The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1872-08-09

| ''"'"6 o"hiCiout conversion bonds to
cover not only oil other bonds and stocks
tnat had ever been issued, but also the
| ''sterling loan bonds," and then simpIv
place them in the Treasury. mud report
that they had been converted bv the
holders.
Tho conversion bonds could then be
hypothecated for loans by the Financiul
Bonrd, independently Of the Sterling
Fund Board, ns they (the Financinl
Board) cluimed that they had right to
do, under the lien permitting them to
| hypothecate any bonds in the Treasury,
or Ill the hands of the Financial Agent,
| where these bonds were, and the moneys
thus obtained used to pay off all debts
hitherto authorized by law Aud thus,
instead of the sterling loan bonds being
sold III London ut u higher prioo than
they could bring in New York, and the
proceeds of the snle applied to the pur-
chase OF our other bonds here, ihev
would have been simply exchanged for
conversion bonds, which conversion
bonds would have been hypothccated
Tor loans, and then forfeited and sold,
| and the moneys thus obtained applied to
| tho payment of all debts hitherto autho.
rized by law; and they (the sterling loan
bonds) would thus have been an addi-
ton to an alleged debt of between
S15. 600. 600 aud SIG. .OOO,OOO
1t perhaps would not be amiss here to
state that the Treasurer, or Financial
Board, who had pos session of the ster-
ling loan bonds, amounting to Sc, GOO, :
o00, meant to hypothecate these bonds
even as late AS last March, without the
knowledge of the Sterling Fund Board,
us such, for loans, aud was only prevent
ed from so doing by the timely repeal of
the Act and cancellation of the bonds by
authority of the Legislature.
From November, 1870, to this period,
(August, 1871 sealed, under the ad-
vice given by the Attorney General, suf-
ticient conversion bonds for converting
the one million of seven per cent. relief
OF the Treasury bonds, and 500, 900 of
the Land Commission bonds, as the Trea-
surer positively informed me that he de-
sired them for this purpose only.
L was coolly informed by the Trea-
surer, last September, that these same
'rclief of the Treasury bonds" and
"LRnd Commission bonds" for which T
had sealed conversion bonds for the pur-
pose of exchange, and which were so
exchanged, had neper been cancelled, but
had been re issued from the Treasury,
and are now either hypothecated for
loans or forfeited 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 hypothecated, and
would certainly be sold at sncritice if
more collaterals were not put up to save
them. 1 at first refused to do so, remind
ing the Treasurer that the same reason
was alleged several times before. and that
l did not feel satisfied OF the correctness
OF his statement. He then requested
me to accompany him and the Governor
to New York, and satisfy myself, by con.
ferring with the Financial Agent, of the
necessity that existed for the sealing of
these bonds. for the purpose of prevent
ing sacrifice Of those hypothecated.
The treasurer requested me to take my
seal along with me, so that no 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 necessity
of so doing. The Attorney General as
sured me 1t was perfectly legal, and the
Governor, that it was necessary. took
the senl with me very reluctantly, be-
lieving I would be in better position to
insist upon knowing the truth of what l
had SO long suspected. The Treasurer
also informed me that the Sterling Fund
Board. of which 1 was member and
Secretary, would meet in New York and
tnkc somo definite action in regard to
the negotiation Of the sterling fund
bonds.
This last statement determined me- to
proceed to New York. 1 went, and
| upon tho representation there made,
scaled $3.50, 900 Of bonds. You may
imagine ny surprise when l saw this
amount of bonds, the sealing o: which
had been performed by mo upon the
urgent representation that they were alb
solutely essential, rs additional collnte-
rails, to prevent the sacrifice of several
millions h'0tlei back 10 The Treasurer by
tho Financial Agent, alter they wore
scaled, ns being Unnecessary Tor that
purpose; and then the Governor inform
ing the Treasurer that he might use
them III any manner he pleascd! soon
| b