The North Carolina Historical Review Volume X July 1933 Number 3 CONTENTS PAGE THE ADJUSTMENT OF THE NORTH CAROLINA PUB- LIC DEBT, 18T9-1883 157 B. U. Ratchford NORTH CAROLINA CONGRESSIONAL ELECTIONS, 1803-1810 168 D. H. GiLPATRICK DON MIGUEL WALL AND THE SPANISH ATTEMPT AGAINST THE EXISTENCE OF CAROLINA AND GEORGIA 186 John Tate Lanning THE FIRST TWELVE YEARS OF PRINTING IN NORTH CAROLINA, 1749-1760 214 Douglas C. McMurtrie BOOK REVIEWS 235 Driver^s John Sevier: Pioneer of the Old Southwest—Bv James Welch Patton; Schlesinger's The Rise of the City, 187S-1898—By Benjamin B. Kendrick; Vance's Human Geography of the South—By Rosser H. Taylor. HISTORICAL NEWS 243 Entered as second-class matter September 29, 1928, at the post office at Raleigh, North Carolina, under the act of March 3, 1879. t i 1 •' '' '",',.,'' '- < €<•««,' r r r r r , r r i r f r r ' t t r , r ' r.r r r ( ' t ' r t ' ' ' ' ' ' THE NORTH CAROLINA HISTORICAL REVIEW Published by the North Carolina Historical Commission, Raleigh, N, 0, EDITORS A. R. Nhwsomk, Managing Editor D. L. CoBBiTT, Assistant Editor R. D. W, Connor W. C. Jackson Adelaidb L. Fkies THE NORTH CAROLINA HISTORICAL COMMISSION M. C. S. NoBLB, Chairman Heriot Clabkson Nell Battle Lewis Mrs. Thomas O'Berrt R. D. W. Connor A. R. Nbwsomk, Secretary This review was established in January, 192j^, as a medium of publi- cation and discussion of history in North Carolina. It is issued to other institutions by exchange, but to the general public by subscription only. The regular price is $2.00 per year. To members of the State Literary and Historical Association there is a special price of $1.00 per year. CONTENTS OP LAST TWO NUMBERS January, 1933 The North Carouna Public Debit, 1870-1878 B. U. Ratchford Revival Movements in Antb-Bellum North Carolina Guion Qriffls Johnson Letters of Lawrence O'Bryan Branch, 1856-1860 A. R. Newsome Book Reviews. Historical News. April, 1933 The Camp Meeting in Antb-Beillum North Carolina Guion Griffis Johnson Franklin J. Moses, Jr., Scalawag Governor of South Carolina, 1872-74 R. H. Woody Additions to the History of the Swiss Coix)nization Projects in Carolina G6za Schiitz Book Reviews. Historical News. Iti] : The North Carolina Historical Review Volume X July 1933 Number 3 THE ADJUSTMENT OF THE NORTH CAROLINA PUBLIC DEBT, 1879-1883 By B. U. Ratchfobd When the legislature met in 1879 the State was showing signs of economic recovery, and the uncertainty in regard to the prospects of a debt^ settlement was becoming increasingly annoying. Among the citizens of the State the feeling was general that something must and would be done. There was no other question on which there was such a united demand for action. In his address to the legislature, Governor Vance said of the debt It is out of the question for us to attempt to pay it at its face value. Indeed, I do not conceive that there is any moral obligation upon us to do so; . quite one-half of our property upon which our bonds were based was wantonly destroyed by consent of a large majority of those who held them, and no court of conscience upon the earth would permit a creditor to destroy one-half of his security and claim full payment out of the remainder. But we can and should pay something. ... So far as the special tax bonds are concerned . they are not binding either in law or good morals, unless it may be as to a very small fraction honestly appropriated to the State's use and accepted by her.^ This view seemed to be the one held and endorsed by a great ma- jority of the citizens of the State.^ Certainly there were few if any who would have been more liberal than the governor, and some would have adopted a policy even harsher to the creditors. One newspaper proposed : "Let the debt be compromised and reduced to an amount that, without raising taxes one mill, the State Government can be * See North Carolina nistnrirnl Rfvisw, Vol. X. No. 1, p. 1, January, 1933 for artirlp by B. U. Ratchford, "North Carofina Public Debt, 1H70-1H7H." includinc many effort* to reach a compromiHe or adjustment. ' Oovernor'f Me/tsage, 1879, p. 22. * Charlotte Observer, Jan. 12, 1879; Wtlminpton Morning Star, Dec. 31, 1878. Feb. 2, 1879; Carolina. Metnenfjer, Jan. 9, 1879; Raleigh Daily News, Jan. 11, 1879; Th© latter aid, "The (Governor's mes.sa(ce ia in full accord with public sentiment on the Question of the State Debt." 158 The Nokth Carolina Historical Review carried on economically and smoothly, and four per cent interest paid on the debt so ascertained."