10 the state. Tennessee for MANY
wears adopted The same attitude ~ North
Carolina: Int the former was wise
enough To- realize that no state can maiu
tain its position in the world oi credit
which attcmutS 10 justify the repatriation
of obligations hv cxcu~eS which. in the
case ~ individuals would not hc tolcr-
lted in any civilized court Of law. and
10 AtNl AIN
holders of it< bonds.
- Louisiana alleges that there were
irregularities ~ some kind az another
in connection with the issue IT most al
her rcpudiatcd bonds. II would. II course
put ~ cnI "a all credit IL 4 state. go
discovery that ~ own officials had act
"a incorrcctl, IN the course IF tbe issue
Il a loan. rcpuiiated al responsibility
for the money obtained from the public.
There ~ however. one issue. known a~
BABY" bonds concerning wEicn not
even Ike foregoing eNcrse can he n'radcd.
IN this ease. in spite ~ the fact that the
bonds are expressed on their face 10 hc
ISSUED bv the state If Louisiana ~ nc
cnriance with the yates constitution.
aud although they are specially secured.
on arrears Of taxes rnllcctihlr hv the
state. which. ID j. admitted. were divert
60! To other PURPOSES. payment i denied
on the astonishing plea that the bonds
were not guaranteed hy the state
"t3l Mi>>i>>ipni'> excuse for not rec
incnizing her ,lcfanltcl debt j. the worst
cf all. Between ISL and ISIS the state
issued two loans for which she obtained
full value and the proceeds 'of which were
infested i'm the establishment and devcl-
npment ~ two banks. 80 long as the
hanks flourished and made COOL profits
the interest ON the leans was paid: hut
when. OWN. to ovrr-Srgcnlation. bad
times came and the banks Got into diff
~cIiltics. Mississippi ma,le this the excuse
for ccasing al further payments 10 the
bondholders For u state 10 rcpdliaie
its obligations to IL creditors because
the Investments il chooses To make with
their money hu not turn out profitably
T. absolutely indrfeHsihlc. aud. "a far n
the Council are aware. such an argument
has never been rcSortel 10 hy even most
backward II the Spanish American Re
puhilcs.
The report intimAte> that n proposal
il nov before the Foreign office 10 secure
4 settlement IT the claim against Hondl-
raS lat yrrv little hope j. ENTERTAINED 81
being successful The amount due bv Hon
.i~ncluiiRg interest j. rouglv Sl2l.-
no0 nm. Us No interest has heeu paid
since I>7s. aud the rate ON two ~ the
loans was ter pcr ceat the aNoe.a. j.
largely Maie up of unpaid interest.