The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1873-10-22

| INSTRUMENTATION peritAl, aud tile interest
nccrtiny from August. 1868. 10 July, 1869. u
period OF eleven months, is cl,argcablc tu tho
post.reconstructioh period or, in other
worda, 1924 Of tho entire debt nr 81 ,45O. QUO
amounting to $7s5.4 & 6Gs. ~ chnrgcunle to
the former period. and ll.24, amounting to
$664. .33t, is cllargcnblc TO the latter ne.
! riotl.
| 1t may bo proper to statc, in connection
with this subject. that tho Legislature at it's
session OF lS6S-'69, appropriated $500 600
| Tor the payment of tho interest due for this
sarie period. 30 TINT there were renlly two
sources OF income to mcot this indebtedness
In comparing the amount nf moneys received
from taxes, with the moneys expended on nc
count of appropriations for this same porod
| It appears that tho expenditures, exclusive of
| tho payments for interest, exceeded tho re-
ceipts from taxes. and therefore, il is assumed
that tho interest was pnd from Tn" remaining
source OF revenue. viz the proceeds from tho
sale Of these bonds
! Undcr the act or September IL, 1868, for
| iundlnR the bills Of the Bank Of tho Stnte tho
American Bank Note Company printed s ,5U0,-
| 900. or this sum $l,259,00 wcro issued, tho
Others were cancelled unused. vi tho amount
| issued $69. were converted and 81, | 80 COO
are outstanding in their original form Tho
| bombs prepared under the net of February II.
1869, Tor the relief OF the treasury, amounted
TO 81 100000, Of which Sl0l 900 were never
issued, and cancelled and filed in the
treasury; $4,000 of the remainder have been
| exchanged for conversion bonds and $3.50 900
arc now outstanding in their original form
| The stock originally issued under the act Of
| March %, 1869, for tho conversion OF State
securities, amounted to $775,7 100; OF which
| LOO have boen converted into convcr-
| sion bonds. SO, 600 represent stock transferred
and SG4, 900 are outstanding in tho original
| form.
The issue Of tho conversion stock is OK.
planned i'll this way: when application was
made to the treasurer by a person holding II
thissd OF the State to have the same ex.
changed for a conversion bond, the treasu-
rer took up such bond and issued in lien II
piece OF conversion stock Of equal amount
which stock was thon cancelled and exchanged
| for a conversion bond. This roundabout pro.
cess was prescribed by the act for the conver-
sion ol State securities. Scvernl persons pre-
| ierred to hold the conversion stock, md there.
fore, did not carry the operation further.
which accounts for the outstanding imance OF
| S64 900 before referred to- or course this
| amount does not represent MI iacreusc of the
public debt, but merely ,epresonls in another
form some .prc.e listing obligation.
| Tho entire amount Of bonds issued under
the Raid uct for the conversion Of State secur.
| tiles MAS 81 ,5IG,5 500. OF lha sum XlSll-
| 500 were Issued merely to change the form of
some pre-exnt:hg outstanding indebtedness
i'll the form Of bonds aud stocks previously
authorized, and hence do not represent nm
imc'ea'e Of the p;iblic debt
The S34, 900 OF conversion bonds converted
| and cancelled aro thus explained.
person holding $1,000 Of bonds Of differ
eht c!asaes tsny funding interest, otc., S3OU OF
! the dcnomiuation Of s. 90; funding bills Bank
Of The State, $500 Of the denomination of $50
nnd conversion, 5000 Of the denomination OF
$l0O,) would present them to the trensurcr
and receive III exchange piece of cnnvcr.
sion stock of the denomination OF Sl OoO
and in exchange for said stock conversion
bond of tqmal amount. Thus, SaI 900 of
conversion bonds found their way back into
the treasury. and bonds o! tho anme cl,,as
but larger denomination, found their way into
Tho market without increasing tho volume of
debt.
repent therefore, that there arc ,,0tu ont
stanii,g 5 l,57I,5 ,5nU OF conversion bonds is
sued i'll strict accortinnce with law. which are
merely tho representatives uf bonds aud
stocks of various clnpscs, nnd in the upyrc.
gate OF equal amount cancelled aud flied in
the treasury. This statement is bnsed upon
my personal examination Of said cancelled
bonds and stocks, and may be relied upon as
accurate in every particular
| There are nlso outstanding conversion bonds
TO tho amount OF $685. 1000, which repro.
sent an actual inrrease of Tie public debt
II has been alleged that these bonds wcro
hypothecased Tor security OF loans, by order
or the Financial Board, and tho moneys re.
| coived thcrefrom used to cover the deficit of
revenue from taxation, or to bridge the
eha"m between the receipts and appropri-
| allons. md the State being unable to redeem
| the bonds al the maturity Of the loans they
were forfeited and sold. and thus, by the
| amount represented upon their fnce, increased
tho public debt.
Will not venture TO assert that these allie
atoms are entirely at variance with the facts.
because have hccn unable to get access to
tho records OF the Financial Board or 10 nsccr.
tain tho e1act time cacl, particular loan wns
| negotiated. and The amount thereof rs also
| the amount Of bonds forfeited Tor rncl, loan
the State failed To discharge at maturity But
tins | assert with certainty. that more than
] onc.Sevcul Of said amount is accounted for
| i'll another way.
II appears. that on tie Ttl Of December.
1870, the then treasurer Of the State, in
letter addressed 10 tho financial agent. Ga
| copy "f which is OF record in the trcasury.)
stated that the Stte owed debt of S3O:i,.
.'43.S3. duo i'll 1870, known as Fire Loan
Stock, and nlSo debt Of $3.50, 00O, due in 1871
known ns Stale Capital Bonds, which debts
Tie financial bonrd had instructed him, the
treasurer, 70 discharge. will, authority to
make wilatcvcr arrangements might bc rleccx.
sary therefor ilo accordingly placed in said
agents possession bonds for the conversion
OF State securities. amounting to $500, 900,
directing HIM to mnke such use of said bonds
as he might deem necessary TO redeem said
obligations.
The sequel Of this arrangement shows that
S2l2.0O0 Of State capital bonds have been
redeemed, $2o3.OO0 Ly tie financial agent,
and $4,000 by tho trcasurcr.
Whether the entire amount realized from,