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

The Wnnsboro' NerS, somewhat &C.
centric but decidedly independent paper,
says that the bill TO pay the interest on the
State debt in coin "is II good BILL even if bad
''men make money out Oft, because, con-
''sidcred in one aspect alone, it saves over
"S4oo, 600 during the next two years to the
State" This is good reason, indeed, for
supporting Radical measure but we con-
fcss our belief that this time it is our Winns-
boro contemporary which is "goins Off half
Cooked" instead of THE CHARLESTON
News, which opposed the bill rs unwise
unnecessary and unjust.
The Winnsboro' NerS supports its broad
assertions by this ingenious arilhlnctical
demonstration:
"rhc State must by the sale of its bonds at
present prices, G5 on the 100, issue bonds to
the extent of over 81, 200, ,oOO TO meet its stocks
ana bonds to the amount Of $780, 600 that must
be paid In 1870 and 1871. Now, bond bear
Ing coin Interest mt four and q half per cent
would command hundred dollars in currency:
so that $500, 900 OF such four and q half per
cent. coin-intercst bonds would meet the debt
Immediately pressing The annual interest OH
$780, In coin, ut four and q half per cent.
would be $4,000, whereas the ANIMAL inter
est at six per cent on $1,000, 600, would be
$4,000 In currency. A saving, then, results
OF over 100000 on the principal, and of at
least $4,000 in currency in annual interest"
or course, if it be admitted that four md
Il half per cont. coin inlcicsL bonds oil the
State OF South Carolina will command par.
and, that unless such bonds be issued, the
State must emit currency bonds and sell
them mt 65 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 1t
must be paid in coin, two modes of action
are open to the State: !, to offer to renew
The loan, and 2, to sell securities TO pay it of.
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
OIL itsaccrued Indebtedness Either way the
State will have the advantage of dealing in
coin loan, without any reference whatever
to the fact that tho 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 q proper
endcavor to use the credit OF the State TO the
best advantage when renewing or paying Off
q debt as It becomes due.
We do not admit that q South Carolina
four and a halfper cent. coin loan could be
fioated 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 nd.
vantage the s3,ooO.oOo State bonds bypot the
Gated by them in New York, for what purpose
the Ring only knows.