Sunday, January 18, 2009

Which American states have defaulted?   posted by Razib @ 1/18/2009 11:39:00 PM

Some of you may know that California is in a budget crisis. A significant portion of the proposed stimulus package is going to go to the states which are in a financial crunch because of tax shortfalls. But did you know that the in the 19th century several American state went into default to European bankers? Below the fold for the list....

Arkansas (never paid in full)
Indiana (eventually paid)
Illinois (eventually paid)
Michigan (never paid in full)
Louisiana (never paid in full)
Mississipi (repudiated debt, never paid)
Florida (repudiated debt, never paid)
Maryland (eventually paid)
Pennsylvania (eventually paid)


One of the justifiers of the repudiation of the debt in Mississipi was Jefferson Davis. This caused some issues when the Confederacy went looking for financing from those Europeans who Davis had argued a decade before should be stiffed.