The Orangeburg news. (Orangeburg, S.C.) 1867-1875, October 21, 1873, Supplement to the Orangeburg News, Image 2

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SUPPLEMENT TO THE ORAMEBUM NEWS. MESSAGE OF HIS EXCELLENCY GOVERNOR F. J. MOSES, JR., TO THE LEGISLATURE OF SOUTH CAROLINA. OTT^TV<>i:i$TJI*0, S. O., OCTOBER, 1^73. _1_ MESSAGE. mv-citizens of the. Senate and /Alter ii/" Iiejntseidatives: I linvo called together your lionorablo bodies by virtuo of the power vested in me by 'bo constitution of the Stute, which authoriz is ne Governor, " on extraordinary occasions," to convene the General Assembly. 1 have been impelled to exercise this power y my senso of public, duty. Tho occasion is an " extraordinary " one. nnd its responsibilities, which attach alike to tiio Legislative ami Executive departments of tho State government, will bo met, 1 trust, with n strict regard to the interests of the ^ people at large, from whom they derive their K powers. Certain bond creditors of the State, holding ^or representing bonds of several classes hav ing, in tho last resort, appealed to the Supreme Court to pass upon the validity of the Slate securities held by them, and to a (lord them tho roliof lo which they deemed themselves outilled, the court have decided Unit tho bonds in question aro valid, and Hint tho comptroller tgeneral shall, "in obedience to tho constitu tion and laws," levy a tax to pay the interest on the said several classes ol bonds, such levy to bo made before the 15th day of November proximo, tho rate per centum of the tax lo bo thus levied to be adequate to liquidate the in terest past due, and also that for the prosotil year. L This mandaiaiif covers live classes of bonds. Unmounting in tho aggregate to $3,519.000,11 ve ?hmutrcd and forty-live thousand ol Htave been exchanged for conversion bonds, Bund are now outstanding in that form. F This decision of the highest judicial tribunal I of tho State, thus invoked by a portion of the f^tubliocreditors, would scent to admonish tho Stato government that it should, without de lay, provide, for the liquidation of its whole bonded debt, upon some practicable basis of adjustment,?honorable alike to the Stale and its creditors,?or prepare lo witness proceed jugs, ou the part of those who hold ii> Becuri l ties, which must eventuate in .-tamping the iState?by tho decrees of its own or Federal s'ourts,?as totally wanting in regard for private rights or public faith. If tho General Assembly could, by an instant exercise of its constitutional powers, destroy every bond that bears' upon it tho impress of the great seal of the Slate, they would thereby confer u very great present benefit upon the"entire people, but it would he. lit tlio same time, an net of monstrous in justice. There is a tribunal before which Stales are judged, as well as individuals. It is the tribunal of public opinion. The verdict ol* impartial nnd inexorable his tory is made up from the expressed judgment of fair minded men, delivered on current event-. Let not that verdict be. that the govern ment ol* South Carolina?based njion a broad recognition of the rights of nun:?contracted u huge public tlobl to piovidc for its mainte nance in t/ir hour of ih uteoknrns and remorse lessly repudiates that debt in the day of it.* as-tttretl power. Whilv I do not. for an instant, assume that any honorable Legislator would avowedly re pudiate any obligation of the Stute, yet it must bo patent to the world that !<? refuse, or to ! ;l to provide, the means b.r liquidating the public debt, is. in effect, to repudiate it. Further del rty to act in the prcminC*, "jy mi etitig tue jusi demands of our public credi tors, to the extent of our ability, without im posing a grievous burden on the people, is lo li.s upon South Curolihtl the stigma of repu diation, which must indelibly mark her as the sliaiue and opprobrium of American States. I would, however, deem myself unmindful of the high trust that I hold from the people, and which they have also conferred UpOtl you, fellow-cit i/.eus, as their chosen representa tives, if I were to advise that the debt ol* the St.u ? should be liquidated at its full ascertain ed iimouut. The State satisfies tbo demands of honor and good faith when it does nil that its cir cumstances allow. The existing bonded deb; represents, iu great part, an exemption of the people from high taxation during the period ol" four years, commencing iu 18M8. Its liquidation confers upon us vast re sponsibilities and solemn duties. Ti esc i csponsibjliiu s and duties we cannot delegate toothers, but we must act according to our best understanding, confiding in the Integrity of our motive'-, nnd in the just judg ment of the people. ? /?? ?