The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1871-12-21
Report of the Committee appointed to In.
Yestigate the Oyer.Issue of Bonds.

day last, the following report was presented by
Mr.. Bowen, from the committee appointed un-
der resolution authorizing an investigation
into the alleged over-issue of bonds. 1t will
be seen that the report sustained the allegation
and fixes the over-issue at upwards OF S6OOO,.
600, but it remains to be seen whether the Leg
islature has the nerve and integrity to adopt
the suggestion of the committee, and institute
proceedings against the guilty parties:
To THE HOUSE OF REPRESENTATIVES: The
committee appointed under the resolution au
thorizing an investigation into the alleged over
issue of State bonds, have had the same under
consideration, and beg leave to submit the fol-
lowing report:
The whole amount of the bonded debt of the
State, as shown by the report of the Comptrol-
ler General, on the 31st of October, 1S6S was
S. 4O7, ,3O6.27, exclusive of what is known as
the war debt To this amount add the bonds
issued to redeem the bills of the Bank of the
State, 81, ,25855O, making the old debt $685.
S56.27. To this amount there was, during the
years 1869 and 1870, added S500,O00 in bonds
to redeem bills receivable, and 10000 in
bonds which had been issued to pay interest on
public debt and had been sold by the Finan-
cial Agent, making the bonded debt of the
State, on the 31st of October, 1870, 81 665, $685.
27 There was also, at the same time, in the
hands of the Financial Agent, S1,OOo,O 600 OF
bonds for the relief of the Treasury, S50O,0OO
to pay interest on public debt and S70oOO0
Land Commission bonds, making grand total
of So, ,665, ,S5627, and showing that only $780,
900 new bonds have been issued up to 31st Oc-
tober, 1870, to wit: Bonds to redeem bills re-
ceivable $500,000; to pay interest on public
debt 81 100000; for relief of Treasury 81 ,OOO-
600; Land Commission bonds S700,000 total
S3, 100000. According to the sworn statement
of the State Treasurer, there are now signed
and outstanding S9,514, 900 of new State bonds.
Deduct from this amount the 100000 that
were out on the 31st of October, 1870, and We
find that S6,914,00O have been signed and put
upon the market, which, in the opinion of your
committee, is an over-issue. This conclusion is
arrived at after careful investigation and close
scrutiny of the Acts under which it is claimed
the authority was derived for the issuing OF
said bonds.
First Undor Act to authorize tho loan to
redeem the obi n known as the bills re-
ceiyable of the State of South Carolina, ap-
proved August 26, 1868, the Governor of the
State was authorized to borrow, within twelve
months from the passage of the Act, sum not
exceeding $780, 900, or as much thereof as ne
might deem necessary to redeem said bills.
Second. Under an Act to authorize the State
loan to pay interest on the public debt, ap-
proved August 26, 1868, the Governor was au-
thorized to borrow, within twelve months from
the passage of the Act, sum not exceeding
81 900, 900, or as much thereof as he might
deem necessary, to pay the interest on the pup
lie debt. These two Acts were amended by an
Act, approved March 26, 1869, extending the
| time therein limited, during which said bonds
might be negotiated, "to twenty-four months
from the passage of the said Act" to wit: Au-
gust 26, 1868.
Third. Under an Act to authorize loan for
the relief of the Treasury, approved February
II, 1869, authority was given to borrow, within
twelve months, 100000, or as much thereof
| 81 might be deemed necessary for the relief OF
| the Treasury of the State.
The Act authorizing loan for the relief Of
| the Treasury expired on the 18th of February,
| 1870. and the Act to authorize q loan to redeem
the bills receivable, and to pay the interest on
the public debt, expired on the 26th day OF
| August of the same year; and OH the 0lst Oc-
tober, 1870, the State Treasurer reports to the
omptroller-General that only So, ,2O0,0 600 new
bonds were outstanding; leading your commit,
tee to the conclusion that the amount deemed
necessary, according to the language OF the
above Acts, had been obtained by the issuing OF
that amount in bonds and if said amounts had
not been negotiated up to that time, then no
|
issue of State bonds. This position, your COM
mittee thinks, is proven by the passage of the
Act amending the two Acts approved August
| 26, 1861 for in those Acts the time originally
alioped in which to negotiate the amount re-
ouircd was twelve months. A sufficient amount
not having been obtained, it was deemed neces-
sary to apply to the General Assembly for on
Act crtending the time t,celre months longer.
Your committee thinks that the Act APPROX
ed March %, 1869, providing for the conver-
sion of State securities was not intended to be
used for the purpose of increasing the State
debt, but solely for the object named in the Act
the conversion of some outstanding security
which, when converted, should be retained IN
the Treasury as voucher for the conversion
bonds issued But if this Act could possibly
be construed into the issuing of bonds to Dego-
tate loans authorized under the Acts above
referred to. the expiration of the limitations
contained therein would certainly preclude such
a construction.
The above arc all the Acts authorizing the IS
suing of bonds for any purpose, save those Tor
redeeming the bills of the Bank of the State
and creating the sterling loan. The bonds Is
sued under the first Of the last named Acts
have been charged to the old debt; and the
others are said to be in the hands of American
Bank Note Company in the city of New York.
The law requires the State Treasurer to report
to the Comptroller General, at the end of every
month, the financial condition of the State
ani it was in pursuance of this law your COM
mittce presumed that he made the report OF
the 3lst October 1870 fixing the amount OF
new bonds then out at 81, 200, 900. The testi-
mony of the Comptroller General taken by the
committee shows that although the Treasurer
has made report to him at the end of every
month since the above date, up to September
1871 yet he has failed in all these reports to
give account of further issue of bonds, and
There is no information in the Comptroller Gen
erals office, according to his sworn testimony
that the State debt has been increased. If 9th
er evidence is required of this oyer-issue, it j:
contained in the testimony of his Excellency
the Governor, who states that he has signed
| 1 i IL. do fo