The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1878-02-13

lSj9-MCh2 - tho conversion ACT.
Oct. 3~l-Rcported d G t,
not full aSto in
terest and float
ing debt........ $685., 7a3
lS70-Oct. 1866, sos
1S7l-Oct. ..l5,S5l ,327
" May 8, the Taxpayers
Convention recognizes. 1866, 9o6
Is72-Mch ID, Validating Act.
:" Oct. ...15, S51 ,327
lS73-Oct. 81 10 ISL ,627
" Gee q. Consolidation Act
Repudiates .......... $500, 900
Recognizes......... 1856, 627
Proposes 10 cents
on the odllar of
recognized debt.
lSS4-Canvass for Governor.
Both sides accept the
settlement.
lS16-lianIpton Canvass. Acceptance:
by Executive Committee.
BY conduct of anvass.
BY action of the Wallace House.
The foregoing brief chronology is the
nucleus OF the facts. =
The first item exhibits the debt of the
State contracted by herself. 1t is the
great recognized landmark and point OF
departure for all future Investigation and
comparison. 1t was made by a Governor
both dc jure and dc jacto when the State
vas her own mittress.
A GREAT LANDMARK.
On the 3lst October, 1868, the honest
debt of the State, funded and u%nfunded,
wa in round numbers seven and 4 quar-
ter million of dollars. - .
The Misgovernment then began. In
three years. by October 81, the MiSgoV-
eminent had raised the debt TO over l51
millions.
Its early action was fair upon its face
the passage of the Conversion Act Of
March 1869, expressing for its object the
conversion of the State securities into
a uniform series Of the same tenor and
date.
If properly carried out this would have
been q wise and judicious measure, use
tul both to the Slate and the bondho,ders.
Its real object, however, was quite differ
cnt from the apparent. 1t was designed
as Il cover for fraud. Bonds were issued
by the Misgovernment not only to take
up outstanding bonds, as provided for by
the Act, but rs u means Of raising money
traudllcntly and without authority Of
law, for the private use OF it's members.
Not content with %plnndering the State
pNsoluiiitt1 IhNnllOllt u ll6SoNO
made the name of South Carolina the
instrument or specializing Of her crcit.
Two years later, in IL 3, the wrong
doors took advantage of their own wrong;
the disagreement repudiated So, 600 ,NO
of the bonds they had thus frandulently
issued-rccogniZzd 81, 1855, 81 as the actual
debt-and proposed to compromise this
at fifty cents or the dollar. .
In the interval, however, between these
various actions of the Misgovernmcnt,
the real people Of South Carolina had not
been entirely silent.
One of the most remarkable and impos-
ing actions even taken by All oppressed
people was witnessed in Columbia on the
9TH of May, 1S7l-a diSnified and manly
convention of the taxpayers OF the State.
Tile writer Of this article was present at
one Of the sessions of this body.
1t was 4 product Of the times. net less
grand and noble; and even more impress
sivc and touching, in the real need and
the stern pressure which brought it forth,
than the Declaration of American indie
pcndence. The latter was for anticipated
wrongs-thc former for actual expressions
far surprising the worst which the Colo
niSts even apprehended,
This Convention met to arrest the fear
full career of disagreement and protect
the plundered people. With admirable
moderation and self government it took
into consideration the past action of the
disagreement, the present status OF the
State debt, amounting to S9,S65,9OS, was
"a valid debt. for which the honor alld
funds of the State were lawfully pledg-
ed" but solcmnly warned all persons
against future issues by the Misgovern-
Inent.
This action of the Taxpayers Conven-
ton furnished the real ground of the con-
tidence in subsequent transactions by
bondbolders. Its word was better than
the bond of the authorities dcJdcto. Its
resolves surpassed in validity and public
respect the broad Seal Of the State, ap-
piled by wrong hands.
The debt acknowledged by the Tax-pay-
ers' Convention in 1871 was substantially
the n n in amount and in items with the
debt recognized by the Consolidation Act
of 1873, and which by it was proposed to
be compromised ut so cents on the dol
lar.
Under this compromise, ifgenerallv ac-
copied, the debt would stand, on the 3lst
of March, 1877, at a little below St, $780,
600.
Compare this with the great landmark,
October 81, 1865, 81, $50, 900 and observe a
diminution of n and a quarter millions
of dollars, besides interest and some 9TH
err items not included in estimating the
diminution.
On what basis does this. sc, OOO, 900 of in
debtedness stand2 Certainly on a very
broad basis, capable of sustaining much
more than 6 100, 900. The original con
sidcration on which it was founded, before
disagreement began, was much larger
than 5000, 000. The original promise was
much larger.
II. in the process OF consolidation some
bonds issued by the disagreement were
included, they were only such as were
pronounced valid not only by the Misgo-
vernment but also by the Taxpayers
Convention. They have a double sane
ton. Even on these bonds, too, the State
realized an average Of about 43 per cent,
nearly the 50 per cent. OF the Consolida-
ton Act.
The special %sacrcdness of a compromise
attaches to the Consolidation bonds.
Many holders have had three sets Of
bonds, viz:
1.-The bonds originally given and paid
for in old times, dollar for dollar.
9. Conversion bonds, given in exchange
for these original bonds, dollar for dol
lar.
3. Consolidation bonds, substituted for
these Conversion bonds, ut so cents in the
dollar.
Unfortunately many holders, amidst the
uncertainties, were compelled to sacrifice
their bOnds-all the elements and chances
eflecting the price and lowering the
value.
What, to the creditor, was the consid-
Grafton for the surrender of his old bonds
at half price?
1t was tho consideration of a compro-
mise, l.. e. settlement! 1t was to havethe
matter settled. Findtity was the essence
of the consideration in the reduction to
so per cent. of the face of the bonds.
This is the specific object of a compro-
mise. The parties come together, take
the matters between them into consider
alton afresh, and a new promise between
both parties, u compromise is made. This
new contract settles the. relation of the
parties. 1t is not a~m6uiatory like a wit,
but final like a deed-a bond-intended to
bind and make things fast.
Only fraud in the creditors themselves, in
obtaining the compromise, can justify the
re-opening.
If re%-opencd, the principles of justice
require the creditors TO be put in strict
statu quo. The State cannot tax the