Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1879-02-20
AN INTERESTING STATEMENT.

to the editor of the Anderson Intelkgencer,
in which he gives history of the claim now
before Congress for reimbursement of money
advanced to the general government in 1872.
His statement of the matter is as follows:
After the revolution of 1776, the general
government was barely able to pay current
expenses, and hesitated about engaging in war
with Great Britain because of the lack of
money. At once the then independent and
wealthy States came forward and patriotically
loaned all the money the government wanted.
Maine, Massachusetts, New York, Pennsyl-
vania, Maryland, city of Baltimore, Della:
ware, Virginia and South Carolina, advanced
all the needed money. A few years after the
war of 1872, Maryland applied to Congress
for the payment Of the money advanced.
About 1920 Congress authorized the payment
of the principal, but said nothing about in
terest. In 1929 she again applied for the in
terest, and bill passed both houses of Con-
gress ordering the interest Of the debt, together
with the simple interest that had accrued
upon that interest to be paid.
President jackson vetoed this bill, because
it was contrary to the usual method of set.
tling claims against the United States, to wit {:
The United States usually paid her debts then
in installments, and always applied the pay
ment to the principal, and after that was liqui.
dated, then computed interest due herself for
money paid on the principal, deducted this
amount from the interest that had accumula-
ted upon the principal, and paid the balance,
not allowing the interest due the creditor to
draw any interest at all. Really this was q
novel method of paying debts, but it was
Jacksonian, I suppose, and if adopted now
in the settlement of State debts would-well,
you know the balance. s.- 80 ..a -
Maryland persisted, however, until she f.
nally got her money. III
About 1856 an effort was made to settle
these accounts with the various States, and
and the Comptroller General of South Caro-
lima reported to the Governor of South Caro-.
lima, that the novel method of computing in
terest and paying debts by the treasury Of
the United States, would deprive South Caro-
lima of $4,000 due as accumulated interest.
In 1858 the State of South Carolina again
applied to the general government for set
tlement Of this claim, and in her petition pro-
tested against the loss of interest. The petit
tion was presented in the Senate and referred
to the committee on claims, Of which COM
mittee Mr.. Iverson, of Georgia, was chairman.
That committee, in investigating this matter,
decided it was not private claim of South
Carolina, but that to meet the question fully,
general law must be passed covering all the
pertinent cases. Mr.. Iverson presented such
bill, which passed the Senate by a very
large majority, strange to say, the most active
opponent being Mr.. Hunter, of Virginia,
whose State was then advocating her claim of
more than $1,0Oo,000. He contended that
these loans had been closed out as donations,
&C., and should not be opened up again as
new claims upon the general government
When this bill went to the House, it was
lost by very close vote. Some Of the ad-
vocates of the payment Of these honest debts
actually voted against the bill because of the
then scant treasury Of the general govern
ment
In 1870, Maine and Massachusetts made
application to Congress for return of their
loan, and it was accorded them, the Treasurer
being ordered to pay over 100000 to these
two States, which he did.
In 1875 the Legislature OF Virginia passed
joint resolution instructing her two agents
here, (whom she had appointed in 1860 to
prosecute this claim against the government
to intercede with her Senators and Represen-
tatives to attempt to recover this loan. For
this reason Mr.. Hunton, in November, 1875,
introduced "a bill to provide for the recon-
putation of the accounts between the United
States and the several States, growing out Of
moneys expended by said States in the war Of
1872" And this bill was referred as above
reported.
-, 1 think you will agree with me that the
history of this whole matter is interesting
reading, and worthy the thought of our peo-
pie. Whether we will get credit for the
amount due us am unable to state, but that
it is an amount worth contepding for, you will
not doubt, when tell you that South Caro-
lima loaned the government in 1872 such an
amount, that if it were all paid to-day, would
be, perhaps, 100000. The amount due Vir-
ginia is over 100000; Delaware, $40, 1000;
New York, $4,000; Pennsylvania, $685.
900, and the city of Baltimore, $25,0OO.
Your obedient servant,
..... ID WYATT AIKEN