The Orangeburg news. [volume] (Orangeburg, S.C.) 1867-1875, 1873-10-21

reported outstanding on the 3tss of October.
1872 This difference is accounted for by the
issue on The 18th OF November, 1872, of SseO
funding stock under the Acts OF. September
and December, 1866.
1t will also be seen that have divided tho
debt into two historical periods, viz: ANTE.
Reconstruction Funded Debt" OF The amount
OF bonds and stocks outstanding when tho
reconstruction government assumed control,
and "Post-Reconstruction Funded Debt" or
the amount OF bonds aud stocks which bear
the signatures OF tho officers Of Tho recon-
structed government This latter debt has
been subdividcd as follows: The first subdi-
vision shows the floating debt contracted by
the ante-reconsructed government. which the
officers OF tho reconstructed government found
outstanding when they came into power, and
which they converted into funded debt by
the issue of bonds and stocke; the second
subdivision represents the funded debt nc.
tually creatod by tho reconstructed govorn.
ment, and for which only they are entirely
responsible.
HISTORY OF THg BONDED DgHT
The stock known rs the three per cents of
1894, was issued for the purpose of funding
ccrtan debts incurred by the State TO aid in
carrying on the revolutionary war. At tho
close OF the war tho United States govern.
mcnt assumed the debts of The States, in.
ourred in carrying on the war. Tho interest
upon this debt was paid by tile national gov.
ernmeht to the State, aud the State disbursed
the amount 30 received to her creditors.
When the Bank ofthe State Was chartered in
1912 the moneys received from tile United
States were turned over TO tho bank and
iorincd II portion OF its first business capital
After few gears The United States paid TO
tho State the entire principal of this debt,
which smount was also turned oyer TO the
bank, and 1t WAS made the duty OF tho bank
to pay the intercSt annually accruinE upon
these three per cents, and 10 redeem tho prin.
cipal upon presentation: IL IL. therefore,
assumed that this debt is n prior lien upon the
assets Of the bank This stock Is held almost
exclusively by citizens of this State, having
been In the possession OF single families from
generation TO generation from 1894 to the
present time
The Fire Loan stock, amounting 10 S303,-
I43.S9, and Fire Loan bonds, amounting to
S4Sl ,9443lI are outstanding balances of an
original issue Of $4,000, 900 of bonds issued as
a loan to rebuild the burnt district of the city
OF Charleston under act OF June l, 1883 The
bonds are held in Europe and naitircd in
1868. The stock matured in 1870 and IL
| owned hy citizens OF tho United atateo-
In my opinion these bonds and stocks,
amounting In the aggregate TO $1s5, 2Ss20,
also tho three per cents, making o total of
Ss24, "a, are not on actual, but contingent,
liability OF tho State.
The act authorizing the issue Of tho " Fire
Loan bonds" provides that :" il shall be the
duty of the President and Directors of the
Bank of the State Of South Curolina TO make
proper provision for the puactual payment OF
the interest of such loan Us may be effected
upon the credit Of the State, under the provis.
ions OF this act, aud also for the ultimate
redemption Of the principal thoreof;" and,
further. Mat when the profits Of the said
Bank Of the alate VI Snuth Carolina Rhall have
paid the interest on Certain stocks end re.
deemed stid stocks (al of which, save the
throe per cents, have been redeemed long
sinoel, for which they havo heretofore been
pledged and sot apart, the said profits shall
also DO considered solemnly got apart for the
payment of the interest or the said loan and
the tinal redemption of the principal thereof"
The hisioryo or this loan Is AZ follows: The
| 81, ,OOo, 600 OF bonds were Issued TO the Bank
OF the State. The bank through It's agent
| General McDaffie, secured tho services OF
the Barring Broihors, of London, to nego-
tiate them. They succeeded in disposing of
| about : 600, 900; the rempinder wes returned
to tho hank, converted into registored Stock'
and sold In tho States, Tho proceeds of the
| sale OF these bonds and s,ocka wers deposited
! in tile bank as a part OF its working capital
| Persons desiring TO rebuild tho burnt district
OF Charleston obtained loau for that pur pose
from the bank, giving q mortgage upon the
property rs security for the loan. The bank
received the moneys from the sale Of tho
bonds and stocks; 1t received the interest
upon the loans mado 10 the builders; il re-
eeyed the principal Of the loans at their ma
turity In Justice, therefore, to the tax payers
Of the State lle assets Of tho bank, which
have repeatedly been solemnly pledged and
set apart for the redemption of these bonds
and stocks, ought to DO Immediately so up.
| piled.
In the report OF til, officers of this institu.
tion to the legislature OF ls4l 1t is emphati-
| cally asserted that the uhoie OF tho means of
! tile bank stand as security for this loanr
! The president Of tho bank In his report to
! the Legislature Of date July, 1868, referring
/ 70 this subject, very justly observed that il
might with propriety DO regarded US a debt Of
/ the bank rather than = debt Of tho State. The
| bonds and stocks were cold and the funds
! placed under control of the bank, whicl, was
| charged with tho distribution of the funds,
and also the duty Of providing for the pay.
mcnt of ;lIe interest and principal Of the obi.
| cations as they became due"
Tho Legislature, under act OF December
2lst, 1865, again pledged and appropriated
| the assets of the bank--irst TO tho payment
| of tho fire loan bonds in Europe: second 10
| the fire loan stocks in America, and third 10
the bills Of The bank.
| Tho Legislature, under act of September
! 10th, 1865, disregarded this contract with
the holders OF this loan, aud directed
/ the sale of the assets under the sitec.