Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1872-08-15

our correspondent has paid taxes it has beer
in violation of law, thus expounded by tht
highest tribunal of the country. We can as
sure him that he has won his wager with hil
County Cincinnati Enquirer. : ii
THE INTEREST on THE DEBT.
TAXPAYERS TO BLEED FOR THE BENEFIT OF
.a,... ~ BoNDHoLDERs. ~:
The Columbia Union prints the following
important official letter from Comptroller
General Neagle to Governor Scott, regarding
the status of the South Carolina bonds. The
letter, as the Union innocently observes twill
doubtless have its weight in commercial cir
cles:" '-.
| OFFICE OF CoMPTRoLLER-GENERAL,
| Columbia, s. c., August 3, 1872.
To His Ercellency, Robert K. Scott, Governor
DEAR SIR-Within the past few months
have received large number of letters from
persons holding State of South Carolina bonds,
anxiousy inquiring when the interest is to
be paid, or if there is any danger of any part
of the debt being repudiated; and more es-
peClaIy WudG OOeS GllC pIcoCuG
intend doing with the new bonds?
I, therefore, address this communication to
you in which I purpose to embody my views
on the subject of inquiry in such a manner as
to furnish an answer to these letters, as far as
I am competent to answer them ); but under
existing laws you are the only one in this
State who can give forcible answer to in
quiries on the subject of its finances, as all laws
passed since you were made Governor have
withdrawn the duties of the comptroller from
that department, and made the auditor of
State the officer whose duty it is to execute
the laws; who also is your appointee, and
whom you can remove at will.
This being the case, feel certain that lam
correct in 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? The first duty of
the executive department, then, is to execute
the laws therefore, as the General Assembly
ofSouth Carolina did in its legal capacity levy
tax sufficient to pay the interest on the
bonded debt Of the State in every act author
izing the issue of said bonds or stocks, in strict
conformity with section 6, articls 8 (page 21)
of the constitution, where the following occurs
as condition of every act authorizing the
creation ola debt: "And every such law shall
levy tax annually, sufficient to pay the an
nual interest of such debt"
The first act passed under your administra.
tion authorizing the isue Of bonds, is an act
entitled can act to authorize loan to re-
deem the obligations known as the bills re-
ceivable of the State of South Carolina" Sec
tion 6 of said act, (No. 49, page II, acts of
special session, 1868, says that an 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 hereinbefore au-
thorized, at the times when such interest shall
fall due. Now, sir, this language is emphatic,
and as far as the legislative department Of
the government is concerned, they have dis
charged their duty and fulfilled the require
ments Of the constitution. This act also au-
thorized you, as Governor of the State, to ne
gotiate the said loan (sec. ~ Though the
financial agent and the treasurer's report of
the 31st October, 1871, show that these bonds
we're issued and sold by the financial agent Of
the State in accordance with law, and yet the
auditor ofState fails to enforce this part of the
act which is imperative, the constitution and
act both declaring that it shall be done; al
though when these bonds were being offered
on the market these clauses in the act and
the constitution were both paraded as the
strongest evidence of the value of the security.
IF you will continue the investigation you
will find the next statute, (No. 14,) page Is,
authorizes you to raise through the financial
agent one million of dollars Of money in cou-
pom bonds, and not only authorizes the levy of
sufficient tax to ..y tie interest on the
bonds, but declares that it shall be levied in
very strong terms. Section 6 provides "that
an 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 here
inbefore authorized at the times when such in
terest shall fall due. Almost every other pro-
vision of this act gives the executive officer
discretionary powers except that just quo
ted, which is mandatory, and if this loan has
been issued, then the holders thereof have
clear title to their interest. But instead of
their getting it, we see every other provision of
this act executed except the one which the act
itself declares shall be enforced. think
have gone far enough into details to establish
the fact that it is clearly the duty of the audi
tor ofState to levy and collect. sufficient tax
to pay the interest on the public debt but for
your own satisfaction, will refer you to page
1872, act No. 102, section 6; page 275, act No.
1856, section 5, acts 1S6S-69; and page 1856,
act No. 278, section /, acts 1S69-70, where
other acts of Assembly authorizing the issue
of bonds make the same provision as quoted
in the acts cited above; and I believe that
every one of the said acts received your official
approval, and, as matter of fact, every bond
issued in accordance Herewith received your
official signature.
The above statements being true while the
auditor of the State fails to levy and collect
this tax, you are certainly standing in the way
of parties obtaining their vested rights, un-
less you demand the execution of the law, and
thus remove all doubts as to the legality of
the acts themselves and the bonds used in
accordance Herewith. But if there had re-
mained any doubts as to the intention of the
General Assembly on the subject of paying
the interest on the public debt, all those doubts
could be at once removed by reference to the
acts of 1S71-'72, page 27S, No. 215, which
not only e1acts the constitutional provision in
reference to the new bonds issued since its
adoption, but goes still further, and declares
all bonds and stocks, old and new, enumera-
ted in the State treasurer's report of October
31st, 1871, valid and just obligations against
the State and section of this act says "The
section of each of the acts under which said
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