Evening star., 1928-02-12
BY DREW PEARSON.

The conclusion OF new arbitration
treaties with France and Great Britain
Is expected TO revive the age-old but
still ranking questions OF the secession
States Civil War debt to British bond
holders and the unpaid loan which
Louis XVI advanced 10 the Colonies.
Under the terms of the old Root
arbitration treaties with France and
Great Britain, these questions were
excluded, under the broad and ambigu-
Gus provision OF the treaties which
exempted from arbitration matters of
national honor and vital interest"
Creditors 10 Renew Claims.
But the new arbitration treaty Just
signed with France and TO be signed
with Great Britain before June %. on
which date the old treaty expires, con-
tains no such exemptions. II excludes
from arbitration questions Of domestic
concern. or involving third party, or
involving the Monroe Doctrine or the
League OF Nations Since the Civil War
loans and the Louis XVI Revolutionary
War loan we're plainly transactions be-
tween nationals OF foreign country
and nationals Of the United States. #
obviously is not exempted from arbitra-
tlon.
The descendants OF the British In
terests who invested In bonds Of the
Southern States have organized the
British Corporation Of Foreign Bond
holders. and have made known their
intention OF renewing their claims for
payment. A circular letter setting forth
the claims OF this organization has been
sent TO every member Of Congress.
The British Corporation Of Foreign
B0ndholders estimates that 100000, 900
Ii due Its clients from the Southern
States, divided among them as follows.
Alabama an indefinite amount Arknn.
sss, So, TOO, 600. Florida, $1,000 600,
Georgia. 3i2. TOO, 900. Louisiana, so. 900
900: Mississippi $1,000 900: North Caro-.
lima, $i2 900 900. and South Carolina,
50 000. 900.
The Treasury Department Of the
United States. which has already con-
cliIdsd very thorough Investigation
of the Civil War indebtedness, estimates
that interest on this debt now totals
about $3.50. 1000, 900.
States Repudiate Debt.
In addition t0 the debts Of the South
ern States, both Michigan and Mime
sofa have repiidiat~d debts which were
held largely by British interests, IN
1887 the first State Legislature of
Michigan authorized loan Of 81, 600 >
900, part 0f which was lost with the
failure Of the United States Bank of
Pennsylvania Michigan subsequently,
rep'idiated about ~. 5000 Of her debt
and paid the balance,
The State Of Minnesota In 1853 H..
sued S2,275, 900 In Z per cent bonds for
railway development. Later the railway
companies defalited, and the state re :
p,idiated 30 per cent OF the debt or
$i 1877 800 plus 90 per cent Of the ne-
uiaI interest. which amounted 10 about
u .75i $50.
As Britain WAS the creditor nation
Of the world at that time and ~ Brit
ish capital built most of the railways
VI the United States. British investors
wars the chief losers Ia all 0f these
State rspudisti1us.
heretofore they have BEEN prevented
| from taking any action IN the courts
| Df The United States by the eleventh.
and fourteenth amendments 1 HE
Constitution The eleventh amendment
was adopted IN order Ia prevent tndir
ytduais tram suing States II reads
"'Tin jurtdiehI power NJ the United
States shall not be construed IN extend
10 any suit In law 0f equity commenced
0r prosecuted against one nf the United
states by eitizens 0f another State 0r
by citizens 1r subjects nf any foreign
| state"
Ia other words. when 4 state feplldi'