The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-01-06

that any de0t incurred by the state, OF III u
name or on behalf of the State" while IN IN
surrection or rebellion against the Unlte
States, either to support or defend itself, it
officers or agents, or to aid others engaged i
the same lnsurrection or rebellion, must b
s'held illegal and void," and ''shall never
paid
The issues of bills by the bank during tn
war were: :,
/. Bills which had been redeemed before tn
war, and Withdrawn from circulation, ba
remaining uncancelled, were again put II
Circulation n...................s 998,621 O
2. Bills issued in 1861. 1,572 ,4OO 9
8. Change bills. MISUNDERSTANDING. 7l7,7S9 y
Total. 49,. -. ss. .22S, $40 OF
Deduct from this amount estlmat-
ed amount Of burnt and lost
bills, and we have. ........... 9u33, ,4o4 VI
Supposed to be outstanding at the close o
the war.
Your committee regard this debt of s3,
O53,454 as tainted with the rebellion, 80 tha
| its payment is prohibited by both the State
and National Constitutions.
This report would be far from complete with
out some reference to the litigation IN which
the bank, and the State through the bank, hos
become involved.
Under the provisions of an act for rebuild
ing the City OF Charleston, OF June l, 1888
bonds we're issued by the State to the amount
of two millions OF dollars. Tho provisions o.
the act creating the loan are as follows:
SECTION l. That the Governor of the State
of South Carolina be, and he is hereby,
authorized and directed, in the name oi
the said State, to issue bonds or other con-
tracts, to bs countersigned by the Comptrol-
| ler- General, not exceeding in au the sum
of two millions Of dollars; one million OF
which shall be payable at the expiration oil
twenty years, and the other million at the ex-
piration of thirty years, at rate OF interest
not exceeding six per cent, for the purpose OF
procuring loan on the credit Of the State, to
rebuild that portion of the City Of Charleston
now lying in ruins; that the said bonds or con-
tracts be issued IN uch form, and for such
sums, and the principal and interest be made
payable at such time9 and places, as shall be
most efectual in procuring the said loan upon
the best terms, either in Europe or America;
and that the faith and funds OF the State OF
south Carolina be, and tie same are hereby,
pledged to secure the punctual payment OF the
said bonds or contracts, with the interest there
on.
SEC. q. That in order to effect the said loan,
the Governor is authorized and directed TO
commission such agent or agents as the Presi-
dent and directors Of the Bank OF the State OF
South Carolina shall appoint, which said agent
or agents shall be empowered to receive the
said bonds or contracts from the Governor and
Comptroller General, and to make all such ar
rangements as in his or their Judgment may
be deemed expedient for procuring the said
money and placing it to the credit OF the state,
subject 10 the draft or order Of the President
of the Bank OF the Stats Of South Carolina.
SEC. 8. The money, when reelized in Charles
ton, shall be deposited in the Bank OF the state
OF South Carolina, and shall become part OF
the capital thereof.
SEC. 10. It shall be the duty Of the president
and directors Of the Bank oil tho State OF South
Carolina to mako proper provisions Tor the
punctual payment OF the interest OF suc1 loan
as may be effected upon the credit of the State,
under tho provisions Of this act, and also for
tho ultimate payment OF the prlnolpal tncreoi;
SEC, II. It shall be the duty OF the president
and directors of the Bank Of the State Of South
Carolina to cause to be opened in the books OF
the said bank ON account III which they sna u
debit themselves with the profits arising out OF
the additional capital, created out of the t%o
millions loan aforesaid, for the year ending on
the first day OF October, in the year OF our
Lord ono Thousand eight hundred and thirty,
nine, and with the future profits OF SAID
loan as the same shall be hereafter all
nually declared; which said fund, with ITS
annual accumulations, shall be considered
solcmnIy pledged and Set apart for "tho
payment of the interest on the said loan and
ihcc fiual redemption thereof Aud it shall Ds
the duty of the president and dA'cctors oil the
SAID bank annually to report to both branches
OF the Legislature The exact state OF that fund.
Sec y. When the profits Of said Bank OF the
State OF South Carolina shall lave paid the in.
terest of certain stocks and redeemed the said
stocks, for which they lave heretofore been
pledged and set apart, the said profits shall
also be considered solemnly pledged and set
apart for the payment OF tho interest OF the
said loan and the final redemption thereof.
It is apparent, from this act:
First. That this is q loan by the State.
Second. .rhe faith and funds of the State we're
pledged to secure the punctual payment oil it,
with the interest thereon.
Th,rd. Tho mouey borrowed was to be de-
posted in the Bank of the State.
Fourth. Tho president and directors OF the
bank were instructed to make provisions for
the punctual payment Of the interest OF the
loan, and also the ultimate payment OF the
principal.
Fifth. The president and directors of tho
bank were instructed to keep an account OF the
profits arising out of this loan, as the same
should be annually declared, which profits,
with tho annual aecumulations thereon, were
to BIO considered solennly pledged for tho pay.
ment Of tho interest on the loan and the hnal
redemption thersof.
S,riH. The pr0ttts of the bank were also
pledged to the same purpose, after the pay
mont of certain debts, for which they had been
before pledged.
This debt, thus created on the part
of the State. with the interest thereon,
was punctually paid and discharged as
it fell due, until July, 1868. The bank
officers up to that time carried out the
ins rnctions of the State contained in the Fire
Loan act.
The corporation known as the President and
Directors of tho Bank OF tho State OF South
Carolina was incorporated in 1872, with power
to sue and be sued, and authorized to issue
notes for such sums, and with such devices as
was deemed cxpedient aud safe, loan money to
the citizens of the State. receive money Or de-
posits and pay away the same to order, dis
count bills of exchange, notes, Sc, DC.
The funds OF the State were deposited in the
bank to serve as capital upon which the busi-
ness OF the bank was to bo carried on.
Throughout all the years from the founda-
ton of the bank down to the close of the re-
ceut war, the bank continued in operation, car
rying out the purposes and exercising the pow
| ers indicated in its charter. AT the close of
, the war, on account of the worthlessness Of
| its investments during the war, it found itself
insolvcnt, and unable longer to carry on its
business.
The State, by act Of December 21, 1855, au-
thorizel and required the president and di-
rectors to collect the assets and property OF
the bank, and hold the same specially appro-