The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-10-24
COTTON BOND MEASURE.
Important Bill Sent to Both Houses
Monday Night.

Sented tonight. 1t is the $4,000. 900
pond proposition submitted by the
special committee in both house and
senate. Senator Lide, in presenting
the bond bill, stated that it was the
best that could be done in the time
aNaiiaple. 1T was not regarded as a
perfect bill and hearings Will be con-
tinued with a view of further round
ing out the bill. Committee amend.
ments Will be presented later.
Here are the essential features of
the measure that overshado dows any,
thing yet offered.
section l. That the State Of South
Carolina shall issue $4,000, 900. if so
ihuch be necessary, in per cent cou-
pom bonds carrying interest from the
date or issue, payable annually, for a
term OF five years and with the option
to call the said bonds or any portion
thereof by number for payment at anv
time; said bonds to be issued in form
ana manner and the purpose herein
after set forth. Provided that the
question of issuing the said bonds be
submitted to the qualified electors OF
this state at the next general election
on the third day of November. 1914
for the consent Of the people of the
state; that at said election there shall
be provided a sufficient number of
ballots as follows:
For the issuing of not exceeding
$25,OOO,OO0 in South Carolina coupon
bonds to be exchanged for or loaned
upon cotton by the State, yes" and a
sufficient number Of ballots shall be
provided as follows:
For the issuing of not exceeding
$25,0OO,OO0 in South Carolina coupon
bonds to be exchanged for or loaned
upon cotton by the State, no." Only
such notice Of said election shall be
required and extended by ADVERTISE
ment as may be practicable after the
f'"~oo> "a Nhio <hSl ilttI Iii CdSt wv o.
thirds Of the qualified electors of this
State voting on the question of said
issue shall vote Yes" then the said
bonds shall be issued as provided in
this Act.
Section 2. Provides that the bonds
shall be in denominations of $50, 500,
$500 and $1,000, and that the form of
the bonds shall be provided by the
State sinking fund commission. It is
further provided that the cotton taken
in exchange for the bonds shall be
pledged for the payment of the same
and interest and that all fOrfeitures
fines and interests collected on the
bonds shall be held by the State Treas
urer for the payment Of them.
Section 3. Provides that the sinking
fund commission shall turn the bonds
over to the State Treasurer and that
the bonds are to be exchanged for
cotton produced in South Carolina
evidenced by receipts from bonded
or State-managed warehouses. The
sinking fund commission shall deliv-
er warrants in the sum represented by
the value of the cotton at 10 cents
per pound on the basis Of middling,
the price of the lower grades to be
fixed by the sinking fund commission.
The persons receiving the warrants
shall be the producers Of the cotton
or the owners of the land upon which
it was produced and the holder of the
warrant shall deposit in cash with
the sinking fund commission 10 per
rent Of the face Of such warrant to
be held in the State treasury for the
purpose of paying interest in bonds
and expenses.
Section 4. Provides that upon the
delivery Of notes subject to such rules
and regulations as the sinking fund
commission may prescribe that notes
may he given payable two years af
ter date with S per cent interest and
the cotton to be used as collateral.
On these notes it is also required
that cash payment Of 10 per cent.
Of the face shall be paid to the state
treasurer to cover the interest in ad-
vance, the loan to he made on Il ba-
sis of 8 cents per pound for middlinG
cotton. Upon delivery Of the note and
the payment Of 10 per cent. of the
face for interest and expenses the
maker of notes is to be given war
rants on the state Treasury for bonds.
The payment of the notes shall not
be required until the cotton pledged
to secure the same shall be sold al
Il price sufficient to pay the face of
said note and interest on the date
thereof and all carrying charges. 1t