Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1873-10-30

Dellum debt, and history OF the DOnued IN
dehtedness of the State next follows. The
aggregate floating and funded debt is stated
to be 1888, ,9Ol10 for the reduction of
which the following plan of adjustment is
proposed:
"Itis we'll established principle of political
economy that all individual having money to
invest will make all investment in that class
of "securites" which offers the best guarantee
of safety-securitics which will not only pay "a
premium upon the money invested, but which
may be disposed of, without loss, whenever
change of investment is desired-in other
words marketable security. The value of a
state security depends largely upon the conf
dence to the purchaser in the good faith of
the State, but more especially upon the means
which the State places in the hands of every
holder of her bonds, to compel the punctual
payment of the interest as it accrues, and the
principal at maturity. The State is sovereign
and cannot be sued but when she enters into
contract with an individual, through her
agents, and directs said agents to perform cer-
tain duties in fulfllment of that contract,
such individual can compel the agents of the
State to execute the will of the State as en-
pressed in such contract. Thus, in three
fourths Of the States, whenever the financial
officers are authorized to create debts by the
issue of State obligations, the machinery for
the punctual payment Of the interest and
principal is provided as part of the contract;
and every individual who accepts such obi-
CATION in exchange for the money headvances,
receives remedy-of which the obligations
themselves are the evidence-for every neg
lect of duty in the premises on the part of
the agents Of the State. Such an obligation
offers the best investment that could possibly
be made, inasmuch as the holder thereof has
a lien upon the entire property of the citizens
of the State. How is it with the bonded
debt of this State? Our debt may be divided
into three classes. The first class includes all
those bonds Originally issued) of the FIVE
classes enumerated in the decision of the Su.
preme Court upon the Morton, Bliss & Co.,
mandamus case, amounting to S6,549, 900.
The second class includes all those bonds and
stocks whose only guarantee for the payment
of principal and interest is the good faith of
the State. This class comprises the old bonds
and stocks (except the Blue Ridge bonds,) the
bonds for funding past due interest and princi-
pal, and funding bills of the Bank of the State,
and amounts to S4,513,5O434 The third
class are those for which no provision has been
made for the payment Of interest or principal
by guarantee or otherwise, and includes the
Blue Ridge bonds, (the absence of the guar
antee in this instance being probably an over
sight) and the conversion bonds issued direct.
ly by sale or hypothecation. This class az.
gregates $6,965,0O0. This concludes the his
tory of the character of our bonds. Let US
now inquire their present market value Our
january and July bonds," old and new,
which comprise the entire amount, except $2,.
$4,000 of"Aprils and Octobers," are quoted
at fifteen cents. The latter being portion of
those recently before the courts, are quoted at
twenty ythree cents. Now it is evident, from
the arguments previously advanced, that the
State is unable to pay the interest upon the
debt as it stands, and that it is to the interest
of every bondholder that the debt be reduced
in volume to reasonable limit, so that the
payment of interest may be resumed. If,
when the holders of our bonds and stocks
agree to surrender them for new and consol-
idated bond or stock, the State agrees as part
of the contract, (of which such bond or stock
itself would be the evidence) to provide for
est and for the extinguishment annually of q
portion of the principal until the whole shall
be thus redeemed; if, in pursuance of such
agreement, she instructs her agents (whoever
may represent her from the date Of the con-
tract until the debt is entirely extinguished)
to levy and collect annually taxes sufficient to
pay said interest and retire portion of the
said principal-if she instructs her agents as
aforesaid to disburse the funds so collected to
the purposes aforesaid. and if embezzlement
or diversion Of said funds be made felony,
punishable as the constitution directs, it is
evident that it would be to the best interest of
the bondholder to accept willingly SUCH a COM
promise. For if these remedies be placed in
the hands of every bondholder, it is evident
that while his new bond would represent upon
its face sum equal only to two-thirds or one
half the face value of his old bond, the mar
ket value of the new bond would undoubtedly
be from one.third to one-half greater than the
present value of the old. For instance, if
$4,000 of old bonds, worth 15 cents on the
dollar, or $3.50, be exchanged for $4,000 in
new bonds, worth at least 40 cents on the dol
lar, or $500, the holder will have madea clear
gain upon the actual value of his bond of
$3.50 !; and again, if $4,000 in old bonds, worth
% cents on the dollar, or $500, be exchanged
for $4,000 in new bonds, worth at least 40
cents on the dollar or $500, the holder will
have made a clear gain upon the actual value
the payment of the interest and the redemp-
tion of the principal of his new bond will be
amply secured by remedies in his immediate
possession"
In view whereof the Governor makes the
following recommendations
"First. That all the bonds of the State for
which the State is actually liable, less $38, 5000
State Capitol bonds of 1853, past due, to be
otherwise provided for, be scaled in the fol-
lowing manner, to wit:
That the State treasurer be authorized and
instructed to receive from the holders wiling
to surrender the same, all the bonds and stocks
of the State previously issued and now out
standing against the State, (not including the
State Capitol bonds before referred to, and
bonds known as "Conversion bonds" issued
directly by sale or hypothecation, the num-
bers and denomination of which will more
fully appear by reference to the treasurer rs
registry of bonds and stocks converted, or is.
sued directly, amounting to $5,965,0OO) and
shall thereupon, in exchange for and in lieu
of said bonds or stocks so surrendered, issue
to said holders other bonds or certificates Of
stock, as they may desire, equal in amount
to-of the face value of the bonds or stocks
so surrendered. That the State treasurer be
authorized and instructed to receive from the
holders willing to surrender the same, all the
bonds of the State, known as "conversion