< ri'jhta and obligation* tin' alike rejtrettTiile 1'it Hi Governhtent uj ihr. Slut.. A further and iinporlni i to isidornlion that ha- mduc. d nie to CoVVCtli your honorable botlios in cxtr.tordiii.i'.v m:i?a is that the act. which I have scon by \> i i journals, was passed ami ratified at yi.irl ilui niinlsession, withdrawing from the h iM it-l r l|ip comp I t roller-general nil authority to order any tax levy, Im? never reached this, department, and hence, had not become a law, as was intended ' by the General Assembly. Tho decision, therefore, of the Supremo Court, requiring the comptroller-general to order tho iteee*sary levy to pay the interest oil the Adjudicated bonds, on or beloro the 15th of November proximo, would?if your honorable liodios had not been convened? have been imperative upon tho said officer, and he would thus have exercised a power under the operation of a statute which the law-making department of the State govern ment hud clearly shown their purpose to re peal. I therefore thought it proper that you, as the representatives of the people in your leg islative capacity, should bo a (lorded tho oppor tunity in season, after further reflection, of affirming your previous action in the promises, reflecting, as you do, tho airoct cxprcssioi of th?? popular will. For \our information, and for that of tho pimple of t!<c State, I have made a thorough and exhaustive examination of the various classes of our public debt, and have prepared tabular statements exhibiting the truo status thereof. In this wotk I havo been ably seconded by the unremitting lal?>rs of Mr. Walter U Joues, clerk of the Financial Hoard, to whom I lake this public method of return ing my thanks for his valuable ussistauvo. It is due also to the honorable the treasurer of the Slate, and to his cflicient book keeper. Mr. T. J. Mimnij, thai I nhnuld spy tli.it I have boon iiltbrdtfd every facility in making this investigation, and that I have obtained reliable aid from them in acquiring the infor mation desired. Kvery piece of Block, or bond, caucellcd and tiled in the treasury, which tins been re deemed, or for which ton vor* ion stick or bonds have been exehuiigcd. has been sepa rately and Carefully examined ; its number and denomination noted and compared with the Troaaurer's registry of bonds and stocks converted. Hy eliminating from the bunds und slocks outstanding August 1, 1808, and trout those printed since that period by Messrs. Murphy's Sous, of Philadelphia, and the American Hank Note Company, of New York, such as have been converted and can celled, or cancelled UllUrcd, I have obtained a complete registry ol tho bonds and stocks outstanding at tho present lime. The follow ing statemeut will exhibit the present condi tion of the bonded debt: ANTE-RECONSTUI ( TlIOiN BONDED DEBT. Statement of the Bunded D<bt Angu.it I, 18-S8, Showing f.'i .'<??? >t of Kieh Via* (hit*tun tin i it .'..'??;?. n;:t. (bwru ,7.?./ <./? Redertiinl and the Balance C N l> K R CLASS. Itegiatercd .Stork. W II A T A C T ISSI'KP Kult WHAT V\ !:. n lti-Ki.itnri-1 Stock... June 1, IKW. Heglaterod 8tock.? Decemlier J", leVMI. Registered Stock...iDeo-tnlier Sil, ls.".7. Reglatored Stock.... December mi, ls".-i. HcgUtered Stock...jllecemlicr al, Is'.s. Registered Stock... Decelitlier 22, l.- Vi. Registered Stock...IDecember 22, isv.i. Registered 8lock? Jaiitmrt 22, IKfil. Begistcred Stock... January Isiil. gistcrcd Stock... February 8, I8GI. gtateretl Stock...!September und December, I8WI mdx. June I, 18.1S. >nda.'December, 18.13. DomU.' December, ls.V>. Bond".jRecooilier. lSQi. Bonds.! Decemlier, ISM. H mill'.(December, 1ST?! . Bonds.j December, ISM. Bonda.j Decent ber, ISM. Bonds.! Decemlier, 1S.M. ?nda. Seiiteml.,-1 mill lie..-tuber, ItttiU Bomla.{September mill December, ISM I Revolution Charleston < Vm-inu ili ISunatrucili Ootuttructli CoHHlrtictli Oonstrui tl< (Vnstrurth Const ruelii Const run Ii Conti rut Id r.ling r Obarli Moil Const i ne t Ii Construct d Ouuitrurtli Aid Id lllu Aid lo bin' Mil to lllu. Aid I? lll'l. Alt! to lllu. Funding r Funding I* .ii >? Wat Claim t ile lawn. ill N< u Slate ill New Statu in New Slain ill Neu si lt. ui New State hi New K|alu ui Ne? Slate ?a New Slate hi New State limine. H?nau. llouau. HotlM*. Ilirtixe. House. House. House. Hoilaf. tat Hue I uteri*, t anil I'riucllial Kl re I., miu. hi New Stale llouau. ui New Stale llouae. ?ii New Slain lb.use., ? Ititlg ? lluili.mil. ? RUIga Rallro-td. ? Rldgu Railroad. ? ttldga Railroad., ? Itldgo Railroad., nil Due Intet....t und l'riucl|inl, .ist linn In threat anil Princijaal. At t'leuatlte I870 IsTT Is a i*sn isxr. |s?7 l*X!l lv-2 LvSlI IS'ni ISS7 I SIM 1-71 ISM iss". Is7.'. 1-7.; IH7T l?7* 1*7 u 1SM7 ls'.C a < i?ik,siii no si4,4A3 ?ii ?>u ... - v -1 ?;:>.,!?? I uon.ouu jsmjjuu JIM.IKHI 2UujOUU Si -0,110(1 'i''.IHNI Kl,Ct3 484,444 2.?j|IUd 2.10,1)00 ll.ro i 2lt>,00U ?Jiu.iam ?10,000 ?/I'll". /'?U.iS'.l SMuggi 3Ufi,IMI 110 Ui 1.14 20 04S i.I ,2*1 IUI n|ii do a?j 7ti .'