The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1871-11-23
Tho Reported 0var;ssps Of State
Bonds,


weeks, with regard to the reported over
issue of South Carolina bonds, and in
spite of the denial Of the State officials,
50 general Is the belief Of something
wrong in the matter, that tho bonds
have been selling in the New York mar
ket at from 30 to IS per cent. Governor
Scott and Treasurer Parker, admit In
their publ shel card that So. .2o4.o 900 OF
bonds have been printed, but state that
some $4,000, 600 Of these bonds have
never been signed OF issued-in other
words they admit an issue OF sll, l,eo4,-
600 of bonds, which together with S.
$4,000 of registered stock, admitted to
he issued, amoupts.to sla,7A,oOO. But
according to Governor SCOTS estimate
of the public debt given In his letter Of
September last to Senator Scott Of the
ku-Klux Committee that debt amounts
only to some Ss.OOo,000, What the ne
cessity then Of this over-issus of 81 ,000,-
900 Of bonds and stook9 The whole
matter needs explanations thorough
exhibit of our financial condition.
something more explicit than the vague
and unsatisfactory statements OF the
published card. In the meantime we
commend to the parusal of our readers
the following analysis of the facts ex-
b;b,ted. from q well-considered article
of the Baltimore San:
On tho 1st Of October, 1867, as per page
3of Comptroller-General Neagie's re-
port Of May 1, 1871, the State debt was
IS. .407 ,2l5.23. In his letter of Septem-
her 20. 1871, to Senator Scott, of the
Congressional ku Klux Committee,
Gov. Scott gave tho total issue OF bonds
and stocks, old and aew, ~ 50, a2S, ,5A. ~,
and the contingent liabilities OF the
State arising from tho endorsement OF
railroad bonds as 50, ,6l3. .eos.2 20, making .
total debt Of Sic, ,241 2.30-thus: Actual
co 5lS 564. 10: contingent, $6,7l3, COS. %
fotal Sic. 24l, 1890. On the 9th of this
November this same Governor Scott,
his State Treasurer, Parker, and one
Dennis, signing himself chairman OF
tho Committee on State Accounts" Ger
tifv thus. 1T is true that S20,0l0, ,O0C of
bonds have been printed, of which
amount SS,VoV,VoV Aoso t'S'Sf o>Nn
stoned or issued, nor were they printed
with the intention to increase the State
debt. but are in the possession of the
State authorities; also, SS,50O, 900 ster-
ling bonds have been printed. but not
issued. and $500 UO0 of registered stock
are now in the hands Of the Treasurer
of the State, being o balance of .Sa, 0lo,-
600 issued.
Tho reader will here see that there
have been printed s2o,o4o,0Oo State
bonds, s3,50O,000 sterling bonds and
s5.O4O, 900 registered stock total s2s,-
$50, 1000. TO explain this preparation
of twenty-cight millions and half
the certiiers add: Tho Legislature
from time to time passed several acts
for the issuc of bonds "to pay tho in
d.btcdnoss Of the State" Subsequent
" it passed an act for Tho conversion
Of its securities. To provide for this
tho above amount in bonds was prin-
ted which has given rise to many
groundless Misrepresentation and
cross fabrications." Tho New York
World thus analyses these statements
of tho South Carolina managers:
.Governor Scott gives the total issue
of bonds and stocks, old and new, as
s9.52s,546.10; in his certificate Of No.
vember 6, 1861, he says there have
been issued $11, ,040 900 in bonds and
$a,540,OOo in registered stock-a total
issue of bonds and stocks of $l3, $780,
600. In sixty.seven days, according
to his account, the Issue of South Car.
olina securities has swollen from 3d..
5es,s64. 10 to 80, $50, ,000-an incresc of
$4,051 1850. Furthermore, he says
in his certificate of Nov ember 6, l87 l,
that there have been printed s28, $780,
600 in bonds and stock to pay the IN
dsbtedness Of the State and for the
conversion of its securities" Butwhy
prepare s28, $4,000 in November TO
nav or convert debt of sl6, ,24l,.72,
in September before2
It will be seen that We credit Gov
srnor Scott with tho whole debt he
reports, contingent as woll as actual.
though these railroad endorsements,
if they como back upon the State at
all. will not come back before their
several maturities, ranging from 1878
to 1889. Till maturity and default
those railroad bonds do not become
an actual liability Of the State, and
as there can be no possible dofault be-
fore 1878, why print bonds to pay or
convert them now7 Evidently he
must rulo this contingent liability Of
s6,7l2,6os,20 out. and consider the ac-
tual debt of $9,52S,564,l0 alone.