The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1878-09-12
THE PUBLIC DEBT.

MIR. EDITOR: vi all the puDnc questions
likely to agitate the public mind for the
next half dozen years, the question of the
public debt is by far the most important to
the people of South Carolina. While the
honor of the State should be scdulously
guarded in the adjustment, it is equally i'm
portant that no fraudulent obligation should
be, through the medium of legal tcchnicali-
ties, fastened upon an already over-burdened
people. The Radical Legislature under
Chamberlain proposed ON adjustment OF
the public debt by repudinting fifty cents on
the dollar, and issuing new bonds drawing
six per cent. interest for the remainder.
This arrangement made by Radical Legis-
lature was received by the people with graf
ulation, not because it was all that justice
would require to be DONE but because it was
30 much better than we had any right to
expect from Radical authority. 1t now
turns out, however, from an investigation
by public authority, that about two mil
lions of this consolidated debt is tainted
with more or less of fraud, and this gave
rise to the formation Of two parties in the
Legislature on the debt question, one con-
tending that we could not in good faith 60
behind the consolidated debt, and the other
with equal pertinacity contending that the
Democratic Legislature owed it as first
duty to the people to sift the fraudulent
from the valid portion Of the public debt,
and arrange on.y for the prompt liquida-
ton of the valid. The contest ran high,
and finally compromise wal reached by
which the whole question was referred to
the Courts, all parties agreeing to abidetheir
decision. But the new Bond Court, organ
lied by the Legislature for the express pur-
pose Of passing upon the validity and legal
ity of the whole question, is likely to be
ignored by the bondholders through appeal
to the Supreme Court on the ground Of un-
constitutionality. In that event, the whole
question may come back to the representa-
tives Of the people, to haunt them with
difficulties and dangers on every side. That
the voice of the people is almost unit for
the elimination of the fraudulent from the
valid debt before payment il made, there
can be no doubt. And that there Is more
or less of fraud connected with the whole
bonded debt, originated by the Radical gov
eminent, there is just as little doubt. But
still, notwithstanding all these facts, tho
courts may, under the shield Of legal TECH
nicalities, saddle the State with the whole
consolidated debt, fraudulent as we'll as
valid. Then add to this all the floating in
debtedness, and the old State bank bills,
and we may reasonably presume that the
whole amount of the Indebtedness piled
upon the people OF the State will reach the
enormous sum Of eight millions Of dollars.
This at six per cent. interest will necessitate
the raising every year by taxation Of the
enormous sum Of four hundred and eighty
thousand dollars to pay the interest on the
public debt. This added to the annual eI-
penditure of about 100000 dollars will
necessitate the raising Of ON annual tax Of
nearly one million Of dollars from the int
poverished people Of the State. And this,
too, would bo the gloomy prospect for per-
haps the next century. Can any man be-
lieve, basing his calculations upon the pres
ent impoverished condition of the people,
that there can be any prosperity in store for
our State while this incubus rests upon the
taxpayers? We trow not.
Is there any remedyH Certainly not in
Tho rornaf1y ,vou1d ho rvorca
than the disease. After the amount of the
consolidated debt has been adjudicated by
the courts, ard tho valid amount of the
floating Indebtedness hes been ascertained,
then let the State, through her constituted
authorities, honestly and frankly approach
all of her creditors and make an equitable
and satisfactory adjustment, looking as well
to tho ability Of the people Of the State as
justice to the creditors. Frankly say, We
cannot pay oil, but are willing to pay what
we can. Great credit was claimed by the
friends Of the consolidated debt on the
ground that by that adjustment the public
Indebtedness was reduced to the amount Of
the ante-bellum debt, viz: between five and
six millions Of dollars. Forgetting that the
analogy is utterly shorn of it, strength by
the fact thot now the taxable property of
the people of the State only reaches about
one hundred and eighty millions of dollars,
all told, while at the time Of the contraction
OF the nnte-bellum debt our taxable property
amounted to between five and six hundred
millions Of dollars. Looking then TO the
present impoverished condition Of the peo-
pie Of the State, and judging Of their ability
to pay from the rate Of taxation adopted as
the highest limit by other States similarly
situated, it doe, seem to the writer that in
no event should the whole Indebtedness for
which the people are to be taxed to pay the
interest, be moro than three millions of
dollars. This would place the whole public
debt within the control Of the people Of the
State, so that in reasonable time every
cent Of the indebtedness Of the State can be
wiped out, and then let provision be in
serted in our new constitution when adop.
ted, that no bonded debt shall ever again be
contracted by any succeeding Legislature.
Il. H. r.
rIup MppTTNna