The herald and news. [volume] (Newberry S.C.) 1903-1937, 1914-02-06


of interest. as possible, and of course it
would be 10 the advantage Of the State,
both financial and otherwise, if this rate
could be lowered TO four per cent. or
three and half Yer cent But this
should net be done unless the refund
ing bonds can be placed either at par
or at a premium. This cannot be done
under the present act Of 1912, and
without the tax exemption recommend
ed by me and which has been incor
porated IL tie former acts Of 1892 and
1910.
J Why discriminate against Home Peo-
pie.
Why. force cur bonds in the hands
of northern capitalists and deprive our
South Carolina institutions OF invest
menas in these securities? Why not
make our bond issue so attractive to
our home institutions that the issue, or
the gxeater part Of it. will be owned
by cur home people? Under the pres
ent conditions, and restrictions in the
act of 1912, if the bonds are owned
outside of the State, or even by in
dividuals within the State, no county
4 or municiapl taxes are collected on
same; yet under this same act, if a
bank or corporation owns these bonds,
here is no exemption from taxation
by reason Of such investments. 1t is
shown that about $1OOO,OOO worth of
these bonds, one-sixth Of the entire
issue. is owned by the banks. in Char
lesion alone. Hundreds of thousands
of dollars are owned by other banks
and corporations in other towns and
Acit.es Of South Carolina. Why not
give these local banks the same priv
Alege you gave the northern capitiist
pd individual South Carolinian? Why
restrict the field for Investment?
y There can not only be no coed reason
advanced for such legislative discrim
inat;on, but many and excellent reason
A-can be and are advanced against such
discrimination-the market of invest
ment will be materially enlarged, and,
as is shown by the testimony of ex-
erts in such matters, the bonds can
sold to good advantage and at
premium possibly, while, under the
act of 1912, the bonds cannot be sold at
IL. And this can be done without
be loss Of single dollar Of proper
xation to the State, at the same time
ing the State the advantage of the
creased price for the bonds and the
lhancement of its credit in the fnan
r Il marts Of the country.
The Loans to The Counties.
There is another matter in connection
th this refunding and retirement of
bonded indebtness, to which I de-
to call your especial attention.
at is the action CT the sinking fund
nmission in calling in the loans
ich are due the sinking fund COM
Bsion, most Of which were bearing
crest at the rate Of five per cent.
sr annum, and using the proceeds of
ese~ leans, the assets of the sinking
> fund commission, in the retirement
OF Az per cent. bonds. In considering
this phase Of the question, l would
have you to keep in mind the fact that
these loans were gilt-eGged, and there
was no possible chance for the State
to lose a dollar of them; also, bear in
mind, that under the act Of 1892. under
which these bonds ere issued, the
! State of South Carolina reserves the
iglt to call in and pay the whole Or
Aly part Of the issue at any Umo
after the first Of January. 1912, 50
that 1t was and is nos necessary at
this time to call in and pay Of tie
bonds unless it was to the advantage
CT the State to DO SO.
i If you We're indebted to i in IN
sgs1T, say, Of million dollars, and
ere paying him four and a haI ~
1t. interest on the 6e5t, ana 3 Va
9@s6ebted to you. say in simu ar z'},n