The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1900-01-10

interest, which the General Government
holds against this State before any claims
OH the part of the State against the Gem
eral Government should be paid. This
communication was brought forth on ac-
count of the claims put i'll by this State
for reimbursement of expenses incurred
in organizing volunteer troops for service
i'll the war with Spain. l submitted the
letter to the State Treasurer and asked
him for statement. / submit herewith
his statement and ask for this matter such
and action as i'll your WIS
dom you may deem proper 10 take: "1n
pursuance of this provision Of law the
Secretary of the Treasury of the United
States has notified us that the General Gov
ernment holds certain State bonds TO the
amount of$I25 900, principal; and interest
to maturity of $r23,75o, aggregatlng $24o,-
$50, and requests payment OF the same.
These bonds bear interest at six per cent.
and were issued under Act of December
10, 1855, for construction of new State
House, issued January Ist, 1856, redeetn-
able January 1st, 1881. BY reference to
the records of the State TreaSurer's office
it is noted that there was some CORE
spondence had between this othceand the
Treasury Department at Washington IN
November, 1881, and during the admins
tration of Governor Johnson Hagood, : but
without settlement of the clai4 so far
HsUnder the Act offhe General Assem-
bIy at that time of force these bonds,
principal and interest unpaid to .'1st Jam
uary, 1880, were fundable in sixper cent.
consolidation bonds at fifty pei; cent. OF
said amount. The consols being redeem.
able on 1st of July, 1893. The ACT OF the
Legislature of 22nd of December, 1898,
provides that all bonds and stcsks hlth-
erto fundable in these consols upon their
surrender be exchanged for the new 20
40 wears Az per cent. bonds and stocks
authorized by Act of Decembeg 1892, tor
the redemption of Brown Consols. These
coupon bonds now held by the United
States Government are fundable as above
stated upon their surrender, i. e., at so
per cent. ofprincipal and interest up to
maturity. The State, however, has Revolu-
tionary War claims to the amount IN
round numbers of $s5o,ooe In the in,
vestigation of this claim against the
United States Government heGeneral AS
sembly in December, 1856, passed reso.
luton authorizing the appointment OF
some suitable person to investigate and
prosecute the States claims as aforesaid,
and under that authority Governor R. F.
w. Allston appointed Hon. Jas. A. Black
agent for that work. The said agent In
corporated the result of his labors in a re-
port to the General Assembly, which was
ordered to. be filed with Comptroller Gen.
eral, which cannot now be found among
the records of his Office. There is large
mass of old papers now in oneEot the
rooms of the State House, among which
this valuable report might be found if the
means were i'll hand to employ. an eff
cient and painstaking person or Spersons
to examine this confused mass QfPapers.
There are, in all probability, other claims
held by the State against the General
Government, to say nothing ST private
claims of large amounts amounting to
millions of dollars" p.
This is matter of; very great impor-
tance 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 on the SUBJ
ject. You also rescinded 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. In view of the Importance of this
report I recommend that you provide for
an examination Of all the old records and
especially the old rubbish that is stored
away in one of the ,unoccupied rooms of
the State Capitol to see if this report can
be found. It's recovery may be the means
of our getting considerable sum of
money from the United States Govern
ment and it is important to put ouy !Sena-
tors and Representatives in possession of
all the facts that can be obtained. AS
understand it, the claim of the United
States Government for the settlement of
the SI25, 900 of South Carolina bonds be-
longing to the Indian Trust Fund and the
accumulated interest is just and honest
claim which we ought to pay and
which we could pay with our claim
against the United States Govern
ment and have balance to the credit Of
the State if we can, find the testimony to
substantiate the claifn of the State. The
matter was in proceS of settlensntwhen
the Civil War broke; out in 1866. and the
State had Joined with other States in pro-
test against the unfair methods of the
United States in adjusting the claims and
it was to sustain its contentionsi that
Black was employed to work up the:
States case. 1t may not be possible to:
obtain the full amount clainsd by the
State, but am informed that fhereis ab-'
solute proof in official documents that the
United States acknowledged fhat it owed
the State of South Carolina in 1881
$4,000 and this with accumulated inter-
est Tor fifty-nine years would amount to
bout$35o, 900. Ifrthis 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 $Ioo, 900 left. Under the con-
solidatIon act of 1873 the State Treasurer
can only refund old bonds at fifty cents
on the dollar, but if settlement as sug-
gested could be made with the United
States Government you might pass an
Act authorizing the State Treasurer to
settle at 100 cents on the dollar on
condition. that the United States pay the
just claims to the State of South Carolina
as acknowledged in the report of the Sec.
retary of the Treasury in 1858.
For statement Of the bonded debt Of
the State your attention is directed to the
annual report of the State Treasurer. Our
bonds find ready sale i'll the markets Of