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

nicntpf all5priheiph wbelsduo, tle aces.,ingS
interest aud The iute@st ~ afscar tEhorelgre"
SC, Il ,EA d ~
4 Under llissnct tie. edhrc debt was fnud
Sod, exceptcertin bondsFpud scrip kupwh
as the Macnlister aud Stebbins bouds and
scrip, canal bonds, aud ollIcr evidences of
Indebtedness of tho Illinois aud Michigan
eanal8 New intef1al improvement scrip wns
issued for the old debt, equnllin umoiint aud
bearing like interest and payable at the same
time us the bond or scrip surrendered.
The "Macalster and Stcbbins bonds and
scrip" amoiluted to- $9l3,2l5.44. They catno
into the possession of said firm as the agents
of the State. Tho State rec, we'd fer said
amount $26l ,660.S3, or about % G4-l00 cents,
whereas they were entitled to receive accord
ing TO agreement about 40 cents on the
dollar. Tire firm refused to pay the balance,
and the Legislature i'll February, lS49, in
structed the Governor to compromise the
matter by Offering TO fund the amount
actually advanced upon the bonds with per
cent. interest, from the date Of tho advance TO
the time of funding; and Notwithstanding
those bonds had passed into the hands OF
innocent holders, the State refused to recog-
niZe any further liability upon them except TO
tho amount Of 26 cents on the dollar
with per cent. interest. This arrangement
was acquiesccd i'll by many of the holders
| aud most of the bonds lave been funded mt
said rate.
The constitutional convention Of ls48
submitted to the people the following amend
ment, which was ratified hy n large majority
| of votes:
There shall be annually assessed and col
| lected, in the same manner other State
revenue may be assessed aud collected, n tax
of two mills upon each dollars worth of
| taxable property in addition to all other
taxes, to be applied as follows, to wit The
fund SO created shall he kept separate and
annually on the first Of January, be appor-
| toned and paid ovor pro rata, upon all such
State Indebtedness other than the canal and
| school Indebtedness, as may for that purpose
! DO presented by the holders of the same, to
bc entered as credits upon and to that extent
| in eXtinguishment of said Indebtedness"
| The first TAX under this provision was col
lected in lSI0-50; the credit of the State
Immediately revived, aud in s52 the State
entered upon an era of prosperity unprcce-
dented in the history of any o,her State of the
| Union.
| This feature of the constitution operated
benetcially TO tho Tux payers in manner
! entirely unforeseen. As the State grew in
wealth tho two mills tax, tho collection of
! which was Imperative, began TO realize
larger SUN than the State could annually apply
| To the extinguishment of the debt, as the
| holders refused TO surrender so valuable
| security until compelled TO do so by its ma
turity. 1t became necessary. therefore. in
or'ier to avoid tile collection Of an amount of
money under this tax in excess of what could
be actually applied yearly TO the extinguisl.
/ mcnt of the debt, 10 reduce The valuation of
| property as low as possible The State audi.
tor, in his report for 1869, estimated the taxa.
| bic property OF the State TO bo assessed at
twenty-five per cent. or ouc-iourth OF its actual
value.
Tho last levy under this provision OF the
| constitution of 1919 was made in 1870. The
! moneys now on hand, together with the rev.
en,le from the Illinois Central Railroad. will be
! Innra tho" ','i";s'.. 90 ."""~l tho r'.tito
| Indebtedness at maturity, which amounted on
the 2lst day of December, 1872, To 81, ,O6O,-
| 1903
! The foregoing illustrations are sufficient to
show the nanner in which several of the
| states got into debt the means they used to
| cxtrica,e themselves and with what succcss.
The lesson they teacl is too plain 10 require
comment
! Having looked at That picture, let us OK.
! anime thIs
Tho State of Minnesota, in 1859, authorized
the issue OF So 1000, 900 of bonds in aid of cer-
tain rnllroad enterprises. The roads were not
enilt, hiit the bonds We're disposed Of The
State refused 10 recognize the validity of the
debt or provide for The payment Of interest or
principal. They have been practically re.
pndiated for fourteen years
| The bondholders have made repeated efforts
10 eject compromise but each and every
effort has been unsuccessful.
The present treasurer, however, states that
he desires the matter TO DO settled and is en-.
During as tn the best method OF adjustment
Erom the report OF the committee on fin.
ance of tho constitutional convention of 1868
OF the Stais ot Arkansas, il appears that said
State had trtuI!y repudiatcd her debt foI
thirty years. In reply to the question
''What is tho present valuo Of our State
bonds, the committee reported THAT tile
bonds of the State of Arkansas are not
quoted in the market OF any city of the ciri
lied toOrld This is attributable to the fact
that in a period of nearly Ahy years, the
State authorities have not provided for the
payment of interest on her bonds a system of
tinanciering known only TO thieves aud robbers
without conscience prevailed to such an extent
tliat their operations now cost the State the
neat little sum of SO, | OF, 60l.lG. Not content
with impoyerishing the State, dosolnling the
country,and causing mourning at every hearth.
stone, we find these self-same mon arrayed
in hostility to the present reconstruction
measures, hoping thereby to hide from the
public gaze aud investigation, tho plunder
aud theits of thirty years
For years the levy OF llIe State tax was light,
the people thought the government was well
and economically managed by letting tho
bonds run Tor years without paying any ilI-
terest aud NOT seeing any appropriations
for the paymUnt of interest OH those bonds
in the disbursement of tho public funds,
it is not strange that they forgot the 'indebt-