The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-01-11

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also. conclusions arrived at after some particlla
considerations and examination into the condition
OF the city debt; the several plans heretofore pro
poaed TO relieve the people from Its burden; thei
inpotency to do 80, and the vagary OF the sinking
fund; i also offer plan, and explanation there
or which / hope will befound practicable. Just 4
ali, paying all, and may be, saving all. To thes
considerations. and some aoor II pronueng tael l'
sistibly attracted and forced by the eVer.present
dangerous and threatening magnitude OF thu
debt. If the efor prove equal or favorable to TN
end intended-.he relief and regeneratlon or ou
CITY from her oppressed condition snal feel th
Satisfaction OF having esaayed the desire to do my
part OF duty common to every citizen.
orer it thus that all may examine, and |
Iodced feasible that steps may be soon taken t.
its accomnshment; or else. that II 1t be not th'
| hest thGt It may urge those more competent Il
the consideration and solution OF this subject 81
paramount TO all others for this cityi5 future wea
Unon this aubect much has been already said
anl although the result desired has not been fully
| ACCOMPLISHED, what has been said has done mucf
and sxpSs 10 OF she
| Heretofore, the burden OF our taxes was laid u
| the charge OF extravaganza OF he administration
| and every other imaginable cause than the true
The magnitude OF the debt is now plainly be
! held by all who wish TO turn their eyes oil
| thoughts that way, and he,.of Charleston, VINO
does not may well be COMPARED 70 tne ma[nel aIoe
n.
tor OF the approaching storm, rests llsless upon
his couch while his fated ship Is forced ny adverse
| winds upon the furious bosom VI the neaVlng
deep, till dashed upon the lee,shore rocks, hep
less wreck, where all has perished. Our city, our
shtp Ia on such sea; she is heavily deck laden,
while her ballast Is far too scanti on the least
| troubled sea- she must continuously careen from
side TO side, and should gale arise, without she
be we'll mastered, manned and sailed, she will as
inavitabIy snk never TO rise, as will the sun sink
in tlle west this eve to rise again tomorrow.
Our debt Is heavy and toppling over US. and we
are anah.e to avert the Impending ruin, except oy
some means not yet proposed:
The now present sad condition was long ago
| apprehended even before the debt was near 80
great. but, unfortunately, not before 1t was nxed
| Iinon us. some time before and up to 1887,
tbonoh The people were then rich, the community
wns 90 alarmed by the enormity OF the then deot,
that most all other matters or consideration were
comparatively evanescent ana Ia tnat year lucy
to rearrange the debt to be paid In yearly periods
| for twenty five years to come, when ALL lt was
said, would be paid BY the phantasmagorlal tne.
off if q there ever was theeretc hallucnatIon or
man,s mind more opposite to the end desired than
any other, ir Is this deluslye Idea which 30 many
valnly fostered, OF paying sncn deots oy means oi
ward useless wheel to 4 machine whose weight
and friction already jadcs the motive power that
now must altogether stop.
| For upwards OF twenty years tnis conteMpGloiss {
| iupple or a sinking fund was Kept up IN England
to pay her national debt, Parliament and the ma
tion believing, Notwithstanding the mostdecisive
experience to the contrary, that 1t was rapidly
diminishing the public aeo. o.aoo, hoo tho merit
! OF having dissipated this deluslon, the gross
est, certainly, that ever imposed on any people.
| He showed in his work on the National deot,
published In 1919, that the sinking fund, instead
ar dininishinr, had really added-to the debt; and
| he proved to demonstration that the eJcesS 0r
repenue, by taxation or otherwise, aooue srpendt.
hire, Is the only linking fund BY wnlcn any part
Of the debt can-be discharged. MThe increase OF
revenue, - he Observes .or the diminntion OF ex-
uense. are the only means by which the Sinking
fund can be enlarged and Its operations rendered
eectus And an, an the ne 1St
rating at compound interest, or In any other
manner, unless so far as they are founded upon
| this principle, or by borrowing money elsewhere
at arheaper rate than at home, 70 reaeem ths !;
debt at present, worth, are completely illusory.n
| In another part he has shown shat It must not
be supposed that the influence Of the sinking fund
| was negative merely, or that 1t was confined TO
rowed with the Que hand to be loaned out with
the other.n 1t s clear that process OF TINS sor.
| could not take an atom from the public debt, but
in point Of fact 1t added largely to its amount.
