Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1872-08-22

Treasury bonds" and "Land Commission
bonds" for which I had sealed conversion
bonds for the purpose of exchange, and which
were so exchanged, had never been cancelled,
but had been re-issled from the Treasury, and
are now either hypothecated for loans or for.
.teited and sold.
The Governor also informed me that these
were facts within his own certain knowledge,
especially with regard to the "relief of the
Treasury bonds"
During the month of October, 1871, the
Treasurer requested me to seal a small amount
of bonds, for the express purpose, as he said,
of saving loan of between three and four
millions of bonds, which had been hypotheca-
ted, and would certainly be sold at sacrifice,
if more collaterals were not put up to save
them. at first refused to do 80, reminding
the Treasurer that the same reason was al
legged several times before, and that did not
feel satisfied Of the correctness of mis- statement
He then requested me to accompany him and
the Governor to New York, and satisfy my
self, by comforting. with the Financial Agent,
of the necessity that existed for the sealing of
these bonds, for the purpose Of preventing
sacrifice Of those hypothecated. The Treas
urer requested me to take my seal along with
me, so thatno time be lost. l had previously
consulted with the Attorney-General on the
lawfulness Of taking my seal to New York,
and the Governor on the propriety and neces-
sity of so doing. The Acknowledgement as
sured me it was perfectly legal, and the Gov
ernor, that it was necessary. [ took on the
seal with me very reluctantly, believing I
would be in better position to insist upon
knowing the truth Of what had 80 long sus-
pected. The Treasurer also informed me that
the Sterling Fund Board, of which I was a
member and Secretary, would meet in New
York and 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 rep
resentation there made, sealed $250,0OO of
bonds. You may imagine my surprise when
I saw this amount of bonds, the sealing of
which had been performed by me upon the
urgent representation that they were absolute
ly essential, as additional collaterals, to pre-
vent the sacrifice of several millions, handed
back to the Treasurer by the Financial Agent,
after they we're sealed, as being unnecessary
tor that purpose; and then the Governor in
forming the Treasurer that he might use them
in any manner he pleased I soon afterward
informed the Treasurer that I would not seal
another bond, unless compelled by the courts
of the State, where he would be required to
make an exhibit of what had been done with
the conversion bonds; that considered the
hypothecation of conversion bonds by the Fl
nancial Board, which strongly suspected, as
positively illegal that they were simply for
the purpose Of exchange, as indicated in their
title, and the bonds exchanged, cancelled and
filed in the Treasury, as vouchers for the con-
version bonds. This was in October, 1871.
I have not sealed single bond since, though
repeatedly requested to do so both before and
after the passage of the Validating Act, which
contains an especial clause requiring me to
seal for purposes of conversion only, thereby
implying that the previous use of the CONVEX
sion bonds, in hypothecating them for loans,
was illegal, and which the Validating Act
was supposed to legalize.
The Treasurer made an exhibit in Novem-
ber last, which showed that all my suspicious
with regard to the use being made of the con-
version bonds were correct. Since that ex-
hibit have positively refused to seal single
bond, telling the Treasurer that had now
positive knowledge from his published report
than he had used more than $6,0O0000 Of
conversion bonds for purposes Of hypotheca.
tion, and which believe to be forfeited and
sold that considered this whole amount,
which had been sealed by me under the most
positive assurance that they were being used
solely for the purposes of conversion, misap-
piled.
The Treasurer now assures me that ne de-
sires conversion bonds for the purposes of ex
change only, but have received similar as
surances several times before, and they have
not been verified by subsequent facts; and l
have no 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 questioning his We
racity and integrity.
The Treasurer has also informed me that
this $4,000 of bonds is only the first install.
ment of 81, 100000 that he desires sealed. II
this mandan.us, therefore, is granted, 1 will
be compelled to seal that amount at least, and
perhaps an indefinite amount more.
I hold that have already sealed sufficient
conversion bonds for all legitimate purposes,
viz: in exchange for other bonds. believe
their hypothecation to be illegal, and that if
the Treasurer or Financial Board hypotheca-
ted them, he or they are personally RESPONSE
BILE 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 oflast November shows.
1t will be seen from that report to the Leg
islature, page 469 Of the reports and resolu-
tions 1912, that the public bonded debt is
stated as $15,851, ,327.35. Of this amount
there are $7,191,700 of conversion bonds.
Only 81, ,O34, ,4O235 of this amount have been
used for the legitimate purposes of the Act,
viz: conversion. AS will be seen, by refer
ence to page All, the enormous balance Of
$6,151 ,39775 have been, I claim, fraudulent
ly and illegally used.
The REALTORS in this application for manda-
mus to compel me to 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 al
ready sealed conversion bonds for the pur-
pose of converting the bonds which they now
desire to convert, and which have been GER
tainly once before converted, and perhaps two
or three times.
Ifthe 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 $6 ,0OO,-
900, and thus increase the debt of the State
by so much, the Act is unconstitutional:
The Constitution, Cart. TX, Sec. ~ re-
quires three distinct conditions in the passage
ofall laws contracting public debts, viz: first,