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SUPPLEMENT TO Andersen intelligencer GO??HPS McSf EEIY'S SECOND fflU?L MESSAGE, Reviews Conditions in Sotitl Carolina and Recommends Legislation Deemed Desirable. THE STATE'S INDUSTRIAL PROGRESS IS IOST NOTABLE FEATURE OF TEAR All the State Institutions Are Reported in Excellent Con dition and the Treasury Department Has Borrowed No Money-The Cause of the Common Schools is P'rca?ly Urged Upon the Peo ple's Representatives. Gentlemen of the General Assembly : It is gratifying to me to welcome you as the vepresentatives of tue people under.such favorable conditions. You come as the first Leg islature to assemble in South Carolina in the new century. The Nineteenth century has been one of marked progress and develop ment in all the arts and sciences, and it contains lessons which we may. learn with profit to ourselves and which may be of use to us in legislating for the future. Those who constituted the first Legisla- . ture one hiririred years ago little dreamed of the advance in all lines of industry, and of the discoveries and inventions which havfc signal uejd.lhe.century just passed into history. We cannot realize or even conceive the advances that will be made during, this century upon which we are entering. There seems to be almost no limit to the achievements of the human mind. It is for us to contribute our part to make the world better and happier by our having lived in it and to leave to our children a goodly heritage and a name untar nished. It is your privilege to meet and to counsel with one another and to consider and enact such laws as will be of benefit not only to the present but to the future growth and development of this grand old commonwealth. The march of material progress and the development of the State, to which I had the pleasure to refer one year ago in greeting the members of the Legislature, has kept up with steady and sure step. The business depression through which, the people had passed and which was almost unprecedented seems to have been followed by a revival which is touching all branches of industry. The increased price which our farmers have received for their staple crop makes large amend for the falling off in the yield. Our farmers a relearn ing the importance of diversified farming and in consequence are be coming more independent. You need no better evidence of the progress and prosperity of the State than that presented in the figures contained in the annual report of the Secretary of State. From this report it will be seen that approximately fifteen million dollars were invested the past year in South Carolina companies ; and while a large proportion of it is in cotton mill building, yet many smaller manufacturing enterprises and industries have been organized. New manufactories continueto go up and we are no longer simply an agricultural people but are fast becoming as well a manufacturing State. We how lead all Southern States in the manufacture of cot ton goods and are second only to Massachusetts in the number of spindles, and at thc present rate of progress will soon lead all the States in the Union in t? ii s important branch of industry. It is well to keep this fart in mind as you deliberate. ' Taxable values have increased $4,245,695 during the past year, as will be seen from the Comptroller General's report, but the increase is not near as large as it should be or would be if our system of as sessment and taxation were so revised and amended as to have placed on the tax books all the property of the State new escaping taxation and if that which is assessed were equitably assessed. Peace and good order have characterized our people during the past year. We.ha ve not been visited by plague or pestilence and no resort to mob violence has marred the record or stained the fair name of the State/though in one or two cas?s the strong arm of the mili tary had tb be called into requisition, but thc majesty of the law was maintained and no blood was shed. In one case there was strong provocation for summary justice, but with the assistance of the mil itary the culprits were, protected, lawlessness was prevented, and through the ordinary channels of the Courts stern justice will be ad ministered and the penalty paid. Yoii as the chosen representatives of the people should guard with Jealous eye th?ir interests and welfare which have been committed to your keeping, remembering always thc responsibility which rests upon you; FINANCES. I take pleasure in calling attention to the very creditable showing which the Treasury Department will bc able to make as to the finan Cl*l transactions of that department for thc fiscal year closing De cember 3*, 1900, as will .appear from the statement of. receipts and disbursements below.' .The Treasurer, by his strict attention to duty, and tth?s ?ir^fonr: courtesy with which he has treated all parties hav ,n? business relations with his department, deserve? high commen tb: .. ;? . .' ? .I1...>?^S^L' v.; \.-..TU'. ':i>>v v...... . ..-.':'-..< ...'..*,.....-'';;.".*.' '.V . ii;-. - . j. . *..'.'.'.;? - . : ? .' mV- limiMlnHIHHUMWilli1 Hill H ' dation and I feel quite, sute tittie will receive in retiring from the office, which he has so w^rthily 'fiUed, the hearty well-done of all the people of the State. Cash Receipts for year eadine Hi-cerr-ber 315t, ?yoo. Cash balanc?, Dec. 31, 1899.... $ 508,875 65 Back Taxes..,. 1,071 63 General Taxes 1899.... / 606,51091 General Taxes, 1900..,., 392,476 69 Railroad Assessments for R. R. Commis sioners .?. .,.. 10^381 64 Income Tax. 1,660 cy Annual Insurance License Fee... ?...... 