The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1873-02-01
SCALING THE STATE DEBT.

Another Proposed Solution OF the FL
nancial Muddle A Sinking Fund
Comm issIoner for Charleston.
[FRoM OUR SPECIAL CORRESPONDENT
" COLUMBIA, 8. c., January 80:
The most important measure that has yet
been proposed toward the adjustment OF the
debt of the State was introduced In the House,
| to-day, by Representative Meetze, Conserva.
tive, of Lexington. There have been bills
and resolutions without number, proposing
an Investigation of the debt, which would
occupy all summer and leave the final settle
ment OF the question for the next session OF
| the Legislature; but the bill now introduced
| by Mr. Meetze proposes to dispense with this
| tedious and expensive preliminary by simply
scaling the outstanding bonds at thirty cents
on the dollar, and Issuing In lieu thereof new
bonds, the coupons OF which shall be re-
ceIvable for taxes, aud which, therefore,
| will, 1t is expected, rate at par or very
near il In the stock markets. The process of
scaling is not to be made compulsory on the
holders of outstanding securities, but The Dill
proposes tina, they shall come forward and ex-
change voluntarily their bonds which are
now all but worthless for new class OF secu-
cautions and guarantees as are calculated 10
make them Immediately and permanently val
liable. The proposition appears TO offer
sensible and feasible solution Of this much
| vexed financial problem; but Its adoption by
the Legislature is more than doubtful. The
| memoers of the Legislature, or large pro-
psrlloH of them, appear welded to the Idea
| of aa Investigating commission, aud In the
| face OF ;he numberless propositions looking
| to the creation Of such commission, each of
VIII: :ch has determined clique OF supporters
to advocate Its passage, 1t is believed thai the
chances OF any sensible measure introduced at
| this late day by Conservative member will
be slim. The bill introduced by Mr. Meetze
Is entitled bill 10 provide for the funding
of the public debt Of the State, and its hrst
section is as follows:
Be IL enacted, That the Secretary of State be
and he is hereby authorized and required to
cause to be prepared coupon bonds OF the
State of South Carolina TO the amount OF
SIS, ,OOO, 900, In denominations OF sl0O, $500 and
$1,000, 10 be used as is hereinafter provided,
for the purpose OF funding therein the public
debt Of the State.
The remaining sections OF the bill, which Is
q very long document, contains the following
provisions: The bonds are 10 run twenty
wears, with seven per cent. interest seml-an-
nualIy, for the payment OF which an annual
tax Is to be levied. The bonds are 10 be
sigued by the treasurer and governor, sealed
by the secretary OF State, registered by both
the treasurer and secretary OF State, deposited
in the treasury, and only Issued upon the
order of the financial board The financial
board are authorized to negotiate with the
bona f1de holders OF bonds and stock of the
State, aud II any such holders shall be willing
10 surrender the bonds, &c, al rates not ex-
ceedlng thirty per cent. of the par value Of
their securities and to accept in lieu
thereof the bonds provided for by
| a hoard QuthnriZp1
close the negotiation and direct the State,
treasurer In writing to deliver to The holder OF
the securities the amount OF bonds Issued
under Lhis act to which he shall be entitled.
1t Is made the duty of the treasurer, upon the
surrender TO him of any such bonds or securl-
ties, TO cancel the same, and 10 Tile them away
In separate packages with such endorsements
on the packages as may at any future lime
suffice TO explain the transaction. The comp
troller-general to ascertain each year the
amount of bonds Issued under this act, and TO
direct the county treasurers to levy, IN ad-
dition to oil other taxes, such percentage as
shall be sufficient to pay the Interest coupons
on such bonds as shall fall due during The next
year. The county treasnrers are required 10
receive in payment OF taxes The coupons oil
| the bonds provided tsp in this act. Monthly
reports OF the transactions of the financial
board and the treasurer under this act are TO
| be filed In the Office of the complroller-gene-
raj.
THE CHARLESTON CITY DEBT.
1t is understood that scheme is about to
be proposed 10 the House by Representative
Hurley for eventually disposlng of the city
debt OF Charleston by providing for sinking
| fund commission. to be composed of five COM
mssiOners, two of whom are to be appointed
| by the City Council, two by the Chamber of
Commerce, and one by the Governor. AN an
| nual tax OF hall mill on the dollar is to be
provided for, and the proceeds of this tax,
which are expected to be about $4,000 the
first year. are to be devoted to purchasing Of
| say, s50,000 of the bonds of the city now
i o,,t nj n6inn Theaa hnnda than 10