Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-01-28
INTERESTING TO CAPITALISTS.
Letter from an Ex-Treasurer OF south
Car0Isnr

Carolina.
Our readers doubtless remember COM
munication from Mr.. Newell, Of this city,
to the Treasurer of the State of South Car
| olina, with reference to the repudiated
| bonds of that State. Mr.. Newell has re-
| ceived the following communication on
that subject:
COLUMBIA, S. c., Jan. %, 1S74.-W. B.
Newell, Nashville, Tenn: l am in re-
eeipt of, ur'S of the 18th inst, asking me
| to explain 'why the New York Stock Ex-
| change continues to quote the repudiated
| bonds of this State" 1 have no means of
knowing what views that body entertains
upon the subject, but Venture the opinion
that they regard the action of the Legisla-
ture of little or no importance. 1 presume
you are familiar with the act Of re-
pudiation $50 called) to which
you refer, viz: "An act to
reduce the volume of the public debt and
provide for the payment of the same;;" but
possibly you are not, and that you, in COM
mon with most people, are misinformed
upon the subject, so l will, as briefly as
possible, state the case as it stands.
Section Of the act authorizes the State
Treasurer to receive all the outstanding
bonds and stocks and past-due coupons,
enumeratiDg the several classes, and speci-
flying the amounts, and to issue in
lieu thereof other bonds and stocks at the
rate OF fifty cents on the dollar. All the
outstanding stocks and bonds of the State
are included in this section except-a por-
ton of the issue of March %, 1869, (the
supposed repudiated bOnds,) and no men
tion whatever is made OF them.
Sec. 2. Which provides for the payment
| Of interest, ETC., has these words: "Provid-
ed further, that no tax shall ever be levied
to pay the interest or principal on any of
the class of bonds mentioned in the first
section, so long as such bonds remains out
standing in their present form"
Mark the language; as L said before,
| there is no mention OF the bonds issued IN
der the act of March %, (Which are the
ones supposed to be repudiated,) except
those which they intended to come within
the operation of this funding and sealing
| act.
will quote the language of the act that
| you may see precisely how the case stands.
After enumeTating every other class Of
bonds and stocks of the State, and prUvid-
| ing for their funding, it adds: 'sThe bonds
| and stocks issued under act of March %,
| 1869, redeemable in 1888, for the purpose
of exchange of any of the stocks or bonds
| above enumerated, said fact being ascer-
| tainable from the Treasurers registry Of
bonds, amounting to one million
five hundred and seyenty-seven thou
sand five hundred dollars, and
shall, thereupon, in exchange for, and
in lieu of said bonds and stocks, so surren-
dered, issue to said holders other bonds or
certificates of stock, as they may desire,
equal in amount to fifty per centum of the
face value of the bonds or certificates of
stocks so surrendered You will observe
that there was no act Of reputation here,
none whatever. 1t was, at most, only
studied neglect Oh the part of the Legisla-
ture to provide in any manner for them.
and such, have every reason 10 believe,
was the intent of the trainers Of the law.
No one, unacquainted with the fact that
these were bonds Of the State unprovided
| for in this act, would know by reading the
act that there were any Others in existence.
The unfortunate holders" of these Sc
curitIes, in my opinion, may rest assured
that they hold rs good and valid security
as any which the State has ever issued. A
recent decision of the Supreme Court of the
| United States, copy Of.which / herewith
| transmit, confirms and strengthens me in
the belief which L have always entertained,
that these bonds, which are now generally
believed TO have been repUdiated, are a
perfectly legal and valid security, and that
the courts will so decide if they can have
an opportunity to do so.
trust every holder of them throughout
the country will settle down in this belief,
AMI wait for justice from those to whom
may hereafter be committed the destinies
| Of this State.
am truly your obedient servant,
| NILES q. PARKER.
| Late State Treasurer of South Carolina.
The following is the decision referred to
in the foregoing:
The Supreme Court Of the United
States has given decision in favor Of
George o. Marcy, of Boston, confirming
the validity of $4,000 Illinois registered
town bonds issued in aid Of the Illinois
Grand Trunk railroad. The town at
tempted to avoid paying interest on the
bonds, alleging that they were illegally is
sued. The basis of the courts decision
was, that no irregllarity precedent to the
issue, not even fraud on the part Of the
agents of the town, can vitiate the bonds
| in the hands of an innocent holder. The
court applies the same rules to these bonds
| % are anDlie1 to commercial naDAr,