The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-11-06
New State Bonds.

When the Scott Radical party came into
power, three years ago, their first act was 20
provide the means of raising money for meet
ing the expenses Of the State. Loan alter
loan was authorized, but the new bonds,
instead Of being sold in the market for what
they would bring, were bypothecated by the
Financial Agent as security for moneys which
he obtained. The bold scheme OF making
the interest and principal OF the bonds pay
able in coin was stock-jobbing maDeuvre,
and the new bonds in June, 1870, were
forced above eighty. Then, decline be-
gan. Last May the new bonds ranged from
sixty to sxty-f7e A month ago, they were
quoted at fifty-two. On Thursday they were
sold at thirty.six. On Friday they touched
twenty-eight, but on Saturday they recov-
cred and closed at thirty-seven.
The general cause OF the gradual fall in
prices, which began last year, is the public
want of confidence in the honesty or ability
OF the State officials. 1t is true that debt
statements have, from time to time, been
published, but these have not been accepted
as the whole truth. And, besides, the fnan-
cial affairs OF the State are managed in q
way which is loose and hazardous in the
extreme.
When the Taxpayers; Convention assem-
bled, last May, the fi5a9cfaf Agent of the
State held 81, 500, 900 OF State bonds, which
were pledged as security for $500, 600, which
he had advanced to the State. These bonds
were hypothecated to secure loans. As prices
declined, or as the money market frightened,
the banks called in their loans. The money
was not forthcoming, and block after block
of bonds was pressea upon the market.
Rumors OF fraudulent issues are, naturally
enough, as thick as blackberries; but 30
notoriously preAgate and irresponsible are
the carpet-bag governments OF the South,
that sale OF nearly two million dollars OF
bonds in tfe course OF few months might
be fully sufficient to cause q temporary COL
lapse OF the credit OF this State.
We do not know whether there have been
any over issues OF State bonds, and it is
difficult to say whether the State officials
have, or have not, endeavored to prevent the
terrible decline in the price OF the new
issues. Whatever bonds are sold by Mr..
Kimpton to cover his advances to the State
will be credited to the State at the price
which they bring in the market. The peo-
pie may think themselves lucky if the eight
hundred thousand dollars due Mr.. Kimpton
do not cost the State, in bonds, more than
twice the amount. But the bonds will rise
again. Governor Scott, Treasurer Parker
and Comptroller Neagle are in New York.
They control all the moneys OF the State, and
it would he a profitable transaction to force
the collection OF the taxes Of 1871 this
winter-contrary to the Governors prom
ise-and, upon the faith Of that collection,
run up the new bonds, as has been done be-
fore, to twice their present price. In this
way the Ring may pocket additional millions
on the plea Of maintaining the credit OF the
State. We would urge bona tide owners OF
the State bonds-old or new-to hold on
to their securities in any event. The de-
probation of values may not last long, and
the interest will, doubtless, be regularly
paid.