The Sumter watchman. [volume] (Sumterville, S.C.) 1855-1881, 1871-03-29

to borrow, on the credit of the State Of
South Carolina, sum not exceeding
one million two hundred thousand
pounds sterling; such debt to be repre-
seuted by coupon bonds; the same to
bear six sounds per ceutum per auuum,
interest, in gold, payable semi.annually;
the principal and interest thereof to be
payable in the city of London, in Eng-
land, and the principal thereof to be
redeemable and payable within twenty
years from the passage Of this Act, In
gold coin.
SEC. 2. Such debt, hereby authorized,
shall be known as the Sterling Funded
Debt. The bonds to be issued id pur-
suance hereof shall be signed by the
Governor, and couutersigned by the
State Treasurer, under the seal of this
State. They may be issued in sums of
not less than one hundred pounds ster-
ling. The coupons attached to such
bonds shall be sigoed by the State Trea"
surer, or executed in such manner as
the Governor Of the State may approve,
his signature to said bonds being evil
dence Of such approval.
Sec. 8. That all of the bonds authori:
zed by this Act, or their proceeds shsil
be used exclusively in exchange for, or
in payment of, the existing Public Debt
Of this State heretofore authorised.
SEC. 4. That all the bonds hereby
authorized shall be placed in the hands
of Financial Agent of this State, to be
appointed by the Governor, Attorney
General, Treasurer, Comptroller-Gen-
eral and Secretary of State. Provided,
That said Financial Board shall; re' e
no compensation. Such agent snail
reside 10 the city Of London aforesaid ;
and the Financial Board hereinbefore
authorised, or a majority Of them,
through the Financial Agent of the State
in New Nork, are hereby authorized and
directed to enter into an agreement with
such Financial Agent as may be ap-
pointed as aforesaid for the negotiation
of said bonds; for the payment OF the
interest thereon until the maturity
thereof; for the payment of said bonds
at maturity, and for the exchange Of the
same for any of the public debt of this
State, or for the payment of any Of said
public debt, from the proceeds OF such
new bonds as they may deem to be for
the interest Of this State: Pro0sded,
That none of the existing public debt
as aforesaid shall be paid before the
maturity thereof out Of the proceeds OF
the bonds hereby authorized. unless the
same can be purchased and redeemed at
rate not exceeding the rate at which
such new bonds shall be negotiated;
and, for the purposes Of this Act, and
in paym .ut ofiuterest on said bonds, and
in the redemption thereof, the pound
sterling shall be deemed to be the
equivalent to FIVE dollars in gold coin OF
the United States: Provided, That the
Financial Agency created by this Act
shall not be placed iu the hands Of any
one person, but shall be entrusted to the
management of responsible Banking
House Of first class reputation, in the
New aud Old World.
SEC. 5. That an annual ta1, in ad-
dition 10 all other taxes, shall be levied
upon all the taxable property within
this State sufficient to pay the interest
an tho debt hereby authorized, ut the
time when such interest shall become
due and payable, and such interest shall
be renitted TO said financial Agent in
London and further similar tax shall be
levied in the same manner sufficient to
provide for Sinking Fund oftwo per
:centum in gold per aunum on the full
am ,unt of the debt hereby created, which
Sinking Fund shall be RENTED to the
said Financial Agent Of the State in Lon:
.ou, to be applied to the redemption and
payment Of two per ceutum of the
prin cipal Of the said Bonds at par. The
Bonds thus to be paid shall De annually
drawn, by lot, at such time aud place,
aud under such regulation as the Govern
or ofthe State and said Financial Agent
may determine, and on all such draw
iugs the American Minister to che
Court of St. James in England, or ehe
Secretary of the American Legation, In
London, or the American Consul at
London, shall be invited to be present,
and to certify to such drawings.
SEC. 6. From time to time and when
any of the existing public debt Of the
State shall be redeemed, by the exchange;
OF the bonds hereby authorized, or shall
be paid from the proceeds thereof, such
debt, so redeemed or paid, and the evi'
dence thereof, shall be forthwith abso-
lutely cancelled, aud shall not be re.
issued in any form; and the total
amounts thus redeemed, or paid shall be
annually reported by the Comptroller
General.
SEC. 7. That the faith, credit and
funds of the State ofsou.h Carolina are
hereby solemnly and irrevocably pledged
for the puuctual payment Of the prin-
cipal and interest of the debt hereby
created, and for the annual redemption
of that portion thereof for which Q siuk-
ing fund is authorized sud the issue BY
the Governor of any Of the bonds hereby
authorized shall be conclusive evidence,
10 favor of any bona fds holder thereof,
that the provisions Of shis Act have
been complied with By the State emossqrs, e :,
and that such bonds are legally And
properly created. . - ~ -. i.
SEC. 6. The honor and credit, Oh this