Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1892-12-15
REFUND1NG THE, DEBT.

The most important measure
that has been introduced during
the present session Of the Legisla-
ture is the bill for the refunding
Of the State debt. This bill was
sent in by Gov. Tillman himself,
accompanied by a message, on last
Friday. The following is the
message:
The refunding. of the Brown
Consuls which fall due next July
is the most important question
with which the State government
has to deal at this time. As you
know, our predecessors in office
provided for the issue of 4 per
cent bonds to be exchanged for 6
per cents, but up to the end of the
fiscal year, October 31st, only $685.
726 of the fours have been issued
under this act, and our efforts to
place the new bonds in New York
at satisfactory price failed. 1t
is not hard to give the reasons for
this and show what acts of the
State government in the past, and
what men and Interests at this
time, are in combination to pre-
vent the State placing her bonds
at that rate of interest. Suffice it
to say that it cannot be done and
we must meet the emergency that
has arisen by such action as will
maintain our credit and build it
UP till South Carolina can borrow
money at as low rate of interest
as any of her sister States.
The State could have placed the
4 per cent. bonds at par in spite OF
the errors of the past had her own
capitalists lent their aid. We can
place Al without their help if the
General Assembly will provide a
sinking fund with which to begin
the gradual annual payment of the
debt and mortgage the phosphate
beds as collateral.
After a careful Consideration OF
the matteE ia; onsultation with
the State TrsaaaseE and the chair.
man of the finance committee OF
both houses, bill has been pre-
pared, which I submit herewith,
that will enable us to meet our OBJ
legations at maturity, and 80 build
up our credit as to refund the debt
in twenty years at as low rate as
any State can obtain.
The practical result of this
scheme will be:
First. That the interest charges
to be met annually will be, say
$4,000 less, but This sum will not
60 to the reduction of taxes, but
nearly all of it to the payment and
reduction of the debt itself.
Second. That this will, in my
Judgment, enable us in twenty
years to float three or three and
a half bond, 80 that in the long run
the total amount saved will be
more than If we now placed a
forty-fye year 4 per cent. bond.
AS the bill itself will explain
the whole in detail, and the reasons
must appear to any intelligent
mind, I submit it to you without
further argument or comment, and
urge its passage as soon as posi-
BILE.
The first section of this bill
provides that the State Treasurer
shall cause to be prepared q sufi-
cheney of bonds and certificates of
the denominations of $500 and
$1,000, bearing a per cent..inter-
est per annum, to take up the pres
ent outstanding bonds which bear
6 per cent.
Section second provides that
these bonds and certificates ahall
become payable at the end of forty
years, but the State reserves the
right to call them in at the end
of twenty years.
Section third provides for the
cancellation of the old bonds when
surrendered.
Section fourth provides that the
coupons on the Al per cent. issues
shall be receivable for taxes.
Section five provides that the
revenue of the State arising from
royalty on the phosphate beds to
the amount of $37 800 shall semi
annually be set apart as a sinking
fund for the payment of said
bonds and certificates.
Section six provides for the sell
ing by the government of the issue
of bonds herein provided for.
Section seven provides for can
collation..
Section eight provides for the
exchange of the new for the old
bonds.
These bonds are all free from
taxation.
This bill, of which we only give
synopsis here, has been reported
upon favorably by the committee
n eS