The Republican journal. [volume] (Belfast, Me.) 1829-current, 1871-11-16
RTLING FIR U DIS.
South Carolina Robbed of $3O,OOO,OOO.
THE GREATEST SWlNDLE OF The AGE.
Fradulent Issue of Bonds by the
Governor
NOTHING LEFT BUT INSOLVENCY.
| prom the n. Y. World

From the N. y. World.
For several days past the most start
Ing rUmors have been afloat in financial
circles, and rejecting seriously upon the
credit OF the State of South Carolina.
Fust il was said that an immense over-is-
.nc had been made by Mr.. kempton, the
State financial agent. This was quickly
followed by an announcement that every
member OF the State Government, from
the Governor down, had arrived in the
-ltY- These statements and facts had
>lch 4 powerful effect on the market that
HE bonds of the State tluctuated as vo-
lently Us ever did gold during the uncer-
tain days OF the war, the tendency, how
ever, being to weaken the value of the
bonds. Even after a most strict and thor
ough investigation it seemed almost i'm
possible TO give Il really connected state
ment of the actual condition of affairs,
nut certainly the widest reports yet pro-
mulgated do not exceed what is apparent
y true, to Judge from all that can be
halned from the most trustworthy SQUIRE
STARTLING STATEMENTS.
As facts about which there is no ques-
ton il may first be stated that the Ameri-
can Bank Note Company, of this city,
have printed bonds Of the State of South
carolina to the amount of S20,046. 900,
" inch have been passed into the posses
non OF Mi. kempton; that tor some pur-
pose The several members of the State
Government are in the city, and that other
gentlemen OF wealth. to whom the credit
'l the state is 4 vital question. are watch
0% thcif proceedings. 1t is said that
Governor scott on being questioned in re-
,jion to the printing OF this great amount
bonds admitted that they had been
printed bnt denied that all had been is
1od,- although he was unable or unwil-
1g Io say what the amount of the issue
.ily was. Those who charge the over
sue here step in with the question,
W hat was the object of printing these
.1ul9 il it was not the intention to use
.AclA, and ii there is no informally why
Irt The credit OF the State be hazarded by
withholding the facts ?' There was only
0nc WHY in which the bonds could have
H"eu legally issued, and that was under
rr}cr ot an act authorizing loans for the
purpose Of taking up other bonds OF the
state Bnt it is said that no part of the
money Vet raised has been used for any
~ach purpose. and that the debt which the
taxpayers convention Of May last dis
OaNered Ia be about $4,000, 900, was so
ulrmlly Increased that the State was
AHsoLl 'rELY INsoLNENT.
of rather would he If it should assume the
responsibility OF paying the debt which
h4s been heaped upon it. However, it is
highly improbable that the taxpayers ever
viii consent to saddle themselves with
ugh a responsibility, rs they have al
.ridy expressed a determination not to
assume an Indebtedness of over s. 900
5000. Taken in connection with the pres
,nt relicencc OF the South Carolina GOV
eminent officials. the following incident
casts suspicion upon their integrity:
During the session mentioned above OF
the taxpayers convention request was
made to Mr.. Parker. State Treasurer, for
permission to examine the accounts of his
department. to which he consented with
much show of carnestness, but when the
committee, to whom had been delegated
the duty OF investigation called upon him
after the adjournment of The convention,
he positively refused to let them see a sim
%le book.
STRATEGIC HETICENCF.
1t is admitted that up to the present
time ii has been impossible to point con-
clu>ively to any delinquencies as about
the same strategy is resorted to as that
adopted by the robbers of this city to con-
ceal their malieasance in Office This
Parker, who is a Northern man or carpet
Dagger, went 10 the State of South Caro-
Ina about three years ago a poor man,
and during that time on a salary of S.
500 per annum. has accumulated about
81 ,OOOO 900; and so with all the other
members of the State government-from
poor men they have risen to great wealth.
HEAVY CLAIMS.
Mr.. kempton, the financial agent, it is
asserted, brings claims against the State
ior commissions and services to the
amount of some S4,000,00O. and so closely
in league with HIM are the other officers
that they have not dared to resist the pay
lnent OF his claim, although much of it
has been proved to be for renewals Of
credit which have been made time and
again. and for each Of which transactions
he has charged commissions of various
Kinds amounting in the aggregate to
ab0nt fifteen per cent, ust the same as
though they had been new loans or tran
actions. SO in time he has in repeated
aommissions swallowed up more money
rhln the original loans amounted to.
POSSIBLE FAVORABLE FEATURE. -
One feature alone seems favorable to
The State credit. 1t is asserted most pos
lively, while admitting that Kempton
has made this frightful over-issue of
bonds, that his operations have been car
aied ON, not in the capacity of financial
agent OF the State, but on his own person
nj account, thus involving only his own
personal credit If this be true, then the
ontire overissue could be repudated
without discredit to the State. Again, it
is charged that all the money the State
has ever received from Kempton for loans
made by authority has been about - per
cent. of the gross amount the remainder
having been retained by him as commits
ions, and that of what it did receive the
state has had the benefit of very little, as
most of it had been spent for all manner
ct useless and even profligate purposes.
KEEPING THINGS DARK.
1t is further said that the members of
the government have used all manner of
devices to prevent facts from becoming
l.nown in this city that might raise sus-
I'ItlollS tl9 W lllt llHtlClill Integrity Vi llt
state, and thus make the bonds unmarked
able For instance, the interest on part
OF the debt is payable in New York and
part in Columbia, S. G.. That falling due
recently in New York has been promptly
psd, while not one cent has been receiv-
ca in Columbia of the amount due there
EXPENSES OF THE LEGISLATURE.
Again it is found that the expenses of
the last session of the Legislature remains
vet unpaid. 1t amounts to the very re-
spectacle sum Of $500, 600 This was dis
covered by some gentlemen who began
to wonder why no call had yet been is
sued for a meeting of the Legislature on
the 9th day of the present month, as has
been the custom heretofore. And they
naturally concluded that apprehension of
the discovery which would be sure to en-
sue when the Legislature met, had prompt
ed the Governor to disregard his duty in
this particular
TO conclude, it should be stated that
this information is from q source which
entities it to the highest credit The per-
sons piyinO it EXPRESSED a confident he-