The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1872-08-09
SECRETARY STATES Orr1cr

oEChETAR6 OTATE $ OFFICE,
| COLUMBIA. s. c., August &, 1872
Mess''s. G. u. Melton ond d. Z. Corhin,
Attorneys and C0unseNors at Lao.
| GENTLEMEN: Having been able to re-
tain your valuable services to show cause
why u peremptory mnntlamus should not
be issued by Ills Honor Judge s. w.
Melton, on Wednesday, next, August z.
to compel me to seal conversion bonds,
desire 10 submit few reasons WHY [
think such monthimuS shonid not be
| issued.
In November, 1870, I begun to sus-
| pect that the conversion bonds that had
been sealed by me- were not beiug used
| Tor the purpose for which they were in
tended, viz: in exchange for any of the
other various bonds that had been is-
sued, or certificates of stock, which
were to be cancelled rs soon as ex-
changed, aud kept in the Treasury, ~
| evidence of the conversion bonds issued
in their stead.
then endeavored to learn from the
treasurer the purposes for which so
many conversion bonds were declared to
be needed. He replied that the finances
OF the State were under the control of u
Financial Board, consisting of the Go
vernon. Treasurer and Attorney General:
and that it was not my province or right
to know their action, except so far as
could learn them from the public reports
they might make through the Treasurer
and Financial Agent; and that he
thought it was simply my duty to seal ns
many bonds as they required.
then communicated with the Attor.
ney- General. requesting from him q
written opinion as to whether had the
power to require from the Financial
Board knowledge of their transactions,
before should take the responsibility of
sealing any more bonds. The Attorney
General gave the opinion that my duty
ws' simply a. inisterial;; that 1 had no
right to know the transactions of the
Financial y rd; and that it was my duty
to seal e" ANY bonds M the Treasurer,
H. by the Financial Board, re-
-e>.ed; that the Financial Board had
the ABSOLUTE and exclusive control of the
issue and sale or hypothecation of bonds,
and the disbursement of the proceeds of
such sales or hypothecations
Though 1 believe this opinion to be
according to the letter Of the law, it did
not entirely satisfy me, or convince me,
that L had no responsibility in the mat
ter, and 1 therefore determined to use
| my suspicious, rs to what [ deemed to
be the misapplication of conversion
bonds, were correct or not.
During the legislative session of 1870
II, law was enacted to create what is
known rs the 'sterling funded debt" of
South Carolina, aud bourd of five
officers, called the STERLING Fund
Board, was authorized to manage the
negotiation Of these bonds, which board
consisted of the Financial Board refer
red to, viz: the Governor, Attorney.
General and Treasurer, with the addition
of the Comptroller-Genera and myself
l then felt In q better position to remove
or confirm my suspicious with regard TO
the use being made of the conversion
bonds, and determined to use my oppor-
tunlty to the utmost This loan, rs
those who are acquainted with tho law
are aware, was to consist of Sc, 600, 600
OF bouds, which were to be negotiated in
London. and the proceeds OF the sale
USED III the purchase Of tonr other bonds
ut lower price in Now York, and thus
prove great saving to the State.
This was one Of the reasons given to
the Legislature to secure the passage of
the bill.
In accordance with this law, sealed
So. 100000 of these bonds during the
summer of 1871. then refused to seal
any moro of these bonds, as I inferred
from conversation with the Treasurer
that an effort eyould be made to execute
this law contrary to what I conceived to
be the true purpose and intent Of the
law.
The Treasurer informed me that tbey.
the Sterling Fnnd Board" had the au
thority to nse the proceeds of the sale of
these bonds to pay any existing public
diebt Of Tie State. l further learned that
the exia'iug public debt would probably
be pery huge. perhaps the entire amount n
tie loan! $6,0O0,0U0. This statement
aatonishod me beyond measure. i'm
mesiiateIy informed the Treasurer that
nothing should be done with the sterling
loan bon1s except at full meeting
called by the President of the Board
through me, the Secretary. was de-
termined to prevent, If possible, what I
conceived to be diversion of the bonds
to purpose entirely different from what
was intended by the law.
On inquiry from the Treasurer, by
what method it was intended to apply