ber that there was little or nothing known in the financial management of the State of which complaint was or could have been made until after October, 1870; the increase of the debt since that date was not publicly known until October, 1871. In the tax-payers' convention in 1871, the debt was reported to be as the governor had stated it. Yet the fact is clearly shown by documents before us, official reports and the testimony before the committee, that the conspiracy known as the Ku-Klux Klan was in full existence in the spring and summer of 1868, and active and efficient in the presidential election of that year, controlling, by intimidation and violence, about one-third of the State. It was in operation before the new administrator had begun to receive taxes or the burdens of government had been felt in any way. These dates negative the allegation that financial mismanagement or corruption bred the Ku-Klux, and show that the conspiracy preceded as it contributed to cause the financial troubles. While there are, and have continually been, persons in the State, and in various parts of it, generally believed to be corrupt and the authors of the monetary misfortunes of the State, and State officers, commonly believed to be venal, have freely traversed the State, yet no such person, official or unofficial, has, to our knowledge, been molested by the Ku-Klux on account of his corrupt conduct. It might have been supposed that the worst outlaws, though organized for other ends, would have taken special pleasure in punishing such offenders, if it were only to salve their own consciences and the security enjoyed by bad men, while the humble, innocent, and helpless have been outraged and assassinated, shows not only that to punish or prevent corruption is no part of the object of the Ku-Klux, but that they tolerate those who rob the State. This may be be cause among the robbers are members of both political parties, including some who direct and others who control and might easily suppress the Klan, and if the Ku Klux were to punish corruption impartally they would strike men in sympathy with themselves, even their own members. Another reason for the indulgence of public robbers by Ku-Klux is, that the doings of both tend to the same result-the overthrow of the State government. The one assaults while the other undermines. It is a branch of Ku-Klux operations to defraud the United States by covering and protecting illicit manufactures of spirits and tobacco, and they could scarcely keep up such practices and preserve a high moral tone. But if it were any part of their plan to correct financial abuses the fact should appear in evidence. The documents and testimony are voluminous, containing "prescript" "constitution," "by-laws," and "regulations" of several orders of KuKlux, the confessions of members of Klans in different localities, and many accounts of their acts and words while proceeding as Klans, both in councils and on raids, but it nowhere appears in print, manuscript, word, or deed that any part of their object is to deter or punish or avenge corruption, or that they take any cognizance of financial affairs. We, therefore, conclude that the financial condition of South Carolina cannot be assigned as a cause or a provocation of the Ku-Klux Klan or the bloody proceedings of that order. It is, however, proper to add that the malfeasance and corruption of republican officials must have indirectly tended to turn society and the State over to violence by bringing the State government, the party in power, and the national authority into contempt, and by increasing the reluctance of well-disposed southern men to identify themselves with the republican party, or even to interfere against such an organization to protect repub licans, and by giving to the opponents of reconstruction on impartial suffrage, argument and illustration against them, and it is equally evi dent that the corruption, malpractice, and speculations of officials, tending to divert them from and weaken them in the performance of their public duties, have opened the way for the prevalence of violence. It is, therefore, clear that thus, indirectly, corruption and malfeasance have promoted, though they have not caused nor provoked, the lawlessness which has prevailed in South Carolina. PROPERTY. In 1870 the assessed value of property in the State was The true value by the census was $207,642,571; gain since 1866, $116,754,135. There were 1,133 miles of railway, which had cost about $25,719,100. The agricultural productions of the State for 1870 were valued at $11,909,402, being 35 per cent. on assessed value of real estate. Amount expended for education, $150,000; children of school age, 206,210; children at school, 66,056. PRODUCTION. The estimated value of all farm products except cotton, rice, and sugar, for 1860, 1867, 1868, and 1869, and of all products for 1870 and 1871, was $139,113,624. Estimated value of cotton from 1865 to 1870 inclusive, $100,000,000. Total, $239,113,624. We were instructed to extend our inquiries to the cities of Charleston and New Orleans. Increase since 1868. Contingent liabilities, railroad. Prospective contingent liability for railroads Total contingent and prospective liabilities for railroads commenced.. 2,074,250 00 7,083, 400 00 22,916, 600 00 9,533,900 00 30,000,000 00 Estimated value of agricultural products since the war-Indian corn, wheat, rye, oats, barley, buckwheat, potatoes, tobacco, and hay1866, 1867, 1868, 1869, as per agricultural reports, and of all farm products for 1870, as per census.. Estimated value all products, 1871. Total.... Estimated value cotton for 1865-66 to 1863-69. 