SOUTH CAROLINA. 



690 



ly actuate the great majority of the people, it is the 

 purpose of this convention to attain the ends above 

 indicated, and such other kindred measures as may 

 appear necessary hereafter, by such peaceful and 

 legitimate means as comport with the duty of good 

 citizenship, and not otherwise. 



The convention gave considerable attention 

 to the question of minority representation, 

 alluded to in the platform above. The subject 

 was referred to a special committee, who ex- 

 amined the cumulative system of voting, and 

 reported in its favor, with a formal request to 

 the dominant party of the State to adopt it in 

 justice to the minority. The Governor, in his 

 message to the Legislature of 1871-72, refer- 

 ring to this report, said that he recognized 

 the principle of minority representation as 

 both wise and just, but he added: 



Here the majority are organized on a basis which 

 practically calls in question the very principles and 

 the fundamental laws upon which the State and na- 

 tional Governments repose. The end sought by the 

 proposed system could long since have been prac- 

 tically accomplished, but for the bitter spirit of in- 

 tolerance engendered and fostered by party leaders 

 of the opposition among their followers. 1 submit, 

 however, for your deliberate consideration, whether 

 the men who are now demanding the establishment 

 by law of the system of minority representation, are 

 entitled to this act of magnanimity at your hands. 

 It is for you to determine whether the line of policy 

 pursued by them tends to commend the speedy 

 adoption by you of an elective system which must 

 largely increase the number of those in the General 

 Assembly who are hostile to our system of free gov- 

 ernment. 



By vote of the convention, the Governor 

 was requested to extend the time for the pay- 

 ment of taxes in the cases of those to whom it 

 was not expedient to pay, or who could not 

 make payment within the prescribed period. 

 In accordance with this, the time was ex- 

 tended from November to March. 



In September the first definite statement of 

 the State finances was made by the Governor 

 in response to a request of the sub-committee 

 of the joint select committee of Congress, ap- 

 pointed to inquire into the condition of "the 

 late insurgent States." The following is the 

 substance of the document: 



Amount of bonded debt existing prior to 

 the war $4,046,54016 



Amount of bonds issued by provisional gov- 

 ernment 1,023,473 94 



Amount of bonds issued by present admin- 

 istration 4,458,550 00 



Total issue of bonds and stock $9,528,564 10 



During the present fiscal year the bonded 

 debt has been reduced by payment of 

 bonds dne July 1, 1871, amounting to $250,000 00 



Amount of bonds held by the State Sinking 

 Fund $100,000 00 



Statement of Bonds and Stock issued &?/ the State during 

 Vie, Eebdlion, outstanding October 1, 1866. 



Six per cent, bonds for military defence is- 

 sued under Act of December, 1860, balance 

 unpaid $239,200 00 



Seven per cent, bonds for military defence 

 issued under act of January, 1861 191,150 00 



Seven per cent, stock for military defence 

 issued under act of December, 1861, to 

 amend act of January. 1861 296,780 00 



Seven per cent, stock for military defence 

 Issued uuder act of December, 1861 1,514,710 00 



$2,241,840 00 



Contingent Liabilities of the State of South,- Carolina, aria- 

 ing from tfie Indorsement of 'Railroad Bonds. 



South Carolina Railroad bonds payable in 

 1868, secured by fl ret mortgage $93,312 40 



Northeastern Kailroad bonds, payable 

 March 1, 1869, secured by first mortgage. . 92,000 00 



Charleston & Savannah Kailroad bonds, 

 payable in 1887, secured by first mortgage 505,000 00 



Charleston & Savannah Railroad bonds, 

 payable in 1889, secured by first mortgage 245,750 CO 



Spartanburg & Union Railroad bonds, pay- 

 able in 1878-'79, secured by first mortgage 350,000 00 



Greenville & Columbia Railroad bonds and 

 certificates of indebtedness, payable in 

 1881-'82-'83 and '88, secured by first mort- 

 gage 1,426,545 80 



Blue Ridge Railroad bonds under Act of 1868 4,000,OCO 00 



Total $6,712,608 20 



The original amount of indorsement for the South 

 Carolina Kailroad was 2,093,312.40 ; $2,000,000 of 

 which has since been redeemed by the Kailroad 

 company. The indorsement of the Lauren s Kail- 

 road amounted to $75,000. This road has gone into 

 bankruptcy, and the State is fully secured. In the 

 event of any of the above roads failing to meet the 

 interest on the guaranteed bonds, the State is per- 

 fectly secure, from the fact that the iron alone on the 

 road would sell for more than sufficient to indemnity 

 the State against any loss, were it put up at public 

 auction. The Blue Kidge Kailroad is as yet un- 

 finished, but in a rapid course of completion, and 

 none of the bonds have yet been put on the market. 



Early in the fall the Governor, Treasurer, 

 and other State ofiicers, were openly charged 

 with making, through the financial agency of 

 the State in New York, an over-issue of State 

 bonds to the extent of at least six millions of 

 dollars, and startling reports of other frauds 

 and of the determination of the majority of 

 the tax-payers of the State to repudiate a 

 large portion of the newly-created debt, were 

 extensively circulated throughout the country, 

 causing considerable excitement in financial 

 circles. The Governor, in reply to the charges, 

 issued the following circular from New York, 

 on November 5th : 



To the Public." Many false representations and 

 statements have been made and published against 

 the credit of the State of South Carolina. It is true 

 that $20,040,000 of bonds have been printed, of 

 which amount $9,000,000 have never been signed or 

 issued, nor were they printed with the intention to 

 increase the State debt, but are in the possession of 

 the State authorities ; also, $3,500,000 sterling bonds 

 have been printed but not issued, and $2,500,000 of 

 registered stock are now in the hands of the Treas- 

 urer of the State, being a balance of $5,040,000 is- 

 sued. 



550 00 The Legislature from time to time passed several 

 " acts for the issue of bonds " to pay the indebtedness 

 of the State." Subsequently it passed an act for 

 the conversion of its securities. To provide for this, 

 the above amount in bonds was printed, which has 

 given rise to many groundless misrepresentations 

 and gross fabrications. 



R. K. SCOTT, Governor of South Carolina. 



NILES G. PARKER, Treasurer. 



JOHN B. DENNIS, Chairman of the 



Committee of State Accounts. 



A further explanation was made semi-ofii- 

 cially, as follows : 



The government has been ^authorized to issue a 

 new form of bond for consolidating and extending 

 the date of the outstanding obligations of the State, 

 amounting to about $11,000,000. In the process of 

 consolidation and conversion, $5,040,000 of these new 



