The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1879-12-17

NIL IlCNCls Va Via tSrkSh3 tPN'N
the amendment. The bill as it stood
proposed only to do a simple act of jus
tice. 1t proposed to deal justly and
equally with all classes of creditors, and
put holders of valid bonds whose inter-
est had not been paid on account of
doubts regarding them on an equal foot
ing with the holders of similar bonds
who had already received their interest,
their securities having been approved by
the bond commission. The law was
framed in accordance with II decision
of the Supreme Court. The interest had
been paid on those bonds embraced in
Schedule 5 of the report of the bond
commission. Others who, under the de-
cision of the Court, should have benin
Schedule 8, it was now proposed to pay III
terest upon. No fraudulent matter ell
tered into them. The bonds were good
and valid. Could the House make the
distinction in favor of those creditors
who had the good fortune to have their
bonds in Schedule S? There were no
grounds for such a distinction, and II 1t
were made the other creditors would I'M
derstand that they had been unjustly dis
eliminated against, not because of any
shadow Of fault Of their own, but be-
CduSC VI u QlCSllOu VI OllO vi WV 'i'A''
Of tax levy. The credit of the State was
worth far more than that, and gentlemen
could understand the importance OF
maintaining that credit, especially at this
time.
Mr.. Haskell, of Richland, said he was
glad to see that members were disposed
to discuss this question no longer as bond
or anti bond men, but on the common
ground of obedience to the decision OF
the Supreme Court. Now it was merely
a question of what was best for the in-
terest of the State, and he believed that
the better plan was that proposed in the
report of the committee. The committee
had carefully considered the matter, aid
ed by the advice and knowledge OF Col.
Colt, the treasurer, and the comptroller.
The question was whether it would be
hetter to add to the bonded debt of the
State, and 20 on increasing it year after
year, or pay the interest for 1875 and 1873
now, and thus dispose of it. The balance
in the Treasury has been alluded to.
That amounted to only about one-fiith OF
a mill levy. If the interest was funded
1t would make a debt on which interest
would have to be paid for years to come.
Nine mills was only u moderate levy.
Was it wise to reduce the levy below
nine mills now and thereby add to the
bonded debt of the State?
Mr.. j. ]. Hemphill, of Chester, said
that the difference between the two pro-
positions was simply whether the inter-
est already raised to be paid on the for
merly questioned debt of the State and
now in the treasury should be applied as
intended or not. That money belonged
to the holders Of that debt. The ques-
ton was whether they should be kept
out of their money who stood OH the
same footing had obtained theirs without
having TO 90 through the courts. The
plan proposed had been at the sugges-
ton of Col. Colt and the comptroller, and
was conceived on tho hypothesis that 1t
would settle the veXed matters, and
place the valid debt on unquestioned and
az advantageous ground.
Mr.. Blue, of Marion, said if it was
the purpose Of the House to stand by the
decision Of the Supreme Court, the only
thing to be done was to pay the interest
on the valid debt for 1878 and 1879, as
had been provided for. If this were not
done there would inevitably DO a suspi-
cion against the bonds and the credit OF
the State affected. = AS had been said,
such action would be only n of simple
justice. 1t was not, he thought, good
policy to increase tho bonded debt and
PIT Off the evil day. This money would
have to come from the people sooner or
later, and it would be better to pay as
they went than to have a vast accumula-
ton of indebtedness come upon them at
once. He earnestly wished to SEQ the
State again u her former position,
and have her bonds above par. When
in that condition the debt could be fund
cd at four per cent. instead of six per
cent. as now.
Mr.. Brown, of Anderson, said it would
be. exceedingly liberal in the State to say
to these creditors that as their claim had
the /. color of law-not that any moral
obligation to pay them was recognized
but from respect to the law, she would
pay them. Being, however, at present
impoverished and not able to pay, she
would give them bonds that would soon
be worth par. The tendency of all Suites
was not to increase their Indebtedness.
The debts of some were far less than
twenty years age. The property of the
people Of the State would soon increase,
and a less per centage of taxation would
he sufficient to pay the small increase to
the debt caused by the funding Of this
interest. He thought that, in the present
impoverished condition Of the people, it
would be wrong to impose upon them
the additional burden that would be en-
tailed by the payment Of this interest.
Mr.. Seegers, of Richland, said the only
question regarding the proposed funding
Of the interest was the one as to the prin-
ciple of the thing. Was that right? II
he had owed a man $500 for two years,
and his creditor came for his interest,
would it be right. for him to tender n due
bill, with the money in his pocket? 1t
would be unwise, he said, to leave 0 debt
for their children to pay. Let them
liuuidate the just claim now when they
had the money in the treasury.
Mr.. Murray, of Anderson, said the
simple question was whether the State
was able to pay this interest now, and,
if able, was 1t wise to do so. The ways
and means committee itself had made a
distinction in its bill, for they funded the
unuuestioncd debt for the years 1877 and
1875. He only wished to extend the
funding they had begun one year further,
to 1879. The State would be telling her
creditors that she recognized her claims,
and proposed to pay them some day, but
was unable to pay cash down. The
cfeQlC Oh Llle State NOulu iot ouhpA ~
that.
MIR. tombstone, of Newbcrry, said that
every consideration, both of policy and
honor, demanded that this interest
should be paid Immediately. The State
went into the f%ightagainst the fraudulent
bonds, as he understood it, on principle,
regardless of the amount to be lost or
won. Failure to pay this interest would
be dishonoring the Court, to whose ar
bitrament the case was left, and the State
and the House.
MI. Buist, of Charleston, said it gave
him pleasure t see the spirit manifested
by the House. All were evidently dis
posed to sustain the previous action of
the General Assembly, in (which it had
said that so soon as the valid debt had
been decided upon provision should be
made for the payment of interest: II
was alike q question OF honor and policy.
LIE t the appropriations be passed now to
meet the interest squarely, and the peo-
ple would not have to shudder next
year over an enormous levy to meet
their debts with.
Mr.. r. r. Hemphill, of Abbeville, said
that he viewed the matter from the stand
of the law. He believed that under the
law the Legislature vas bound to meet
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