The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1914-04-02

Chairman. says.
1T is indeed de%ploraole hat these
prosperous and progressive states ~
the great American union axe no
steps 10 settle their defaultcd debts.
and Il seems. to say the least % II,
an anomaly that the United states
should insist on compliance with It's
obligations by u country, like Santo
Domingo when so many OF the states
within its own borders are not OBJ
serving their " engagements.
The excuse put forward by these
states for nOn-paymeut are manifold,
but they may be generally classed un-
der three heads.
"U) North Carolina pleads thar
her dofaulted obligations were con-
traCicd while the state was being ad-
ministercd by the federal government
alter The clyil war, The answer 70
this, Of conrse, Is that the bondhold-
ers have nothing TO do with diner
ences between the states and the fed
cral government. one OF b other
must be responsible for tn issue or
the loans In question, and Il Is most
unfair that the state should refer its
creditors 10 the federal government
and that the federal government
should refer them bac6 again 10 a
state. Tennessee for many years
adopted the same attitude as North
Carolina; but the former was wise
enough TO realize that no state can
mnintain its position In the world OF
credit which attempts TO Justify the
reputation Of obligations 10y excuses
which. In the case Of individuals,
would not be tolerated Ia any CIV
iliycd court Of law, ana therefore,
came to a settlement with the hold
ors OF its bonds.
"(gb Louisiana alleges that there
were irregularities OF some KIND or
another In connection With ne issue
OF most 81 her r%cpudtated bonds. ~
would. of course. put an end q all
credit m a state. on discovery that
lis own officials had acted Incorrectly
in the course OF the issue Of a loah'
repudiatcd all responsibility for the
none obtained from the puohc.
There In. however. one isue, ar part
osf an issue, known ~ Baby bonds,
Nrning which o even the iote-
I gollg excuse can ne pleaded, In ms
ease. In spite OF the fact n a the
bonds are expressed on their face 70
be- issued by the state OF Louisiana
In accordance with the state conru-
tuition. and although they are special
la sacured on arrears of taxes collect
able by the state which, Il is admit
led. were diverted 20 other purposes
nas ment il denied on the astonishing
plea that the bonds were not guaraa-
teed by he state.
"tg) Mississippis excuse for MOI
Tecognizing her defaulted DEBT is the
worst OF all. Between 1881 and .s1e
the state issued Two loans, for when
she obtained fun value and the pro-
ceeds az which were Invested In the
| establishment and development oi
two banks So .ong as the banks
nourlshed and made good pruhtH' the
Interest on the loans was paid, but
when. owing to Misrepresentation, bad
times came and the banks got into
| difficulties, Mississippi made THIS thf
excuse for cearinR all further pay
ments TO the tdhoiders. For a
state To repudiate it, obligations 60 it'
creditors hecause the investments u
chooses 10 make with their money
DO not turn out probably II apho'
luiely ~indefensihl,. and. az far AS the
council are aNar' such an arsumenl
has never been resorted 10 by even
the most backward Of the spanish
American republic
The report int mates that a pro-
posai II nov before the foreign Once
10 secure n settlement of the claim
AGAINST Honduras but very little hope
IL entertained OF "a being successful
The amount due ~ Honduras, includ
ing interest IL roughly &l2i.ooO,0n
A. no Interest has been paid sine
1879. and tie rHte Oh I'VE OF th'
loans was ten per cent the amount b
largely made ~ ~ unpaid interest.