The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1871-12-06

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1DNESDAY, NOVEMB]
South Carolina to walk more humbly,
and to show more grateful appre-
citation of the generous magnanimity
i that they bave received at the hands
Of the National and State Govern
ments, by honestly endeavoring, in
some measure, to repair the ruin that
they have made. AS these persons
have been pleased to except from
their proposed scheme of "repudia-
ton" the .sold bondsr of the State, it
may be we'll to inform them that
should the evil day como for South
Carolina to proclaim. her. per6dy or
Insolvency, by repudiating any part of
her valid debt, she will not first dis
honor that class Of her obligations liz
the benefits arising from tho creation
4 Of which the largest number Of her
people have shared. On such finan-
cial dooms-day the last would surely
not be the first.
In dismissing this branch Of my
message, I would observe that the 10
cal combination against our finances
was simply Ku> Kluxism applied to
the State credit, and naturally had,
upon the exchangeabIe value Of our
securities, the same depressing effect
which that Infamous system has had
upon the material prosperity of the
State. -.
TIE FINANCIAL AGENT OF THE STATE
When the present State Govern
ment was inaugurated, (July 6, 1862
there were only SIS in the State
Treasury. A large bonded and float
ing debt, incurred by former admins
trations, had to be provided for. The
ancient credit of the State, that had
once stood so justly high in the mon
ey markets Of tho world, was gone.
It had been blown away with the
smoke Of the first gun fired at Fort
Sumter. ..
In order to meet tho current ex-
penses, until money could be realized
from the tax levy, it was necessary
for the State to borrow on it's securi-
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 commissioned 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, I visited New York, and
conferred with leading banks. They
all declined the agency, alleging that
the duties were arduous and the time
of payment uncertain that we were
only borrowers in the market. While
thus endeavoring to secure the SER
vices of a responsible and efficient Fl
nancial Agent, the name Of Mr. II. Fl.
Kinptou was presented. He was
highly endorsed by prominent ofiici.
ais in the State, and by leading bank
ere in Now York, among whom were
the Presidents of the Broadway Bank
and tho Bank of the Republic. AL.
though averse to appointing any in
dividual banker Financial Agent, for
reasons which time has since fortified,
there then appeared to bo no other al
tentative, and I, therefore, as one
of the Financial Board, gave my as
sent to the appointment of MIR: Kimp-
ton, but on the condition that he
would give a bond to the State in the
sum of $5OO,OO0, conditioned for the
faithful discharge Of trust as Finan-
cial Agent. Mr.. Henry CLOVIS, a
prominent banker Of New York, was
proposed and accepted as bondsman,
and was afterwards informed by the
Treasurer that Mr.. Kimpton had ex.
ecuted and filled his bond.
1t is proper that I should here re-
mark, that the law did not require the
Financial Agent to give q bond, nor
are bonds ever required Of their f.
nancial agents by other States; but l
insisted upon it, out of an abundance
Of caution in the interest Of the
State. I mention this fact simply to
show that this trust was not careless
ly conferred. In referring to 1t, I do
not mean to intimate that the depre-
ciation in our securities bears any re-
lation to the 'hond Of the Financial
Agent, for, even though his bond had
exceeded in amount the total value of
our securities in his hands, that de-
probation and the consequent loss to
the State could not have been thereby
prevented, as it would have indemLi-
fed the State only in the event Of
damage received through neglect or
fraud on the part of the Agent, neith-
er of which Is alleged against him.
Subsequent events have made it man
ifest that it was grave mistake to
appoint an individual instead Of q
chartered company as our Financial
Agent. An individual banker, what
ever may be his capacity as 6nan-
|cier, cannot, in tho management Of
large money transactions, command
the same hi gh degree of confidence,
on the part Of capitalists, that q cor
poration can: Especially is this the
case when the basis Of the proposed
negotiation consists of a class Of Sc
curities new to the market, at a time,
too, when there was an active specu-
lative movement in the stocks and
bonds of all the Southnrn States, and
the value of the currency to holders
was constantly made to fuctuate by