Newspaper Page Text
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Oregon, Patton, Peffer, Perkins, Platt,
Power, Proctor, Quay, Sherman, Shoup,
Squire, Stewart, Teller, Washburn—34.
The vice president appointed the following
managers on the part of the senate as
conferees: Voorhees, Harris, Vest, Jones,
Sherman. Allison and Aldrich.
At 10:40 the senate adjourned until Friday
at noon.
Republicans Were Confident.
It was no secret among vhose who had
the confidence of the leaders of the repub
lican side that they expected to defeat the
tariff bill and that they figured on a ma
jority of 1 vote against it. The first break
on the democratic side came when the name
of Mr. Caffery was called and he responded
with an emphatic “no!” Ills colleague, Mr.
Blanchard, did not respond to his name at
ball when it was called. Mr. Irby, it was
claimed, had promised to vote against the
bill, but when his name was called he re
sponded in the affirmative and all hope of
defeating the bill vanished. Mr. Caffrey
then, after a brief explanation and a pro
test against the way his people bad been
treated, changed his vote to one in favor
el the bill and Air. Blanchard voted m the
same wav. Had Mr. Irby stood by the
combination the two Louisiana senators
■would have remained firm and the vote
would have been 37 to 36 against the bill.
Agreements Are Off.
Washington, July 4.— (Special.)—Several
leading democrats of the senate who oppose
many features of the tariff bill they adopted
last night, but who voted for them to pre
vent the defeat of the bill, have no hesita
tion in stating that they are no longer
bound by any agreement. They are, there
fore, encouraging the leaders of the house
to change the bill materially and promise
their suppoA in the changes. One of the
leaders of the house told me tonight that
he was confident the house was now in
a position to make any changes it desired
aaid to force the senate to adopt them..
"The house conferees,” he continued,
•‘will insist upon many changes from the
senate amendments to the Wilson bill.
It will be reshaped on the lines of the Wil
son bill. The house will put coal and
iron on the free list, and it will change the
sugar schedule materially. Certainly the
one-eighth and one-tenth discriminating
duties will be stricken out and a sim
ple ad valorem duty imposed alike on all
sugars.”
“What about the wool and cotton sched
ules?”
“We expect to change them back to the
lines of the original bill.”
“And tho income tax?”
“Weil, the senate’has made no material
charge in that except limiting it to five
years. That is all right. In that time there
will he a just experiment. Then we can re
enact it if necessary.”
“When will the bill go to the president?”
“Not later than the Ist of August. !• ap
prehend no lengthy delay.”
The Conference Committee.
Washington, D. C., July 7.—[Special.]—
After a brief debate today the house
disagreed to the senate amendments to the
tariff bill and agreed to a conference today.
(Speaker Crisp appointed W iison, McMillin,
Turner and Montgomery the democratic
conferees.
These men will really make the bill and
they are pledged to reshape it as much
like the original Wilson bill as it is possible
to get it.
They will surely put iron and coal on tlje
free lint and will change the sugar and
wool schedules.
A Bonanza for Sugar.
In the tariff bill as passed by the senate
the sugar and whisky trusts have a perfect
bonanza. Should the sugar schedule not
be changed in conference instead of the
stock selling at 100 it would be worth 200
or even more. Under that schedule it
would absolutely control the price of every
ounce of sugar sold in America.
By the increase of the whisky tax to
sl.lO a gallon the whisky trust, it is said,
will make $40,000,000.
There are 200,000,000 gallons of whisky
row in our bonded warehouses. This can
be taken out at once at So cents a gallon
taxation. In selling it the trust will add
the tax at sl.lO and make an additional
profit of 20 cents a gallon on 200,000,000 gal
lons.
By the increase of the tax the government
would gain a jump sum of $180,000,000, but
the r- cenue for the next two years there
after would be practically nothing, as the
total sales cf American whisky annually
amount to less than 1C0,090.000 gallons.
Still the increase of this tax will increase
the government revenue $20,090,009 annually
on the whisky hereafter made. With the
hevse the question is should the govern
ment lose this revenue because an increase
ts the whi-ky t v .11 throw millions just
low into the lap o' the whisky trust?
No one knows just how the house will
rote on this question.
$5,000 for Each One Killed.
Jas:iii«ton, D. U, July t>. —[.■special.]—
A bill has been reported and will probably
pass giving to the families of each of the
war department clerks killed in the Fora
theater disaster $5,000.
Just such another disaster is liable to
occur b »re at any time. The government
has not enough builutngs in Washington
to accommodate its various departments.
In consequence it is making use of a .-.cure
of old rattle-trap rented buildings, which
are not. in any way fitted for the use to
■which they are put.
The most dangerous o£ its buildings is
the public printing office, an old tottering
building, already condemned as unsafe. It
is liable to collapse at any time. For years
efforts have been made to have congress
provide tor a new building and congress
wants to, but there his been so much
lighting going on among real estate men us
to where it shall be located lhat it seems
impossible for the senate and bouse to
agree upon a site. For three congresses
bills hate been pending. Bills have been
adopted by the senate, but as yet the two
houses are not agreed upon a site and in
consequence the prospects of a new build
ing soon is not good, while the prospects
of tin present one collapsing are decidedly
favorable.
As a matter of fact the government needs
several neo public buildings in Washing
ton.
Hogg in Washington.
Governor Hogg, of Texas, has been in
Washington several days with a party of
friends from this state. They have made a
tour through the north. Os course, the
governor is talking up Texas. He wants
immigration, but says Texas only wants
the best classes.
