The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-11-09
"RUIN AHEAD"
The Over Issue OF South Carolina n
Bonds About $50, ,0OO, ,oO0-North Caro-
lima similarly Robbed.

The New York World of Monday contains a
second edition with corrections and addi-
aons) of the history of the reported over-issue
of State bonds. 1t says:
The report published in this paper yester-
day of the discovery Of tremendous over
issues of South Carolina bonds by the State
sensation In financial and commercial circles
on account OF the severe losses to which pur-
ohasers may be liable, and In social and politi-
cA clrcies on account Of the depravity to
which 1t too clearly points as existing amongst
the irresponsible agents who have been,
1t-sSsgonet rule, thrust upon the peo-
pie OF the Southern States as Execu.
live State officers. Information received
since the publication of the article in question
shows 1t not only to be correct, but even 30
tempered in The interest Of truth and Justice
towards all as to fall far short Of the real con-
dition of affairs. It was stated that the sum
of $50, ,046, 900 in bonds of the State OF South
Carolina had been printed by the American
Bank Note Company of this city and passed
into the possession OF the State financial
agent; that every member Of tho State gov
ernment was here, from the Governor down,
and that party OF the wealthy gentlemen
of the State representing the taxpayers
nendeavorIng to find or the actual financial
condition Of the State that 1t had long been
known that the Sta.e debt had been fear
fully increased, but to what amount 1t
had been impossible to arrive at, as the
oficials had all refused Information on the
subject, and the State treasurer had careful
ly Kept the books OF his department locked
from the inspection of the &c ntlemen who had
wished to Investigate theLl with view of
learning the truth; that the State financial
agent had, besides making The over.issue OF
bonds, 30 reduced the amount, raised on the
credit of the State by compi .ated system OF
commissions to himself, that o NY some TWEEN.
ty-seven per cent. Of money raj ed by him had
and rauch OF this, which had ,een raised TO
meet maturing obligations, had been used for
other purposes, and thus not clly leaving the
debt unpaid, but increasing tn, aggregate. In
relation to the printing Of the bonds, 1t was
stated that the Governor (Scott) had
nled that they had all been used, or that 1t
was the intention to put tht m Into the mar
ket Again, 1t was said thatShe State agent
had issued the bonds, but not on the credit OF
the State, but on his own individual credit, IN
which case the State would not be involved,
as 1t could honorably refuse to shoulder the re.
sponsibility of paying them. One thing, how
ever, is certain, that 1t Is impossible for those
most Interested to get any satisfactory replies
to their inquiries from ahy OF the officials.
They have tried to have the Governor explain
why 90 great an amount of bonds have been
printed II they are not to be used, and also
10 get from him some decided estimate Of the
actual Indebtedness Of the state, but they were
only met by evasions and subterfuges tending
to throw dust In their eyes. Worst OF all, 1t
was stated that ii all the facts in relation to the
over.issue were true, then the State was
utterly and irrevocably bankrupt. Now for
the new developments. It Is discovered
almost beyond doubt that the over-issues
are palpable fact, and that instead of $20,-
e46, 900 they will reach the figure of $50, 046,-
900; that Of this amount SIS, 600, 900 have been
signed, sealed and shipped to Europe for sale
there, and that the remainder have been put
into the market here. But these fearful trans
actions it Is now found are not confined to the
State of South Carolina officials. Immense is-
sues of much the same character have been
made by those who at present hold control OF
the finances Of the State of North Carolina.
And o prominent Southern railroad has been
In the same line OF business. Regarding these
two last 1t is not possible at this time to give
any reliable figures, but in few days 1t will
be given to the public, together with something
official about the South Carolina matter.
Governor Scott's Version Of tho Affair.
The New York Journal of Commerce Of
Monday says:
Our Washington correspondent has con-
versed with Governor Scott. OF South Carolina,
aAd received from him the emphatic assurance
that in no case can the debt of that State ex-
ceed $4,000 All bonds heretofore sold
are genuine, and represent full value received.
Interest will be paid promptly on the lst Of
January. The Governor thought 1t probable
that sensational reports would be circulated to
alarm bondholders, and he desired that the
latter should be warned against crediting
them.
A Dangerous Horse to Ride.
The Columbia Union (Radical) Of yesterday
says:
The Courier OF yesterday says:
'If the kilograms which we publish this
morning are true, our taxpaytDg citizens have
but one course to follow, and that is to repu-
diate every dollar of the debt OF the State
which has been contracted under the corrupt
administration of Robert &. Scott"
Whether the debt spoken OF by the Courier
means the bonds Issued by the present State
administration, or the actual debt created by
1t, we are unable to say. II 1t means the bonds
Issued, 1t will ind that there are numbers of
Others VINO think such course as Is suggest
ed by the Courier is not only appropriate, but
one which ts likely to be pursued. Indeed,
there are not few who openly advocate re-
pudiation oi the tohole debt, not a part of 1t.
The class that advocates such step ia not
one that holds any considerable portion of
these securities, and 1t cannot readily under
stand why 1t should be taxed to pay for q dead
horse.
This question of repudiation is one that In
terests more persons than the Courier Ia
laware OF, and one that should not be lightly
handed. If such course Is TO be pursued, the
point where discrimination is to begin will
an A. 10 Ar,<