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

dilion hut not before they had hcCA Durdoncu
with.a debt of.$li 900, 900, besides theiu-
tcr:St which hHd been HccumuIntiug Tor six,
years. The State then made conpromisc
with her boudhUlders, in which she agreed to
transfer her title to tho Wabash and Erie
Canal in liquidation of onc-halt of her debt
and to issue certificates of stock, bearing five
per cent. interest after 1854, for the other halt
The Legislature soiemnly pledged tlie fniths
and funds Of tho State for the punctual pay
mcnt OF the interest and principal; and
afterwards solemuly set apart all the revenues
Of the State derived from taxation for general
State purposes, after the dcfrayng of the
ordinary expenses OF the government 10 the
payment of the interest and liquidation of
the principal Of the debt This compromise
and contract was afterwards coulirmcd by the
people at the ratification of the New Con-
stitution of 1850"
Even the old creditors of the State who
were not directly interested in these schemes
| and held none Of these questionable bonds
came forward uiiiinyiy TO relieve the State of
the foul stain OF reputation, ana made
sacritices OF their pccniary Interests which
made the compromise possible.
Aud now, by the faithful performance of
the terms OF this compromise, her credit has
been completely restored, and stands upon
perfectly secure basis; and without opprcs-
sivo taxation her debt is being very rapidly
| eXiuguishcd
The history Of tlc finances of the State ~
! MiciiyGH furnishes another illustration of
compromise effected between State and her
| creditors. Tho compromise made by the
State OF Indiana was madc at the suggestion
OF the hondholders and with their hearty
assent and cooperation; that of the State of
| Michigan was made without agreement,
which the bondhoG5r was obliged TO accept
or get nothing. Her financial troubles began
| i'm tn
build railroads and canals ragged mt that time
as epidemic throughout the entire West.
Like prairie fire or swarm of ;io dreaded
caterpillar passing over Il cotton plantation III
the South, its appearance was us sudden, its
march as rapid, its desuation rs complete.
In 1897 and lS3S Michigan issued 81, 200,-
600 TO build canals and railroads. The Gov
| ernor made arrangements with n banking
company To net as t!!.. agents OF the State in
| the negotiation OF the bonds The company
negotiated portion of them and made the
! proper returns 10 the state; the moneys were
| payable i'll insaments. The State was eutl
| tied 10 receive about 2,S51, ,O39.76 on the
remainder ol bonds in hands Of tho company
! when suddenly it collapsed, aud it was dis
covered TINT the whole amount Of bonds had
been hypolheCated or sold. had passed into
! the hands OF innocent parties, and were ont
standing rs charge against the State The
Governor publicly called upon tho holders OF
| the bonds either TO pay the balance due upon
! them by the company ar surrender them and
| have the amount they paid for them refunded.
| The Legislature OF lS4l confirmed the action
OF the Governor and again demanded the sur
| render "i the bonds upon l!!e terms before
mentioned. \ portion of the entire sum OF
S5,200,000, amounting to Si,3S7.000 were
not included in the demand Tor the reason
previously given.
The bundhOldcrs refused to accept tho com.
promise and no further action was taken until
| 1916. At that time (Marc;i, lS46.) the State
sold her railroads and received as part pay
s%ms 81 Il hffS tS tG atGG'a q as e"s ar scS 600 'ia n
bonds, and the interest at the rate OF six per
cent on $3G2.t3 for each 81 900 of said bonds
In 1898, the Legislature directed the lrea-
surcr 10 notify the holders of said bonds. by
public advertisement, 10 surrender their bonds
within six months rs after that lime no in
ter st would be paid. The six months expired
August, 1883, and from that time tie bonds
lave been adjusted at the rate of S57S. 81 for
oach 81, 600. There are still outstanding
$4,000 adjustable nj So ,2427S
Under the operation of wise legislation
ample provision having been made for the
payment OF uic interest and eXlinguishment
oi the principal, by solemuly setting apart
portion OF the annual revenue aud tile lrvying
OF n specific annual tax for that purpose se-the
credit OF tie State has been completely re.
| stored; tho resources OF the Stte are largo
and annually increasing, while the debt is
small, taxation light, and no occasion to make
il oppressive. The auditor-gcncral in his re-
port "i September, 1871, states that the sink.
lng fund was large enough To furnish The
means Of redceming all the bonds outstanding
| before their maturity, il the holders could bc
! induced to surrender them, and The Governor
therefore, recommends tie repeal of tho act
! levylng Il specific tax Tor tnat purpose
The history o: the finances of the STATE OF
! ILLINOIS il worthy Of especial notice in this
connection, AS III several respects she passed
| through similar experience 10 our own. The
| success which rewarded that band of patriots
! who comblned To restore the credit of the
! State, and To lift the cloud of suspicion Of ro.
pidia,ion which rested heavily upon her,
might well furnish lesson TO the citizens OF
| this State who have her best interest at heart
The financial troubles of Illinois occurred
| prior to the adoption Of tho constitution of
1913. SIC had neglected for long time to
pay the interest upon her debt until the prin-
cipal and lis interest accommodations amounted
to the enormous sum $50 considered AT that
tme,) Of SlS,000,0 900. Party leaders i'm
penched the validity Of the debt, aud recon.
mcndcd that the people refuse To provide for
lts payment, while the tax payers relieved
from taxation for one purpose, vigorously OPP
posed paying any taxes at all The distress
ing condition OF the linauces is fifty portrayed
IN the report OF the auditor Of the State of
| December, 1870. Said lie : "To those who
can rcmembcr the condition OF the State OF
limos III lsf7, the treasury empty, the Gov.
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