The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-11-25
Federal Treasures the past year OF over thre
and half millions Of dollars.
TIE CREATION OF A SINKING FUND.

There are In the State treasury S2,134,0 oi
railroad bonds and other securities, which rec
ommend be held and ultimately used as sink
inn fund for the liquidation Of the State debt as
they are of class and character wnlch must IN
crease in value. In addition 10 this, would sug-
gest the prOprlety Of taking into consideration
the very able plan devised by j. G. Holmes, Esq,
OF Charleston, to provide for small sinking
fund. by which the entire State debt may be palu
of by the redemption annually OF a small amount
OF State securities. 1t Is believed that ths plan
would enable us to pay our entire debt In Few
wears, and would convince monied men, AT
home and abroad, OF our determination 10 proViue
for the prompt payment or all our securities rs
they become due. The State being sovereign. no
action can he brought against IL 10 enforce pay
ment or claims against her. Its credit there-
fore. and the price OF its bonds, uepcnu upon its
resources the honor and good faith or the State
Government. The credit of the State Should be
regarded as q sacred trust.
SPECIE PAYMENTS.
The Governor advocates the policy OF the state
having the interest on its debt in gold, urging
that this course would assist very materially in
bringing gold and currency on par. This mca-
sure, he says, would attract foreign capital, en-
courage immigration, and lift the credit and
prosperity Of the State. No section OF country.
he adds. is so well prepared to both pay in gold
and demand gold in return for the products OF
the soil furnished to the markets OF the world.
INSURANCE COMPANIES AND BANKS.
The message recommends that au insurance
companies doing business in the State, as well as
all banking institutions other than national
banks. be required to deposit with the Comptroller
General sufficient security to protect the policy
holders or depoSilors against loss.
ABOUT TIE BLUE RIDGE RAILROAD.
In regard TO the Blue Ridge Railroad, the Gov
ernor says:
AT the spccial session OF the General Assembly
i'm Sentemher 1865 an act was passed auihoriA-
ing the endorsement aud guarantee oil 1Our null
lions of dollars Of the Blue Ridge Railroad COM
pany which bonds constitute 1irSt mortgage
on all the property OF said railrOau company
in South Carolina, Georgia. North Carolina and
Tennessee. AT that time 1t was believed tnat
four millions of dollars, with such ASSISTANCE as
could be procured from other sources, would DC
sutficlentto complete the great thOrongnare anu
omen communication baIween the west anu
Southern seabOard. Every effort has Deen mace
by the president, General j. w. harrlsnl, anu
other gentlemen interested in the result, Dut
without securing the assistance hoped lOr. we
were therefore, left to our own resources. be-
lieving that the interests OF the people o! tne
State demanded the completion OF tile road at IL
early day as practlcaOie
The company concluded to advertise Tor DidS
for its construction. On the Sth of July last the
bids received were opened, and the cOntrac!
awarded TO MesSr5. CrlSsvell co. new sur
vcy and an estimate OF the cost OF the work had'
previOus to that notice, been made by the pres
emf engineer. II was then ascertalned that the
great increase OF the cost OF such work over TIC
original estimates made 1t apparent tllat me lotir
millions OF first mortgage bonds PROVIDED lOr leil
far short OF the means necessary 10 colnpe.e II.
and that 1t would require about eight millions OF
dollars to put the road In running order. Tue
company Impressed with sense OF the impor.
tance OF putting the work under contract entered
into An agreement with Crissvell 4 Co., contin-
gent on the Legislature indorSing Iurther
amount OF bonds sufficient to complete the WORK
1t must be apparent to every member oil tnc body
that the first mortgage, covering the enllre pro-
perty OF the company, and the work but Httle
more than half completed. the whole investment
must remain as dead capital uaill the means are
provided TO finish the road. In any failure on the
! part OF the company to open colnmmnica'ion ~
| with the West the State must be the sufferer. 1t
| would be adding TO direct investment
already made OF a million and half OF
money contingent liability OF fonr millions OF
| dollars neither OF which can he made to meet the
accruing interest without the expenditure OF
more capital for the completion or the road. One
OF two plans should he adopted ut once. The nrst
Is to abandon the whole scheme or direct raii-
road route to the West. lose the three millions OF
money invested by the State tiie City OF Charles
ton and private individuals repeal the act OF Sep
I, mher, 1865, whereby four million dollars more
of bonds guaranteed by the State, would he sunk.
