The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1886-10-20
THE "XEowEE couRIER's" ERROR COR
RECTED.
Shows that Mach OF the Existing
Public Debt Of the State is for
Bonds Issued In Aid OF Charleston
Forty Years ar0. r. So,

Editor Press and Banner:
Yours Of yesterday, enclosing clipping
from the heolDee Courier, and asking iDfOrDn-
tiOn as TO tile relation Of the State 10 the re-
building OF Charleston In 1888, has been re-
ceived. .r.a.
have not access to more than a limited
supply OF State Acls, and official reports; and
therefore, I cannot refer to as much data as
would like In the examination Of The natter.
You will tiud Act for rebuilding the city OF
Char lesion In Vol. 7, page l56 This Is the Act
that gave origin 10 that part OF the Sta te debt
called Fire Loan Bonds and st 'ck." You
can trace them in the annual reports of
CUmptrOllers ana Treasurers ever since. /
think the Bonds were 5 per cent, and matured
In ISIS. or 80 years after issue. While the
was Issued probably two years later than tho
Bonds. They were issued by the State just us
any other Bonds and stock are sold, the n,pn-
ry loaned to parties In Charleston To rebuild
with, the borrower 10 pay interest to the
state Tor what lie borrowed for q long term,
and finally the principal. OF course The argu-
rnent was, that the interest paid by the bOr-
rover would put the money In the State
the means thus provided 10 pay the interest
OH the Bonds and Stock. And that when all
these loans matured and were paid. II would
provide the State with the amount needed to
ay the principle OF the Bonds and Stock
when they would become due.
have no means OF knowing whether the
State collected all the loans from the Dorrow-
either did not realize enough In this way or
else that she did not so apply IT, Some Il
the Bonds and Stock was doubtless paid, but
In 1871, the last dute | have examined. the
Comptroller reports s77I.jS5.9j OF II still OUT
standing in Its original shape. In the mean
time, n large volume Of its past due Interest
had been funded under the ACT OF 1865, the
out as an interest bearing debt, but not
under the name of Fire Loan. The interest
funded then was probably not far from $780,
700 as II was the interest that became due dur
ing and just after the War, while either
creditors would not receive The Confederate
money or the Stale was unable 10 puy interest
In any funds. The Orr funding Act would
show the exact amount These two amounts
put together are about 94,SA.o(, sum begin
ming to look well up 10 u million. ! do not
know whether it was oil consolidated under
Act of 1873 Or not. 1t was not In act Of 1874 for
some was never conSolidated) that they had
fallen due previously, and the Act OF 1873
made 10 provision for computing interest OIL
them after their maturity, and the holders
Treasurer had no authority by the Act u
compute IT. There WAS then probably
enough interest accrued TO raise the debt to q
million, as the Interest had then run without
years, being about SI7, SO per year. Now, sup
pose they were afterwards funded under the
consolidation Aca of'I3, at 80 per cent on the
dollar, the debt still remains half million
ter the occasion that called 1t into existence.
The Keo1cec Courier says the original amount
was Sl,lD0,0OO. In that he may be correct,
am not In to reey IT RT. Of
lowance, We have paid over tnat amount In
interest on 1t. ant oil "For sweet charity
sake" or course IL Is pity of the people, OF
Charleston. So 1t Is of any body that suffer u
The theory that Bonds can he issued, the
money loaned. interest to stand for interest,
and principal for principal, is plausible, Bpt
in practice, 1t won't work according TO the
theory. When the little loans are paid back
into tile Treasury, the Bonds are not ready for
liquidation. They arc not maturcd Then the
argument turns another corner and says the
loans rs paid In can so 10 sinking fund. But
who has ever seen State preserve intact q
sinking fund? Emergencies nrise, or are
supposed to he on us, and the sinking fund IS
ways poor, and whatever fund Is available IL
Invariably called into service. The evil day
Is pushed forward, and the bonded debts go
on increasing.
but we cannot afford, on anr proposition TO
undertake to make her loss good. Charity
II Salreudy done good past by her. and Will
doubtless do more If needed. If she had used
the excess of her charitable fund rs o loan
and building fund with preference to the
more needy. she could have almost rebuilt
the city with IL In few years. No doubt
them serve the purposes of life and business.
and what more Is really necessary? The
funds on hands will do much Of that for the
real needy. The rich can rebuild for them
selves
You are right to oppose State aid. II the
primaries were not over. 1t would, in my
mind, be u question of sufficient gravity to
submit TO candidates. 1 hope do not feel
unkingly towards any people afflicted as
Charleston Is, but State aid means more
pressing times to us as long as We Hive, and to
to come
] have written hastily. and not used words
and constructions as carefully as / would
have desired, nor have l had the time and
means to examine the matter rs j wish I
could but / feel safe In saying yOu Will fiaq
me substantially correct in the facts.
Yours truly,