The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-01-15

CITY QeUC. mdyuf WoSouoh oaeSeSoss ~
warmly, and, in the main, with business like
discretion. The key to his argument is,
that the City OF Charleston cannot afford to
break faith with her creditors; that there
shall be no direct or indirect reputation OF
any public Indebtedness; that the owners OF
city securities shall not be deprived OF one
iarthing OF their just dues. What the Mayor
proposes is:
l. That the holders Of past due city stock be
Invited to exchange the same for ak per
cent ttfirty-year non-taxable gold bonds.
2. That where the holders of past.due stock
decline to make the exchange, "Lhe patri-
ssotic citizens" of Charleston be invited to
subscribe for the new botus at par.
3. That $50, 900 be annually applied 10 the re-
f. duction, by purchase, of the outstanding
city debt.
4. That all holders of city stock. which may
hereafter fall due, shall have the privilege
of exchanging the same for non-taxable
six percent. bonds.
s. That all Improvements OF lots and lands be
exempted from taxation for the period Of
five years.
There is no doubt that even the talk Of re-
pudiation Injuries the prospects OF commu-
nifty. It repels new capital; it drives away
the timid capital which had fingered behind
in the hope OF better times; it prevents COM
mercial development, by suggesting that
men who are iaithless in their corporate ca
pacity are not likely to be over-scrupulous in
their personal transactions. We know that
there are in Charleston sensitirely honorable
men who are anxious to resist the payment
OF what is known as 'sthe railroad debt" OF
the city, and even these unimpeachably up
right citizens would find their business credit
affected If Charleston seriously endeaVored
to repudiate her obligations. 1t must be
borne in mind, however, that only the force
of what seemed to be an inexorable neces-
sity led any class Of citizens to talk and
write OF reputation. They saw that the in
come OF the city from taxation could not,
for the present, be increased; that holders
OF past due stock were suing the city and OBJ
tanning judgments; that each year brought a
new load OF matured claims and prospective
litigation. They were disheartened and
despairlng. They gave up the fight, and an
nounced that the debt could not be met,
and therefore must, by hook or by crook, be
got rid OF. We hope that the improved for
tunes OF the city will satisfy the doubters
that we cen pay eur way out OF op dificul-
ties. Let us hear no more Of municipal repu-
diation.
The city stock is now taxed two per cent.
upon it's market value, or, in round figures,
one per cent. upon the par value, which tax
reduces the rate OF interest to FIVE per cent.
1t is proposed to give, in exchange for the
past due stock, new bonds bearing six per
cent interest in gold. This is offering a
great inducement to the holders OF the
stock. They obtain security which is
easily negotiable-which bears fixed rate
of interest in coin, and is payable in coin at
maturity. This is given in place OF claim
which cannot, in any other way, be made
effective without tedious law suit. We are
not, therefore, surprised to learn that large
holders OF past due city stock have ex-
pressed their willingness to make the ex-
change at once.
But we may expect to find some holders
Of past-due stock, or stock falling due, who
will not renew their loans by taking new
bonds. What do the City Council intend
to do about these P The Mayor, in his mes
sage, proposes .:'to induce our patriotic citi-
s.zens to subscribe for" the new bonds,
where the holders Of the past due stock re-
fuse to make the exchange. We confess
that this looks like taxing patriotism very
severely, and il it be expected to pay the
recalcitrant holders, dollar for dollar, out Of
the proceeds Of patriotic purchases, this
part OF the Mayors scheme is open to grave
objections.
1t is just as well to look difficulties square,
ly in the face. A six per cent. non-taxable
bond of the City OF Charleston will not sell
at par in opnn market for some time to come.
The citizens who now subscribe for these
bonds, at par, make the city donation Of
twenty or twenty-five cents on every dollar.
Why should they be taxed for the payment
OF debt which is only theirs in common
with every other citizen? If every dollar
they subscribe cancels dollar and a quar-
ter, or dollar aud hall, of the public debt
the citizens may be induced to make the
sacrifice; but it is not right or reasonable to
ask them to take seventy-ive cents for one
dollar in order that Mr.. Shylock may get one
dollar for what is worth seventy or seventy
five cents. There is the further objection
that the past due stockholders will not take
dollar for dollar in bonds If they, by holding
back, can obtain dollar for dollar in money.
To hint at paying of the over due stock at
par is, to our mind, to defeat the whole plan
OF renewal. And yet an adjustment OF the
opposing interests seems to be practicable.
We would say to the stockholder, ''Charles-
''scn has looked down to the bottom OF her