369, 627,592 00 $207,051, 677 00 464, 270, 770 00 161,575, 915 00 182,716, 641 00 $240, 000, 000 00 32, 948, 323 00 268, 169, 143 00 61, 117, 466 00 $218,638, 801 00 80,000,000 00 298,638, 801 00 160, 000, 000 00 Total... 1860. 458,638,801 00 At the close of the fiscal year 1860, the debt of Georgia was $2,670,750, contracted chiefly in constructing railroads. The State was pledged to further railroad subscription $500,000. Debt and contigent liabilities, $3,170,750. The balance in the treasury was $274,820 54, including $100,000 of the school fund in bank on interest. There was bank stock pledged to education amounting to $290,900, and yielding 10 per cent. per annum, and property in railroads which cost $4,711,532-the Western and Atlantic Railroad, yielding the State $450,000 per annum. This road was valued at about $7,000,000. There were 1,420 miles of railway, which cost $29,057,742. The banks had $16,689,560 capital, $3,211,974 specie, and $8,798,100. circulation. The assessed value of property, in 1860, was $672,322,447, as follows: Land City and town property Shipping and tonnage Stocks, manufactories, &c.... Household and kitchen furniture. Other property not mentioned Making a total of.. The value of slaves... $161, 764, 955 302, 694, 855 35, 139, 415 107, 336, 258 15, 577, 193 943, 940 4,034, 252 2, 374, 284 42, 427, 295 672, 292, 447 302,694, 855 Valuation of the taxable property in 1860, exclusive of slaves..... 369,597, 592 The school fund was $440,900; annual income $29,090; the appropriations for schools in 1859 were $150,000; white children of school age, 117,670; number taught, 79,922; the State tax was 64 cents on the $100. The taxes levied in 1860 were— During the year ending October, 1860, the State expended $42,801 73 for arms. 1865. In 1865 the old debt had increased to $5,706,500; the debt contracted in rebellion, $15,104,726 50; total, $20,811,226 50; increase since 1860, $17,640,476 50; damage to State railroads, $3,000,000; the assessed value of taxable property, $207,051,677; loss since 1860, $464,270,770; loss exclusive of slaves, $161,575,915; total loss of property, excluding slaves and assets and increase of debt, since 1860, $182,716,641; the total loss, including railroads, banks, and public buildings, estimated by State authorities on basis of true valuation for 1860, was $786,254,876. There were 1,420 miles of railway, the same as in 1860, in bad order. The losses of the companies were estimated at $15,000,000. The banks were broken, and their losses estimated at $30,000,000. The population had decreased from 1,057,286, in 1860, to 869,201. 1868. In 1868, when the reconstructed government was inaugurated, the rebel debt had been repudiated, and the recognized debt was $6,544,500. The following is the report of the treasurer, Mr. N. L. Angier, of December 31, 1870: TABLE C.-Consolidated statement of the public debt of the State of Georgia on the 1st day of January, 1871, showing date of issue and maturity of outstanding bonds, annual interest on each issue, total interest due each year, and total annual payments. "There fell due, in 1868, £15,000, (sterling bonds,) all held in Europe, none of which have been paid; £3,000 interest on same is still unpaid." As will be seen, all of this debt, save $600,000, had been contracted before 1868. Increase since 1865, $738,000; increase of debt since 1860, $3,773,750. The treasurer, Mr. Angier, says: The above table shows the State bonded debt at the close of the war $2,114,500, besides the small sterling debt less than $100,000. This was the State's indebtedness at the commencement of secession, upon which interest had accumulated in amount less than $600,000 at the close of the war. The $3,900,000 issued in 1866 were to fund the past due bonds and the matured interest during the war, and to put the State railroad in repair after the war. On the 1st day of January, 1871, the ascertained debt was $6,544,500. In his report for 1870, the treasurer states the known bonded debt at this sum, and gives the foregoing detailed statement, as under 1868; but he says "table C shows the bonded indebtedness of the State exclusive of the bonds issued in 1870. Besides the bonded indebtedness as shown in table C, a large amount of new State bonds have been issued greatly in excess of honest demands against the State, and under circumstances that lead to the belief that these bonds have been used for private purposes to further the ends of certain individuals." These bonds, so far as the coupons are concerned, not being executed according to law, and not registered in the treasurer's office as the law requires, I have no data by which I can arrive at the exact amount of new bonds issued. I have made several attempts to learn the amount and disposition made of the bonds, but the financial agent, who has them in charge in New York, has been instructed by the governor to withhold all information concerning them. Enough, however, has been learned to authorize the statement that nearly fire millions have been issued and sent to New York. This attempt at concealment leaves grounds for grave suspicions; and it would well behoove an honest executive to expose such fraud against the State. The contingent liabilities for railroads for bonds indorsed are stated by Governor Conley in his message of Jannary 11, 1872, at $7,083,400. |