Many were undoubtedly valid obligations on the part of the States.

The repudiation of these bonds was excused on the ground that they were generally issued to aid railroads which had been practically seized by the Confederate or the United States governments and had been worn out for their benefit; that interest could not be paid during the war; and that war and the Reconstruction Acts had so reduced property values that payment of the full amount was impossible.

The last reason is true of some States, though not of all.

The prompt payment of interest on the reduced indebtedness has done much to restore the credit of the South, and the bonds of some States now sell above par.
Extravagance had helped to overthrow the carpetbag regime.

The new governments were necessarily forced to be economical.