and $300,000 in Jan. 1846. For the first, provision has been made by charging it upon the Bank. But by some oversight, in 1824, when the debt of $300,000 was created, it was not charged upon the Bank or Sinking Fund. A question, therefore, has been submitted by the President of the Bank, whether this demand can now be charged upon the Bank, inasn uch as by subsequent Acts of Assembly, these funds have been charged with the payment of other debts. This question strikingly developes the impolicy of making such specifie pledges by the State, whereby any preference may be inferred in favor of one public debt over another. But as the Committee have desired to avoid any, even the slightest, imputation upon the public faith, they have concluded to recommend that the $200,000, balance remaining in the Bank from the Surplus Revenue, shall be carried to the Sinking Fund, upon condition that the Bank shall undertake to discharge the debt of $300,000 as it becomes payable. The result of these operations will be, that at present the Bank will extinguish of the Public Debt---. And will pay in 1845, the sum of.. $415,270 $250,000 $550,000 163,468 386,532 8801,802 Less included in the $415,270... Making a total of.. which will be extinguished by the end of January, 1846, under this recommendation, besides what may be purchased up between this time and that period. This sum being deducted from the aggregate above, will leave the Public Debt, at the end of January, 1846, exclusive of the Fire Loan, at $700,000, in round numbers. Your Committee have embodied in a Bill herewith reported, such of the foregoing matters as need the formality of an Aet of Assembly. The remainder they have compressed into the following Resolutions, which they recommend for your adoption. 1. Resolved, That the system of borrowing money upon the public faith, for the purpose of lending out the same to individuals, is unsound in principle and dangerous in practice. 2. Resolved, That the policy pursued by the Bank of the State, during the past year, in calling in its funds and purchasing the Public Debt, is approved by this General Assembly; and that the same policy should be steadily persevered in, until all the public debt, incurred for capital of the said Bank, shall be withdrawn and extinguished. 3. Resolved, That in the opinion of this General Assembly, it is inexpedient to prescribe the details of any plan by which this result shall be effected; but that it is wiser and more practicable to declare distinctly the course of policy which the public interests require, and leave to the President and Directors of the Bank the responsibility and charge of devising and executing the proper measures to effect these results. 4. Resolved, That this General Assembly, having now definitively settled and declared that course of policy which it deems for the public good, the President and Directors of the Bank are hereby enjoined to adopt measures for carrying out the same, as speedily as may be consistent with the faith of the State, the present management of the Bank, and the safety of the public interests. 5. Resolved, That the said President and Directors shall, in their annual Reports, inform the General Assembly of such measures as they shall, from time to time, have adopted, for carrying out the policy indicated in the foregoing Resolutions. In the House of Representatives, December 12, 1845. The Committee of Ways and Means, to whom was referred so much of the Governor's Message and Comptroller General's Report, as relates to the liabilities of the State, respectfully Report: That they think the time has arrived, when the State should most strenuously insist upon some provision being made by the South Carolina Rail Road Company, for creating a fund to pay the Bonds of that Company, which are guarantied by the State. These Bonds, amounting to two millions of dellars, will become payable in the course of years, and unless some provision be at once made to meet them, by a fund gradually increasing, the State may find herself embarrassed by the sudden demand upon her faith for this very large sum. The object which the State had in view has been accomplished; the road now stands upon a safe foundation and is fully established; the stock of the Company has risen nearly to par, and the stockholders ought to lay aside some of their profits to meet those liabilities which the State incurred for them in their hour of need. Your Committee therefore recommend the adoption of the following Resolution. Resolved, That the Proxies, who represent the State, in the South Carolina Rail Road Company, be instructed to insist that a Sinking Fund or some other means be provided by the Company, for extinguishing the debt guarantied by the State, and that immediate steps be taken to effect that object. In the House of Representatives, December 13, 1845. The Committee of Ways and Means, to whom was referred the Report of the Comptroller General, as to so much thereof as relates to the application to be made of the dividends from the South Carolina Rail Road Company, respectfully Report: That in their opinion, the most advisable disposition which can be made of these dividends, is to redeem the public debt, and they therefore recommend the adoption of the following Resolution: Resolved, That the Comptroller General do apply the dividends received and to be received from the South Carolina Rail Road Company, towards the extinguishment of the Public Debt, giving preference in such extinguishment to the debt the interest whereof is charged upon the Publie Treasury. In the House of Representatives, December 1, 1847... The Committee of Ways and Means, to whom was referred the Report of the President and Directors of the Bank of the State, respectfully Report: That the Bank has suggested the expediency of taking measures to advance the periods appointed for the payment of the public debt, incurred under the Fire Loan Act, and of causing it to be paid in instalments of about $100,000 annually. Your Committee highly approve this suggestion, and would recommend, that measures be promptly taken to ascertain whether it be practicable. The great advantage which the State would derive from such a change, is, that instead of being compelled to consolidate and keep at risk the profits of several years, derived from the Bank, the same would be at once applied as fast as they accrue; and the State would be disburthened of its debt, at a much earlier period, and with less derangement to its financial concerns. Of course, such a change could not be made without the consent of the Bond-holders; and as the Bonds are valuable in proportion to the length of time for which payment is deferred, the change could only be effected by offering a compensation, in the shape of an increase of interest. How great this increase ought to be, is a question for the exercise of a sound discretion. If we were to undertake to specify a limit, the creditor would naturally raise his demand at once, to that limit; unless he should think the limit too low, and then he