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

~
S5l l,627.3o, or $500 moro thnn tho amount
| reported outstanding on tho 3lst OF October
| 1872. This difforence is accounted for by tho
issue on the Sth OF November, 1872, Of $500
| funding stock under tho Acts Of September
| and December, 1865.
1t will also bo seen that l hnv0 divided tho
debt into two historical perinds viz: Ante
Reconstruction Funded Debt" or the amount
| OF bonds and stocks outstanding when the
reconstruction government assumed control,
and Post-Rcconstruction Funded Debt" or
| the amount OF bonds aud stocks which bear
| the signatures OF tho officers of tho recon-
| structc'l govcrnment. This latter debt has
been snhdividcd as follows, The first nubd-
| vlsion shows the tioatmE debt contracted by
thq anle-rcconstructcd government which the
ohcers Of the reconstructed government found
outstanding When they came into power und
wlcl, they converted into a funded debt hy
| the issue Of bonds and stocks; tho second
subdivision represents tho funded debt nc
tnnlly created by tho reconstructed govern
mcnt, and for which only they nre entirely
responsible.
HISTORY OF THE noxDgD DEBT
| The stock known HI tho tllreo per cents of
| 1894, was issued for the purpose of funding
ccrtnin debts incurred by the State 10 aid il,
carrying on the revolutionary wur. At tho
close OF the war tho United 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.
ernnient to the State, aud the State disbursed
tho amount so received to her creditors
When tho Bank of tho State WAS chartered in
lSl2 the moneys received from tho United
States were turned over To tho bank and
formed portion OF it's first business capital
| Alter few yeurs tho United States paid to
| tho State tho entire principal uf this debt,
which amount WAS also turned over to the
bank, mud it WAS mnde the duty OF tho bank
to pay the interest annually accrunE upon
these three per cents and To redeem the prin-
| cipal upnn presentation. 1t il. therefore,
assumed Tint this debt is prior lien upon the
assets of the bunk. Ts stock is held almost
exclusively by citiZena Of this State having
been i'll tho possession Of single families iron,
generation u generation from 1894 to tile
prescllt timo.
Tho Firo Loan stock, amounting 10 S3O3,-
a43.S!l and Firo Loan bonds, amounting To
$4Sl.9i4 81, arc outstanding bulu,lces of nh
original issuc Of S., 1000. O0U of bonds Issued as
IA loan to rebuild tho burnt district OF the CITY
ol Charleston utidsr act OF June |, 1888. The
bonds are held i'll Europe nnd n,al,rud in
1868. Tho stock tnaturod in 1870 and is
owned by ci,izens OF the United States.
In my opinion those bonds nnd stocks,
amounting u the aggregate to $685. 2Sa20,
which are now rnst ddo and payable, and
also The three por cents, muknH Il total Of
SS2@. l24, nre nut pn actual, but contingent,
liability al tho State.
The act authorizing the Issue Of tho " Fire
Loan bonds " provides that "it shall bu tho
| duty OF the President aud Directors of the
Bank Of the State Of South Carolina to make
proper provision for the puac,rml payment of
the interest Of such loan muy bo effected
upon the credit Of the State undor the proyis-
ions OF this net aud also tor the ultimate
mi f,E "A 81
fnrthcr, =" That when tho profits of tho said
Bunk oi the Suite vi South Carolina Hhull have
paid the interest on certain stocks and re-.
deemed H,ld stocks (ull OF which, suve the
three per cents. lave heum redeemed long
sincc) for which they hive heretofore been
plcdR"d And vet npnrt, ,lc said protita shall
niso bo cnnsldrrcd solcnnly net nIlrt for tho
imyment Of tho interest ni: tho said loan and
the hnnl redemption of the principal thereof"
The history OF tlis loan is ns follows: The
$2,0o0,OOO of bonds woro iasled TO the Bunk
oi the State. Tho bunk through its agent,
General 4cIutfie, secured tho services oi
tho Hnring Brothers, Of London, to nogn.
latn tlIem Tl.uy sucUeedvd in dsposinx OF
] nhnlt y .00O, 200. tho remainder was returned
| I" tho bank, converted into rogstered stock,
and sold in the States. The proceeds or The
sale ot thone bonds and stocks wer. .lo,opited
IN the bank al part oi' its working capital
OF Charleston obtained loan for that purpose
from the hnnk, giving a mortgage upon the
| property aa sccIrty tor tho loan. The bank
received tho moneys from tho salo OF tile
bonds and stocks; it received the interest
upon tho loans innde 10 tho buildcra il re-.
ecvcd the principal Of tho loans al their ina.
tnrity. In Justice, therefore, to the tax payers
Of the Stale the assets Of tho bank whicl,
liavo repeatedly lecn solcmny pledged aud
~ hArt & a..
and stocks, ought to bo immediately so np.
piled.
| In tho report OF the officers Of this institu.
ton to the Legislature Of lS4l it is cmplnt.
caly asserted = that tho uhole Of tho means Of
the bank stand ms sccnriIy for hi. loan"
The president OF tho bank in his report to
the Legislature Of date July, SGs. referring
to this subject, very justly observed "tllnt il
might with propriety bc regarded as debt Of
the bank rather thau debit OF the State The
bonds and stocks wcro sold an! Tie fund.
placed under control Of the bank. whicl, was
charged with tho distribution "f tho funds,
aud also tho duty OF providing for the pny.
mcnt Of the interest aud principal Of tho obi
gallons AZ they became due"
| Tho Legislature, :indcr ACT VI December
2ist. 1865. agxn pledged AID appropriated
the assets nf tho hahk--nist to tho payment
OF the fire loan bonds in Europe SECOND To
the fire loan stocks in America aud third to
| the bills Ui the bank.
Tho Legislature, under act OF September
18TH, lSGS, tlisrognrdod this contract with
the holders OF this lonn and directed
the sno Of tho assets. under :hc direc.
ton OF the Governor, tho proceeds TO be sub.
jcct to the order of tho Legislature; and also
authorized tho funding "f the bills issued
prior To Dccaml,er 20, 1860. The sale of tho
asHiI wHs oIj"ln,.i by tho courts, and the
claims Of these suvcrnl classes ui creditors
| :r, xlill ti,c .,,l,,crt rI li,i,,uti,,u