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

pothecation, and which I believe to be
forfeited aud sold; that considered this
whole amount, which had been sealed
ny me under the most posiice assurance
that they were being used solely for the
purposes OF conversion, misappiied.
The Treasurer now assures me that lie
desires conversion bonds for the pur.
poses OF exchange only, but I have re-
cclved similar assurances several times
before, and they have not been verified
ny subsequent facts; and I have no au-
thorlty 20 insist upon seeing the bonds
canceied that are taken in the Treasury
IL, IN lle, OF the conversion bonds issued.
Inc treasurer resents this as question
ing his veracity and integrity.
The treasurer has also informed me
snat THIS Slo2,oOO of bonds is only the
hrst lnstallment of 81 ZOO, 900 that he
desires sealed. If this ,uandon,vs
therefore, il granted, I will be compelled
to seal that amount at least, and perhans
an indefinite amount more
hold that have already sealed snfr
Gent conversion bonds for all legitimate
purposes, viz: In exchange for other
ponds. believe their hypothecation to
be Illegal, and that il the Treasurer or
Financial Board hypothecated them, he
OF they arc personally responsible for the
amount SO misapplied; aud that it is GER
talnly not my duty to seal any more,
with the positive facts in my possession
which the Treasurer's report of last No
vember shows.
1t will be seen from that report to the
Legislature, page Ago of tho reports and
resolutions lS71-72, that the pnblio
bonded debt is stated as SIS, 95l 1927. 35.
VI this amount there are S7,19l,7O of
conversion bonds. Only S1,O34, ,3O2. 35
OF this amount have been used for the
legitimate purposes of the Act, viz: con-
version. As will be seen, by reference to
page All. : the enormous balance of
SG. Isl 3o7. rs have been, claim, fraudu-
lcntly aud illegally used.
The REALTORS in this application for
mdnddmaS to compel mo to seal, who
claim to suffer great pecuniary loss by
my refusal to seal. and who threaten to
hold me personally responsible Tor da-
IMAGES, should hold the Treasurer or Fl.
nancial Board responsible. T have al
ready sealed conversion bonds for the
purpose OF converting the bonds which
they now desire to convert, and which
have been certainly once before convert
ed, and perhaps two or three times.
If tue construction placed upon this
AASS ~ thO l. DO6Tu U6 COrreOt.
viz: that they had right to issue con.
version bonds without exchanging them
for the other bonds, as they have done
to the extent of more than Sc, OOO OOO.
anil thus increase the debt of the State
by so much, the Act is unconstitutional.
The Constitution. (Art. TX, SEQ. ~
requires three distinct conditions in the
passage Of all laws contracting public
debts, viz: First. that it be passed by
the vote OF Two thirds of the members OF
each branch of the General Assembly:
second, that these votes he recorded by
yeas and nays on the journals of each
House respectively; and, third, that
every such law shall levy tax annually
sufficient to pay the annual interest of
suoh debt.
lt will be scon, by reference to the
Journals, that the Act was not passed by
the required two-thirds vote, nor have
the yeas and nays been called and re.
corded upon the journals; and it will be
aeen by reference to the Act it,,elf that
1t has no section requiring the annual
levy of tux sufficient to pay the interest.
repeat, therefore. that the ACT is un-
constitutional, if the construction placed
upon it by the Financial Board is COR
rect. But hold that that construction
is not correct The Act simply provides
for conversion or exchange Of bonds, as
lts title indicates. The fact that it was
not passed by the General Assembly in
accordance with the constitutional re-
quirements referred to above, which
they were very careful to observe in the
passage OF every other contracting a
public debt. proves that they never
meant it to increase the public debt.
The Act has also internal evidence
to show that it cannot bear the construc-
ton pnccd upon it by tho Financial
Board. Section requires that the
Treasurer shall receive Que dollar fe. for
all bonds or stocks exchanged, and fifty
cents for every blank used in the transac-
tion. thereby plainly showing that the
conversion bonds, though signed, coun-
tersignt d and sealed. wore regarded az
80 many blanks. until they were issued
from the Treasury, and other bonds re-
c+ived in their stcud, and, of course,
Cancelled aud filed az vouchers or evil
dences OF tho conversion bonds issued
i'll lien thereof.
l know. from repeated conversation
with tho Treasurer. that the constrnc-
ton now placed upon the 'Conyersion