The Newberry herald. [volume] (Newberry, S.C.) 1865-1884, 1871-05-24

In view OF this condition OF the
finances Of the State. your COM
mittec would respectfully make
the following recommendations,
viz:
l. That his Exceilcncy the Gov-
ernor be respectfully requested to
confer with the Financial Agent
who is now in Colum bia-and
to telegraph to New York not to
sell any more bonds Of the State
at less than so per cent.
2. That his Exccllency be re-
specially requested to proceed to
New York and to make the most
economical arrangement possible
for holding this s1,S0O,0O0 Of
bonds until the above limit Of 80
per cent. becomes attainable.
3. At 50 per cent, $4,000 900 of
bonds will discharge the debt Of
100000 due to the Financial
Agent, and release $500. 900 Of the
hypothecatcd bonds. This sum
of bonds your committee recon-
mend that it may be respectfully
suggested to the Governor to use
in the following manner:
The amount Of funded debt now
payable, and that approaching
maturity, combined, is as follows ::
Fire loan bonds, Barring loan,
100000; fire loan stock, s304,-
600; amounts overdue, s744,000;
State House bonds to mature on
the 1st July, 1871, s250,O0O-
s994,000.
Your committee recommend
that the sSOJ,OOO Of surplus bonds
above referred to, as soon as they
may be released from hypotheca-
ton, be applied to the satisfaction,
in part, OF the above debt Of s994,-
600. The s744,000 Of overdue
bonds constitute so much Of the
fire loan debt for which the capi-
tai Of the Bank Of the State is
pledged, and your committee in
duIge the hope that it may be dis
charged from that source.
If the arrangements suggested
by the committee can be carried
into effect, the result will be as
follows: Sum total Of debt as al
ready stated, sS,S65,9O8.99; add
the bo:ds now in the hands Of tie
agent and proposed to be issued,
l,8OO,O O,OOO-sl0,6 ,6G5, ,9OS.9S; deduct
the advances made by the agent
and proposed to be paid, 100000
80, ,S65, ,90S.96; deduct the amount
Of funded debt proposed to be paid
by the 100000 Of surplus bonds
on the basis of eighty per cent.
for the bonds, viz: sG40,O00-s9,-
25,9OS.9S; should the remainder
Of the S994,000 Of funded debt.
now pressing for payment, be dis,
charged out of the assets Of the
Bank of the State, viz: s354.000-
sS,S7l,90S.9 the final sum Of tie
funded debt will be sS,S71,90S.9S
1t may be reasonably objected TO
these suggestions that the present
market price Of the bonds is only
sixty-fvc per cent, while tho cal
culations made proceed on the
basis of eighty per cent. for the
bonds. But it is quito reasonable
to expect that upon this cXhibi-
tion of the exact condition Of the
debts Of the State; and upon the
concurrence of his ExcclIcncy the
Governor, in the general course Of
management herein recommended,
there will be an immediate and
considerable advance in the mar
ket value Of the bonds, and great
ly increased facilities for holding
them off the market.
Referring now once more to the
sum Of the funded debt, the COM
mittec deem it proper to state
that they had expected to verify
the account by the evidences in
the Comptroller's Office, but they
were disappointed. The Act Of
August 26, 1868, authorizing an
issue of bonds for tho payment OF
the bills receivable Of the State,
provided that the bonds should be
signed by the Governor and the
Treasurer. Subsequent Acts iol.
lowed the same course. In con-
sequence, there is no record kept
in the Comptrollcr;s office; the
preceding statement, under the
authority Of this officer, is derived
from the Treasurer 1t is con-
frmed by the Governor, who uni
ted with tho Treasurer, Mr.. Par
ker, in giving to the committee
every assurance of its correctness.
And it appears to your committee
that the several issues and sums
Of bonds described, arc Of unqucs-
tionable legality and force rs OBJ
legations Of the State. 1t seems
proper further to explain that
the bonds under the Act of
August rs, 1868, "for the pay
ment Of the interest on the
public debt" were at first issued
With the above words embodied
in the form Of the bonds. That
these words being deemed objec-
tionable, another set Of bonds for a
like amount S1,000,c00) was pre-
pared and executed, and were sent
to the Financial Agent TO supply
the place Of the objectionable is
Hp