The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1872-08-08

Letter from tho ConptrolIer.Gcneral
Comptroller General Neagle has writ.
ten the following letter to Governor
Scott. regarding the status of the South
Carolina bonds:
OFFICE OF COMPTROLLER. .GENeRA1
COLUMBIA, s. o., August 3. 1870
10 ms ErceAency Robert X. Scott. Go.
rernor.
| DEAR SIR: Within the past few months.
have received q large number of letters
from persons holding State of South
Carolna bonds, anxiou,ly inquiring
when the interest is to bs paid, or If
there IL any danger Of any part of the
DEBT being repudiated; and, more espe.
ciaiiy, what does the present administra.
| tion intend doing with the new bonds.
L, therefore, address this communica-
,lon 10 you, In which I purpose to EN-.
oody my views on the subject Of inquiry
Id euon manner as to furnish an answer
10 these letters, as far as am competent
10 answer them; but under existing lnws.
you are the only one in this Stnte who
can give forolble answer ty inouiries
on the subject of it's finances, as all laws
passed slnce you were made Governor
have withdrawn the duties of tile Comm
troller from that department. and made
the Auditor of State the officer whose
duty 1t Is to execute The laws; who also
Is your apppointee, aud whom YOU can
remove at will
This being the case, feel certain that
am correct III saying that you alone
can answer these questions forcibly.
Now. the first thing to inquire, is as to
the duty of the Executive Department
towards creditors of the State. and if
that duty is not performed, who is re-
sponsible for the failure? Tie first duty
OF the Executive Department, then. ia to
execute the laws; therefore, as the Gene.
raj Assembly of South Carolina did, in it's
legal capacity, levy tax sufficient to pay
interest on the bonded debt of the State
In every Act authorizing the issue OF
said bonds or stocks, in strict conformity
with section z, article 8, (page 21,) of
INC Constitution, where the following
occurs as condition of every Act autho-
rizlng the creation of q debt: "Aud
every such law shall levy tax annually.
sufficient to pay the annual interest OF
such debt"
The first Act passed under your ad.
ministratlon authorizing the issue OF
bonds Is an Act entitled IAN Act to au-
thorIze loan to redeem the obligations
known as the bills receivable of the
State of South Carolina" Section 6 of
said ACT, mo. 49, page IT, Acts of Spe.
cial Session, 1868. says that al annual
Tax, IN addition to all other taxes, shall
be levied upon the property Of the State,
sufficient to pay the interest on the loan
herelnbefore authorized, ut the times
when suoh interest shall full due. Now.
sir. this language is emphatic, and AZ far
as the Legislative department of the Go.
vernment is concerned, they have dis
charged their duty and fulfilled the re-.
qvirements of the Constitution. This
act also authorized you, as Governor of
the State. to negotiate the said loan,
lSeo. IL Though the Financial Agent
and the Treasurer's report Of 3lst Octo.
Der, 1871, shows that these bonds were
issued and sold by the Financial Agent
OF the State In accordance with law, and
yet the Auditor of State fails to enforce
this part Of the Act. which is impera.
tive. the Constitution and Act both de-
clarlng that it Shall be done; although.
when these bonds were being offered on
the market, these clauses in the Act and
the Constitution were both parad. d as
the strongest evidence of the value of
VIC ocCuEity.
II you will continue the investigation.
you will find the very next statute, No.
IA, page IL, authorizes you to raise.
through the Financial Agent, one mil
lion OF dollars of money in coupon
bonds, aud not only authorizes the lew
OF sufficient tax to pay the interest on
the bonds, but declares that it shall be
levied, IN very strong terms. Section &
provides that al annual tax, in addi-
ton to all other taxes, shall be levied
upon the property of the State, sufficient
to pay the interest on the loan hereinbe.
fore authorized, at the times when such
interest shall full due" Almost every
other provision of this Act gives the
executive officer discretionary powers,
except that just quoted, which is manda-
tory; and ii this loan has been is,ned.
then the holders thereof have IL cloar
title to their interest. But instead of
their getting it, we see every other pro
vision Of this Act executed, except the
one which the Act itself declares sha
be enforced. 1 think have gone fur
enough into details to establish the fac,
that 1t is clearly the duty of the Auditor
OF State to levy and collect a sufficient
tax to pay the interest Oh the public
debt. Dut fOr vour o,un cot;,foot,o,