Governor Hogg said he preferred not to
express an opinion about the tariff Dili,
as lie did not know what changes would be
made. “But,” he added, “you can say that
the state convention soon to be held at
Austin will deciare for the free and un
limited coinage of silver at a ratio of 16
to L The five candi iates for governor ■
have already declared themselves for that !
policy.”
OOD*S j
Sarsaparilla is carefully ;
■ jifca prepared by experienced j
pharmacists from Sarsa
e3| K parilia. Dandelion, Man-
drake. Dock.Pipsissewa,
Juniper Berries, and other well known
vegetable remedies. The Combination, Pro
portion and Process are Peculiar to Hood’s
fcrrsapariiin, giving it strength and curative
power Peculiar to Itself, notpos
sessed by other medicines. Hood’s
Sarsaparilla
Cures Scrofula, Salt Rheum, Sores, Boils,
Pimples and all other affections caused by
Impure blood; Dyspepsia, Biliousness, Sick
Headache, Indigestion, Debility, Catarrh,
Rheumatism, Kidney and Liver Com-
C plaints. It is Not What
we Say, but wbat Hood’s
Sarsaparilla Does, that
Tells the Story Hood’a
Sarsaparilla
IJRES
“Mood's Pills Senile, mild aud effcctlva
SOUTHERN CREDIT.
TBE CREDIT OF SOUTHERN STATES
NOT IN JURED D¥ HE UUDIATION.
Reply to the Attack of Mr. John F. Hume
in the North American Review,
by Mr. Clark Howell.
The following appears in the current issue
of The North American Review, in reply
to an article by Mr. John F. Hume in the
last issue of that famqus magazine, in
which the credit cf the southern states
was attacked. The editor of The Review
requested Mr. Clark Howell to reply, and
his answer is as follows:
It the conclusions of Mr. John F. Hume,
in his ghastly exhibition of the decaying
remnants of "Our Family Skeleton,” in the
current issue of The Review, are correct, it
follows that two things »are true:
r Jrst, that the oredit of the states of the
south is now below par, as compared with
that of the states of other sections, and
Second, that this condition, if properly
stated, is the direct result cf the past re
pudiation by the states of the south, of
large .parts of their bonded indebtedness,
which repudiation is the skeleton that Mr.
Hume drags from the southern closet, and
flaunts in the eyes or capital as a menace
to divert it from the channels of southern
investment.
If, therefore, it can be demonstrated that
the credit of the southern states is not only
as good, but better than that of some
states which have no record of repudia
tion, and that, as a whole, the credit of
the southern states bears favorable com
parison with that of the states of any oth
er section of the union, then it follows that
“our family skeleton” of repudiation is no
longer efficacious for the use to which Mr.
Hume would put it, towit: As a scare-crow
to frighten capital from the field of south
ern investment.
In the first place Mr. Hume does mot cor
rectly express the sentiment of the south
ern states in his effort to make it appear
that they are disinclined to a discussion of
the question, and that “to many southern
people the subject is rather a delicate one.”
He deplores the fact that the southern
governors who recently conferred at Rich
mond, Va., for the purpose of calling at
tention to the advantages offered to capi
tal in the development of southern re
sources, omitted from their proceedings an
inspection of the skeleton, and excusing
their reticence on the ground that the sub
ject was a tender one, he justifies his at
tack on southern credit by the statement
that he “does not feel bound to follow their
example.”
In the commendable work put on foot by,
the southern governors at Richmond, the
question of repudiated state bonds was not
considered, because such discussion was not
one of the purposes of the conference, not
because the question was a distasteful one,
but on account of the fact that the praise
worthy effort of the southern governors
to invite the attention of outside capital to
the rich fields of undeveloped resources in
the south, was based on abundant evidence
that the disestablished credit of the south,
resulting fr-m the chaotic condition follow
ing the war, was thoroughly re-establish
ed, and that confidence in southern securi
ties was now regulated by the same condi
tions that controlled the estimate of the
credit of any other section, the prime fac
tor in which is the security of the obliga
tions offered, not under past, but under ex
isting conditions.
If, as Mr. Hume holds, it be true that the
repudiation by the southern states of bonds
issued contrary to law, many of them ad
mittedly illegal, unconstitutional and worse
than that, monstrously fraudulent, has in
jured the credit of the southern states, tills
would, at once, become evident by public
discredit of the securities issued since then,
the value of which, according to Mr.
Hume’s theory, would be manifestly below
that of the securities of states credit
had not been injured by repudiation. And
yet we find that Alabama 5 per cent inter
est bonds are quoted in New York at from
100 to 105; Florida, 6s at 127; Louisiana 4s
at 98; North Carolina 6s at 127; South Car
olina 4’ss at from 29 to 100; Tennessee (set
tlement) 53, at 105, and Georgia 4’ts nt
from 110 to 112. Among the stages whl h
have not repudiated Connect’cut 3V 2 s
are quoted at 100, Maine 3s
at from 37 to 99, Massachusetts 5s at IOC’.:,
to 107. Rhode Island 6s at 100.
There has not been an issue of Georgia
bonds in the pasJt ten years which was
not readily disposed of in New York at
terms strongly expressive of the good esti
mate that capital places on the credit of
the state. As it is with Georgia, so it is
with other southern states, the credit of
which, under the new order of
things established with the re
organization of affairs after the re
construction legislatures had sapped the
vitality of every southern statu, was soon
readjusted to a normal basis, gaining
strength year after year In proportion io
the degree of recovery of the states from
the rude shock of war.
