The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1873-10-22

% pays I ehrnestly hope thar itls viii
the scase, but L feel tiny duty to si,g-
sEese tie dang tl%ould 6e best for all par.
tss 10 look the an tfcultles gquarely ii, the face
/ and make q full and fuaf settlement, by con
yefting all THO outstanding issues into a con.
saolidated debt upon which the interest would
s be paid switioht failure. s. In my opinion the
editors would be willing TO accept such nm
Issue tH satiSfacti6n of tiieir claims, provided
Tt0o great "a, loss salIould not be inflicted upon
them S aud Ger taully lin view Of the constitu-
! ttonal obllgntione,, us welt as regards the
hpnorS end good name and the material
Interests of tie Stnte, ,lies General Assembly
len: essch flnat aa ajustmene sllall be made it
! viii no Gonbt DO spppot otss,, st; the good men
sof slls parties, and win be Eacquiesced in by
l;3Es; sS;;si; i;;y3 1 PLAN OF ittsTMEHr.
iHa well estaGi Giislied principle of political
! economY tliat an indy idual having money to
ttnyes will make AN li,I ,Iveslment in TINT class
sof ritiss' which oI6s The best guarantee
81 safe etysseea.tles q " viii not only pay
4 may 6e disposed of, without loss, whenever
change, OF Investment Is dcsired-n other
) S,sords q Marketable security,
ssla Tho value OF II State security depends
largely, upon the fccnA:a:.ce q the purchaser
!, In tile; good faith of tho State, but more
especially upon tho means which the State
4 places I'm the hands Of every holder OF hcr
bonds, to compel the plnclual payment Of
the Interest II accrnes. and tho principal at
maturity. Tie Stale Ia sovereign and cannot
4 be sued; bht when she enters into u contract
Y with aa Vidual, through her agents, and
directs said Sagents TO perform certain duties
/ f1 Ilhlnient of, that coEtraot such individual
q cati! compel the agents of the State 10 execute
sithe s1sill 3fl; State as expressed in such
8 Thus ia ythfee fonrtlss Of the Suites, when
ever tho iiiiakclal Officers are authorized to
scfeato debts sby the Issue of State obligations,
ethetm aelMnerys for the pnnctnal payment OF
\ \ tho interest and principal is provided as
part OF the contract $ and every individual
SWho epta such obligations in exchange for
:fthe itnOiiesb lie advHIcea, receives Il remedy
( sof; Whioi tie, obligations themselves are tile
seviaehce for every neglect of duty in tho
I premises on; tho part Of tho agents of tho
State Such an obligation offers tho best
Investment tllat could epossibly be made, inns
1 inuctt tas the holder thereof las lieu upon
ss sa'lss ; property q Tie citizens OF tho
;s.S How is it Wit, tile bonded debt OF this
i Stnpe gPsiss & 81 I; :, uSl, , "a t.s9@
Our debt may he divided Info three classes.
Thest dist class includes all those bonds, lori
8ginally iissued,) ofsthe five clnsses eni,mcrat-
! ed iH tile; decision OF the Supreme Court upon
thu Morton; Bliss and Company maudan,us
casss amounting 70 SO, ,549,0o0.
S The second class incl,,deH Ill, thoae bonds
and stocks whose only g,.areIntee for the pny.
fment. Of priacipai and interest Ia the good faith
OF the State: This ciass Comprises tie old
bonds and stocks, Except Blie Ridge bonds.)
the bonds for funding past. duo interest md
principal, aud funding bills Bank of the State,
and amounts to $4,5l3, ,503.35.
Tie third class nre tiiose for which M pro.
pisiop las been made for the payment Of
interest or principal by guarantee or; oHe,roise,
Z and includes tho Blue Ridge bonds, 1.-THE NIB.
Sprotiahly an ossraiglit. and the .conyersion
bonds Issued directly by s,,le or hypothccation
This class nggrcgates sc, 9Gb, 900.
~ This concludes the history Of the character
{ Of dur bonds Letius now enquire their pres
\ ents market valtle:: % @
Dur = january and July bonds," old aud
: n6w, wllicli comprise tho entire amount. OK
cePt 81, 89ene Ct -. :" priis and Octobers rare
QuUted ut tifteen cents. The latter, being
portion OF those recently before Tie courts IRE
quoted al twenty cents .s
4 v Now II is evident. from the arguments pre-
viOusly advanced. that tho Suite * unable Ia
ply tho iiiterest upon tho debt as it sty,is,
and that 1t IL to tho interest of every bond
holder TINT tho debt lie reduced in volume 10
a reasonable limit, so tint tho payment Of
interest may be resumed. If, wlltm the hold
ers of1o6r bonds aud stocks ugrce 10 surrender
5 chem for a new and consolidated bond or
stock, tho State agrees as a rnrt Of tho
contract, (of Which such bond or stock
itself would bc5 the evideicc) to provide for
tie payment of tile ah,iualy nccrliing interest
and for tho oxtingl,islimenu nm n,mlly of n por-
tiori OF tho principal until tic whole shall be
thus rcdeened; If, In pursuance Of such agree
nnen, ai,e instructs her agents (whoevcr may
represent her ftom tho date Of tho contract
until the debts entirely cxtinguislied) to levy
: and collect annually taxes sufficient 10 nay
said Interest and retro portion of tile snii
principai-if salio instructs l,er agents MS
atorcsnd to disGtrse the funds 10 collected to
the purposes aforesaid, nnd if enbezzlcnlont or
diversion ot said funds be made felony, pun
iahible ns the constitutions directs, it is evident
that st would be to the best interest of the
bonlliolder to accept willingly such compro-
miBe. For If these remedies bo placed in the
hands Of every bondholtler IL is evident that
whilG Ills new bond would represent upon it,
JGee sum equal only to two-tliirds or one.i,nlf
the face value Of his old bond the market
4 value Of tho new bond would undoubtedly be
y from oIietiiiri to one-h hnlr greater tlIu,l the
present value Of the old.
For instance, IT. 5000 of old bonds worll,
= Is cents on tlie dollar, or $3.50, bs exchanged
for $4,000 In new bonds worth at least 10
cents on, tho dollar, or $500, tho holder will
have made clear gain upon tic actual vnluc
of his bond OF $3.50; and ngain, If $4,000 in
old bonlsI worth 23 cents OH tho dollar, or
$$sae, sa exchanged for So 600 in new bonds
worth jlati least 40 cents on the dolIar, or
$500, tie Holder will have made clear gain
upo,, lic actual value of Ills bond Of 81 0 (;
and In addition thereto, the payment of Tho
interest aid redemption of tho principal of
his new bond will be amply secured by