* This would have meant practical- ly a complete repudiation of the entire debt, and, in view of the relatively light taxes in North Carolina as compared with other states, could hardly have been considered either a fair or an honorable settlement. Yet, as we shall see, the plan eventually adopted did no more than this. Soon after the legislature met, several proposals for settling the debt were made. A group of Virginia bondholders submitted a plan which would have called for. the issuing of $7,571,054 in 6 per cent, forty-year bonds. Under it the pre-war bonds would have been funded at 75 per cent of par; accrued interest thereon, at 50 per cent; and the principal and accrued interest of the funding bonds, at 25 per cent.^ Yet another plan was embodied in a bill introduced by Senator Nicholson. This would have funded the principal of the recognized debt — $16,960,045 — intra fractional interes1>-bearing "bonds" to the amount of $4,666,405 at the following rates: pre-war bonds, 40 per cent of par; post-war bonds, 25 per cent; funding bonds, 15 per cent; and bonds issued during the War, 10 per cent. These fractional "bonds" were to be in denominations from one to 50 dollars, to bear interest at the rate of 1/4 per cent per year, to be receivable for one-third of all public dues, and to be fundable, at the option of the holder, into 4 per cent bonds, par for par.^ The pro- posal aroused some discussion in the State, but evidently was not given serious consideration in the legislature. It was apparently one expression of the greenback sentiment, then so strong in the country, for obviously it was meant that these fractional "bonds" should circulate as currency. The Main Debt Settlement Although such plans received some passing attention, interest was centered mainly on the bill introduced by the commission appointed in 1877 to consider the debt. With few alterations, this bill was soon passed by both houses of the legislature. It passed its tliird reading in the Senate on February 24th by a vote of 25 to 14, and received a final vote of 69 to 48 in the House on February 28th. "^ * Warren N^v/t, quoted in Wilmington Morning Star, Jan. 30, 1879. 'Raleigh OhKerver, Jan. 23, 1879. •Ibid., Feb. 9, 1879. ''Charlotte Democrat, March 7, 1879. : Adjustment of North Carolina Public Debt 159 The act covered all bonds then outstanding except the construction bonds, the bonds authorized by the Convention and legislature of 1868,^ and one issue authorized and sold during the War. All others were to be delivered to the state treasurer, who would give for ("hem new 4 per cent, thirty-year bonds at the designated rates. The principal of the bonds alone was considered, no provision being made for accrued interest.* For convenience the bonds covered in the act were divided into three classes. Class 1 comprised all bonds issued before May 20, 1861, except the construction bonds; this class was to receive new bonds to the amount of 40 per cent of the principal of the old bonds. Class 2 consisted of bonds issued for internal improvements during and after the War with the exception of the bonds issued in 1862 to aid the Chatham Railroad. These bonds were to be funded at 25 per cent of par. Class 3 was made up of the funding bonds of 1866 and 1868, which were to be funded at 15 per cent of par. The bonds falling in the different classes, with dates of issue are given below Class 1 Fayetteville and Western Plankroad (1849-52) $ 50,500 Fayetteville and Centre Plankroad (1855-58) 45,000 Gaston and Weldon R. R. and I^euse and Tar rivers (1854-55) 25,000 Fayetteville and Warsaw Plankroad (1855-57) 10,000 Tar River (1856) 15,000 Insane Asylum (1856-59) 70,000 Atlantic and :N'orth Carolina R. R (1856-57) 1,351,500 Albemarle and Chesapeake Canal Co (1857-59) 224,000 Western R. R (1859-60) 386,000 Western North Carolina R. R (1856-60) 1,136,000 Wilmington, Charlotte and Rutherford R. R. (1860-61) 1,012,000 Cape Fear and Deep River Navigation Co (1855-60) 143,000 For Certain Purposes (Refunding, 1859-60) 1,009,400 Total $ 5,477,400 Accrued Interest 3,271,048.50 Total principal and interest $ 8,748,448.50 •The funding bonds authorized in 1868 were coTenvl by the act. * The act ia entitled "An Act to Compromise, Commute, and Settle the State Debt," and is Chapter 98, Pxiblic Lawt of 1879, pp. 183-88. 160 The North Carolina Historical Review At 40 per cent of the principal this group was entitled to receive $2,190,960 of the new bonds.