Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1872-08-22
secretary eardoss On the Scott
- Ring. y, :"
STATE eP South .gARon1NA,i b..
OFFICE OF SECRETARY Of STATE,
~, Y,,,p,. ,,,lo,,r;,uot 1912

iIuS ltIduCloA 'Ood3o VI rShi9 oVtsS'
have seen fit to apply, through Messrs
Morrill,, Bliss & Co., Of New York
for a peremptory n'andaassss to com
pei me to seal more conversion bonds
+ I have silently: and patiently borr'
the blame for sealing bonasj and have
been considered BY some ignoran
and malicious persons responsible fol
their issue and T now deem it ar
act of simple Justice to myself to STATE
to the courb and to the public wha'
part / have taken in these transsc
tions.
think my Litter will plainly show
rot only that I am not responsible fol
the issue of these bonds, but that il
was through my care and positive re.
fusal to seal, that several millions
more, perhaps, have not BEEN added
to the debt Of the State.
I have the honor to be, very re
spectfully, &C., ~
F. L. CARpOzO, =
Secretary of State Of South Carolina
SECRETARY STATES OFFICE,
COLUMBIA, s. c., Aug. 6, 1872.
| Messrs. C. 2. Mellon and /. Z. Cor.
| bin, attorneys and G0unsel1ors a.
Law.
GENTLEMEN; Having been able tc
retain your valuable services to show
cause why a peremptory m,anda'pa's
should not be issued BY his Homo,
Judge S. ". Melton, on Wednesday
next, August 7, to compel me to seal
conversion bonds, | desire to submit
few reasons why 7 think such man
damsas should not be issued.
In November, 1870, begun to sus-
pect that the conversion Bonds that
had been sealed by me were not be-
ing used for the purpose for which
they were intended, viz: in exchange
for any Of the other various nonds
that had been issued, Or certificate
Of stock, which we're t be cancelled
as soon rs exchanged, and kept in the
Treasury. as evidence Of the conver-
sion bonds issued in their stead.
I then elaeayored to learn from
the Treasurer the pur;josas for which
SO many conversion bonds were de
clared to be nee,ied, He replied that
the finances ,o!. Aaa'.;it;.ses were under
the control of Financial Board, con-
sistigg of the Governor, Treasurer
and Attorney General; nd that it
Was not my province Or right to know
their action, except SO far as l could
learn them from the public reports
they might m,k-.t through the Treasu-
rer and Financial agent; and that
he thought it was simply my duty to
seal as many bonds as they required.
then communicated with the At
torneyGenaral, requesting IRON him
q written opinion as TO whether | had
the power to require from the Finan-
cial Board a knowledge Of their trans
actions, before | shonld take the re
sponsibility Of sealing any more bonds.
The Attorney General gave the orin-
ion thet my duty was simply minis.
te,1al; that l had no right to know
the transactions Of the Financial
Board; and that it was my duty to
seal as maay bonds :asthe Treasurer,
instructed by the Financial Board
requested; that the Financial Boarsl
had the absolute and exclusive con-
troll of the issue and sale or hypothe.
cation Of bonds, and the dishurse-
ment of the proceeds of auch sales Or
hypotheoations,
Though I belieye this opinion tobe
according to the letter Of the law, it
did not entirely satisfy me, or con-
vince me, that had no responsibility
in the matter, and I therefore deter!
mined to use my utmost exertions to
learn whether my suspicious, as to
what I deemed to be the miaapplica'
tipn Of conversion bonds, we're cor
rect or not.
During the legislative ses ion OIL
1870-7l, 9. law was enacted to Gre
ate what is known as the asterline
I funded debt" of South Carolina. and
a board of FIVE officers, called the
Sterling Fund Board" was author
lied to manage the negotiation Of
these bonds, which board consisted o1
the Financial Board referred to, viz
the Governor, Attorhey-G General and
Treasurer, with the addition of the
Comptroller General and myself.
then felt in better position to re-
move or confirm my suspicious with
regard to- the use being made of the
conversion bonds, and determined to
use my opportunity to the utmost
/ This loan. as those who are acquaint.
! ed with the law ara aware. WAS .te
| consist of $l.QOQ.Q0Q of.6uads, which
were to betnegotiated in Landon, and
the proceeds Of the sale used in the
purchase of four other bonds at o
lower price in New York, and thu.
proye a great saving to the state.
This was one of the reasons given
to the Legislature to secure the psa:
sage of the bill, 'F III
in ac&faahce with this law, Iseal
ed $3, 100000 of these bonds dlrine
the summer: Of 1871. J'thenp refused
to seal any more Of;tAese, ,bends, az
Inferred frHfa 9 9 coREefsation WITH tht
Vreas5IHIr!er| tthan an s&&ort s&s1 ! would be:
made to execute this Jaw contrary te
what conceived 10 be the true pur.
pose and intent of the law.
The Treasurer informed me thai
they, the Sterling Fundr Board,
had the authority to use the proceeds
of the sale Of thasssbohas TO pay an5
existing public debt of the State,
further learned that the existing pub
lie debt would probably be very large
perhaps The entire amount of tie loan,
100000. This statement aston
iisbed me beyond measure. I imne
! diately inforAed the Treasurer tha
nothing should be done with the ster
ling loan bonds except atIa full Inject