The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-11-08
4HUGE SENSATION.
The Worlds History Of the State Finan-
cial Agency-Printing the Bonds by
WholesaIe--Kimpton Commissions
and Charges-Is the State Insolvent

In the New York World, of Sunday, we.
find the following history of the operations of
the South Carolina Financial Agency In New
York, and of the reported fraudulent issue of
State bonds
For several days past the most startling I'll.
mors have been afoat In financial circles. and
rejecting seriously upon the credit o. t1e State
immense over-issue had been made by Mr..
KImpton, the State financial agent. This was
onIckly followed BY an announcement that
every member OF the State government, from
the Governor down, had arrived In the city.
These statements and facts had such power
full effect on the market that the bonds OF the
state auctuated as violently as ever did gold
during the uncertain days Of the war, the ten.
dency, however, being to weaken the value of
the bonds, Even after q most strict and thor
ough Investigation, 1t seems almost impossible
to give really connected statement OF the &C
tua condition Of affairs, but certainly the wild.
est reports yet promulgated do not exceed
what Is apparently true, to Judge from all that
can be learned from most trustworthy sources.
srAkTLING STATEMENTS.
AS facts about which there is no question 1t
NAV first be stated that the American Bank
Note Company, of this city, have printed bonds
of the State Of South Carolina to the amount
of 800. .O46 900, which have been passed Into the
possession of Mr.. Kimpton; that Tor some pur-
pose the several members OF the state GOV
ernment are In the city, and that other gentle
men of wealth, to whom the credit ofthe state
ia a vital question, are here watching their
proceedings. It is said that Governor Scott on
being questioned In relation to the printing OF
this great amount of bonds admitted that they
had been printed, but denied that all had
been issued, although he was unable or
unwilling to say what tne amount Oh th tne
oyerlssue here step in with the question.
HWhat was the object Of printing these bonds
If It was not the Intention to use them, and II
there ia no iuformaty why let the credit OF
the State be hazarded by Withholding the
facts ?" There was only one way In which
the bonds could have been legally Issued, and
that was under cover OF an act autnorizlng
bonds Of the State, but 1t Is said that no part OF
the money yet raised has been used tor any
such purpose, and that the debt which the
Taxpayers Convention of May last discovered
to be about sl2, 900 900, was 80 teartully In
creased that the State was
ABSOLUTELY INsoLvEET,
or rather would be If 1t should assume the re-
sponslbiIty of paying the debt which has been
heaped upon 1t. However, 1t Is highly I'M
probable that the taxpayers ever Will consent
TO saddle themselves with such responsi6ili-
ty. as they have already expressed determi-
nation not to assume any Indebtedness Of over
eIgh. million dollars. Taken In connection
with the present retIcence OF the South Caro-.
ling government officials, the following Incl
dent casts suspicion upon their integity: Dur
ing the session mentioned above OF the Tax
payers' Convention q request was made to MIR.
Parker, State treasurer, for permission 10 e4-
anime the accounts Of his department, TO
which he consented with much show OF earn
estness, but when the committee, to whom
had been delegated the duty OF investigation,
called upon him after the adjournment OF the
convention, he positively refused to let them
see q single book.
STRATEGIC RRTICENCE.
It is admitted that up to the present time 1t
has been impossible to point conclusively to
any delInouencies, as about the same strategy
is resorted to as that adopted by the robbers
of this CITY to conceal their malfeasance In Of
fce. This Parker, who is q Northern man or
carpet-bagger, went to the State OF South Car
olina about three years ago poor man, and
during that time, on salary OF $350O per an.
mum, has accumulated about $l,000.000, and
so with all the other members OF the State
government-fro poor men they have risen
| to great wealth.
HEAVY CLAIMS.
Mr.. Kimpton, the financial agent, 1t is as
serted, bring claims against the State for COM
missions and services to the amount Of some
50, ,00O, 900, and 80 closely In league with him
are the other officers, that they have not dared
| to resist payment of his claim, although much
of 1t has been proved to be for renewals OF
/ credit which have been made time and again,
and for each of which transactions he has
charged commissions of various kinds,
amounting In the aggregate to about fifteen
| per cent, Just the same as though they had
| been new loans or transactions. So In time
| he has In repeated commissions swallowed up
more money than the original loans amount
ed to.
POSSIBLE FAVORABLE FEATURE.
One feature alone seems favorable to the
State credit 1t Is asserted most positively,
while admitting that Kimpton has made this
frighttul over-lssue of bonds, that his opera
tions have been carried on, not In the capacity
OF financial agent of the State, but on his own
personal account thus involving only his OWL
personal credit. If this be true, then the en-.
tire over-issue could be repudlated without
discredt to the State. Again, 1t Is charged
that all the money the State has ever received
from Kimpton tor loans made by authority has
been about twenty-seven per cent. of the
gross amount, the remainder having been re.
tained by him as commissions, and that Of
what 1t did receive the State has had the bene.
ft of very little, as most of 1t had been spent
for all manner OF useless and even prohigate
purposes.
KEEPING THINGS DARK.
1t Is further said that the members OF the
government have used all manner OF devices
to prevent facts from becoming known In thi
city that might raise suspicious as to the 1nan
cial integrity OF the State, and thus make tht
bondalmarketable. For Instance, the interes