The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1872-08-09

New York, relative to the payment of in
terest on the public debt:
AUGUST 6, 1872.
4Nessrs. Henry Clers C Co., Bankers,
No. 80 Wal street, Nc'o York.
GENTLEMEN: Your letter of the 2lst
June has remained for somo time unnn-
swered, in consequences Of my not being
able until the present moment, to fur
nish you with the desired information.
On account of the many inquiries from
my duty to write you fully on subjects
touching not only the payment of the in
torest, but the bonded debt itself
An appropriation was made ut tho scs.
sion OF the Legislature Of 1901, to
pay the interest on the public debt fall
ing due January, April, Jaly aud October
OF the year 1872. But in consequence
Of no levy Of taxes being made for the
payment Of Legislative expenses of the
last session. which were unusually large,
rs you will perceive by reference to the
enclosed staten elt made by the Stat
Treasurer to Judge Willard, Of tho Su-
preme Court, the money was diverted
from the payment OF interest to meet the
payment Of Legislative expenses, and ex-
penses incidental, thereby leaving the
State Treasurer without funds to meet
the decreased interest or even current
expenses. Therefore, unless IL special
levy Of taxes is made under the law at
thoriznC the issue of bonds, and col
lccted Immediately, as hus been urged
by many who believe it to be for the best
interests OF the State. I an compelled to
state that no interest eau possibly be
paid before January, 1873, us levy nn-
der tho law is now being made which
will he collected between the 10th Of No
vember nnd 10Th Of january next, and
| set apart for that especial purpose.
I have also received nlnny letters com
planning of the cxtravagnnt charge of
one per cent. demanded by the "Com-
mercal Warehouse Company" for the
registration of bonds, stocks, &C., aud L
must concur in the Justice of the com
plants. AS you will perceive by the eu-
closed advertisement of the "Cnrolina
National Bank" of this city-which is
also named aa one Of the places of regis.
are very much less, amounting in the
aggregate to less thun one-tenth of one
per cent, rs they charge only 81 for
each bond or piece of stock. The com
| plants of the requirement of law in this
registration regard as unjust to the Of
fcers of the State.
| The law was not enacted to satisfy the
officers charged with tho duty and ro.
sponsibility OF issuing bonds that there
was no fraudulent issue placed on the
| market, but to give the fullest opportu-
nifty to the holders of bonds to satisfy
themselves that the report of the Trea-
| surer was correct, and also to expose the
malignity with which fulse representa-
| tions were made and published broad
cast throughout the country, placing our
debt at upwards Of $40, 1000. QUO, instead
Of possible debt of less thar SIG, 900, 600.
hope, therefore, that the law will be
strictly complied with in the registration
of every bond that has been placed upon
| the market.
feel it also due to myself to correct
| misrepresentations, that are currently
circulated. that the money derived from
the sale Of bonds and collection of tnxes
had been misapplied by State officials.
1t requires but very brief statement to
convince any man, who is not engaged
in Misrepresentation for political pur-
poses, of the falsity of these charges.
You will see, by reference to the report
of the Financial Agent. Ia copy of
which is forwarded that So. $40, O0O face
value of bonds sold by him between Oc-
tober, 1869. and September 3, 1871, real
lied 81. BOB, 783 3S III cash. which sum
was turned over to the State Treasurer,
leaving the balance of the entire issue OF
nds-amounting to S5,571, ,000-in his
hands. and pledged ns collateral for the
comparatively small sum OF $l,G27,
U75. g.
Now, ii the Legislature had authorized
the levy ana collection by taxes OF this
last sum Of money, it would have placed
beyond possibility of becoming n part
Of tho State debt, Ut l"nst one third e y
OF the entire amount Of bonded debt re-
ported by the Treasurer.
1tnppears to mo that it is scurceiy no.
cessary to say word more in cxpnna-
ton of our increase OF debt. All the
money that has been received for sale or
hypothecation of bonds, with tho cxcep.
ton Of $40. 1000. has been used in pay
ment of debts and interest thereon
against the State, accumulated prior to
Isl July, 1869, up to which time 10
taxes had been collected. Our misior-
tune has been, that sufficient taxes were
not levied in ono year to meet the ex-