The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1879-01-08

This act rejects s, 965 900 of the Conversion
bonds as being illegal and void, and provides
for the funding at fifty cents on the dollar OF
the entire remainder of the outstanding
bonds and certificates Of stock. and all out
standing coupons maturing and to mature on
the LIST day OF January lS74.
To preclude understanding the amount
of outstanding bonds and certificates Of stock
issued under each act arc carefully given In
figures, and conform exactly to the report Of
the treasure: Of date October ID, 1873. ,,
BY ~thisrcport II appears that the entire debt
of the State, evidenced by bonds and certit.
Gates of stock, W. -
The act declared oid..""..w"... 5,965,OW W
Leaving n balance of"";"".".".s 9,SsG,6H 81
Which funded us directed at
MS the Ultimate Consolidated debt Of the
State, being less than one.third OF the origi:
nal amount. and much less than the Bond
debt and liabilities Of the State Mt the date o.
was put in operation. The funding began,
but had not proceeded far when n committee
was appointed by the Legislature, Of which
Senator r. &. Dunn was chairman" ito ascer.
tam what bonds Of the State have been fund
cd under the act to reduce the volume OF tho
public debt. and what interest coupons have
mittce proceeded to New York, and examin,
ed the Financial Agent and his books, and
gathered from these sources all available tes'
tImony. The full and searching report o.
this committee is to be found In r. and X.
1915. In 1t are reiterated the substantial OBJ
Jections rs to over-issue, irregular hypntheca
ton, &C., of bonds and funding OF coupons
now raised, and tho committee, we are told
urged the encouragement to AXE steps 10
enjoin the treasurer and arrest the work.
The Legislature took no steps to interfere
and the encouragement refused to do sc
and In his annual report gave as MS chieI
reason for declining, to act, that the matters
,,o~a concluded Nv f1,n 1nniclnn IN Morton
Bliss & Co. In March, 1875, the Legislatureap
pointed IL committee to prepare on address to
the Governor for the removal OF Treasurer
Cardozo for violating the Consolidation a. ;.t
were that he had issued Consolidation bonds
in exchange for n large amount OF bonds
which hfa been issued in excess OF the mum.
Der authorizcd by. the, various acts; and had
issued Consolidation bonds In exchange for O
large number OF coupons Of bonds maturing
before July |, ISL, and OF others which haG
been clipped from the bonds as they passed
through the hands OF the financial agent, and
before the bonds were put upon the market
sei. isSi.5, pages 1881.
Cardozo was heard through able counsel
viz; Hon, w. Porter, OF Charleston C. D
Melton, OF Columbia, and the Hon, Leroy F,
Youmans, the present attorncy-general o.
the State. The whole subject was by them
of the charges OF violating the net; the ad'
dress failed. the intelligent white Democrats
almost tofa man sustaining his action. and he
was directed to proceed in his work OF fund
ing. He did proceed and funded a much
greater number after than be had done before,
the public generally supp0sing that the act
was thus established as q final adjustment OF
the debt.
II BOND COMMISSION ANTICIPATED.
The validity Of the bonds which he issued
in lieu Of the securities then assailed Is now
put in issue upon objections TO the surren'
! dered securities which were then urged be.
fore the Legislature, and overruled by that
body, and chiefly by the vote OF the real rep
fact that the arduous labors of the Bond Com.
mission OF six months duration, have brought
to light few new facts touching the bond
debt OF the State. In the report OF the com.
mittce OF 1871, Senator Dunn's committee OF
1874, and the proceedings In the trial OF Car.
doZo, nearly all the Irregularities arc charged
which are preferred BY the Bond Commission.
The whole ground Is covered II we add there
to the record in Morton. Bliss g. 20. The re-
suit Of much debate in the Legislature upon
the report of the Bond Commission was the
reference of the vcXed question Of the validi-
ty Of the Consolidated bonds to this
II oUR OF CLAIMS.
BY voluntarily submitting the question Of
har liability to the courts, the State has re-
iceted the idca Of reputation. and declared
honorable course could have been adopted.
This narrative OF legislation brings us to
the questions at issue.
In the outset we remark that in the discus
sion of these questions we arc bound tonc-
cept the Constitution Of 1865 as the funda-
mental laws Of the land, Just as much SO as
lutures from 1865 to 1876 as binding upon US
as were acts prior TO the war, subject, and
only subject, to the well established rules of
construction and Interpretation.
legal opinion to hold that we have been liv-
ing under Il usurpatiOn, and hence arc ut lib
erty to abide by such laws OF that period as
arc pleasing. and to disregard such asare obi
Gus. 1t matters not how republican, how
radical, how ignorant and how corrupt may
have been the Legislatures from 1865 to 1876
inclusive, nevertheless the laws which they
placed upon the Statute books arc none the
less binding upon us until repealed. and
rights acquired under them arc as much TO
be protected by courts US rights acquired un-
S Would dr be- fu lsa's1%slHaii N wfon G,n and o fruitfui
of ndeScribablc confusion and evil. Iegis-
latures can make laws and repeal statutes.
Courts can only administer them us they are,
saving only the right to Interpret them and
TO declare their binding efficacy.
THE CONSOLIDATED ACT IS CONSTITUTIONAL.
Nor are we called upon to determine the
constitutionality OF the C3nsolidation net;
The Legislature has accepted 1t AS valid ana
binding, and the treasurer of the state Is still
engaged in carrying out It's provisions. The
State Is unwilling to surrender It's marked
! advantages. W z are only TclulTCu ~ uclCI-
mine the validity of certain classes of Consol-
idatiOn bonds which are assaulted, not on
account OF the supposed uncOnStitutionality
of the act, but because 1t Is alleged that these
bonds We're issued In exchange for vouchers
not enumerated in the act, or not designed by
1t TO DO consolidated. We have no hesitation
In saying, however, that the net is constitu-
tionul. ii does not pretend to create Il debt,
but ITO reduce the volume Of the public
debt" 1t Is u settlement and adjustment of
the debt of the State, and this being its. intcn-
tion, 1t was regularly enacted.
Under the joint resolution OF March p,
1873, establishing this Court, Its jurisdiction
is ITO hear and determine any case or cases
made up or brought To test, the validity OF
any Of the Consolidation bonds, coupons and
certificates Of stock, or any OF the various
classes of them mentioned In the report of
the Bond Commission as resting on vouchers
not Issued in accordance with law and au-
thorized to be consolidated" by the Console
dation act of December q, 1873, and also as
notissucd in accordance with law. and fur
Their designated and described in Schedule 6
Of the said report
Section 0 provides that cases be made up
ITO test the validity OF said Consolidated
| bonds and coupons and certificates OF stock
mentioned in said Schedule q, bringing before
the Court the various classes Of vouchers
| which. 1t is alleged In the report of the said
commission, impair the validity OF the said
Consolidated bonds, coupons or certificates OF
stock or any OF them.'
The Consolidation Act of December p,
1878, is drawn with care, 1t specifies the
various classes of bonds to be funded and the
amounts outstanding, and designates the
bonds which are void and not to be iunded.
The valid arc separated from the void: The
| question of the nlidityo of outstanding bonds
is here definitely settled by the Legislature.
No discretion Is left to the treasurer, but his
lduttes are ministerial and compulsory. The
act was passed by the Legislature deliberately
and with full light before them. Before
them were spread the various acts under
which the bonds were issued the Journals OF
the Legislature. the reports OF the treasurer.