The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1869-12-22

The Winnsboro' Ne,nS, somewhat &C.
centric but decidedly independent paper,
says that the bill to pay the interest on the
State debt in coin ''is agood bill, even if bad
s'men make money out oft, because, con-
'tsidered in one aspect alone, it saves over
's4OO, 900 during the next two years to the
"State" This is a geod reason, indeed, for
supporting Radical measure, but we con-
fess our belief that this time it is our Wins
boro' contemporary which is "going off half
cooked" instead Of THE CHARLESTON
News, which opposed the bill as unwise,
unnecessary and unjust.
The Winnsboro' Ne1cS suprorts its broad
assertions by this ingenious arithmetical
demonstration:
1.-THE State must, by the sale its bonds at
present prices, 65 on the 100, issue bonds to
the extent of over ST. 200 900, to meet its stocks
and bonds to the amount of 100000 that must
be paid in 1870 and 1871. Now, bond bear
ing coin interest at four and half per cent.
would command hundred dollars in currency;
so that $500, 900 OF such four and half per
cent. coin-interest bonds would meet the debt
Immediately pressing. The annual interest on
$500, 900, in coin, at four and half per cent,
would be $4,000, whereas the animal inter-
est at six per cent on sl,2OO,000, would be
s72, 900 in currency. A saving, then, results
of over 100000 on the principal, and Of at
least s25, 900 in currency in annual interest"
OF course, if it be admitted that four and
half per cent coin interest bonds OF the
State of South Carolina will command par,
and, that unless such bonds be issued, the
State must emit currency bonds and sell
them at IS cents, there will be the precise
result which our contemporary indicates.
But we cannot admit either premise. The
State debt spoken offs due partly in 1870 and
partly in 1871. When it becomes due the
holders will demand the repayment OF the
principal, but that principal will be payable,
under the legal tender act, in currency and
not in coin Admitting however, that it
must be paid in coin, two modes OF action
are open to the State: l, to offer to renew
the loan and 2, to sell securities to pay it off.
In the first case, the State can offer coin
bonds to the holders of the debt and may
tempt them to renew; in the second case, it
can sell coin bonds in the market and clear
off its accrued indebtedness. Either way the
State will have the advantage of dealing in
coin loan, without any reference whatever
to the fact that the whole State debt was
payable, principal or interest, in coin. There
is no connection whatever between the
swindling job of making the interest on the
present debt payable in coin, and proper
endeavor to use the credit Of the State to the
best advantage when renewing or paying of
debt as it becomes due.
+ We do not admit that South Carolina
four and a half per cent. coin loan could be
floated at par, for the simple reason that
United States sic per cent. coin bonds bring
no more than par.
We are ready to give the devil his due,
but there is nothing in the arguments or the
arithmetic Of our Winnsboro neighbor to
cause us to change our opinion that the coin
bill will not benefit the State, although it
may enable Kimpton and Scott to sell to ad-
vantage the So, 600, 900 State bonds hypothe-
Gated by them in New York, for what purpose
the Ring only knows.