The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1871-12-06

To tho Members Of tie Senate and House
Of Representatives.
sGENTLEMEN: Permit one Of the people
to call your attention to portion OF the
public debt, which the Governor in his
message seems to have forgotten or
ignored, or thrown out OF consideration,
as if for the purpose of repudiation.
A few days ago. made some remnrks
in the paper, expressing my satisfaction
that some one had brought before the
community the condition OF the fire loan
debt; and I have been induced to re-
sumo the subject, from learning in the
course of conversation that, from pecu-
liar circumstances, very many of your
honorable body are unacquainted with
its origin and present condition.
The Gre loan bonds are, as then said.
the representatives CT money, losaod by
the BariDgs, Of London, to the State of
South Carolina, through their represen.
tatives, the Legislature. The debt was
incurred at 9 time of great public dis.
tress, just after the city of Charleston
had been destroyed by fire, and one-half
OF its citizens were without food. rai
ment or shelter The Legislature was
called together by the Governor, to de-
wise some means of relief, and adopted
that OF Issuing bonds, bearing Eve per
cent. interest per annum, aud disposinp
of them in Europe The honor and
credit of the State were pledged for their
redemption. Ex-Gov. MoDufIie was in
duced to visit England, and try and
negotiate them, which lie did. It was
found advisable, in order that sale
might be expedited, that the Bank of
the State should be made the manager
OF those bonds, and the bank was made
the agent for paying tho interest, &c.,
and its means were subsequently, guaran-
tesd, in conjunction with the States,
for the fnal payment. This was done.
Gov. McDuf1ie effected the loan, and the
State gave it's bonds, with oil the eua-
ranties. to insure their redemption.
The State got the money it required,
and the lenders, the bonI-holders. had
the bonds, with the hitherto untarnish-
ed honor and credit of the State and
the profits and assets of the bank as se-
curity. Both parties wsTs satisfied, both
having received what they then believed
to be a valuable consideration.
The State, having obtained the money.
gave it to the bank to lend to the suffer.
ers of the late fire. They made the bank
their agent, and the money was loaned
on time; and when the period for re-
paying came round, the borrowers paid
mp their indebtedness and the bank was
reimbursed. It would, then, appear
that the Legislature got the money from
the Baring's. and, through the bank,
loaned it to the people; and that the
people, through the bank. returned it to
the Legislature. The time of the bonds
not having expired. the money was re-
tained, by order Of tho Legislature, in
the hands of the bank, and used as part
OF its capital, and used with profit; but
it was made subject to the payment OF
the interest on the fire loan bonds and
their subsequent extinction.
10 whom, then, would ask, did that
money belong? Certainly to the bond.
holders, ae represented by the Barines
Co. Who are responsible for it? The
Legislature who borrowed it-borrowed
it on the pledge of their honor, and the
bank who guaranteed it by the deposit
Of their assets.
Divested OF all legal quibbles and sub.
tieties. have given q plain statement oi
the affair; and any man of common
sense will recognize the duty of the LIE.
gislature to redeem their credit by paw.
ing back, or earring to be paid back.
the money which they borrowed, and
which the bank holds Tor did hold) OF
the Barings. 1t is still further their
duty to see that it is done promptly, to
redeem their own honor and credit.
The Legislature borrowed the money
on the pledge given with their bonds
lent it to their agent, the bank, to relieve
the citizens. The bank did SO, and when
it called in the loan, it was paid up by the
citizens; and it now remains as the assets
OF the bank, held by that body for the
repayment of the debt. Whose money
was it? The holders of the bonds.
Who were bound to pay it? The Legis.
lature, by its pledged honor, and to pre-.
serve its credit; and the bank, by its
guarantee; and it now becomes your bu.
siness, gentlemen, to see that the credit
and honor of your State remains unsul.
lied. 1t was not case for the courts:
should never have been there, and the
action OF the court has shown that il
ought not; for it has taken two years to
settle it, has really exhausted the means,
and, from present prospects, will take
and exhaust as much more, before they
legally file and promulgate nn opinion.
ONE OF TEE PEOPLE.
The State Of South Carolina