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

mcntpt ith0prilCld wNetQ Que, Ile ueSfillnS
interest aud The t.tcNst III arfcari thorelore,
sc. a b
II Under this nct Tie oIiuro debt was fnuG.
cd, excepGccrtun bonds und scrip knpwh
as the Macalistor aud Stebbns bouds and
scrip, canal bonds aud other evidences of
Indebtedness of tho Illinois and Michigan
canal New in terual Improvement scrip was
issued for tho old debt, equal III amount aud
bearing like interest and payable ut the same
time as the bond or scrip surrendered.
The "Macalstcr and Stcbbns bonds and
scrip" amounted 10 $9l3,2l5.44. They camo
into the possession OF said firm as the agents
of the State. Tho State received for said
amount $40 ,bGo.S3, or about % G4-l00 ceuts,
whereas they were entitled To receive accord
lug TO agreement about 40 cents on the
dollar. Tie firm refused to pay the balance,
and the Legislature i'll February, 1919, in
structcd the Governor 10 compromise tho
mattrr by Offering to furd the amount
actually advanced upon the bonds with per
cent. interest, from the date OF tho advance TO
the time OF fuuding; and Notwithstanding
,hosc bonds had passed into the hands of
innocent holders, the State refused TO rccog-
niZe any further liability uvom them. except to
tho amount Of 2G cents on the dollar
with per cent. interest. This arrangement
was acquicsccd in 10y many oi the holders
and most of the bonds lave been funded at
said rate.
Tho constitutional convention Of lS4S
submitted o the people the following amend.
ment. which was ratified iy large majority
OF votes:
There shall he annually assessed and col
lrcted, III the same manner M other state
revenue may be assessed and collected, n tax
of two mills upon each dollars worth Of
taxable property, in addition TO all other
taxes. 10 be applied as follows, to wit The
fund created sInll be kept separate, and
annually on the first of January, be appor-
| toned and paid over pro iGtu, upon all such
state Indebtedness other than til" canal and
| sShuol Indebtedness, as may for that purpose
bc presented hy the holders of the same, tn
bc cntc'"d as credits upon and to that extent
| in cXtiuguishEcnt of said Indebtedness"
The first TAX under this provision was col
lcctcd in lSl9-5O the credit of the State
! immediately revived, and in 1852 the State
entered upon an Of prosperity unprccc.
! Gcnted III the history OF any olhcr Stale of the
! Union.
This feature Of the constitution operated
bencicially to tho tax payers in a manner
entirely unforeseen. As the State grew in
! wealth the two mills tax, tlc collection Of
| which was imperative, began To realize
| larger sum than the State could annually apply
| To the extimgushmeat OF the debt as the
holders refused 20 surrender so valuable u
/ security until compelled to do 30 by its ma.
/ turity. 1t became necessary. therefore. in
! or'lcr To avoid the collection OF an amount OF
money under this tax in excess of what could
be actually applied yearly to the extinguish.
mcnt of the debt. 10 reduce the valuation of
| property as low as possible. The State audi
tor i'll his report tor SEQ, estimated the taxa.
| bic property of the State To he assessed at
/ twenty-five percent. or one fourth OF it's actual
! value.
The last levy under this provision of the
| constitution al 1913 was mado in 1870. The
moneys HOW on hand, together with the rev
| enuc from the Illinois Central Railroad, will bc
! moro tho" "'.i-;s.., ....,..Si ,l,v -mt;r q
| Indebtedness al maturity, which amounted on
! the @lst day Of December 1872, to 81 ,O6O,-
/ l50.G3.
/ The foregoing Illustrations are sufficient to
/ show tho manner in which several of tile
/ States got in.o debt. the means they used to
| cNtrIclie themselves, ard with what sncccss.
! The lcssOu ihcy teach is too plain 10 require
/ comment.
/ Having looked at That picture let us OK
! anime tlIIS
The state of MINNESOTA in 1889 authorized
the issue OF 81, 600, 600 Of bonds in aid of cor.
tain railroad enterprises The roads were not
! bnilt, but the bonds were disposed OF The
State refused 10 recognize the validity OF tho
debt or provide Tor the payment Of interest or
| principal They have been practically re-
| pndiatcd for fourteen years
| The bondhOldrrS have madc repeat ed efforts
/ To elect II compromise, hut each and every
! effort has been unsuccessful.
| The present treasurer however, states that
! he desires the matter To bc settled and is en-
! curing rs 1" the best method OF adjustment
| From the report oil the committee on fin.
ance O! the constitutional convention of 1868.
OF the .Stnts ~ A,kdqsaS, il appears that said
! state ad t,TtG uy rcpudiated her debt Tor
thirty years. In reply to the question
What Is tho present valu0 of our State
! BOMBS, the committee reported THAT the
| bonds OF tho State OF Arkuns,s are not
quoted III the market OF any city OF the ciCi-
! h:ed ,oOrid This is attributable to the fact
! that In Il period Of neG,Iy MUty gears, the
State authorities have not provided for the
payment of interest on her bonds. a system of
inanccring kn"wnonly To thieves aud robbers
without conscience prevailed To such an extent
! that their operations now cost the State the
neat little sum OF So, Oh, G0I.lG. Not content
with impoverishing tho Stale dosolniing the
country, and causing mourning ut every hearth.
stone, we lind these sci-same mon arrayed
measures, hoping thereby to hide from tho
| public gaze and investigation, tho plunder
and thelts Of thirty years
For years the levy OF tie State tax was light
the people thought the government was well
and economically managed, 10y letting the
bonds run for years without paying any in
terest, aud not seeing any appropriations
ior the payment of interest Oh those bonds
in the disbursement Of tho public funds
1t il not strange that they forgot the indcbt-