National Republican. (Washington City (D.C.)) 1872-1888, 1874-04-16
SOUTH CAROLINA FUNDS.
TIE STATE TREASURED IN REPLY TO
THE TAX-PAYERS.

THE IA1-PAYERS.
IMR. cARpoZo BEFORE THE HOUSE COM
MITrEE ON THE JUDICIARY-FULL Ex-
PLANTATION OF TIE FINANCIAL AFFAIRS
OF THE sTATE-TRIUMPHANT yINDICA-
TON OF THE REPUBLICAN GOVERN
MINT.
The State treasurer of South Carolina, Mr..
Cardozo, in company with Mr.. Lee, Speaker Of
the House Of Delegates of the same State, two
colored gentlemen Of intelligence, on behalf OF
the Republican committee, appeared before
the sub Committee on the Judiciary, and spoke
substantially as follows:
The burden Of the taxpayers complaint is
this: That taxation in South Carolina amounts
virtually to confiscation. They cite in proof of
this statement that the taxable property has
been reduced from $500, 900 900 before the war
to s175, 900, 900 at present, and the expenses of
the government of the State from $500, 900
before the war to $4,000 900 since the war
Or to state their proposition in another form,
the taxable property has been reduced one
third, and the expenses fthe State has been in
creased four-fold; that is, that persons have to
pay twelve times more taxes now than they had
to pay before the war.
The proposition presented in this manner
seems forcible. The answer, too, is two-fold.
First. Is the rates of taxation in South Caro-
lima so much greater than in other States as to
warrant their statement that It virtually
amounts to confiscationl Let the facts and
figures speak for themselves. Here they are:
The rate of taxation in 1870 in Arkansas was
ten mills; Alabama, nine and one-third mills;
| n nj aIf al
ten and one-fourth mills; Florida, eight and a
halfmills; Kansas, eight and seven-ninth mills;
Louisiana, ten mills; Nevada, eleven and half
mills; North Carolina, nine and one-ffth mills.
The average rate of taxation in South Carolina
for State purposes for the past six years has
been eight and q half mills.
Secondly. The per capita expenses of the
State of South Carolina as compared to other
States is as follows, in 1870 In California,
s4.53; Connecticut, s3.4s; Louisiana, 1857
5 Massachusetts,, s5.OS; Nevada, STOP; New
I Hampshire, So; Virginia, $3.50; South Car
DINA, $3.50.
The $3.50 charged to South Carolina arises
from an average struck for the six years and
four months from July, 1858, to October 81,
1 874, by dividing the receipts from all sources,
Q including the amount of s. received from
the hypothecation and sale of g. of bonds,
estimating that these bonds realized to the
: State one-third their face value.
Thus when we make a comparison of the
q rates of taxation in South Carolina with other
I. States, and the cost per capita in South Caro-
: lima as compared with other States, we see at
once that it is rot unusual or unparalleled.
{ It is different from what it was before the war
$ but that is because the State has emerged from
i the "barbarism of slavery" and taken her
!. proper place among the other States of the
5 Union in the march of civilization. She is
; simply in accord with the genius and spirit Of
) American liberty and institutions.
TIE DEBT.
I When the Republican party came into power
in July, 1868, they found bonded debt Of
. about $4,000, 900, and large floating debt,
= $500, 900 of which they bonded. They then
issued 81, ZOO, 700, making a total of sic, Oo0,
# 900. The Legislature has declared 81, 00O, 0OC
4 of that illegal, and refused to provide for the
a interest It is, therefore, inferred and gen
: orally believed that the $1,000, 900 has beef
a stolen and applied to private purposes. This is
!, mistake. The 5000, 900 of bonds were ny
! pothecated for loans of money which was used
j for the benefit of the State, as the excess o
!: payments on receipts of money from all othe
l. sources will show. It was diversion instead o
n an eul5ezzlenlsnt. This question is before tn
a. courts, and If the courts should decide that
there is an equity in these bonds, and that the
State is required to refund the money that sh
obtained and used + i t9 be her:i th S : :
amicable adjustment will be had between tn
- State and the holders of these bonds.
IS The PROFESSIONALLY valid debit OF $40, 0O0, 90
has been scaled 70 one-half their face value
IF and tax levied and collected to pay the intel
DO est accruing July 1, 1874.
g If our creditors decline this proposition, on
will be made, trust, which will be satisfac
e tory.
y y The gentlemen Of the taxpayers COMMITTEES
state that the s., 500 900 Of their floating debt
" which we bonded, was unnecessary, aud that
G it was mere job. Now permit me to anaiyz
re this charge.
When the Republicans obtained power the
funded the bills of the banks of the State
which is included in the s., 500, 900 referred tt
a as part of the floating debt. They did thi
Is because these bills were received before tn
war for taxes, and they feared that it nigh
u Uc successfully J1AcS I51Iu, I'LL
i, as they could not be put out again, the govern
1t ment would thus be crippled.
70 The time for funding was limited. Most o
the bills were funded in twenty year bonds, a
= par, when the time for funding expired.
,s Since that these unfunded have been tendereC
% for taxes and have been declined. The de
'r cisions of the State, and United States suprem
Courts have been invoked, and they have de
a. cided, in one case at least, that they must b
y received for taxes. The other cases are still
= pending.
d This shows the wisdom of funding, AMI m
T. regret is that all were not funded.
The annual expenses of the State government
is also a subject of complaint.
1t is very difficult to make an absolutely jus
N and correct comparison Of the annual expenses
of the State without taking into consideration
Id the objects of expenditure.
n The average annual expenses of the Stat,
goysfn15ept from July, 1858, to October, 1874
= hasSa6Eh about s1,65o,OOO, Including tn.
!, epQgpt realised fQu the bonds referred +
e. above. 80 ZFFr..
The average annual expenses Of the Stat
d g6Sefhment for pine years before the war wa
e at least $500, 900. - e.-.-5,-
( The moment you commence to illuminate
extraordinary objects of expenditure, remembe
that that can be done on both sides; and If sucl
: process be fairly applied to both sides, though
ours will still be larger, yet 1t viii be found tina
! is because of these objects in which all FIRE,
3 people take especial pride and delight, such a:
: schools, reformatory and penal institutions.
: While, gentlemen, correcting the exaggera
I lions and misstatements of the taxpayers
: committee, l do not wish to be understood a:
saying that there is nothing wrong in South
I Carolina. There are wrongs and evils thert
) just as in other States, which need correction
!, am no spologist for these wrongs; have de
: nounced them as much if not more than the
: taxpayers so-called. The Republicans have
corrected them in part, and propose to correct
them entirely.
These gentlemen of the taxpayers commit
tee regard these things as SO abnormal and
. strange that they have come here invoking the
Lat afC 10 lxr doa.