Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1863-02-27
Gbt 9tanAar6.
REPORT

tHstedd Of NORTH Carolina treasury h0IeS'
The Joint Select Committee appointed to enquire
into the causes of the payment OF soldiers ClaHis
10y iisbursing officers and agents OF this state IN
confederate Treasury Notes, which were authorized
f. h., issued by the State Convention for the pay
,nent Of such claims" beg leave to submit the ioi-
low ing facts: ,...
,ho 1'II;c Treasurer WIS authorized to issue Treas
nrv noies TO the amount of about six millions OF
dollars for the purpose of paying drafts on the pup
lie Treasury that by the Ordinance OF december
ISt 1861 the Public Treasurer was authorized 10
issue Treasury notes tundaoe IN SIX per cent ooHus
part of these notes issued, but from the fact
that the Bank of North Carolina and its Branches
refused to take these notes as currency, these notes
became uncurrent, and to remedy this evil the Con-
yenton passed Ordinance No 30 OF the date OF FEB
ruary 26th 1862, which Ordinance ordained that
all Treasury notes Of certain denominations that had
been issued and all to be issued, should be funda-
bic in eight per cent bonds six per cent certIt-
Gates convertible at the pleasure OF the hoider IN
eight per cent bonds. The committee lind, that I'm
medately after the passage OF this Ordinance North
Carolina Treasury Notes commanded premium as
they were convertible into eight per cent bonds
This will appear from the report of the Public Treas
urer 70 the House of Commons, dated 9Th Decem-
ber 1862 in which report the Treasurer shows that,
Although Confederate Notes were nothing like so
plentiful then as now" that he refused the bids
FROM the banks of the State in response to his cir
cuar asking the banks to reserve for him the Con-
federate notes. Qor the payment OF the Confederate
tax from the fact that he aScertalned that North
Carolina eight per cent bonds commanded a prem,
um IN Richmond. And it will appear from said
report that through Messrs Lancaster 4 Sons, Bro
kers of Richmond the Treasurer sold about 81 AGO.
900 OF eight per cent bonds, which said sale CON-
rnenccd on the 18th of March, 1862 and ended on
the 18th of May 1862, the premium of the bonds
ranging from II per cent to per cent on winch
sales The Treasurer realized for the State near
$4,000. The committee find that the Treasurer,
Tor the purpose of meeting the demands on the
Treasury failed to issue the Treasury Notes proV
deI Or in the various Ordinances of the Convention
but As will appear from the evidence filed with this
report, sold large amount of eight per cent bonds
priU,ttely at par the sales commencing on March
I6th 1862 when the bonds of the same denomina- |
tunS were selling in Richmond by authority OF the
IrefSgr6r, for J per cent premium, and ending IN |
September 1862 when the bonds were worth pre- |
mum Of 10 to II per cent as will appear from the
statement of Lancaster Co., filed with this report
The committee find that Jno. G. Williams & Co., |
Brokers, in Raleigh, and MessrS. Branch Il Sons,
Brokers, of Petersburg, Va, as will appear from the
statement filed purchased from the Treasurer with
Confederate Notes, at par, eight per cent bonds to
the amount OF S7y7, 94S, worth premium in Rich
nond according to date of issue, of 43 2U2 81 and
as Jno. q. Williams in his testimony, admits he
purchased about one million and quarter and as
bonus in his name are only issued for some half !
million, he must have purchased in the names of
other IIrties to the amount of half million or more,
showing loss to the State of seventy odd thousand
dollars in the transactions of the Treasury and other
agent with one firm in the city of Raleigh
The committee from the want of time and the dill
Guilty in procuring evidence, have been unable to
make out statement to the loss of the State in
various other large transactions with Brokers and
but by reference to the TreaSurerS Re-
port oil the 9Th December 1852 1t will be seen that
James E. HOyt John w. Cunning ham and others,
We're very large dealers; it will also be that, of
the amount Oh eight per cent. stocks issued very
large amount went into the hands of Brokers, and
very small amount into the hands of persons having
63HH t-te claims against the State.
Upon examining the ordinance of the Convention,
No So, the committee is of the opinion that it was
the intention of the Convention to make the treasury
notes l currency, and the authority to fund said
notes in eight per cent bonds, for the purpose
Of giving the notes credit as a circulating medium;
and had these notes been paid out as contemplated,
to the soldiers or public creditors, they would have
been dlffuSed over the country circulation, and
would have returned SLOWLY for bonds and so long
these notes circulated the State would have saved
eight per cent. interest and the soldiers would have
received their State bounty, and other meritorious
creditors would have received their dues in APP
precsated and not they did, in deprecated
rency. Instead, however, of pursuing the obvious
intentions of the Ordinance, that as he could not |
procure the notes on account Of the fall of New
Orleans, he had the right to sell the bonds to re-
pleni>h the Treasury for it is shown by his Report
that he sold large amount of bonds to pay the
Confederate tax and it is shown by the testimony
of the Treasurer himself and the testimony of others
that he gave in exchange at par for Confederate |
money large amount of eight per cent. bonds, at
the same time he selling bonds of the sumo
Ualue in Richmond at handsome premium 1t is
the opinion of the Committee that the Ordinance of
the Convention did not authorize the sale of the
eight per cent. bonds, neither did the Ordinance
auth ,rize loan at any interest; neither did the
Ordinance authorize the issuing eight per cent
bonds for any purpose, except in redemption of
Treasury Notes. In the opinion of the Committee
the exchange of eight per cent bonds at par for
anything except treasury Notes, in reality
sale of the bonds and that such sales were not
thorized by law, and were injurious to the public,
because interest accrued Immediately at the rate of
eight per cent. against the State; which would not
have been the case had the Treasurer issued the
Treasury Notes. The Treasurer, however, exercised
the power of SALE and if according to this nterpre-
tation of the Ordinance he had right to sell, no
goC1 reason is seen why he should not sell at the
current premium. By the statement of Lancaster
& Co., of Richmond, hereunto appended the current
presaruun at which these bonds were selling in the
principal stock market of each month, from March
to December, is stated by which statement it will
lie seen that if the Treasurer had sold these bonds
at the current premium, instead of at par as he did
SELL he would have saved the State the sum of three
huadred and to0enty-tUO thousand too huR4red and
SGcsR dOlLdra
from the evidence of Major A. NJ Lewis, pay
En"Ster, it will be that the Treasury Notes that
into his hands not circulated as intended
among the soldiers, but found their way Immediate
ly into the hands of Brokers and spectators, and
the State was Immediately subjected to eight per
cent. interest by the funding of these notes the
notes were returned to Major A. NJ. Lewis, and by
him returned tn the Brokers, and by them again
fHnded, and the State again Immediately subjected
20 eight per cent interest and the soldiers paid in
Confederate Treasury Notes. instead of North Caro-
Ina Treasury Notes as provided for in various
chances of the Convention
Respectfully submitted
r. Y McADEN, CHM'N
@. i. SANDERS
Z. J. WARREN