The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1869-07-22
seuth Carolina Rinanoially.

the late war left the Southern States has
lneyer been fully understood by large
Imaiority of the people OF this NORTH.
Their material condition was utterly de.
| plorable. Fortunes had been Inst, bust.
ness interests ruined, railroads DESTROYED.
fields had remained Implanted, provi-
sions were far from plenty, and mouey
was: not to be had. The temper of the
people, too. was melancholy, and not at
ali ravorab!e to effort or enterprise. They
were depressed by the failure of their
political hopes. and looked forward to
the future with anything but cheerful or
confident expectations. In fact, their
situation was less encouraging than that
OF the settlers OF new country, for, in
addition to their poverty, they seemed
without ambition to rise from it.
This state OF things, however, could
not be otherwise than temporary. 1t
was the natural consequence of q long
and determined conflict, where one Of
the parties is eventually compelled to
yield to the authority of the other. The
necessity of improving their condition
was urgent, and whether they finally nc
cepted their status quo or not, the South
ern people very soon commenced build
ing and planting as far as they were able
to provide for their immediate wants.
In addition, considerable Northern caDi.
tai found its way to the South, often
times to its great relief; old business re-
lations were resumed; permanet govern
ments were established; and now, five
years after the war, it may he safely said
that those States are fairly on the way of
recovery from their unhappy condition.
The State which appears to have the
best start and the stendiest progress, as
yet, Is South Carolina. While she suf-
fered fully as much, if not more, than
any other of the Southern States, her
prospects to-day are more satisfactory.
The reason or secret of this is the excel
lent management of her finances. The
great want of the States has always been,
and still is, money. They had none at
the close of the war, and they have but
little now, which all goes mainly for the
neceesaries of life. In this repect, South
Carolina is more fortunate than the rest,
and the history of her financial recon
struction is of more than ordinary inte-
rest, especially as it shows how materially
New York city has aided her and what
confidence capital has in the ultimate
prosperity of tho entire South.
In 1865, Immediately after the war. the
public debt of South Carolina was about
S5, 400,O 900, and her State securities were
worth but twenty-five cents on every dol
lar. The debt, aside from the large
amount of securities held in the State
was owed in Europe. where, in the DAYS
of king cotton, the South made its prin-
cipal negotiations. When the provis-
ional government of President johnson
was established, and the people had
elected Governor and Legislature of
their own, the first thing to be provided
was money enough at least to pay the
State governments expense, The Le-
gislature, accordingly, authorized the
Treasurer to issue paper currency to the
amount of about $3.50, 900, which should
be legal circulating medium in the
State. These issues were called .'bills
receivable, and wore rs good as 'sgreen-
backs with the people. Soon after, the
provisional government gave way to the
regular government authorized by the
reconstruction laws of Congress, new
constitution was framed, new men were
elected to office, and a new policy
adopted. The old governing class Of
South Carolina was replaced by new
element, composed largely of Northern
men, and the emancipated blacks. This
reconstructed State government, feeling
like necessity with the provisional gov
ernment, also issued "bills receivable"
upon the same basis as the first issue,
but the people-the old inhabitants-
would have nothing to do with them.
They claimed that the Legislature itself
was unconstitutional" and all its acts
illegal. With them the second issue of
"bills receivable" was sourious, and the
newspapers throughout the State denied
the validity even of the bonds on which
the Treasurer was attempting to nego-
tiate loans -stigmatizing them as ebay
onet" and ''scalawag" bonds. So little
faith did majority of the people have
in them, that their value, q little after
the new government came into power,
was sixty per cent. below par.
Under this condition of things the
State authorities were greatly embarrass-
ed. it being difficult to pay even the or
dinary expenses of carrying OH the gov