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

accruinY from August. sG8, 10 July, 1869. a
period OF eleven months, is clargcablo to the
post.reconatructon period or, in otler
words. 1924 of tho entire debt Of l,45O. 600;
amounting to 1884, 4lG 66a. IL churgcnhle to
the former period aud 1924, amounting to
| 1854 ,583.33t, is cllargcable to the lu,tcr ne.
| riotl.
1t may be proper 10 stnte in connection
with this subject. that tho Legislature. ut it's
| sessiOu OF f86S-69, appropriated $500, 600
| for The payment of the Interest due :;;T this
same period, so that ti,ero were remily two
sources of income to mcot this indebtedness
| In comparing lilo amount uf moneys received
from taxes with tho inonoys expended ON ac-
| count Of appropriations for this same period
it appears that tho expenditures, exclusive of
| tho payments for interest. exceeded tic re-
celpta from taxes. and therefore, it is assumed
that tho interest was paid from IT." remaining
| source OF revenue. viz the proceeds from tho
| sale Of those bonds
Undor tho act oil September Is, 1868, for
funding tie bilo Of tho Bank Of tho State the
American Bank Note Cnmpnny printed S |, ,5OO,-
ooo. Of tliis sum 3 ,259,00 wore issued, tho
Others were cancelled unused. Of tile amount
issued $G9400 were converted and 81, 1880 GOO
are outstanding in their original form. Tho
bonds prepared under the act Of February IT.
1863, FOR tho relief vi the treasury, amounted
to 81, 100000, Of which Sl0l, 900 were never
issued, and are cancelled aud flied in the
treasury; $4,000 Of the remainder have been
exchanged for conversion bonds and $3.50 600
arc now outstanding in their original form.
The stock originally issued under tho act OF
March 23, 1869, for the conversion OF State
securities, amounted to $7!5,?cG; OF which
S7ll,7O have boen converted into conver-
| sion bonds 5000 represent stock transferred
and $4,000 are outstanding in tho original
FORM
Tho Issue Of tho conversion stock is cx-
pialnedk Ill this way: when application wus
| inaAe TO the treasurer by person. holding IL
| x1sd Of the State to hayo tho came ex-
| changed for conversion bond, tho treas,l-
ror took UP such bond and issued III lien
| piece OF conversion stock Of equal amount,
| which stock was tlon cancelled nnd exchanged
| for conversion bond. This roundabout pro-
cess was prescribed by tho net for the conver.
sion OF State securities. Several persons pre-
| ferred to hold the conversion stock, md there
fore, did not carry the operation further.
which accounts for the outstanding l,nlance of
$4,000 before referred TO. or course this
amount does not represent an increase of the
public debt, but merely represents i'll another
form some 'pre.existing obligation.
Tic entire amount Of bonds issued under
| the Raid net tnr the conversion of Stute secur.
| ities MAS $7.676.600 or ths suu, xl.8ll.-
ooO were Issued merely to change the form OF
some pre-exist!hg outstanding Indebtedness.
| IN the fOrql OF bunda aud atuckg previously
authorized and hence DO not represent un
imcrease Of the public debt.
Tho S3+, 600 OF conversion bonds converted
aud cancelled are thus explained.
A person holding S 900 Of bonds OF differ.
eni classics (suy funding interest, etc., $500 of
the denomination Of 500; funding bills Bunk
OF the State, $500 Of the denomination of $50.
and conversion. 5000 Of the denomination Of
1
| and receive IN exchange piece of cunyer.
sion stock Of tho denomination Of 81 900.
| and in exchange for said stock conversion
bond Of equal amount. Thus, $4,000 orl
conversion bonds found their way buck into
tile treasury, and bonds O! the anme class.
but larger denomination, found their way into
tho market without increasing tho volume of
debt
repout. therefore, that there arc n0w out
standing 900 Of conversion bonds is
sued III strict accordance with law, which nre
merely the representatives, Of bonds and
| stocks of various clnescs, and. III the aggrc-
gate, OF equal amount Cancelled and filed in
tLa treasury. This statement is based upon
my personal examination OF said cancelled
bonds and stocks, and may be relied upon as
accurate in every particular.
There are also outataudng conversion bonds
10 tho amount OF $5,9G5,O00, which repre-
II has boen alleged that these bonds were
hypotheceled for security of loans, by order
OF tho Financial Board, and the moneys re.
| coived therefrom used to cover the deficit OF
revenue from taxation, or to bridge the
eliasm between tho receipts and appropri.
| atlons, and the State being unable to redeem |
the bonds at the maturity of tho loans, they
were forfeited and sold, and thus. by the |
amount represented upon their face, increased |
tho public debt.
will not venture to nssert that these alle. |
atlons arc entirely at variance with the fncts, |
because have been unable to get ncccss to
Tho records Of the Financial Board, or to usccr. |
tam tho exact timo cncli particular loan wns |
negotiated, aud the amount thereof, AS also |
the amount of bonds forfeited for ench loan
the State failed to discharge ut maturity. But
this | assert with certainty, that more than
one.seventl of said amount is accounted for |
III another way.
1t appears. that on the Tth Of December.
1870, the then treasurer OF tho State, in |
letter addressed 10 tho financial agent. IN
copy OF which is Of record i'm the treasury ! |
stated That the Stlte owed debt of $3U3.. |
343s9, due in 1870, known as Firo LOAF,
Stock. and also debt Of $3.50, 900, duo in 1871 |
known rs State Capital Bonds, which debts
tie financial board had instructed him. the
treasurer, to discharge. with authority to |
mako whstever arrangements might be ncces- |
sary therefor. llo accordingly placed in said
agents possession bonds for tho conversion |
OF State securities, amounting to $500, 600, |
directing him to mike such use of said bonds
"s he might deem necessary 10 redeem suid
obligations.
Tie sequel Of this arrangement shows that
$2l2,0O0 Of State capital bonds lnve bcen !
redoemod $203,O00 by tile ilancnl agont
aud $4,000 by the treasurer.
Whether the entire amount realized from
the sale or lIypo,hecation OF the sui,l $500