The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-08-10

05l.
member and secretary, would meet in New
York aud take some definite action in regard
to the negotiation of the sterling fund bonds.
This last statement determined me to pro-
ceed to New York. went, and, upon the
representation there made, sealed $3.50, 900 of
bonds. You may imagine my surprise when
saw this amount of bonds. the sealing of which
had been performed by me upon the urgent
representation that they were absolutely essen
sacrifice of several millions, handed back to the
treasurer by the financial agent, after they
were sealed, as being unnecessary for that
purpose; and then the Governor informing the
treasurer that he might use them in any maR-
ner he pleased soon afterward informed
the treasurer that would not seal
another bond, unless compelled by the
be required to make an exhibit Of
what mad been done with the con-
version bonds; that considered 9he
hypothecation of conversion bonds BY the
financial board, which strongly suspected, as
positively illegal; that they were simply for
the pupose of exchange, as Indicated In their
title, and the bonds exchanged, cancelled
and filed in the treasury, as vouchers for the
conversion bonds. This was IN OCTOBER, 1911.
I have not sealed single bond since, tnoug1
repeatedly requested TO DO so ootn before anu
after the passage of the validating act, Wnlcn
contains an especial clause requiring me 10
seal for purposes OF conversion oniy, Inereoy
sion bonds. In hypothecating them Tor loans,
was illegal, aud which the validating act was
supposed TO legalize.
The treasurer made an exhibit In November
last, which showed that all my suspicione With
regard to the use being made of the CONVEX
sion bonds were correct. since that exhiolt
have positively refused to seal single bond,
telling the treasurer that had now positive
knowledge from his published report that he
had used more than $6,000,000 of conversion
bonds for purposes OF hypothecation, and
which believe to be forfeited and sold; that
considered this whole amount, which had
been sealed by me under the most positive as
surance that they were being used solely 1or
tine purpose of conversion, 1ntSdpptted.
The treasurer now assures me that he de.
sires conversion bonds for the purpose OF
exchange only, but I have received similar
assurances several times before, and they
have not been verified by subsequent facts;
and have ne authority TO insist upon seeing
the bonds cancelled that are taken In the
treasury In lieu Of The conversion bonds
issued. The treasurer resents this as ques-
tioning his yeracity and integrity.
The treasurer has also Informed me that tl.is
$751;, 600 OF bonds is only the first lnstalment
OF 81, ,700,0 600 that he desires sealed. If this
manGamus, therefor, is granted, | will be
compelled to seal that amount at least, per-
haps an indefinite amount more.
hold that have already sealed sufficient
conversion bonds for all legitimate purposes,
viz In exchange for other bonds. I believe
their hypothecatiou to be Illegal, and that II
the treasurer or financial board hypothecated
them, he or they are personally responsible
for the amount 80 misapplied; and that 1t Is
certainly not my duty TO zeal any more, with
the positive facts In my possession which the
treasurer's report OF last November shows.
It will be seen from that report 10 the Legls-
lature, page 400 Of the reports and resolutions
ls7l-72, that the public bonded debt is stated
as $l585l, 1927 IS. or this amount there are
s7.l9l, ZOO OF conversion bonds. ONLY $l,O34,-
302 IS OF THIS AMOUNT HAVE BEEN USED FOR
THE LEGITIMATE PURPOSES OF The ACT, VIZ
CONVERSION. AS will be seen, by reference to
page All, the enormous balance Of $6,l5l,-
397 rs have been, claim, FRAUDuLENTLY AND
ILLEGALLY USED. l--5
The REALTORS In this application for manda-
mus to compel me 10 seal, who claim to suffer
great pecuniary loss by my refusal to seal, and
who threaten to hold me personally RESPONSE
BILE for damages, should hold the treasurer or
financial board responsible. have already
sealed conversion bonds for the purpose OF
converting the bonds which they now desire
to convert, and which have been certainly
once before converted, End perhaps twoor
three times. ia,! G,t.h u
: If the construction placed upon this act by
the financial board be correct, viz: that they
had right to issue conversion bonds without
exchanging them for the other bonds, as they
have done to the extent OF more than s6,0O0,-
600, and thus Increase the debt Of the Stale
by SO much, the act Ia unconstitutional.
The Constitution (Art. TX, Sec. y requires
three distinct conditions In the passage Of all
laws contracting public debts, viz: First, that
1t be passed by the vote of tWo-thlrds of the
members of each branch of the General As
sembly; second, that these votes be recorded
by yeas and Rays on the journals OF each house
respectively, and, third. that every such law
shall levy tax annually sufficient to pay the
annual interest OF such debt.
1t will be seen, by reference to the journals,
that the act was not passed by the required
two-thrds vote, nor have the yeas and nays
been called and recorded upon the Journals;
and 1t will be seen, by reference to the act
itself, that 1t has no section requiring the an
nual levy of tax sufficient to pay the In
terest. t.,a .HH!
Irepeat,! therefore, that THE ACT Is UNCoN.
sTrTUTloNAL, II the construction placed upon
1t by the financial board Is correct. But hold
that that construction Ia not correct. THE ACT
SIMPLY PROVIDES FOR CONVERSION OR EXCHANGE
OF BONDS, AS IT'S TITLE INDICATES. The fact
that 1t was not passed By the General Assem-
bly In accordance with the constitutional re-
quirements referred 10 above, which they were
very careful 70 observe In the passage Of every
other contracting public debt, proves that
they never meant it toi increase the public
debt.
The act has also internal evidence to show
that 1t cannot bear the construction placed
upon It by the financial board. Section re-
qulres that the treasurer shall receive one dol.
lar fee for al bonds or stocks exchanged, and
fifty cents for every blank used In the transac.
tion, thereby plainly showing that the CONVEX
sion bonds, though signed, counterslgned and
sealed, were regarded as 30 many blanks, until
they were Issued from the treasury, and other
bonds received In their stead, and, of course,
cancelled and lled as vouchers or evidences OF
the conversion bonds Issued in lieu thereof.
I know, from repeated conversation with
the treasurer, thatthe construction now placed
upon the conversion acr' by the financial
board Is an after thought, pure invention. de-
vised to extricats themselves from difficult
and perilous position. rsc
The rumOr has been industrionsly circulated
that / have never kept registry OF any or all
the bonds have sealed. This statement is
not correct. Ihaue kept careful registry of
all the bonds sealed, except the conversion
bonds. have never supposed for moment
that those conversion bonds would have been
rsad for anv other DurDO3e except in eX-