The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1872-12-01

uot uo petLtr Guan 10 SelecC nlm Tor IL.
CITIZEN.
The BLUE RIDGE REVENUE BOND
SCRIP. G. Mcclure, Esq, "a promi-
nent lawyer and well.known citizen of
Chester,) editor of the Chester Reporter,
thus comments on this i'm portant matter:
Much has been said and written as to
the validity of this scrip, issued in &C.
cordance with on Act passed by the State
Legislature at its last session. Much,
no doubt, has been assumed against it's
legality; we ourselves confess to an OPT
MON against it, and as to which we now
feel that we were in error. The general
facts in regard to the scrip are these:
The Legislature had authorized the en-
dorsement or guaranty of bonds of the
Blue Ridge Railroad Company to the
amount of 81, 900. 900; these bonds, after
said endorsement, had been hypothe-
Gated or pledged to secure payment of
the Indebtedness of the road. The road
bad become. or was supposed to be, un-
d"nhtedly inso!yent, and by i.s insol-
vency the liability of the State to pay
the bonds 30 guaranteed was as certainly
fixed. The existence of these bonds was
highly injurious TO tho credit of the
State. So not having the money in
hand to pay them with, the Legislature
wisely determined to do with them the
next best thing to payment-to compro-
mise then. Hence the Legislature au-
thorized the State Treasurer to issue
certificates CT Indebtedness, entitled
Blue Ridge Revenue Bond Scrip, to the
amount of S1.800,0O0; provided the
81. 600, 600 Of Blue Ridge bonds guaran-
teed by the State were delivered up by
the holders for cancellation. AS we are
informed, the bonds were delivered and
cancelled, and the bond scrip was issued
to the authorized amount. The contract
was perfected and executed.
We cannot think the operation fnan-
cially bad one-S4 100000 of interest
bearing bonds compromised with $780,
O00 OF non-interest bearing scrip-the
same to be received at par in payment of
taxes, and to be redeemed in four yeara.
OF this the tax payers cannot we'll COM
plain, for such issues are ordinarily
bought and sold at o discount. and to
that extent the ax-payers would bo ena.
bled to meet onerouS taxation with less
per centage Of grcenbacks. Suppose
the courts to hold the bond sclip illegal
and void, good faith and common ho.
nesty will require that the holders OF the
cancelled bonds receive bonds of tho
Stnte Of an equal amount to those can.
celed. Are we prepared to make such
lnrge addition to the debt of the State?
Are we prepared to pay, or to he liable
to pay, the interest annually on $4,000
600, from which we have obtained re.
lease by this compromise had by autho-
rity Of the Legislature? We think these
questions pertinent, and worthy of con-
sideration by the people of the State.
The point most strongly urged against
the bond scrip is, that it is unconstitu-
tional, and hence void from illegality.
| As to this we do not now intend any
lengthy comment. But to us it appears
that this scrip comes within the purview
of Section 10, Article TX. of the Consti-
tuition: ''No scrip, certificate, or other
evidence Of State indebtedness, shall be
issued except for the redemption of
stocks. bonds, or other evidences of in
debtedness previously issued, &C."
This meets the facts of the case. The
Blue Ridge bonds were previously is.
sued, and were liability of the State
by its guarantee of them. The bond
scrip was issued strictly for their redemp-
ton.
We throw out these thoughts hastily,
but il, hereafter, We are to attach any
faiM to the legislation of the State, let
tho bond scrip stand.
>---
Tho New York Sun contradicts the
rumor that Col Tennie O. CIah,n' n snhle