The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1897-03-24
LOANS TO COUNTIES.
AFTER THE FUNDS OF THE STATE
SINKING FUND.

| New Act Construed-Several Counties Ap
ply For Various Sums-The Text of tn.
Act-A Coming Meeting.
COLUMBIA, March 20.-There were
but few measures introduced at the
last session of the general assembly
which caused more thoughtful discus
sion than that intended to allow
the funds of the sinking fund com
mission to be loaned to the several
counties of the State. Many possibl
dangers were pointed out at the tt me
but the bill was passed and became an
act, being approved on Feb. IS. II
bee omes effective on the 20th day
thereafter. And now the subsequent
proceedings are interesting the State
and county officials. Already several
counties have made applications to
the sinking fund commission for loans
under the act.
The act reads as follows;
An act requiring the sinking fund
commissioners to lend funds to the
several county boards of commits
sioners of the State for the use of
their counties, in pre- ference to lend
ing same to other applicants for
same funds.
Section 1. Be it enacted by the gen.
| eral assembly of the State of South
Carolina, that the sinking fund COM
mission is hereby authorized and re-
quired, when in the judgment of the
said commissioners of the sinking
fund valid bonds of the State are not
offered or obtainable at reasonable
price, to lend the money of the sink
ing fund commission both ''cumula-
tive and ordinary" for period Of one
year, at rate o. interest OF per cent.
per annum.
Sec. 3. That said loan shall be made
by said commission upon the valid
securities of the several States of the
United States, giving preference there
to, or upon the note of the county
treasurer and county supervisor Of
any of the counties of this State who
shall make application for loan
provided, the said loan be not more
than one.third of the tax levy for said
county, and the whole of the taxes of
said county shall be pledged for the
repayment of the money so borrowed
of said sinking fund commission.
Sec. 3. That the county treasurers of
the respective counties borrowing
funds of the sinking fund commission
shall pay the note so given out of the
first taxes collected for the fiscal year
in which said money is borrowed.
Sec. 4. That the sinking fund COM
mission shall receive applications for
| the various counties and file the same
until the first day of March of every
subsequent year hereafter; and if the
applications aggregate more than the
entire fund in the hands of the sink
ing fund commission, said commits
sion shall prorate the loan to be made
to the several counties in proportion
to the taxes paid bY the respective
counties; provided, that no loan shall
be made to any county in excess OF
one.third of the amount of tax levy
for such county for county purposes
provided, further, that for this year
the applications shall continue to be
made until May the first.
Sec. 5. That the sinking fund com.
mission shall forthwith call in all
temporary loans heretofore made by
it, and loan said fund under the pro-
visions of this act.
Sec. 6. That any county treasurer
who shall violate the provisions OF
this act shall be fined, on conviction
thereof, a sum not exceeding $1,000,
and his bond shall be liable to said
sinking fund commission for the
amount of the loss sustained by said
commission, together with all costs
and expenses thereof.
Sec. z. That all acts and parts OF
acts inconsistent with this act be and
the same are hereby repealed.
There being some question as to the
construction of the provisions of the
act, the attorney general was asked to
construe it for the commission. This
he has done and the following issued
by the State treasurer has been printed
along with the act and is being sent
to the several counties, so that their
officials may inform themselves:
Office of State Treasurer,
Department of Sinking Fund,
Columbia, S. c., March II, 1897.
The foregoing copy of an act is trans.
mitted for the information OF those
concerned:
The attorney general has construed
the act as follows: The sinking fund
commission is authorized and required
to lend money at 5 per cent. interest
per annum. when State of South Car
olina bonds cannot be Obtained at q
reasonable price. The money cannot
be loaned for a longer nor shorter
period than one year. TIE money
must be loaned: first, upon the valid
securities of the several States of the
United States, giving preference there
to; secondly, what money remains
after making loans upon such securi'
ties offered as above stated is to bs, on
the first day of May, 1897, and on the
first day ofMarch of each year thereaf,
ter, loaned to the several counties ap
plying for loans and complying with
terms of act; said balance loaned to
counties being prorated among the
several counties in proportion to the
taxes paid, and no loan to any county
shall be in excess of one third OF the
tax levy for such county for county
purposes ordinary county tax. u
Applications for loans are to be for