The Fairfield herald. [volume] (Winnsboro, S.C.) 1849-1876, 1868-07-15


THE PUBLIC DEBT.
BY reference to the report Of tho
Comptroler.G General, addressed to this
Department on tho 25th of November,
1867 copy Of which is herewith trans.
mittcd, it will be seen that the entire
public debt of the State, on the lst day
ofOctobcr last, together with the inter.
est which had accrued up to the samc
date, amounted to $8,37s,255 Cd. De.
Quoting from this sum all the bonds and
stocks issued between 1860 and 1865 for
military purposes, and the interest on
the same, amounting to s2,s54,679 08,
the debt due by the State on the lst Of
October last was $5,523,576.56. of
thus sum SIS, 5,4O7,2l5.23 is the principal,
and sllG,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 Carolina, the annual payment Of
1891 ,42459. which is the interest upon
the debt at 6 per cent, in addition to the
maintainence of the State government,
woul ! be excessively oppressive.
The contingent liability Of the State
from endorsements of railroad bonds, is
as follows:
South Carolina Railroad
bonds payable in SS9
secured by first mort
gag e.--. ..--.. So, 2,os3,3l24O
Charleston and Savannah
Railroad bonds, paya
ble in March, 1877, Sc
cured by first mort
gag e.---.--.-.-..- -. sos. 900. 90
Northeastern Rail Road
bonds, payable March
!, 1862 secured by
first mortgage. -. 90, 10000
Laurens Rail Road bonds
payable IN 1879, ae-
cured by first mort
gage. .--...-. rs, 900. 90
Spartanburg and Union
Railroad bonds, paya.
BILE in 1873 and 1879
secured by first mort
gage. .35O, 000. %
Greenvile and Columbia
Rail Road bonds, paya
Die in 1881, 1882.
1883 and 1885,. -. 945, 5,47l.2l
O.; the endorsement upon the Green
j.. vile and Columbia Rail Road bonds,
100000 dollars is under authority of
the Act of 1861; and $2O3.848.89 is
under the authority OF tie Act Of 1866,
passed for the purpose of enabling the
con,p%Ny to pay tho interest past due
and to fall due prior to the lst Of Janu.
ary, 1868, upon coupons and upon the
mortgage and guaranteed bonds This
guarantee is upon certificates Of indebt
cdness The sum Of 81 ,62238 is upon
the outstanding debt Of 1.-The company
upon which thero is no lien = the guar.
antee having beeu made where the
holders Of demands upon the company
surrendered three dollars of demand for
one dollar of bonds.
The ordinance Of the Convention,
adopted on the 18th March, 1858, de-
clares shat all Acts or pretended Acts
Of legislation, purporting to have been
passed by the General Assembly Of the
State, since the goth 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 nopera-
tive Until 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 effect Of the Ordi.
nances passed by the Convention, va
rious opinions being eatertamed .as to
questions Of their legal validity. But,
in any point view, to remove all APP
prchensions upon the subject Of bonds
Of tka>ag;reenvlle and Columbia Rail
Road Company, now held by citizens If
the State, and guaranteed by the State,
recommend that tho Act of 1861, au-
!thorizing the issue Of 5000, 900 Of bonds,
and the Act Of 1865, providing for the
guarantee OF certificates Of indebtedness,
and also of bonds Of one 10 three to
satisfy other Indebtedness Of the Compa.
MY upon which no lien existed, be vail.
dated by the action of your body. Per.
sdns.holding bonds under tho Act Of
1851 hold them in lieu Of the original
mortgage bonds due them by the Gom-
pany, which mortgage bonds were sur-
rendered to the Cornpany--the guaran-
teed bonds of the State being taken in
payment of the same. upon the faith Of
the Act Of 1851. 1t would operate as
gross fraud upon shese bondholders
now to declare their bonds void. Com
mon honesty would require, il the Act
is not validated, chat all persons holding
guaranteed bonds should be. allowed
the privilege Of surrendering the same,
and ofreceiving in lieu thereof the orig.
nal mortgage bonds Of the Calumbis and
Augusta Rail Company, and bonds Of
the South Carolina Rail Road Compa.
nv. and are entitled to your early con,
h'leratjoM
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