Those who are not familiar with the facts
cannot appreciate the condition in which
the south was left after the war. With
its assets halved, its debts more than
trebled, commerce prostrated and its social
condition placed on a new basis, the bur
dens of the southern states had in a few
years increased in more than treble
proportion to the decrease of their strength
to bear them. Had conditions not. been
so materially changed by ths war, I be
lieve that the south would have cleared
Itself entirely of the record of repudiation
by paying dollar for dollar even for the
proceeds of the bonds which were uncon
stitutional and unauthorized, or by arriv
ing at a satisfactory settlement with the
bondholders, even had It become nwrnrr
to go to the extreme adopted by Minnesota
of clearing its record of repudiation by a,
compromise settlement of 50 cents on the
dollar. At. the beginning of the war almo: t
every southern state had just about as
heavy c load ns it was possible to can.'.’.
But their obligations would have been sat
isfactorily disposed of in due time had
not the war precipitated a condition which
forced a different treatment of the question
than would probably otherwise have been
adopted. In this connection statistics throw
valuable light on the strikingly dispropor
tionate development in the tremendous de
crease in the taxable basis of the south
betv.een 1860 and 1870, and the enormous increase
in th* bonded indebtedness of the some staees
during the same period, which was the era of
germination and development of most of the
repudiated bonds. The first. of the
following tables Is taken from the valuable
treatise on “Repudiation of State Debts,”
by Professor Scott, of the chair oi political
economy of the University of Wisconsin,
and the second from an article of Mr. R.
P. Porter in The International Review:
Full iu Taxable Hunii of the Southern
States.
Per c’t
of
1860 1870 dec’ase
Virginia $657,021,336 $505,978,190 23
North Carolina. 292,*97,602 1 "'1.2.73,190 53.4
South Carolina.. 489,319,128 H1„913,327 62.1
Georgia 618,232,387 227,219,519 63.2
Florida 68,929,685 32,480,843 52.9
Alabama 432.198,762 155,5'-::,595 64
Mississippi 509,472,912 177,278,890 67 5
Louisiana.. .. .’. 4371,787,265 253,371.'■'90 41.9
Arkansan ISO, 211.330 94,528,843 47.5
Tennessee 382,495,200 253,782,161 33.7
Increase in Hi»ic llebtw Between 1860 mid
IblqauJ 1880.
Highest
point
reaciit tl
1360. *IB7O. 1860. by debt.
Virginia..s3l,779.f«2 ?47,3'hi,835 $29,345,238 “30
North Car. 9,699.000 29:fi<10.043 3.6.’.‘,511 26,!>'9 745
Snath Car. 4.046,510 7.3( 5.909 7,11'5,354 M,782,MS
Georgia ’.-r0.T.10 6.544.500 10,334 0110 20,19<.5<'q
Florida . 4,120,000 1.288,697 1.391,357 .5,512,261
.Albania... 6,700.000 8,478,018 11,313.670 31/42,10 5
Miasissli>pl None 1.796.*230 3.9.485
Louisiana. 4.5*1.10) 25.621.73 12X35.510 40.‘>16,04
Arkansas.. 3,092,623 7 5,R>3,C<?7 J. ~S i
TeneMee. 35,i;'9,802 4i.iib3.io_
In the last of the above tables it will be,
ob'-. ri :• thut most <>l H e tat<* <!<•<>!." iu ißßUfhow
a vast increase over those of 1860, notwith
standing the fact that the figures given for
1860 are those est after the weeding out
process of repudiation of unauthorized
bonds. The last column in the above table
represents the highest point reached by the
debt of the states, including the bogus
bonds. attar the elimination of a large part
THE WEEKLY CONSTITUTION; ATLANTA. GA, MONDAY. JULY 9,1894.
of which the figures indicating the debts in
1860 remain.
It is not my purpose to enter into a dis
cussion of the merits or demerits involved
in the repudiation acts of the southern
states. Nor could I do so in the necessarily
limited space of magazine discussion. The
record of every state is made and the ac
tion of each was the result of mature delib
eration. For reasons satisfactory to the
states themselves, and which have become
a matter of history, a large part of the
bonded indebtedness of these states’was de
clared to be illegal, unauthorized and un
constitutional, and the states felt them
selves justified in repudiating obligations
to which they had been committed without
due process of law, and by corrupt officials,
whose record of barter and sale of the
credit of their respective states forms a
part of the reconstruction history of the
south. As for myself, I take the broad po
sition that for every dollar borrowed in good
faith on the legal credit of any state a dol
lar should be paid. Going further than
this, I think the equities involved call for
the settlement by the states of such bonded
obligations as were taken in good faith,
and the proceeds of which wese clearly
used for public purposes. But for* such
bonded indebtedness as was fixed on the
southern states by those who overturned
both human and divine law to obtain au
. thority which did not exist, and who used
the good names and credit of the southern
states by which to obtain money which
. they poured like water down the channels
of their riotous and unceasing demand for
pillage and plunder, 1 do not think that
either equity, justice or law should require
payment by the states which were so pal
pably robbed, and which, generally speak
ing, did not even receive the benefit result
ing from the proceeds of the bonds to which
their names were so mercilessly pledged.
In his treatise on "The Laws of Public
Securities.” a well known authority on the
subject (Burroughs, p. 5) says:
“Ail who deal with a public agent or offi
cer must take notice of his powers. He de
rives his authority from the law which au
thorizes his appointment. No person may
profess ignorance of the extent of the pow
ers of a public agent."