?7U IK I ,110 in ?80 ISJ ,44o mi Next .Olli ui 82,1X10 im :k'',liu mi :i7,jmi tio -s Z> Total.|?,oiojjw S3l9'JCaiTsl r.u jiij.mm Mffctfatjli 41 POST-RECONSTRUCTION BONDED DEBT; FIRST SUB-DIVISION. Statement of Ante-Reconstruction Floating Debt and Debt Fumlablt ander Ads September and December, ll?iv(>, Funded from August I, 18?iS, ... October, 1*7.1. CLASS. r N i) K i: WHAT ACT I 8 8 V V. D lull WHAT PURPOSE. IIa p < i ~ - m c 5 2 ssi HegUtored Stock] Supt'licr ami D Bonda.i Bonda. Bonda. nda. nda. r, 1800..!Fundingftwl Due Int.and I'rin Scjit'ticr ami Dec'r, ism;.. ITundlngI'ual nnelnt.au?! run Sepfber and Doc'r, 1800.. Irnndlngl'ajtDuelnt.and I'rin. Auguat 20, ISiiS. RcdeitiplioU Hill" ltoC?IV:|blp.... Angott 20,'IHOS. I'a.vnieiit Intrreal Ihllillc Debt. September IS, I80S/. Funding llllln Ituuk Mute. !SS7 0 ??."..'.ft."!! \ri issi a IDI.Ofli) on 1897 0 'I l,'*" IW lsss' 0 ISSS ll 1888 0 SVojam U? 7S.'i,4lil tm S.Vm.mai mi 7K.V.4I? Hi c?s-.,>-7:i 41, t/Mi in 'I i?n UU li.,l?m laj ?7,0ml 7,001 is 2 5 ?H..',miri K-.'.IIOi Total... l,.v.ni,mm Ml 1,200,000 oo t0,4mi no 329,0110 t2,000 r70.4l.-t :?! 104.000 mi IM.tlOO IK) 4*4.0)?) raj 7s."',tlf. en 1,189,0(10 m ?Printed by Huriihy'm Soiia, Philadelphia, fin hau'la of Kltupton. . <-.'si I....VI 02 ?2,H7?.4D> rai. ?-?.;. 11, ID: CO Jlt;i).77:i 4IIF?4.l 14?. J|iit,mX) S2,T4S.iC|it Co Total Funding Slock iMUttl, <fi 10,287^.1. Total Oowterled, $oi ,s7:?.4l. Balance, $70,41-1 (M SECOND SUB-DIVISION. Statement of Bonded Debt Created ? b;/ Reconstructed Government from August 1, lh-is f,, October, ami Bonds and Stockt Issued to f'/,f/ii(/e Farm (>f Itmidrd Indebted next. CLASS. atered Stock. nda. Bonda. Bonda. Bomla. Bond?. V N I) E It WHAT ACT FOR WHAT PlIRPOSB. ISSUED. r. K <'. A March zi, 1800. Conversion Stale 8ocnrillea. ISSN H ?.'..VMi.mm mi Anguit an, lsivs... I Payment Int. Pnblle Debt... lsss n l,i\4,WM |004/iS3 54 Felmiary 17, Im.'.i ; Relief of Treaaiin. lsss 7 l,mai,m?i mi KOil.OtNMIi March ISM.[Oonveiiaioii Slate Herarllira ISSS II s.'.mi.mm mi ftJaSft.OlM no March Isi.ii.Itavnd arinirulaalolt. |ss?> r. j^i.mai mi StSJOjtlOO Oil March 1, 1X7(1.| Until CtimailMloii. Is-.n r, ^OOpOf Mi 600,1100 00 Total.... . 114,104^83 :tl ptfiHs/M M |SJt87,2rai|ft,27-l,7ni| fAua.uai |l,47O,Mm|flJ)7SJIi!0 i'.i.Jtl.usi :u ?By tranafer. Aate-Iteconstruction Rondel IMH.onnSaHdinaOctolajr, 1V73.M,7nt,7i:i 41 oet-R?conilructiou Ikuub-il Debt, Mini Bno-Dlvlatop, mit?l:?tuliiig (let..i er. is7s.. 2,74tJl30 00 oel-Kecotiatniction Rundrd Debt, He ..'ml Siil. IUti.iiiii, i.iilnl.in.Iiii(; October, 1873. 0,-141,0*1 S4 RECAPITU LATION, ConveHed from AnfttMl I. l-:--.. to October, 1873.. Conteileil from Auguat I, DU?, to Ocloher, 187:1. Converted from Auguat 1, DUi*, to Ot tober, 187 t.. Total.>v.|I6,S51JM7 ? . f!H^,72l ,VJ . U0.77:? 41 . 1,214,700 M) Total.?.*ri,1?7.IW 00 "?V.M) In curreary wan jv.U In to make, e ven imu of ?im?, hencu rral awount Converalou Bonds and Stocka Uatted |2,l?7,iiifi. It will be seen from tlio preceding state ment that the bonded debt aggregates $1G, 851,027.33, or $300 more than tho amount ' reported outstanding on the :<Iat of t)ctober, IH72. This dill'erenco is mvouotod for by the issue on the ISth of November, 1872, ot $31)0 funding stock under the Acta of September und December, 18CG. It will also be seen that I hove divided tho debt into two historical iieriods, viz.: "Ante Reconstruction Funded Debt," or the amount of bonds nnd stocks outstanding when tho reconstruction government assumed control, and " rostdleconstruction Funded Debt," or the amount of bonds und stocks which near the signatures of tho officers of tho recon structed government. This latter -debt has been subdivided as follows: Tito first subdi vision shows the floating debt .contracted by the ante-reconstructed government, which the oflicers of tho reconstructed government lound outstanding when they camo into tvowcf, and which they converted into a funded debt by the issue of bonds and stocks; the second subdivision represents the funded dub* ac tually orontod by the reconstructed govern ment, nnd for which only they tire entirely responsible. HISTORY OF TIIH UOMUSP DKirr. The stock known as the thrco por cents of 17'.'-l, was issued for the purpose of funding certain debts incurred by tho Stuto to aid in carrying on the revolutionary war. At the close of the war tho United Stales govern ment assumed the debts of tbo States, in curred in carrying on the war. The interest uiK?n this debt was paid by the national gov ernment to the State, and the Sir*'* disbursed the amount so received lo her creditors. When the ltauk of the St.itO was chartered iu 1812 the moneys received from tho United States were turned orer to tho bank and formed a portion of its first business capital. After a few years the United States paid to tho State the entire principal of this debt, which amount was also turned orer to the bank, and it \rri* inado the duly of the bunk to pay the interest annually accruing upon theso three per cents, and to redeem tho prin cipal utKiii presentation. It Is, therefore, assumed that this debt is a prior lieu upon the assets ol the bunk. Tins stock is held almost exclusively by citizens of this Slate, having l>eeii in tlie possession of singlo families from generation to generation from 1794 to the present time. Tin. Fire Loan slock, amounting to $303, 343.80, and Fire !.