21 FEBRUARY 1925, Page 15

AMERICAN REPUDIATED LOANS

[To the Editor of the SPECTATOR.]

Sin,—My grandfather possessed many worthless bonds for loans to American States, repudiated after the Union. I always understood these were not loans to the Southern States for the purpose of financing the Civil War, but repre- sented money lent for railways and developing the country. That they were repudiated simply on the States being merged into the Union would seem to be as much a quibble as if in private life a woman refused to pay debts contracted before marriage ; and one feels there must be some good reason for the repudiation, but I never see it alluded to, and should be grateful for an explanation. If it was that they were too poor, surely the positions are reversed now.

Americans think it would be very unjust if private persons who lent their money to the Allies in the War should not be paid by the countries to whom they lent it ; but that would seem to be the position into which they put private persons here in the last century, unless there is some explanation morally satisfying. You—a friend of America—will anyhow not be unfair to her.—I am, Sir, &c., [We published the facts with regard to the repudiated loans in the Spectator of October 14th, 1922.—En. Spectator.]