732 



SOUTH CAROLINA. 



November to the 13th day of March, related 

 more or less to financial matters. A move- 

 ment looking to the impeachment of the Gov- 

 ernor, to be followed by an investigation of 

 his administration, and the punishment of 

 those found guilty of irregularities in office, 

 miscarried from the start, the resolution for 

 impeachment receiving but a small vote in the 

 Lower House. 



The act of March 7, 1871, to create a ster- 

 ling funded debt, "the same, or the proceeds 

 thereof, to be exclusively used in exchange for 

 or in payment of the existing public debt," 

 was repealed. An act was then introduced 

 and passed after an extended debate, entitled 

 " An act relating to the bonds of the State of 

 South Carolina," but generally known as the 

 "validating act." This was preceded by the 

 following preamble : 



Whereas, Bonds or obligations of this State have 

 been issued, from time to time, to a large amount, in 

 accordance, as was supposed by the officers issuing 

 the same, with the authority and provisions of cer- 

 tain acts of the General Assembly, including " An 

 act to authorize a loan to redeem the obligations 

 known as the bills receivable of the State of South 

 Carolina," approved August 26, 1868 ; also, " An act 

 to authorize a State loan to pay interest on the pub- 

 lic debt," approved August 26, 1868; also, "An act 

 to provide for the appointment of a Land Commis- 

 sioner, and to define his powers and duties," ap- 

 proved March 27, 1869 ; also, u An act to amend the 

 last named act, and for other purposes," approved 

 March 1, 1870 ; also, " An act to authorize a loan for 

 the relief of the Treasury," approved February 17, 

 1869 ; also, " An act to provide for the conversion 

 of State securities," approved March 23, 1869 ; and 

 " An act to authorize the financial agent of the 

 State of South Carolina, in the city of New York, 

 to pledge State bonds as collateral security, and 

 for _ other purposes," approved March 26, 1869; 

 which said bonds are fully and particularly stated, 

 and set forth in a report made by the Treasurer of 

 the State to the General Assembly, dated October 31, 

 1871 ; and, whereas, doubts have arisen whether said 

 issues^were in strict conformity to the provisions of 

 the said several acts under which they were respec- 

 tively issued ; and, whereas, it was the true inten- 

 and meaning of the several acts above set forth that 

 such issues of bonds or obligations should be made 

 in the manner in which the same have been made, 

 as aforesaid ; and, whereas, also, doubts have been 

 raised as to the validity of some of the bonds men- 

 tioned in the said annual report of the State Treas- 

 urer, for the fiscal year ending with October 31, 1871, 

 although money has been borrowed, or realized out 

 of, said bonds on account of this State ; and, where- 

 as, the credit of this State has been affected thereby : 



It is, then, formally enacted that the said 

 bonds and obligations " were duly and lawfully 

 issued in conformity with the true intent and 

 meaning of the several acts of the General 

 Assembly," set forth in the preamble. The 

 acts of officers under the laws of the State 

 and of the acts enumerated "to the extent of 

 all issues of bonds or obligations enumerated 

 and set forth in the said report of the Treas- 

 urer," are, " in all things, ratified, confirmed, 

 and established." Each and all of the bonds 

 referred to are declared to be " legal and valid 

 bonds of the State of South Carolina, for the 

 payment of which the faith, credit, and funds 



of the State have been, and are hereby, 

 pledged: Provided, That no bonds be included 

 which are not registered in the Treasury at 

 the time of the passage of this act, as provided 

 for in section 14, article 9 of the constitution, 

 relating to finance and taxation." 



The section of each of the acts under which 

 the bonds were issued, which provides for an 

 annual tax to pay the interest, is made a part 

 of this act, and an annual tax, in addition to 

 all other taxes, is provided for, sufficient to pay 

 the interest until the principal share become 

 due. All bonds hereafter issued are to be of 

 the description and style of those issued under 

 "An act to provide for the conversion of State 

 securities," approved March 23, 1869, so that 

 all the bonds of the State shall be of one 

 style and description when the exchange is 

 made. The bonds named in this act are all 

 to be duly signed and countersigned and 

 sealed, and the Commercial "Warehouse Com- 

 pany, in the city of New York, and' the 

 Carolina National Bank at Columbia, are 

 designated as the authorized places for reg- 

 istering the bonds, coupons, and stocks of 

 the State. No interest is to be paid on the 

 stocks and bonds until they have been duly 

 registered. This bill was passed by a vote of 

 17 to 10 in the Senate, and 50 to 39 in the 

 House. The following protest against the 

 passage of the bill was signed by five Eepubli- 

 can and four Democratic Senators : 



We protest against the passage of a bill relating 

 to the bonds of the State of South Carolina, for the 

 following reasons : 



1. If there have been no bonds of the State of 

 South Carolina issued without authority of law, 

 then the requirements of this bill are presumptuous 

 and unnecessary. 



2. If the several acts cited in the preamble of th 

 bill justified the financial managers of our State 

 government in the issue of a larger amount of bonds 

 than the public and the General Assembly supposed 

 had been issued, and the true intent and meaning of 

 the said several acts was the warrant and authority 

 for such an issue, then no greater force or legal 

 strength can "be legislated into the acts of the officers 

 of this State by the specious declaration of this hill, 

 viz. : That the said bonds and obligations issued on 

 behalf of the State, as set forth in the report of the 

 Treasurer of this State to the General Assembly, 

 dated October 31, 1871, were duly and lawfully 

 issued in conformity with the true intent and mean- 

 ing of the several acts of the General Assembly. 



3. That which is already valid and cannot be over- 

 thrown or set aside, by virtue of its legality or equity, 

 needs no additional act of legislation to convince 

 confirm the public mind of its soundness. 



4. Because, such has been the character of the 

 statements made by the officers of this State as to 

 the public debt and the prodigal issue of bonds, to 

 increase the same, which would not have been dis- 

 closed, even at the present moment, had not the fact 

 been unwillingly wrung from then, that doubts have 

 arisen in the public mind, not only with regard to 

 the integrity of the said officers, but the legality of 

 their action ; and from such a combination has the 

 credit of the State been aiFected, which cannot be 

 repaired by the questionable passage of a bill ratify- 

 ing and confirming in all things all their acts and as- 

 sertions. 



5. The hill gives these officers a renewal of author- 

 ity to continue the issue and conversion of bonds 



