Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1868-07-16
COY. ORR,s LAST COMMUNICATION.
THEPUBLIC DEBT.


By reference to the report of the Comptroller
General, addressed to this Department on the 25th
of November 1867, copy of which is herewith
debt Of the State, on the lst day of October last
together with the interest which had accrued up
to the same date, amounted to SS 37S, ,255 81. De-
ducting from this sum all the bonds and stocks is
sued between 1860 and 1865 for military purposes
and the interest on the same, amounting to s.
S54, ,6790S, the debt due by the State on the lst
of October last was SIS, 523 3,576.56. Of this sum
$5, ,4O7 ,2l523 is the principal and SIG, 36l 33 is
interest. While this debt is small as compared
with that of many other States, yet in the present
impoverished condition of the people of South Car
olina, the annual payment of 1881 ,4l4.59, which
is the interest upon the debt at per cent, in ad
dition to the maintenance Of the State government
would be excessively oppressive.
The contingent liability of the State from en-
dorsements of railroad bonds, is as follows:
South Carolina Railroad bonds, payable in 1888,
chsesson sSessa ~ snd Railroad bonds payable
In March, 1877 secured by first mortgage. 5000 90
North. Eastern Railroad bonds, payable In march,,
Laurens Railroad bonds, payable in 1879 secured -,
spsaaSurs ass and Union Railroad bonds payable "
1878 and 1872 secured by first morgige.... 35ooOo 90
Greenvle and Columbia Railroad bonds, payable In ~
1881, 1882 1883 and 1886. 94547l 81
Columbia Railroad bonds, 100000 is under au-
thority of the Act of 1861 and $203 S48. SO is un
der the authority of the Act Of 1866, passed for
the purpose of enabling the Company to pay the
interest past due and to fall due prior to the lst of
January, 1868, upon coupons and upon the mort
gage and guaranteed bonds. This guarantee is up
on certificates of Indebtedness. The sum of SAL
622 3S is upon the outstanding debt of the Com
pany, upon which there is no lien-the guarantee
having been made where the holders or demands
upon the Company surrende threedollars Of de-
mand for one dollar of bonds. -
The Ordinance Of the Convention, adopted on
the 18th of March, 1868, declares THAT all Acts
or pretended Acts of legislation, purpoting to have
been passed by the General Assembly of the State,
since the 10th day of December, A. d., 1860,
pledging the faith and credit of the State for the
benefit of any corporate body or private individual
are hereby suspended and declared imperative un.
til the General Assembly shall assemble and ratify
the same"
1t is unnecessary to enter into any discussion at
the present time concerning the legal force and ef
feet of the Ordinances passed by the Convention,
various opinions being entertained as to the ques
ton Of legal validity. But, in any point of view,
Sonds Of the % Greenve and "V Columbia u e RAILROAD
Company, now held by citizens of the State and
guaranteed by the State, recommend that the
Act of 1861, authorizing the issue Of $780, ZOO Of
bonds, and the Act OF 1866, providing for the
guarantee of certificates of Indebtedness and also
of bonds one for three to satisfy other indebtedness
of the Company upon which no lien existed, be
validated by the action of your body. Persons
holding bonds under the Act of 1861 hold them in
in lieu of the original mortgage bonds due them by
the Company, which mortgage bonds were sur
rendered to the Company-the guaranteed bonds
of the State being taken in payment OF the same,
upon the faith of the Act of 1861. 1t would ope-
rate % as gross fraud upon these ond-holders now
to declare their bonds void Common honesty
would require if the Act is not validated, that all
persons holding guaranteed bonds should be allow.
ed the privilege of surrendering the same, and OF
receiving in lieu thereof the original mortgage
bonds of their duplicates These remarks apply
with equal force to the bonds Of the Columbia and
Augusta Railroad Company, and bonds Of the
South Railroad Company, and are entitled to
your early consideration.
It is believed that bonds thus endorsed to the
amount of nearly $4,000, 900 will be promptly Ii,
quidated by the companies as they, tall due, and
that the guarantee of the State will be discharged
to that extent AS to the remainder, there IS
more doubt; but in no contingency is it probable
that in consequence of the failure Of the companies
to meet their bonds, the State will have to provide
for more than 100000.
The report ofthe Comptroller General further shows
sss s9osl s ens 0an@Ss amounisa "a ssnu M aso
sat ,as the s tssep Ia ,he s OF ocober 1857
Making a total of ................... sos, ,4ss O6
This includes of Bills Receivable S222O0O, when
had been signed, clipped and carried to cash, pnr-
suant TO the provisions of the Act of 1855 author
sn ueIod ssi5 'ssss ane 4s
Leaving the lst Of OCTOBER 1857 cash balance mn non On
In tile treasury i'i'0s "
The report of the Treasurer, made to this De-
partment and herewith transmitted, shows the op-
erations of the Treasury from the lst day of Octo
Der, 1867, to the lst day of May, 1868.
@ VR
Ss sDes .s,i thai sns has been. . so7 70