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


adequate constitutional provision for tho nay.
mcnt OF tho principal when duo, tho uccrng
interest aud the interest IN arrcar; thoreo lore. i"
&c. + ) (
| SUmdcr' {tllis act tho entire debt was fund.
ed, except certain bonds and scrip known
| ns the Macnlistcr aud Stchbns bonds and
scrip, canal u0nds, and other evidences of
Indebtedness of tho Illinois aud Michigan
canal. New internal improvement scrip was
issued for the old debt, cqunl IN nmount and
bearing like interest and payable ut the same
timo rs tho bond or scrip surrendered.
The "MacaliSter and Stcbbins bonds and
scrip" amounted To SGi5, 3i5.i4. They caino
into the possession Of said firm as the agents
ot the Suite The State received. for suid
| amount S26l ,6Gn.93, or nbout % 64-lO0 cents,
whereas they were entitled to receive accord
ing to agreement nbouL 10 cents on the
dollar. Tue firm refused to pay the bulancc.
ana the Legislature i'll February. lS49, in.
sfructed tho Governor ~ compromise tho
nuttcr by Offering to fund tho amount
actually advanced upon the bonds with per
| cent. interest, from tho daio OF the advance To
the time OF funding; nnd Notwithstanding
Those bonds had passed into the hands OF
innocent holders, the State refused to rccor-
nizc any further liability upon them. except to
tho amount ef 26 cents on the dollur
with per cent interest. This arrangement
was acquicsccd in by many of the holder.
and most OF tho bonds luve been funded at
snil rate.
Tho constitutional convention OF lS4s
submitted 10 tho people the following amend.
mcnt. which was rutiiictl l,y largo minority
| Of votes:
There shall lie annually assessed and COL
ectcd, in tho same manner ns other State
revenue may be assessed aud collected, tax
"f two mills upon each dollars worth Of
taxable properly, III addition to all other
taxes, TO be applied as follows to wit: Tho
iuta so created shall br kept separate, and
annually on tho first OF january, be uppor-
toned and paid over pro ,ut.,, upon all sucl,
State Indebtedness other tl,an tho canal and
school Indebtedness, as may for that purpose
tc presented hy the holders of tho same, tn
hc entered us credits upon aud To thut extent
i'll extinguisln,cnt of said Indebtedness"
The first tax under this provision was col
| lected in lSi9-50; the credit of tho State
immediately revived. and III 1882 tho State
entered upon an era "l prosperity uurrcce-
dcntcd III the history of any olhcr State OF tho
| Union.
This feature "f the constitution operated
l'cneiicially To tho tax payers in n manner
entirely unforeseen AS the State grew in
wealth the two mills tax. the collection OF
which was imperative, began to realize ii
| larger sum than tho State could annually apply
to the extinguisllmcnt OF tho debt. rs the
| holders refused TO surrender so valuable II
security until compelled to do so by it's ma
tmrlty. IL became necessary. therefore, in
order TO avoid tic collection OF an amount OF
money under this tax in excess OF wllnt could
be actually applied yearly to the cxti,yusl,.
ment of the debt. to reduce the valuation of
property as low ns possible. The State a,.tli
tor, i'll his report Tor 1869, estimated tile taxa.
hle property of the State To bo assessed mt
twenty-five per cent. or one fourth Of its actual
| value.
| Tho last levy nndcr this provision Of the
| constitution OF 1913 was made in 1870. Tho
moneys now on hand, together with the rev.
cnue from the Illinois Central kailroud. will be
more than sufficient To cancel the entire
| Indebtedness Mt uatmrity, which amounted on
tho "lst day OF December, 1872 tc S2,O6O-
| l50.G3
The foregoing illustrations are sufficient to
| SHOW tho manner III Which several of the
States got in'" debt the means they used to
eXtricate themselves and with what SUCCESS
| The lesson they teach il too pluiu to require
| comment.
| Having looked nj that picture, lot us OK
amino thus:
The State of Minnesota. in 1850, authorized
tho issue oI 81, nuO, 600 of hnmds in mid of cor.
tain railroad enterprises. Tie roads wure not
built, hut The hp'"+ were disposed Of The
State refused to recognize the validity Of tho
deht or provide t"r The payment "f interest or
| principal. They have been practically re-
! pudiatcd iur fourteen years
The bondhollcrs have n,,lo repeated efforts
to elect Il compromises, but each aud every
| effort liiA hccn unsuccessful
The present treasurer however states tint
| he desires the matter to no settled and is en-
4nlrng as t" TIC bust method Of adjustment.
| From the report ni ;lr committee on fin.
a'ice OF the constitutional convention Of 1868,
~ If1y 4
State had 1Uf.nHY cinl,liatcd her deb, iur
thirty years. In reply to the question
'" hat ID The present vnno OF our Slulc
| hont.S The committee reported "Thnt the
bonds oi the State of Arkansas arc not
qnotc, III the market Of any city OF the ciyi.
fi=rl tgoiht This is attributable To the fact
that III Il period of nearly MHty years. tie
State authorities have not provided for the
payment of interest on her boIIdy 4 system of
iiIlanriering knnwn only to thieves and robbers
without conscience prevailed u such IN extent
ta their operations now cost the State The
neat little sum of 50, o4 G0i.IG. Nnt coutcnt
with iinlOvcrishlng the Stale, dcsOlatnp the
country,and causing mourning mt every hearth.
stone, we find these sclf.same men urrayed
III hostility TO the present reconstruction
measures, hoping thereby To hide from tho
public gaze and investigation, the plumber
and lIcts of thirty years
For years the levy OF the State tax was light
tie people MohgM the government was well
and economically managed, by letting the
bonds run Tor years without paying any in
tcrcsi, AMI not seeing any appropriations
for the payment OF interest on those bonds
IN the disbursement Of The public fi,n,ls,
It is net strange that they forgot the idcbl-
ctlnrss oi II prior generations"
II is proper To add that tho State authorities
referred to, who were responsible for that
debt belonged to the Democratic p,rIy