<??: i bonds, amounting to $481,944 3|, me outstanding balances of au original issue of $2,000.000 uf bonds issued as a loan to rebuild tho burnt district of the city of Charleston underact of June 1, 1838. The bonds are mvld iu Kurope and matured in 1888. The Stock muluied iu 1870 und is owned by cilixena of tho United u??i?-. In my opinion these bonds and stocks, amounting In the aggregate to $785,283.20, which nro now |>ust ?lue and t*ayablc, and also the three per cents, making a total of $824.124, an* not an actual, but a contingent, liability of tbo Suite. The act SUthorixiug the is.su? of tho " Fire I.-an bonus'' piovides Ihut "it shall be the duty of Iho President and Directors of the Hank of the Stute of South Curolina to make proper provibion for tbo punctual payment of iho Interest of such loon us may Ihj effected upon tho crodil of the State, uiidor the provis ions ot tins act, und also for the ultimate redemption of the principal Ihoreof;" and, further, "iluil when the PiOtltS of thu suiii Hunk of llio State ol Smith Carolina ahull bavo paid the interest on corUiiu stocks und re deemed siiid slocks (all of which, save the throe pur conti, huvo been redeemed '?.?'ig since), for which they bavo heretofore been pledgetl nnd sol upait, the suid profits ahull also bo considered solemnly sol upart for tho payment of the interest ou the said loan und the final redemption of' the principal thereof." The history of this loan is us follows : The $2,000,000 o'f bonds wuiu issued to thu ltauk of the Stnto. Tho bank through its ugeut, flenernl llcDuffie, secured tho services ot the Maring Urolhors, of London, to i.e.;. ? tiate ihotn. They succeeded in disposing of illtout $1,0(10,000; thu remainder was returned to tho bank, conrettotl into regifclerod stook, and sold In tho Sutei. The proceeds of tin* Bale ol tllBSO bonds aus) stocks were dutvtsitod in the bank us a part of its working capital. I'ersons desiring to rebuild the burnt district of Charleston obtained a louu for that purposo from the hank, giving a mortgage upon the property ss security for the loan. The bank received lite moneys from the sale of the bonds and utocks; it received the iutcrest upon the loons mado to lbs builders; it re ceived the principal of the loans at their ma turity. In justice, therefore, to the tax payers of the Slsto the assets ol tho bank, which bavo repeatedly been solomuly pledged and set apart for tho redemption of ibeso l*onds and Stocks, ought to bo itiimodiatolv flu up plied. Iu the report of the oflicers of this institu tion lo tho Legislature of 1841 it is emphati cally asserted ''that the ickott of the means of the bunk stund as security for Ibis loan." The president of the bunk in his report to the legislature of date July, 1808, referring l to this subject, very justly observed " that it might w lib propriety be regarded us a debt uf the bank father than a debt of the State. The bonds und stocks wore sold and the funds placed tiudcr control of the bank, which wus charged with tho distribution of tho funds, and also tho duty of providing for the pay ment of the interest ami principal of tho obli gations ns they became duo." Tbo Legislature, undor act of December 21st, 1805, again pledged ami appropriated tho asset!' of the bank?first lo tho payment of the tiro loan bouda in t'.urope; second to Iho lire loan stacks iu America, and third to the bills ol the bank. Tho legislature, under act of Septembor 15th, lMtis, disregarded this contract with the holders of ibis loan, and directed the sale of the ussols. under the direc tion of tlm Goternor, the proceeds to bo sub ject U) the order of tho Legislature; and also authorized tbo funding of the bills issued prior to IVoember 20, 1800. The auto ot thu assets w?? enjoined by the court*, and the claim* of these several c buses or creditors uro still tlits subject of litigation The whole history of this loan, us read in the annual reports, both of the oflicers of tho bank and the comptroller general, conclusive ly proves that the inloresl on the loan as il accrued, nnd the principal as it matured, wero mado a piefeired claim U|?on the entire funds of the lunik. In 1843 tbo late C, M. Ftirmau, then cash ior of the bunk, imido a atalement showing tbo probable operation of the bank iu tbo payment of tbo public debt, iu which be showed that ou tho 1st of January, 1870, af ter tlio redemption of