The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1903-08-26

The city Of Abbeville,wil soon issue sewer
age bonds to the amount OF $4,000. The fact
that the Legislature in It's wisdom made no
provision for the non.taxing OF five per cent
bonds precludes the possibility Of selling
them TO our own people. When these bonds
are sent away they will never be assessed by
our State and County. and the interest gees
from Abbeville to enrich other communities.
even as the rents OF Ireland GO to the English
landlord. II matters nothing to the welfare
oftheState II the citizens owe each other
large amounts. and II they pay each other
great sums In interest. The money In such
cases 10 kept at home, and is not Withdrawn
from circulation.
This, however, is a question OF policy and
the public welfare.
There is still another side to the PROPOSE
ton to tax bonds which are issued by the
State and the cities Of the State. When the
State, or any city. comes down from its exalt.
cd position and goes into the market to Dor.
row money on It's note, or bond, 1t places It.
self on the level Of the individual. The con-
tract TO lend or TO borrow is consum nation Of
an agreement even as between two citizens.
And the contract of each should be, and Is,
legal and binding on both parties as to the
faithful performance The citizen lends his
money. The State or the city takes 1t and
gives q note or bond for the payment of both
the principal and the interest
When this is done, is II right or equitable
for the State to step up to higher level than
any other debtor may occupy and then con-
fiscate part of the money which 1t has Dor.
rowed?
Has the State, or the city. the right to com.
pei the holder Of Its note or bond, to surren-
der one cent of his debt in the shape Of taxes!
Is 1t not, in plain terms. using the power Of
the State to compel the holder Of bonds to
discount his bonds, even II 1t be under the
name OF taxes? '.,..
Take, TOR Instance, the City OF Blind Tigers
The tax levy in that city, We believe. is four
per cent. or more. Suppose then. q citizen OF
the City Of Blind Tigers should buy Abbe-
ville's i've per cent. bonds, OF what worth
would they be TO him II four per cent were
annually confiscated by the City Of Blind
Tigers?
The constitution forbids cities from Issuing
bonds. except for corporate purposes. Should
the city al Abbeville or the State of South
Carolina be allowed to tax the bonds which
Abbeville. proposes TO issue for sewerage +?
We contend that there is no equity In the
taxation OF such bonds by either the State or
the city. The Constitution authorizes their
issue for the specific purpose. No tax ia
levied on public utilities. The city does not
collect tax on Its water works. The State Of
South Carolina collects no tax upon the
bridges, the Court House. the jail, the poor
farm or other property Of the county. And
the State has no right to tax the bonds OF
municipality.
For State or q city to assess It's own bonds.
is to exercise the right OF the strong to take
from the weak.
While other conditions may exist to affect
the price Of city bonds. yet It Is true that the
saver" per cent. school bonds Of Abbeville,
which are non-taxable. command q premium
OF, say .ls per cent. the shop bonds, which are
not by law, exempted from taxation are sold
or bought at par. II the sewerage bonds had
been exempt from taxation. they would pro-
baby have been bought by our own people.
and the annual interest kept at home.
We know nothing as TO the legal authorities
on the subject Of allowing political corpora
tions to tax its own bonds, but we have DO
doubt as TO the ipjustic Of the practice. II q
State or city may conf1scate one per cent.
OF Its debt why not confiscate. or repudiate,
the whole oft?