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

reported outstanding on the 3Ist of October,
1872. This difference is accounted for by Tie
issue on the 18th of November, ] S12, of $500
funding stock under the Acts of September
and December, 1866.
1t will also be seen that have divided the
debt into two historical periods, viz: "Ante.
Reconstruction Funded Debt" or the amount
OF bonds aud stocks outstanding when tho
reconstruction government assumed control
ana "PostReconstruction Funded Debt" or
the amount OF bonds aud stocks which bear
the signatures OF tho officers of tho recon.
structcd government This latter debt has
been subdvidcd az follows: The first subd-
vision shows ;he floating debt contracted by
the antc-rcconstructed government, which the
officers OF tho reconstructed government !ound
outstanding when they came into poweP ami
which they converted iuto funded debt BY
the issue Of bonds and stocks the second
subdivision represents the funded deb. nc.
tually crented by the reconstructed govorn.
mcnt, and for which only they are entirely
responsible.
HISTORY or TIIg BoNDHD DREr
The stock known as the three per cents OF
1894, was issued for the purpose of funding
certain debts incurred by tho State TO aid in
carrying on the revolutionary war. At the
close OF the war tho United States govern.
mcnt assumed tho debts OF the Statcs, in.
CURED in carrying on the war. The interest
upon this debt was paid by tile national gov.
ernment to the State, and the Stale dsbursed
the amount 30 received to her creditors
When the Bank of the State WAS chartered in
1912 the moneys received from the United
States were turned over 10 tho bank and
formed IL portion oi its first business capital
Atter few years the United States paid to
tho State the entire principal Of this debt,
which amount was also turned over 10 the
bank, aud 1t WAS msde the duty Of the bank
10 pay The incrcat annually accruns upon
these three per cents and 10 redeem the prin.
cpul upon presentation. Ii is therefore
assumed that this debt is n prior lien upon the
assets of tho bank. This stock is held almost
exclusively by citizens of this State having
been in the possession OF single families from
generation 10 generation from 1894 to the
present time.
Tho Fire Loan stock, amounting TO S3O3,.
''i3.S?, and FIRE Loan bonds, amounting to
$4sl.9t43l, are outstanding balances of au
original issue of $4,000, 900 OF bonds issued as
loan to rebuili the burnt district of the city
oi Charleston under act Of June |, S3S. The
bonds are hold i'll Europe and nattrcd in
1868. The stock matured in 1870 and ix
owned hY citizens OF tho United Gtetoa.
In my opinion thaIe bonds and stocks,
amounting in the aggregate TO S7s5,2 500,
which arc now past due and payable, aud
also The three per cents, making q total of
SS24, ia, are not an actual, but u contingent,
liability of tho State.
The act authorizing the issue of the " Fire
Loan bonds" provides that = it shall DO the
duty of the President aud Directors of the
Bank of tho State Of South Carolina TO make
proper provision for tho puactual payment OF
the interest of such loan US may bc effected
upon tho credit Of the State, under the provis-
ions OF this act, aud also for the ultimate
redemption OF the principal thereof" and,
further "llial when iilc profits Of tho said
bank nt tho State Vi Snulh Carolina Rhall have
paid tho Interest on cartain stocks aud re-
deemed said stocks (all of which, save the
throe per cents have been redeemed Ioug
Sncel for which thoy hayo heretofore boen
pledged and sol apart, the said profits slnl
also DO considered solomnly got apart for the
payment OF the interest or the said loan and
the final redemption of the principal thereof"
The history OF this loan is ns follows The
$2,OOO,O0O of bonds wero issued TO tho Bank
OF the State. The bank through its agent
General NcDufiie, secured tho services oi
the Barring Broihors, Of London, to nego-
tiate them They succeeded in dsposing OF
about s 900, 900; the remaindor wps returned
to tho bank, converted into Registered atook,
and sold In tho States. Tho proceeds OF the
sale OF those bonds and stocks were deposited
in the bank as part OF its working capital
Persons desiring to rebuild tho burnt district
OF Charleston obtained loau for that purpose
from the bank, giving n mortgage upon the
property rs security for tho loan. The bank
received the moneys from Tho sale OF tho
bonds and stocks; il received the interest
upon the loans made 10 tho builders; it re-
eeiyed tho principal Of the loans at their ina.
turity In Justice, therefore, to the tax payers
Of the State the assets OF tho bank. which,
have repeatedly been sclcmuly pledged and
set apart for tho redemption of these bonds
and stocks ought to DO Immediately so up.
piled.
In the report OF the officers of this institu.
ton to the Legislature of ls4l it is emphat.
cnlly asserted Il that the uh0ie OF the means of
the bank stand az security for this loan"
The president OF the bunk in his report to
the Legislature Of date July, $685. referring
20 this subject, very justly observed that il
might with propriety be regarded as a debt of
the bank rather than \ debt of the State. Tho
bonds and stocks wore sold and the funds
placed under control OF the bank which was
charged with tho distribution of tho funds,
aud also tho duty Of providing for the pay.
ment Of the interest and principal OF the obi
cations as they became due
Tho Legislature, uudor act Of December
2lst, 1865, again pledged and appropriated
the assets OF the bank-first TO tho payment
of tho fire loan bonds in Europe; second to
the fire loan stocks in America, and third to
the bills Of the bank.
Tho Legislature, under act of September
10Th, 1868, dsrcgnrded this contract with
tho holders OF this loan, aud directed
the sale of the assets, under the direc-
o al A Al