13,100 00 Graduated Insurance License Fees. 99 Fees, Office Secretary State...?. 9?45o 22 State Penitentiary. 10,000 00 Privilege Fertilizer Tax.. 75.214 34 Commissioners Sinking Fund. 44.029 00 Sinking Fund for Reduction Brown 4^3 percents: Loans returned.$91,241 50 Interest on loans and deposits. 17,995 84 Phosphate royalty.23,475 01 Permanent State School Fund : Interest account. 2,225 99 Principal (escheats). 277 32 132*712 35 - 2,503 31 Special State School Fund (Dispensary). 100,000 00 Morrill Fund from U. S. Government..... 25,000 00 Insurance Sinking Fund (public build ings) ....... . .. - 73 75 Incorporation r ces. 60 00 Diepensary, S. C.. . 1,913,06976 Refunds-sundry accounts. 2,384 70 $3>76o>452 01 Cash Payments-for Year Ending December 31, 1900. Salaries...,. $ .148,731 50 Legislative Expenses. 40,895 77 Education, Charitable and Penal Institu tions .-, . 274,60623 Pensions. 100,815 71 State Special School Fund. 100,684 5T Interest on Bonds and Stock. r. 273,456 59 Sinking Fund for Reduction.Brown 4j/? per cents :-'Loans. 70,600 00 Commissioners Sinking Fund........42,048 18 Clemson College : . \ Privilege Fertilizer Tax.$70,114 51 Interest Land Scrip and Per manent Fund .......... 9,266 36 Morrill Fund. 12,500 00 State Col. Nor., Ind., Agr. and Mech. Col leg? : Morrill Fund. 12,866 23 Interest Land Scrip......... 5,75400 91,880 87 18,620 23 Public Printing. .11,258 62 Election Expenses. 19,24888 Quarantining State . 20,234 1 i Erecting Monument at Chickamauga..... 5>392 15 Permanent State School Fund. 2,320 00 Direct Tax Proceeds-Act of 1884...... 1,116 90 Miscellaneous Accounts.vi 43,470 82 Dispensary. S. C-, Account proper.$1,779,031 98 Transferred to School Fund 100,000 00 - i379?^3i 98 Cash Balance, December 31, 1900. 625,438 96 $3-760,452 01 The claims of the United States Government against the State of South Carolina for the payment of which at one time the State was seriously pressed and notice of suit, given, are now in abeyance for want of authority to prosecute said claims in the Courts. And it is br:ted that an equitable adjustment and settlement of the counter claims between this State and the United States will be effected by appropriate Congressional legislation which will be final, without the payment of any moneys by the State. The State of South Carolina holds United States 4 per cent, bonds with interest payable quarterly to the amount of seventeen hundred dollars, which mature on July ist, 1907. The State Treasurer re ceived a circular letter from the Treasury Department at Washing ton, D. C., calling attention to Section 11 of an Act of Congress passed and approved March 14th, 1900, proposing to exchange these and simila* bonds for two per cent, gold bonds. The Treasurer does ; not think that he has authority of law to surrender and exchange the bonds now held by the State. If the General Assembly should deem it advisable to make such exchange it would be necessary for special legislative authority to he given him. At the close of each fiscal year, it is always a matter of anxiety and doubt to the Treasurer as to whether he will have at command funds to meet the January interest on the public debt and the current ex penses of the State governrnent. :This state o? affairs arises from the delay in collecting the State taxes under existing law. If the tax books were made, to close on the 15th of December instead of the 31st of December, a? is and has been the case for the last few years, this doubt and uncertainty would be removed and no one be oppressed thereby. It is well known that those most able to pay their taxes are generally the last to do so. Notwithstanding these drawbacks, we have been able to meet all demands against the Treasury without re course to borrowing or over-drafts upon banks. In my Annual Message io the last General Assembly I asked their attention to the condition of certain bonds to which minc had been called by the Treasurer, to wit: thirty-seven (37) bonds of $1,000 each, issued by the State in #59 in aid of the Blue Ridge Railroad, and which have heretofore been carried on the Treasurer's books ns "Cid. Bunds Fundabie," but which can now no longer be so carried. These.-bonds among others, it has been established in the Courts, were plundered and rifled from one of thc old banks of this State known ?s the State Bank-by Sherman's army in its march through the State in 1865. Notice was immediately given of thc loss of the bonds to the Treasurer, and that c?Sccr was cautioned not to recog nize any one presenting them as thc owner. Under the Act of 1869 requiring the old banks to resume business or go into liquidation the Attorney General of thc State had this bank put into the hands of a receiver, and so thc winding up ot its affairs has been from that time under the direction of thc Attorney General. Upon his motion in 1870 an injunction was issued enjoin ing the Treasurer from paying any of these bonds without thc sanc tion of the Courts. All but the said thirty-seven bonds, or thirty eight, for there seems to be some question as to one, have been from time to time recovered and funded, and the proceeds distributed under thc direction of ?he Courts. There have been several applications to the Legislature for leave to fund the said thirty-seven or thirty-eight bonds, and proceedings in the Courts were had for mandamus to require thc Treasurer to clo so without further action of the Legislature. In all of these thc mer its of the case have been thoroughly investigated, and thc Courts have declared the bank the owner of the bonds, and its receiver the only person entitled to fund them. In the mandamus proceedings, in which all the judges in the State were called to