“The gentleman from Edgefield (Mr. Tillman) speaks of the piling up of the State debt; of jobbery and peculation during the period between 1869 and 1873 in South Carolina, but he has not found voice eloquent enough, nor pen exact enough to mention those imperishable gifts bestowed upon South Carolina between 1873 and 1876 by Negro legislators—the laws relative to finance, the building of penal and charitable institutions, and, greatest of all, the establishment of the public school system. Starting as infants in legislation in 1869, many wise measures were not thought of, many injudicious acts were passed. But in the administration of affairs for the next four years, having learned by experience the result of bad acts, we immediately passed reformatory laws touching every department of state, county, municipal and town governments. These enactments are today upon the statute books of South Carolina. They stand as living witnesses of the Negro’s fitness to vote and legislate upon the rights of mankind.

“When we came into power town governments could lend the credit of their respective towns to secure funds at any rate of interest that the council saw fit to pay. Some of the towns paid as high as 20 per cent. We passed an act prohibiting town governments from pledging the credit of their hamlets for money bearing a greater rate of interest than 5 per cent.

“Up to 1874, inclusive, the State Treasurer had the power to pay out State funds as he pleased. He could elect whether he would pay out the funds on appropriations that would place the money in the hands of the peculators, or would apply them to appropriations that were honest and necessary. We saw the evil of this and passed an act making specific levies and collections of taxes for specific appropriations.

“Another source of profligacy in the expenditure of funds was the law that provided for and empowered the levying and collecting of special taxes by school districts, in the name of the schools. We saw its evil and by a constitutional amendment provided that there should only be levied and collected annually a tax of two mills for school purposes, and took away from the school districts the power to levy and to collect taxes of any kind. By this act we cured the evils that had been inflicted upon us in the name of the schools, settled the public school question for all time to come, and established the system upon an honest, financial basis.

“Next, we learned during the period from 1869 to 1874, inclusive, that what was denominated the floating indebtedness, covering the printing schemes and other indefinite expenditures, amounted to nearly $2,000,000. A conference was called of the leading Negro representatives in the two houses together with the State Treasurer, also a Negro. After this conference we passed an act for the purpose of ascertaining the bona fide floating debt and found that it did not amount to more than $250,000 for the four years; we created a commission to sift that indebtedness and to scale it. Hence when the Democratic party came into power they found the floating debt covering the legislative and all other expenditures, fixed at the certain sum of $250,000. This same class of Negro legislators led by the State Treasurer, Mr. F. L. Cardoza, knowing that there were millions of fraudulent bonds charged against the credit of the state, passed another act to ascertain the true bonded indebtedness, and to provide for its settlement. Under this law, at one sweep, those entrusted with the power to do so, through Negro legislators, stamped six millions of bonds, denominated as conversion bonds, “fraudulent.” The commission did not finish its work before 1876. In that year, when the Hampton government came into power, there were still to be examined into and settled under the terms of the act passed by us providing for the legitimate bonded indebtedness of the state, a little over two and a half million dollars worth of bonds and coupons which had not been passed upon.

“Governor Hampton, General Hagood, Judge Simonton, Judge Wallace and in fact, all of the conservative thinking Democrats aligned themselves under the provision enacted by us for the certain and final settlement of the bonded indebtedness and appealed to their Democratic legislators to stand by the Republican legislation on the subject and to confirm it. A faction in the Democratic party obtained a majority of the Democrats in the legislature against settling the question and they endeavored to open up anew the whole subject of the state debt. We had a little over thirty members in the house and enough Republican senators to sustain the Hampton conservative faction and to stand up for honest finance, or by our votes place the debt question of the old state into the hands of the plunderers and peculators. We were appealed to by General Hagood, through me, and my answer to him was in these words: ‘General, our people have learned the difference between profligate and honest legislation. We have passed acts of financial reform, and with the assistance of God when the vote shall have been taken, you will be able to record for the thirty odd Negroes, slandered though they have been through the press, that they voted solidly with you all for honest legislation and the preservation of the credit of the state.’ The thirty odd Negroes in the legislature and their senators, by their votes did settle the debt question and saved the state $13,000,000. We were eight years in power. We had built school houses, established charitable institutions, built and maintained the penitentiary system, provided for the education of the deaf and dumb, rebuilt the jails and court houses, rebuilt the bridges and re-established the ferries. In short, we had reconstructed the state and placed it upon the road to prosperity and, at the same time, by our acts of financial reform transmitted to the Hampton Government an indebtedness not greater by more than $2,500,000 than was the bonded debt of the State in 1868, before the Republican Negroes and their white allies came into power.”