The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-12-16
An Unpleasant Surprise-The Report OF
Bowen's Committee, and their Charges
against tho State Omciais - Warm
Work Expected-A Characteristic Dis
cussIon-The Case OF Judge Thomas.


effectually accomplished that purpose, and the
fact that Bowen has been ever since "roaring
as gently as sucking dove" had been gene
rally accepted as confirmation of that asser
tion. The report came up at an early hour ol
the day, upon the call of special committees
and is as follows:
The Committees Report.
The committee appointed under the resoln-
ton authorizing an investigation into the al.
legged over-is>ue OF State bonds have had the
same under consideration, aud beg leave to
submit the following report:
The whole amount of the bonded debt Of the
State, as shown by the report Of the comp
troller-general on the 3lst October, 1868. was
$5, 407, ,S06 q, exclusive of what Ia known as
the war debt. To this amount add the bonds
issued 10 redeem the bills Of the Bank OF the
State, 81 25s, $50, making the old debt Sc, $685.
s56 n. To this amount there was during the
years 1869 and 1870 added $500, 900 10 bonds TO
redeem bills receivable and s50O,O00 In bonds
| which had been issued 10 pay interest on pub
lie debt and had been sold by the financial
agent, making the bonded debt Of the State
was also at the same time in the hands of the
financial agent 81 ,O0O, 900 of bonds for the re-
/ lief of the treasury, S500,000 to pay interest
on public debt. and $700, 900 land commission
| bonds, making grand total OF SO 665,S56 n.
and showing tnat only 5000, ,00S new bonds
have been issued up to 3lst OF OCTOBER, 1870,
| to wit:
Bonds to redeem bills receivable. $500 o0o
Bonds to pay interest on pubic deu.... 1000 600
Bonds for relief OF the treasury. 0Q0
| land commission bonds. ............... 700,0 ,00O
4 TOTAL. So'<VO,uVV
According to the sworn statement OF the
State treasurer, there are now signed and ont.
standing S9,5l4. 600 Of new State bonds. De-
duct from this amount the $4,000, 900 that were
out on the 3lst October. 1870, and We find
that SC, ,3l4, 900 have been signed and put upon
| the market, which, In the opinion OF your com.
mitiee, Is al over-issue.
This conclusion is arrived at after careful
investigation and close scrutiny OF the acls
under which 1t is claimed the authority was
| derived for Issuing said bonds.
First. Under an act to authorize loan 10
redeem. the obligation known as. the bills re-
ceiyabie of the State OF South Carolina, ap-
proved August 26th. 1868, the Governor of The
STA was authorized to borrow, ,olthln tloeLUe
| months from the passage of the act, sum not
exceeding $500, 900, or as much hereot as ne
n,iqht deem necessary TO redeem said 6luS.
Second. Under an act to authorize State
loan to pay interest on the public deot, ap-
proved August 26th, 1868, tine Governor was
authorized to borrow ooithin tre!Ue months
from the passage of the act a sum not exceed
ing loco, 900, or as much hereofdS ne might
deem necessary TO pay the interest on the puo-
| lie debt.
These two acts were amended by an act ap-
proved March 26th, 1869, extending the time
! therein limited during tohich said loans might
| be negotiated "to t,oenty-fou months, rom the
passage of the said acts" 10 wit: The 26th
August. 1868.
the relief of the treasury, approved 18th Feb
ruary, 1869, authority was given to borrow
uithin t,oelue months one million of dollars, or
as much thereofds might be deemed necessary
for the relief of the treasury Of The State.
The act authorizIuga loan for The relief OF
the treasury expired On The 18th OF February,
1870. and the acts TO aulhorlze q loan 10 re-
deem the bills receivable and to pay the In
terest on The public debt expired on the 26th
day of August, of the same year, aud on the
3lst October, 1870 the State treasurers report
to the comptroller general shows tfat only
So, ,200, 900 new bonds were outstanding, lead
ing your committee 10 the conclusion that the
amount deemed necessary according 10 the Ian
guage of the above acis had been obtained ny
the issuing of that amount IN bonds, and, If
said amounts had not been negotiated up TO
that lime then no authority existed under the
law for the further issue OF State bonds. This
position your committee thinks is proven oy
the passage of the act amending the two acls
approved 26th August. 1868, for In those acts
the lime originally allo,oed In which to nego-
tiate The amount required was twelve mouths.
A sufficient amount not hau,ng been obtained,
it was deemed necessary to apply to the Cen
eral Assembly for an act extending the tune
t,oelve months longer.
Your committee thinks that the act approv-
ed March %, 1869, providing for the CONVEX
sion of Siale securities, 1ouS not intended TO
be used for the purpose Of Increasing the
S.ate debt, but solely ior the object named IN
the act THE CONVEX sion of some outstanding
security" which, when concerted, should De
retained in the treasury as voucher 10r tne
conversion bonds issued; but.l THIS act could
D; ssibly be construed into the issuing OF bonds
to negotiate loans authorized under me @ acls
above referred to. the expiration OF the l'mi-
rations contained therein would certainly pre-
ude such a construction.
The above are all the acts authorizing Inc
issue OF bonds for any purpose save lnose lot
redeeming the bills of the Bank OF tne Stale
and creating sterling loan. The BONDS is-
sued under the first OF the last named acls
others are said to be In the hands oil the
American Bank.Note Company In the City OF
New York.
The law requires the State treasurer to re-
port to the 0mpiroljer-generaI, at the END OF
every month. the financial condition OF tine
State. aud il was in pursuance OF this law, your
committee presumps, that he made the report
OF new bonls then out at So, 200 600. The les
| timony of The complrolier-general.t taken by
| the committee, shows that, although the
treasurer has made report to him at the end
! of every month, since the above dat :, up 10
| September, 1871, yet he has failed in those re-
ports to give any account of a further issue Of
bonds, and there Ia no Information in the
omproer-general's office. according to his
sworn testimony, that the State debt has been
| increased.
,ssne. it ia contained IL the testimony Of his
Exceilency the Governor, who states that
be has signed and delivered to the State
treasurer bonds for the conversion OF
500, 900 Issued by the land commission;
also the s., 100000 for the relief of the lreasu-
ry. aud large portion of these 10 pay the ~
terest on The public debt. Yet all or near.y
Indebtedness OF the State. Your committee
| have reported the facts, and the laws under