The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1871-11-07
South Carolina Finances-A Alleged
Frauds In State Bonds.

New YORK, November g. The New
York World to-day has the following state
ment:
'sThe American Bank Note Company have
printed bonds of the State Of South Carolina
amounting to $20,046,000, which passed
into the hands of Mr.. Kempton, State
Financial Agent. All the members Of the
State Government are here; and other
gentlemen, to whom the credit of the State
IS vital question, are here watching their
proceedings. IL is said Governor Scott
admits that the bonds were printed, but
denies that all have been issued though
he does not state what the amount of the
issue was. No part of the money yet
raised has, it is alleged, been used to take
up other State bonds.
MIR. Kempton, it is asserted, brings
claims against the State for services and
commissions to the amount of a, 0OO, 600,
and the other officers have not dared to re-
sist the payment thereof, though much Of 1t
proved to be for renewals of credit, which
were made time and again. and which were
charged for az thong new loans. The COM
missions, it is said, swallowed up more mo-
ney than the original loans. 1t is positively
asserted, however, that Kempton's opera
tions have been carried on not In the capa.
city OF financial agent of the State, but on
his own account, thus involving only his
own personal credit. If this is true, the en-
tire amount can be repudiated without dis.
credit to the State. Again, 1t Is charged
from Kempton for loans has been twenty
seven per cent. of the gross amount, the
remainder being retained as commissions.
The expenses Of the last Legislature,
some $3.50, 900, are not yet paid"
The World concludes by stating that its
information is from source emitting it to
the highest credit. The persons giving it
express confident belief that. n fraudulent
issue, amounting to S20,O4G,0O0 of State
bonds, has been negotiated, and the money
misappled, and are convinced that If it
should prove that the State is involved to
that amount it will be irrevocably insol.
vent.
The following is the copy of an official
who are here in relation to the financial af-
fairs of South Carolina:
New YORK, November 5, 1871.
To the Public Many false impressions
and statements have been made and pub
lished against the credit of the State of
South Carolina. It is true that 500, 204, 600
of bonds have been printed, by which
amount $4,000, 900 have never been signed
or issued !; nor were they printed with the
intention to increase the State debt, but
are in possession Of the State authorities !;
also $500, 900 sterling bonds have been
printed, but not issued. Two million five
hundred thousand dollars of registered
stock are now in the hands of the treasurer
of the State, being the balance of 5000, 900
issued.
The Legislature from time to time passed
several acts for the issue Of bonds to pay
the Indebtedness of the State. Subse-
quently it passed an act for the CONVEX
sion Of its securities. To provide for this
the above amount in bonds was printed,
which has given rise to many groundless
misrepresentation and gross fabrications.
b. K. SCOTT,
Governor South Carolina.
MILES G. PARKER, Treasurer.
JOHN B. DENNIS,
Chairman Committee on State Account.