sit en bane, (though all but two ultimately decided that the Treasurer was not authorized to fund without special action of the Legislature, two holding that he was and that the receiver was entitled to have the lost bonds funded without such action) the judges were unanimous as to thc merits of the claim. Previous Legislatures have hesitated to allow thc bonds to be funded, fearing that some one might possibly turn up with the bonds, and claim to own and fund them as an innocent holder. But as ? pointed out last year this danger is now removed, as in this case the twenty years from maturity, during which these bonds might have been funded by the Treasurer upon their presentation and deliv ery to him by any such holder, expired on the ist of July, 1899, an(l any such holder is now barred under the Act of 1896. Under these circumstances, the claim of the hank to he allowed to renew and fund these bonds in my judgment is valid and just, and should be allowed. It is not denied that the State owes thc bonds io some one-they are carried as part of the old debt of the State on the books of the Treasurer as owing to some one-thc Courts ha vu de creed the bank to be thc owner-no one else can now claim them, as all persons but the bank are barred under the Act of 1896 from doing so. It seems to me that in the face of these facts it will bc a little short of repudiation if we continue to refuse to allow thc receiver of the bank to fund these bonds. In some States, provision is made for the renewing of lost or de stroyed bonds, without requiring action of thc Legislature in specific cases ; if might be wise in this State to make a similar provision, as the renewing of such lost evidence of indebtedness should be a matter of judicial rather than legislative inquisition and remedy ; and for the further reason that everything which adds assurance to the creditor that he will bf paid even though he loses the paper evidence of his debt adds to the credit of the State. I have gone somewhat into the merits of this matter as I cannot but feel that the credit and honor of thc State are now to some extent in volved. I earnestly recommend it to the attention of the General As sembly as one upon which some action should bc taken, for thc bonds can no longer be carried on the Treasurer's books as "Old Bonds Fundable." EDUCATION. Not the least gratifying evidence of our progress is thc remark able awakening in all departments of education. At thc beginning of the century just closed the civilized world knew no such thing as a State system of education ; and in many quarters, until a compara tively recent elate, the.position of those who advocated free public education as a legitimate function of State government was stub bornly contested, the opposition in our State being largely due to peculiar racial and social conditions. State education is now thc settled policy of our country, being recognized as both a function and a duty;of the government; and it may well be questioned whether the nineteenth century has( made a more important contri bution to the cause of democracy and civilization. Since 1870 thc public expenditure for common schools in the United States has nearly trebled, being now $2.67 per capita of population, or an ag gregate of $200,000,000 annually. It is a principle now well recog nized, that the safety of the government ;*self requires that it give its citizens the opportunity to fit themsel.es for an intelligent dis charge of their duties to the State. Encouraging reports come from the schools and colleges of our own State, indicating that they have entered upon an era of unex ampled prosperity. And yet much remains to be done to increase the efficiency of our public schools. The first essential is teachers of high moral character and adequate professional equipment. Our teachers have better opportunities for professional training than ever before, and they show a higher average of intelligence and pro fessional fitness; but they are too often poorly paid for their ser vices, and the best results cannot be expected until the schools, in stead of advertising for bids from teachers, offer adequate pay and demand good qualifications. The complaint is made, and not unjustly, that our school system is not well articulated; that no provision has been made to fill thc gap between the common school and thc college, and that the col lege must therefore maintain a preparatory department. While it is true that very few of those who enter the common school ever reach the nigh school, and fewer still thc college, yet those who de sire to fit themselves for college should have the opportunity to do so in their own schools. This deficiency has been met in many of thc towns, and in some of the country districts, by thc erection of graded schools ; but in most of the country schools inadequate pre paratory training is offered. Thc result is that many of the country pupils who desire to compete for scholarships in the State colleges, or who desire to enter college, are at a manifest disadvantage, and must either employ some one to coach them, or must attend a pre paratory school or graded school in town, at a considerable outlay for board and tuition. The importance of levying an additional tax for the support of the country schools cannot be too strongly urged upon our people. This will enable them to employ competent teachers for longer terms : it will citable them to give their children elementary and pre paratory training ac home; and it will tend to check the abnormal flow of population from the country to the town ; it will be bene ficial from every point bf view. While it is possible for the graded