Year: 1877

New Yoik Times


The New York bankers and linan-
ciers who assumed the task of nego-
tiating between the defaulting
Southern States and their creditors
must be discouraged by the result
of their first and most hopeful ef
forts. Their motives were laudable,
and their logic was sufficiently
plausible to win the favor of per
sons not accustomed to talk of
philanthropy. I he argument ran
thus: The South is burdened with
debts which it-cannot pay; its peo
pie are anxious to redeem their
bonded obligations, but are too i'm
poverished to pay in full; they are
proud and unwilling to make over
tures which might seem to indicate
a desire to rid themselves dishon-
orably of the liabilities; they would,
however, gratefully respond to com
promises whereby their creditors
might Tighten their respective loads
in a manner honorable to both
sides. Itll5Dl this argu-
ment there was a general patriotic
outbUrst, 0propos of an anticipated
reconciliation of North and South
and of the energy with which the
latter would win its way to prosper
ity under the encouraging influence
Of its magnanimous creditors. So
the movement started. And in
order that it might acquire the inn
petus of success, the members Of
tho committee selected Tennessee
for their first experiment


A certain degree of worldly WIS
dom was apparent in the choice.
Tennessee is a State which boasts
OF its natural resources and its ac-
quired wealth. It's people profess to
be high toned and honorable. They
come North with a proud mien to
borrow money for the furtherance
of their enterprises. They dis
patch agents to foreign countries to
obtain the co operation of capital
lists and to influence the current of
emigration. Take them all IN all,
the Tennesseeans as depicted by
themselves have an inbred antipa-
thy to meanness and dishonesty.
They repudiate their debts? The
London banker who should pro.
pound the inquiry would be assured
that they are rich as well as proud
that their taxation is light; that
they are abundantly able to pay
hundred cents on every dollar they
owe, that though little pressed
just now, their securities are as
good to swear by as Bank of Eng
land notes. Other considerations,
doubtless, confirmed the Committee
IN the belief that Tennessee would
form notable example for the
guidance and encouragement OF 9th
er States. The bulk of the Tennes-
see debt of twenty-five millions, or
thereabout, was incurred piior TO
the war. Carpet.baggers had moth
ing to do with It's creation. The
bonds which represent IL were sold
at fair rates, and their proceeds
were expended upon works underta-
ken by TIE State, and from which it
has derived many substantial adj
vantages. The pretenses by which
some of these reconstructed States
attempt to rid themselves of respon
sibility are not available in Tennes-
see. 1t got the money borrowed in
Its name and has something TO show
for the whole of it. Unless the rep
reservations made in its behalf as TO
it's resources are fraudulent, it could
well sustain State tax Of six mills
sufficient TO pay six per cent. in
terest on its entire bonded debt, and
to retire a portion every year.


Ii must be admitted that State
thus situated cannot with a good
grace put in the pauper's plea
which the New York committee
might be supposed to require as a
basis for their appeal TO its credi-
tors. All the committee could urge
in its behalf was that it's population
are embarrassed, that the creditors,
being unable to sue the State,
should acquiesce in a liberal adjust.
ment of debts which otherwise
might not be paid at all. There is
not State in the North or West
for whose benefit the same reason
ing might not with equal propriety
be used. The result as regards
Tennessee was q scheme Of adjust
ment prepared by the committee on
a basis involving the absolute re-
linquishment Of two fifths OF the en-
tire debt. Some Of the creditors
protested, and a minority presented
counter plan embracing better
tcrms. The latter never had a
chance of success. The commit
tees project. on the other hand,
was welcomed by Northern believ-
ers in repudiation as a foundation
of reconciliation, and we were as
sured that the answer from Tennes-
see would be prompt and satisfac
tory. The Legislature was in ses-
sion, and it was expected TO respond