This is a broad principle of law which no’
only justified the states of the south in i
fusing to meet obligations which did n
belong to them, but which also preven
sueli action from menacing the good star.,
ing of their credit, for under the new cot
ditions established with the reorganization
of internal affairs after the south had ob
tained possession of itself, a basis of cred!
was established from which it would be a.
reasonable to that the southern state
would depart as it would be to charge th.a
Pennsylvania, Michigan, Wisconsin or Mil
nesoia would repudiate their obligations o'
today because they had done so in the past ,
But, as stated above, I do not propose t
discuss the merit of the repudiation act:
it being my purpose to deal not with cans
but effect, and to disprove Mr. Huir.v'
charge that by the repudiation of a i.-.r;;
part C/l their bonded indebtedness, 3vhelher ;
good, bad or indifferent, the-southern states.
haze sustained, and are now suffering ironi.i
an irreparable loss in the consequent loss of
i credit. 1 quote from Mr. Hume’s article,J
in which, after dwelling upon the fact than
the development of the so-.uh has been nut-1
terially retarded by its lack of credit, i.ndj
by the fear of capital in entering a terri-|
tery in whi< h the repudiation “skeleton >
stalks, the following:
"Georgia is the south's recognized leader
tn wealth and enterprise, but most of Geor-.
gia’s railroads are in receiver’s hand:-., rig
).- not so much that outside capital avoid I
the south. There is plenty of it so. king
coal, iron and timber lands, and even jnifi
j ions have disappear 1 in her Imkiet x
I ‘boomer’ cities and towns. h.v is it. th q®
that when we come io their railroads, tb.e-r*
! stocks are shunned h.v investors, and «-v n
tbeir mortgage sccurpies go at murder.T
discounts? fs it not because, being
public institutions, operating under stat®
leg iota timi and super’, isior:. they share to *
considerable ex' 'tit th" discredit of Hie: 1
legal masters and sponsors?” '
After this. Mr. Hum? proceeds to showj
that not only all the railroads, but corporr/t
tions generally, including the coir ties a.-s
' towns of the south, “are w re or ‘w’
i ferers in the same wav.” Ic is ■
; iii a. charge so i.rav T »vr
I tent ■■:''•
;.out giving* either x-cls u» -, ~’to sw...
i it. Instead of the conditions being correctly
i stated, the exact reverse of rhe situation
; described by Mr. Hume is true. Netih- r
I the cities nor Hie counties of the south are
| any greater sufferers from lack of credit
! than the counties or the cities of any other
i section of the country. < n the contra ry,
j the credit of the city of Atlanta is gilt-edf-,e,
I and during the past decade, she has not i
I sue 1 a bond which has not been promptly
i taken at an exc-edingly Iqw rate of intcr-
I e:-t. So it is with all of the leading south-
I ern cities, wher the restrictions of the law
I Love been clearly complied with in the use
of their credit.
A.s to the southern railroads being 1n
; volved in receivership complications as the
1 result of the repudiation acts cf souther..:
i states the conclusion is too far-fetched to
invoke serious consideration. Suffice it to
. the ■' ll rail oad sy: -
terns in the 1 nite i States and Canaria are
now in the hands of receivers, and there
is not a state in the union whose raiirca-1
mileage is not seriously involved iu receiv
ership litigation as the result of precisely
the same conditions that have led to the
appointment of receivers tor some southern
roads. A most notable instance is thut of
the vast system of the Union Pacific rail
road, and even the fact that the govern
ment, itself, was Its sponsor was not suffi
cient to keep it out of receiw. rship coils.
I hav< not the statistics b ' re me, but 1 . -
probability is that they will show that not
less than three-fourths > f the railroad
mileage of the I. nit 1 States is now in the
hands of the courts, and being administer
ed by receivers. Even in states with such
I unquestioned credit as New York, Con
necticut and Massachur?tts, the New York
and New Hngiand railu id he.s recently
joined the reeraversihip procession, In which
it marches side by side with some of the
greatest rallroa 1 systems of the New
England, Middle, Western and Pacific
slates.
And yet the great financial firm of Drex
el, Morgan & Co., one of the strong
est banking institutions on earth, did net
stop to decry the credit of the so it hern
i g. <iies when it signified its willingness to
i undertake the reorganization of ti. ■ East
I Tennessee, Virginia and Georgia, and the
’ Richmond and Danville aystems, which tra
‘ verse the states oi’ Virginia, North Caroli-
• na, South Carloina, Georgia, Alabama, Aiis
. sissippi arid Tennessee. If this giant
among financial establishments does not
I know today whose credit is good, then it
! is not worth while for Mr. Hume and my
j self to disowss it fo’ the purpose of throw
i ing light or. the subjeer.
It is a fact not generally known that an
' attorney general of . w York delivered
i an opinion in whi 'h he stated, officially,
i that, after a careful investigation of the
; facts, he saw nothing that should in any
wise impair the credit of th’e state of Geor
gia. I refer to the decision of Attorney
General O’Brien,which was extensively cir
culated when rendered, and which was
given as the result of a call for his con
struction of a statute of New York,
to ascertain whether that statute would
permit saving banks in New York to
j invest in an issue of three and
i a half millions of Georgia bonds, sold
I at a premium in .1885, to well known New
! V orK ’ financiers. The statute referred to
j allowed “saving banks to invest in the
! stocks and bonds of any state that has not,
I within ten years, defaulted in the payment
! of principal or interest on any debt uu
' thorized by any legislature to be contract
j cd.” The petitioners, being the purchasers.
