The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1878-03-08
The Bond Question.
MR.. STANDS SPEECH.

~"S S'SSoSSiou upou tuo YueSttOu VI poy"S
the bon Is of the State in accordance with the pro-
visions of the Act passed by the Radical Leg;s-
lature in 1878, commonly known as the consoli-
dation Act, which required oil State BYuds-
old and new-to be funded ut fifty cents on the
dollar, is getting quite excited in the legislature.
The Act then passed was called can Act to re-
duce the volume of the public debt" and en-
braced all outstanding bonds. Under that Act
nearly the whole Of the Bondholders funded
the bonds in their possession and accepted
consolidation bonds for half their amount. -
AT the last session of the Legislature Commits
sion was created to investigate the bonded debt
Of the State, and that commission reported to
the present session that n number Of fraudulent
or unlawful bonds had been funded, and left it
for the legislature to decide whether, after the
State debt had been reduced so ccnts OH the
dollar, it should be further reduced ty refusing
to pay the funded bonds tainted with fraud.
We confess our ignorance upon the matter
| until full discussion of the whole subject, by
the members of legislature, brought all tho
nsieAsshafere us = but We were strongly inclln61
| to believe that Il would not bs repudiatiou to
refuse to pay bonds issued in fraud, sold to in
| nocent purchasers, even with the great Seal of
the State upon them, and afterwards funded by
those purchasers at one-ha,f their original face
| value.
The political plea is raised, that the Radi.
cai Legislatures and officials who perpetrated
those frauds were not the true representa-
tives of the Tax payers of the State; but that
plea cannot be allowed. They nevertheless oc-
cupcd the relation of lawful agents of the State
and the State was bound for all their contracts
as strongly n business firm is bound for the
contracts of its recognized Agent or Agents. In
either case, if the Agents make bad contracts in
| the name and under the seal of the parties for
whom they act, those contracts are good in law
and morals against the latter, and refusal ts pay
them is reputation.
~-<ssorruc SoWvn earolinian wili-ucsire tossed
honored by the stain of reputation, in any
form. Our agents--for such, most assuredly
the Radical Legislature and officials were-vile
and trcacherous rs they aoted-used the great
| seal Of the State of South Carolina under which
| to practice most infamous and oppressive
| frauds upon the people who alone could pay
the taxes, but we cannot believe, now that the
| honest taxpayers have control Of the State gov
| ernuent, they will disgrace the State by dishon-
oring her signct--thc great seal. We look upon
| it in two lights, viz; o debt of honor and debt
which the State is legally bound to pay. In or
der that our readers may more readily under-
stand the matter, we append the following sy-
nopsis Of very able speech delivered before
The Legislature, by their Representative, II. w.
Shand, ESQ.,:
r
| Mr.. Shand, Of Union, followed Mr.. Hemphill
| in a masterly speech in favor Of the consolida-
| tion act. After short introduction to the sub
| ject, Mr.. Shand proceeded by reciiiug numcr-
! Gus facts and statistics to show that il would
save the State several millions of dollars by ad.
herring t. the settlement effected by the consoli-
| dation act. He said this compromise was made
| to prevent the State from going into voluntary
bankruptcy. lie said he held that State could
60 into banruptcy then went on to ex plain why
the creditors of the State had consented to make
such compromise rs would ensure thom fifty
cents on each dollar Of the bonds which they
| held as obligations against the State. SO long
| as man is solvent he pays all undisputed debts
| but when n man is insolvent il is then that he
| has to make compromises with his creditors. 1t
| is only in this way that he can regain his SOL
vency. Mr.. Shand read resolutions which were
| adopted ut public meeting at Union in 1869,
| in which the people of that county declared to
| the world that il was their determination not to
pay any debts made by the Radical State gov
ernment. He commented on these resolutions
at great length. l am informed. hc said, that a
very large proportion of the bonds which come
under the provisions Of the consolidation act ore
held by people in South Carolina.
! Mr.. Colt here interrupted him by saying that
lie did think such was really the fact.
Mr. Shan said he had been so informed. He
continue by saying that the members who had
spoken on the opposite side had failed to occupy
debatable grounds. 1t is no use for gentlemen
to get up here and tell us about the frauds which
were committc cd during the days of Radical mis-
rule. No one will deny these, but we are bound
by the consolidation Act just the same as IL there
was an honest government in the State at that
| time.
At this junction, Mr. Pope asked leave Of Mr..
Shand to be allowed to make motion to take
| recess.
Mr.. Shand consented and the motion was put
and agreed to.
| SATURDAY, March 3.
Mr.. Shand said that when he closed yesterday.
he was showing how perfectly we'll our people
knew Of all the frauds recalled to mind In the
report Of the bond commission. Knowing these
frauds the Legislature had directed her officials
to receive those irregula, bonds and issue in ex-
change therefor consolidation bonds at the rate
Of fifty cents on the dollar. And the question
at issue is, whether the consolidation bonds un.
der these circumstances bind us in honor and