The news and herald. (Winnsboro, S.C.) 1877-1900, 1879-01-04
Getting Into Bad 0dor, and It's Con-
sequences.

sequences.
The Legislature at its last session
applied to tho payment of interest on
tho recognized debt, a portion of the
funds that had been set apart in the
treasury to await the decision Of the
Court on tn, disputed bonds. At the
time a ychemont but futile protest was
raised. AS was predicted, Judge
Bryan has granted q temporary i'll
junction restraining tn. treasurer
from divcriiny any portion Of this
money from its original purpose,
pending Il final decision by Judge
Bond in the spring. or course, the
interest goes by default, and The
"bloats' receive ''anothcr staggering
blow" which means that the State
credit is hardly as good as it was
whom Chamberlain ruled the roost.
This default will make Northern
capitalists more chary than ever OF
lending any money TO South Carolina
merchants to let out on liens To starry
ing farmers. 1t was argued with
great vch ,mcnco and rhetorical lour-
ish in the Legislature that to have no
credit woIll be an incalcy liable
blessing. Wnero State or an indi-
vilual is wealthy, SO that unlimited
credit IS but II temptation 10 cX'ravu-
gancc and p"odiyality, this PROPOSE
ton may be true enough. Bat where
poor devil begins thu year with not
Il red cent in his pocket and not II
dust Of meal or llouc in his house, he
is compelled to have credit to save
him from the alternative Of stealing
or starvation. a State is an aggrc-
CATION Of individuals, and The Statc's
credit must be better thln Individual
credit. When The forncr becomes
zero, the latter requires a minus sign
to express it. Those who have tried
to borrow for the ensuing year have
disco Jcrcd that the want ofconiidrncc
in all Southern securities has render
Cd it almost impossible to obtain
advances from tho great commercial
centres. They are told that money
Shil NO iit'N 1t u ~" rue Vi interest
on Getty acccptanccs," but not other
wiso. The borrower must pledge
bonds and stocks having a stable
value and'instantly convertible into
currency. What paper can South
Carolinians offer? Stocks Of bank
rupt railroads. State bonds whose
coupons arc dishonorcd. Old claims
that aro scarccly worth the paper they
arc printed on, or mortgages on land
which when put up at auction will
scarcely pay the costs of foreclosure.
All these "creaits" flow from ;hc same
source, and if the fountain be poison
cd the whole stream is polluted. The
failure Of q State To meet its oblira-
tions is construed by the world to
mean that its citizens arc either too
poor or too moan to pay thcir de BITS,
in either Of which cases thcy arc
debtors to be Stunned. Hence the
reluctance to lend to the citizens of
the State i'll their private capacity.
Let the State bravely pay its way
along, and the confidence inspired in
public credit will react with great
benefit upon the credit Of private
individuals.
Lett be remembered that we arc
not just now speaking Of the disputed
debt. The failure to pay the interest
on tho bonds recognized by everyone
to DO valid, just and binding deals
the last blow. It is idle to urge that
provision was made to meet this
interest. Tho money thus diverted
was paid into the treasury for the
express purpose Of meeting the inter
set on the disputed debt if the court
decided it valid. This was the COM
promise made in 1877 after heated
discussion. 1t was accepted as a
proof that tho State intended to act
fairly in the matter. Every bond
holder could go to tho treasury and
500 tho money waiting for him SO
soon as he could show that it was
Justly due him. But after the violent
talk frcpndiation, when the creditor
saw this money diverted to other
uses, and reflected, from the temper
Of tho Legislature, how small the
chance of ever obtaining another levy
would be, he naturally bctook himself
to the courts and sued for all injunc.
ton. In divcrting this money the
State yiOIotcI on o,.,,,,>,o.,. =,