New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-09-13

Three per cents. gold %3s ~
Eve per cents :,id -----'''-'' si55s33
TOTAL ACKNOWLEDGEMENTS .So,S'9'llo
Besides this. there were 80, 9G5, 900 OF CONVEX
sion bonds, which had been declared vod, and
railroad Endorsements amounting to $0,712'6os.
No interest had been paid since 1872 In table OF
defanted State debts published November !, 1919,
The Financial Chronicle estimated the debt OF South
Carolina at $40. 100000. The dcfaulied debt was
reported TO be $1320O.00O, Of which S1,70O.OO0
were held abroad. The funded debt on which III
terest was being paid. amounted to 81, 600.
In January. 1877. The Financial Chronicle esti
mated the entire amount Of deb. which had been
issued by South Carolina at S@O,6lS,S3o. This
amount included $40 100000 IF bonds which had
been declared void. In July, 1877, the amount Of
outstanding funding bonds issued under the act OF
1873 was about 5;f,396, 900, and on these most OF
the interest had been paid to January l, 1871 In
May, 1877 the Democratic Legislature forbade any
further payments of interest until all the bonds had
been sent in 10 the State Treasury and examined
This proceeding involved years delay IN the pay
mcnt of the interest for 1877 ana the first step
toward further reputation. This action was taken
notwithstanding the fact that the law of 1873 had
been uniformly recognized and accepted by both
potical parties rs final settlement of the public
debt question Even after the accession OF the
Hampton Government. the Democratic Executive
Committee and the Wallace House " had both by
formal resolutions recognized the consolidated, or
funding. bonds as valid.
The reign of extravaganza and corruption in South
Carolina was checked by the election OF a reform
Legislature in 1872, and Notwithstanding Demo
cratic Investigating Committee of the Legislature
labored zealously for eight months in lS77-7s,
il was utterly unable to find any fraud in the Re
publican management OF the State finances from
1873 1877. The Bond Commission, established
by the Legislature TO examine the bonds. however
repOrtsd IN February 1878, that of all the cOnso-
dated bonds issued only S1.577,s3J were valid
The Commission declared that $2,slS,43o were
tainted with fraud" About T27l6.OOO of fund
able bonds were then still OUTSTANDING The subject
WAS referred to a Court of Claims which reported
December 10. 1873, that $23JO,OOO of the bonds
were vitiated, because some of the vouchers on
which they were issued were declared fraudulent
and because correct registry of all bonds issued
had not II was asserted, been kept according TO
law.
| The bondholdcrs appealed from the decision of
| tho Court of Claims but so far rs is known, the
appeal has not been decided. If all the bonds " re-
cognized- had been funded under the act of 1873,
the principal of the debt including accrued interest
to January /, 1874, would have amounted to about
81. 1905 900. This amount, 1t will be observed, Is
considerably smaller than the principal of the debt
incurred before the plus interest which accrued
during the war. Nobody questioned
the validity OF that debt until the Dem
ocIats seized the control of State affairs
two years ago. In March, 1873, the Legislature
permitted funding operations to be resumed under
the law of 1873, and 81, 469,351 funded in
new bonds and stocks amounting to $734,675. The
permission expired November l, 1873, leaving ont
standing fundabe bonds amounting to ~ ,406, 729.
The Controller reported in November, 1873
that thu total consolidated debt amounted to
So 1873, 37i inclusive Of $l09,0Si in deficiency
bonds aud stocks; the unconsolidated debt was Ie-
ported at $S 961; and the contingent liabilities
on account of railroad Endorsements. Si.705,G0S
No estimate is made for interest on any except the
consolidated debt, which is reported at 81, 10000
The amount of arrearages of interest due on this
part of the debt November L. 1873, was S632. i24,
showing that two years interest was due. part
OF the interest for 1877 and 1879 had been paid
10 the amount of about 81 .O00 that the entire
arrearages included $3.50 900 of interest which ac-
crucd prior to 1877. As near can be gathered
from the various conflicting statements the repud-
alton of South Carolina amounts to about
81 100000, with pretty prospect
that 81 4O00 900 more will be rcpudated eventually
All that has been said and written respecting the
corruption and extravaganza which characterized
| the State Administration of South Carolina from
1869 to 1873 may be true. But one phase of that
disgraceful era seems to be forgotten by those who
denounce So bitterly and justly the men who were
charged with the management of affairs in South
Carolina from sGs to 1873. II is an admitted fact
that many perhaps a MAJORITY of the Legislature IN
each Of the years of corruption and Drodigaly were
densely Ignorant: men whose cupidity was quickly
excited and then ravenOus men who were easily
influenced Tor evil as they might have been for
good. Did the native white Democrats of South
Carolina during that wasteful and corrupt era Use
the influence they possessed in favor Of economy
and honesty. and did they dcpOre the disgrace
which had fallen upon their Statef Not bit of it,
They fairly led the hunt in the for infamy aud
they shared the prey.
General NJ. c. Butler Of South Carolina, now a
Senator of the United States. testified before n
Select Committee of Congress in 1871 in regard to
the Land Commission frauds in that state. Gen
eral Butler in reply to questions said that many Of
the frauds were committed by collision between
the owners Of the land and the State officials and
that the profits were shared by both. l he owners
he said were native South CarOlnIans. lie cOnth-
ned: " III had 900 acres of land to SELL and a
senator would come 10 me and say, | will buy that
If YOU will give me $500 would buy him up as
wonld buy mule" The following questions and
the answers thereto by the same witness, who was
under oath, throw flood Of light upon South Caro-
lima corruption, and show clearly that the chival
responsible for the frauds than the Republican,
were:
o-IIas The impression been made on the public mind
10