(150 TAXATION AND DEBT. 



Even these measures failed to secure an honest administration of the 

 debt. The Comptroller-General of the negro government reported, in 

 1875, that the volume of consolidation bonds had been much increased 

 by the funding of a " large amount of coupons, although the records of 

 the treasury prove that they had been previously paid." 



This was the state of affairs in .January, 1877, when the United States 

 troops were withdrawn from the State House ; the negro government al- 

 lowed to fell to pieces, and the white citizens permitted once more to 

 take part in the administration of affairs. 



On October 31st, 1877, the State Treasurer reported that 



The principal funded under the Act of December, 1873, 



amounted to $4,396,290 



The principal then still fundable under the Act amounted to 

 $2,704,551, which, at the rate established by the Act, 

 amounted to 1,352,276 



Total principal $5,748,566 



It was found necessary to appoint a commission to investigate the in- 

 debtedness of the State, under the Consolidation Act. The irregularities 

 discovered by this commission were so numerous and important that the 

 Legislature, in 1878, created a court, known as the " Court of Claims," 

 with jurisdiction to hear and determine cases testing the validity of the 

 consolidated bonds, coupons, and certificates of stock. A number of 

 cases involving issues of law and of fact were determined by this court, 

 and on appeal, b}' the Supreme court. In 1879, the Legislature appoint- 

 ed a special commissioner to ascertain, in accordance with the decisions of 

 the courts mentioned, and to establish the validity or the percentage of 

 validity of each consol bond, certificate of stock, or of the unpaid interest 

 thereon. The holders of these consols to have the right to surrender the 

 same for cancellation, and to receive new consols from the State Treasurer, 

 bearing interest at six per cent., for the exact amount reported valid in 

 the consols surrendered. These new consols, issued after February, 1880, 

 are engraved from the same plates as the green consols issued under 

 prior Acts, ])ut are distinguished by their color, being brown. 



The " deficiencies," or floating indebtedness, left by the negro govern- 

 ment, was adjusted by a " Court of Claims " established in 1878. '' De- 

 ficiency " bonds and stocks, bearing six per cent, interest, and payable in 

 ten years, were issued in settlement of such portion of these claims as the 

 20urt adjudged valid. 



By the^e means the final adjustment of the debt of the State has been 



