The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1871-12-07
BONDED DEBT.

u
lions and & bif. .of bondeddeht :.
I BONDED DEBT.
It must not be presumed that the increase in
[the-bonded debtof the State,is the creation, In
any, considerable degree, of the existing ad-
ministration. This increase represents mostly
liabilities contracted under previous adminls-
tfations, the form of the obligation, in some
cases, alone being changed, while q large frac-
ton consists of bonds issued to meet the ma
thred principal and accruing interest of the
nee-war'debt, in order to maintain the faith
and dicredit of the State. 81 - -9f- "
The seven hundred thousand dollars of bonds
issued. for the Land Commission form the only
portion of the; debt actually created by the
present Administa and for this the State
has an ample equivalent in the lands purchased,
which win ultimately repay both principal and
interest. w" -
E Byreference 70 the various Acts cited in the
foregoing statement of the Treasurer, it will be
seen that; with the exception of those author
izing the issue of bonds for the Land Com
mission, they seyerally provide that specified
sum of money shall be raised Oh bonds OF
the State, and not simply that given amount
Of bonds shall be issued.
The amount of bonds to be issued for this
purpose was not specified by law, as our secu-
rtties were untried, and therefore had no de-
terminable market value. If the General AS
sembly had attempted to approximate the prob
able market value of the new State securities,
they would doubtless have rated them at not
more than FIVE or ten cents on the dollar, pro-
yided that in this they had been guided by the
views of the opposition press, which, IN its
efforts to break down the State credit, fastened
upon these securities, in advance, the stigma of
a threatened reputation, and declared that
they would be worthless to the holder.
But it was believed by the Financial Board
ithat,opr securities might be so made to appre-
lciate as to benego.iated at par, and that mil
lion in bonds would thus purchase million OF
Is fhs result Of the financial policy adopted,
these new bonds commanded, in the early part
of 1870, from so to IS per cent Of their par
Value, and so we'll satisfied was that our secu-
rities-bearing, as they did, six per cent inter-
est, payable in gold-would, in the natural
order of things, further appreciate, that re-
fused my conse Mt to sell even at those compar-
atively high rates. This apparent confidence
of capitalists in the State Government aroused
its opponents to combined effort to depreciate
the bonds, and not only we're the most active
Individual efforts made to discredit our securi-
ties, but even the Chamber of Commerce and
tbs Board of Trade of Charleston lent their aid
to. the scheme of depreciation. The exchange
ahle value of a State bond depends First, upon
the ability of the State to pay the interest upon
it as it accrues, and to redeem it at maturity (;
an3, second, upon the recognized and acknowl-
edged disposition and intention of those who
administer the affairs of the State, 10 provide
for the punctual liquidation of all it's just obli-
cations. AS the resources of the State were and
'are unquestionably ample, even on an ordinary
scale taxation as compared with its lndebt-
.edHess che class of persons especially hostile TO
the State Government, and the principles upon
which it is founded, directed their etforte 70
make it appear to capitalists that the State ad.
ninistration was corrupt and prCflgate, and
that q, popular reaction had taken place that
would soon bear them into power. Founding
their claims to consideration upon these false
pretences. and pretending to represent the peo-
pie of South Carolina, they boldly proclaimed
their purpose to repudiate all debts contracted
SUBSEQUENT to the adoption of our new State
Constitution. -
J AS. by this course of action on the part of
men protesting to have the honor and credit of
the State peculiarly at heart, the purchasing
value OF, the bonds was seriously diminished,
thereby requiring an increased amount IN bonds
to raise given amount in money, it follows
that they and net this administration, are re.
sponsible for any undue increase in our bonded
debt, upon the just legal principle that every
man is accountable for the natural consequent
ces of his own acts. Added to these causes for
the decline in the value of our securities was
the manifest want of confidence aEiong capl-
talists in the management of our finances by
our Financial Agent in New York.
In proof that this scheme to discredit the
Government of the State has its origin in polit-
ical causes, 1 cite the following extracts from
the Charleston Daily Ners, widely circulated
journal, published at the commercial centre OF
the State. 4 The first Of these extracts. taken
from the issue of that paper OF date OF July IL,
1868, but ten days after the new State Govern
ment; went into operation, makes 1t evident
rites was formed almost simultaneously with
the advent of the present administration and
before it could nave rendered itself, by any act
of its own. obnoxious to the charges of corrup-
ton or improvidence:
"sBAYoNET' BoNDs.-It would doubtless be
a very comfortable thing if the debt OF the
State could be paid, or the interest funded, un-
til the people, under legitimate government,
Are able to meet their public obligations. But
tbis canyot be.ionerby the motley Legislature
now in sessiesAi K Columbia ;-nor can they, by
the issue of 'bayonet bonds, provide, as pro-
posed. for the deficit in the annual revenue ol
the State. -,
eyery property holder in South Carolina, and
as long as they usurp the machinery OF the
law, may compel the payment OF taxation
Negro Legislators, negro Sherifts and Degre
Constables may distraiu, and there the scheme
of financial whitewashing will come to pre-
',''s beyond this they cannot go. What eapi
talist would touch 'bayonet bonds issued by
our bogus Legislature. Would New York &. OF
Boston touch these bonds, issued by authority m