The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1902-01-14
Il became necessary in order to meet

It became necessary in order to meet
the current expenses Of the State gov
ernment, for the Treasurer, by author
ity of an Act of the General Assembly,
to borrow $4,000. This loan was ne
gotiated at four per cent. per annun
for thirty and sixty days time and has
all been paid back. In order, however,
to meet the interest on the State debt,
due January first it was necessary 10
borrow 10000 additional. This action
was made necessary by the fact that a
very small proportion of the taxes mad
been paid at the close Of the year.
In my message Of the last two years
l have upon each occasion called your
attention to the subject of certain
bonds which, by the Treasurer re-
port, appear as part Of the old deot OF
the State, but which are now, under
the Act of 1895, no longer fundable by
the Treasurer without the action OF
your honorable bodies. From your
journals learn that my message upon
the subject was referred to a Joint
Committee which reported theron, but
which report was not adopted by The
Senate and no action taken thereon by
the House of Representatives. The
Treasurer calls attention to the bonds
and says: II find on the books Of this
department certain bonds as part OF
the debt of the State entered as Old
Bonds Not Fundable (Act Of 1886 Blue
Railroad Bonds $37,000.' These bonds
were issued in 1859, and matured in
1879. BY Act of 1895 the Treasurer is
forbidden to pay, consolidate or fund
any coupon bond of the State after the
expiration Of twenty years from the
date Of maturity of such bonds. ! am
in doubt as to how longer to report
these bonds. If they are no longer
fundable why carry them longer rs a
part of the debt of the State? But
while on the one hand the Treasurer
can neither pay nor fund them, on
the other he has no auth ority to write
them of the books" This letter was
referred to the Attorney General FOR
his opinion, and in reply he submits
a full and complete opinion, eonclud-
ing as follows: 81 am of opinion that
the bonds in question constitute an
existing adjudicated part Of the debt
of the State, and as such can only be
disposed of by some Act OF the Legts-
lature. !"
Thus confirmed in my opinion and
views upon the subject by the legal OF
feers of the State, cannot do other
wise than repeat my recommendation
Of last year, viz, that the claim OF the.
bank to Se permitted to renew and
fund these bonds is valid and Just ana
should be allowed. It is not denied
that the State owes the bonds to some
one. They are carried as part OF the
debt of the State on the books OF the
Treasurer, as owing to some one The
Courts have all decreed the bank to
be the owner no one else can now
claim them, as all persons but the
hank are barred under the Act OF
1896 from doing so. repeat, in the
face of these facts, it will be little
short OF reputation if we continue TO
refuse to allow the receiver OF the
bank to fund them.
.EXIENSlON Ot' 11MEs sF5 FOIS Al =
q MENT OF TAXES.
It is best that the time for the pay
ment of taxes without penalty should
be fixed, and it should be understood
that there will be no extension. In
view, however, OF the stringency or
money with our farmers, and IN conse-
uuence with almost every other branch
of business, and in view OF the fur
ther fact that the time for the pay
.ment of taxes has so often been ex-
tended that our people have come to:
expect it, after consultation with the
Comptroller General, and by virtue OF
authority given us by law the time
Tor the payment of taxes without pen
atty has been extended to the first day
Of March. 1902.
TAXATION.
The question Of taxation is one OF
the most important and difficult prob
lens that will confront you and one
of the most profound in political econ
omy. It has been difficult problem
ever since government has been organ
lied and taxes laid, and never yet mas
a system been adopted which is en-
tirely equitable and just and which
has not been open to fraud and eva
sion and inequality. It is easy to lay
down a theory and principle that
will be just and equitable, but when it
comes to putting in motion the ma,
chinery that will carry out in It's prac-
.tical operations that theory and that
will apply the principal to property,
the question becomes yexed one and
difficult of solution. The Constitution
provides that all property shall be as
sessed at its true value and therefore
bear its share Of the burden of taxa
ton. This principle was laid down by
Adam Smith, the celebrated Scottish
philosopher and political economist,
in, the early part of the Eighteenth
century, and by all writers on political
economy before and since his day.
Equal and just taxation, levied on all
property proportionately and in &C
.cordance with its value, is the product
of the highest justice, and when done
to meet simply the demands Of govern
ment, economically administered, is
never burdensome. On the other hand,
,.oo,o1 ond 11ni,,st taxation is al