CHAPTER IX. 



TAXATION AND DEBT. 



The fiscal history of South Carolina presents many remarkable vicissi- 

 tudes. Periods of great financial embarassments and depression have not 

 been wanting, but they have never discredited the industry, economy or 

 integrity of her people, and the recurrence of eras of great prosperity 

 illustrate the recuperative powers with which the manifold resources of 

 the country have endowed it. 



The first tax, for the sum of £400, was imposed in 1682, twelve years 

 after the settlement of the colony. During the twenty succeeding years 

 the taxes aggregated £2,320, and the largest amount raised in one year 

 was £800. 



Between 1702 and 1720, wars with the Spaniards, the Indians, and the 

 pirates caused an augmentation of taxes, and during this period they 

 amounted to £215,000. A tax of ten per cent, was laid on skins * and 

 furs, and a duty imposed on goods and merchandise imported into, and 

 exported out of the province. The custom duties were a source of in- 

 come until 1790, when their collection was transferred to the Federal 

 government. Specific duties were laid at this time on the importation of 

 negroes ; real and personal property was taxed, and a tax was appor- 

 tioned among the merchants and inhabitants of Charleston. The As- 

 sembly also issued bills of credit to the amount of £33,000. A land bank 

 was established to promote the rapidly increasing and successful culture 

 of rice. It emitted paper bills to the amount of £52,000. The deprecia- 

 tion of this paper currency quickly ensued, exchange and the value of 

 produce rose two hundred per cent, in two years, and in 1722 the value 

 of this paper money was fixed at four for one of sterling 



Under the Rojul government warm disputes between the diff'erent 

 branches of the Legislature for and against the issue of bills of credit 

 occurred. The King's council refused to sanction the paper money, and 

 the provincial House of Commons declined to concur in passing any legis- 



*Inthe early settlements (as in Newberry) deer and beaver skins were used as cur- 

 rency, and were a tender in law in payment of debts, being rated at certain valuations 

 for tiie(Jifferent sorts, as summer and winter dressed, or undressed skins, provided they 

 weighed one pound or upwards. 