the lust instalment or tho tire loan, there would be a balance of fuuda iu the bank to the amount of $2,418, 927.35. I urn aware that the available o'-sots of tho bauk, according to the reports of the legisla tive committee of 1868, appointed to investi gate this mutter, if sold, would probably bo insuflicieul to cancel this cntiro indebtedness, vi/.., $824,124 ; but these facts havo been udducvd to show that they should bo so ni> pliod as far ns they will go, nnd tho deficien cy, if any. cou'd afterwards Iks provided for by the LegisSatutc. I reiiout, therefore, thnt the tiro loan bonds and stocks and tho thrao per cent, stock are not actual, but contingent debts of tho State. The actual debt is thus reduced to $15,027, 503.35. The aggregate amount of bonds and stocks originally issued under the sovoral acts au thorizing the issue of bonds und stocks for the construction ol tho new State House was $2,280,600. Of this sum $1,034,811.69 huve lx en cancelled, und conversion bonds issued iu lieu thereof, and $212.000 have I been redeemed, and $1,251,788.41 are now outstanding in their original form, as wi'l more fully np|ajar by reference to the state ment of tho bonded debt. The faith and funds of the St.de are sol emnly pledged for tho payment of the inter est nnd principal of this debt. Of tho amount outstanding $38,000 ol bonds ot 1853 are past due, and no provision has been made lor their redemption. The bonds originally issued under the act of 1854, as a subscription lo the Blue Itidge Railroad amounted to $1,000,000. Of this sum $34,000 have been converted and can celled, and couversion bonds issued in lieu, and $000,01)0 are now outstanding iu their original form. Unlike the liouds and stocks previously mentioned, no provision has been m.ale by pledge of the faith or credit of the Slate, or otherwise, for the payment of the principal or interest of these lionds. The bonds and slocks originally issued uuder the nets of September and December, 180?;, for funding the interest und principal of certain bond* nnd stocks past duo. aggregate $1,100,287.35, as follow* : Beads maturing In I8S7..., . fAov.oon ou Dumte maturing In lsii, . All.ni*> no Blued maturing in lssj. HG.isT Si Total. Sl.lGti.2s7 8.'. The total amount convened was .*15C 673.41, as follows : Bond* instating In 1*87. $4#tiou on Uotuts niaturtiiir In Isvi. 4u,<ou no Stm-v. maturing In lasj. AO.sts 41 Total.#15?. ?TS 41 Thu t.vtul lt.,1?.,.?. ...o?t.;.. 4,1,000, 613.94, as follows ; Bonds nistnrlug in Is?7. |uu,4oo 00 Bund* maturing In IS07 . 464,son iw HUvk. maturing In Iis;. 7v,4is 94 Total. .. tl.OOV.ClB 94 These two nets authorised th<j funding of the Interest due upon the outstanding bonds und slocks to tho 1st July 1807. amounting to $969,096.44 : and also thu funding ot the principal of tbo bonds of 1859, to uid tbo Blue Ridge Railroad, due iu 1805. amounting to $3K'.Ouo j also balance of certain *to?k, amounting to $3,706.46, making u total ! amount fundable of $1,289,801.90; total funded, $1,100,287.35: balance not yot fin-dud, $110,314.65 ; additional amounts paid In by parties to make even sums of $100, or $i0, $531.17: loss frsctioiuil amounts relin quished by stockholders, $2'J3 on ; balance liindsble $1 10.751.0:'.. The bonds originally issued under the act of August 26, 1 rtliS. to redeem the obligations known as the bills receivable of the State, amount lo $500.000. 'Ihese bills were issued under an act of Docombor. 1805. The amount redeemable under the act of 1S08, was $300, 000. (If this sum $298,702 wero redeemed by ex-Trouamer i'arkor, und $82 huvo been re deemed by the present treuauior, us ousii on account of taxes : there is, therefore, u bslsiicu outstanding ot $1,210. It npponiv, by tho re|K>rls of thu financial agenl, that ihONC bonds were s?dd for I 70 (Mills on iho dollar, realizing $350,000. I The total amount Ol bills redeemed by the pru 1 vious administration was, as before slated, $298,702 : tboro might, therefore, to huvo been a balance of dsh to the credit of this account on the 30th of November, 1 872, of $51,298. In comparing the aggregate receipts ami ox lwuditures of the Insl sdniiuistrstion, this amount is accounted for in the expenditure for general purposes, ??till 1 found it impossible to ascertain tbo object of expenditure to which il was actually applied. Uuder the act of August )6, I8G0, to au thorize a loan to pity interest upon the public debt, the Amerlcui Hank N'oto Company punted $2,000,000 in two issues. The lirst issue amounted to $l,ooo,ono. On account of some alleged omission, ihey were not consid ered as saleable as were other bonds of the State. It was, then fore, determined to pro ?