The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-11-14

| The foregoing figures account for the In.
crease Of the State debt as follows:
Past due Interest October, 1861. 1000
| Past due Interest to July, ls6s........ 3o00 900
| Bills receivable converted. .............. eooo0O
Bank notes converted. l'zoS'ooO
Total debt. .4s,ooo,Ioo
In the statements submitted to us, from
| which we have collated the foregoing particu-
lars. we see two other Items added 70 nose
we iaye given. The aggregates, however,
are not stated, and We are assured that they
will not exceed three and half millions,
making the aggregate debt OF the State about
twelve millions. This is the amount at which
we are informed 1t will be stated in the forth
coming report.
lows: Last year an act eff the Legislature was
passed authorizing the Governor to raise
s., ,000, 900 in cash for the payment Of Interest
past due. The amount of bonds tods not trsd,
but merely the aggregate of cash 70 oe raised.
The same po,per ,oGS given in q oln passed IN
1869 Jor tie 'relief Of the treasury" the sum OF
money to be raised under this act oeang dtSo
f1ed at 81, ,000, 900 in cash.
On these acts of the Legislature Two dis
putes, we believe, have arisen-one as to the
extent OF the powers they convey, the otner
as to the honesty with which these powers
have been exercised. The opposition claim
especially that the laws fairly Interpreted au-
thorize the issue of no more than two millions
of bonds, and that the Governor by issuing
three or four millions has exceeded his au-
thority, and has made an over-issue. AS these
bonds are In large part In the hands of the
New York agent, the virulence Is accounted
for the threat of reputation, which, to the
surprise OF some of our financial people here,
has been urged By the Charleston papers and oy
other leaders OF public opinion In South Caro-
| intpnn40
rather to bring their refractory New York
agent to terms, as they wish to replace him.
By others the embroglio is too much relished
for its own sake, and offers too good an oppor-
tunlty to be lost, too favorable means 1or
iurthering private interests or gripping tneir AI
will dishonor herself and bring discredit on
the whole nation by repudiating any Of her
lawfully issued securities is not generally be-
lieved. The question as to whether the
twelve millions of State securities are all law
fully issued Is one, the evidence of which must
be very fully given In the forthcoming re,
port, that the public mind may be satisfied
without delay.
The explanation has been given that the
conversion of old bonds into new ones has Tor
various reasons been very large, and that IN
South Carolina the law does not authorize
bonds to be converted directly into other
bonds, but requires that they should first be
converted into stock. Consequently $40, 900
In bonds OF $50 each would require no less than
400 new blanks to convert them into new
bonds of similar denominations. If this cum
bersome and roundabout method be sane
toned by law, and offer the explanation re-
ouired, it is only fair to the public that the
facts should be officially stated, and that the
existence of sufficient safeguards to prevent
spurious or excessive Issues should also be
established on adequate authority.