The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1868-12-08

| Of Barring Brothers l. Co., IL London.
| In witness whereof have hereunto set my h1nd,
and caused the seal Of the State to be affixed, ut
Columbia the first day Of July, in the year OF our
Lord one thousand eight hundred and thirty-eight
and in the sixty-second year OF the Independence
| of the United States.
PIERCE NJ. BUTLER, Governor.
(~) Countersgned by
J seal. wM Id. HAYSE
f~~) Comptroller General
Copy of Coupon.)
SOUTH CAROLINA STATE STOCK.
Under an Act ratified list june 1888.
Barring Brothers G Co.. Lond"n: ,o
Pay to bearer on the LIST July, 1868, twenty-five
pounds sterling, being half years interest on bond
No. - for $1,000 sterling.
f25 SSterling. Cashier Of Bank of state
Of South Carolina
(Copy of endorsement on ,oithin Rond.)
| In pursuance and by authority Of an act Of the
Legislature of the state of South Carolina, ratihed
on the first day of June, one thousand eight hundred
| ard thirty eight.
The President and Directors of the Bank of the
State Of South Carolina with capital Of three NIL
lion one hundred and fifty thousand dollars includ-
ing the present loan for value received, assign and
transter the within bond to -, or bearer. and
hereby guarantee the punctual payment OF the prn-
cipa and interest of the said bond, as it becomes
due. at the place specified within. r
President Of the Bank OF the State of South Carolina
The other million of the Fire Loan was Is-
sued in United States currency six per cent.
stock, and there is now outstanding unre-
deemed (s319 ,000) three hundred and eighteen
! thousand dollars Of it held in the United
| States.
The balance of the debt of the State refer
| red to in the 18th section, for which the profits
had been ''preoiouSly pledged and set apart, "
was correctly stated by Governor McDuffie to
be S850,000, bearing five per cent. interest.
This, If we add interest for five years, amount.
ing altogether to 81 062 500, Was paid under
the act of Assembly of 1843 by the application
OF 5000, 900 Of the surplus revenue from the
the profits OF the bank during the five years
from 1889 to 1913 inclusive, which amounted to
no less than 81 085, ,2O5 91; and from that date
the whole capital Of the bank-three million
one hundred and fifty thousand dollars, in
Guiding the FIRE Loan with the profits and &c
cumulatons thereof-stood pledged, IN
manner the most distinct and sol
emn. to the payment of this debt. The
profits since 1888 have been seven million
three hundred and eleven thousand four hum
dred and thrty-one $500 dollars (S7,S1l,-
4S1 56), and after charging upon this sum the
payment of the balance OF the debt secured by
the prior pledge 1882, 2,500) it leaves (S6 49,
9S1 56), say six and hulf million dollars dedl-
Gated to the Fire Loan debt, and there has
been applied to that for interest and principal
during the same period three million one hum
dred and sixty-nine thousand one hundred and
thirty-one dollars and twelve ccnts (S3, 169,-
131 12) leaving balance OF these profits dedl-
Gated to the payment of the FIRE Loan" debt
of ($3, ,279, ,8OO44) three millions two hundred
and seventy-nine thousand and eight hundred
dollars and fortyfour cents, which with the cap:-
tai of the bank, including the Fire Loan money,
making six millions four hundred and twenty
nine thousand eight hundred dollars and
forty Jour cents ($6, ,429, 800 ~ is represented
by the assets of the bank, and covered by the
pledges OF 1888. Among these assets is c
large debt due by the State, and II it bo lnclud-
cd the assets are ample for the payment OF all
the bank debts, including circulation, (bank
bills) deposits and the Fire Loan.
Since 1888 when the pledges were made to
secure the "Ftre LodR," the State has perma-
nently Withdrawn from the b INK 81, 562, OBI IL:
Charge upon this the amount paid on the Old
ana five hundred dollars 1882 500), and three
million one hundred and sixty-nine thousand
one hundred and thirty-one 12-100 dollars (S3,-
1G9 131 12) on the Fire Loan debt, and there
remains three million five hundred and thirty
one thousand nIno hundr, d. and three O6-lOO
dollars (s3, ,531 .90S O6) misappIed to other uses
than to the debts secured BY the previous
pledges Of the bank profits and capital. BE.
sides this the State owes to the bank current
debt of more than half q million. l will adopt
the round figure, and call it four millions OF
dollars without interest. This amount, or so
much of it as may bo necessary, the state ls
bound by every consideration OF honor, OF good
faith, of law and Of equity, as being the sole
corporator and contributor OF tho capl,,
tai, to bring back to the corporation until
all its debts are paid. 1t could not have
been Withdrawn exce3t as trust for
the purpose of the pledge, and the mo-
ment that trust is denied, 1t IS violation
of good faith and OF all the moral and legal du-
ties required by honor and public faith. Ii
this we're transaction between citizen capi-
taIist and the creditors of his corporation,
Judgment on it would not be hesitating, timid
or doubtful. And shall less be expected from
State than from citizen? 1t is clear the bill
holders have, as 1 have said, merltorlous
claim upon the State. II it would pay the
bank, then the bank would pay them. Ii IL
would not pay the bank, then the Stale should
pay Mem The Fire Loan creditors have the
same claim, with the addition of specific
pledge of particular funds, larg, part OF
which the State has got into its possession,
and, am panied to say 1t, Is also seeking,
through it's Governor, Legislauree and counsel,
to get possession OF the balance by means OF
legislation, litigation, ill-nature, threats of re-
pudlation, and of damages against defendant
creditors for what the Governor calls ''unW ar
rantable litigation" In short, it is repetition
of the Old story OF the downstream lamb dis.
turbing the waters OF the upstream wolf.
The assets Of the bank, including the debt
due by the State, are near five mill .ons Of dol
| lars l$5 600 000). Its solvency, therefore, de-
pends: FtrSt upon the solvency OF tho State,
and OF that there is no doubt or dispute-even
Governor Scott avows that ''no State in the
Union is more solvent, or has faircr prospect
OF promptly meeting all it's liabilities and,
secondly, upon the honesty, good faith and
ability Of tho "stranee man. whom the prov-
dence OF God, or His wrath, has put to admin
lister the credit and character of tho State.
And here her friends, aud those OF her citizens
who were hore to know and remember her an
cient FtGes uberr,rna, may BLUSH and bo
| silent.
About the year 1913. a strong party in the
| State, led by men OF the highest consideration
for their abilities, charao; er and iLhuence, pro-
posed to wind up the bank. One ground of
objection to this, and perhaps the decisive one,
was that it would be violation of tho pledges
of its profits aud capital Tor payment OF tho
public debt. This was denied, but the pledges
and the duty of their sacred servance were
mover denied. Never an individual was found
80 hardy as to CLAIM that the State could take
and appropriate the bank property, assets and
funds 10 its own use. regardless OF the liens in
favor Of tn, public creditor. The legislation
is unbroken in acknowledgment of the binding
obligation Of the liens created by the solemn