>are a second issue of $1.000,000, and to retire and cancel tho tlrst issue. Of said issue $500,000 were retired aud de sliced by burning, as appoars by tho cerlilleulc of tivo of the officers of the exe cutive department; $50,000 were can celled and are on tile in the treasury ; $450, 000 were uever retired, nnd therefore exist as a debt of tho Slate. The entire amount of the second i?,siio was also negotiated. The total debt created under this act then amounts to $1,450,000. Of this amount $253,000 havo been cancelled, and conversion bonds issued in lion, and $1,107,000 nie outs' ' aling in their original form. in order lo ascertain what proportion of this debt is chargeable to the ante-reconstruc tion administration, the lollowiug inquiries should bo made I 1st. The whole period in months from tho [ date the interest was la.-t funded to the date to which Iho interest was payable under this 1 act, from the proceeds of the sslo of those I bonds. ? 2nd. What proportion of this i>eriod bo longed to Iho Btite-recoustriictiofl period, and 1 what proportion lo tbo post-rcconslructlon 1 period. I The languago of tin net is rather ambigu ous, but taken iu connection with the recom mendation oi tloveruo." Scott, in his first mes sage, which recommendation it was the ovi dent intention of the legislature (o adopt, it appears that Ihe proceeds from the salo of tbeae bonds wero lo bo applied to the pay ment of interest 011 the public debt, accruing from tho 1st July, 1867, to 1st July, 1869, a period of twenty-four mouths. The intoroat accruing from July, 1867, to August, 18C8, a period of thirteen months, in chargeable lothe ante-reconstruction period, and tbe interest accruing from August. 1808; to July, 1800, u period of eleven months, is chargeable to tl:t* post-reconstruction |x?iU?<t ; or, in other words, i:t-'24 of the eudrc debtnl $1,460,000; amounting to $785,410 66}-. is chargeable to tho former period, aud 11-24, amounting to $Cfi4,iH:t.a:tf. is chargeable to tho latter i* riod. It may Ih? proper to state, in connection with this subject, that the legislature, at its session of 1868-'09, appropriated $.r?oo,000 for tho payment of Hie interest dne far this sauio period, so tlutt there were really two sources of incomo to meet this iudebtednnss In comparing the auiuuut of moneys received from taxes, with tho moneys expended on ac count of appropriations for this Porno i*>riod. I it nppenrs tbni tho expenditures, exclusive of I the payments tor interest, exceeded the re ceipts from taxes, and therefore, it is assumed that the interest wns paid from the remaining source of revenue, vir.: the proceeds from tho ssio of these bonds. Under the act of September 16, 18(18, for funding the bills of the Bank of the Statu, iho American Hank Note Company printed $ I,?On, 000. Of this sum $1,259,000*wore issued, the others were cancelled unused. Of the amount issued $69,400 we reconverted nnd $1,189,600 are outstanding in I heir original form. The bonds prepared under the act of February 17, 1869, for tho relief of the treasury, amounted to $1,000.000, of which $101,000"were never issued, aud aro oincolled and ttlisl in the treasury; $4.1,000 of the renminder have been exchanged for conversion bonds and $856,000 are now outstanding in their original form. Tho stock originally issued under the act of March 23, 1869, for the conversion of State securities, amounted to $176,700; of which $711.700 have Ihmui converted into conver sion bonda. $0,000 represent stock transferred and $64,000 are outstanding in tho original form. The issue of the conversion stock is ex plained in this way: when application was made to tbe treasurer by ap -ison bidding a bond of the Stute to have the same ex changed for a conversion bond, tho treasu rer took up such bond und issued in lieu a piece of conversion stock of equal amount, which stock wns thou cancelled nnd exchanged for a conversion bond. This roumlalsmi pro cess was pruacril>cd by the ad for the conver sion of State soouriiie*. Several persons pre ferred to bold the conversion stock, aud. there fore, diil not carry the operation further, which accounts lor the outstanding balance of $r?4,noo before referred to. Of course this amount d<x-s not represent an inrrtfise of the public debt, but merely tepresonls in another form somo pre existing obligation. irUolU a..1 nf I-*<? :....I ... I the said not for tho conversion ol State secur ities waa $7,576,600. Of this sum $1,611, 6i)0 were issuod merely b> change the form of some pra-exlat'ng outstanding indebtedness, in the form, of bonds and sticks previously aulhori/Aid, und bunco do not represent un I ii>crra*r of tho public debt. The $:U.O00 of conversion bonds converted and cancelled arc tints explained. A person holdiug $1.000 of lumda of diner out classes (s iy lauding interest, etc., $:t00 of tho denomination of $100 ; funding bills Hank of the State. $500 of tho denomination of $50, and conversion, $"i?o of the denomination or $100.) would present them to the treasurer, ami rocoiv? in exchange a piece of conver sion stock of the denomination of $1,000, und iu oxchangft for said stock a conversion bocd of equal amount. Thus, $.'