The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-08-09
COZ. SCOTT ON THE DEBT.

His Views on the Payment of Past-Due
| sInterest, and ON the Reg n
iCharges OF the Commercial Ware
ihoase Company.
Governor Scott has addressed the following
letter to Messrs. Henry Clews & Co., bankers,
New York, relative to the payment OF interest
ON the public debt:
| COLUMBIA, August 6, 1872.
Messrs. Henry Cie,os d Co., Bankers, No. 80
Wall street, Ne,o York:
.GENTLEAEN-YOur letter OF the 2lst June
has remained for some time unanswered In
consequence OF my not being able until the
present moment TO furnish you with the de-
sired Information.
iOn account of the many Inquiries from
holders of our State bonds, deem 1t my duty
Eto write you fully on subjects touching, not
only the payment OF the interest, but the
bonded debt Itself.
IAN application was made at the session OF
the Legislature Of 1s70-'7l 10 pay the Interest
ION the public debt falling due January, April,
EJuly AID October of the year 1872. But In
consequence of no levy of taxes being made
for the payment Of legislative expenses
OF the last session, which were unusually
large, as you will perceive by reference to the
enclosed statement made by the State treas
urer to Judge Willard, OF the Supreme Court,
the money was diverted from the payment OF
interest to meet the payment of legislative ex-
penses, and expenses incidental. thereby leav-
Ing the State treasurer without funds TO meet
the decreased interest, or even curront ex-
penses. Therefore, unless special levy Of
taxes Is made under the law authorizing the
| issue of bonds, and collected Immediately, as
has been urged by many; who believe iJ to be
|! for the best Interests OF the State, lam COM
PEELED to state that no interest can possibly be
paid before January, 1873, as a levy under the
law Is now being made, which will be collect
ed between the 10th of November and 18th OF
January next, and set apart Tor that especial
purpose. ...e.s.-ss,5,
ing of the eXtrayagant charge OF one per cent.
demanded by the Commercial Warehouse Com
pany for the registration OF. bonds, stocks, &C.,
and I must concur In the justice OF the COM
plainte As you will perceive by the enclosed
advertisement Of the 'Csrellna National Bank"
OF this city-which ls also named as one of the
places of registration In the law-that their
Charges are very much less, amounting IN the
aggregate to less than one-tenth of one per
cent, as they charge only one dollar for each
bond or piece OF stock. The complaints Of the
requirement of law in this registration, re-
gard as unjust to the officers Of the State.
The law was not enacted to satisfy the
officers charged with the duty and responsl-
bility of Issuing bonds that there was no frau
dulent issue placed on the market, but to give
the fullest opportunity to the holders OF bonds
to satisfy themselves that the report OF the
treasurer was correct, and, also, to expose the
malignity with which false representations
were made and published broadcast through
out the country, placing our debt at upwards
of thirty millions OF dollars, instead of poesi-
ble debt OF less than sixteen millions.
strictly complied with in the registration of
every bond that has been placed upon the
market.
feel 1t also dee to II to correct mis-
representations that are currently circulated
that the money derived from the sale of bonds
and collection of taxes had been misapplled
by State officers. 1t requires but very brief
statement to convince any man who is not
engaged In Misrepresentation for political
purposes OF the falsity OF these charges. You
will see, by reference 10 the report of the
financial agent, that s3,843, 900 face value
of bonds sold by him between October, 1869,
and September 8, 1871, realized $2,203, T83 38
In cash, which sum was turned over TO the
State treasurer, leaving the balance Of The
entire Issue of bonds-amountlng to 1854 900
In his hands, and pledged as collateral for
the comparatively small sum OF $l,267, ,075 63.
Now, If the Legislature had authorized the
levy and collection by taxes of this last sum Of
money, IL would have placed beyond q possi-
olllty Oh becoming part of the State debt, at
least tone-third ID of the entire amount Of
bonded debt reported by the treasurer.
| ~ SPPSoAo w JlluG IL IL BCaIC6ly USC6S-
sary 10 say word In explanation of increases
o! deot. All the money that has been receiv-
ea oy sale or hypotheeation of bonds, with the
exception OF 100000, has been used in pay
mens OF debts and interest thereon against
tne Stste, accumulated prior to lst July, 1869.
up 10 when time no taxes had been collected,
our misfortune has been, that sufficient taxes
were not levied In one year to meet the ex-
penses of the most economically managed
State government In the United States, as
Inc collection OF taxes for the past four years
has annually amounted to less than 81. .O0O. 900
"a smaller sum than most States collect year
ly for school purposes alone.
feel lustlhed In assuring you that in the
future tax will be levied under the law re-
quIring the levy ola tax to pay the interest
on the loan autnorized. and that the money
the payment of the interest on the public
debt.
have the honor to be, very respectfully,
Your obedient servant,
| ROBERT K SCOTr Gouornor