- Title
- North Carolina historical review [1933 : October]
-
-
- Date
- October 1933
-
-
- Place
- ["North Carolina, United States"]
-
North Carolina historical review [1933 : October]
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The North Carolina
Historical Review
Volume X
October, 1933
Number 4
THE CONVERSION OF THE NORTH CAROLINA
PUBLIC DEBT AFTER 1879
By B. U. Batchfokd
In a previous article1 we have described the plans whereby
North Carolina hoped to compromise and refund several parts of
her debt as it existed in 1879. Conversion was started, and soon
a majority of the bonds covered by the different compromise acts
had been retired. But a few of them continued to drift in over
a period of several years, and some became bases for suits
against the State. The special-tax bonds, which had been repu¬
diated, also remained a source of special trouble to the State,
occasioning several threatened and attempted suits.
The Construction Bonds
The construction bonds — those issued to aid in the building
of the North Carolina Railroad and specifically secured by a
pledge of stock in that road — provided the least difficulty because
they had received the most liberal treatment, and because most
of the bondholders had agreed to the compromise. The conver¬
sion of these bonds progressed as follows :
1882 ISSJf 1886 1888
Converted . $1,720,000 $2,030,000 $2,577,000 $2,600,000
Unconverted . 1,075,000 765,000 21S,000 1S9, 000
Of the $189,000 outstanding in 1888, the Secretary of the
Interior of the United States held $147,000 as part of a trust
fund for Indian tribes. Accumulated interest of $46,590 on
these bonds brought the total claim to $193,590. Portions of
these bonds matured January 1, 1884, and January 1 and April 1,
1885. On April 15, 1885, the Secretary of the Interior and the
Treasurer of the United States called on the State Treasurer for
i‘‘The Adjustment of the North Carolina Public Debt. 1879-1883." The North Carolina His¬
torical Review, Vol. X, No. 3, July, 1933, p. 157.
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