{4,000 of conversion bonds found their way back into Ihe treasury, and bonds nf the same class, but larger denomination, found their way into tho market without tncrearing the volume of debt. I repeat; therefore, that there are now out standing $1,677.500 of conversion bonds is sued in strict Hccurdnnce with law, which are merely the representative* of bunds and blocks of various classes, ami, in the aggre gate, of equal amount cancelled and Hied in Iho treasury. This statement is latsed ujsm my (lorsonul examination of said cancelled bonds nnd stocks, and may be relied upon aa aocurata in every particnlar. There aro also outstanding convcr>ioti bonds to tho amount of $5,tt65,000, which repre sent an actual inertatt of the public debt I It has been alleged that tlicsc bunds were hypothecated for security ot loans, by order of tho Fiuancinl Board, aud the moneys re coivod thore-from used to cover the deficit of revenue from taxation, or to '"bridge the eliasm " between the receipts sud appropri ations, and tho State being unable to redeem the bouda at tho maturity of tho loans, they were forfoited and sold, and thus, by the amount represented upon their face, increased the public debt. I will not venture to assert that these alle ntious are entirely at variance with the facts, I because I have licen unable to gel access to tho records ol tho Financial Hoard, or to ascer tain the exact time each particular loan wns negotiated, aud the amount thereof, as also j tho nmnuut of bonds forfeited for each loan the Stuto failed to discharge at maturity. Hut this I assert with certainty, that more than I one-seventh of said BUMMIM is accounted for in auother war. It appears, that on the 7th of December, 1870, the then treasurer of the State, in a letter addressed to tho Snsncial agent, (a copy of which is of record in the treasury,) staled that the Stalo owed a debt of $30:*, 343 89, duo iu 1870, known as Fire Loan Stock, and also a debt of $'.'50,000, duo in 1871, known as State Capital Bonds, which debts the liuancinl board bad instructed him, the treasurer, to discharge, with authority to make whatever arrangements might be neces sary therefor. Ho accordingly placi d iu said I agout's possession lionds for the conversion j ih* State securities, amounting to $800,000, | directing him to insko such use of said bond* as lie might doetn oeoesssry 10 redeem said obligations. The sequel of this arrangement shows that $213,000 of Slate capital bonds have been redeemed. $'20.'t,000 by tho I'.unncial agent, ! and $9,000 by the treasurer. Whether the entire amount realized from tho sale or hypothecation of the said $800,-j 000 of conversion bonds was barely sutllcient to redeem tlio $'212,000 of Stu'le capital bonds, (puichnso.il.In at that titno nt a price below 80 por cvut.,) does uot appear. In the absence of evidence to the coinrury, and in asmuch aa no Uro loan stock was redeemed, it may aafoly bo assumed, that such was actnally the case. The bonds issued under the act of March 27, I860, for the purposes of the Land Com mission, amount to $300,000, and under tho I ?et of Map Ii I, 1870, for tlio sumo purpose, to $."?00.000, making a total of $700,000. Of tlio first issue $76,000 hare been cancelled, and conversion bonds issued in lieu, aud of the second issue $167,000 havo changed their form iu the aamomanner,leaving $407,ooooutstand ing in their original form. This concludes the history ol the bonded in debtedness of the State. IXOATISQ IiKUT. Tbo lilt-Tent .'lie mid |uiyali|i> lllsm Ilm bonded debt,iNi the si?t of OeletW, Kl. OS -.|.|.. ,r. l.y-tli?> li. i-.nr. r'n tsrukr, pinoiinU 1?. #1,488,918 SO Tli.i InlerrX d?a and |inynl>lr ?Ii Iii? UUt of October, IBIS, atuuunU to_ 910,33* et T?tal Intcrrst. accrued aud accruing OctoUir 31, ts;;j. #<^4S,293 IS There is also an unfunded balance of $11C, 7f? 1 .C:t, ftinilable under the act* of September and December, I860, which may properly bo Included in the Homing debt of the Stute. The special committee appointed by tho LegislHtiire, session of 1872-7.1, to iuvest'gate l he amount of outstanding pay certificate* mill bills payable, reported that they had ex amined outstanding pay certificates and bills payable to the amount of $401,800.98. Tlio committee asked for further time to continue their examination, which was granted. It is assumed thut there is an additional amount outstanding, which tho committoo will prob ably examine aud report njion ut youi* nresont session. The total amount outstand ing n ay be safely estimated at $500,000. It is also eetimated that there is an unpaid balance of pay cert idea tea of the session of 1872-7:'., amounting to about $100,ooo. h appears by tho treasurer'a books that the State :s charged with tho ?um ol $1,797, 362.94, on account of $3,395,000 of bonds surrendered by the Blue Ridge Railroad in accordance with the provisions of an set of the legislature, approved March 2, 1812. There is also upon tho treasurer's book a largo miscellaneous floating debt, including unpaid free school fund, and all unpaid ap propriations, not paynbio as deficiencies after October 31, 1*7.:, which is estimated at about $460,000. BSCAnTtTLATtOM. Int.