' were represented by Hull. N. J. Hammond
i and Mr. Pat Calhoun, of Atlanta, who were
I opposed by the holders of the repudiated
bonds of the state of Georgia, whose coiin-
• sei were Mr. Hutchins, receiver of the
; American National bank, of New York, a.nd
an ex-member of congress from that state,
i ana ex-Chief Justice Lochrane, of the su
; preme court of Georgia. Counsel for the
| petitioners admitted that Georgia had not
I paid the interest on the repudiated bonds,
j but contended that because they were un
' constitutional issues, they were not in any
; fair sense a "debt authorized by any legis
: lature' to be contracted.”
*After a full investigation of the merits of
the case Attorney General O’Brien render
ed a decision, in which he took the position
' that most, ofthe repudiated bonds ofthe state
‘ of Georgia had been issued unconstitu
i tionally. Still he thought that a certain
j very small portion held by certain parties
ought, under the circumstances, to be paid
on the doctrine of estoppel, said parties
having purchased certain bonds after a
resolution of the general assembly of Geor
gia recognizing their validity. The attorney
general thought that under the law of
New York the question of unconstitutlonaii
ty could not probably be considered, though
under a technicality savings banks could
not Invest in the bonds. He took pains to
say that there was nothing in the investi
gation which should, ’n the slightest de
gree, impair the credit' cf the state, and
this decision, and particularly the last
statement referred to, was complained of
severely at the time by those who were
seeking to discredit the state, they charging
that it was a voluntary endorsement of the
state of Georgia, which the attorney gen
eral of the state of New York went out of
his way to give.
As for development, railroad and other
wise. the answer of Georgia and other
southern states completely refutes the
argument and annihilates the conclusion
that repudiation has reduced credit, and
reduced credit has retarded development.
Proof of the fact that more outside capital
has sought investment in the development
of Georgia than in probably any other
state of the union of the same population, in
the past fifteen years, is absolute proof of
the unsdundness of Mr. Hume’s charge
that withered resources awaiting develop
ment are the indirect result of the repudia
tion by- the state of unauthorized debts.
Let us look into this. For the past ten
or fifteen years the record of railroad build
ing in the United States shows that Geor
gia has led, almost every year, in the mile
age of new roads. Taken as a whole during
that time and the mileage of new railroads
built in Georgia by far surpasses that of
any other state in the union. Most of the
capital put in such development has come
from the outside and the repudiation "skele
ton” had no terror for it. Some cf the
greatest railroad systems in the
United States have pushed their
lines into and through Georgia
and the remarkable advance made in the
railroad development of the state has been
but the index of that which has kept pace
in the improvement of other resources. As
t has been with Georgia so it has been
yjth other southern states, the railroad
nd general development of the south At
antic and gulf states having been more
for the same period of time, than
hat of any section of the country. Mil
ions upon millions of dollars—most of it
iiitside capital—has been invested in un
locking the mineral resources cf Tennessee,
I'Georgin, Alabama, Virginia, and West Vir
ginia, and to a greater degree than in any
other territory of the same area have the
untold iron, coal, mineral, marble and hard
;-ood industries of these states responded
to the quickening touch of outside capital.
In Florida, which Mr. Hume says "is
r -nonsihle for four or five millions more”
orepudiated bonds, and the development
of which, from the demoralization of
r. pudiation, If Mr. Hume’s argument
be true, would be seriously retard'd
by the loss cf credit incident. to
repudiation, we find the most remarkable
evidence of the recent work of
outside capital to be found probably
In any state in the union. Eminent north
ern capitalists, ranking among the greatest
financiers of the country, are there wing
with one another in the apparent effort to
see which can put the most money In
transforming that beautiful land of sun
si.''ne into the garden Spot of the conti
nent. Untold millions of northern capital
have been expended in building vast, railroad
systems, ’establishing steamship lines, con
structing the most beautiful hotels on
earth, and in otherwise adding to the mar
velous gifts which nature had bestowed
upon the state of perpetual summer. Neith
r Mr. Biant, nor Mr. Flagler, nor Mr.
Disston, nor Mr. Duvah h;is stopped to
inquire into the issues involved in Florida’s
repudiated obligations, nor has the credit
of Hie state been lessened one whit by such
repudiation. The men who are spending
their money there in such abundance that
it is impossible to keep up with the details
c.. the progress of the state, have Satisfied
themselves thut the past is a matter of
record, a.nd that the present is an open book
of brilliant promise for Florida’s future.
Whatever may have been the conditions
leading to repudiation, they do not exist
t■■•>;■’, nor can they exist again under
the wise restrictions of the reorganized
fundamental law of the state, which, as
other states have done, has thrown every
possible safeguard around its credit, render
ing it, like that of every other southern
state, as secure as that cf any state in
the union.
In tliis connection it may be well to call
attention to the fact that the power of
the states of the south to contract debts
was, before the war, practically unlimited,
as compared v.ith the restrictions placed by
the states, upon themselves, after the war.
T■.■? necessity of this limitation was evolv
ed from the dear experience bought from
reconstruction legislatures, which would
have broken the Bank as England if they
had had the same opportunity to trifle with
its credit that they did with that of the
states which their usurped charge came
near bankrupting. The fundamental law
of most of the southern states, like that
of a large majority of all the states of the
union, now inhibits state endorsement of
corporation securities —a fruitful source of
corruption and plunder before the war,
and particularly during' the reconstruction
era—and forbids the use ~>f the state’s credit
for any other than administrative,. educa
tional, or other such emergent purposes.
