The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1900-01-09

"i''S,' ''' II. httSi'' uctln proper 10 col
lcct any bonds or stocks, Drimcipal and
interest, which the General Government,
holds against this State before any claims
on the part of the State against the Cen
eral Government should be paid This
communication was brought forth OH ac-
count OF the claims put in by this State
ior reimbursement Of expenses incurred
III organizing volunteer troops for service
i'll the war with Spain. | submitted the
letter to the State Treasurer and asked
INN Tor statement. ] submit herewith
ms statement and ask for this matter such
consideration and action rs in your Wis
dom You may deem proper TO take: 'In
pursuance of this provision of law the
Secretary OF the Treasury of the United
States has notified us that thvCcncral Gov
ernmcnt holds certain State bonds to the
amount OF 81 p, ,ooo, principal and interest
'oma'uil'y OF SI2&75o, ag®ating $2lS,-
$50, and requests payment of the same.
These bonds bear interest ut six per cent
and were issued under Act of December
I9, 1855, for construction Of new State
House, issued january Ist, 1856, redeem
able January lst, 1881. By reference to
The records Of the State TrcaSurcrs Office
1t IS noted that there was some CORE
Spondcncc had between this Office and the
Treasury Department at WASHINGTON in
uatlon OF Governor Johnson Hapood, but
without settlement of the claim SO far
as we know
'undcr the Act Of the General Assem-
bly, at that time Of force these bonds,
principal and interest unpaid TO Isl Jar-
uary, 1880, were fundablc in six per cent.
consolidation bonds at fifty per cent of
said amount. The consols being redeem.
able OH Isl Of July, 1898. The Act Of the
Legislature Of 22nd of December, 1893,
provides that all bonds and stocks lli,h-
crto fundablc i'll these consols upon their
surrender be exchanged for the new 90
DO years i !, per cent. bonds and stocks
authorized by Act of December, 1902, for
the redemption of Brown Consos. These
coupon bonds now held by the United
States Government are fundablc as above
stated upon their surrender, i. -, at so
per cent. OF principal and interest up to
maturity. The State, however, has Rcyolu-
uonary War claims TO the amount in
round numbers of S5so,ooo. In the i'll
vcStiGation OF this claim against the
United States Government thcGencral AS
sclnbly i'll December, 1856, passed a rcso-
luton authorizing the appointment Of
some suitable person to investigate and
prosecute the States claims as aforesaid,
and under that authority Governor Il. i.
~. =
agent for that work. The said agent in
corporatcd the result of his labors III a re-
port to the General Assembly, which WAS
ordered TO be filed with Comptroller Cen
eral, which cannot now be found among
the records Of his Office. There is large
mass Of old papers now in one of the
rooms of the State House, among which
this valuable report might be found if the
means were III hand to employ All eff
clent and painstaking person or persons
TO examine this confused mass Of papers
There are, i'll all probability, other claims
held by the State against the General
Government, TO say nothing Of private
claims of large amounts anountin" to
millions Of dollars"
This Is matter Of very great imDor-
lance to our State. At your last session
you passed joint resolution requesting
and directing the Governor and State
Treasurer to furnish all information avail
able to our Senators and Representatives.
touching the claim Of the State against
the United States for money advanced
during the War Of 1872, and that our
Representatives. in Congress be requested
to urge forward all legislation OH The sub
Ject. You also rcscindcd all outstanding
contracts if any should exist for the col,
lection OF this claim. 1t seems that the
Black Report made in 1858 and mentioned
by the State Treasurer embraces all the
testimony and facts relative to the States
claim. III view of tho importance Of this
report | recommend that YOU provide for
All examination of all the old records and
especially the old rubbish that is stored
away i'll one of the unoccupicd rooms of
the State Capitol to see if this report can
be found. Its recovery may be the means
OF Our getting considerable sum of
money ircm the United States Govern
mcnt ANA 1t Is Important TO put our Sena-
tors and Representatives III possession of
all the facts that can be obtained. AsI
understand it, the claim Of the United
States Government for the settlement Of
the $3.50 Of South Carolina bonds be-
longing TO the Indian Trust Fund and the
accumulated interest is a just and honest
claim which We ought to pay and
which we could pay with our claim
against the United States Govern.
mcnt and have balance TO the credit of
the State if we can find the testimony TO
subsiantiatc the claim of the State. The
matter was i'll process of settlement when
the Civil War broke out in 1860, and the
State had joined with other States in pro-
test against the unfair methods of the
United States III ad djusting the claims anI
IL was 10 sustain its contentious that
n"tk WAS employed TO work up the
States case. 1t may not be possible to
obtain the full amount claimed by the
State, but am informed that there is alb
Solute proof i'll official documents that the
United States acknowledged that it owed
the State Of South Carolina in 1871
S7S,oo and this with accumulated inter
est Tor iifty-ninc years would amount TO
about $35o,ooo If this could be adjusted
without going into the disputed claims the
State could pay the claim the United
States Government holds against it and
have about 500, 900 left. Under the con-
solldation Act of 1873 the State Treasurer
can only refund old bonds at fifty cents
Oh the dollar, but if a settlement as sup-
gested could be made with the United
States Government you might pass an
Act authorizing the State Treasurer to
Settie at 100 cents OIL the dollar on