-r. st ujion Beaded Isrbt to ?>. i.-b. r 81, ls>7.:.#2,S42,2?SI8 Hebt tuudaUe uiii'.rr Acl? bvntt-mlivr sad December, l^&G. 1I0.IM6S Pay eerUScales and Mit? i>u> ui-i.. s,-?..i..in? nf 1870-71,1871-7?. 500.000 00 Pay ecrtlBcutcs nation of ls^-is... loo.eooou l)< l?l du? 111uv ttl.lue Uallnwil . l,7v7,8tY! 94 Mi . Iloic ? im I- 'i, inn; 1?, Iii. 450,00000 T.-ui.#a,sos,se7 7? Ponded Debt.#15.C>T^OS S5 lluaUaxDehi. o,80?,8>7 "a Agg rjut* Floatlag ami Kun.le.1 l>t>i.i .. .?sn.ssa.soi is The passive, or do-nothing policy which lias ooCaiiu-u bi ino iicnuiiebl ut llio pU?uC debt, since 1871. has unquestionably proved disasirotis to the credit of the State. The lax payer, relieved for the time being from the payment of an oxira tax, regarding the bondholder us a parasite, living at the ex peuse of forced contributions from At* small and insufficient revenue, "reaping whore he has not sown, ' has been dis'iosod lo let tho debt and tho holders thereof tako care of themselves; hoping thai some bt-mtlceni providence would uliiu.atuly reliove him of the burden ; caring little whether relief came from repudiation or tho assumption of tho debt by i he national government. Rut In lite meanwhile tbo unpaid interest accumulates; the probability Of tlio assumption of our debt by the national government is remote; threats of repudiation begin to assume tangible abaps and citizens are found bohl enough to give them utterance; the bonds of the State are no longer enquired for at the slock exchange; tho credit of thu Slate is lost almost beyond redemption. It is patent to tho unprejudiced mind that unless wo propose to adopt iu this State that policy which has made the name ol tho once proud State of .Mississippi infamous in tho commercial markets of tho world, such prompt, immediate action is imperatively demanded as Will demonstrate lO ill" creditors of th9 State onr houesl determination to adjust and settle our enliie indebtedness according to our best ability. No one doubts that to levy at this time a tax large enough to cancel our floating indebt edness, or even to pay tho accrued and accru ing interest upon tho bonded debt, would paralyze the business energies of the State, end would be equivalent to an actual confiscation of the property of evdry citizen. To fund tho whole of tho floating debt at par would increase tho public debt of tho State. This is expressly forbidden by a recent umemlment to the constitution, unless two-thirds of tho qualitled electors of the State, voting upon tho ques tion, should give their assent to such increase Kveu assuming that their assent to such increase could be obtained, the present condition and resources of the Stato do not warrant the coilcciion of an annual tax ot about nine mills on the dollar, in addition to all other taxes, to pav interest upon tbo public debt. The question then arises what is to bo done under the circumstances 1 Tbero are thoee who oven object, strenuously, to the levy of any lax at all for the present to pay interest; but u t must either ptiy tu repudiate. If from January 1871 to October 1873 does not furn ish the tax payer a sufficient breathing spell to prepare thu way for ibe resumptkiu of the interest payments, then three additional years with all their interest accumulations will not afford it. But 1 am satisfied that this class of grumblers comprises but a small minority of the tax payers of the Stale. Thru would grumble whether tbo lax bo onr mill or ten. Taxation is considered an evil always tobe shunned; but there arc evils much ttH?$e than that. Tbo loss of credit, public and private, the tout in nation of such action as will bring discredit upon the lair name of tbo State and cloud tho honor und ultimate good intentions of the jieoplo with suspicion of dishonorable repudiation. History is pregnant with illus trations of the fact that auch a remedy is far wot so than tho d mease. It is ir: cloven I to our present pur|H>se to reflect upon the way the debt bos tieen contracted, or to estimate whal consideration the Stale received hi return. Tha debt ex isla, and sound public policy demands that some provision lie made *t once for ita adjustment. The language of the treasurer of North Carolina in bis annual report of November, 1872, applies with peculiar force lo tbo prw*on% condition of affairs in this state I can do no better than quote his words end recommend their careful perusal and cotisiderat ion: " I much fear, whil? I do not apprehend) sess