The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1889-12-04

TOTAL .'..'.S'too"'o-' w.
The blue bonds and stocks were issued un.
der the Act Of 1857, and run forty years rom
July l, 1888, with Interest at "A per cent; palo
semi-annually. on January !, and July l.
The Siil,629 q OF the old debt, with accrued
interest Is now fundable under tne Act OF
1873, and the So 9I3,226 96 Of consolidated ooni
and stocks are redeemable in 1873.
The whole OF the brown consol STOCK ana
bonds maturing on the l$t July, 1913, ana Goa.
slitulins. as they do, fully twelve-tnirteensns ,
ders IL not only prudent but absolutely nece.-
sary that timely provision he made oy your
honorable bodies for the safe and certain re.
funding Of this debt, amounting to about SIX
millions OF dollars. Negotiations involving
SO large an amount cannot, with Que Regard
TO safety, be left TO the risks and chances Oh
few BRIEF mouths, as WAS the case IN Tue re-
funding OF the deficiency bonds anu STOCKS spI. 10
that a lust, reasonable and practical scheme
for the replacing OF this debt be devised, ana
that ample time be allowed for It's prompt,
equitable and faithful execution.
Agreeing fully In these views, ana oelng
keenly alive to the imperative necessity thaI
Immediate steps be taken looking 10 thls emu,
the State treasurer, after conferences Win
prominent bankers and other leading hnan-
cial authorities In the State. has placed before
me the following communications, embracing
a plan OF settlement that meets my nearly
approval, which | respectfully submit 1or
EXECUTIVE DEPARTMENT.,
OFFICE OF STATE TREASURER,
COLUMBIA, 5. e., November y, 1881.
To his EXcellency Governor j. i. Richnrd'
son-Sir: AS the debt or thls State, knoWn
millions of dollars, aud bearing per cent IN
terest per annuni, payable semi-annua'ly,
natures on July !, 1893, 1t Is prudent 10 bcSln
at ;tp early day To provide ior tne settishem, en-
OF said debt in n way that will he just 10 the
holders thereof and creditable to the state,
After consultation will some or the leauins
0nancicrs OF the state, am on tne oplnioll
that the scheme rs set forth oeloW 10 practtch.
BILE, and therefore present the same Tor your
The General Assembly should at the session
or lSS9 pass an Act authorizing the issuing oi
bonds and stock, interchangeable one lot LGt
other as Is the case with the brown cohSOl
bearing per cent interest per annum. paya.
BILE semi-annually In such amount as can De
exchanged for brown cOnsolS, said bonus anu
stock to be issued during the year lS9o ana 10
mature in fifty years from that time, which
will be In 1910.
Asnn induce,nent to the holders OF the
brown consos To exchange them for the per
cent bonds, let the treasurer De tutnorlHSI ~
pay the difference In Interest from Inc dhtS
OF eXcnuLse up to date Of maturity Oh the
brown consos, which is July, 1898, In cash.
And if the new bonds cannot be exchanged
at par, then authorize them to be eXchanSen
seven dollars per hundred. The difference be-
tween the sum for which the new bonds are
sold and the par value should also be paid In
cash from fund appropriated for that pur-
pose.
AS 1t would make the new bonds and stock
more desirable us in Investments If prompt ana
certain payment Of the Interest was assured.
would recommend that in addition to the
guarantee now given by the state 10 secure
payment of the principal and Interest OF The
brown conSols, that the phosphate royalty re-
.elved by the State be pledged to and set apart
or that purpose also.
The advantages OF beginning at once TO pro-
vide for the reIunding or the brown consols
ire so apparent as to need no comment
And As 10 the expense, If all the outSHnd-
ng brown consoS were exchanged before
July, 1888, and the per cent bonds ana STOCKS
we're sold at 81 cents for each dollars worth.
he cost 10 the State would be about two nun
lred thousand dollars. but after July l, leJ',
he saving on the interest account would be
!nnutn.
In support OF the opinion that per cent
,onds and stocks could be sold By this state
It about par, would call your attention 10
he fact that North Carolina per cent oonds,
unning thirty years, are worth SUI per nun
hirty years from date of Issuing, sold recent.
y In New York at premium OF ana l-lo
'er cent. Georgia ~ bonds, thirty years, are
uoted at l5al7 per cent premium, ana we
.now that the credit of this State should be
y good as either Of the above named.
Respectfully submitted,
f. 4. MCIYER, State Treasurer.
The additional guarantee suggested ABOVE
or the prompt and faithful payment OF tne
and interest Of the new securities,
H.: the pledging OF the phosphate royalty OF ;
he State. Is O novel and happy featureIcal-
ulated, ! think, to add immensely TO ,thelr