would simply decline the negotiation. So that the only mode of effecting any thing, would be to entrust the matter to some one who could see the parties and treat with them personally. in Such a person could be better selected and employed by the Bank than any other way. It would only be necessary to instruct them, that inasmuch as the charter of the Bank will expire before the period fixed for the payment of the Bonds, in any arrangement which they may make, nothing shall be done which shall trammel the General Assembly in voting upon the question of a renewal of the charter. Your Committee, therefore, recommend the adoption of the following Resolutions: Resolved, That the General Assembly deem it an object of great public interest, that the public debt should be extinguished at the earliest period possible, and they approve the recommendation of the President and Directors of the Bank of the State, that measures should be taken, with the consent of the public creditor, to advance the periods and lessen the instalments now prescribed for payment thereof. Resolved, That it is expedient to break the heavy instalments of $500,000, now payable at fixed periods, into instalments of $100,000 payable annually, to commence in January, 1853, as proposed by the Bank, if the same can be done without an unreasonable increase of the annual interest. Resolved, That the President and Directors be authorized and requested to ascertain the terms upon which the proposed arrangements can be effected, and to carry out the same in such manner as they may deem expedient, within the limitations suggested in this Report. REPORTS OF COMMITTEES ON FINANCE AND BANKS. (1833.) Extract from the report of the Committee on Finance, adopted by both Houses, on various subjects-none relating to the Bank, except a recommendation to release to the Columbia Female Academy, a debt due the Bank. That part is subjoined: The Committee to which was referred the petition of the Trustees of the Academy of Columbia, beg leave to Report: That in December, 1799, (See 2 Faust, 285,) the Columbia Ferry was established over the Congaree for fourteen years, and half the profits vested in the Trustees of the Columbia Academy, for the benefit of that institution; that in December, 1814, (Laws, p. 61,) the charter was renewed for seven years; and in December, 1821, the charter was again renewed for seven years. That the profits of the ferry being considerable, the Trustees, aided by a legacy of $1000 from Major Ward, and the expected proceeds of the sale of certain lots lying in the suburbs of Columbia, granted to them by the Legislature, contracted for the erection of a brick building for an Academy, and in order to carry fully into effect the beneficent intentions of the Legislature, and that the advantages of the institution might be extended to other parts of the State, they caused the building to be constructed as not only to furnish commodious school rooms, but also numerous apartments for the accommodation of young ladies who might be sent from other Districts, and who might thus be lodged in the Academy. The building, with its necessary outhouses, was constructed, the lots upon which they stand having been purchased for $2000, and the buildings having cost the sum of $16,201 14-100. This was done immediately after the last renewal of the charter. The Academy went into successful operation. It received young ladies from all parts of the State, and was eminently useful to the whole community. The Trustees meanwhile paid off the debt contracted for the lot and buildings, as fast as their funds permitted, and would long ago have discharged the whole debt; but the Legislature, in December, 1822, granted a charter to McKenzie, for building a bridge at the site of the Columbia ferry, which charter was extended in December, 1823; and a bridge was forthwith erected. As soon as the said bridge became passable, the profits of the ferry totally ceased, and the Trustees were thus deprived of their only means of paying off the balance of the debt contracted for building the said Academy. The Committee further report, that the Trustees borrowed from the Bank of the State, a sum adequate to discharge this debt, and applied the same to that object, trusting that they might be able to raise funds at a future day to repay the Bank, but have totally failed, notwithstanding they have used all the means within their power, (by subscription and otherwise,) to effect the object. Meanwhile the Bank has sued for the debt, obtained judgment, and lodged an execution with the Sheriff, (amounting with costs to the sum stated in the petition.) and the Academy is about to be sold to satisfy the same. Your Committee recommend that the prayer of the petition be granted, and that the debt thus due by the Academy to the Bank of the State be remitted. The building may be properly considered public property; it has been erected at a great expense and is almost paid for-the institution has already rendered essential benefit to the State, and it may well be questioned whether, under such circumstances, so valuable a property should be suffered to be sacrificed at Sheriff's sale, and diverted from its original purposes. In the Senate, Dec. 16, 1839. The Committee on Finance and Banks, to whom was referred a Resolution, requiring the President of the Bank of the State of South-Carolina to report annually the indebtedness and responsibilities of the officers of the Bank of the State of South Carolina, and its Branches, report: That they have attentively considered the said Resolutions, and recommend that all the words after the word resolved, be struck out, and the following substituted: Resolved, That hereafter it shall be the duty of the President of the Bank to set forth, in an annual private report, to the Senate and House of Representatives, the indebtedness and responsibilities of the several Directors with the said Bank, for the past year, brought down to the first day of each session of the Legislature. In the Senate, Dec. 11, 1841. The Committee on Finance and Banks, to which was referred the memorial of the Louisville, Cincinnati and Charleston Rail Road Company, praying to be permitted to cancel certain Bonds, payable in London, and to substitute others made payable in Charleston, respectfully report: That they have had the same under consideration, and are satisfied that the bonds specified in the memorial, were properly withdrawn from the foreign market, under the depreciation then and now existing. That the responsibility of the State, under her guaranty of the said bonds, will not be increased by such a transfer of indebtedness, from a foreign to a domestic creditor, but on the contrary, that the trouble and expense of transmission of the annual interest and instalments of principal as the same may fall due, will be superceded by granting the privilege asked for in the memorial, to the extent, at least, of the amount proposed to be transferred. Your Committee therefore recommend that the following Resolution be adopted, viz : |