The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-11-29

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terms for the State, the General Assembly an.
thorized the Governor, attorney-general aud
the treasurer, "to appoint, under a commits
sion signed by them, some responsible bank or
banker In the City of New York, to act as
financial agent Of the State.n -
To this end visited New York and con.
ferred with leading banks. They ell declined
the agency, alleging thatth duties were ar
duous and the time ofpayment uncertain; that
we were only borrowers In the market.
WMie thus endeavoring to secure the servi-
ces OF responsible and efficient financial
agenl, the name Of Mr.. b. q. Kimpton was
presented. He was highly endorsed by prom
bankers In New York, among whom were the
presidents Of the Broadway Bank and the
Bank ofthe Republic =
Although .averse to appointing any indiyid-
ual banker financial agent, for reasons which
time has since fortified, there then appeared to
be no other alternative, and !, therefore, as one
appointment of Mr.. Kmpton,s but on the con-
ditlon that he would give q bond to the State
In the sum Of five hundred thousand dollars
($500, 0,000.l conditioned for the faithful dis
charge of bis trust as financial agent Mr.
Henry Clews, a prominent banker of New
man, and was afterwards informed by the
treasurer that Mr. KImpton had executed and
fled his bond. -
1t Is proper that l should here remark that
the law did not require the financial agent to
give o bond, nor are bonds ever required of
their financial agents by other States, out In
sisted upon 1t, out Of an abundance Of caution
fact simply to show that this trust was not care
lessly conferred. In referring to 1t do not
mean to intimate that the depreciation In our
securities bears any relation to the bond OF the
financial agent, for, even though his bond had
exceeded In amount the total value Of our &C.
curities In bis hands, that depreciation and
the consequent loss to the State could not haye
been thereby prevented, as it would have In
demniHed the State only In the event Of damage
of the agent neither Of which Is alleged against
him.. N .g n
Subsequent events have made 1t mansBst
that 1t was grave mistake to appoint an In
dividual instead of .charterEt company as
our financial agent.
An individual banker, whatever may be his
capacity as 9 fnancier, cannot In the man
mand the same high degree Of confidence on
the part VI capitalists tnat corporation can.
Especially Is this the case when the basis Of
the proposed negotiation consists OF Q class OF
securities new to the market, at 9 time, 100,
when there was an active speculative move
Southern States, and the value Of the currency
to holders was constantly made to fuctuate
by operations of speulators In the gold market.
Hence, again visited New York q year ago
for the purpose of efectlng change In the
financial agency. found this impracticable,
as the State was indebted to the agent, and
could not then arrange 10 liquidate that In
debtedness. ti
The financial agent has probably done the
best he could, under the circumstances, en-
| barrassed and checked as he was bysconstant
'sbearn movements, originating Ia. the State,
as part Of an organized scheme to dtscredlt
Its existing admi1istrsiion.
Nearly every leading man-ef the oppoet-
tion.those who had capital and those who
had none, but pretended to have it Joined In
this scheme. ~ ~
am ready to take my share of the respou-
sibility for our present financial efnbarraSs-
ment, but those citizens who combined against
| the credit Of the State, at home. and abroad,
aud systematically deprecated the market
value Of its securities, cannot evade theirs.
I am, In public estimation; held responsible
for the action Of the financial board, when, In
law aud In fact, the Governor has no more
power In the board than any private citiEen
who might be.a member OF 1t. i would add,
In reference to the financial agent, that he has
been greatly embarrassed BY the practice, on
the part Of the treasurer, of dHaWtng Ap0Rth6
agency for funds 70 meet the gqr6onkexR Req99
j lot the State, In the Z u
lriodss Axed f6e the pan IS o
j;ssing auAttrg dss " ips sag2Ile vet
treasurer fof this course, ds, he dbhbtIs1a
thought 1t warranted By the exIgencies Of the
treasury; but the practice is q bad one, and
would recommend that 1t should be prohibited
BY proper legislation, which should at the
same time provide that hereafter no money
shall be borrowed or debt contracted TO definy
the current expensesof the State Government,
but let all those to whom money is due from
the State await the collection Of the taxes.
This course, coupled with . system OF rigid
retrenchment, wiflBoon lift the State above al
present financial embarrassments, and pre-.
vent their recurreuce1 In the future.
For detailed statement OF the transactions
of the financial agent, I refer you to his report
to the ptrollef-generaL for the qusrteI
ending September 80, 1871.
Expenditures or tho state Government.
| While holding the political opponents Of the
State Government responsible for the great
depreciation In the market value of our securi
tfes-a depreciation directly. due to their con,