The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1877-05-17
COLUDsIBIA CORRESPONDENCE.
COLUMBIA, May IA,

and we have,4labored day and might to.
arrive at such "a conclusion as would be;
satisfactory exposition 7of the entire
subject, and to- hasten the adjournment
Of Che Assembly. 1--WE find that all the
bonds issued since 1890 down!to 1873;2ln:
accordance with acts authorizing the
same, Except suchlas have been'declared
null and void,) were consolidated into:
new bonds at:the' rate ofetwo old bonds
for one new one. The other bonds not
enumerated lin this act, including the
Blue Ridge scrip, were. declared illegal.
and void. The amount of bonds consot-
idated in accordance with this act sotfaf,
amount TO- about, in round numbers, four
and a half million dollars, and when all
that are authorized toabe funded are
funded, the Iamountoof the consolidated
debt will be $4,000, 600. The amount of
the States a,,te:belhns bonded indebted
ness amounted to $6; 5000 hence it is
seen that;if the act authorizing the fund
ing of the entire. debt has been strictly
adhered to-, the present bonded indebted
ness of the State is a little less than what
the debt was before thewa The amount
Of bonded debtedness gotten rid Of by
previous Radical Legislatures amount to
about $4,000, 900, Wis $780, 900 Conver.
sion bonds, nearly So, 900, 600 B9R. r. r.
Scrip, and $4,000, 900 by compromise in
the funding scheme The policy of the
Radical party, as it seems, was to strain
the creditiof the State to- its utmost ex.:
tent. and when its. bonds would ne longer
bring cash upon the market, they COM
promised and repudiated the debt, and
then turned their attention to filling their
capacious pockets by means of direct
taxation. Our recent experience has
taught us how necessary money is to sus-
tain and support our newly established
government; and while it has been our
policy to reduce taxation to- the very
lowest amount commensurate with the
necessities of the government, it swell
understood that when so reduced it is
absolutely necessary that whatever taxes
are raised should go directly to the sup
port of the government: re Right here
comesin our difficulties, and when ex-
planned you will readily understand why
tits the public debt must necessarily ien-
ter into the consideration of this special
Legislature, and why it is we. are not able
to. bring the session to close. There
are three kinds of debts; staring US in the
face, which threaten the treasury with
bankruptcy: .G-9 ai & '@,SaEt;3 !Jr'1
! First. The bills of the Bank Of the
State, which thei.,Supreme Court of
the, United States has declared valid and
binding upon the State, and also'receiya4
BILE for taxes. The Circuit Judges have
also ordered Treasurers to receive and
receipt for them. 2i:7r g7i.7fa2 iGog ati
Second. The Big and little Bonanza
claims, which have been by act of the
Legislature declared a. contract between
the, holders and the State, and for the
payment of which and part Of the
contract, the same Legislature: levied a
tax amountingto about 2t mills annually,
the same to continue for four years. and
as part of the same contract, the levying
of the. tax was not left to succeeding Leg-
islatures, but the tax was actually then
and there levied, iand';it was made the
duty of the Auditors and Treasurers to
collect it t,under heavy pains and penal.
ties. To attempt to set this aside Gby
legislative enactment would be decided
by the, Courts as a violation of that arti:
Gle Of the Constitution of the United
States prohibiting the passage of any
law impairing the obligation Of con-
tractIF .l..a f-0f.ici 30 igsrH.irg'3 :Gi,fH'
! Third. The bonded, debt. The act
which created and authorized the con-
solidation of the bonded indebtedness
was SO framed as to be contract between
the bondholders and the State, and pro-
yided in consideration of the holders de-
liyering up their old bonds and taking
new ones at the rate of two to one; and
the State further agreed, in nsideration
of the holders accepting the compromise
offered, that tax of two mills should be
annually levied to, pay the interest on
the bonds when consolidated, and the
coupons of said bonds should be receiv-
able for taxes. There is also, besides
these three characters of indebtedness, q
large debt in the shape Of deficiencies,
claims, floating Indebtedness; and CON
tingent Liabilities, all Of which can
readily be gotten rid of by legislative en-:
acttnent, and when opportunity presents
it no doubt will be proven to be fraudu-
lent, at least the largest portion will be.
This debt can not worry US at present,
and therefore we don't propose TO toncah. to- g |.
it this session.. ......,,f, .,j1 ..faGij.
The question, then, is how can we pro:
tect the treasury from being flooded by
these bills of the bank of the State and
the coupons of the, consolidated bonds,
and how can the taxpayers be protected
from the levy Of q mills to pay the, pro
rata share of the two Bonanza claims? 1t
will take s5OO,000, or five mills, to meet
the actual current expenses of the State
government, cutting down expenses to
our own figures. Now, if these bills and
coupons are not provided for, or kept out
of the treasury, our tax will have to be
that much higher. In other words, be-
fore taxes can be reduced, as the necessi-
ties of the people require, something must
be done to protect the State from being
flooded by bills and coupons, as above
stated. Suppose tax of five mills should
be levied, and a large part should be paid
Ill UA1Ao 1ao utSAAS3 oNS eASss~
would be necessarily short to that amount.
We are preparing scheme to Keep
the bills of the bank of the State and the
Bonanza claims out the way, but so far
we have been unable to devise a plan to
avoid the coupons, Observation-Disclosures
have had the assistance of the ablest
counsel. The committee has recon-
mended that these bonds should be sub
mitted to the scrutiny Of commission
appointed for that. purpose before a.
coupon should be paid, and for the pay
ment of the honest interest 6 tax of two
mills was recommended to be levied.
But being anxious to still further reduce
the levy, they are still trying to effect an
arrangement providing for the funding Of
this years interest found to be honest. I
think this arrangement can be; effected,
in which case the tax levy will not dex,t
ceed five or FIVE and one::half mills for
State purposes. It would, be an easy
thing to make ajax levy and go home,
but # would be 9 terrible blow to Coy.
HAMPTON if we should leave him in such,