The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1871-05-18
,bonld be sirned bu the Governor and Treasu.

In consequence, there is no record kept in the
Comptroller Office. The preceding statement,
under the authority of this officer, is derived
from the Treasurer. 1t is confirmed by the
Governor, who united with the Treasurer, Mr..
Parker, in giving to the committee every assur-
ance of its correctness. Andit appears to your
committee that the several issues and sums OF
bonds described are of unquestionable legality
and force as obligations of the State. 1t seems
proper further to explain that the bonds under
act of August &C., 1868, "for the payment of the
sued with the above words embodied in the
form of the bonds. That these words being
deemed Objectionable, another set of bonds for
like amount Isl, ,0OO, ,000) was prepared and
executed, and were sent to the financial agent
to supply the place of the Objectionable issue.
Of this Objectionable issue of bonds, $500,
were long since returned and cancelled, as ap-
pears by the assurances given to your commit
tee by the Comptroller and Treasurer. Upon
the authority of Mr.. Kimpton, Agent, and Mr..
Parker, Treasurer, it appears also that fur
ther sum of 100000 has been returned within
few days. These have not yet been cancelled.
Mr.. Kimpton also assured the committee that
the remaining 500, 900 would soon be returned;
that there was not any longer delay in efecting
the exchange than arose from the necessity of
waiting until the several loans matured for
which the first bonds had been pledged.
The arrangement of having financial agent
in New York, does not make favorable i'm
preston upon the committee. Copies of the
accounts rendered by him for the fiscal years
of 1868 and 1870 are annexed to this report
for reference, marked respectively B. and c.
The large sum in money or bonds always in
the hands of the agent is attended with unu-
sual risk in the management of the finances of
State; and the difficulty of keeping the ac-
counts of the agency and of the treasury in
constant and regular accord is great. twill
be seen for example, by account "B'' that at
the end of the year, the total of the sums
charged to the Treasurer by Mr.. Kimpton, was
81 ,0O7, ,924.54, while the sums credited to Mr..
kimpton by the Treasurer, amounted to only
1923 200; exhibiting a discrepancy of 1884,
924 81, or disagreement of 1884, ,924.54. In
like manner. account sc" exhibits disagree
ment of 1924, 1862.
1t is true these accounts were recently
brought into reconcilement, or rather into
conformity with the accounts of the agency.
There is added to both an account of the SUBJ
sequent interest by which this was effected.
Nothing appears in these accounts to impeach
their correctness, but it will be seen how wide
open is the door for errors and disputes. if for
no graver misfortunes. 1t will be seen that
among the items brought to the credit of the
account by the subsequent entries, are these,
viz:
Account (B) fiscal year, 1869, for expenses,
including interest as explained to the commit
tee..... ........... 1886 II
Account (C) fiscal year, 1870, for expenses;
including INTEREST,". ...94,911 AZ
s15s, ,974 Is
These appear to have been passed to the
credit of the agency without being audited.
The committee understood Mr.. Parker, the
Treasurer. to say that he had not received an
account of the several items of expense that
60 to make up the two sums of S64, 4,996.7l,
and of S94, 4,977.42. These charges. as will
terest of the public debt, nor is this the end
The committee learned from Mr.. Kimpton that
his own proper commission as agent was not
included in the above sums. and that the rate
of compensation is not even determined or
agreed upon.
Your committee would have preferred to
show with precision what rate Of interest re-
suits from the addition of these charges, but it
is seen that the full sum of the expenses is not
yet known, neither do the accounts show the
exact average sum of the cash advances made
to the Treasury. Some approximation to the
truth, may, however, be made in this way. By
the report Of the Comptroller General for 1870
PIP. 101 to 104, the following appear to have
been the quarterly balances due TO Mr. kimp-
ton, by the Treasury.
October 1st, 1869. S5l5, ,424 54
January 1st. 1870. Observation-Disclosures. 10000 54
April lst 1S10..... .................... ,347 S4
July lst, l870....... ......".,....... IS,317 q
October lst, 1S70... $50, ,e43 95
Total, $685., ,94S os
This sum, divided by the five periods, gives
an average Of S539, ,5ss.6l, as the sum of the
advances, and seven and half months as the
period of time for which they were made. The
interest and other charges, as shown in an
other part Of this report was for twelve months
S94, 777.42 or S7,9l4.7S per month. For seven
and half months it is S59,360.85. or at the
rate of II per cent. per annum. And to this is
yet to be added the agents commissions. Mr..
Kimpton is under the impression that his
average advance was greater than the sum
stated by your committee. But even if it was
500, ,O0O instead of $3.50, $50 81, the interest
without his commission) would amount still
to the high rate of 13! per cent. per .annum.
The loss sustained by the State in this mode
of dealing is obvious and it is augmented
apparently by the fact tina. all this risk, ex-
pense and trouble, resulted in the sale Of only
81 900 of bonds, and these at the moderate
rate Of 10 per centum. The act providing for
the payment of the interest on the public debt
in gold had been passed, and had added very
largely to the annual charge.
The interest paid by the Comptrol..
Ter according to the report of
1870, is.."............"...... Sl90,S19 A
The coupons paddy Mr.. Kimpton,
amounted Observation-Disclosures" 2O9,Ol4 81
ss9s, 1893 90
The premium on gold paid;by Mr.
Kimpton and charged in the
same account (C) C)is."..........." s4,962 90
s484, ,255 90
Thus raising the interest on the funded debt
that year to about Il per cent, instead of
per cent. and adding SS4,9 to the expenses
of the State. The face of the bonds it is true,
rose to so per cent. and upwards; but the State
c. Al CHI hn6