Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1872-08-22

;, gle bond, telling the Treasurer, u.l that ]
had now positive knowledge from his
published report that he had used
I. more than $6,000,00O of conversion
bonds for purposes Of hypothecation
! and which l believe to be- forfeited
and sold ; that considered this whole
amount, which had been sealed by
me under the most positive assurance
that, they we're being used solely for
the purpose of conversion, nsisapplseG.
! The Ire :surer now assures me that
he desires conversion bonds for the
purposes Of exchange only, but have
received similar assurances several
times before, and they have not been
verified by subsequent facts; and I
have no authority to insist upon see-
| ing the bonds cancelled that.ar to-
I ken in the q Treasury in, lieu of the
conversion bonds issued. The Treasu-
rer resents this as questioning his We
racity and integrity. 20
| The Treasurer has also informed
me that this $4,000 of bonds is on
! ly the first installment of $l,700, 900
that he desires sealed. If. this nsaa,-
damus, therefore, is granted, I will
be compelled to seal that amount at
least, dperhapsanindeinite amount
more.
| I hold that I have already sealed
sufficient conversion bonds for all le-
gitimate purposes, viz: in exchange
for other bonds. I believe their hy-
pothecation to be illegal, and that if
the Treasurer Or Financial Board hy-
pothecated them, he or they are per
sonally responsible for the amount so
misapplied and that. it is certainly
not my duty to seal any more, with
the positive facts in my possession
which the Treasurer's report of last
November shows.
1t will be- seen from that report to
the Legislature, page 469 of the re-.
ports and resolutions l97l-72, that
the public bonded debt is stated as
$l5,85l, ,327.35. Of this amount there
are $7,l9l,700 of conversion bonds.
Only $l,054, ,302.35 Of this amount.
have Been used for the legitimate pur-
poses Of the Act, VIZ. conversion. AS
will be seen, by reference to page All,
the enormous balance Of $6, Isl ,397.-
75..l.aYe been, ! claim, fraudulently
and illegally used.
The relators in this application for
naan0amuS to compel me to seal, who
claim to suffer great pecuniary loss
by my refusal to seal, and who threat
en- to hold me personally responsible
for damages, should hold the Treasu-
rer or Financial Board responsible.
I have already sealed conversion bonds
.er the purpose of converting the
bonds which they now desire to con-
vert, and which haye been certainly
once before converted, and perhaps
two or three times
Ii the construction placed upon
this Act by the Financial. Board be
correct, viz: that they had a right to
issue conversion bonds without e1-
changing them for, the other bonds, as
they have done to the extent of more
than S6,0O0,00O, and thus increase
the debt Of the State by so much, the
Act is unconstitutional.
The Constitution. (Art TX, See. ~
requires three distinct conditions in
the passage of all laws contracting
public debts, viz: First, that it be
passed by the vote Of tWo-thirds Of
the members of each branch of the
General Assembly; second, that these
votes be recorded by yeas and nays
on the journals Of EACH House re-
spectively; 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-thirds vote, Nor
have the yeas and nays been called
and recorded upon the journals; and
it will be Seen, by reference to the
Act itself, that it has no section re-
quiring the annual levy Of a tax suf-
ficient to pay the interest,
l repeat, therefore, that the Act is |
uaaoua!i5utiopal, if thc CONSTRUCTIONS
pIacei' upon it by the Financial Boarl
is correct. But I hold that that con
struclion is not correct The Act
simply provides for conversion or ex-
change of bonds, as its title indicates. |
The fact that it wac not passed by |
the General Assembly in accordance |
with the constitutional requirements
referred to above, which they were
very careful te observe In the passage
Of every other contracting public
debt, proves that they never meant
it to increase the public debt
| The Act has also internal evidence i
to show that it cannot bear the ooa-
strpctidh placed upon it by the Fl
nancial Board. Section requires
that tue Treasurer shall receive one
dollar fee for all bonds or stocks ex-
changed. and fifty cents for every
blank used ip,the transaction, there
by plainly showing that the CONVEX
sion bonds, though signed, counter
signed and sealed were regarded as
so rnaay blanks, until they ware is
sued from the Treasury, and other
bonds received in their stead, and, Of
course, Cancelled and filed as vouchers
| or, evidences of the conversion bonds
issued in lieu thereof.
I know, from repeated conversa-
lions with the Treasurer, that the con-
struction now placed upon the Con
version ACT" by the Finapcial Board
is an otter thoMg&5 q pure ihvention,
devised to extricate themselves from
"a difficult and perilous position.
The rumor has been industgiously
circulated thai: | have never kept
registry Of any or all Of the bonds |
have sealed. This statement is not
correct: ! have &set careful regis
Try, &C all The hnnAs scaled axcent