The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-09-01
THE STATE DEBT.
Il REVIEW OF MR.. CHAMBERLAIN,S
DEFENCE OF THE SCOTT AD-
MfNISTRATIOE.
The Bonds ISSUED for the Relief Of the
Treasury and for Other Purposes.
TO THE EDITOR OF THE NEWS.

having SlOWu tuaL MI. CkdlL oei iaia ha9
failed to prove his first proposition, viz: THAT
the dept OF sl,25O,0 Of bonds issued to fund
the old bills OF the Bank Of the State OF South
Carolina has not added one dollar to the public
debt OF the State, " in that he has not proved
that the bills redeemed by said bonds have
in fact been destroyed, and do not form part
of the bills OF that bank now ahoat. we pro-
ceed to examine his second proposition, which
is that 1.-THE bonds issued to pay accrued inter-
est on the debt of the State, Of which sG59, 900
have been used tbns far, have not added to
the public debt"
The act under which these bonds were
issued authorizes the Governor to borrow,
on coupon bonds, sum not exceeding
81, 900 600. to pay Interest on the public debt" "
There is no limitation as to the number OF
bonds to be issued The Governor Is author
lied to borrow, on coupon bonds, sum not
to exceed $1,000, ,0O0." To effect this loan,
he is authorized to issue and sell any number
of bonds that may be necessary to raise
81, ,0OO 900; the only restriction being that lne
bonds shall .sbe sold at the highest market
price, and for not less than sum to be fixed
by the Governor, Encouragement and treas
urer. Mr.. Chamberlain does not tell us the
'thighest market price" at which the bonds
were sold; he merely states that only "s65o, 600
Of the bonds have been Issued thus far" LIZ IL
not evident that if the bonds were sold at
less than par. land undoubtedly this was the
case. J the public funded debt ''has In part been
added to ?" Say the accrued interest to oe
paid amounted to s4S7, 800, and the bonds SOLD
at rs cents in the dollar in that event: 10 order
10 ..change the form" of the debt, (Which Mr.
C. claims was the only effect OF the operatlon,)
the debt has necessarily been increased from
s4s7, 500 to s650,00O.. and sl65,5Oo mas oeen
'sadded to the public funded debt Of the State"
We perceive, then, that even assuming that
Mr.. Chamberain's statement Is correct. and
that only 1850 900 OF these bonds have been
issued thus tar" there has been, nevertheless,
an increase of the debt. He does not pretend
to assert that the bonds sold at par; and un-
less they were thus sold, there must have been
something adldled to the dedt an changing lis
form.
But we 20 further, and assert that he has
not proved that only 1850, 900 of these bonds
have been issued thus far" He takes his
figures from the ''record." and until he proves
that the record is true. his argument tails to
prove anything. Does Mr.. Chamberlain know.
of his own knowledge, that only s.sG5O,0O OF
these bonds have been issued? Tne act does
not limit the issue? The bonds TO be Issued
are s'coupon bonds" payable to bearer. If It
should be discovered hereafter thai more than
$3.50 900 of these bonds ere III circulation.
upon whom will the loss fall
Third. Mr.. Chamberains next proposltion
is, the public debt has not been added 70 oy
''the bonds issued 10 redeem the "olls re-
celvable' of the State, OF which s3I0,oUo nave
been needed to retire the entire circulation
His argument here again Is, that this opera
tlon dill not increase the debt; that the deot re-
manned the Sante-the form" only was chang
ed To effect this change of form, lie says:
"We authorized an issue o. S500,0o0 Of bonds,
to fund these bills, If so mlch should be neces-
sary." And he adds that. lowing to the rise
OF State credit, only about 900 OF these
bonds have been needed to retire the entire
circulation" He does not inform us, however,
what was the ''cntire circulation" thus retired.
Upon referring to the act, We find that Mr..
C.'s statement is not entirely accurate. Tne
act does not authorize the issue Of $780, 900 OF
bonds" but authorizes the Governor to 'bor-
row,n'son coupon bonds, !" va s,an not ercsed-
ina $500, ,0OO.n The number OF bonds Is not liIni-
ted. The Governor Is authorized TO lsslle as
many bonds as might be needed to borrow
sum not exceeding s500,000 And to effect
this loan, he is further authorized to sell the
bonds, ''at the highest market price, By the
financial agent of the State in the City OF New
York, and not less than for sum to be fixed by
the Governor, attorney-general and treasurer.
Mr.. c., as we have said, has not Informed us
OF the amount of the 'entire circulation OF the
bills receivable" retired by the "Sum thus
borrowed; nor has he given Us the "highest
price" for which the bonds were sold. We are
only informed that $4,000 Of bonds have
been needed to retire the entire circlation OF
however. that the bonds sold for seventy-tlye
cents on the dollar. In that event, the ''sum"
realized was s277 500, and this latter sum re-
presents the amount of bills receivable in cir
culation, retired by the $4,000 OF bonds.
The difference between these two sums, viz,
$92, 500, represents. therefore the number OF
dollars AIDED 10 ''the public funded debt, In
schanging he form" of the debt. So much
for Mr.. C.'s argument on this point, assuming
his "record" to be true.
Here, again, however. We ask whether
he knows, OF his knowledge, that 1870, 900
were needed to ''retire the entire circula-
tion ?" Does he know the "highest price" re-
celved by the financial agent for the bonds In
question? II it should appear hereafter that
than the Figures" given in the ''record,"
would not less than S370,000 of bonds have
been needed to ''retlre the entire circula-
tion ~"
Again, Mr.. C. asserts: 1--WE authorized the is
sue of $780, of bonds" These were cou-
pom bonds, payable to bearer. Does Mr.. G. know
Of his own knowledge that only 1870, 900 are In
that $3.50, 900 OF bonds, in addition to the s370-
900 needed to "retire the entire clrcu-
lation of the bills receivable" are In circu-
latIon, upon whom will the loss fall
We submit that Mr. Chamberlain has failed
to prove his second and third propositions, as
well as his first.
Fourth His last proposition is, that ''the
bonds. 81, ,0000 900, Issued for the 'rellef of the
treasury have not added to the public debt"
We turn again to the statute book, and find
that here, likewise, Mr.. C. is inaccurate In his
statement After informing US of the causes
which induced the administration Ito go to
New York and borrow money" he adds, .'lt
became necessary to anticipate the taxes Of
the coming year. For this purpose the Issue
of 81 0OO 900 of bonds for the relief Of the trea
sl,ry' was authorized. These bonds are now
In New York, used as collaterals tor State
loans, to be repaid out Of the taxes OF the
present year. Not dollar Of them is public
debt unless you fall to do your duty as good
citizens In paying your taxes"
We say this statement is not entirely accu-
rate. The act does not in terms authorize the
issue of sl.000.O00 of bonds, but authorizes
the Governor to borrow, ION coupon bonds"
a 'ssum not exceeding sl.000,0O0." He Is
authorized to ''borrow $1,000, ,000,' no matter
how many bonds might be needed to effect
the loan The act further provides that ''said
bonds may be used as collateral security for
loans BY the financial agent, in accordance
with the direction of the Governor. attorney
general, comptroller.gencral and treasurer OF
this Slate, who may also authorize the Imam
cial agent to sell said bonds at the highest
market price, Here, then, we have the limit
to the powers conferred on the Governor ana