The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1871-11-21
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6lmtatly eit+ ~ ss y a. EI IS
.dstad 8, ZOO. COO 90 4 81 r
asserted BY M ~ g. "a
Gov. Scott ~ i q i6<g w
to be now In - 'T8s.
possession OF 4.
Treas'r, un- 4.
issued...:. 100000 oo-lY.5oo. 900 90
Total. So. $3.50. .897, 900 100
This gives a present and eventual GER
tain debt of $l9, ,397, 600, allowing to
Gov. SCOTT tn full benefit Of his state.
ments as to Il non-issue Of any portion
Of the SIT 30 1000, which he admits to
be printed and ready for issue.
But We sarel informed that at least
ga, 600, 0OQ foflthe sterling bonds have
been hypoth coated Such being the
case, it is not possible that they can be
tEedaemad in the present CON dition of the
State finances, They will, Of necessity
be bold to discharge the obligations for
which they are pledged as security. This
will ere long make the, actual liability to
be paid. BY the State $22, 1891, 900, and
leave in, posaassion Of tue present autho-
rites, according TO Gov. Soott's admis.
sion, the sum of ,$14, 1000, 600 securities
printed and ready FOR issue "a bait 80
tempting cRnnoe remsin long in that
status.in such bands. Large portions of
It viii assuredly- be turned to some ac-
count more promotivs Of their interests.
Nov when We reflect that the whole
amount Of the debt OF the State at the
commencement OF Gov. SCOTS admins
tration, including it's eventual certain H.
ability as grarantor OF those railroad
bonds, which it will have to take up at
maturity, was only SIS, 800, 600. and that
this liability to be paid is now at least
VIZ, 897 600, we perceive an increase by
this administration of 81, 49,, 900.
Where has this money gone? Has tie
State derived any benefit from its expen-
diturs? We were prepared to accept
and submit to @ reasonable amount Of
robbery-say 81 l,O00,O 900 or So, 600, 900;
but $l7. .O0O. 900 is really too heavy a load
OF charity for US to carry. These peo-
pie ask too much.
We commend these points to our read
ers. In addition thereto, ws are enabled
TO throw some light upon the question.
The rumor mentioned In telegram to
the Charleston -Neaos, OF Saturday, in
regard to fraudulent issue of con-
version bonds, is confirmed by subse-
quent investigations. The ACT of March
~. 1859, entitled "An Aot to provide for
the conversion Of State securities," was
passed, ostensibly. to allow holders of
stock OF the State to convert: il into
coupon bonds. The second section pro.
vldes that any person holding coupon
bonds. may, in like manner, convert
bonds into stock. The first section was
to meet the wants OF those who wished
security easily transferred from hand
to hand; while the second section was.
on the other hand, meant to meet the
wants of snch as wished security.
which, by being registered, was made
secure from loss by theft or accident.
The Act did not increase the public
debt.
Under this Act, the plunderers at first
had printed So. 5G6, 600 in bonds. Of
course, such of them as were used for
the conversion of stock, are q valid debt.
These can easily be distinguished by
their numbers. In addition to the stock
outstanding at the time Of the passage
OF the Act, some additional stock was
created by the conversion OF bonds, of
small. denominations, into stock, which
was then at once converted from stock
into bonds again, but of large denomi
nations-emall bonds, snch as fifties.
one hundreds, etc., being always at a
discount, as compared with larger
bonds.
OF course, The Legislature intended
that bonds thus acquired by the Trea-
surer should at oncei be cancelled. Up
to October 81, 1870, $40O, 900 of such
bonds are reported. These, it is be-
haveds were C. cHee placed again upon
the market. Not sStiaAed with these
small pickipgs,,it was resolved by the
oonspirators TO issue S., 500, 600 more
bonds. IT was suggested by one OF them
that, TO Continue the numbering up to
SO high q, figure as would include
VI, COG, Geo, wouid attract attention, and
hurt them liz the market The numbers
on the second batch were, therefore.
duplicates Of the first, the only differ.
ence being that blue ink was used in.
stead of red. These bonds were used
as collateral security, and were subse.
quently sold out by the holders. By re-
ferring to Section of Article 8 of the
Constitution, it will be seen that this at
increase OF the debt is uncon-
stitutional and void. That section rehis
as follows:
SRoTIoN z. For the purpose of defray-
ing extraordinary expenditures, the State
may contract public debts; but suoh
debts shall be authorized by law for
some single object. to be distinctly spe-
Gifted therein; and no such law shall
take effect until it shall have been passed
by the vote of two-thirds of the men,
bers of each branch OF the General AS
sembly, to be recorded by yeas and nays
On the journals Of each house respect
ively-and euery suca law shall lsvy a fan
annually. sufficient to pay the interest of
such debt.
The Act OF March 29. 1860, does not
fulfll these provisions OF the Constitu-
tion. The bonds issued under it, over
and above kla amonnt lanifimafal,1 mad