The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-01-27
BRITISH CLAMOR
FOR REPUDIATED
BOND PAYMENTS
Investors Point Out Eight
American States Owe
100000
BY WILLIAM PHILIP SIMNfS,
scripps-Howard Foreign Editor.


WASHINGTON, Jan. 27.-British
holders of the repudiated bonds Of
eight states of the United States
aggregating approximately 1915, ooo,-
600 in principal and interest-are
renewing their drive for settlement.
Now that Americans are demand
ing payment of the war debts, they
declare in words that convey a we'll
defined jibe, it might not be en-
tirely uniting if they took the time
to look into the matter Of certain
regulations nearer home.
The eight states cited in the same
category with Honduras, Mexico,
Portugal, Russia and Turkey, are
Alabama, Arkansas, Florida, Georgia,
Louisiana, Mississippi, North and
South Carolina.
Interest High in Millions
The face amount of the unpaid
securities is said to be about $75,-
900, 900 with interest footing up to
around $500, 000, 900. Alabama is
charged with having repudiated in
the neighborhood of $13, 000, 900; A
kansas, $13, SOC, 900; Florida, $8,0O0,-
900; Louisiana, $1,000, 900; MISSISSIPPI
pi, $1,000, 900; North Carolina, $12,-
100000; South Carolina, $4,000, 900,
and Georgia $13, 0OO, 1000.
Some of the issues go back to the
1905, but for the most part, they
date from the reconstruction period
following the Civil war. At that
time, the states in question we're in
the hands of the notorious carpet
baggers," imposed by the federal
government at Washington.
Incurred for the ostensible pur-
pose of building railways, plank
roads, canals, levees and for the
creation of state banks, the loans
largely were f1oated abroad, prici-
pally in Great Britain.
Indiana Also Caught
With the exception of Florida and
Mississippi, practically all repudia-
tions came after the affairs of the
southern states had been turned
over to their own people following
the postwar period of federal rule.
These two states, along with
Pennsylvania, Indiana, Illinois,
Michigan, Maryland and Louisiana,
were caught in the panic OF
1887 and virtually bankrupt. But
while the others finally settled at
varying amounts on the dollar, the
Civil war caught the southern states
and prevented even that arrange
ment.
AS for the reconstruction period
loans, some were unqueStionably
valid, some went into the pockets of
the grating carpet baggerS," and
some were hardly legal, having been
made without due regard for the
state laws or constitutions govern
ing such matters.
After the federal troops of occu-
patton had been withdrawn and the
carpet bag" governors had packed
up and gone home, the various duly
elected legislatures or conventions
refused to tax the citizens to pro-
vide the necessary funds for re-
tirement.
Up to Federal Government
The prevailing sentiment of the
times seems to have been that in
asmuch is the federal authorities
at Washington had taken over the
management of the southern states,
and saddled them with governments
which had contracted-and largely
made away with-the loans, the
federal government could assume
the responsibility for repayment.
For nearly sixty years the British
council of foreign b~ondholders has
been trying in vain to collect. 1t
has been stopped at every turn, for
the states can not be sued without
consent. Nevertheless, the council
observes, the money was honestly
lent and, regardless of what went
with it, it should be honestly repaid.
Just as American money was lent
to Europe for postwar re~construc-
ton. And, so far as the British are
concerned, there is not the slight
est difference between their debt to