I am aware that a favorite argument of
those who hold the states responsible for
•‘.ll repudiated obligations, even th mgh
admitted to be unconstitutional, fraudu
lent, and unused for state purposes, is
that innocent holders of the state obliga
tions should not be made to suffer the
penalty of the misuse of the state s credit.
And yet to hold the state responsible for
an obligation, in the making of which it
had given no authority whatsoever, would
bo to put a premium on corruption which
would, if such a principle held good in
law, imperil the credit oi’ even the strong
est and richest of the states of the union.
Carrying this argum nt to its logieal con
clusion would force the United States to
redeem every dollar of counterfeit money
in the hands of innocent holders, on the
ground that they accepted the money on
their faith that the government was back
of it, and was responsible for it.
The government itseif established the
precedent that the Innocence of the bond
holder was not to be considered as over
coming the illegality of the issue of securi
ties held, in the adoption of
the fourteenth amendment to the
constitution, which compelled the re
4>udiadon of debts contracted either
for direct or indirect aid of the rebellion.
Millions of dollars of bonded indebtedness
of the southern states were thus repudiated
by the federal government itself after the
war. Nor were the debts so repudiated
incurred directly in aid of the rebellion,
though they were placed, constructively,
in that category. Vast nincunts of money
were raised on bonds by southern states,
not in aid of the confederacy but for the
absolute protection cf lite against tne
ravages of destitution and starvation. It is
not strange, therefore, that under the pecu
liar conditions existing at the time, the
line of demarcation between such obliga
tions as the southern states were forced to
dishonor, and others which ihcy did dis
honor for reasons fully as satisfactory to
themselves, was necessarily vague.
The conditions ot the south before the
war and after the war widely differed. A
new order of things grew out of the ashes
of the fires left by the northern armies.
The change was even greater than that
in which the new republic found itself
when the colonial armies cut the United
States from English territory. Then the
same homogeneous people, fresh from the
strife of war, turned to the vocations which
they left when they went to the field of
battle, and devoted their energies with
renewed enthusiasm to the upbuilding of
industry and commerce on the same lines
that they had pursued before. How differ
ent with the south in ’65! A new era of
industrial development and commercial pos
sibilities dawned with the freedom of slave
labor, l>y which the attention of the south
hud been confined almost entirely, most
unfortunately, to agricultural pursuits. Tax
valuations had been cut in half, and whan
the south finally awoko t© & r«411-
zatlon of the fact that It was
in the possession of its own people
once more, It was astonished to find ‘-hat
its overwhelming burden of new indebted
ness had increased in thrice the proportion
of the decrease of its ability to pay. I rr ®*
sponsible, corrupt, and despotic ctficiais
had gotten hold of the ledger of its credit,
and had stamped debt—debt—debt—on every
page. No people under the sun ever faced
such a task. The lack of limitation cn the
credit of the state, which had been safely
guarded and protected by the conservatism
and the honor of the people, had been
taken advantage of by a horde of cormorant
dervishes who, if they had been permitted
to continue their triad carousal, would have
placed a greater debt on the southern
states than could have been met by the
combined nations of Europe. Yet such were
the instruments chosen, amid such sur
roundings, to absolve the —llierri states,
by virtue of the fourteenth constitutional
amendment, from certain portions of their
bonded indebtedness. Thus directed by the
government to reorganize the fundamental
law of the southern states, they paid more
attention to the details of making robbery
easy th«i to the special work of repudia
tion assigned to them.
On regaining possession of their capitals,
and resuming the administration of affairs,
the people of the respective southern states
addressed themselves at once with becom
ing energy to the work of restoration and
rehabilitation, and to the more important
task of establishing laws and regulations
to meet the requirements of the new order
of things. This great task they soon per
formed, and so wisely did they execute it
that the credit established by the southern
states on the new basts, and under the
new era of their progress, was at once put
on a firm foundation, which nas been
strengthened year after year by the never
failing test of experience. It will not dq
for Mr. Hume to point to ancient evidences
of dishonored and unauthorized debts which
are being hawked about the stock market
of New York, at a few cents on the dollar,
to establish his charge that the credit of
the southern states has been seriously im
paired by such repudiation. The only
demonstration cf the correctness of his
proposition would be the failure of the
southern states to negotiate loans on their
credit, under reasonable terms, during a
comparatively recent period. Instead of
this being true, the record of daily stock
market quotations shows that the obliga
tions of the southern states since they
have fully gained possession of themselves
and have adjusted their laws to meet the
new conditions growing out of the war,
float side by side, and under essentially
the same terms, with those of the states
of every ether part of our common coun
try.
Since it has been demonstrated, therefore,
that the credit of the states ot the south
is not now at the low ebb Mr. Hume ar
gues it to be, and since it is clearly demon
strated that their credit compares ta ■" ■
bly with the states of other sections which
have no record of repudiation, and since
these two propositions form the premise o!
Mr. Hume’s doleful conclusion of the direct
result of past repudiation, it follows, that
being wrong in bis premise?, his conclusion
is equally erroneous. Nor Is it demonstrated
that this conclusion is wrong, on the prin
ciple that his premise is incorrect, for the
actual evidence of statistics and of finan
cial records, corroborated by the daily <*e
tails of the unprecedented development of
the resources of the southern states. In
the influx of outside capital, proves both
his premise and his conclusions to be false.
