The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1892-11-02
.ae gerala sud- Uews.
ABOUT TIE BONDS.

Gov, Tiliraan Not 20 Blame for his Failure
In New York-Wlli He Be Able to
Fund Them IT -Four Per Cent?
What Einsncier Has to.Say
Of the Situation.
The Augusta Chronicle gives the
following extract from a private let
ter.
The official presence in New YORK
for some days, with the declared pur-
p,se of negotiating for the refundlng
of the State debt, and the apparent
failure of these efforts, invite some in
quiry to this very important public
question. In referring to the pubic
obligations of South Carolina issued
for the Blue Ridge road subscription,
for the new State capitol, in those
days of South Carolina when the State
credit was high in London, we find
Der cent. the lowest rate then avail
able. During the Hampton debt SET
Element again we find 6 per cent. the
interest rate.
The very small relative debt OF the
State in 1s76-s0 caused the Brown
bonds to command premium, and
suggested to the then State authorities
the rsfunding of the 100000 falling
due in 1883, at lower rate than 6 per
cent. The wisest members OF the
finance committee advocated per
cent. for this new loan, but majority
adopted the II per cent figures. Now,
with what result? It was before the
farmers movement began it was IN a
normal condition Of State affairs; 1t
was in easy finance times. The loan
dragged-it was not promptly taken,
and it is q notorious fact that but for
the active cooperation OF banks and
bankers to save the State from failure
this small sum of s400, 900 would not
have been placed.
There is such thing as color-biind-
ness in finance, aud this must have
been the condition when in the face of
this plain warning s6,00O,00o of debt
was sought to be refunded at 4 per
cent, but that is just what has been
done.
The attempt to carry out this arbi-
tsry law has substantially failed, and
failure ought to have been expected at
this very low rate. These are the
point3 Of view from which to regard
the State debt.
Flrst-It is Largely home debt, that
is, it is owned to the extent OF three
fourths by lthe people of South Caro-
lima, in trust estates of all classes and
kinds, and has been the preference Of
all small investors. Now then these
owners of four and a half millions OF
this debt held at home cannot afford
to lend the State the money at 4 per
cent. when money all around is worth
from per cent. to 10 per cent.
Second-When you go to the money
centres of the country and offer 4 per
cent loan, then you invite investiga-
ton into past debt matters, and from
Lombard and Wall streets emerge Bit
ter complaint Of injustice to former
holders Of State securities, and unfor-
tunately there Is truth in these COM
plants.
Now, the Tillman government is not
in any way responsible for these ante
eedant conditions, or for the flour per
cent" refunding act. Nothing they
can say or do, will alter many condi-
tions at.home, or alter the awkard fact,
for instance, that bonds now in New
York, signed by Gov. Hampton, have
been repndiated, principal and interest,
for fifteen years.
Gov. Tillman is not, and cannot be
held responsible for failure to do an i'm
possible thing, When Georgia wanted
to fund her debt, she invited bids from
money lenders, and received variety
Of offers, and secured 81 per cent.
rate. South Carolina says: Stand
and deliver at 4 per cent. 1t was an
unbusinesslike, silly piece of legisla-
ton, and should have been recalled in
December, 1890.
Out in the markets of the world
there is a homely adage: ''Tbe price
Of anything is just exactly what twill
bring" You might as well fix the
price of cotton at 12 cents, as to arbi-
trsrily tx low rate ofinterest on q
State bond by statute.
A committee to consist Of the Gov
ernor, Comptroller, Treasurer and two
citizens, TO invite bids, should be
created by the legislature, and by hav-
ing the rates Of interest fixed as in the
length Of years the bond has to run.
Say, st per cent, forty years; Al per
cent, thirty years, et". You will in
vite capital to take their choice, and
will assuredly make an advantageous
settlement.