The New York herald., 1872-08-19
SOUTH CAR0LINA'S FIAANCIERS.
Seven Million Dollars Of Illegal or Fraudulent
Bonds Issued by the Carpet-Bag
Government.
The Coming Republican State
Convention.

Carolina, both politically and financially. The car
pet-baggers, native whites and prominent negroes.
who have had control Of the state since 1857 and
brought her to disgrace and bankruptcy, are now
split up into innumerable factions ana chqucr,
every one bitterly antagonstic 10 the rssher.
Whether this chaotic condition Will ressdlt In an
approach to better government, or out render con-
fusion worse confounded. remains to be seen.
Some Of the white citizens hopeful while others
see nothing but further hardships, humiliation and
oppression In store for them.
TRIANdoLAa FIGHT
has been going on between the Governor, Treas
urer Parker and the c0lored Secretary Of State,
Cardozo, in the public press, through which some
astounding financial Developments have been
made. It row seems absolutely certain that the
Financial Board, composed Of r. K Scott, Gov
ernor; Niles G. Parker, State Treasurer, and d. Fl.
Chamberlain, Attorney General all OF whom are
carpet -baggers have put out upon the market
nearly
$1,000, 900 OF ILLEGAL OR FRAUDULENT BONDS
of the State The scheme was erected In this way
In 1870 when the bonded debt OF the State amounted
to about seven and half millions Of dollars, the
General Assembly, through the agency and advice
of the Financial Board, passed ON act providing
for the conversion Of the State securities The osten
sible purpose OF the act was to make the State Sc
curties uniform in character and to this end to have
printed signed and sealed suflcency Of new bonds
under this Conversion act, as 1t is termed and to
exchange them for the old bonds and State stocks
Accordingly some $780, 900 Of the conversion bonds
were prepared, the Governor and State Treasurer
signing them and the Secretary Of State afixing
the great seal Of the State. They then turned
over to the Financial Board for purposes OF ex-
change. For while matters went on smoothly and
properly 600 OF the old bonds and stocks
taken in and an equal amount OF the conversion
bonds issued In lieu thereof but soon the funds in
the Treasury began to run low. The extravaganza
of the General Assembly and the avarcious greed
of the carpetbag olcials had utterly exhausted it.
A heavy pressure for money, therefore, fell upon
the Financial Board and, having other resource,
they commen ced hypothecating the conversion
the financial agent, II. II. Kimpton No doubt
the Board hoped to redeem their obligations by
funds to be realized from the next levy OF taxes,
and thus withdraw the bonds, so that no harm
would come OF their venturesOme and criminal
ters grew from bad to worse. Tney borrowed more
and more money IN New YORK, paying ruinous
USE THE CONVERSION BONDS AS COLLATERALs
Worse @ stIll When this was done they actually took
verted, and which In legal contemplation were
cancelled, and reissued or hypothecated them, and
the the market as debt against the State ny Thus
was that the public debt which was stated by Gov
ernor Scott to the Congressional Ku Klux Commit
tee in the summer OF 1870, to be O00 900, sprang
up in q few weeks afterwards to
WITHIN A FRACTION OF SIXTEEN MILLION DOLLARS;
actually exchaged for outstanding securities do not
constitute valid obligation against the state, nor
have been cancelled, stand upon any better foot
ing. The constitution OF the State prescribes
any act Of ,ss intended to
the votes OF two-thirds Of the members
Of both branches Of the General Assembly, and
upon the journals OF both houses. These require
ments were not observed in the passage Of the
gives the conversion bonds the only validity they
have-for the simple reason that there was
create any new debt, hut simply to change the
form Of the OLD. The conversion bonds accordingly
wy AND FOR as he
with the exception have named are clearly un-
constitutional: The citizens here say that the
NEUTRALITY-SUSPICIOUS. who have innOcently pur-
chased these fraudulent conversion bonds-must
rRooEED AGAINST THE GUILTY FINANCIAL BOARD
inally for getting money under false pretenses.
THE STATE REPUBLICAN NOMINATING CONVENTION
reform among the darkies, and the carpet-baggers,
too, are crying ''stop thief" There is not, how
p The the
are honest and earnest in their clamor
for change and for better men in office, but they
are very scarce OF material in the republican
ranks IN the first place. and, moreover, 1t is gene
rally believed that the moneyed thieves will buy up
oil the delegates, most OF whom poor and ignO-
rant. and thus secure another lease of power to
the ring. Judge Orr, d. T. COrbtn and others OF the
more respectable republicans are making earnest
EFFORTS TO GET BETTER SET OF MEN.
They claim to be backed by Grant, who, they say,
Ia disgusted with Scott and his crew and deter
mined to be rid OF them. The white people, who
are absolutely q unit for the sage OF Chap
paqua, have generally determined to sup.
port for State oflces the best radical
candidates who may be put in the field. They
would willingly support Orr or some such decent
republican for Governor The height of their hope
is to free the State from the clutches Of the thieves
who have plundered her Of millions OF dollars As
to the political character OF the State government,
they manifest but little concern: Moderate hon
esty and economy will satisfy them now. ~.
Noses, Jr., Speaker Of the present House OF Repre-
sentatives, ID. II. Chamberlain, Attorney General
and Member of the Financial Board, and ]. ]. Pat
ters0n, President OF the Blue Ridge Railroad, are
striving for the republican nomination for Cover
nor. The refOrmers will centre upon Orr or Reuben
T0mllns0n. split and q bolt is almost certain
and the most lively times are expected In the Con-
ventiOn.
THE JERSEY CITY POLICE WAR.