The sinking fund has been costly as wen as ae.
| lusIye piece OF Quackcry In England; proved so
fully by experience and demonstration OF her best
political economists and was therefore aoan-
doned.
1t may be safely S2lu tndL IDe shnt LtsulLo
would be found on proper investigation Of each
| and every sinking fund In the world, no matter
where-slmilar causes produce alike effects.
| What kind Of Q balance sheet would the sinking
of this institution, II called upon to.day9 1t has
| been In existence since February 10, 1924 and
perhaps before-lorty-sx years say. How do We
| now find ftp BY last Official report IL appears
that, during this time, there las been drawn from
the people and sunk In this fund the sum OF $751;.
| 624 33 which was inueSted TO compound interest
| and pay the city debt The estimated value Of
oil the assets OF this institution, In May LAST, by
two leading brokers OF this city, Is set down at
s24e 991 26, showing loss OF about seventy three
per cent. OF what was committed to 1t, Instead OF
| increase 80 confidently hoped for by the fathers
and advocates OF that utopian scheme; and it Is
questionable there would be found one dollar
to tine credit Of this fund, while Is probable that
It would be fonnd in debt II charged with the cost
OF its machinery and engtneers during this time.
While those who Instituted this fund may be held
! blameess, having meant well though wrong
came OF it, they cannot be so deemed who still
coniinne it, knowing It's folly by the experience
OF forty six years In this case, and the
judgments OF tile greatest political economist Is
pronounced against such, as not only futile, but
pernlclous, IL ls deemed proper TO here briefly
present the error OF hope for any benefit to be
derived from The SO sinking funds; first. In order
to wind up and discontinue that ghost OF IL ttlat
now exists here and next, 10 admonish agalnst
such in future, especla y mat we see 10 some Oh
great reliance placed upon this rope OF sand fund,
which is however, about as practicable as the
rest OF these plans, and In this there Is no dis.
management meant to their authors.
The first; thoughnot the greatest, error In these
plaus IL Is thought, Is n the estimated value or
the city assets which are placed at 500 900, while
they,afeput worth even $500, 900. Another Is the
Idoeof ad vantage OF sinking fund Into which Is
put the stocks bought In, perhaps, to swell the
amount Of such already there, aud called assets,
too, as II they were obligations OF some other cor.
poration due this sinking fund, and ln this way,
lee getting rich as one would, who, having re-
deemed his discounted notes at bank would
carefully put them away In his strong box. and
call them as so much more OF Ills available
daseLs
II they are put there in order to warrant the
raising of taxes TO- pay interest on them as
|. they were still outstanding. while they
are really bought In and ought to be for
ever cancelled, it Dor ers closely on rails
Ing money by Taxation under false pretence,
aud Is wrong. The true reason for imposing taxes
should be made manifest to every contributor
thereof, and should a0t be perverted from the
purposes raised for under any such thimble.rig.
glng,legerdemaln or squirting jugglery.
But when we come to that part OF the intro
duction OF one OF these plans where particular
stress Is laid upon she assurance that "If this
plan be adopted, twill secure the payment OF the
toho1e debt az bar, &C., &c. in the snort space ol
thirteen years, we are inQuisltive to ask how
and live to that timer To do that, we undertake
to prove by the following figures that 1t would
require for the payment 0fthe debt alone In thai
time, ON annual appropriation or S529, ,s99 II