The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-01-11

THURSDAY MORNING. JAN
to the financial management of the State,
cite the following facts, which will be attesteo
by many of the leading bankers OF New York
In the fall OF 1868 Visited New York City fol
the purpose of borrowing money on the credit
of the State on coupon bonds, under the pro.
visions of the acts of August 26. 1868. Ihad
the assistance of Mr.. q. II. KImpton, United
States Senator F. A. Sawyer, and Mr.. George
s. Cameron. I called at several of the most
prominent banking houses to effect the nego.
4 tiatIon of the required loan, and they refused
ties, for those securities had been already
branded with the threat of q speedy repudia-
ton by the political opponents OF the admin.
istration, who have ever since howled the
same cry against the State credit. As
the persons who made this threat con
| we're enabled to impress capitalists abroad
with the false idea of a speedy reaction that
would soon place them again in authority.
AS the capitalists we'll knew that these per-
soDs, when IN power In 1862, did repudiate
their debts due Northern creditors their dis
parently well founded. It soon became EVIL
dent to every man familiar with our financial
standing in New York that. to negotiate the
tloan authorized. the question was not what
we would take for the bonds, but what we
could get for them. After much effort, and
the most judcious management, succeeded
In borrowing money, through Mr.. Cameron,
dollar In currency, the bonds being rated at
seventy five per cent. below their par value,
| or at twenty-five cents on the dollar. This
| loan, however, was only effected at the
e1traVagant rate OF one and half per
cent per month, or eighteen per cent year,
rotn oDiv dpmQndpd nm tho nOgt dnnbtful
| paper, to cover what Is deemed great risk,
| for the money loaned. Subsequent loans were
| effected at higher valuation OF the bonds,
but at rates OF interest varying from fifteen to
twenty per cent In addition to commissions
necessarily to be paid the financial agent. If.
then, three millions two hundred thousand
| ts3, ,2000 000) dollars, In money, have cost the
State nine millions five hundred and fourteen
thousand (9,5l4,000) In bonds, 1t does not,
therefore, follow that the financial board have
crimiuaily conspired against the credit OF the
State, and, still less, that any one member OF
the board can Justly be held up to public exc
Grafton or sIgmatlzed by an accusation OF s'high
crimes and misdemeaDors" for the assumed re-
suits of Its action. Even If the board have e1-
ercIsed their discretion uuwisely IN the man
Eagement of the finances, still 1t was dtscre-
ton vested in them bylaw, and Its exercise,
however unfortunate In results, cannot, IN the
absence of an evil intent, clearly shown be-
subject OF public denuuela!ion..
LAY IT ALL on THE KU.KLUx.
It ia proper that I should add that the arm
ed violence which prevailed In this State for
the past three years has had upon our bonds
the same effect as actual war, Ia lessening
their purchasing value, as money is dearer IN
war than In peace. Ku-KluXism made capl.
talists shrink from touching the bonds of this
State, as man would shrink from touching
presidential body. am dstonished, in looking
over the three and a hatf gears through tohtch
,oe have just passed, that zoe haue been 70 mode.
rate in the expenditure Of money; that, instead
of collecting one million dollars from taxes, 1t
has not been three times that amount, when
we consider that an absolute state OF tndr has
existed In many parts of the State, and that, IN
OF violence and resistance to Its officers were
of daily occurrence. Those who complain OF
low price at which our bonds have sold in the
markets of the country, and that 1t has cost
nine millions of bonds to buy less than three
and half millions OF dollars IN currency, nave
only to examine the testimony being develop
ed before the United Staten Court, now IN ses'
easy solution for every financial evil tnat. mas
afflicted the people.
THE COMMITTEE AGAIN AT FAULT.
But the c0mmltlee aSalu lapae into elloif
when they assert that the s9,6l4, 900 OF bonds
delivered to the financial agent are al held as
a debt against the stab. The exhibit Of the
treasurer. as set forth In my last annual mes.
sage, and which, 10 this particular, has not
iIea IL. correctness questioned even by the
Joint committee, sta.as *bat there had been of
new bonds Issued. to Oct: 81, lezl. $9,5H, 900
Less in hands of financial agent, to
% mission. l.. ........................ 100000
Total. .................. s9,3l4, 900
Yet the Joint vommittee state that the
amount Is sS,5l4,00O, well knowing that the
100000 OF bonds, to the credlbof the sinking
fund commission, cannot be sold or disposed
of by the financial agent. The committee
also unwartantably estimate the SO, ,773, 900,
then In use BY the financial agent as colat.
eral security for loans, as fully and absolutely
nart al the acrual debit Whereas the fact ls,