Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1871-12-07

ate conspiracy on the part OF tn
white people, the Democratic pres
and the Taxpayers Convention, AL
these he abuses in round terms ant
in a spirit of great bitterness.
| The FINANCIAL AGENT OF THE
STATE.
| When the present State Govern
ment wasinaugurated, (July 6. 1863.
there were only forty-fve (45) dollars
in the State treasury. A large bond
ed. and floating debt, incurred by
former administrations, had to bt
provided for. The ancient credit o
tho State, that had once stood soiust
ly high in the money markets Of the
world, was gone. 1t had been Blow
away with the smoke Of the first CUR
fired at Fort Sumter.
In order to meet the current expen.
ses, until money could be realized
from the tax levy, it was necessary
for the State to borrow on its securl-
ties. To effect this object on the best
terms for the State, the General As
sembly authorized the Governor, at
torney--general and the treasurer,
to appoint, under a commission
signed by them, some responsible
bank or banker in the City Of New
York, to act as financial agent Of the
State.
To this end 1 visited New York
and conferred with leading banks.
They all declined the agency, alleg,
ing that the duties were arduous and
the time of payment uncertain; that
we were only borrowers in the mar
ket.
While thus endeavoring o secure
the services Of a responsible and efi-
cient financial agent, the name OF
Mr.. II. H. Kimpton was presented.
He was highly endorsed by promi-
nent officials in the State, and by
leading bankers in New York, among
whom were the presidents OF the
Broadway Bank and the Bank of the
Republic.
Although averse to appointing any
individual banker financial agent,
for reasons which time has since for
tilted, there then appeared to be no
other alternative, and l, therefore, as
one of the financial board, gave my
assent to the appointment of Mr..
Kimpton, but on the condition that
he would give bond to :,le State in
the sum Of FIVE hundred thousand
dollars (S500,O00) conditioned for
the faithful discharge Of his trust as
financial agent. Mr.. Henry Clews, a
prominent banker Of New York, was
proposed and accepted as bonds-man,
and 1 was afterwards informed by
the treasurer that Mr.. Kimpton had
executed and fled his bond. .
1t is proper that should here re.
mark that the law did not require
the financial agent to give a bond,
nor are bonds ever required of their
financial agents by other States, but
insisted upon it, out Of an alum
dance of caution in tie interest Of
the State. l mention this fact tslmply
to show that this trust was not care
!esslv conferred. In referring to it |
do not me to intimate that the de-
probation 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 securities in his hands, that de-
.preciation and the consequent loss to
the State could not have been thereby
prevented, as it would have indemni-
lied the State only in the event OF
damage received through neglect or
fraud on the part of the agent,
neither Of which is alleged against
him.
Subsequent events have made Ii
manifest that it was a grave mistake
TO appoint all individual instead Of !,
chartered company as our financial
agent.
An individual / nker, whatever
may be his capacity as iinancler,
cannot. in the management OF large
money transactions, command the
same high degree OF confidence on
the part Of capitalists that corpora
ton can.
Especially is this thc case when
the basis OF the proposed negotiation
consists Of Il class Of securities new
to the market, at time. too, when
there was all active speculative move
ment in the stocks and bonds of all
The Southern States, and the value
Of the currency to holders was con-
s,antly made to fuctuate by opera
tions Of spectators in the gold mar
ket.
Hence, again visited New York
year ago for the purpose Of effect
ing a change in the financial agency.
I found this impracticahle, as the
State was indebted to the agent, and
could not then arrange to liquldate
that indebtedne s.
The financial agent has probably
done the best he could, under the cir
cumstances, emba, rassed and checked
as he was by constant " bear" move
ments. originating in the State, as a
part OF an organized scheme to dis
credit its existing administration.
Nearly every leading man Of the
orpostion-those who had capital
and those who had none, but preten-
lel 10 have it-joined in this scheme.
am ready 10 take my share Of
the responsibility for our present f.
nancial embarrassment, but those
citizens WHO combined against the
credit OF the State, at home and
abroad, and Systematically deprecia-
ted tie market value of It's securities,
cannot evade theirs.
I am, in public estimation, held
responsible for the action Of the f.
nancial board, when, in law and in
fact. the Governor has no more power