The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1874-12-10

run to the State alone 1t ia questioned by some
whether suit can be maintained by the county
upon such a bond, but, however that may be, in
cases of default where the bond is inadequate to
cover the whole oss there is at present no law for
determining in what way the unsecured remainder
of loss shall be apportioned between county and
State. 1t is plain that the county choud be amply
protected by adequate bonds for the custody and
! disbursement Of county funds.
No subject will deserve graver attention or wiser
action than the public debt of the State. At the
last General Assembly an act was passed entitled
'An act to reduce the volume of the public debt
and to provide for the payment of the same" By
that act the State treasurer authorized to issue
in exchange for certain specified bonds and stocks
of the State then outstanding, together with the
coupons and interest orders which should become
due on or before the 1st of January, 1874, new
bonds or stocks equal in amount to fifty per centum
of the face value of the bonds and stocks and cou
pons or interest orders presented for exchange.
The bonds and stocks and coupons and interest or
ders thus specified as exchangeable amounted to
S11 ,4S0,033 81. The remainder of the apparent
funded debt of the State, consisting of what are
known as conversion bonds," and amounting to
SIS 965 900, was declared to have been "put on the
market without any authority of Law" and to be
absolutely null and void" The new bonds and
stocks authorized by this act were required to
'bear upon their face the declaration that the pay
ment of the interest and the redemption of the
principal is secured by the levy of an annual tax
of two mills on the dollar upon the entire taxable
property of the State, Which declaration shall be
considered contract entered into betr,een the
State and every holder Of said bonds and stocks"
It was further provided that these new bonds and
stocks should bear six per cent interest, payable
semi-annually at the State Treasury and in New
York the first coupon to fall due July l, 1874, and
all coupons or interest orders upon said bonds or
stocks were made receivable Gin payment of all
taxes due the State during the year in which they
mature except for tax levied for public schools"
The faith credit and funds of the State were SOL
emnly pledged for "the punctual payment of the
interest and final redemption of the principal of
said bonds and stock, and for providing surplus
fund for that purpose" Provision was also made
for fund, to be kept separate and apart from all
other funds, and to be applied first to the annual
ly accruing interest upon the new bonds and Stocks
second, to the cxtinguishment of the principal of
the public debt by the annual purchase of bonds
and stocks at the lowest market price The act fur
ther contained provisions for public registry of
all the new bonds and stocks, and provided heavy
penalties for any derection of duty the part Of
any officer in the execution of the law.
The leading features of this scheme are the re-
duction of that part of the pnbc debt which was
considered valid to one-half its par value and the
rejection of that part which was considerednvalid.
The act was passed after long delberation, and
was at the time of its passage and has since been the
object of public attention and discussion through
out the State In the recent political canvass of
this State, both parties especially pledged them
selves to maintain this settlement of the public
debt" So far as I have learned the sentiment
of the people of this State they are wholly uni
ted in support of this measure. 1t must, therefore,
be regarded far as Legislature and popular influence
| ri M Is q
The ground upon which this measure rests az to
its reduction of the volume of the debt is the in
ability of the State to pay the debt in full. Az to
the part of the debt which is wholly rejected is
held that it was issued without authority of law,
and hence that it is not legal obligation of the
State. During the five months since this act was
nut in operation By the State officers, over two
millions of dollars of the old bonds and stocks
have been exchanged. When the outstanding
valid debt shall have been exchanged, the princi-
pal of our public debt will amount to SIS, 740,0l6.
| 95. The annual interest upon this amount will be
S344,4 ,4Ol o. The tax annually levied to pay the
interest on this debt will at all times be held in
readiness to pay all interest which accrues on the
new bonds on and after July l. 1874, whenever the
exchange shall be effected.
| Article XIV of the State Constitution, ratified
January %, 1873, forbids any increase of the pub
lie debt of the State by the loan of the credit Of
the State by guaranty endorsement or otherwise,
until the question of such increase shall have been
submitted to the qualified voters of the State at
general State election and unless twothirds the
voters, voting on this question, shall be in favor of
such increase 1t is believed that this provision
will be an effectual guard against any further in
crease of the public debt.
The Supreme Court of the State has decided
that provision such as is contained in the present
act for the levy of an annual tax, contract be-
tween the State and its creditor and is capable of
enforcement by process of law directed against the
proper officers of the State, and furthermore, that
such provision operates of itself not only as
levy of the tax but an appropriation of the pro-
ceeds of the levy to the purposes designated by the
act. Under this decision the provision for an an
nual tax remains permanent levy and approprla-
ton and no further legislation is necessary from
wear to year to accomplish the purposes Of the act
in this respect.
These provisions of law, together with the 1ro-
vision which makes all coupons or interest orders
unon the new bonds receivable for taxes during the
wear in which they mature, give to the new bonds
all the legal safeguards which it possible to place
around them.
cannot believe that any party, nor even any
man. will hereafter dare to interposc an objection
to the prompt discharge of these new obligations
of the State Confidence in these matter is a plant
of slow growth. Once tramped on and crushed, it
rcviycs with exceeding slowness and Hourshes
only under long and tender care. If the expe-
rience of any State should have Impressed this
lesson, surely it is the experience of South Caro-
lima. 1t now becomes our paramount duty to labor
to restore our ruined State credit by the on means
apparentv left us-a prompt, unhestatng and
conscientious discharge of every obligation in
cured under the law which authorizes the consoli-
dation of the public debt. In this way we may
hope, little by little, to win back some part of that
public credit, the loss of which is among the sad
dest calamities which has befallen our State.
I consider it my duty to call attention to the
relations of the State to the bills Of the Bank ofthe
State. By the charter ofthc bank these bills were
made receivable for taxes and other dues to the
State. The insolvency of the bank has rendered
the liability of the State the chief element of value
in these bills The State, by her proper officers
having refused to receive the bills in payment of
taxes, proceedings were had in our courts to conf
pei the reception OF the bills issued prior to Decem-
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