And yet, notwithstanding the fact yha;
the affairs of the south have become tb.oi
oughly adjusted to prevailing conditions
and that the credit of every southern state
is thoroughly established, I would not bi
understood as taking the position that they
should even now refuse to pay a single doi
lar which can be shown to have been usx.
honestly for public purposes, and for which
the state got value received, even though
such a loan did not conform strictly to th
- requirements of the law. If h
can be satisfactorily demonstrated th:.i
among the repudiated bonds of ’he south
ern states there is a’»y part of them whier.
represents money obtained for the stat",
and used by the state, which has not yet
been paid, then the settlement of such
should, and will be, made in due time. 11.I 1 .
was necessary to apply- a heroic remedy t
save the south by cutting from it the sores
of the reconstruction thievery. If in ap
plying the remedy injustice was done, in
the necessity- for immediate and incisivi
action, correction will no doubt be man
when conservative sentiment is convince:
that correction is due.
(‘T.ARH TfOM-ici ■
Editorial room, Constitution, Atlanta, Ga.
SAVED HER LIFE.
Nervous Debility the Result of Chronic
Caturrh.
Mrs. Dicy A. Lewis, of Independence,
Mo., writes: "The Pe-ru-na Drug Manu
facturing Company—l had been afflicted for
fourteen years with nervous debility and
chronic catarrh. I had tried three of our
best physicians, but failed to get any re
lief. I have taken five bottles of Pe-ru-na
in connection with Man-a-lin, and feel en
tirely well. I know Ithat Pe-ru-na has
saved my life.”
Depression of the nervous system from
chronic diseases of any kind is quite likely
to cause a condition of the mucous mem
branes of the nose and throat so nearly
resembling catarrh that many times they
are identical. Besides the usual symptoms
of catarrh, the patient has brown specks
before his eyes, slight dizziness, roaring in
the ears, attacks of nervous headache,
palpitation of the heart, flashes of heat,
followed by slight, chilly sensations, faint
ness, depression, despondency, forebodings,
foolish fears, and many other symptoms.
Pe-ru-na has, again and again, been found
to be of great value in such cases. The
first dose gives prompt relief to the most
distressing symptoms, and a persistent use
of it for a reasonable time will permanent
ly cure cases of long standing.
A complete medical treatise on catarrh
ami catarrhal diseases will be sent .ice
to any address by The Pe-ru-na Drug
Manufacturing Company, of Columbus, O.
BUTLER WANTS ANOTHER PARTY.
There Arc Not Enousli for the Pres
ident of the Alliance.
Columbia, S. C., July 5. (Special.) I resi
dent Marion Butler, of the National farm
ers’ Alliance, in talking today about the al
liance in the coming national campaign,
said the producers cf I lie i nuntry nw.'
tain influence in national affairs and they
could not get it through either ot the ex
isting national parties. Coniiiuuiie. <■
“This condition is soon going to force a
new alignment of parties and it seems to
me that all patriotic people ought to do
all they can to see it come about as soon
as possible. This result will have to come
about by the solid v.est and south and ail
wliose interests are common with them,
uniting and nominating and electing the
administrative officers of the government.
“What I would like to see come about
is for a national convention to be called
representing the interests I have named
and made up from oemocrats from the
slouth and by that I mean democrats with
due reference to The News and Courier,
and the people’s party from the west and
from the north who want to join, nominat
ing a presidential candidate and electing
him The people’s party out west is noth
ing more than a party of converted demo
crats, but who, on account of their preju
dice to that name, will not admit it,
but they are as good democrats as the Jef
fersonian democrats of the south.
"The real democrats of the south and
the populists of the west have the same
principles, while the so-called democrats of
the western states are nothing more than
goldbug democrats and have never yet
done anything’ to elect a democratic presi
dent. These western populists or Jefferson
ian democrats will not go into a demo
cratic convention with that name, but if a
convention with the Amerie in party or the
Jeffersonian democracy were called they
would combine with the democrats of the
south to nominate and elect a president.
I would like to see this combination effect
ed in time for the campaign of 1896, but if
it is not done by that time, It is simply a
few years before it will be done.”
NEURALGIA.
Is It The “Seven Devils” of
Scripture ?
A New Theory Successfully Tried ii
Dunkirk and Carefully Investigated
by a Blade Reporter for the BeneM
of the Medical Fraternity.
From Toledo Blade.
The physicians and inhabitants of Lyn
kirk, Hardin county, Ohio, are astonishej
at a recent happening in that usually quid
hamlet. .
Dunkirk is a little village, half-way be
tween Toledo and Columbus, on the
Sylvania and Ohio Central roads, and Mr.
C. F. Broseke, a leading German citizen,
keeps the city flour mills. He has one son
and three daughters—all grown.
Miss Anna Broseke, the second daugh
ter, is a young woman twenty-eight
old. It is her remarkable sickness and still
more remarkable cure that has startled the
doctors and astonished her relatives and
friends.
Learning that Miss Broseae was at Pres
ent in Toledo, and boarding at No. 823 Mul
berry street, a representative of The Bluue
called on her. Upon being requested to
relate the peculiarities of her recent sick
ness and subsequent cure, the young lady
said:
“I am glad that you have called, and am
willing my name should be made public,
as good cannot help but result to some
other poor sufferer. For many years our
family lived in Falmouth, Ky. Nine years
ago, at the age of nineteen, I began to
suffer from neuralgia in the head. Jhe
pain nearly killed me. The neuralgia then
scattered all over my system, but was
worse in the stomach. Six physicians at
Falmouth and vicinity treated me for
several years. My father paid out hun
dreds of dollars for their services. I be
came worse and worse as time advanced.