or assist the company in their efforts to complete
the work by such means IA would ne valuaDie 10
them, and at the same time not inJure the credit
OF the State This the committee, authorized 10
make contract for the prosecution OF the work,
believed could he done by an Endorsement OF the
first mortgage bonds OF the road by the state 10
an amount sufficient to complete and put the
road In running order. II their view was incor'
rect then the whole project, from its inception,
was blnnder, and conceived without Thought az
to its cost or the benefits to be derived by the
people OF the State by opening new avenue 10
trade and commerce.
A railroad that will not pay the interest on Its
cost should never be constructed In country
where every we'll managed road does pay largely
An arrangement was made In the Executive
Committee that the company should meet tne IN
terest on the debts put upon the market untll lHc
road was completed and put In running order,
after which 1t was believed that @lease for a term
OF years might DC given, by when the payment OF
Its hrst mortgage debt and interest could certain
lv he guaranteed, thereby leaving the STATE Will
out possible risk OF ever having to pay one dol
lar or her endorsed bonds or THIS ROAD. Having
hitherto taken strong grounds against any
assistance to railroads, ana against any IN
crease OF our State debt that would he lable to
burden the people or the State with heavy taxes,
do not feel ut liberty TO make any direct re-
Communications i'm regard to the Blue Ridge Kali
State, and feeling confident that Ii Is the only
railroad enterprise that will develop our resources
and make other roads leading To our seaJOafn
valuable. leave the question with you TO con.
slider whether the credit OF the State al the present
time admits OF the prosecution OF work on TINS
ENTERPRISE. ! have grave doubts whether the
further Endorsements OF bonds at this time would
not Injurousy AFFECT the value OF our securities IN
the market, as many will not fully understand
that the assistance to the Blue Ridge Railroad
would be o contingent liability, that the state
wonld only be compelled To meet on failure OF the
company to pay their bonds at maturity.
SWAMP LANDS AND THE LAND COMMISSION.
The message indlges in some speculatlons as
to the possibility OF draining and reclaiming the
swamp lands OF the State and. q rosc-coored
picture is drawn Of the grand results which the
execution OF such scheme would bring about.
Passing then to the more practical subject OF the
operations of the new Land Commission tile
Governor says:
Up TO the present time there have been pur
chased in the several counties, for the purpose ol
the Land Commission, - ,001 acres of land, which
Is now i'll process OF survey and division into
tracts of eligible size Tor purchasers and Occu-
pants. ! recommend an additional appropriation
10 this bclciiceut Ub,cci, OF securing homes
for tile worthy AMI industrious mechanic and
laborcr which Will establish many small lar
inerS Ia the place uf the comparatively lev
heretofore holding that relation, an;l consequent
y will insure the better cultivation oi tile SO:l and
the expenditure cl greater portion 0 taer ctrli-
ngs III hoIue instead ui being dlsSlpa led III lux.
ury and extravaganza In distant cities. Tie
bonds issued FOR the purposes OF the Land Com
mission must become OF iirsi-claS5 security, rs
they will not only have the credit OF the state,
hut the money arising from the sales ui the als,
with their improvements a5 an additional guar
antee. Tile annual instn!nens OF payments for
these lands VIII be ample TO meet the interest Oh
them, rs well ~ 10 provide = sinking lUllu Tor
their redemption at maturity without the poSsl-
bity OF having 10 resort 10 taxation for That pur
pose. Their iSSRc, therefore, can have 10 pOSSi-
iItst tlaft.