The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1873-10-29
The Governors Message.

The Message of Governor Moses
to the Legislature at its present
extra session, is a very able and
elaborate document, and is devoted
entirely to- the discussion of the
financial condition Of the State.
lie gives a detailed statement Of
the Public Debt, and of its past
history, and proposes plan for its
adjustment. The whole funded
debt he estimates at S15,027, ,503.35,
the floating debt at $500, ,397.75,
and the aggregate both funded and
floating at S2O,333,9o1.10. The
amount of conversion bonds issued
under the Act Of 1869 for the COIL
version Of State securities, he cs-
Inmates at s7,576,jO0, of which
Sl,G11,500, were issued merely to
change the form Of outstanding
indebtedness, and Of those some
$4,000 have been cancelled, "and
there arc now outstanding $685.
1000 Of conversion bonds, which.
represent an actual increase Of the
public debt. These are the alleged
illegal and fraudulent bonds, Of
which so much has been said, and
to which the Message refers as fol-
lows:
1T has been alleged that these
bonds were hypothecated for secu-
Iity of loans, by order Of the Fl
nancial Board, and the moneys
received therefrom used to cover
the deficit of revenue from taxation
or to "bridge the chasm' between
the receipts and appropriations, and
the State being unable to redeem
the bonds at the maturity Of the
loans, they were forfeited and sold,
and thus, by the amount represent
ed upon their face, increased the
public debt.
l will not venture to assert that
these allegations are entirely at
variance with the facts, because |
have been unable to get access to
the records of the Financial Board,
or to ascertain the exact time each
particular loan was negotiated, and
the amount thereof, as also the
amount of bonds forfeited for each
loan the State failed to discharge at
maturity. But this I assert with
certainty, that more than one
seventh of said amount is account
ed for in another way.
1t appears, that Oh the 9TH of
December, 1870, the then treasurer
of the State, in a letter addressed
to the financial agent, "a copy of
which is of record in the treasury0
stated that the State owed a debt of
$303,343.S9 due in 1870, known as
Fire Loan Stock, and also a debt OF
$3.50, 900, due in 1871, known as
State Capital Bonds, which debts
the financial board had instructed
him, the treasurer, to discharge,
with authority to make whatever
arrangements might be necessary
therefor. He accordingly placed
in said agents possession bonds for
the conversion Of State securities,
amounting to 100000, directing
him to make such useof said bonds
as he might deem necessary to
redeem said obligations.
The sequel OF this arrangement
shows that $4,000 of State capi-
tai bonds have been redeemed,
100000 by the financial agent, and
5000 by tile treasurer.
Whether the entire amount real
lied from the sale or hypothecation
of the said sS00,000 of conversion
bonds was barely sufficient to re-
deem the $4,000 of State capital
bonds, (purclased at that time at
price below so per cent, does not
appear. In the absence of evi-
dence to the contrary, and mas
much as no fire loan stock was
redeemed, it may safely be assumed
that such was actually the case.
According to Governor Moses,
We must pay the interest on the
debt or rerudiate if. Every con-
sideration of public policy should
forbid the adoption Of the latter
alternative, and on the other hand
to levy tax sufficient to pay the
floating debt, and the interest now
due and accruing would paral yze
the business interests of the coun-
try. lie proposes a plan OF adjust
ment by scaling the debt, and ma
king it to the interest Of the debt
or to accept the new security by
around it new guarantees
fer its collection. TO adopt the
language Of the Charleston Neacs:
"The ca lculation of Governor
Moses is that $4,000 of old bonds
worth fifteen per cent, or S4o0, can
be exchanged for $4,000 in new
bonds, worth fo'ty per cent, or
$500. which woull be 60 llearrain"