New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-08-19
SOUTH CAROLINA.
THE CARPET-BAG PARTY GOING TO PIECES
THE BOND FRAUDS-sTARTLING DEVELOP
MENIS.

THE CARPET-BAG PARTY GOING TO PIECES
THE BOND FRAUDS-sTARTLING DEVELOP
MENTS.
COLUMBIA, Aug. 18-ThiDgs are badly mixed
and confused in South Carolina, both politically ana
financially. The carpetbaggers, native whites and
prominent negroes, who have had control Of the State
since 1861 and brought her to disgrace and bankruptcy
are now split UP into innumerabe factions and
ciques every bitterly anagonistic TO the other
Whether this chaotic condition will result in an
approach TO better government, or but render con-
fusion COMPOUNDED, remaus to be seem Some OF
the white citizens hopeful while Others see nothing
but further hardsnps humiliation, and oppression IN
store for them. triangular fight has been
going on between the Governor, Treasurer
Parker and the cOlored Secretary OF State,
Cardozo, in the public press, through which some
astounding financial developments have been made III
now seems absolutely certain that the Financial Board
composed OF II. X. Scott Governor; Niles G. Parker
State Treasurer and d. II. Chamberlain, Aorney-Gen-
fs,l all of whom carpetbaggers have put out upon
re market nearly 100000 Of Illegal fraudulent bonds
OF the State The scheme was effected in this way
In 1870 the bonded debt Of the State amounted To
about S75OOOOO, the General Assembly, through the
agency and advice Of the Financial Board passed an act
providing for the conversion OF the State securities
The ostensbe purpose of act make the state
securities uniform in character. and to this end 10 nave
printed, signed and sealed sufciency Of new bohd'
under this Conversion act IL is termed, and 10 e1
change them for the old bonds and State stocks Accord
iney 81 100000 Of the conversion bonds were pro-
pared the Governor and Treasurer signing the m
and the Secretary Of State axng the great seal OF INC
State. They then turned over 10 NC
Financial Board for purposes OF exchange foI
a while matters went on smoothly, and properly
81 10000 OF the old bonds and stocks "eIe
taken and equal amount Of the conversion pon'"
issued lieu thereof but the funds IN the eas
ury began to low The extravaganza OF the GENERA"
Assembly and the avarcious greed OF the carpetpas
officials had utterly exhausted it, heavy pressure Ior
money therefore fell upon the Financial Board ana nav
ing no other resource they commenced hypothecathe
the bonds loans ehectedin
through the financial agent, II. II. Kimpton No DOUBT
the Board hoped 10 redeem heir obligations by iuns 10
be realized from the next levy OF taxes and thus WIN
draw tho bonds that no harm would come 10 tneir
yeuresome and criminal transactions II so, they were
disappointed Matters grew from bad to worse Ihey DOT
rowed more and money IN New ork paying runou'
rates OF discount and still continued 20 the CONVEX
sn bonds os coIaterals until the entire s. 10000 left
were exhausted Worse si, when this was done, they
actually took the 81 Of old bonds which had been
converted ana which In legal contemplation were can
,d and ressued OF hypothetical them, and the whole
concern was finally sold and is upon the market u:
a debt against the State.
Thus IL was that the public debt, which was stated by
Gov Scott TO the Congress Ku Klux Committee IN the
of 1870 to be 100000 sprang up IN few weeks
afterward TO within fraction OF s6,0oOOO; but these
| conversion bonds except the 100000 actually ex
| hanged for outstanding securities, do not con
s,itute n valid obligation against the State no
| can the old bonds which were reissued but shouit
| have been Cancelled stand upon any better foot
ing The constitution OF the State prescibes that any ac
of Assembly intended 10 create debt Against the stt
must receive the votes OF twO-thrds of the menbers
both branches of the General Assembly aud roll Of ia
| Yeas and NHys must be eutered upon tie IouSp@'S