The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1892-06-22
\ BRILLIANT SCHEME.
CO.. i. Il. I.laLurate- His SuD-Treasury Plan
10 i'a: tie State Debt and Run the
Guvcru:nent Without TaNe-.

-! /
l.. ot the report Of the Comptroller
General 70 W. T. &. Bates, State Treas
urer. states that the principal Of the
funded debt OF the State on the 3lst oi
October, 1881, was ST, 6,374, ,S30.62 and ;he
piircioal Of the unfunded debt OF the
State Was S:,S77, 4:325 -
On pa"- Is Of the same report 1t Is
stated that Brown coIisolS, due July,
1893, amount to- s., ,393, ,G7i.7o.
Green cnnSuls, due July, 1898, amount
to <5J.N;9.5G. Total, due July, l>"},
$3,gJ22, ,9lG.20.
These bonds must be refunded or
paid on or before July, lS9%, or the State
will be discreditcd. The Legislature in
1SSJ aud 1890, by acts authorized
the rei'unding of this debt INTO t per
cent. bonds.
Mr.. W.T.. G. Bates, State Treasurer,
iii his report 10 the last Legislature
says: II complied with instruction
given me in the act"
Until July, 1892, this office is re-
stricled to the system Of exchanging
the new per cent. Brown consois,
but little progress has been made IN
exchanging. Only S29, ,3oG.79 Of new t
per cents. have been exchanged for an
equal amount Of Brown cOnsols. The
above figures and facts show that the
failure to make the exchange is
is complete. The time fer the State to
meet her OF cations is near at hand.
The credit Of the State is in eminent
peril. What are we to do' Let each
citizen of the State think we'll on it.
Let us counsel frankly and act wisely
before it is too late. The writer sug-
gests the following solution of the prob
,em.
The National Bank circulation on
the 18th of September, 1891 was Sl3l,-
;:4:33, 3;::33 &0l 20. How did they getit: by the
deposit CT Sl50,033, 10000 registered
bonds Of the United States with the
comptroller of the currency. All these
bonds and circulation are based on the
credit of. the government. Let South
Carolina deposit her bonds-now inter
est bearing with the comptroller Of the
currency. and take out $40 ,oOo, 900 legal
tenders paying only for the paper and
printing. Nothing more.
These legal tenders will be based on
the entire property Of the State assessed
at $lGS, ,G79 and endorsed aby the
United States, whose wealth is increas-
ing at the rate of $3.50: :u00, 600 a month.
The security will be perfect. Let these
$40, O,0U0, 900 be put in the State Treasury.
First let the State debt be paid which
State Treasurer Bates states in his re-
port to the Comptroller General, page
l72, aggregated on the 3lst Of October,
1891, the sum Of Sc, ,962 239.S+.
That will save in round numbers each
Year $400, 900 interest money.
The total expenditures Of the State
Government ending October 3lst, 1891,
was 81 ,0S7 ,GSl.S9, as shown by the re-
port of the Comptroller General, page
$50.
After paying the State debt 81, ,0O0,-
600 in round numbers will be left in the
State Treasury. Let one-half Of this,
SIG. $40, 900, be loaned to the people on
real estate at ) per cent. per annum,
properly restricted and secured for twen-
ty years, theinterest and one-twentieth
Of the principal to be paid into the
Treasury each year. This amount will
be in circulation all the time. AS one
person pays it in the Treasury another
will borrow it. The State will get an
nually about $500, ,00G in interest on this
sum. Let the other half, SIG, ,390, 900, be
loaned on non-perishable products at 3
per cent. for one year properly restricted
and secured. That will give the sys-
tenn IN elastic power that will prevent
the contraction and expansion Of the
currency by any combination Of men.
It will bring into the Treasury $500, 600
interest money-total interest money
Sl,0O0,000.
The total expenditures OF the State
Government ending 3lst Of October,
1891. was $l,US7, 50. This includes
the interest on the public debt. 10
meet the expenditures Of the State
Government the people are annually
! taxed for what is needed. Take S4W',
900 from S1,OS7, ,0Sl. 50, which Will be
saved when the public debt is paid and
we will have :GS7 ,0S1.S9 as the eXpen-
ses of the State Government. 70 meet
| it there will be 81 600, 900 interest
money in the Treasury. a surplus OF
| S312.9lS.1l. Allowing S76,G'D to op-
/ crate the State Treasury with an agency
! in every county there will bea clear sur
plus OF ::.%&&.GlS.lI il The treasury
which can lie applied to education oi
the people. The above figures ano
facts are incontrovertibic and the con
clus ions are Irresistible. If the system
OF Finance proposed is adopted we vii
enjoy the following results: No more
taxes will he collected from the people
to meet the expenses OF the State Coy
ernment.
There will Ue no use for Auditor:
and Treasures. Those ci1ices will bS
abolished and salaries saved. The III
tereSt Oh money will be fixed at ) pei
cent. per annum. Instead OF its going
into the Golfers Of ihanlers it will GO
into the treasury Of The people arc
uSe! for their benefit. Wien the sys
ten is established the per capita circu
Iatinn can be fixed and the money Is
trt