The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1872-06-29
The Registration of State Bonds

The New York Journal OF Commerce, i'll
its review Of the money market on 'u''''
last, says: ott. ron-
uwa have at hand tho complaint OF "A COD
poodor, touching the case OF the Sonlh
c,rol,na bonds As far as we can ascertain'
.ho Legislature. believing that spurious oonds
had been issued and were In the market,
passed an oct limiting the recognition Of the
State to such bonds as should be registered
at the office of the Commercial Warehouse
Company in this city. So lar the action OF tne'
State may have been very proper; but the
law not only failed TO make any provision lot
the payment to this company of the expenses
of such legislation, but, If we understand the
case rightly, expressly stipulated that such
registration should be entirely q. the expense
of the public creditors, and should cost the
State nothing. An agreement was arranged
between the committee Of the Stock Ex-
change and the Commercial Warehoyss
pany TO cai:y this reglstratto" enec',
each boudholder being L-"lo paS n!' 'n",o VI
the cost, which" oupp''e" '
ahon, ons,qGarter OF cue per cent. Alter this
cement had been signed the Commercial
Warehouse Company expressed some mis-
clvings In relation to it, lest 1t should involve
that institution in some pecunary liability II
auy spurious bonds were registered, and
modification OF the agreementWas requested.
According 10 the representations OF Inc
officers or the company, the Stock Exchange
declined to vary The terms Of the agreement,
and they accordingly put the rate up TO one
per cent. on the par value of the bonds, which
thew charge every bondholder who presents
his voucher for registration We regard thls
as an exhorbitant charge, and tho plea for it
as wholly unsatisfactory to the public
The law referred TO (Act OF March IL,
1872 does not make any provision for the
expense of registering the bonds, but it does,
not provide, expressly or by implication,
that the registration shall be at the expense
Of the public creditors. The law declares
the Commercial Warehouse Company, in the
CITY of New York, and the Carolina National
Bank, in the City OF Columbia, South Caro-
lima, ssto be authorized places for the regis
"terng Of the bonds, coupons or stocks" OF
the State, and "they are authorized
&c. to Immediately advertise to
sqhe holders OF all the bonds, coupons or
"stock OF the State Of South Carolina the
"necessity Of registering their bonds, cou-
spons or stocks at one OF the above author
.ized places of registry" The low also
sets forth the way in which the registration
shall be conducted, and makes it "the duty"
OF the Warehouse Company and OF the Caro-
lima National Bank to publish Quarterly
statements" OF the amount Of bonds, cou-
pons or stocks registered by thel,. In view
of these provisions, it is clear to our mind
that the expense OF registration was intended
to be borne by the State, which for its own
convenience and for its own safety, as much
as for the protection OF the public, desig-
mated the places OF registration, and requires
that no interest shall be paid on any bonds
or stocks until so registered. There is no
justification whatever for the charge which
the Warehouse Company have seen tit. to
10