The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1868-12-08
1ErTER FROM HON. j. b. CdAf6H1A

rErTER FROM HON. j. b. Cd1nf'01AA'
n,, Rank Of tho state-The Ere 1o"i'
,...-.LThe Governors Message
roTHE EDITOR OFTHE NEWS.
T, The morning papers Of the first instant ,
noticed. with such distinctness as 1 tnoosns
merited. the character Of the assaults con'ainea
IN the following paragraph from the Governor ;
.1ossoos and also of the person VINO nao
abused his high Office, by placing IN an oihclai
paper such shameless calusnnies. .... ,.;,5;
I then promised full and conclusive tinal-
,ot;on This promise I now undertake 10 re-
deem.
The paragraph is as follows:
THE BANK OF THE STATE.
..,o,,roend to the Legislature that some early
action be taken to prevent the con.s "ru o;arI;
tbe Rank of the stats from wasting ano mS
It's assets to the psy%sn, If oCsrs and SCENTS If he
ho1Sora of the Fire Loan bonds are determlnea W
the policy of disparagng the credit and re-
rees of the state whenit must be apparent 70 tnem
tha State Of the onoa @Ha all her liabilities
thav .Sonld be compelled to carry on TINS nsesuoa
~ tSs;r o1Vn expense have reason to believe tnat
,ot isss fh.n a1ty thousand dollars in gold mas oeen
s%randered and made away with for salaries OF ON
sIs. anS aoents who are performing no necessary
antics fees of attorneys who are employed ior sne
r,ose of bringing the credit Of the state INTO dis
rsnnte and for other objects CT equally quesu0nape
sbopd Se placed on the same footing as other credl
fors m the State and they should be held accounla
he for ali damages the State has sustained, or may
sustain, by their unwarrantable hugauon.
r. will be seen that the courts, the officers OF
+ha hank. the Fire Loan bondhoIders, who are
foreigners, and their counsel, are all assaiied'
The Fire Loan stockholders, who are Amerl-
cans. and the billholders, also Americans, who
began and carried on the litigation complained
of az .sunwarrantable") and their counsel are
e,cepted. do not complain that these par
ties are exempted. T commend it, because
their claims are for debts honestly due, equlta-
bly and legally, by the State and by the bank.
This will fully appear herein. But moderate
degree Of sagacity will indicate very differ
oat motive for their exemption than sense OF
Justice or zeal 10 pay an honest debt. Excess
Of zeal to receive, or want Of zeal to pay, never
excites wonder.
d;catei it's officers from the charge OF aodstang
and ttYnakinq d,pau' with its assets, by expos
inc the misstatements Of the Governor, and by
showing that, il he referred to official docu-
ments as he doubtless did-because it was
natural. and his first duty to do so-he had no
"reaso1s TO 6elseoe" what he staNd. Ihe
cashiers defence and the material he has 1ur-
nished, with that which Will appear neren-
alter. will, think. completely vlndlcate the
cnnrts but it does not condone the high offence
of chief magistrate attempting to discredlt,
and, by false charges, to bring into dlsrepute
the judicial office.
the yindication of the ''holders OF tho Fire
Loan bonds" and OF myself as one OF their
counsel.
as sspursuing the policy of disparaging the
credit Of the State" Messrs. Barring Brothers
& Co. are the only Fire Loan bondholders
parties in the litigation, and the charge ls
ther efore intended for them. They are only
defending themselves in htigation-not car
rying it on-into which they are compelled as
necessary parties defendant. Their bill In
the Federal Courtwas as much necessary
measure OF precaution and defence as their
answer in the State Court. Whatever they
have done, or caused to be done, has been al
their oto7, erpense," and not otherlctse.
The gentlemen with whom am associated
and myself are employed by them. We are
also employed by the officers of the bank, the
''custodees' Of the trust fund, 1.-THE bank as
sets), for the proper defence OF that fund. Ths
court, following the established rule in such
cases, has decreed that the custodees may pay
the reasonable expense Of defence and charge
it upon the fund. presume they will do so;
and for this Governor Scott asealls them for
"wasting and misapplying" the bank assets,
and ourselves as attorneys employed for the
purpose Of bringing the credit of the State into
disrepute and for other objects OF equally ques-
tionable propriety." I propose 10 vindlcate
myself against this calumny, and Barring Bro
theirs & Co., whom in part represent, against,
this absurd charge Of ''disparaging the credit"
Of their debtors The knowledge Of their up
right ssgacity ID 80 ancient that 1t should have
saved them from Suci charges. Their vlndl-
cation, as well as my own, must rest upon the
facts Of our case, simply and truthfully narrat-
ed. Without that, discussion and argument
will be in VAIN. I. therefore. proceed with the
STATEMENT OF THE CASE.
The Fire Loan bonds due by the State of
South Carolina and by the Bank Of the State to
Barring Brothers & Co. we're issued in 1885,
eleventh and twelfth sections Of an act enti-
tied an act for rebuilding the City of Charles
ton, ratified June 1st, 1888, (Statutes at Large,
vol. Z, page 1867 as follows:
SECTION /. Authorizes and directs "the Gov
ernor, in the name Of the State, to issue bonds
or other contracts for two millions Of dollars;
one million payable at the end of twenty years,
and the other million at the end Of thirty years,
at rate Of interest not exceeding six per cent,
for the purpose OF procuring loan, on the
credit OF the State, to rebuild that portion Of
the City of Charleston nov lying in ruins" And
'that the faith and funds of the State of South
Carolina be, and the same are, hereby pledged
TO secure the punctual payment of the said bonds
or contracts ,oiih the interest thereon"
SECTION 8. "The money when realized in
Charleston shall be deposited in the Bank of
the State of South Carolina, and shall become
a part Of the capital thereof"
SsorIoN :0. "It shall be the duty of the
president and directors of the Bank of Me
State of South Carolina to make proper provi,.
ion for the punctuaI payme.: of the interest of
such loan as may be effected upon the credit of
the State under the provisions Of this act, and
also for the ultimate payment o, the principal
thereof"
SECTION II. cit shall be the duty of the presi-
dent and directors Of the Bank Of the State Of
South Ca olina to cause to be opened in the
books Of the said bank an account, in which
they shall debit thems Ives with the profits
arising ont of the additional capital, created
out Of the TWO millions loan aforesaid. for the
year ending on the first day of October, in the
year of our Lord, one thousand eight hundred
and thirty mine, and with all the future profits
Of the said loan, as the same shall be hereafter
annually declared; ,1hich sad fund, ,ouh us
annusl 0ccumu!attons, shall be considered
solsmn'y pledged md set apart for Ike pay