Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1883-12-06
State Affairs.
THE GOVERNORS MESSAGE.
THE STATE OF SOUTH CAROLINA, }
ExEcITTJyE CHAMBER.

THE STATE OF SOUTH CAROLINA,
EXECUTIVE CHAMBER, :
COLUMBIA, s. c., November q, 1888.
Gentlemen Of the General assembly:
In the performance Of my official duty,
have the honor to transmit the following
Message:
THE PUBLIC DEBT.
At the date of the last report the debt OF
the State was s6,57l, ,s25. During the last
fiscal year a few bonds were issued under
special Acts, and the sinking fund commits
sion purchased and cancelled $41 ,207.67 OF
deficiency bonds, thus reducing the amount
of the debt to Sc, ,531, ,290.63. There has been
also a slight reduction of this amount by
the gradual exchange of Green for Brown
consols, and the elimination of the lndiyid-
uality in the former class OF bonds. The
estimated invalidity of the Green consols
still outstanding is about - per cent. ;. Inc
comptroller general reports that very little
progress has been made in funding the old
bonds under the Act of 1873 and its amend
ments This is to be attributed to one of
of two causes either large amounts of these
bonds have been destroyed, or the invalid
ity in those unfunded is much greater
than has been estimated. In either case
the debt cannot exceed the amount now
reported, and it will probably fall much be-
low CQdG dIlOlut. Lie WHolC uOoo uoe@Ao
interest at six per cent. AS the interest be-
comes due, it is paid promptly IN New York,
Charleston and Columbia. The scrip of the
Agricultural Colleges, amounting to Sl9l, )
800, is a permanent investment. The de-
ficiency bonds and stocks, amounting to
S461, ,456.29 mature in 1888; the consols,
amounting to Sj,s7S,034, in 1898. The State
securities sell above par, the premium being
limited only by the short period which the
debt has to run before maturity. There
is no floating debt the revenues of the
State are sufficient to meet the appropria-
tions, and all valid claims are met promptly
upon presentation. With a continuance of
the present management of the finances of
the State, the debt, when it natures, can be
refunded at lower rate of interest.
REVENUES AND EXPENSES.
The comptroller general estimates that it
will REQUIRE S34S, ,235 to meet the ordinary
expenses of the Government during the
present fiscal year. To this amount must be
added 1891 1878 for interest on the public
debt, making $40, ,113. The proceeds of
the phosphate royalty and the probable sur
plus in the treasury, estimated at $l97 ,251 !,
will reduce the amount to $542, 1862, which
can be raised by levy of four mills.
For the last three years the Legislature
has authorized temporary loans to meet the
interest on the State debt as it fell due.
This course has been rendered necessary by
the fact that the interest becomes due before
the collection of taxes is completed. The
banks of deposit have permitted Over-dratts,
charging interest only from the dates of the
drafts. This liberal action has enabled the
State treasurer, at small expense, to meet
the interest on the debt as it has fallen due.
A financial panic would render it difficult,
and might render it impossible to obtain
hop hn
meet, promptly, the interest on the debt.
Such result would be disastrous to the cred
it of the State, and all chance of its occur
renee should be avoided if possible. This
matter has been called to your attention
heretofore, but its importance makes it prop
er that. ! should recur to it. If the tax levy
is increased sufficiently to raise the amount
required to pay the interest on the debt, and
the first semi-annual payment of taxes is
made compulsory, the State treasury will
be relieved from further dependence on the
banks, and the paying of the interest made
certain beyond all contingencies. Until this
is done, it will continue to be necessary to
authorize temporary loans to meet the in
terest on the debt. Another plan which is
worthy of consideration would be to levy a
small additional tax each year for this Spe-
cial purpose until sufficient surplus is ac-
cumulated to meet the interest for one year.
RETURNS OF PROPERTY.
The amount of property returned for tax
alton in 1882 was Sl45, ,442, ,292. The amount
returned for 1883 is: .,.
Real Estate. 81 l3l, ,4Ol
Personal property ty.....".............. 249 9S9
Railroad property lo,ZZ1,9o4
Total $3.50 COS, ,3O4
This is an increase in one year of S., 167, )
012. Encouraging as this increase is, it is
doubtful whether the property returned is
not assessed below its value, and it is certain
that much of the property in the State liable
for taxation, is not returned at all. The
acknowledgement estimates that at least
100000 acres of land in this State liable
for taxes, do not appear upon the tax returns.
The secretary of State, in his report to the
commissioners of the sinking fund, calls at
tentiOn to the fact that in Richland county
there are about 10000 acres of land not re-
turned for taxation. The same IS doubtless
true, to greater or less extent, of all the
counties. To find and locate the land not
returned for taxation, it would be necessary
to cause full surveys of the State to be made.
The increased revenues from these lands
would more than repay the cost of the sur
veys.
TAX LAWS.
Experience has shown that in many re-
SpectS our tax laws are defective. The bur-
.<den of taxation is made to weigh unequally,
because both of want of uniformity in the
laws and Of effectiveness in their execution.
The present system Of assessment and taxa
tion is cumbersome and not suited to our
people. Itshould be erevised and simplitied.
AS one of the commissioners of the sinking
fund, have had the opportunity to observe
the operation of the laws governing what
are known as forfeited lands, and that OBJ
servation has shown methat those laws offer
special inducements to owners of land not
to pay taxes. The reports Of the secretary
of State show each year large increase in
the amount of land held nominally by the
commissioner of the sinking fund for nom
payment of taxes. In the large majority of
cases, by reason of the difficulties in the
way of the enforcement of the law, the own
ers retain possession of the lands, all the
benefits of which they enjoy without pay
ing taxes.
The report of the comptroller general,
with the full and carefully compiled tables,
furnishes much valuable information on our
present system of taxation. This report,
containing as it does the results of large eX-
perience and patient research, should re-
ceive, as it deserves, your careful cOnsidera-
ton. would suggest for your consideration
the proprety of the creation by the General
Assembly of a commission to revise our tax
laws. 1t will be difficult, if not impossible,
to correct the evils in the present system by
amendments to the law, and doubt wheth-
er in the time usually allowed for the ses-
sion of the General Assembly this subject
could receive the full investigation which
its Importance demands. If the revision of
the tax laws is isundertaken, it should he done
IL.