Nothing But Politics

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I found the extended version:

Four centuries later, London was lending to the new United States. "London saw it as a very unreliable developing country, with a black record of embezzlement, fraudulent prospectuses and default," notes Sampson. But the bankers made loans in any case. In 1842, 11 states including Maryland, Pennsylvania, Mississippi and Louisiana defaulted. Setting a precedent that would be used often in later years, Barings bank simply intervened in local politics. In Maryland Barings helped to finance candidates in the next election who were willing to repay. "In the elections in 1846 the `resumptionists' narrowly won, and soon afterwards Maryland raised new taxes which enabled it to repay its debts. The campaign had cost Barings about $15,000; it was worth it," notes Sampson.
Mississippi held out. By 1929 the unpaid debt was estimated at $32 million, and as recently as 1980 London banks were still trying to get Mississippi to repay on the loans it defaulted on 138 years earlier.



it would be still interesting to find out more about the economic data back at that time and compare it to nowadays.

By the way the entire article it worthwhile reading!