Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1878-12-26
-. 8 .-.Ss'77rV-'7' : -7vL'-' =
The Bond Cttirfs

|
learn thata majority of the Bond Court bas
decided that over three millons Of the con-
solidated bonds are invalid and not proper
to be consolidated under the act. by reason Of
their being based on vouchers illegally issued.
The decision is 90 afdrmauoe Of the report Of
the Bond Commission appointed by the last
Legislature, and is. we think, right and Just.
We have always contended that the ante.war
debt should be settled on tho basis Of finy
cents on the dollar and all the other debts.
affected with illegality should be rejected, or
If some people like it better, repudiated.
Some months ago we wrote an article tax.
ing very much the position Of the court ne to
alleged bona Jfde holders of these bonds, based
on illegal vouchers. Wo then oontended
there were no suoh persons as true bona 'fde
holders Of those bonds. Tho condition of the
State was we'll known to the world. its bonds
wore being hawked aud peddled about tho
streets of New York like shoddy goods and
our people in convention had published to
I'll world manifesto in regard to the heavy
.xation imposed on them and the unwar-
tantable increase Of the public dobt by o dis
honest and non~taxpaying body. calling them.
selves the Legislature Of South Carolina.
This should have put every man on his guard
| as to investing in our State bonds. But moro
| than this. contended that the bonds of o
State could only be issued by authority Of
| law, and that such low muet be strictly fol-
lowed in order 10 bind tho State. Tho law,
too. in such cases. say the court, is not o
socret document. but a high and public record
The party, too, acting for the State. with
which the lender is to treat, is pointed out.
Neither the law nor the act Of tho agent can
be extended. but both are fixed and limited
by the net itsolf.
In reference to these bonds, declared not
liable to DO consolidated as based on illegal
vouchers large number were put on tho
market after tho timo lin, ted by the act
authorizing their issue; US to others they were
issued in excess of the amount allowed by
law, and ns to others they wore hypothecated
without authority Of law and never redeemed.
These acts being of public record the pur-
ohasers of these bonds had notice and are
enti tied to no consideration as bona fdc hol.
ders. We think the decision of the court
right and we'll sustained in low. We think
in the loss Of four.fifths of the property of
tho State, on the faith Of which the ante-war
debt was created, it is hard enough to pay
fifty cents on the dollar on tho old dobt, aud
do not think we are under any legal or moral
obligation to pay any debt contracted since
the war, unless created under and in strict
accordance with law.
We think tho reputation of these fraudu-
lont bonds will hnvo o wholesome influence
and prevent outsiders from ever again aiding
to sustain and fasten upon any State an
irresponsible and odious government, repre-
senting neither the Intelligence nor property
of the State. Let those who have dono this
suffer tho consequences, wherever bond has
not the strict sanction Of law. Besides, wc
cannot think the credit of State or of nn indi-
vidual can DO benefited, but rathor injured,
by paying illegal debts,
| 1t may be said the Democratic party in the
campaign of 1876 pledged itself to stand by
the settlement of the public debt as fixed BY
tho Consolidation Act. This is not the case.
The Executive Committee made some such
declaration, but tho people peither in clubs
nor in convention ever made such promise.
Evcn if they had. wo would hold that the
promise could not be extended 80 rs to cover
bonds based on vouchers issued without au-
thority of law.
The court in its opinion not only declares
! that these bonds arc based on illegal vouchers
but that thcy are not authorized to be funded
under the Aot. Right is right and tho people
desire only what is just and proper. but this
they demand. While they arc willing to pay
such of the new debt rs has been properly
created, they arc not willing to pay ono dollar
moro than this. When the Legislature split
on these bonds last year, we approved the
compromise by which the validity Of these
bonds was referred to special court, created
with powers to hear and determine their legal
validity. The decision rendered is whit we
expected from the eminent jurists and pure
gentlemen comprising the court. 1t is we'll
sustained by authority, and we doubt not
the decision will bc confirmed by the Su.
preme Court Of the State and Of tho United
States, should it over reach that tribunal. 1t
is no new principle that persons dealing with
q State or corporation must look to the law,
authorizing tho matters treated Of All such
laws are Of public record and are notice to
the world. Tho terms of the law cannot be
extended and the agent has no discretion.
! In this view we think the decision will be
sustained, unloss tho Validating Act should
be held to cure the evil. This was conceived
in sin and brought forth in iniquity and should
be cot aside as passed for corrupt purposes
and doubtless by oorrupt influence. The
way would then be clear and our people bo