The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1872-08-14
Gov. Scott to Secretary Cardozo.
STATE OF SOUTH CAROLINA,
EXECUTIVE DEPARTMENT.
COLUMBIA, August. 187:

OoLUMBlA, august, 1917.
Hon. +: l.. G"dozo. Secretary Of State
SIR: notice in the PHGNIx, of the
9th instant, your letter to Messrs. Mel.
ton and Corbin. your attorneys, relating
to your responsibility in the sealing of
State bonds.
7 might, with great propriety, pass
This communication by unnoticed, but
| from the fact that it bears upon its fuce
the evil spirit which prompted its publ
cation. and which has led you to nnrrate
several personal conversations you held
with the Treasurer and the ATTORNEY
General, in which you take special pains
to associate the Governor with what
they may have said to yon in relation to
the bonds. showing thereby the animus
that prompts you to make me q party to
what other State off GERS may, from time
to time, have said to you.
No one connected with the State Co
verument knows better than Yourself
how constantly 1 have resisted the very
letter and intent of the law itself, to bor-
row $1,000, 600 in money, under the
several Acts, known Us an "Act to re-
deem the bills receivable-$ $500, OOO;" an
"Act to pay the interest on the public
debt-Sl, 900, ,000;" an "Act for the relief
of the Treasury ,O00,OuO." These
Acts severally provided that that amount
OF money should be borrowed on coupon
bonds, and yet for more than one wear
persisted i'll constrIing the Acts that
there should be only that amount of
bonds issued, viz: 81, 500, 900 in the ag-
gregate. These bonds were prepared
and signed. as provided for in the Acts,
by the Governor, countersigned by the
Treasurer, and sealed by the Secretary
of State. But, as mny we'll be under
stood. it was moral impossibility to
borrow $4,000. 900 in moneys on So. 500. :
600 of State bonds, or even to realize
that amount by the sale OF the same.
Hence it became necessary to issue an
additional amount of bonds, which wns
done with the full knowledge and up-
proval of the Secretary of State, who
showed his alacrity in his concurrence
by thenceforth, in every instance, seal
ing the bonds before the Governor had
even signed them. Indeed, so rendy
were you to comply with the request of
those who differed with me in the
amount of bonds to be issued, that there
was no time up to November. 1871, in
which there was not, at least, 81, uO0, 900
of bonds in the Treasurer's hands, with
ont any other evidence of their having
been executed, save the seal of the State
having been placed thereon; and to-day
there are 100000 of bonds, with the
seal of the State placed upon them, in
the hands of the American Bank Note
Company. of New York. which were re.
turned to them Inst November. to be
Cancelled by my special demand.
1t Is unnecessary to detail the provi.
sions of the law authorizing the issue of
the sterling lonr, as any one can examine
1t. The Commissioners who were
charged with the duty of placing that
loan on the market-consisting Of the
Governor, Secretary of State, Attorney
General, Treasurer and Comptroller
General-held but one meeting, and that
was in the Office of the Secretary of
State; soon after the Ta1-Payers' Con-
vention in May, 1871, when the Attor-
ney-General WAS elected Chairman, and
the Secretary of State Secretary of the
Board: AT that meeting, q motion was
made by ME to indefinitely postpone any
action rs to the negotiation of these
bonds, and from that time till the present
moment the queation has never been
brought before the board either directly
or indirectly. Nor has there ever been
any intention, to the best of nv know.
ASo5O aANA OSsAOas oh bao phIt Ol uuy OL
the members of that board to negotiate
any portion of the sterling loan. The
only evidence to the contrary of this as
sertion is the fact that during the sum-
mer of 1871, $4,000. 600 of these bonds
we're sent from New York to the Secre
tary of State, las I was informed, subse-
quently, by Mr. E. F. Gary, the present
State Auditory who took them to his
own home, at night. end caused the seal
of State to be placed upon them, and
then Immediately returned them to New
York. This action appeared the more
suspicious to me, when it came to my
knowledge, from the fact that my name
was not upon tho bonds; and yet, with
an industry that was unaccountablo, you
placed them beyond my control, know
ing, as [ assume you did, that had pro-
posed to the American Bank Note Com
pany to hive my name printed upon this
issue, if it had ever been determined to
negotiate the loan, thereby saving my
self the unnecessary labor of signing
my name u, 600 times.
Now, sir, you state that you had suspi-
cions that everything was not right re.
gnrding the issue of conversion bonds.
Will Won axnlain m fba puLl;o ,rbok