The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1871-03-16
The Sterling Funded Debt and the Fu-
ture Credit of the State.

to the extract made herewith from the Charles
ton Courier. 1t is a statement concerning the
public debt of South Carolina, and more espe-
cially relating to recent Act of the Legisla-
ture, to create an obligation known as the
Sterling Funded Debt. This Act is fully ex-
planned by our able cotemparary, and we are
content to ask careful reading from the tax
payers of this explanation.
But there is one aspect of the circumstances
connected with the operations of this Act
about which we have word to say. The per-
sons designated to carry out its provisions seem
to have excited no little comment when the
bill was upon its passage, and though there was
no serious objections to the apparent object of
the measure, there was manifest distrust con-
cerning the manner in which the trusts i'm
posed might be carried out. Various amend
ments were offered making changes in the
Board of Commissioners, but the duties were
finally confded to certain officials, among whom
is the Governor. And just here is the point we
wish to enforce, and to ask the attention of the
present Governor 1t is currently reported,
here and elsewhere, that there has been
fraudulent issue of State bonds, aggregating
more than one million of dollars Now, this
rumor may not have particle of truth con-
nected with it; but it has been freely alleged,
that this Act to create Sterling Funded Debt
is intended to cover up the aforesaid fraudu-
lent issue. Under these circumstances, we
wish to warn Gov. Scott that the people will
hold him responsible as the Chief Executive
of this State, for the faithful performance of
his duty in the premises. Everything con-
nected with the operations of this Act should
be made clear as the mondays sun, and unless
this clearness and precision is manifested, SO
that there can be no possible collusion in this
matter, and only the legitimate obligations of
the State are allowed to be funded, we can
honestly assure Gov. Scott that the taxpayers
of this State will hold him to strict account
for the non-performance of his plain duty to-
wards them. He has the opportunity to ex-
pose if not prevent any sort of fraud. under
this Act, and we trust that he possesses the
nerve to make the exposure, if it be necessary.
We will patiently await developments, and
will seek to place the truth before the people,
when the proper time arrives. This much,
however, it may be we'll to premise here and
now, and the gentlemen appointed to execute
the provisions of the Sterling Bill would do
well to ponder it. The people will never pay
the additional tax to meot the interest on this
Sterling Funded Debt, and to redeem the prin-
cipal as provided, unless there is satisfactory
evidence that there has been no smuggling of
fraudulent obligations under the provisions of
this Act. Hence, the necessity for an open,
plain and convincing statement of the public
debt of South Carolina, when the consolidated
debt is assumed. If they are honest men, the
faintest suspicion of irregularity will not be
permitted. We append the comments of the
Courier:
The debt of the State before the war, and
even after the war, was small and within easy
compass. Since the war and the advent of ig-
norance and misrule, it has been increased to
an indefinite extent. Nearly every employee
of the Government has become rich, while the
people are taxed more heavily, and almost out
of existence
And get there has not been, and 1t seems aoW
not be, any clear and definite statement Of the
amount of this debt, for achat created or achat has
become Of the public funds. This it is the right
of the tax payers to know. 1t is their money
which has thus been appropriated. 1t is their
debt which has been created. And yet to all
dumb, or the answers are sphynx-like, with
doubtful words or covered lips.
There is, we may affirm, hardly taxpayer,
las distinguished from those who control the
Legislature of the State) who can say what the
real debt of the State is, or for what amount
they are really liable, or by whom the bonds
issued for this debt are held, for what amounts
pledged, or what has been done with the funds
which have been raised by their hypothecation.
Tile taxpayers of South Carolina are kept in as
profound mystery as to their own affairs, as
they are IN reference to those Of the most distant
and unknoa0M parts Of the ag0rld.
We have, it is true, an Actrecently passed to
create sterling funded debt, to be exclusively
used in exchange for, or in payment of, the ex-
isting public debt of the State. But this does
not state what the public debt is. The Act in
spires no confidence because it makes no dis
| closures. When debtor proposes to fund all
of his debts by consolidating them, if all il
right, he first makes statement of the amount
of the Indebtedness for which this new liability
is to be created But here all that we have is
that the bonds issued under this new Act are
"to be used exclusively il exchange for, or in
payment of, the existing public debt of the
State" There is no specification of amount,
or what this public debt thus alluded to, con-
sists. And this is precisely what the people arc
entitled to, and what they have the right to be
informed of.
The Act authorizes the issue by the State of
Sterling Bonds to the amount Of one million
two hundred thousand pounds, (91, 0,0O0.)
The pound sterling is estimated by the Act at
These bonds are to be negotiated by the Gov
ernor, the Attorney General, the Treasurer and