The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1868-12-04
THE BANK OF THE STATE IND OT-
ERNOR SCOTT.
To the Public.

To the Public.
observe in the message OF Governor Scott,
addressed to the Legislature convened in Co.
lumbia the following paragraph in relation to
SHE Bank Of The State," to wit:
81 recommend to the Legislature that some
and officers of the Bank OF the State from
wasting and misapplying it's assets to the pay.
ment Of costs Of court, attorneys fees, and
The salaries OF officers and agents. II the
holders OF the Fire Loan bonds are determined
to pursue the policy Of disparaging the credit
and resources Of tho State, when 1t must be
apparent to them that no State of the Union
is more solvent, or has fairer prospect of
promptly meeting all her liabilities, they should
be compelled to carry on this litigation at
their own expense. I have reason to believe
that not less than sixty thousand dollars IN
gold has been squandered and made away with
for salaries Of officers and agents who are per-
who are employed for the purpose OF bringing
the credit OF the State into disrepute, and tor
other objects OF equally questionable propriety.
The holders Of the Fire Loan onds should
be placed on the same footing as other credl-
tors of the State, and they should be held ac-
couniable for all damages the State has sus-
tanned, or may sustain, by their unwarrant-
able litis ation."
I have not word to say in Standardization
in reply to the aspersions which the Governor
has thought proper to cast on the counsel OF
the bank, and of certain creditors Of the bank
and the State. trust that I am too well
known in this State, personally and profession
ally, to require it. Nor shall l undertake the
defence of ''THE COURTS, further than to pro.
st,1npu nj
able" interference OF the Executive with the
Judiciary.
That the Chief Of the Executive Department
should in message to the Legislature, thus
publicly rebuke the highest judicial officers OF
the State, for an independent discharge OF
their functions, is one OF the ''aanoudtions" in
troduced which, think, is mo improvement" !"
Mr. Waring has published card in behalf of
tho bank and its officers, which, in my judg-
ment, fully vindicates them.
propose but word in reference to my cli-
ents, Messrs. Barring Brothers & Co., of Lon
don, and certain Fire Loan stockholders in
New York.
The public will be surprised to learn that
neither the Fire Loan bondholders in Europe,
represented by the BarinSs, or the Fire Loan
stockholders in America, have ever Instituted
proceedings in court in assertion OF their
rights Until the 18th September, 1868, they
wero acting, when acting at oil, in accord and
harmony with the STATE in all it's depart
ments. The suit in equity instituted by Dab
ney, Morgan & Co. in behalf Of The holders Of
The bills or notes of the bank introduced the
litigation. The purpose OF that proceeding
was to appropriate the assets OF the bank to
the holders OF it's bills or notes, and to accom-
plish this result claimed that "the courts, for
The first lime called inlo requisu,on. should
disregard the pledges contained in the act OF
1888, which directed that the profits of the
bank should be ''set apart" for the payment OF
interest on, and ultimate redemption OF, the
Fire Loan debt, and 10 set aside the act OF The
Legislature Of 1865, confirming these pledges,
and recurring that the bank should hold these
assets appropriated and set apart" to the
payment OF this particular debt of the bank
and the Slate. The bill of Dabney, Morgan &
Co. WAS filed on the 30th October, 1867; the
bank answered on the Sd February, 1868; the
Barings on the 2Gth May, 1868. and Maria Sim
ons and others, in behalf OF the Fire Loan
stockholders in America, on the 18th April,
1868. The answer Of the Attorney-Gencral in
behalf OF the State was filed on the Sd April,
1868.
The billholders were complai nants, seeking
to set aside State legislation, and the bank,
the Barings and others, were forced into an
| IoPo . ,hoff ha OF ho
While this case, involving the proprlety Of the
action Of the State through its constituted au-
thorities, from 1888 to 1865 was before the
courts, the billholders being the actors, and
directly attacking the past action Of the State,
and the bank and the Earrings and others, now
blamed, the defendants OF the action Of the
State, the Legislature passed the act of Sep
tember Is, 1868. This act provides satisfacto-
rily for the attacking party. The billholders,
who had bought up the bills for the most
part at O nominal price, became suddenly The
favorites ofthe new Legislature, and the bills
of the bank issued previous to the Goth Decem.
ber, 1860. were directed to be funded with in-
terest at the rate Of six per cent. per annum
from the date of presentation. The bondhold-
ers, with bonds past due, who had hitherto
acted in harmony with the State in de-
fence of it's past action, were ignored. Not
one word is uttered iu their behalf. But
the act directs the Governor to take possession n
of the assets pledged to secure this debt (as
Mir. McDufie, the agent of the State in the ne
gotiation of these bonds, expressed it), for the
purpose of msking assurance doubly sure,
and place the proceeds in the Treasury of The
State. These creditors then for the first time
became actors, by applying to the Federal
Court for an injunction. Before a motion could
be submitted to the court in this case, the new
Attorney General sued out o nlandamus. 10
this the bondholders were not evon parties, and
the bank representing their interest was an
involuntary party as defendant. MIR. Justice
Willard, elected by the Legislature to which
Governor Scott addresses his message, to q
seat on The highest bench kno wn to the system
of this State, refused the nandamas, on ac-
count of the "psnuing litigation" What liti-
CATION? The suit instituted by the hillholders,
| in which tn. bondholders appeared with the