I was given up to die. After meals my
stomach would distress me terribly, ana
at times I would nearly choke to death.
I could not drink tea or coffee and couiu
eat but little. It seemed as it what little
food I did eat would ferment at onvx:.
1 became weak, very weak. Night ana aay
I prayed for relief in death.
"Two years ago we moved to Dunkirk, O.
The four physicians there were called, one
after another. One called my trouble heart
disease. Another said it was acute dyspep
sia. instead of improving I continued to
grow worse. One day last spring my
father read of a case similar to mine in
The Cincinnati Enquirer. It told how a.
medicine called Dr. williams s Pink I ill-’
had cured a lady of neuralgia of the
stomach. The symptoms and experiences
were exactly the same as mine. I became
at once interested and hopeful. My tather
went to Upper Sandusky the next day
and purchased a box of Pink Pills. I com
menced taking them last May, and began
to improve so rapidly that the whole vil
lage was interested. The doctors were sur
prised but admitted that the Pink, bills
were a godsend to me. I used thirteen
boxes in all. The neuralgia is entirely
gone. My stomach is strong and heakay,
my appetite good, and my sleep is pelf'e
ful. 1 came to Toledo November 9th, pre
pared to finish my musical education,
which my sickness compelled me to aban
don nine years ago. I attend the musical
department at the Ursuline convent. 1 dis
like newspaper notoriety and on-j consent
to this interview to let the
experience and faith in Dr. nlianis s
Pink Tills, and the hope of saving the life
of some other poor sufferer whose case has
been pronounced hopeless.”
Miss Broseke is an intelligent and well
educated lady of natural refinement. Her
honesty is unquestioned. Her whole ap
pearance is now a picture of health. Her
cheeks are r-sy, her eyes are bright, ana
her every move is indicative ot perfect
M'" I 'vviiliams’s Pink Pills are now given
to rae'jieblic as • c --nf-.-ilina I’q-- 1 bulb 1 —
and nerve r.-- _
weakness arising
of the blood or shattered nerves, two fruit
ful causes of most every ill that flesh is
heir to. These pills are also a specific
for the troubles peculiar to females, such
as suppressions, all forms of weakness,
chronic constipation, bearing down pains,
etc., and in the case of men will give
speedy relief and effect a permanent cure
in all eases arising from mental worry,over
work, or excesses of whatever nature. The
pills are sold by all dealers, or will be sent
postpaid on receipt of price, (50 cents a box,
or 6 boxes for s2.so—they are never sold in
bulk, or by the 100) by addressing Dr. Wil
liams’s Medicine Company. Schenectady, N.
Y., or Brockville, Ontario.
Cotton Contest.
No guesses will be received on th®
cotion crop citer August 15, 1804.
The result will be juraidc known just
ns soon ns we receive the official
lignres front the New Orleans Cotton
Exchange, which will be about Sep
tember Ist, next.
I<et everybody send in their sub
scriptions with their guess before
August 15th. Don't forget the date.
THE CONSTITUTION.
SCHOOLS AND COLLEGES.
Souihsrn Shorthand and Business University
ALSO PURCHASERS OF
MOORE’S BUSINESS COLLEGE.
Over 6,009 students in good positions.
Without a peer in the southern states.
Bookkeeping. Shorthand, Telegraphy and
Fen Art taught. Handsome catalogue sent
free. A. C. BRISCOE, President,
Atlanta, Ga.
Mention The Constitution.
SULLIVAK
& CRICHTON’S ZX/ //>/
. vr, SCHOOL CF
ATLANTA, GA. CATALOGUE FREE.
Mention The Constitution.
LAW’SCHOOLr
University of Georgia.
Term begins September 19, 1894.
For catalogue and information address
SYLVANUS MORRIS,
Professor of Law,
Athens, Ga.
Mention The Constitution.
MEDICAL DEPARTMENT
Tulane University of Louisiana.
Its ■advantages for practical instruction,
both in ample laboratories and abundant
hcipital materials are unequaled. Free ac
cess is given to the great,Charity hospital
v.'ith TOO beds and 30,009 patients annually.
Special instruction is given daily at the
bedside of the sick. The next session be
gins October 18, 1894. For catalogue and
information address
PROF. S. E. CH VILLE. M. IX, Dean,
P. O. Drawer ?fii. New Orleans, La.
Mention Tho UonztHution. 1
'Miss M.J.BALBWBFS SCHOOL
Augusta Female Seminary,
STAUNTON VA.
Opens Sept. sth, 1894. Closes May 28th, 1895.
Unsurpassed location, building and grounds. Full
corps of teachers. Board, etc., with full English
course, 8250 for entire season of 9 months. Music,
Languages, Elocution, Art. Book-keeping, and
Physical Culture, extra. Write for Catalogue.
Mention The Constitution.
Virginia Mage Tor Young Ladies,
ROANOKE, VA.
Opens September 12, 1894. One of the lead
ing schools for young ladies in the south.
Magnificent buildings; all modern improve
ments. Campus ten acres. Grand mountain
scenery, in valley of Virginia.; famed for
health. European and American teachers.
Full course. In art and music unexcelled.
Pupils from seventeen states. For cata
logues address the president.
W. A. HARRIS, D. I\,
~ Roanoke, Va.
Mention The Constitution.
IRJtiy J Y(W distribute circulars and sample
wwH | lUy for us? No canvassing. Salary and
“■•l— expenses to travel. Send stamp. Adver
tiser’s Bureau. 447 6th Avenue, New York City.
Mention The Constitution.