The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1871-11-29

lsyay Bank and the Bank ,of the Repub.
lic. Although averse to appointing any
kipaividual banker Financisi ASent, "a,
reasons which time has siicS fortified,
there then appeared TO be NO pther altet.
native, and I, therefore, as sohe Of ttts
FINANCIAL Board, gavesmy assent to tie
appointment OF Mr.. Kimpton; but On
the condition that he would give q bond
to the State in the sum OF $500, 600, CON.
ditioned for the faithful discharge OF his
trust @as Financial Agent. Mr. Henry
Ulews,a q prominent banker Of New York,
was proposed and accepted as bon6sman.
and was afterwards informed by the
Treasurer that Mr., Nmpton had exc.
coted and fled hts bond. T. s~Rri = Y
It is proper that should here remark,
that the law did not require the Finan!
cial Agent to give q bond; nor are bonds
ever required Of their financial agents BY
other States; but I insisted upon Il, ont
OF an abundance Of caution ia the inte.
rest Of the State: 7. msntion' this fact
simply to show that this trust was not
carelessly conferred. In referring to il,
do not mean to intimate that the de-
probation In our securities bears any re-
lati0u 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 depre.
ciation and the consequent loss to the
State could not have been thereby pro-
vented, as 1t would have Unidentified the
State only in the event of damage re-
oeived through neglect or fraud on the
part OF the Agent, neither of which is
alleged against him. Subsequent events
have made it manifest that it was grave
mistake to appoint an individual instead
OF chartered company as our Financial
Agent An individual banker, whatever
may be his capacity as q fnancier, can
not. in the management Of large money
transactions. command the Same high
degree of confidence, on the part of
capitalists, that corporation can. Els.
pecially is this the case when the basis Of
the proposed negotiation consists of
GLASS OF securities new to the market, at
time, too, when there was On active
speculative movement in the stocks and
bonds of all the Southern States, and
the value OF the currency to holders was
constantly made to fuctuate by opera
tons Of speculators in the gold market.
Hence, eSSaa!n visited Me~ York, year
ago. for the purpose of effecting a change
in the Financial Agency. I found this
lmpraotioable, as the State was indebted
to the Agent; and could not then arrange
to iquidate that indebtedness.
The Financial Agent has probably
done the best he conld, under the cir-
oumssances, embarrassed and checked as
he was by constant t'bear" movements,
originating in the State, as part of an
organized scheme to discredit it's existing
administration. Nearly every leading
man OF the opposition those who had
capital and those who had none, but pre-.
tended to have it-joined in this scheme.
am ready to take my share OF the re-
sponsibility for our present financial en-
barrassment; but those citizens who
combined against the credit of the State,
at home and abroad, and systematically
deprecated the market value of its secu-
rites, cannot evade theirs. am, in
public estimation, held responsible for
the action Of the Financial Board, when,
IN law and in fact, the Governor has no
more power in the Board than any pri.
vate citizen who might be member Of
1t. L would add, in reference to the
tInaDclai Agent, that he has been greatly
embarrassed BY the practice, on the part
OF the Treasurer, OF drawing upon the
agency for funds to meet the current ex-
penses Of the State, in the interim be-
tween the periods fixed for the payment
OF taxes, thus creating floating dobt
constantly in advance OF the revenue.
do not mean to censure the Treasurer for
this course, as he doubtless thsuRht il
warranted by the exigencies Of the Trea.
sury; but the practice is bad one, and
would recommend that il should be
prohibited by proper legislation, which
should at the same time provide that
hereafter no money shall be borrowed
or debt contraeetd to defray the cur.
rent expenses of the State Government.
but let all those to whom money is due
from the State await the collection of
the taxes. This course. coupled with o
system of rigid entrenchment, will soon
lift the State above all present financial
embarrassments, and prevent their re-.
ourrence in the future.
For detailed statement of the trans.
actions of the Financial Agent. I refer
you to his report to the Oomntrolier-
General, for the quarter ending Septem-
ber 80. 1871.
EXPENDITURES OF STATE GOVERNMENT.
While holding the political opponents
of the State Government responsible for
the great depreciation in the market
value of our securities-a Depreciation
directly due to their conspiracy against
the credit of the State-I am bound by
my sense OF public duty to expose to the
reeprobation of the the people the impro-
vident expenditures incurred by the
General Assembly, and the extravagant
and improper disbursement of the State
moneys, to which the Legislative depart.
ment has given either its express or i'm
Piled sanction. In 30 doing. I do not
wish to be considered as wanting in
due and proper respect to CO. ordinate
branch OF the State Government, but I
desire to appeal, in plain and earnest
language, to the sober judgment, the de.
cent self-respect and the public spirit of
each member Of the General Assembly,
to give his active aid in affankinr, an In.