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


reported outstanding on tho 3lst Of October
1872. This difference Is accounted for by tile
issue on the 18th OF November, 1872, Of $500
funding stock under tho Acts Of September
and December, 1866.
1t will also bo seen that have divided tho
doht into two historical poriods, viz: Ante
Reconstruction Funded Debit" or the amount
of bonds md stocks. outstanding whom the
rcc0nstructHn government assumed CONTROL
and "Post-Rcconstruction Funded Debt" or
! the amount OF bonds md stocks which boar
the signatures OF tl:a officers Of tho recon-
strs,cted govornrnent. This latter debt has
been subdvidcd as followsa, The first anbdi-
vision shows the floating debt contracted by
tho ante-reconstructed government. which tho
officers OF the reconstructed goyornrnont found
outstanding when they camo into power, an6
which they converted into funded debt by
the isse OF bonds and stocks; the second
subdivision represents tho funded debt ac-
tualY crentcd by the reconstructed govern
ment, and for which only they arc entirely
responsible.
HISTORY Oh TIE RoxDRD DEBT
The stock known HI tho three per cents Of
1894, was issued for the purpose Of funding
certan debts incurred by the State 10 aid in
| carrying OH the revolutionary war. At tho
| close OF the war tho Uuited States govern
mrnt assumed the debts of tho States. in.
| CURED in carrying on the war; Tho interest
upon this debt was paid by the national gov.
ernncnt to the State, and the State disbursod
| tho amount 80 received to her creditors
When the Bank Of tie State was chartered in
| lSl2 the moneys received from tho United
States were turned over 10 tho bank and
formed portion or its first business capital
After few yeurn tho United Statos paid to
the State tho entire principal of this debt
which amount WAS also turned over to the
bank aud it WIS madc the duty Of tho bank
to pay the interest annually accruing upon
these three per cents, and To redeem tile prn-
cpal upon presentation 1t is. therefore,
assumed TINT this dobt is n prior lien upon the
assets Of the bunk. T;,is stock is held almost
exclusively by citizens Of tlis State, having
been III tho possession OF single families from
generation to generation from 1894 to the
prekemL tin,o.
Tho Fire Loan stock, amounting 10 SaOs-
;i4389. aud Fire Loan bonds amounting TO
$4Sl ,9i43l, arc outstanding balances Of MI
original issue OF $2,00O.000 of bonds issued as
n loan to rebuild tho burnt district OF tho city
| of Chnrleston under act Of June |, lS38 Tile
bonds are held in Europe aud n,aturud in
1863 Tho stock matuiod in 1870 snd is
owned by ciuzeus OF the United Sta,os
=. In my opinion tl,ose bonds and stocks,
amounting iu the aggregate to S7S5. .2Sa.20,
| which are now Ilast due and payable, and
also the three per cents muklnH total of
|
liability oil tho State.
Tho act authorizing tile Issue of tho "Firc
Loan bonds :" provides that "it shall be tho
duty OF the President and Directors Of the
Bank OF the State OF South Carolina to make
proper provision for the punclunl payment OF
tie interest Of. such loan az muy 10 effected
upon tile credit oil the State, under the provis-
ions OF this act, aud also tor tho ullimute
redemption of tile principal thereof" and,
| hnn <,r n,
Bunk of tho State ol South Carolina shul lInvr
paid the interest OH certain stocks and re-.
deemed n,id stocks (ul Of which, Snve the
| three per cents. have been redeemed long
sincc), for which tlley have heretofore been
pledged and vet apart tho said proits shall
also bo considered solemnly rot npart for tho
payment Of the interest o: tho said loan md
the nnal redemption of the principal thereof"
| The history Of tlis loan is HI follows: The
$2,o000Qo Of bonds were issued TO the Bank
OF tho State. Tho bunk through its agent,
| General 4cDuiiie, secured tho xervicen Of
tho HurinY Brolhers, Of I6.;don, to nogo.
tlaio lllsm. Tl,0y vncoeedod in diHposing OF
J ntmnt ~ 900, 900: the remainder ~as returned
To tho bank, converted into registered stock,
and sold in the States Tho proceeds or the
sale OF ,heae bonds and stocks were deposited
IN the bank AZ part Of its working capital
Persons desiring 10 rebuild tho burnt district
OF Charleston obtained loau for that purpose
from the hank, giving a mortgage upon tho
property as security for tho loan. Tho bank
received tho moneys from the sale of tile
bonds and stocks; it received the interest
| upon the loans innde TO tho builders; it re.
ecivcd the principal Of tho loans at their ma.
turty In justice, therefore, to tho tax payers
Of tho State the assets Of tho bank. whcl,
havo repeatedly been solemnly pledged and
set apart for tho redemption Of these bonds
and stocks, ought to bo Immediately 50 np-
| piled.
| IN tho report OF the officers Of this nstitu.
tion to the Legislature Of l8Al it is enphnti.
cally asserted e that tho uhole Of tho moans of
tho bank stand as security for thi. lonn."
| Tic president Of tho bank in his report to
:lio Legislature OF tato July, 1868, referring
! to this subject, very justly observed "thnt il
might with propriety be regarded as a deb, Of
the bank rather tllau 4 debt Of the State Tho
| bonds and stocks wcro sold nni tic fund.
placed under control of the bank, which was
charged with tho distribution Of tho funds,
and also tho duty OF providing for the pny-
mont Of tho interest and principal OF tho obi.
CATIONS AZ they became due"
tho Legislature, under act Of December
2ist, 1865 again pledged and appropriated
tho nsscl1 of tho ank-nrst to Tho payment
Of the fire loan bonds in Europe SECOND to
tho fire loan stocks in America, and third to
the bills of tho bank.
Tho Legislature, under act of September
9th, 1868, disrognrdod this contract with
tho holders OF this loan, and directed
the sale Of tho assets, under the direc- |
ton Of the Governor, the proceeds TO be sub.
jcct to the ordcr Of lho Legislature; and also
authorized tho funding Of the bills issued
prior To Dccan,her 20, 1860. The sale Of tho |
assets wss onjoinr,i by tho courts. aud the
claims OF these sevcral classes of creditors
are sill the subject Of litigation.
The whole history of this lonn, az read in