The Orangeburg news. [volume] (Orangeburg, S.C.) 1867-1875, 1873-10-21
;. JEsy TO The LEGISLATURE OF SOUTH cARoLVNA.

reported outstanding on the 3lst of October,
1872. This difference is accounted for by tie
issue on the 18th Of November, Sl2. OF 5000
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" or 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
structcd government. This latter debt has
been subdivided as follows: Tho first subdi-
vision shows the loating debt.contructcd by
the anic-reconstructed govcrnment, which the
officers OF tho reconstructed government .ound
outstanding when they came into power, anu
which they converted into funded debt by
the issue of bonds and stocks; the second
subdivision represents tho funded debt nc
tualiy orentod by the reconstructed govern.
mcnt, and for which only they are entirely
responsible.
HISTORY or THg BONDED DIET
The stock known ns the three per cents of
lI94, was issued for the purpose of funding
certain debts incurred by the State tn aid i'm
carrying on the revolutionary war At the
close OF the war tho United States govern.
mcnt assumed tho debts Of tho States, in
CURED in carrying on the war The interest
upon this debt was paid by tile national gov.
ernment to the State, aud the State disbursed
the amount 30 received to her creditors.
When the Bank Of, the State was chartered in
1912 the moneys received from the United
States were turned over 10 tho bank and
formed II portion of its first business capital.
Alter few years The United States paid to
Tho State tho entire principal of this debt.
which amount was also turned over 10 the
bank, and ii WAS made the duty OF tho bank
To pay the imtcrcat annually accruing upon
these three per cent. aud 10 redeem the priu.
cipai upon prcscutation: Ii IL. therefore.
assumed that this debt is 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.
Iho Fro Loan stock, amounting TO S303,-
''i3.S9, and Fire Loan bonds, amounting To
S4Sl ,St4 81, are outstanding balances of an
original issue of s., 600, 900 of bonds issued as
II loan to rebuili the burnt district OF the CITY
OF Charleston under act Of June |, 1888. The
bonds are held in Europe and maturcd in
1868. The stock matured in 1870 and il
owned hY citizens Of tho United ataioa.
In my opinion tlese bonds and stocks,
amounting in the aggregate TO S195,2s 90,
which are now past due and payable, and
also the three per cents, making total of
SS24, l24, are not an actual, but a contingent
liability OF tho State.
The act authorizing the issue of tho =" Fire
Loan bonds" provides That =" il shall DO the
duty of the President and Directors of the
Bank of tho State Of South Carolina 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-
nf ~, 81.
redemption of the principal thereof" and,
further "lliat when the profits of tho said
Hank of the State VI Snuth Carolina Rhall have
pad tho interest on certain stocks and re-
deemed said stocks (all Of which, save the
throe per cents, have been redeemed long
slneel for which thoy have heretofore boen
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 final redemption of the principal thereof"
The history OF this loan Is NJ follows: The
100000 of bonds were issued TO the Bank
OF the State. The bank through its agent.
General McDutiie, secured tho services OF
the Barring Broihers Of London, to nego-
tiate them. They succeeded in disposing OF
about s 600, 600; the remsinder was returned
TO tho bank, conyprtod into registered atook,
and sold In tho States Tho proceeds OF the
sale OF these bonds and stocks were deposited
in tile bank as part Of its working capital.
Persons desiring to rebuild the burnt district
OF Charleston obtained n loau for that purpose
from the bank, giving q mortgage upon the
property rs security for the loan. The bank
received tho moneys from Tho sale OF tho
bonds and stocks; 1t received the interest
upon the loans mado TO the builders it re-
eciyed the principal Of the loans at their una
turisy In justice, therefore, to The tax payers
Of the State the assets Of the bank. whicl,
have repeatedly been solemnly pledged and
set apart for the redemption of these bonds
and stocks ought to DO Immediately so ap.
piled.
In the report OF the officers of this institu-
ton to tho Legislature Of ls4l it is emphati-
cally asserted = that the Uhoie OF the means OF
the bank stand as security for this loan"
The president OF the bank in his report to
the Legislature Of date July, 1868, referring
! 70 this subject, very justly observed that il
might with proprety he regarded as n debt Of
tho bank rather than debt Of the State. The
bonds and stocks were sold and the funds
placed under control Of the bauk, which was
charged with tho distribution of tho funds,
and also tho duty Of providing for the pay
'ncnt Of the interest aud principal Of the obli.
cations as they became due"
Tho Legislature, under act of December
2lst, 1868, again pledged and appropriated
the assets of the bank-ftst to tho payment
Of the fire loan bonds in Europe: second TO
the fire loan stocks in America, aud third TO
the bills Of the bank
Tho Legislature, under act of September
10Th, 1868, dsrcgarded this contract with
tho holders OF this loan, and directed
lao nn1n ,,f In al